March 25, 2011

Podcast: $100 oil is back, impacting everything we buy

In this podcast, Joel Grams, a farmer from Minden and member of the Nebraska Corn Growers Association, talks about $100 oil and how such a high price impacts a lot more than just gas prices.

"Oil companies are essentially printing money again," Grams said, nothing that they've never had a difficult time making a buck considering they have a lock on our energy market and get billions and billions of dollars in subsidies and tax credits that are written into long term tax policy.

Grams noted that if oil prices average about $100 this year, we’ll be spending $385 billion on imported oil this year, $80 billion dollars more than last year. "Certainly sending an extra $80 billion out of this country will have a negative impact on our economy," he said. "We also have to remember how high oil prices impact everything we buy. We learned that a few years ago, too."

In the previous oil price run-up, ethanol helped to keep energy costs down and reduce our reliance on oil imports. It's also good for the country's economy. Ethanol has helped rural America avoid the worst of the recession and be the first area to emerge, Grams said.

Nebraska Corn Kernel podcasts are also available on iTunes! Click here to subscribe.

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