GoodFuels

$160 for a barrel of oil?

World oil prices have been on steroids for the past several months.  As oil prices set a record high almost daily, we now learn that if biofuels naysayers had their way, oil, gasoline and diesel prices would be a lot higher.

As it turns out, biofuels like ethanol are far more important to the world fuel market than the Grocery Manufacturers (GMA), OPEC countries and even some in the oil industry would like you to believe.

In a recent report from economist John Urbanchuk, the presence of biofuels around the world is keeping the price of oil 27.5% lower than it otherwise would be!

Just how much is that?  Based on the average price last week, biofuels are trimming more than $35 of the price of barrel of oil.  Without biofuels, the price of oil would be more than $160 a barrel and gasoline and diesel prices would be at levels never imagined.

So, when biofuel critics like GMA and Texas Governor Rick Perry suggest we should reduce or eliminate all together the amount of biofuel we use, they are really suggesting that we should let the price of oil - and therefore gasoline and diesel - continue to go higher.

How does $5 a gallon sound to you?