When they acknowledge a short-term glut of product, the oil bulls also assume this will kill other forms of burnable energy. (Heads I win, tails you lose.) Well, DuPont just broke ground on a new cellulosic ethanol refinery in Iowa,
, as part of a new boom in
Biofuel companies that had been beaten down all year including
(SZYM - Get Report) are proving they can deliver at scale,
and start-ups are working on a whole new class of "electrofuels" that produce electricity directly from living matter,
Biofuel producers say they can make money with today's prices, and that their costs are falling.
What about the sun?
Consider that solar energy is now cheaper in California than other forms of grid energy, as
The Motley Fool reported in April
, and that the UK will achieve "grid parity" next year,
Industry Week expects
half the country will reach this point by 2016,
a tipping point that will dramatically increase demand.
So we have increased production, renewables coming on stream, and lower demand, not just next year but the year after that and the year after that.
What happens when fossil fuel producers start seeing that the value, per barrel, of reserves in the ground is declining, not rising? Anyone who thinks that renewable energy technology is going to stand still, or that efficiency is going to stop paying for itself, isn't paying attention.
From an investor's point of view it's not yet morning in America but I can see the sun rising from here. Our energy future is surprisingly sound.
At the time of publication the author had no position in any of the stocks mentioned.
This article was written by an independent contributor, separate from TheStreet's regular news coverage.