by John M. Curtis
(310) 204-8700

Copyright March 11, 2007
All Rights Reserved.

ighlighting his Latin American tour, President George W. Bush became “best friends” with Brazilian President Luiz Inacio da Silva, whose country has kicked its nasty fossil fuel habit, now running 80% of its internal combustion engines on sugarcane-based ethanol. With demonstrators torching cars and protesting Bush's arrival, it was welcomed territory compared to the U.S. where only 35% of citizens approve his job performance. Bush's low approval ratings, largely due to Iraq, parallel those of presidents Lyndon Baines Johnson during Vietnam and Richard Nixon at the height of Watergate. His Latin American tour provides needed cover for a presidency under siege, running south of the border deep into the Southern Hemisphere. Diverting attention to Brazil's biofuel industry helps Bush camouflage his open invitation to the oil industry to fleece the American public.

      U.S. pump prices skyrocketed during Feb. 2007, rising in some areas 30%, while oil prices hovered around $60 a barrel, far lower than its ‘06 peak of $78. Consumers can't figure out why pump prices jump when oil prices rise, while not fallling when oil prices decline. ExxonMobil and ChevronTexaco recorded the biggest profits in U.S. corporate history for Q-4 2006, proving at least one U.S. industry gets preferential treatment. With Bush at the helm, the oil industry has a green light to gouge consumers, injecting inflationary concerns into the economy. Bush's embrace of biofuels gives the latest smokescreen for the oil industry to continue manipulating markets and exploiting consumers. Energy drives the economy by providing the fuel needed to deliver goods and services. When energy prices go through the roof, one industry benefits while the economy suffers.

      While there's nothing wrong with developing more renewable energy like ethanol, there's something very wrong with the oil industry taking advantage. Contrary to popular belief, there's no shortage of fossil fuels, even with growing demands in densely populated countries like China and India. Oil companies exaggerate spiraling demand and shortages to raise prices. Bush's attempt to tout biofuels blows same smoke, allowing the oil industry to justify unwarranted price increases. “It makes sense for use to collaborate for the sake of mankind,” Bush said with Brazil's Silva at his side. We have a bright and real potential four our citizens being able to use alternative sources of energy that will promote the common good,” referring to the “green” or less toxic effects of biofuels on the environment. Bush has come under increasing pressure to reduce fossil fuel pollution.

      It's beyond ironic that Iran's President Mahmoud Ahmadinejad used the same “green” argument to advance his drive for nuclear power. Iran has refused to suspend its uranium enrichment program, asserting its rights under the Nuclear Non-Proliferation Treaty to develop peaceful nuclear technology. Nuclear energy produces none of the greenhouse gasses, or carbon dioxide emissions, that contributes to global warming or climate change. Enriched uranium can be used for generating power or making A-bombs, something the U.S.—and its allies—suspects is behind Iran's enrichment program. Ahmadinejad has no interest in growing corn or sugarcane to develop ethanol. Bush's interest in Brazil's biofuel industry makes good PR and provides great cover to his ties to the oil industry. Whether it's gasoline or ethanol, drivers and businesses feel pain at the pumps.

      Unlike Hugo Chavez's Venezuela, Brazil doesn't possess the mineral wealth to manage its energy needs. Sugarcane provides Brazil an abundant crop from which to extract ethanol, much the same way the U.S. uses corn. While ethanol doesn't have the same energy efficiency as gasoline, it doesn't produce the dreaded greenhouse gasses. Unlike corn, sugarcane is not used to feed livestock and has no effect of driving up meat prices. Ethanol producers don't compete for the same grain used to feed cattle. “Bush and his pals are trying to control the production of ethanol in Brazil, and that has to be stopped,” said Suzanne Santos of Brazil's Landless Workers Movement, believing Bush's secret agenda seeks to set up an OPEC-like cartel for ethanol. Bush sees potentially lucrative ethanol markets in the Western hemisphere, competing with Chavez's oil monopoly.

      Developing biofuels shouldn't give the oil industry cover to fleece business and consumers. There's no excuse for the oil industry to profit at the expense of consumers and virtually all other businesses hooked on fossil fuels. Bush's new love affair with ethanol can't hide his ties to the oil industry, giving oil companies the green light to gouge consumers and U.S. industry. While sugarcane flourishes in Brazil, there's only so much corn that can be taken away from the cattle industry before corn prices go through the roof. Alternatives to corn-based ethanol, like switch grass, are years away from development, requiring massive government subsidies. For the foreseeable future, the economy is still dependent on fossil fuels. Instead of allowing the oil industry to harm the economy, Bush should be lecturing oil companies to act more responsibly and show some restraint.

About the Author

John M. Curtis writes politically neutral commentary analyzing spin in national and global news. He's editor of OnlineColumnist.com and author of Dodging The Bullet and Operation Charisma.

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