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It's very popular in South Carolina. Here, we use peanut oil for deep frying turkey (outdoors), a couple times a year, and deep frying catfish. Sometimes the pure peanut oil is too expensive, so we use the blended oils.
There are other opinions about peanut oil:
"Why Peanut Oil Is Great for Deep-Frying
Posted by Lee Zalben, May 26, 2011
. . . Peanut oil has a high smoke point and neutral taste which makes it perfect for frying foods. It's also low in saturated fat and high in polyunsaturated and monounsaturated fats, making it healthier than frying with shortening or lard.
Cooking with peanut oil isn't an exclusively American thing. Peanut oil has been used throughout Asia for years. In fact, most Chinese restaurants in the U.S. use peanut oil exclusively in the kitchen.
One interesting thing about refined peanut oil, the kind used for most cooking and frying, is that it is made from raw (not roasted) peanuts and is processed under high heat, which eliminates all of the protein. This makes refined peanut oil safe for people with peanut allergies. (Note: cold pressed, or roasted aromatic peanut oil does contain peanut proteins and is not suitable for people with peanut allergies. These products will always be labeled as such.)
And while it's a little early to start thinking about Thanksgiving, peanut oil is every turkey fryer's best friend!"
Why Peanut Oil Is Great for Deep-Frying | Serious Eats
Yup, CFA uses peanut oil for frying, that's only one restaurant that I had seen with peanut oil, however there are local southern BBQ used peanut oil for frying too.