Reports of Big Oil Investments Provide Hope for Policy Change
Washington, D.C.--Congressman Eliot Engel, a senior member of the House Energy and Commerce Committee, was encouraged to see Exxon Mobil, the world's largest publicly traded oil company, announce it will invest $600 million in producing liquid transportation fuels from algae. This comes on the heels of Royal Dutch Shell PLC saying earlier this year it would invest in next-generation biofuels, including a method to produce ethanol from wheat straw, and to develop a synthetic biofuel from wood residue. In addition, British Petroleum PLC said it would work to build a cellulosic ethanol plant in Highlands County, Florida.
Rep. Engel said, “I’m pleased to see oil industry giants begin investing in alternative energy. The industry has enjoyed record-breaking profits in recent years, but it has stubbornly refused to explore alternative energy options. I hope this announcement is a harbinger of change in the energy industry and represents a new dawn for America’s energy future. I remain hopeful that subsequent investments by Big Oil are more substantial than these, which are tiny when compared with their pursuit in finding new supplies of crude and natural gas.”
Rep. Engel said, “Algae is considered a sustainable source for second-generation biofuels. I believe it has tremendous promise, and I encourage continued efforts to develop its full potential. This is further proof that Congressional efforts are creating the necessary incentives to spur investment in biofuels, needed to achieve energy independence.”
The Energy Independence and Security Act of 2007 requires ever-larger amounts of biofuels to be produced – 9.0 billion gallons of renewable fuel in 2008, increasing to 36 billion gallons in 2022. The current biofuel supply only represents about 4% of total vehicle fuel demand.
There may also be economic benefits of algae fuel if the nation institutes a carbon cap-and-trade system, which would increase the monetary value of algae's ability to dispose of carbon dioxide.
Rep. Engel said, “I believe that we can achieve further development of biofuels by implementing an Open Fuel Standard. Such a standard – like I proposed in HR 1476 – would require new cars manufactured or sold in the United States to be flex fuel vehicles capable of burning any combination of gasoline, ethanol or methanol. Detroit already knows how to cost-effectively make these vehicles – only $90-100 per vehicle, or in some cases significantly less. By making new cars sold in America capable of running not only on gasoline but on ethanol or methanol, we can provide a market for algae-based and other advanced biofuels which will help wean us from our present, dangerous dependency on foreign oil.”
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