Oil Consumption to Drop for First Time in 25 Years

WIRED - The world's population will use less oil this year than it did last year, according to a new forecast from highly-regarded International Energy Agency.

Global oil demand hasn't dropped since 1983 when the world's developed economies were struggling on the tail end of a recession. This time around, it's not just the old, big economies that are struggling. China, which has experienced the greatest boom in history, appears to be in economic trouble.

In a separate report, the World Bank said the global economy was teetering on the brink of recession. One sign of the times: here in California, home to Web 2.0, green tech and Silicon Valley, the state's tax revenues came in nearly 20 percent below expectations this month.

And biofuel companies trying to capitalize on last year's high oil prices may suffer from a crippling one-two punch: The financial crisis froze money that might have flowed into their coffers, while the precipitous decline of energy prices makes them look relatively less attractive.

That's what happened back in the mid-'80s, after all. Simpering economies and the collapse of crude oil prices in 1986 effectively tanked biofuel research for decades.

But there is a big difference between the mid-'80s and today: the president. Back then, Ronald Reagan, no fan of alternative fuels, sat in the Oval Office. This time around, Barack Obama — broadcasting his green-jobs promise — will be at the helm.

The presumed appointment of Steven Chu, a noted advocate of renewable energy and research scientist, to head the Department of Energy, could be just the ray of hope green-tech companies need in these dark times.

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