Global Insight study predicts dramatic rise in biofuel - but at what cost?

July 30, 2007 In his 2006 State of the Union address, George W Bush said that “America is addicted to oil.” By this, he meant that not only is the US a massive consumer of fossil fuel, but that this consumption leaves them grossly dependant and vulnerable to exploitation. Bush’s remark came at a time when the US had just surpassed Brazil in the production of ethanol fuel, often touted as the most likely contender to replace petroleum, or at least diminish the demand for it to manageable levels. The world market is already feeling the effect of increased interest in ethanol, which begs the question of whether biofuels can overtake petroleum as a power source – and if so, whether it will be the viable alternative its proponents claim, or simply a case of swapping one addiction for another. Global Insight, Inc., the world's leading company for economic and financial analysis and forecasting, has released a detailed projection for its possible future consequences.

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