Don’t you think the above was a forgone conclusion? Taking this from APF via Google News:
KUALA LUMPUR (AFP) – Hopes of a biofuel bonanza for Southeast Asia, raised when sky-high oil prices made the search for alternative fuels a priority, have been shelved as global fortunes and crude prices nose-dive.
Back when movie stars won plaudits for driving hybrid cars, and grains and oils were going cheap, regional governments grew excited over producing biofuel to lower energy costs and soak up agricultural stockpiles.
Malaysia and Indonesia, which produce most of the world’s palm oil, heavily promoted their version of biofuel — a mixture of diesel with five percent processed palm oil.
But the excitement evaporated as crude oil, which peaked at 147 dollars in July 2008, fell to current levels below 37 dollars.
That triggered a massive drop in palm oil prices from 1,245 dollars per tonne a year ago to 405 dollars per tonne last December.
Although palm oil prices have now recovered slightly to 526 dollars per tonne, supply has been disrupted as many firms shut down production or refuse to sign long-term supply contracts because of the volatile outlook.
The Malaysian government says it will now review 91 biofuel plant licenses issued during the sector’s heyday, as the majority are not operating.
I’m for more efficient fuel consumption.
Wata - Malaysian Oil and Gas Engineer 