Tuesday, July 8, 2008

OPEC Blames Ethanol for Higher Oil Prices

OPEC oil price ethanol biofuelWho's to blame for higher oil costs? Why it's that pesky competitor, ethanol. At least according to Chakib Khelil -- the Algerian energy minister and current president of the Organization of Petroleum Exporting Countries.

MarketWatch and others are reporting that the OPEC head said "the intrusion of bioethanol on the market" is responsible for at least 40% of the increased price of oil.

Apparently, OPEC doesn't like the competition and the increased supply of fuel that ethanol has brought to the market.

So OPEC now joins Big Oil and Big Food playing the blame game: Ethanol is bad; dependence upon foreign oil is good.

Of course, ethanol has increased fuel supplies driving down the cost of fuel for everyone. But in the oil market rigged by OPEC who can control the supply at any time, it's no surprise that they blame others for their high priced oil cartel.

Source: MarketWatch

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1 comment:

Unknown said...

The biofuel industry is fighting back against OPEC. Last week four global biofuels organizations took out an ad in the Financial Times addressing OPEC's "misleading and unsubstantiated claims about the role of ethanol in world oil markets." If you didn't catch it in the newspaper, you can view the ad on www.GoodFuels.org.