02 January 2008 22:35 [Source: ICIS news]
HOUSTON (ICIS news)--Surging crude oil prices could help the ethanol industry in the short term but it also could trigger a global economic recession that would crush biofuels consumption, a Brazilian ethanol trader said on Wednesday.
“Crude oil at $90-100/bbl is already too expensive,” the trader said in Portuguese. “I do not know how much longer the global economy will be able to grow with crude at that level.”
The trader's comments followed a flutter in oil price futures that briefly hit the $100/bbl mark on Wednesday for the first time.
“The surge in crude oil could be a positive factor for the ethanol industry, but it could also trigger an economic recession worldwide,” the trader said.
The US Renewable Fuels Association (RFA) used the occasion to tout the benefits of ethanol.
Oil price volatility “is the exact problem Congress addressed by passing the Energy Independence and Security Act of 2007 and investing heavily in new technologies like renewable fuels,” the RFA stated.
The Energy Independence and Security Act of 2007 created a major new mandate for ?xml:namespace>
Congress decreed in the energy bill’s renewable fuels standard (RFS) that by 2022 the
That is a four-fold increase over the previous biofuels mandate, which was to require 7.5bn gal/year of ethanol output and fuel blending by 2012. By the close of 2007,
“While developing new oil reserves is proving more difficult and expensive, the American ethanol industry is rapidly developing new cost-effective technologies that will greatly reduce our nation’s reliance on imported oil from unstable regions often hostile to the
Additional reporting by Brian Ford
For the latest chemical news, data and analysis that directly impacts your business sign up for a free trial to ICIS news - the breaking online news service for the global chemical industry.
Get the facts and analysis behind the headlines from our market leading weekly magazine: sign up to a free trial to ICIS Chemical Business.
|ICIS news FREE TRIAL|
|Get access to breaking chemical news as it happens.|
|ICIS Global Petrochemical Index (IPEX)|
|ICIS Global Petrochemical Index (IPEX). Download the free tabular data and a chart of the historical index|