By Bancroft W.D., Rutzler J.E.
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The oil companies' war with biofuels has already become a truce; now it may become an alliance. Not all their skills are transferable: coastal biofuel plants, like refineries, have an eye on bulk, seaborne inputs, but most of Europe's biodiesel is made from rapeseed (or rape oil) brought in by truck, not tanker or pipe. It is the economics of supply, more than distribution, that inspire the wide spread and relatively modest size of biofuels plants. But the oilmen are mighty. Europe's coming ethanol boom in part reflects a different aspect of supply: its source.
Salvation, of a rather dubious kind, has come from students. Mr Hargreaves points out that dormitory costs for students have increased, which makes two-bedroom flats more appealing to the undergraduate children of the rich. That has underpinned the market. But a block that is filled with students is even less likely to increase in value —and, besides, it is not exactly the well-rounded urban community imagined a decade ago. Seeing ghettos of young renters and hearing the noise from all those pubs and restaurants, the middle-aged and the old seem to be staying put in their suburban retreats.
If he took it into his head to do so, Mr Brown could mount a successful strike against Mr Blair's leadership. But the blast and the fallout would do so much damage to the government and the party that Mr Brown would find himself sitting on top of a smoking ruin.