Thursday, May 15, 2008

Agrifuels to compete with Oil Price and battle inflation


I cannot believe how long it is taking the world to move to Agrifuels. Globally we are concerned about inflation and the major contributor to this cost is the price of oil.

Fuel outside of water is probably the most mission critical item we use in the world today. Every mode of transport relies on fuel. The manufacture and production of every item we use relies on fuel. Economies of the world are in total turmoil as we face the turmoil of dealing with inflation. We shift interest rates, we lay off staff, and we put the blame on the consumer. How well has the plot of the oil companies and the oil rich nations of the world brought us to our knees, and what do the economists do blame the consumer and penalise the consumer and make his/her life a bigger misery.

Oh we are extremely alarmed at the cost of food and the farmers of Australia are dieing because the farm gate prices barely justify their task. Having said that recently when trying to challenge the big retail buyer’s price control mechanisms the hearing begged the farmers to bring their evidence. Where are the advocacy groups when the hearing begs them to present their case?

Food prices, why are they so high? It is pretty obvious really, the primary producer uses fuel, transport to the processor uses fuel, transport to the market uses fuel, we use fuel to get to the market place the whole process uses fuel.

Ok my point! Oil prices have increased by 600% with the majority of that hike having occurred over the last five years. You would have to say it is absolutely amazing that inflation has been held in check to the degree of still being in the 3% to 4% range when this critical commodity price has jumped so emphatically. But oh know the economists in their doom and gloom set about belting up the consumer.

The answer really remains simple – Agrifuels. In a country where the canegrowers are hurting and ethanol is such a magnificent bi-product for them, where vegetable seed oil crops are readily grown (canola being a good example as it is an ideal rotational crop for our wheat growers – but there are many others worthy of consideration) bio-fuels, Agrifuels are an obvious solution. I will guarantee when a viable competitor for mineral oil is promoted the price will immediately reflect the competition.

So who is blocking the development? The car manufacturers of Europe sure are not. Mercedes Benz, BMW, Audi, Volkswagen just to name a couple of minor manufacturers all have diesel versions of their cars which today are performing exceedingly well. Even Holden in their non-anniversary anniversary announcement declared they are designing a new diesel engine for the Astra (funny what ever happened to the diesel Gemini of the ‘70’s). So we are being held to ransom by who OPEC? , the Oil Companies?, the Oil Producing Countries?

C’mon Aussie – lets get about producing Bio-fuels and take the market into a competitive product that will see Oil Prices tumble and a cleaner better environment. Someone please explain why is it taking so long?
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