How to Profit

Investing in alternative fuels holds much promise.  How much money could you make?  That remains uncertain and depends largely on petroleum markets and whether Congress acts to protect the industry from foreign predators.  Obviously, if all-in production costs are equivalent to roughly $1.23 per gallon of gasoline (or $45 per barrel of oil), there is a wide margin to profit

Plant developers and farmers are the obvious winners, but who else stands to benefit?  Probably the most clearly identifiable beneficiary is the US steel industry.  A not-so-insignificant chunk of the $860 billion of investment would go toward the purchase of steel to be used in plant construction.  The construction effort could single-handedly turn around the US steel industry, an excellent step toward reversing the trend of outsourcing America’s industrial base.

A not-so-obvious beneficiary could be the US airline industry.  Volitile fuel prices, coupled with cut-throat competition, have given the airline industry a fairly well-deserved reputation as being perennially bankrupt.  Domestic fuel alternatives could change that paradigm.  Domestic alternative fuels and airlines are among the most perfect natural partners.  Why?  Domestic alternative fuel producers need stable prices and stable buyers.  Airlines need stable prices and a stable source of fuels.  The logistics of both industries favor the concentration of buyers and producers in regional pockets, which sounds a lot like locating plants at or near major airports where massive quantities of fuel are used in a single location.