Oil's Perfect Storm
From: Riggs Eckelberry
Los Angeles, February 21, 2011
Happy President’s Day, and THANK YOU for the tremendous interest in our Mexico project!
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.
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.”
Riggs and team
President & CEO
OriginOil, Inc. (OOIL)
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