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Fossil energies

The substitution of marginal oil with biofuels

Our report analyzes the substitution of marginal oil with biofuels. For that, we evaluate the effects that influence the substitution process in the short, mid and long term. We identify OPEC, resource nationalism, and geopolitical issues as important influence factors and arrive at the conclusion that in the short term biofuels will replace mainly OPEC oil but not the most expensive petroleum. In the medium and long term biofuels will replace the most expensive petroleum because OPEC production cuts are only possible on a temporary basis and in restricted quantities.

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