Shell, BP Score Highest in New Pike Research Assessment of Oil Majors’ Commercialization of Biofuels

IBT Times (UK) Green Economy
20 March 2012, 10:53 BST

Today’s biofuels industry accounts for nearly 30 billion gallons of production. Still in its infancy, advanced biofuels production represents just a trickle today, but biofuels are expected to play an increasingly important role over the next decade due in part to mandates imposed in at least 31 countries worldwide. Contrary to popular perception, the growth of the biofuels industry is not adverse to the interests of Big Oil. In fact, with “easy oil” increasingly difficult to source and with an obvious stake in the future of the $2 trillion transportation fuel market, the world’s largest oil companies have begun charting strategies to bring biofuels to market at scale. At the same time, with the cost of meeting emerging mandates over the next decade estimated at $336 billion, access to the oil industry’s capital and expertise will be critical to scaling up biofuels production. According to a new Pike Pulse report published by Pike Research, the oil majors best positioned to drive and profit from the growth of biofuels are Shell and BP.


“While Pike Research does not perceive any of the oil majors to be outright industry leaders at this stage, several companies have demonstrated a solid foundation for growth and long-term success,” says senior analyst Mackinnon Lawrence. “Shell and BP both have advantageous near-term positions for ethanol production from sugarcane and strong commitments to commercializing advanced biofuel pathways.”

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