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Oil's Perfect Storm

From: Riggs Eckelberry
Los Angeles, February 21, 2011

From: Riggs Eckelberry
Los Angeles, February 21, 2011

Happy President’s Day, and THANK YOU for the tremendous interest in our Mexico project!

Mexico’s Momentum

I discussed the project in Friday’s MoneyTV interview — take a look. The country’s target for meeting 1% of its domestic jet fuel demand with renewables by 2015 is breathtaking, a true ‘Manhattan Project’ in the making.

Our Mexican partner’s program will start with an ‘alpha’ site at a research institute in Ensenada. For us, this is a key site to test and further validate our technologies. It is geographically close, and the program has tremendous momentum — and momentum is everything.

Oil’s Perfect Storm

Mexico is right to go all-out on renewable fuels. Why? Because oil is facing a ‘perfect storm’ of dwindling reserves worldwide, and political unrest in the Middle East.

Already alarm bells are ringing on oil prices. The volatility of New York crude, at an all-time low in December, has more than doubled. Officials from more than 90 nations including Saudi Arabian Oil Minister Ali al-Naimi and U.S. Deputy Energy Secretary Daniel Poneman are gathering in Riyadh today to seek ways of curbing fluctuations. (more)

The heady air of freedom in the Middle East may be long overdue, but markets do not love uncertainty.

The Outlook

What does all this mean for renewables, algae and OriginOil?

Simply put, the higher oil goes, the more competition it creates for itself. The oil companies realize this and will invest their rising profits in renewables — and they have already voted for ALGAE.

Remember what ExxonMobil said when it committed $600 million to algae? “It’s fair to say that we looked at all the biofuels options… Algae ended up on top.”

Stay tuned.

Riggs and team

Riggs Eckelberry
President & CEO
OriginOil, Inc. (OOIL)

Remember to link with me on Twitter (riggseck), and OriginOil too

Safe Harbor Statement:

Matters discussed in this update contain forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. When used in this update, the words "anticipate," "believe," "estimate," "may," "intend," "expect" and similar expressions identify such forward-looking statements. Actual results, performance or achievements could differ materially from those contemplated, expressed or implied by the forward-looking statements contained herein, and while expected, there is no guarantee that we will attain the aforementioned anticipated developmental milestones. These forward-looking statements are based largely on the expectations of the Company and are subject to a number of risks and uncertainties. These include, but are not limited to, risks and uncertainties associated with: the impact of economic, competitive and other factors affecting the Company and its operations, markets, product, and distributor performance, the impact on the national and local economies resulting from terrorist actions, and U.S. actions subsequently; and other factors detailed in reports filed by the Company.

 
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