erik,
Actually, you don't even need to convert the oil into biodiesel-diesel engines will burn straight veggie oil. The problem is making it flow easily- a preheater is usually involved.
--------
It is true that bidiesel will not be able to fully replace petro, but eventually oil will be too valuable to burn, instead going into chemicals, plastics, and soforth. There will be a need to shift over to other fuels. BDiesel, ethanol, electric, hydrogen perhaps, maybe even steam again. The important thing is to not try to make a switchover as the stuff is drying out, but beforehand. And as a preparedness-type, the simplicity of making biodiesel and ethanol appeals to me