I will defer at the moment to your apparently superior knowledge certain aspects of the biofuel market. I still contend, however, that biofuels are politically in vogue and that the economics of biofuels will improve, although I take your point about the increasing cost of fuel, as oil prices rise, impacting on the harvesting and processing of biomass. That's one of the reasons ethanol from corn was and is a bad idea.
Short to mid-term, who knows, ultimately, though, the price of oil goes up. While we would like to keep US demand down for obvious reasons, the long term trend for use in Asia is up and "cheap oil" is becoming harder and harder to locate. You have to go deep or work with oil sands, oil carbonates or worse oil shale...all of which is expensive.
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