Rio, 13/7/2004 (Agência Brasil) - The executive secretary of the Ministry of Mines and Energy, Maria das Graças Foster, reports that in November the country will begin adding 2% biodiesel to diesel fuel, making it another source in Brazil's energy scheme.

Foster declared that the government is aware of the importance of petroleum and gas as an energy source, and in the provenience of taxes and income at the federal, state and municipal levels.. But she pointed out that the supply situation today is extremely worrisome, even though Brazil should be self-sufficient in petroleum by the year 2006.

"Compared to the last petroleum crisis, in 1990, today the situation is much more delicate. In 1990, the difference between demand and supply was running at around 10%. Today it hovers at 3%. What that means is that we have world demand at around 78 million barrels per day, while the available supply is only 80 million barrels per day. That is a very tight fit," she declared.

Today developed nations are working on diversifying 10% to 20% of their energy sources, says Foster, while Brazil already has a much more diversified scheme: 41% of Brazil's energy sources are renewable (14% is hydro and 27% is biomass, with sugarcane growing fast). Petroleum provides 43% and natural gas 7.6%.

Repórter:Nielmar de Oliveira
(Translator: Allen Bennett)