When crude oil prices hit $60 a barrel and gas prices dipped below $2, you could almost hear an audible sigh from those who never really believed the energy crisis was real and felt renewable fuel was just a fad. Here it was: proof that things would soon return to normal with cheap gas, cheap corn and cheap food.

Media, which had been skeptical of renewable energy all along, started running stories about how the American public was losing interest in renewable energy and how Wall Street investors were no longer interested in renewable energy stocks. But, before you declare the patient dead, you might want to take a closer look.
While it is natural to want to return to those “good ol’ days,” the reality is they are gone and are not coming back. For example, have you noticed that while the price of fuel and the price of corn have fallen dramatically in the past few weeks, the price of food has not?

Those fuel surcharges delivery companies started putting on their bills have also not been removed. The reason is that energy has not suddenly gotten cheaper to produce nor has the supply of oil suddenly increased. What we are seeing is a dip in the market, not a new golden age.

A quick look at the geo-political map will reveal just how shaky the energy situation is. With Iran about to acquire nuclear weapons capability, the Middle East, where most of the world’s oil is, will become a less stable place not a more stable place. In addition, Russia and Venezuela are working on an oil cartel of their own. One major development in either of these places would send oil back to the stratosphere very quickly.

Last week a report was released that shows just how close to the end of the fossil fuel era we are. According to a report released by Greenpeace, of all people, “Solar power, wind farms, geo-thermal stations and biofuels could meet all of the world’s energy needs by the final decade of this century. The Energy (R)evolution report makes a clear case for ‘business as unusual.’ The renewable industry is ready and able to deliver the needed capacity to make the energy revolution a reality. There is no technical impediment to doing this, just a political barrier to overcome as we rebuild the global energy sector.”

The closing of several ethanol plants and the merger of several ethanol companies have been cited as signs of an industry in trouble. Actually, it is a sign of an industry growing up. Bruce Rastetter with Hawkeye Renewables, one of the nation’s larger ethanol producers, told me he expects more consolidation in the industry.

He noted that, in the end, it will be the companies with the skills, technology and capitol that move the industry to the next level. He pointed out that the much touted cellulosic ethanol industry will be created by the corn ethanol industry. It has the know-how, facilities and infrastructure to make cellulosic energy a reality.

So, if you are looking for a reason to celebrate, celebrate the fact we have cheap gas for a while. But let us not lose sight that our world needs a variety of new energy sources and that American Agriculture will be a major provider of several of them.
Let’s make sure our nation invests in the future instead of clinging to the past. Oh, and if you are looking for a place to wear that black dress, try the funeral of fossil fuel - it will be here before you know it.

The views and opinions expressed in this column are those of the author and not necessarily those of Farm World. Readers with questions or comments for Gary Truitt may write to him in care of this publication.