Commodity Trading Companies Biography
Despite the support, development of corn ethanol, the primary form produced in the United States, remains a work in progress. [4] The net energy balance ratio for corn-based ethanol is currently 1.3, meaning that for every 1.3 units of energy captured, 1 unit of fossil fuel energy had to be expended to grow and harvest the corn, and manufacture the ethanol. Put in a more global perspective, all the corn production in the world, if converted into ethanol, would only supply 6% of global oil demand, reducing fossil fuel emissions by 1%. [4] With current technology, corn ethanol is "basically a way to make cars run on coal and natural gas." [4] Other forms of bio-fuel are more promising; for example, sugar cane and palm oil have energy ratios of 8 and 9 respectively.
Another serious drawback exists as well. Given the spike in commodities prices that occurred in 2007-2008, many critics have wondered to what extent demand for agricultural commodities from bio-fuel production has driven up food prices. In the twelve months preceding March 2008, global food prices increased 43%. [5] Although this had a minimal effect on developed countries such as the United States, where the typical consumer spends less than 14% of income on food, the increases were felt disproportionately in the developing world, where a larger fraction of income is spent on food. In Africa, 43% of income is spent on food, with this percentage ranging as high as 70% for the most impoverished segments of the population. [5]
Commodity Trading Companies Biography
Despite the support, development of corn ethanol, the primary form produced in the United States, remains a work in progress. [4] The net energy balance ratio for corn-based ethanol is currently 1.3, meaning that for every 1.3 units of energy captured, 1 unit of fossil fuel energy had to be expended to grow and harvest the corn, and manufacture the ethanol. Put in a more global perspective, all the corn production in the world, if converted into ethanol, would only supply 6% of global oil demand, reducing fossil fuel emissions by 1%. [4] With current technology, corn ethanol is "basically a way to make cars run on coal and natural gas." [4] Other forms of bio-fuel are more promising; for example, sugar cane and palm oil have energy ratios of 8 and 9 respectively.
Another serious drawback exists as well. Given the spike in commodities prices that occurred in 2007-2008, many critics have wondered to what extent demand for agricultural commodities from bio-fuel production has driven up food prices. In the twelve months preceding March 2008, global food prices increased 43%. [5] Although this had a minimal effect on developed countries such as the United States, where the typical consumer spends less than 14% of income on food, the increases were felt disproportionately in the developing world, where a larger fraction of income is spent on food. In Africa, 43% of income is spent on food, with this percentage ranging as high as 70% for the most impoverished segments of the population. [5]
Commodity Trading Companies Biography
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