Re: Valero moving in on cellulosic ethanol production via Mascoma
The problem we have is that Iran and many other countries will become net oil importers in the next 6-7 years. What we are experiencing is gradual and perhaps slightly sudden aggregate supply shock caused by an increase in quantity demanded and a decrease in overall production and export. This is why countries like Indonesia who became a net oil importer in 2004 are now using their NG reserves as a bargaining chip for oil while sending countries like Japan to search elsewhere for oil and consequently, natural gas. Add in that the Middle East is the third largest growth user of petroleum due to modernization and electrification and what we now have is a much greater demand than what was projected 20 years ago.