On April 1 — April Fool’s Day, appropriately enough — Rep. Edward J. Markey (D-Mass.) held a nearly 3-hr hearing before the House Select Committee on Energy Independence and Global Warming. One of the participants was Chevron Corp. Vice-Chairman Peter J. Robertson, who made some excellent points.According to Robertson, biofuels can potentially play an important role in meeting future demand for transportation role fuel. But biofuels still face commercial challenges. “One of the country’s largest biodiesel facilities in Washington state, for instance, has an annual production capacity of 100 million gal.,” said Robertson. “This amount would serve the country’s demand for transportation fuels for about 6 hours of 1 day, and it roughly equals the amount of transportation fuel that Chevron’s refinery in Pascagoula, Miss., produces in a single week,” he said.

According to information collected by Chevron, worldwide investments in renewable and alternate fuels have increased nearly fourfold since 2004. In the past 12 months investors have poured nearly $150 billion into the biofuel sector. Biofuel volume will increase by about 45% by 2030 to meet future demand, but still will represent only about 10% of the total energy mix. This 10% is about equal to the current share. Relative quantities might not change much because overall global demand is growing so quickly.

Robertson added, “Energy efficiency is the most immediate and important action that each of us can take to start to reduce energy prices. The United States must become a nation of energy savers. In short, we need a ‘Made in America’ solution enabled by everything from human ingenuity to ’smart’ buildings to advanced vehicles and transportation systems. Markets are indicating that consumers are already taking action. You and your committee have a critical role to play to engage the US public and put the United States at the forefront of responsible energy use.”

Until Next Time…

Byron

Note: Byron King is a frequent contributor to the free e-letter Whiskey & Gunpowder. To receive daily insights into energy, oil, commodities and other natural resources sign up here!