Biofuels have become an essential component of the world’s motor fuel supply, according to a report released today by the International Energy Agency (IEA).
IEA estimates that biofuels will account for nearly two-thirds of the non-OPEC oil supply growth this year, or more than 1.5 million gallons per day.
“While it seems unlikely that biofuel targets will be reversed in the near future, it is sobering to realize the amount of oil that would be needed to replace them,” the IEA report said.
According to the report, replacing the global supply of ethanol and biodiesel-based biofuels added to the U.S. and European markets since 2005 would require an additional 1 million barrels of crude oil to be processed per day.
Renewable Fuels Association President Bob Dinneen says the report points out the importance of ethanol production. “In the face of record oil, gasoline and diesel prices, it might seem pennywise but would be pound foolish to walk away from our commitment to biofuels and a diversified energy future,” he said.