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Vienna - Opec has warned it could curtail investment in oil production because of a forecast long-term boom for biofuel but cautioned that an oil shortage could emerge if biofuels ran into problems.

 "We are not worried about introducing another source of energy, especially if it helps fight climate change," Abdullah al-Badri, secretary general of the Orgaisation of Petroleum Exporting Countries, told AFP in an interview.

 But he added that "some data show a very high quantity of biofuels in the long run, by 2030," which could mean that "our demand will be lower than we are forecasting."

 The European Union and the United States hope to reduce their oil consumption by 20 per cent beteween now and 2030 through increased reliance on alternative energy.

 "We are investing at this time 130 billion dollars (97 billion euros) on 140 projects by 2012 to increase production by six million barrels a day," Badri said, adding that Opec at present pumps about 30 million barrels a day.

 The 12-member cartel also plans to invest 230 billion to 500 billion dollars between 2012 and 2020 with a goal of boosting output by nine million barrels a day.

 "If we receive information that oil demand will be reduced, it is our right to reinvest our investment," he argued.

 "We can spend money in education and housing."

 But he warned that if in 10 years, the expected surge in biofuel reliance does not materialise, "there will be a shortage."

 Badri suggested that production of biofuels could be hampered by increased competition for land and water, pitting those who want to use such resources for food production against those want to apply them to making biofuels.

 He said that while Opec recognises the right of oil consuming countries to strive to reduce gasoline (petrol) consumption by 20 per cent, it would object to the use of increased fuel taxes to finance alternative energy output.

 That strategy, he insisted, "will not work."

 Badri said the oil market at present was well-supplied. But if the situation were to change and if prices rose substantially and remained at high levels for an appreciable period of time, Opec would act, possibly in the third or fourth quarter.

 Oil prices are now at their highest readings in more than nine months, hovering around 69 dollars a barrel in New York and 72 dollars in London, and are approaching historic highs -- reached last summer -- of close to 80 dollars a barrel.

 The International Energy Agency, which represents consuming countries, last week said US gasoline stocks were tight ahead of the peak summer driving season and said Opec should put more oil on the market this summer.

Agence France Presse