Biodiesel Companies: Will They Take Over The Oil Giants?

• Biodiesel companies may be some of the big energy leaders in the future
• The giant oil corporations have started investing in biofuels
• At some point biodiesel companies may become one of the dominant environmentally friendly fuel suppliers around the globe

Biodiesel companies may be one of the fuel providers of the future, but will they ever take over the oil giants and rule the fuel marketplace? The answer to this may be both yes and no, because there are a number of different factors that must be addressed to answer this question. The oil giants will probably never go out of business, but they may change their energy strategies and adapt new biodiesel policies and products to reflect growing shortages in new fossil fuel reserves, and increasing global energy demand. Many large oil giants are investing more money in renewable alternative energy sources including biodiesel, and this does two things. It keeps the large fossil fuel corporations in the market and allows them to stay competitive, and it injects new capital into biodiesel companies to allow for further research and development. This fuel type can be very effective and efficient, and can be made from many types of biomass which are commonly available. These biofeedstocks can include algae, crop waste, plants like jojoba and rapeseed, and even vegetation which thrives in unfertile ground where food crops could not flourish. Biodiesel may play a large part in the fuel debate, in the present and the future, and this fuel is used now in some vehicles to cut down carbon emissions and other greenhouse gases.

Many biodiesel companies are still small, because many investors have been leery of the alternative energy sector. This is in part due to the economic downturn and in part to uncertainty over which of the many renewable alternative energy sources are the ones which will become dominant in the future. One reason that the giant oil companies are starting to see the light, and invest in biodiesel companies, is that the United States Government has issue mandates which force oil companies to blend in biofuels, to make fuel more efficient and environmentally friendly. These mandates increase the percentage of the fuel for vehicles that must be biofuel over a specified time frame. Petroleum companies have no choice but to blend biofuels with fossil fuels, to comply with these mandates, and that means that a steady supply of these fuels will be needed. Joint ventures and acquisitions will allow the large oil corporations to stay competitive without being edged out of the energy market in the future. BP is one company that has already done this, with a biofuel production company named Verenium. This venture concerns ethanol, and not biodiesel companies, but the same thing is occurring where biodiesel is concerned as well. Even when fossil fuels are no longer used, many big oil companies will still survive and even thrive by using their almost unlimited resources to stay in the game. Whether these larger corporations will completely stay on top or not remains to be seen.

Many biodiesel companies are on the rise, and in the near future these companies may be placed high in the market, on an even footing with fossil fuel energy companies. Countries around the world are moving towards fuel sources which are renewable and are friendly to the earth and the environment, and biodiesel meets both of these criteria. It may not be too far in the near future when companies that manufacture this fuel are the leaders in the energy, just like the oil giants are today. Many of these biodiesel companies may be affiliated with the the fossil fuel companies that are leading the energy sector today, because the oil companies have the capital and the biodiesel companies have the technology. When these are put together it could mean an end to fossil fuel dependence, and a cleaner world in the future.

The information supplied in this article is not to be considered as medical advice and is for educational purposes only.