Earlier I blogged about how some scientists have figured out to turn the sun and CO2 into any fuel. Well, not to be outdone, another outfit has managed to create bacterium that does the same thing.
In September, a privately held and highly secretive US biotech company named Joule Unlimited received a patent for 'a proprietary organism' – a genetically engineered cyanobacterium that produces liquid hydrocarbons: diesel fuel, jet fuel and gasoline. This breakthrough technology, the company says, will deliver renewable supplies of liquid fossil fuel almost anywhere on Earth, in essentially unlimited quantity and at an energy-cost equivalent of $30 (US) a barrel of crude oil. It will deliver, the company says, 'fossil fuels on demand.' … Joule says it now has 'a library' of fossil-fuel organisms at work in its Massachusetts labs, each engineered to produce a different fuel. It has 'proven the process,' has produced ethanol (for example) at a rate equivalent to 10,000 US gallons an acre a year. It anticipates that this yield could hit 25,000 gallons an acre a year when scaled for commercial production, equivalent to roughly 800 barrels of crude an acre a year."
So here is the scoop. A company has patents on how to produce fuel on an “infinite” level! And it only costs them the equivalent of 30 USD per barrel of crude oil! With oil at nearly 100 USD they are making about 3x profit!
Sorry, no matter how you slice it Tesla, and the electrical car are FINISHED, FINITO, DONE, STICK A FORK INTO IT! There is absolutely no incentive to build out the electrical infrastructure to make the electrical vehicle work. We have so much legacy built into the combustion motor engine, with technologies like the a previous blog mentioned and this new one we can just keep going as is. The big difference is that we will not need fossil derived fuels anymore.
So the play here is, long term short on any electrical vehicle or hybrid. And a long term short on oil. What was interesting last week when I was doing my IB webinar is that I noticed that there is hardly any contango for oil until 2019. Do the oil traders know something? Who knows…