Isn't soybean oil the most produced oil in the US? Is the bulk rate of soybean oil lower than that of diesel? How does rapeseed oil compare cost wise in bulk.
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My understanding is that you are correct but that will change, and soon. There are many crops that will produce more oil than soybeans including hemp and sunflower. Eventually we will see successful extraction of high grade vegetable oil from algae. I suspect that the useless desert southwest will turn in to a huge source of "Diesel Oil".
Rapeseed oil=Canola oil, lots of it is produced, it is cheaper to grow per acre, and produces more per acre than corn or soybean, the left over and by product is good animal feed. Most farmers that were growing tobacco have not been growing anything but hay for animal feed. Production of rapeseed and are corn or soybean could double and or triple if the farmers think there is a demand. A lot of cotton fields in the south will be growing corn and rapeseed and soybean this year as an alternative to cotton. To make corn into ethanol requires ton's and ton's of sugar and is not cost effective.
However, a professor at Virginia Teck has come up with a new way, he plans , to convert sugar to hydrogen if it works, the energy crises is solved.