Wow - gas prices were $1.74 this morning on my way into work.  The Alternative Energy movement certainly gained considerable steam as oil prices soared close to $140 per barrel. But, with oil prices dropping to close to $50 per barrel, can alternative energy sources compete? 

Probably not in the short term, but it seems that smart money will continue to pursue green solutions because it seems very unlikely oil prices will stay this low for long.

Solix Biofuels Inc.’s president, Doug Henston, believes that algae-based oil will ultimately be able to compete with crude oil prices at $70-80 per barrel.  The problem is, algae-based oil is not yet a completely viable alternative.  At this time, oil can not be produced on a significant enough scale to effectively compete with crude.  But with the research dollars being focused on accomplishing just that goal, $100 crude probably will have returned by the time algae-to-oil is ready for prime time.  At that point, $80 algae-based oil will look like a bargain and the investments being made now will pay off handsomely.

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