HIGH OIL PRICES: A REAL DRAG ON THE ECONOMY
This week, Newsweek Magazine asked their Business Roundtable of experts such as Larry Lindsay, Robert Rubin and Bob Lutz to weigh in on the recent downturn in the U.S. economy. One of these experts, co-founder of AOL and chairman of Revolution LLC, Steve Case, flatly stated, “Rising oil prices are having a significant impact on our economy.”
It is no secret that oil prices are putting a real damper on the economy and are driving up the cost of everything from steel, rubber, and aluminum, as well as that daily Starbucks caffeine fix many of us crave in the morning.
Oil prices may be sky high, but they could be a lot higher if not for increased ethanol production. Ethanol is cutting over 140,000 barrels of oil imports every day in the U.S. and according to experts at Merrill Lynch, ethanol is helping to keep gasoline prices and oil prices 15-27 percent lower than they otherwise would be.
Ethanol production — both corn and cellulosic — are key components to a diversified solution to America’s energy problems. In order to completely eliminate our dependence on foreign oil we must continue to invest in new technology and expand alternative fuel solutions.
Source:
“We Ask: When Will the Pain Go Away?” Newsweek Magazine, June 16, 2008.
