The price of oil continues to rise despite the occasional dip and production levels stay the same as they have during the past four years. There are moves afoot to get more oil out the on the market but all we have seen so far is a mere 'drop in the ocean' so to speak.
Basic economics demonstrates that when supply is low, and demand is high, prices rise. If more oil is released into the system the price will fall. Wealthy oil producing countries don't want this to happen. Oil is. Arguably, the most precious commodity on earth.
China has a serious shortfall and has been plugging the gap with bio fuels made from grain, oil seed and sugar. This trend which is growing fast in Asia, the mid-east and South America is taking away food supplies. The world's population is growing at the rate of around 70 million per year.
The situation in China is critical and the government very afraid of what a drop in food supplies could do. There are already serious physical shortages and the people fear a repetition of the 1960's food crisis that hit the country.
A crisis like the one the world is currently facing has never been seen before. Food production has become energy production as alternatives to oil are sought and developed. Corn is not being used for bread as it makes an excellent fuel for cars and power plants if it's converted to ethanol.
Worldwide the amount of land used to grow biofuels has increased more than seven fold during the past six years and this kind of fuel now provides 4% of our global energy requirements.
The crops involved are sugar beet, corn , wheat, soya, and rapeseed. These are staple foodstuffs throughout the world. Increasing tendencies for these to be used as biofuels, is driven by government subsidies in US and Europe. So, demand for these crops as a fuel alternative rises, prices rise and the portion that is left for food becomes increasingly expensive.
Take for example the price of a loaf of bread. A standard loaf of white made from wheat flour has increased by more than 25 % in UK during the past year. There are similar rises in US and in less well off countries like Brazil and China.
World wheat prices have been inflated so much in the scramble for fuel that it is becoming increasing difficult for us to feed ourselves.
The time is fast approaching when we may have to make the choice between feeding people and fueling our factories and cars. Technology needs fuel, whether it is for production, or energy to run it and we are rapidly running out of options.
Louie Jerome is a writer, editor and publisher from UK. She has written two books and is currently working on a third one. Her main interests include world events and marine biology but she writes on a whole variety of topics.
» left by Susan Thom(8,304) Susan Thom (92 days 6 hours ago.)
hi Louie,
this was a well written, interesting article that is scary in contact, and yet, we, the people should really know what is going on in this world of ours. thank you for filling some of it in. i hope you keep writing,
best regards,
sue thom Respond to this comment
» left by Mark Fleagle(2,600) Mark Fleagle (90 days 23 hours ago.)
bravo! this a superbly written article. You did your home work. Just look at our economy , because of the shortages we have driven smack dab into a major down turn in. Respond to this comment
Great article. I had never thought about our oil and food crisis in just this light before. Certainly a different and frightening slant on the economic issues world wide.
Louie, unfortunately, the word of this century, wherever the money is, there will be the focus. People are not factors only in relationship to cost and profit. Sound hard, well it is, but only because it is truth. You shall know them by their works. What they do and what they fail to so. The tale of the have and the have not has been written for all to know throughout history and is a most definative part of this age. Good job.
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