MTBE is manufactured via the chemical reaction of methanol and isobutylene . Methanol is derived from natural gas, and isobutylene is derived from butane obtained from crude oil or natural gas , thus MTBE is derived from fossil fuels. In the United States, it was produced in very large quantities (more than 200,000 barrels (32,000 m 3 ) per day in 1999) during its use as a fuel additive.

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