BP and Shell (RDS.A, RDS.B) have halted funds for four separate biofuel ventures because the...


BP and Shell (RDS.A, RDS.B) have halted funds for four separate biofuel ventures because the technology won’t be economical until 2020 or beyond, executives tell Bloomberg. The decisions helped cut global investment in biofuel production to $57M in Q1, the lowest since 2006, making it less likely the industry will meet ambitions of reducing fossil fuel pollution and weaning motorists off crude oil-based fuel.
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Comments (5)
  • retired358
    , contributor
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    That was the correct decision...and probably results from the relatively new technology to produce oil and gas from shale. As more gas is produced, it will replace oil in many applications - which will also result in the production of fewer greenhouse gases...for those who believe that they are more relevant than natural cycles...
    8 Jul 2013, 03:14 PM Reply Like
  • mosimafia
    , contributor
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    It is interesting that Shell first buys the bio fuel companies to own them, then will not support them financially so they can not only under supervision of Shell but also be downsized after while by not supporting them financially. in this way the consumer must remain Oil and gas users from Fossils which shell and other oil producers are expert in the exploration, development and sales ......
    8 Jul 2013, 04:55 PM Reply Like
  • retired358
    , contributor
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    The reality is that oil/gas is generally the least expensive form or transportation energy.

     

    The small companies with an "idea" would fold without the additional financial support of a larger company (or else they would not agree to have the larger company become a partner). The larger company is willing to invest on the "outside" chance that the "idea" might, in fact, prove to be competitive. With the cash infusion, the "idea" is further developed to the point that it often proves to be uneconomic or economically not scalable (to commercial size). At this point, it is not productive to spend more capital and the venture is truncated...but, it survived longer than it would otherwise have...

     

    It is not really as sinister as you suggest...larger companies are always looking for an "idea" that will prove to be a more economic form of energy...it is to their competitive advantage to do so...
    9 Jul 2013, 09:25 PM Reply Like
  • daphnex2
    , contributor
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    Biofuels are a very weak form of energy.
    8 Jul 2013, 06:17 PM Reply Like
  • John Q Doe
    , contributor
    Comment (1) | Send Message
     
    "...won’t be economical until 2020 or beyond"
    Translation, gasoline won't be at $10.00 a gallon until then.
    8 Jul 2013, 09:48 PM Reply Like
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