Even though the world has passed peak oil production, no one in authority ever speaks of it except to deny its existence. They will generally talk about supply and demand, as if oil is renewable and readily available, and infer that the price highs and lows are nothing more than a reaction to the whims of consumers. But over the last 5 years, oil price volatility can be seen much differently. Up until then, a spike in the price of oil would kill demand, causing the price to drop and stabilize, until the next spike in usage. Now, the increase in oil prices still kills demand, but emerging economies soak up every drop of oil consumers in industrialized nations can’t afford to purchase. So, rising oil prices aren’t about killing demand any longer, they are about shifting product.
Governments all over the world have attempted to delay the affects of the non-existent peak oil phenomenon through massive production of biofuel. By buying up grains already harvested, purchasing grain futures, and purchasing land and land rights through grabs, many countries are ignoring the consequences that converting food to fuel will have on poor countries and not so poor countries alike.
But now that’s been bumped up a notch. The Obama Administration has announced an initiative to increase the production of biofuel for its own private use. This plan looks very much like the merger of three major corporations, but is in fact made up of three government departments. The three players are: The Department of Agriculture which will secure feedstocks and ensure that food production is not affected; The Department of Energy which will provide the necessary technology; and The Department of the Navy which will act as the sole beneficiary in this scenario – it will be the only consumer of the new biofuel. The private sector will play a part however. The government will match funds allowing private industry to pick up a few bucks and glean the crumbs that fall from the table.
While the Obama Administration stresses the need for the military to have a strong source of domestic fuel, it will come at our expense. Ironically they’re selling this sham just as all countries do while in the midst of land grabs: Madison Avenue style. They’re promising employment in rural communities, broadband access, education, healthcare and renewable energy in exchange for mass produced biofuel to be used exclusively by the U.S. Navy. Slick sell, yes?
So, let’s look at this. Small, rural areas will have work, broadband access, education, healthcare and renewable energy. (Last time I looked at the menu, every person in this country is already ENTITLED to such gibberish to one degree or another.) In exchange for providing these “neo-luxuries” to the rural poor, the government will receive FUEL. We will continue to experience food shortages and horrific rises in food prices, and the government will receive FUEL. We get empty promises and empty gas tanks, and the government will receive FUEL.
Thank goodness peak oil doesn’t exist! Can you imagine if it did???? I’ve said it before and here it comes again… Gotta love those slick Madison Avenue types. They sell lies and we buy it up as if it were honey right out of the comb.
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