Biofuels Getting a Boost from Oil Companies

Many if the larger oil companies are now choosing to invest in biofuels. Low-carbon policies that are beginning to be adopted around the world are pushing the big oil companies to spend money on alternative fuels. Guy Chazan from The Wall Street Journal writes,

...The Renewable Fuels Standard mandates growth in annual sales of biofuels through 2022. The Department of Energy expects U.S. production of biofuels to increase from less than half a million barrels a day in 2007 to 2.3 million barrels a day in 2030. Inevitably, that will erode the oil majors' conventional business.

This is one of the main reasons that the big oil companies have started to gain interest in the biofuels section of the energy market because they know that they will have to start making progress with biofuels in order to survive later. These technologies will hopefully be used in the near future to power our cars and provide electricity for our homes, helping us reduce our thirst for oil.