Ahead of the G8 summit in Germany, Abdalla El-Badri has stated his belief that a focus on biofuels will lead to oil-producing countries spending less on new oil production. This would reduce the volumes of oil on the market, and therefore increase the price of the commodity.
The G8 summit, in which the heads industrialized member states meet to discuss pressing issues, has climate change as a central issue on its agenda this year. The BBC reported that many nations are seeing the environmental fuel option as an integral part of their fight to cut carbon dioxide emissions and combat climate change.
The members of OPEC, which include Nigeria, Iraq and Saudi Arabia, account for 40% of the world’s oil production, but Mr El-Badri said that these regions could well consider reducing the money used for new oil production if biofuel investments continue to soar.
The BBC cited Mr El-Badri as saying: If we are unable to see a security of demand…we may revisit investment in the long term.
According to the BBC, President Bush has recently announced that the US will reduce its petrol consumption by 20% in 10 years, in order to reduce emissions; a strategy that will be achieved, in part, through the use of biofuels.
