Assessment of Scale-up Strategies and Execution of 10
Leading International Oil Companies
GLOBE-Net, March 23, 2012 - At 30 billion
gallons in 2011, the global biofuels industry has become big
business. Although conventional biofuels derived from commodity
crops account for the bulk of production today, a proliferation of
national blending mandates have triggered a stampede to
commercialize advanced conversion pathways that rely on low cost,
non-food feedstocks.
Currently valued at over $2 trillion, the global
transportation fuels market is one of the world's largest
industries. Pike Research projects that total revenue from global
biofuels production - both the conventional and advanced
segments - will reach at least $171 billion by 2020.
Today's biofuels industry accounts for nearly 30 billion gallons
of production. Still in its infancy, advanced biofuels
production is just a trickle today, but the industry is
expected to play an increasingly important role over the next
decade due in part to mandates imposed in at least 31
countries worldwide.
With a stake in future oil production and "easy oil"
increasingly difficult to source, the world's largest oil companies
have each charted strategies to bring biofuels to market at
scale.
A common misconception is that biofuels are generally adverse to
Big Oil's interest. The companies profiled in a new Pike Research
report have collectively sunk billions into developing the industry
over the last 5 years.
While a handful are pursuing near-term production via proven,
first generation pathways, all acknowledge that advanced biofuels
must play a strategic role in the future energy mix.
To varying degrees, these companies
have established strategic partnerships and invested in innovative
startups in an effort to build out integrated supply chain delivery
networks. With the estimated cost of meeting emerging mandates over
the next decade at $336 billion, access to the oil industry's
capital and expertise will be critical to scaling up biofuels
production.
This Pike report evaluates ten of the leading publicly-traded
international oil majors and rates them on 12 criteria for strategy
and execution, including production strategy and roadmap,
partnerships, geographic reach, investment portfolio, distribution
network, and market impact.
Using Pike Research's proprietary Pike Pulse methodology,
companies are profiled, rated, and ranked with the goal of
providing industry participants with an objective assessment of
these majors' relative strengths and weaknesses in the emerging
biofuels marketplace.
The Top 10 Vendors include: Shell, BP, Total,
Petrobras, Chevron, Statoil, PetroChina,
ConocoPhillips, Eni, and ExxonMobil.