Chevron is like a blacksmith that foresees the decline of the horse and buggy and learns how to build cars. The energy company is teaming up with universities across the country to develop biofuels that will supplement the dwindling supplies of oil.
Chevron is funding research at Texas A&M Agriculture to develop plants that make superior feedstock for cellulosic ethanol as well as new processing methods. We just have to be careful with any genetic modification of plants that are part of the food supply.
Chevron will spend $2.5 billion during the next three years on biofuels and also has relationships with the Georgia Institute of Technology, the University of California – Davis and the Colorado Center for Biorefining and Biofuels.
It's good that unlike ExxonMobil Chevron is thinking beyond the next quarter to the next quarter century to dive rsify its business into biofuels. Instead of inflating the salaries of top executives during these boom years, the company is investing in R&D that will keep shareholders happy for the coming decades.
