IEA Chief: Biofuels Not Threat To OPEC

Reacting to OPEC's recent statement on biofuels, Claude Mandil, the head of the International Energy Agency (IEA), told the Financial Times that, even in the worst-case scenario for the oil cartel, there would be a "dramatic" need for an increase in production by the Organisation of the Petroleum Exporting Countries. "OPEC has nothing to fear. Even in the most optimistic scenarios, the contribution from biofuels would be very small," Mr Mandil said.

The oil producers’ group has become increasingly concerned about efforts in the US and the European Union to cut oil imports. Recently, Abdalla el-Badri, secretary-general of the oil cartel warned that booming biofuels activities may threaten investments in oil production and cause petroleum prices to "go through the roof". Analysts have suspected some tactical move behind the statement. OPEC ministers were however genuinely appalled by the State of the Union address by President George W. Bush in January, in which he said he wanted to "dramatically reduce our dependence on foreign oil."

http://biopact.com/2007/06/iea-chief-biofuels-not-threat-to-opec.html