Global oilseed production is projected at a record 422.1 million mt in 2009, which is up 25.9 million from the previous year due to increasing demand for bio-fuel production, Biofuels International reports.
Demand in China, India, and the EU is considered to be the cause of a projected increase of 3.8% in 2009/10.
In the US, the oilseed production for 2009/10 is projected to reach 94.5 million mt, up 6% from its 2008/09 levels with soybean production accounting for most of the increase. BP PLC Chief Executive said Wednesday that in the long term, the world economy is poised to recover, restoring long term growth in energy demand seen in recent years, which "cannot be reversed”, Dow Jones reports.
But current volatility in oil prices, however, could dampen future oil supplies, constituting "one of the main challenges" faced by the oil industry.
BP's investment patterns, however, remain "very much unchanged”. Short-term recovery will take some time, especially in the US.
BP's industrial customers "are still seeing falling demand" which is expected to bottom out in Q3.
Latin America, whose share of global oil production has declined in recent decades, would need to address fiscal and political risks to investment in order to reverse that trend, adding that Brazil, which has welcomed foreign investment to exploit its deepwater offshore reserves, is "a good example" of a transparent energy regime.
Latin America, led by Brazil's efforts in sugarcane ethanol, is "well positioned" on alternative fuels, while biofuels could make up 20% of gasoline in Europe and the US,he said. (14 May 2009)