U.S. points to India, China for oil price hike too
But reacting to the retort from Indian politicians that that US policy of promoting corn-based ethanol has had a bigger impact on world food prices, he said food prices rose about 43 percent over the last year. "Of that portion, an increase in the biofuel production, about 1.5 percent of that, is due to an increase in biofuel production."
"So the fact that we are making more biofuels so we reduce our dependence on foreign energy has an impact, but we believe it is a small impact," Stanzel said.
"... actually, it's the view of the economic advisors that the impact of biofuel production on food price will diminish over time."
Stanzel said a law signed by Bush in December regarding energy put a cap of 15 billion gallons of corn-based ethanol that the US can produce.
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Reader’s comments
Comment 1: It is very easy to blame others when their own house is on fire and are searching for water. It seems they are jealous of other countries prospering and theirs no more.
Why Mr President of USA cannot break cartel of OPEC,does he have guts or courage to do so? They have invaded Iraq and why they can't increase production to break cartel. Why USA along with other countries who are oil producing oil use the same yardstick to OPEC by whatever they are importing form cartel while exporting to OPEC?
Instead of blaming India & China would it not be proper for countries like USA,UK, and others to increase oil production?
Posted by : Jagdish M Shethia - Wednesday, May 07, 2008
Why Mr President of USA cannot break cartel of OPEC,does he have guts or courage to do so? They have invaded Iraq and why they can't increase production to break cartel. Why USA along with other countries who are oil producing oil use the same yardstick to OPEC by whatever they are importing form cartel while exporting to OPEC?
Instead of blaming India & China would it not be proper for countries like USA,UK, and others to increase oil production?
Posted by : Jagdish M Shethia - Wednesday, May 07, 2008
Comment 2: I don't know, why people are so skeptic against US. They are happy about India progressing. Besides, it's law of economics whatever they have mentioned. So take it in a positive manner, rather than cryling like little babes.It's shameful to see politicians making hue and cry over such a matter instead of improving the farming conditions to export rather than import though India is an agricultural country, thereby diverting their mistakes
Posted by : Abeesh - Tuesday, May 06, 2008
Posted by : Abeesh - Tuesday, May 06, 2008
Comment 3: This is ridiculous comment made by white house and there is lot of resources in india, we as a agricultural country we are consumming our own grains from our ground.
You fought with all other country and make the oil price go up and finally diverting the issue to india for food price.
Regards,
krishnakumar
Posted by : krishna - Tuesday, May 06, 2008
You fought with all other country and make the oil price go up and finally diverting the issue to india for food price.
Regards,
krishnakumar
Posted by : krishna - Tuesday, May 06, 2008
Comment 4: US is blaming all other countries to divert the worlds’ attention from unnecessarily hording petroleum in their reserves on a daily basis. China and India are spending for their need, but US is hoarding for their greed :)
Howizzzzzzat :)
Posted by : Om Naidu - Tuesday, May 06, 2008
Howizzzzzzat :)
Posted by : Om Naidu - Tuesday, May 06, 2008
Comment 5: This is another ridiculous comment made by white house. Like always, Mr Bush apparently takes no responsibility in anything that goes wrong. Mr president of USA did exactly what he has been doing all this time from the beginning of his term in white house, "pointing fingers". Being most resourceful (maybe not now) country on planet, only thing USA does is whining. I guess, people of USA got the govt. they deserve. A President that has personal ties with oil producing nations, and a common man wonders what is going on with oil prices.
Posted by : dk - Tuesday, May 06, 2008
Posted by : dk - Tuesday, May 06, 2008
Comment 6: "It is rediculous comment by the US ppl. India and China are producing that much food and eating that much food....What is the problem to the bush...
These ppl are not giving their own money to India or china to feed. These are ppl who are using 1/3rd of oil resources of the world. why can't they think to reduce it. why can;t they think to improve public transport and stop the stupid cars for each person. First the US Gov has to take necessary steps to decrease the use of gas. First look in to your country and then talk about other ppl...."
I'm not sure I understand your comment. The US comment is simply pointing out that world demand for oil is increasing. US demand is of course quite high per capita due to historic reasons: a developed economy and population settlement patterns established after the advent of the private car, coupled with low oil taxes. There's zero tax on imported oil, and it's political suicide to increase the miniscule Federal gasoline tax. The US will be at a disadvantage in a high oil price world and cannot easily reduce it's per captia consumption. This is a competitive advantage for nations like India which don't have ingrained dependence on oil.
As for food, they are simply stating facts. US domestic ethanol production contributes to increased food prices, but the contribution is small. Normal supply and demand is the largest driver. Corn-based ethanol is technically a bad idea, but the US farm lobby prefers it and has virtual veto power over the Congress and President. No political party can unseat the farm lobby which gets substantial subsidies for ... corn. There's not much the average American or their Congressman can really do about the farm lobby - vote against them and you lose the next election.
It's silly to regard the US as hero or villian in this situation. The US is plenty good at making a fool of itself and needs no help in that regard ;-), but the high cost of oil is inevitable as more of the world industrializes. Ultimately we all need to find a set of alternatives for oil to replace it as an energy source. That will be a tough job answered by no one technology.
Posted by : Robert - Tuesday, May 06, 2008
These ppl are not giving their own money to India or china to feed. These are ppl who are using 1/3rd of oil resources of the world. why can't they think to reduce it. why can;t they think to improve public transport and stop the stupid cars for each person. First the US Gov has to take necessary steps to decrease the use of gas. First look in to your country and then talk about other ppl...."
I'm not sure I understand your comment. The US comment is simply pointing out that world demand for oil is increasing. US demand is of course quite high per capita due to historic reasons: a developed economy and population settlement patterns established after the advent of the private car, coupled with low oil taxes. There's zero tax on imported oil, and it's political suicide to increase the miniscule Federal gasoline tax. The US will be at a disadvantage in a high oil price world and cannot easily reduce it's per captia consumption. This is a competitive advantage for nations like India which don't have ingrained dependence on oil.
As for food, they are simply stating facts. US domestic ethanol production contributes to increased food prices, but the contribution is small. Normal supply and demand is the largest driver. Corn-based ethanol is technically a bad idea, but the US farm lobby prefers it and has virtual veto power over the Congress and President. No political party can unseat the farm lobby which gets substantial subsidies for ... corn. There's not much the average American or their Congressman can really do about the farm lobby - vote against them and you lose the next election.
It's silly to regard the US as hero or villian in this situation. The US is plenty good at making a fool of itself and needs no help in that regard ;-), but the high cost of oil is inevitable as more of the world industrializes. Ultimately we all need to find a set of alternatives for oil to replace it as an energy source. That will be a tough job answered by no one technology.
Posted by : Robert - Tuesday, May 06, 2008
Comment 7: It is rediculous comment by the US ppl. India and China are producing that much food and eating that much food....What is the problem to the bush...
These ppl are not giving their own money to India or china to feed. These are ppl who are using 1/3rd of oil resources of the world. why can't they think to reduce it. why can;t they think to improve public transport and stop the stupid cars for each person. First the US Gov has to take necessary steps to decrease the use of gas. First look in to your country and then talk about other ppl....
Posted by : BHAS - Tuesday, May 06, 2008
These ppl are not giving their own money to India or china to feed. These are ppl who are using 1/3rd of oil resources of the world. why can't they think to reduce it. why can;t they think to improve public transport and stop the stupid cars for each person. First the US Gov has to take necessary steps to decrease the use of gas. First look in to your country and then talk about other ppl....
Posted by : BHAS - Tuesday, May 06, 2008
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