There are a number of benefits that serve as driving forces for developing and deploying algae technology. Some of these benefits have already been mentioned. Four key areas are outlined here. The first two address national and international issues that continue to grow in importance—energy security and climate change. The

remaining areas address aspects of algae technology that differentiate it from other technology options being pursued by DOE.

Energy Security

Energy security is the number one driving force behind DOE’s Biofuels Program. The U. S. transportation sector is at the heart of this security issue. Cheap oil prices during the 1980s and 1990s have driven foreign oil imports to all time highs. In 1996, imports reached an important milestone—imported oil consumption exceeded domestic oil consumption. DOE’s Energy Information Administration paints a dismal picture of our growing dependence on foreign oil. Consider these basic points11:

• Petroleum demand is increasing, especially due to new demand from Asian markets.

• New demand for oil will come primarily from the Persian Gulf.

• As long as prices for petroleum remain low, we can expect our imports to exceed 60% of our total consumption ten years from now.

• U. S. domestic supplies will likewise remain low as long as prices for petroleum remain low.

Not everyone shares this view of the future, or sees it as a reason for concern. The American Petroleum Institute12 does not see foreign imports as a matter of national security. Others have argued that the prediction of increasing Mideast oil dependence worldwide is wrong. But the concern about our foreign oil addiction is widely held by a broad range of political and commercial perspectives13.

While there may be uncertainty and even contention over when and if there is a national security issue, there is one more piece to the puzzle that influences our perspective on this issue. This is the fact that, quite simply, 98% of the transportation sector in the U. S. relies on petroleum (mostly in the form of gasoline and diesel fuel). The implication of this indisputable observation is that even minor hiccups in the supply of oil could have crippling effects on our nation. This lends special significance to the Biofuels Program as a means of diversifying the fuel base in our transportation sector.

Our almost complete reliance on petroleum in transportation comes from the demand for gasoline in passenger vehicles and the demand for diesel fuel in commerce. Bioethanol made from terrestrial energy crops offers a future alternative to gasoline, biodiesel made from algal oils could do the same for diesel fuel.