by Jeffrey Jacobs
The world is going to need every molecule of energy we can get, in every form. That's why today I took part in the panel discussion at the WPC entitled "Biofuels and Oil Products: Competition vs. Integration." The title of my panel suggests that I should state which side of the "versus" Chevron is on. In other words, do we view biofuels as competition or as a complement to our traditional petroleum-based product offerings? The answer is that we are firmly on the "integration" side. Chevron believes that biofuels complement our traditional petroleum-based fuels.
With the worldwide use of energy expected to rise 50 percent by 2030, we're going to need to make the most of the traditional sources, such as oil and gas, and also depend on technology to help us make emerging sources of energy viable.
Chevron's technological strengths span the entire chain of producing, refining and marketing hydrocarbons. But in the biofuels area, we do not have a background in biomass or agriculture.
So in February of this year, we launched a joint venture with Weyerhaeuser Company, one of the world's largest forest products companies, to develop the next generation of renewable transportation fuels from nonfood sources. Our new company, Catchlight Energy, will focus on developing advanced technologies for converting biomass from nonfood sources into biofuels.
At Chevron, we value partnerships because we believe all parties bring something to the table. Weyerhaeuser is one of the world's top timber companies. They have expertise in cultivating, harvesting and transporting biomass. Chevron brings a long track record of creating and distributing energy to those who need it. Working together, we're hopeful we can help to solve the puzzle of how to produce biofuel in cost effective ways from waste products.
We've seen a lot of promising technologies at the laboratory scale. The real challenge now will be to scale those technologies through the pilot and demonstration phases to the point where they've been proved to be commercially viable and can deployed at a size that can make a meaningful contribution to energy supplies. It's not going to happen overnight, but technology will be the enabling factor to developing this new industry.
Posted July 03, 2008 20:04 | Back to Blog