Laura J. Loppacher

Research Associate, Estey Centre for Law and Economics in International Trade, Saskatoon, Canada.

 Articles by this Author

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Co-author 1: William A. Kerr

Petroleum based fuels became the primary source of energy for transportation needs in the 20th century. This has continued in the beginning of the 21st century with almost all vehicles running on gasoline, diesel or natural gas. However, this was not always the case. When Diesel first demonstrated his compression engine in 1898, he used peanut oil for fuel. However, due to the low cost, availability, efficiency and consistent quality of petroleum based fuels, biobased fuels were quickly replaced (Werner, 2003). The dominance of fuels derived from petroleum remained relatively unchallenged until the Organization of Petroleum Exporting Countries (OPEC) induced oil crises in the 1970s. As countries struggled with the shortage of a crucial commodity for their economies they began to explore alternative sources of energy for transportation. One alternative that was explored was biofuels, such as ethanol as a replacement for gasoline and biodiesel as a replacement for diesel. However, as the oil crisis abated, so  did interest in biofuels. However, by the late 1980s, countries around the world became more aware of the problems associated with the use of petroleum-based fuels and began to re-examine the viability of alternate fuels.