There's an oil crisis? Maybe I don't understand the term. I hear the price is rising for liquid petroleum fuel products, but in a "free market" economy, that's not a crisis, it's an adjustment. Is anyone with enough money actually unable to obtain oil products?
Oddly, I'm not hearing that the price of petroleum-based plastics is going up. Could it possibly be that now the Saudis no longer have the capacity to be the world's swing producer, that the world oil cartel is manipulating the market for their own benefit? Today I travelled via public transit powered by biodiesel-blend fuel, by electric car, and on foot. Others are content to complain about fuel prices; I would rather do something constructive about it. As for peak food, I'm similarly skeptical. I don't see a lack of product on store shelves here. I am aware that former farmland near here is being consumed rapidly to put up more housing and roads and urban sprawl. Other former farmland is lying fallow, in some cases encouraged by government programs. Our local farmers are still having a hard time making a decent living, so are still exiting the farms to take office jobs. So, having prices go up enough to let them make a reasonable living doesn't upset me. Anyone know the status of rice, grain and other food staples reserves held by various countries around the world? Are those cupboards bare, or are nations hoarding? Apparently there is such a surplus of pork locally that the bottom is fallling out from under the price of that food. Of course, not of much use to Muslims and Jews. However, meat consumption is rising worldwide, and that's got to be a point of demand for grains. My little garden is started in the basement under fluorscent lighting. Looks like it's going to be a good year for tomatoes and a couple of heirloom oddities I am trying for the first time (ground cherries and a variety of musk melon intended for short growing season). Our next "crisis" is going to be fresh water, which seems a bit humourous here in Canada where we have more fresh surface water per capita than any other country in the world. Well, I'm going to try to do something about that too. Not ready to discuss that yet in a public forum, but soon, I hope. Darryl McMahon Keith Addison wrote: > Google News gives 6,293 results for a search for "food crisis", but > only 267 results for "oil crisis", and most of them are about the > 1973 crisis or the "coming" Peak Oil crisis, not this one right now, > though it's the main cause of the food crisis. > > Here's a news comment that discusses the oil crisis: > > <http://www.forbes.com/opinions/2008/03/25/oil-prices-election-cars-oped-cx_jf_0325flint.html> > Backseat Driver > > We Need To Solve The Oil Crisis--Now > > Jerry Flint 03.25.08, 12:00 PM ET > > I am writing this column against the advice and wishes of my editor, > because I believe that America is in danger and we must do whatever > it takes to save the country. My recommendations about keeping oil > prices under control may not be great ideas--or even good ideas. > > My point: As a nation, we need to start thinking about the problem > and preparing ourselves to take drastic steps if necessary. > > First, let me say that the Saudis are right. The climbing price of > oil has nothing to do with the Arabs or oil inventories or even with > supply and demand. This is something new. > > Right now, the world has plenty of oil. Inventories are strong and > industrial activity in the U.S. is slackening. Yet the price has > risen, pushed up by the decline of the dollar and the eagerness of > investors or speculators--hedge funds, pension funds and every other > type of fund. > > The Dow Jones industrial average is 1,700 points below its 2007 peak > and the stock market remains nervous and volatile. The real estate > downturn and the problems with mortgage-backed securities have scared > off investors. The "smart money" is now moving into oil--just as it > has done with gold. > > Understand that the price of gold has little to do with the demand of > jewelers and industrial users of the metal; buying gold is a bet > against financial stability. Gold, at close to $1,000 an ounce, > recently hit a peak in nominal dollars. > > Traditionally, we expect such bubbles, such as oil prices, to burst. > That has yet to happen, even after Congress passed legislation > requiring new-car fuel economy of 35 miles to the gallon in 2020 and > and a huge increase in alternative fuels by 2022. > > I have not heard any of the presidential candidates get serious about > rising oil prices, and I was disappointed in Sen. Hillary Clinton, > who made fun of President Bush because he