Food Is Fuel, Rising Food and Energy Costs Triggering Uprisings
Mar 16, 2011
How is the bowl of Wheaties you ate this morning linked to a barrel of oil? In this exclusive interview with The Energy Report, Bob Moriarty, founder of 321energy.com, explains why the cost of producing food is directly correlated to fuel and picks which companies are poised to benefit from the rising value of potash.
The Energy Report: You wrote that “the uprising in Egypt began as a protest against the rapidly rising cost of food and energy.” You went on to say that “it seems obvious that food and fuel are the same thing under a different cloak. Energy is food is population.” Can you elaborate?
Bob Moriarty: Anyone who wants to verify this should search Google for a chart of population growth compared to oil production. The two are identical from about 1850 on. Here’s why: it takes so many calories of fuel to produce so many calories of food. It’s direct, linear and absolute. If the price of fuel doubles tomorrow, how much more or less driving would you do?
TER: Less, but I would still have to drive. I could not eliminate it.
BM: Would you eat more food or less food?
TER: I could eat less given the price.
BM: Everyone else in the world feels the same way. The majority of people in the world survive on $2 worth of food each day. But how do you eat less when you are on the edge of starvation in the beginning? There has been a 70% increase in the price of wheat since June. That’s catastrophic.
I believe that peak oil, or the peak of oil production, occurred back in 2005 or 2006. Peak oil means peak food, which means peak population. We’re going to consume less fuel per capita 20 years from now because there’s simply no alternative. In turn, that means the population is going to decrease. It could decrease through starvation, disease, war or all three.