The Best Peak Oil Investments, Part I: Biofuels
by Tom Konrad (RenewableEnergyWorld.com) …
The most obvious strategy for dealing with peak oil is substitution. If we can find another form of energy in place of oil, then our economy can grow without more painful adjustments. These strategies are among the most popular, because they hold out the hope that we’ll be able to transition with a minimum of pain. That is wishful thinking. There will be a market for petroleum substitutes, but those substitutes are likely to be more expensive and supply-limited than oil currently is. We will have to adapt in other ways as well as using substitutes.
…Although we are an extremely wasteful society, the amount of waste that can usefully be converted into oil substitutes is small relative to the amount of oil we currently use. That means that as conversion technologies are developed, there will be a scramble for useful feedstock to convert to biofuels. Since the limiting factor for biofuels is likely to be feedstock, the companies most likely to benefit from a trend towards biofuels are the people who own the feedstock. READ MORE