Biofuel Oil Production Helps Stem Drastic Jump In Oil Cost By 15 Percent

London, England (AHN) - Soaring food prices had led to a global debate on the wisdom of using food crops as feedstock for biofuel production. From being hailed as a green source of energy, ethanol production has been blamed for causing the price of wheat, corn, rice and other basic staples to rise beyond the reach of ordinary people.

However, investment banker Merrill Lynch has a contrary opinion. Francisco Blanch, analyst of Merrill Lynch, said, quoted by the Wall Street Journal, world oil prices would be 15 percent higher were it not for the expanded production of biofuels.

For the U.S., given its number of vehicles, without the ethanol mix, gasoline prices would have gone up by 25 percent and diesel by 16 percent, Blanch said.

The debates notwithstanding, the outlook for the ethanol industry is projected to be bright for the next five years. According to the International Energy Agency estimates, at least half of the new fuel entering the market in 2008 outside OPEC's production would be sourced from biofuels.

The global ethanol industry will be the focus of the 3-day World Ethanol 2008 Conference, which includes a leaders' summit, streamed sessions and other important discussions to be led by senior executing from major biofuel companies. It will be held Nov. 3-6 in Paris, France.