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Biofuels Could Cause Oil Prices to Go Through the Roof?

Filed in archive Biofuel by Reden Rodriguez on June 06, 2007

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Yesterday I was in a meeting with key persons who are in the know of the biofuel situation worldwide and one of the things that surpised me, during that brief luncheon was one statement. Someone said that the price of oil may increase due to biofuel use. I was floored! It is so counter-intuitive. All along I have been thinking that the use of biofuels would supplant fossil fuel use. To the consumer, the averaged cost of his fuel would decrease due to savings on importation or advantages of domestic production on biofuels, thus becoming a more favorable transport energy source.

So I went to my online resources and lo and behold, there is an article that says the same thing. Here is an article from Turkishpress.Com on the same subject. The article says that if oil producers see any instability on demand for oil, they may rethink their long-term investment strategy. Less investments, less output. Less output, higher prices. Higher prices, god-knows-what.

Is it me or do I sense sabotage?


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Permalink: Biofuels Could Cause Oil Prices to Go Through the Roof?
Tags: Oil  Investment  OPEC  Renewable  Energy  Prices  Increasing  Biofuels  2007  june+2007 

Trackback: http://www.creative-weblogging.com/cgi-bin/mt-tb.pl/74276



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The BioWorld Biofuels Report 2007 - 18 June 2007

High Gasoline Prices: Paying to Play - 28 April 2008

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