05 April 2012 17:06 [Source: ICIS news]
CORPUS CHRISTI, Texas (ICIS)--The Global Renewable Fuels Alliance (GRFA), a biofuels trade group, wants the G20 group of economic leaders to enact biofuels policies that favour biofuel production and use.
The Group of Twenty Finance Ministers and Central Bank Governors (G20) is a group of finance ministers and central bank governors from 20 major economies.
International Energy Agency (IEA) chief economist Fatih Birol issued a report this week, which said that the global economy could be hit with another recession triggered by escalating crude oil prices.
“If oil averages $120/bbl in 2012, the global oil import burden, which is defined as the total spending by net importing countries on net imports of oil, is set to reach a record high of over 5.5bn/day, Birol said in the report.
High oil prices have preceded every global recession since the early 1970’s with the most recent economic collapse in 2008 being preceded by record-breaking crude price at $147.50/bbl, according to the report.
"The current price levels are on average higher than the awful year of 2008, and as such have the capacity to tip the global economy back into recession," Birol said.
According to the GRFA, world biofuels production is contributing over 1m bbl/year of oil equivalent to global energy supplies and expects global production to grow by about 3% this year without any significant policy changes.
|ICIS news FREE TRIAL|
|Get access to breaking chemical news as it happens.|
|ICIS Global Petrochemical Index (IPEX)|
Asian Chemical Connections