It is a truism to say that the latest development in fuel prices, with oil above $130 per barrel, is having far reaching consequences for the world economy. Its most obvious impact is on inflation and a subsequent reduction in purchasing power and consumption. The situation is further aggravated by the attempts of central banks to curb inflation by raising interest rates, putting pressure on the housing market and on personal debt to equity ratios. However, this has happened before in history and economies have found ways to adjust.

More worrying are the issues raised at the recent United Nations Food Security Summit in Rome, where delegates from the world community discussed the global food crisis. It is sad to realise that our insatiable demand for energy is also destroying some of the world’s traditional agricultural systems. With oil prices above $100 per barrel, biofuels are becoming quite a lucrative business. This soaring industry has resulted in the conversion of millions of acres of land previously used for human or animal food production to production of biofuel stock. This has been cited as a key contributor to rising food costs around the world.

The food and economic crises are the claws of the energy scorpion, but the scorpion also has a tail. It is putting our very life on this planet in jeopardy. Our heavy use of fossil fuels is now almost universally seen as responsible for global climate change, which is a significant contributor to the extreme weather conditions occurring around the world. Part of the appeal of biofuels was that it could help limit the environmental impact of our reliance on oil. However, it is turning out to be a less than ideal alternative since it has accelerated deforestation of primary forests, the lungs of our planet. No matter which fuel we use, we are putting the environment and humanity at risk.

When you look for the origins of our current fuel crisis, it becomes apparent that it is caused by our constant demands for more, bigger and better of everything. Oil is the main fuel of our modern lifestyles. It gives us the freedom to travel, whether in planes, yachts or the family SUV. It makes it possible for factories to produce the myriad of toys that decorate our lives. It allows us to build and heat homes that are increasingly large and luxurious. For generations, the luxuries of one generation have become the necessities of the next. And each generation needs more fuel in order to create and maintain these necessities.

This trend has been sustainable for thousands of years. At first, the resources required to support it seemed limitless. Over the past century, we have realized the finite nature of these resources. However, we have still been able to pursue our personal interests and need for fuel even though it might have been at the expense of others. War has increasingly been viewed as an acceptable means of getting the fuel that society demands. The current conflicts in the Middle East are the ones that immediately come to mind, but they are by no means the first. Access to oil was the primary reason that Japan attacked the United States in 1941, causing the US to enter World War II.

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