The invention relates to methods for producing lipids and in particular methods for producing glycerolipids suitable for use in generating biofuels. The glycerolipids are produced through the modification of a cell so as to increase phosphatidic acid via the inhibition of the phosphatidylethanolamine N-methyltransferase (PEMT) pathway. The invention further relates to genetically modified plants and microorganisms in which the production of glycerolipids/oil is increased.