could not convince the > Saudis to pump more oil. She implied that she could. How? Frankly, I > think it is a bit foolish to push others to step up drilling when we > will not drill for oil in new fields in icy Alaska. > > Maybe we will be back to $80 a barrel or even cheaper by next week. > On the other hand, I am deeply concerned about what would happen to > our economy if oil goes to $200 a barrel. > > Think of it for a moment. Not only would American motorists be paying > much more at the pump, but bills for home heating, air conditioning > and electricity would double. Oil at $200 a barrel would push up the > price of every good and service--from food, airfares and shipping > costs to plastic containers, apparel and asphalt. Under such > circumstances, I would expect to see the government embark on a > massive program of energy subsidies. > > Our currency is another problem, as countries currently pay for oil > in dollars. When the dollar declines, sellers want more dollars to > make up for the loss in its value. We are already hearing rumblings > from oil-producing countries about accepting payment in another > currency, such as the euro. > > All I can do is throw out some thoughts and ask everyone--especially > those aspiring to be president--to start thinking about this problem. > > My first suggestion is that we first straighten out our own financial > house. I propose the old cure: that we stop spending more than we > take in, and that we balance the budget. Our national debt is now $9 > trillion and the annual interest payments are more than $400 billion. > > If this means drastic spending cuts and higher taxes, so be it. This > is an economic crisis. Heck, President Clinton was able to balance > the budget. > > Next, we need to do something about the speculation in oil. Many > experts tell us that we should do nothing, and that whatever steps we > take will make things worse. They could be correct. We are in > uncharted territory. > > A stiff tax on oil profits from speculation sounds leftist, but I > think it is something we should consider. Another option is a high > margin requirement on the purchase of oil futures. Let me make it > clear that I am not against businesses such as airlines using hedging > techniques to protect themselves against sharp swings in oil prices, > because such companies are end users of petroleum products. What I > propose is making the rules tougher for everyone else. > > How about having the IRS do a full-scale income-tax audit of any > commodity trader speculating in oil futures? Do not sneer: The South > Korean government used to do an audit on anyone buying a foreign car. > That stopped the imports. A similar move in the U.S. might curtail > speculating. > > Some say, "Speculators get burned, too. Why not sit on the sidelines > and let the fools bid up oil and then watch it crash? Let the market > take care of itself. It has happened before." I am not sure the > country can wait for this to happen. > > We might need stronger measures for reducing fuel use to show our > determination. For example, going back to a system used in earlier > energy crises that allowed motorists to refuel every other day, > depending on whether their license plates end in odd or even numbers. > > Naturally, we will have to allow oil drilling in some places where > laws currently prevent this from happening. I also think that the > government should enact stronger tax incentives to encourage people > to buy fuel-efficient cars. > > These ideas may not be any good. They might be bad. But at least I am > thinking about the problem. It is about time others began thinking > about it, too. > > _______________________________________________ > Biofuel mailing list > Biofuel@sustainablelists.org > http://sustainablelists.org/mailman/listinfo/sustainablelorgbiofuel > > Biofuel at Journey to Forever: > http://journeytoforever.org/biofuel.html > > Search the combined Biofuel and Biofuels-biz list archives (70,000 messages): > http://www.mail-archive.com/biofuel@sustainablelists.org/ > > > > -- Darryl McMahon Are high energy costs getting you down? The hydrogen economy is not going to save us. Want to know what will? The Emperor's New Hydrogen Economy (in trade paperback and eBook) http://www.econogics.com/TENHE/ _______________________________________________ Biofuel mailing list Biofuel@sustainablelists.org http://sustainablelists.org/mailman/listinfo/sustainablelorgbiofuel Biofuel at Journey to Forever: http://journeytoforever.org/biofuel.html Search the combined Biofuel and Biofuels-biz list archives (70,000 messages): http://www.mail-archive.com/biofuel@sustainablelists.org/
