RSS
May 08, 2008 | Jim Lane | Comments 0

Today in Biofuels Opinion: “U.S. will pay $800 billion for its oil supply…up a factor of 10 from 1999″

From the Chicago Tribune: “This year, with OPEC-rigged oil prices exceeding $100 a barrel, the U.S. will pay $800 billion for its oil supply, and the world as a whole will pay $3.2 trillion. These figures are both up a factor of 10 from what they were in 1999 and represent a huge regressive tax on the world economy. According to Merril Lynch analysts, without the biofuel programs, the price of oil would be about $13 a barrel higher than it now is. A $13 savings for each barrel could save the U.S. $65 billion in foreign oil payments.”

Mariann Fischer Boel, EU Agricultural Commissioner: “Those who see biofuels as the driving force behind recent food price increases have overlooked not just one elephant standing right in front of them, but two. The first elephant is the huge increase in demand from emerging countries like China and India. These countries are eating more meat. It takes about 4 kg of cereals to produce 1 kg of pork, and about 2 kg of cereals to make 1 kg of poultry meat. So a dietary shift towards meat in countries with populations of over 1 billion people each has an enormous impact on commodity markets. The second elephant is the weather, and its effect on production. In 2006, bad weather hit cereal production in the US, the European Union, Canada, Russia, Ukraine and Australia! In 2007, the same thing happened again, except in the US. This is not a recipe for low prices.

Entry Information

Filed Under: Opinion

Related Stories


  • Today in Biofuels Opinion: “While ethanol production … is a factor in increased (food) prices, it’s not the driving factor.”
  • US Secretary of Agriculture Ed Schafer: "Things have become apparent that while ethanol production ... is a factor in increased (food) prices, it's not the driving factor. Energy, and increased consum...
  • Today in Biofuels Opinion: “[The Ethanol industry has] “generated an estimated $33.4 billion in tax revenue for the Federal government”
  • Sergio Ramírez Robles of Biofields, investor in Algenol: "Our business plan projected a 850 million dollar investment at the end of our first step (4 years) [and will] produce 250 million gallons of ...
  • New US ethanol plant construction slows dramatically
  • New ethanol plant construction has slowed. Two new plants have started construction this year in Iowa - the lowest number since 1999. In Illinois, only five out of 38 plants approved this year have co...
  • Today in Biofuels Opinion: “The Renewable Fuel Standard (RFS) is a significant factor in the increased cost of commodities”
  • Rep. Bob Goodlatte of Virginia, supporting an RFS waiver: "The Renewable Fuel Standard (RFS) is a significant factor in the increased cost of commodities, which is causing severe economic harm for low...
  • Today in BIofuels Opinion: “We haven’t even begun to see the impact on the cost of food.”
  • Kent Barton, plant spokesman for Moroni Feed: "I don't believe consumers understand what's going to hit them next year. We haven't even begun to see the impact on the cost of food." Gary Truitt, Ho...
  • Today in Biofuels Opinion: “ethanol in 2007 reduced oil imports by 228 million barrels, saving $16 billion of taxpayer dollars”.
  • From the Renewable Fuels Association: "The production and use of 6.5 billion gallons of domestic ethanol in 2007 reduced oil imports by 228 million barrels, saving $16 billion of taxpayer dollars. The...

    RSSPost a Comment  |  Trackback URL

    You must be logged in to post a comment.