Increased world demand for grains and vegetable oils due to population growth (esp. in China and India), the weak dollar, agricultural production problems around the world, and $100/barrel oil are some of the driving factors accounting for increasing food prices.
After covering 22 of the most popular myths about biodiesel, I realized I’d only given lip service to a major issue: increasing food prices. In Myth #2, I mentioned that the goal of biodiesel production is to move away from food-based feedstocks.
But until that happens, the question remains: if I use biodiesel made from soybeans right now, am I contributing to the larger problem of increasing commodity prices and starving poor people?
How much does business-as-usual cost? This morning, Green Car Congress reported that the US is projected to pay $440 billion for imported petroleum in 2008:
The increase to the estimated $440 billion for 2008 is based on an average $90 per barrel crude oil price for the year. In 2002, before the current bull market for oil began, US oil imports cost less than $103 billion. The preliminary figures for last year came to some $327 billion.
With little prospect for cheaper gas prices in the future, any decrease in the US export bill will have to come from a reduction in petroleum usage.
Which brings to mind two important questions:
- What percentage of our Gross Domestic Product will the US have to export before things start to change dramatically?
- Where is all this money going, anyway?
While gasoline prices continue to inch upward, the U.S. still enjoys some of the cheapest fuel in the world. FastCompany.com put together a list of world gas prices that could make you feel better about $3 per gallon gas.
Country and Price per US gallon:
Norway $ 8.67
Netherlands $ 8.52
Belgium $ 8.36
Germany $ 8.06
United Kingdom $ 7.91
Italy $ 7.68
France $ 7.46
