OPEC could curtail oil investment if biofuel boom materialises: |
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Wed, 20 Jun 2007 14:07
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VIENNA (Thomson Financial) - OPEC has warned it could curtail investment in oil production because of a forecast long-term boom for biofuel but cautioned that an oil shortage could emerge if biofuels ran into problems.'We are not worried about introducing another source of energy, especially if it helps fight climate change,' Abdullah al-Badri, secretary general of the Orgaisation of Petroleum Exporting Countries, told AFP in an interview.But he added that 'some data show a very high quantity of biofuels in the long run, by 2030,' which could mean that 'our demand will be lower than we are forecasting.'The European Union and the United States hope to reduce their oil consumption by 20 percent beteween now and 2030 through increased reliance on alternative energy.'We are investing at this time 130 bln usd (97 bln eur) on 140 projects by 2012 to increase production by 6 mln barrels a day,' Badri said, adding that OPEC at present pumps about 30 million barrels a day.The 12-member cartel also plans to invest 230 bln to 500 bln usd between 2012 and 2020 with a goal of boosting output by nine million barrels a day.'If we receive information that oil demand will be reduced, it is our right to reinvest our investment,' he argued.'We can spend money in education and housing.'But he warned that if in 10 years, the expected surge in biofuel reliance does not materialise, 'there will be a shortage.'Badri suggested that production of biofuels could be hampered by increased competition for land and water, pitting those who want to use such resources for food production against those want to apply them to making biofuels.tf.TFN-Europe_newsdesk@thomson.comjsaCOPYRIGHTCopyright AFX News Limited 2007. All rights reserved.The copying, republication or redistribution of AFX News Content, including by framing or similar means, is expressly prohibited without the prior written consent of AFX News.
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OPEC members need to attract more foreign investment - Badri 