Tuesday, May 13, 2008

Battle Between Two P

This year can be consider as the battle between two P, petrol and palm oil. Petrol and palm oil are both essential in today's life because both can be consider as the medium to enhance power by moving the cars and running the factories. Petrol extracted rawly from the underground and biofuel is extracted from palm oil.

As prices of petrol increasing rapidly this year, with a shocking $120.00 per barrel and according to the economic research, the price might goes on until it can reached $200.00 per barrel! Demand for this source is still high and the source itself is shrinking within the years. Malaysia will have to import 100% petroleum in 2014 (estimation)

Palm oil, at the other hand has an increase in demand and interest as more people realize the potential of this plants. Many researches have been conducted to find ways to extract more fuel elements and increase the manufacturing. As prices of petrol increase, palm oil value prices also increase and becomes stable.

Unfortunately, the two P have clashed on a bad year. As inflation attacks the whole world, the price of petrol increase hence people are demanding a solution which is biofuel from palm oil. The number of demand increases and farmers change their plants to palm oil plantation. At the same time, world is having its global starvation tsunami.

Food is not enough and by the incoming of natural disaster, it is almost impossible to coupe with everything. Myammar and China, the food productions countries have their own problem, natural disaster. Food production collapse and becomes worse as the number of food plantation decrease due to biofuel demand.

The world has become imbalance especially between the two P. Both have its own benefits and weakness or disadvantages. For now, we can only pray for the better day ahead.

P/s : Nissan has announced their electric cars will be sell under commercial price, that's a relief to mother nature :)

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