Biofuels No Threat for the Future

The rising biofuel industry will not threaten offshore marine and contract jobs according to a leading industry member who claims the oil and gas industry is 'busier than ever'.

This month it emerged that BP had entered talks to set up a biofuel business in Indonesia as part of the country's alternative energy program which has already seen $17bn in foreign and domestic investment.

In the same week India called on world governments at the G8 summit to finance the development of clean energy technologies based on the resources available in the developing world.

Then the Organisation of Petroleum Exporting Companies warned that if the US and Europe continue to push biofuels as an alternative, oil prices will go 'through the roof' – an alarming prospect for oil and gas contractors.

But chief executive of the Marine Contractors Association, Hugh Willliams, says he does not believe the biofuel movement will have an immediate impact on the oil and gas technology industry.

"The offshore oil and gas industry is busier than ever with forecast work remaining at very high levels for some time to come," Williams says. "I don't see bio (fuels) as a threat to marine contractors. The IMCA members are thus reasonably confident about their future."

Williams points out the most significant change to oil and gas industry jobs is likely to be caused by the rise of nuclear energy, rather than bio technology, but this will still take a long time to change the current nature of the market.

He says: "If the world cannot find enough, clean, carbon-based power generation for the power stations then it will turn to nuclear power stations, as has been done in France. Were this to happen on a large scale it could change the demand for oil and gas and hence the work prospects for marine contractors. However, even nuclear does not look like displacing the small-scale internal combustion engine yet."

BP is keen to point out plans to developing biofuels are in their infancy with no projects in place as yet.

By Ozge Ibrahim