Oil and Food
A short opinion from metropolis opinionBlind Fluctuate on oil price has been striking third countries very hard, especially Net Importers from Third Countries (Poor Countries or Developing Countries).
As we know oil is unlimited resources so in front, someday oil supply decline and people will find someone else to replace oil. Many inventions had been done; for example electric auto car, sun-power auto car, nuclear for electric and more. But so far, those new inventions have been proven well but those things are too expensive and seem quite familiar to us. Nuclear is last alternative to replace our oil problems. While nuclear is very cheap; nuclear is very dangerous and must taken careful. So far; nuclear has been installed in rich countries, such as Japan, America, Russia, and Europe.
Newer invention has raised, oil can be replace with plant-oil (I don’t the phrase). The invention had been people replacing their land for food to land for oil. Many farmers have been replacing their land for food to land for oil, because of business. So the impact is food production had run low in recent days. In third countries (poor countries), which have agriculture as their main sectors, in the past is net exporters replace to net importers food.
Finally, in short opinion, to handle oil supply problem in future, plant-oil is good news for us, but we need millions hectares of our land to solve our electric needs, so we reduce our land for food. While the farmers look this as phenomena and good business prospect, food production had been running low. We are hunger now!
While food supply is running low, the price will be higher because of demand is stagnant even upper.
To explain my stupid opinion, let us see the graph below for more understand:
Demand Land for Food decreases because Demand Land for Oil increases
If early demand (allocation) land for oil is Oi and demand oil for Food is Fi, the line C shows number of land (m2). When demand (allocation) oil for land for oil increases, the impact is demand (allocation) land for food will increase. Proportion allocation then move from A to B. Point A shows total productions of both land demand for oil and food. If new equilibrium runs to point B, it means total production food decrease from Fi to Fj
Simple analysis; land for food is decreasing, total production also decreases and supply down while demand is constant (even higher), supply-demand law will work well in here, price for food will increase.
