Investments in biofuels will push up oil prices, warns OPEC chief

06 June 2007

Abdallah El-Badri, the current OPEC secretary general has warned that investing in biofuels could push oil prices "through the roof" as OPEC members consider cutting investment in new oil production.

The members of the oil cartel currently control about 40 per cent of global oil production.

El-Badri said that while OPEC members had so far maintained their investment plans, but added, "If we are unable to see a security of demand... we may revisit investment in the long term."

El-Badri''s warning comes as leaders of the G8 industrialised nations gather for their summit in Germany, where among other issues thsy plan to address mounting environment concerns.

A viable environmental initiative would rest on the adoption of biofuels or blended fuels to help many of the G8 countries to cut their carbon emissions.

President Bush has set a target for the US to cut petrol consumption by 20 per cent in 10 years, partly through increased use of biofuels.