Undaunted by having been a scapegoat for skyrocketing gasoline prices in U.S. this month, the ethanol industry is producing record rates of the mainly corn based fuel additive and setting its sights on new markets. Red Cavaney, president of oil industry group the American Petroleum Institute, blamed this summer's record pump price spike largely on the cost of having to blend ethanol into new green gasoline grades to increase their oxygen content.