From: Riggs Eckelberry
Los Angeles, February 28, 2011
The events in the middle east are riveting the attention of the world right now, but the real problem is unstoppable growth in global demand.
As I discussed Friday on MoneyTV (watch the show here), last year China added a million barrels per day to global demand, which is set to increase by yet another two million barrels per day this year. (Energy & Capital)
So, oil prices will keep rising. And yes, higher prices will do wonders for biofuels — and bio-based chemicals even more so. After all, tens of thousands of important chemical products depend on the price of oil.
More "Dirty" Fuels
That's why we'll see extensive algae farming close to major fossil fuel producers. That will make the problem a little more tolerable — and it will build our industry.
What About Electric Cars?
I'm often asked what electric cars will do for biofuels. Last week, on a panel with a Tesla Motors exec, I got that again.
The answer is, the more electric cars, the better!
It's simple: electric cars will concentrate CO2 emissions at the power plants. And CO2 at the power plant is much easier to absorb than what cars and trucks are spewing right now.
It won't make much sense to build all these electric cars without doing something about all the CO2 coming out of those power plants. That's where algae comes in: a cheap, fast and effective way to absorb the CO2.
Have a great week.
Riggs and team
President & CEO
OriginOil, Inc. (OOIL)