Who says there’s an oil shortage?

The Economist says that bio-fuels like ethanol (made from sugarcane and corn) and bio-diesels like “BioWillie” (derived from a blend of vegetable oil) might come to the rescue of consumers and the environment and also help in reducing reliance on foreign oil. Especially of interest:

A recent bioengineering breakthrough means that it should soon be possible to convert plant products far more efficiently to ethanol. This lends promise to cellulosic ethanol—a product that can be made from agricultural “waste”, such as corn cobs or weeds, which is widely available. (Once corn kernels and sugar-cane sap have been taken away for sugar, they leave plenty of stalks and leaves behind.)

This could lead to a revolution in emerging economies where agricultural waste, grass and weeds could be used as a cheap source of indigenous fuel. Also see my earlier post about rural electrification.

As consumers, this is welcome news for us, once again proving that human ingenuity is capable of tackling natural shortages. As an investor, it puts forth questions on where to invest. Tomorrow, we’ll see how we can play the market in light of such developments.

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2 thoughts on “Who says there’s an oil shortage?

  1. Pingback: Miles

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