January 19, 2008

An Oil Quandary: Costly Fuel Means Costly Calories - New York Times

Are we faced with the law of unintended consequences as the demand for vegetable oils for fuel confronts the food uses of oil, thus raising prices for both? When the world's thirst for liquid energy sources competes with food uses, we have the makings of a catastrophe.

This is a fascinating analysis of the dilemma faced by poorer countries when prices of, in this instance palm oil, rise very rapidly because of demand for it to make biofuels.

The pressure on poor people will have disastrous consequences, not to mention the trauma to the land as more forests are cleared to plant palm oil trees. Food seems more important than energy, but at what price to we have conflict or starvation?

I expect to hear/read more environmental hand wringing spawned by this situation. The world's insatiable demand for energy is running headlong into an even more basic necessity, food. There are no obvious good solutions here.

Perhaps the world's gurus will have this on their agenda in Davos, Switzerland later this month. I doubt they have a solution.

An Oil Quandary: Costly Fuel Means Costly Calories - New York Times

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