3E Intelligence

The 4th ministerial-level meeting of the EU-OPEC energy dialogue took place on 21 June in Vienna. The European Commission issued a press release on the outcome of the meeting.

The EU delegation tried to ease OPEC’s fears of the bloc’s biofuels policy. In March 2007, the EU Council set the member states a 10% minimum target on the use of biofuels in transport by 2020. This (and the biofuels priorities in the US) had the oil producing bloc up in arms at the beginning of this month, when it warned the West that efforts to kick off from oil addiction by promoting biofuels would lead to oil prices “going through the roof”.

During the meeting the EU also reiterated the International Energy Agency’s demand that OPEC should pump more crude, but the OPEC delegation remained on its position that no production increase will follow in the short term.

Both delegations also underlined “that, in the long run, on the basis of present information, there are enough conventional and non-conventional oil resources globally to meet the expected significant growth in demand“.

This last statement looks more and more like “wishful thinking” as there are increasing signs that Saudi Arabia’s oil reserves might be less than officially reported. On this issue of Middle East “political” reporting and the way BP and OECD institutions copy/paste their reports, see Euan Mearns’ excellent “Lies, damned lies and BP statistics” on the Oil Drum blog.

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