Follow up to Big Oil saving and running alternative energy

Last month I mentioned that the future of alternative energy could hinge on investment from big oil.  Well, it’s certainly looking that way.    Ethanol refineries are being snatched by large oil companies.       The behemoths in the industry, such as Exxon Mobil, aren’t really interested (surprise surprise!).  But “smaller” firms such as Valero are definitely shopping around.  These companies don’t want to risk the financial uncertainty of building new ethanol refineries, but they are quite happy to snatch refineries that have taken a hit during this financial meltdown.  And as I’ve mentioned, smaller oil and gas firms are realistic about the future of non fossil-based fuels and are trying to figure out how they can adjust their business models. What I find encouraging is that while far too many refineries rely on corn ethanol—a disaster for so many reasons, including pollution in the Gulf of Mexico and the spike in food prices—the majority of the refinery capacity that “big oil” snatched up use other sources than corn.   This could be a smart move when ethanol from more sustainable sources, such as switchgrass, becomes more cost efficient.  So stay tuned .  .  . for about 10 to 20 years . . .