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Hoarding is exactly what the government is doing right now by filling the SPR, and frankly it's the best thing that could happen. It drives prices up. High prices encourage demand destruction. They also finance new well development. The hoarded oil gives us a buffer to fall back on once shortages become more prevalent. High prices are what we need in order to adapt to what's coming, and the sooner they happen, the better.

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Scientists call for halt in grain-based biofuel production
Hydrocarbon AlternativesSome scientists are calling for a moratorium on using grain-based feedstock to produce biofuel to halt the rise in global food prices. Joachim von Braun, head of the International Food Policy Research Institute, told local journalists after a teleconference that if a biofuel moratorium is issued this year, it would lead to a price decline in corn by about 20 percent and wheat by about 10 percent from 2009 to 2010.

In his published paper, Rising Food Prices: What Should be Done?, von Braun blames the rising food prices on a combination of factors, including high oil prices, growing population, change in world population dietary habits and unfavourable climate change. A copy of the paper can be found on the International Food Policy Research Institute Web site.

Rattan Lal, an Ohio State University soil sciences professor, supported von Braun's call for grain-based biofuel moratorium. "We need to feed the stomach before we need to feed our cars," Lal said in an interview with the Associated Press. "We have one billion people who are food insecure. We can't afford the luxury of not taking care of them and taking care of gasoline."

Energy Current

Posted on Wednesday, April 30 @ 04:27:25 PDT by waegari
 
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