If these processes ever go into production and create cheap fuel, the world will really change. Presumably it will stop oil extraction industries from the top down, i.e. high cost producers first. So tar sands, shale oil and deep water sub-salt are the first to go (Canada, offshore Brazil, ...).
Even though Saudi Arabia is the lowest cost producer, it gives a lot of the profits away to the people, in free health services, education, housing, low cost fuel, and, increasingly, in bundles of cash, to reduce dissent. Of course, the extended royal family takes a huge piece of the pie too. The break-even cost of oil to balance current budgets in the GCC states is in the range $80-130, with exception of Kuwait at $55:
The current price is around $100 for Brent, so it would only take a 25% price fall to put the whole region in recession and turmoil (note Bahrain is under water at the current price). The 'curse of oil' often means there is not much other industry to take up the slack in these economies, although the UAE has done a much better job than Saudi Arabia on that score. If you add recent news stories about deep sea methane hydrate extraction, and fusion research at Lockheed Martin SkunkWorks, the leaders of the world's oil producing nations must be getting just a little bit apprehensive.
These bacterias still need to be fed with sugar. Like corn oil it means you're diverting arable land to produce that. I'm not sure if it's really cheaper to produce in the end.
There isn't enough AG production to replace existing petroleum demand with biomass derived biodiesel. All of US corn production converted to alcohol, different from the process here but comperable on fuel potential, would only replace 25% of the nation's oil use.
We may gain some use from biofuels, but it will be a small fraction of what we've been used to.
Even though Saudi Arabia is the lowest cost producer, it gives a lot of the profits away to the people, in free health services, education, housing, low cost fuel, and, increasingly, in bundles of cash, to reduce dissent. Of course, the extended royal family takes a huge piece of the pie too. The break-even cost of oil to balance current budgets in the GCC states is in the range $80-130, with exception of Kuwait at $55:
http://www.businessinsider.com/breakeven-oil-prices-2012-6
The current price is around $100 for Brent, so it would only take a 25% price fall to put the whole region in recession and turmoil (note Bahrain is under water at the current price). The 'curse of oil' often means there is not much other industry to take up the slack in these economies, although the UAE has done a much better job than Saudi Arabia on that score. If you add recent news stories about deep sea methane hydrate extraction, and fusion research at Lockheed Martin SkunkWorks, the leaders of the world's oil producing nations must be getting just a little bit apprehensive.