Bloomfield Hills248-494-4486
Detroit313-757-4724

Tesoro incorporates algae-derived oil into its business planning

There has recently been plenty of concern regarding the negative effects that drilling for oil has on the environment. Much of this has stemmed from the various large spills at oil drilling locations which have resulted in the pollution of the environment in Michigan and elsewhere. Some oil companies are looking for new ways to produce oil without having to drill. One company, Tesoro Corp., has decided to address this concern by adding algae-derived crude oil into its business planning .

Tesoro, which is the largest independent oil refiner on the West Coast, has recently decided to purchase algae-derived crude oil from Sapphire Energy Inc. The amount Tesoro has decided to buy from Sapphire has yet to be released to the public. However, Sapphire has made public statements which suggest that this is the beginning of a longer-term business relationship between the two companies.

The product being purchased was produced at Sapphire's demonstration plant which was partially funded by a $50 million grant via the U.S. Energy Department. The Department of Agriculture also provided a $54.4 million loan guarantee. By 2014, Sapphire plans to begin producing as much as 100 barrels per day.

Arguably, Tesoro may be on the cutting edge of energy technology by implementing this alternative source of crude oil into its business planning. However, in order to fully maximize profit potential while also avoiding possible losses will require a well-crafted business plan. Additionally, an effective business plan will ensure that all legal regulations in Michigan and elsewhere are being followed in order to avoid future fines or law suits.

Source: Bloomberg Businessweek, " Tesoro Is First Customer for Sapphire's Algae-Derived Crude Oil ," Andrew Herndon, March 20, 2013

Need Legal Advice?

To schedule a consultation, email or call us at 248-494-4486. Whether your case is a business law matter, a real estate transaction, an employment law matter or anything else, our law firm is ready to serve you.

Bold labels are required.

Contact Information
disclaimer.

The use of the Internet or this form for communication with the firm or any individual member of the firm does not establish an attorney-client relationship. Confidential or time-sensitive information should not be sent through this form.

close