From: Riggs Eckelberry
Los Angeles, January 7, 2011
Just out, this week's MoneyTV interview, where we discuss what's in store for 2011.
We see two big trends: development of bio-based chemicals from algae, and the rise of the engineering service firms to build and operate those big algae systems.
Meanwhile, algae nutritionals continue to build up steam, especially after that big billion-dollar deal for Martek.
But what REALLY drives algae, petroleum's competitor? Why, the price of petroleum itself.
Former president of Shell Oil John Hofmeister believes Americans could be paying $5 for a gallon a gas by 2012.
And for a while in December, we saw oil prices rise and rise before the latest selloff. Traders are "looking for increased demand, particularly from China" - and the recovering US economy will add pressure.
I don't think we're in for an oil shock just yet. But I do think we are being "boiled slowly". After all, $3.50 a gallon for regular gas isn't unusual in LA.
I'll come back to this topic in future weeks, because it will have an enormous leverage effect on investment in our industry.
Meanwhile, I trust you're off to a great start for the year. We've got lots cooking - stay tuned!
Riggs and team
President & CEO
OriginOil, Inc. (OOIL)