Urbin Report

Tuesday, June 17, 2008

Bad News for OPEC

The Times of London has a story on a California based company that is working on bio-tech produced oil, that should be "carbon negative" to produce.

These slightly modified industrial yeast cells take in biomass, such as wheat straw or wood chips, and "excrete a substance that is almost pump-ready."

There are still issues on how this can scale up to industrial levels, but even a lot of small plants can produce fuel to allow a city to run its municipal vehicles (police cars, fire trucks, and other emergency vehicles) without worrying about the rising market price of foreign oil breaking their budget.

Just bringing a few of these plants online should cause the market price to respond in a downward manner. The start of construction of the plants would probably have that effect.

Update: The fact that uses modified yeast lead me to thinking about home brewing. If this process can be made as simple as brewing beer, then home brewing gas can't be far away. Say that you could brew 20 galleons of gas in your basement a month. That's a tank of gas. So, imagine if 20 or 30 million car owners bought one less tank of gas a week. Call it 25 million, 20 galleons a pop, so that's 500 million galleons of gas a month that isn't be imported or pumped from an area that environmentalists don't want oil drilling. At the current average pump price of $4.09 a galleon, that over $2 Billion that isn't going to "Big Oil" or Middle East dictators.