BIG OIL & BIG AG GO NEW ENERGY

All kinds of folks get suspicious when Big Oil gets into New Energy. Could it be that these folks are just trying to make a buck? Have they ever shown any inclination, really, to care whose politics they’re messing with?

Of course, in the spirit of making a buck, it doesn’t hurt that big subsidies for biofuel research and production are expected to be in this year’s energy legislation.

There was a famous remark by one of Exxon’s CEOs that Exxon had gotten into solar way back in the 70s but then got out because they couldn’t figure out how to make any money with it. NewEnergyNews would like to see Socrates and that CEO go at it on the street corner.

ConocoPhillips, ADM team to produce renewable fuel
October 1, 2007 (Oil & Gas Journal)
and
Conoco and ADM to collaborate over biofuel
Carl Gutierrez, September 27, 2007 (Forbes)

WHO
ConocoPhillips (Jim Mulva, CEO), Archer Daniels Midland Co. (ADM)

click to enlarge

WHAT
Conoco and ADM will jointly spend $10 million/year on research to create a biomass-based transportation fuel.

WHEN
Conoco and Tyson Foods began working together last April on a diesel from animal fat project. Conoco says it will spend $100 million over the coming years to convert refiners to this capability.

WHERE
Earlier this year Conoco created a $22.5 million research project at Iowa State University for biofuel research.

WHY
- Biomass from crops, wood and switchgrass will be considered. The companies are seeking what they refer to as “biocrude” which would be refined into transportation fuel.
- Large government subsidies for biofuel production are expected from upcoming energy legislation in Washington.

Patricia Woertz, CEO, Archer Daniels Midland: Picked by Forbes as one of the 10 energy executives to watch in 2008.

QUOTES
Mulva: “ConocoPhillips believes that the development of next-generation biofuels is a critical step in the diversification of our nation’s energy sources…We are hopeful that this collaboration will provide innovative technology toward the large-scale production of biofuels that can be moved efficiently and affordably through existing infrastructure.”