Biofuels in the US and Europe are playing a critical role in the current tightly supplied oil markets, the International Energy Agency Executive Director Nobuo Tanaka said on 8 July downplaying criticism of the industry and doubts over its sustainability. Biofuels in the US and Europe, and some in Asia, were "unfortunately not so competitive" and still in need of huge subsidies, Tanaka acknowledged. "So we need clarification on this sustainability issue," he added. Nonetheless, biofuels were a component of the current energy supply mix in the US and Europe, and had replaced about 1 million b/d equivalent of crude consumption since 2005, the IEA chief said. "In the current very tight market, it's a very substantial amount. So without biofuels, [oil] price could be much higher," he said.
http://www.platts.com/Oil/News/8865717.xml