OPEC Predicts 1.4% Increase in Fossil Fuel Production

A recent report from the Organization of the Petroleum Exporting Countries (OPEC) for 2011 came heavily on biomass programs all over the world and predicted a growing demand for fossil fuel products.

The organization criticized the incentive programs aimed at promoting the companies manufacturing biofuel from biomass and cutting down the use of fossil fuel. The report cites the negative effects of such incentive programs over the environment and the heavy financial burden placed on the public budget. The statistics produced by the report indicates that while the tax credits extended to the biofuel producing industries currently costs around $500 million to the tax payer every year, the grants on fossil oil all over the world exceeded over $312 billion last year. The report expressed worries about the continued deforestation in countries such as Brazil, and issues related to land use and ecological impact in countries located in Asia and South America. It faults the Organisation for Economic Co-operation and Development (OECD) introduced biofuel programs. The report indicates that Africa as a continent will be adversely struck by the present biofuel policy.

The OPEC report figures that the demand for oil will go up by 1.4% by 2011 necessitating an increase from the current production of 28.8 million barrels per day to 29.2 million barrels and state that China will use more oil than the current year.