• 4 mintues Texas forced to have rolling brown outs. Not from downed power line , but because the wind energy turbines are frozen.
  • 7 minutes Forecasts for oil stocks.
  • 9 minutes Biden's $2 trillion Plan for Insfrastructure and Jobs
  • 13 minutes European gas market to 2040 according to Platts Analitics
  • 4 hours Simple question: What is the expected impact in electricity Demand when EV deployment exceeds 10%
  • 19 hours Putin blocks Ukraine access to Black Sea after Joe blinks
  • 12 hours America's pandemic dead deserve accountability after Birx disclosure
  • 2 days Today Biden calls for Summit with Putin. Will Joe apologize to Putin for calling him a "Killer" ?
  • 2 days U.S. Presidential Elections Status - Electoral Votes
  • 1 hour Fukushima
  • 2 days Biden about to face first real test. Russia building up military on Ukraine border.
  • 23 hours So. Who's for Universal Basic Income?

Breaking News:

U.S. Cancels All Q2 Oil, Gas Lease Sales

Ross McCracken

Ross McCracken

Ross is an energy analyst, writer and consultant who was previously the Managing Editor of Platts Energy Economist

More Info

The Biofuel Directive Giving EU Oil Demand A Boost

ILUC is a little-known acronym that strikes fear into the heart of biofuels producers.

It stands for Indirect Land Use Change and describes a change in land use, for example in Brazil as a result of a change in land use somewhere else. In other words, if farmer ‘A’ moves into soybean for biodiesel production, farmer ‘B’ on a distant continent might cut down some virgin forest to take advantage of the slack left in the soybean-for-food market. Farmer A is held responsible, albeit indirectly.

Does that sound harsh? It is. It’s near impossible to draw direct lines of causation between land use change in Europe and those on a different continent, but ILUC is nonetheless a logical extension from real situations in which measures to expand biofuel use, such as blending mandates, have resulted in environmentally bad outcomes, for example deforestation in Indonesia for palm oil production.

More importantly, the EU has gone to war on the issue, targeting food and feed crops used to produce biofuels, which it considers at high risk of ILUC. However, the new legislation -- designed to decarbonise transport - looks more likely to sustain conventional oil demand than reduce it.

RED II, the EU’s new Renewable Energy Directive, will phase out biofuels made from high-risk ILUC food and feed crops entirely by December 2030. Which biomass feedstocks are considered high risk and which are low risk will not be formalised until a report…




Oilprice - The No. 1 Source for Oil & Energy News