Source: http://www.nytimes.com/gwire/2009/07/14/14greenwire-exxon-sinks-600m-into-algae-based-biofuels-in-33562.html
YouTube Commercial: http://www.youtube.com/watch?v=-mAtvRA4MBA
The article I have referenced is a bit dated (printed on July 14th, 2009), but I feel that the topic is relevant to our recent class discussions and because I saw the commercial above while watching T.V. the other day. One of the main concerns with algae is it's viability, and the fact that Exxon has invested over $600 million (plus "billions of dollars more to scale up the technology and bring it to commercial production"). By doing so "Exxon Mobil's investment validates the sector" and could lead to more investment into algae and other bio-fuels.
Up until algae, Exxon had been shunning alternative energies. Kert Davies, research director at Greenpeace, said, "They've never done anything like this before -- invested real money in the renewables sector." However, Exxon Mobile's significant investment calls for "guarded optimism" because there are many different factors at play. For instance, enate Energy and Natural Resources Chairman Jeff Bingaman said that a new law passed in 2007 to expand the national renewable fuels standard to reach 36 billion gallons by 2022 is "too restrictive and could freeze emerging technologies...such as algae-based biofuels."
Overall, I think that Exxon's significant investment in algae and biofuels is a good indicator that the entire fossil fuel industry recognizes that the future of oil is limited and that alternatives need to be sought-out before we run out of oil. However, will algae be the biofuel of choice, or will some other technology emerge to claim the mantle (and profit) of petroleum?
I think that this is a very interesting point that even companies selling fossil fuels are investing in alternative energy sources. I believe that the key to our country switching to a cleaner, renewable energy is in the hands of the oil companies. The US economy is so driven by oil that almost seems impossible that we could change our ways now. The only way a future with alternative energy is possible is through the endorsement by major oil companies like Exxon. It is weird to think that a company would endorse a product that would rival it's chief product, but if oil companies are really concerned with the future of their companies they have to think about what they are going to produce in the future after our natural resources are gone. So ironically enough it looks like the future of alternative fuels is in the hands of the oil companies.
ReplyDeleteI feel like this is a really important thing for major oil companies to be looking into. Maybe not algae specifically, but any form of alternative fuels. I think it's important for major oil companies to have clear, researched ideas for alternative fuels because the supply of oil is limited. Oil isn't renewable, and although it may not happen in the immediate future, eventually we will use it all. What would happen if this was ignored and the world ran out of oil? If there isn't an option other than oil, major sectors of the economy could collapse since much of it depends on transportation. I believe that major oil companies should be looking for alternatives to oil and attenpting to implement these alternatives before there is no more oil.
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