Wednesday, April 27, 2011

Shell Oil President Calls For Biofuel Incentives



<<yet another cry for biofuel subsidies while they continue oil and gas exploration>>

WASHINGTON -(Dow Jones)- Shell Oil Co. President Marvin Odum gave a bullish outlook for biofuels Tuesday, [ 26 April 2011 ] saying that during the next 20 years, biofuels will likely be "the most practical solution" for reducing carbon emissions from transportation and calling for government incentives.

"The international market for biofuels is growing," said Odum, head of the U.S. subsidiary of Royal Dutch Shell PLC(RDSA, RDSA.LN). "With the right policies in place, it could grow even faster."

Odum was speaking at a conference convened by the U.S. Energy Information Administration. While he also used his comments to emphasize the importance of offshore oil and onshore natural gas production, Odum said Shell is working toward a $12 billion joint venture with Brazil's largest ethanol producer for the production and supply of ethanol.

"This joint venture will be one of the largest ever," Odum said. He added it would be "just the starting point. We have considerable aspirations for growth."

Odum also told the Washington audience that changes to government incentives are needed for biofuels.

"A lot of good work has already been done in this area, whether you are talking about the U.S. or Europe or other places," he said. "There is a temptation, I think, to believe that that's enough. But that assumption would be wrong and there is much more that can be done."

Specifically, Odum said the government should support investment in advanced biofuels, ensure "regulatory certainty that encourages long-term investment," and lower or remove import tariffs "creating a level playing field" for biofuels that emit less carbon dioxide than traditional fuels when burned.

But he added, "from a practical and commercial standpoint, advanced biofuels will only emerge in material quantities in 2020 and beyond."

Odum was less bullish on other forms of renewable energy. On wind power, he said, "we don't see it growing very rapidly."

By Ryan Tracy, Of DOW JONES NEWSWIRES

http://www.nasdaq.com/aspx/stock-market-news-story.aspx?storyid=201104261213dowjonesdjonline000208&title=shell-oil-president-odum-calls-for-biofuel-incentives

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Biofuels are a wide range of fuels which are in some way derived from biomass.

Your idea?