Time's up for petrol cars, says GM chief

Joshua Dowling Motoring Editor in DetroitJanuary 15, 2008
THE world's biggest car maker, General Motors, believes global oil supply has peaked and a switch to electric cars is inevitable.
In a stunning announcement at the opening of the Detroit motor show, Rick Wagoner, GM's chairman and chief executive, also said ethanol was an "important interim solution" to the world's demand for oil, until battery technology improved to give electric cars the same driving range as petrol-powered cars.
GM is working on an electric car, called the Volt, which is due in showrooms in 2010, but delays in suitable battery technology have slowed the project.
Mr Wagoner cited US Department of Energy figures which show the world is consuming roughly 1000 barrels of oil every second of the day, and yet demand for oil is likely to increase by 70 per cent over the next 20 years. Some experts believe the supply of oil peaked in 2006.
The remaining oil reserves are deeper below the Earth's surface and therefore more costly to mine and refine.
"There is no doubt demand for oil is outpacing supply at a rapid pace, and has been for some time now," Mr Wagoner said. "As a business necessity and an obligation to society we need to develop alternative sources of propulsion."
He added: "So, are electrically driven vehicles the answer for the mid- and long-term? Yes, for sure. But … we need something else to significantly reduce our reliance on petroleum in the interim."
GM is so convinced about ethanol it has signed an agreement with a supplier that claims to have come up with a way of producing ethanol that is cheaper and more efficient than refining oil. The supplier claims it can produce ethanol from "almost any material" such as farm waste, municipal waste, discarded plastics - even old tyres.
The car industry has had a love-hate relationship with ethanol, which is most commonly derived from crops such as corn, wheat and sugar cane. At first, car makers criticised ethanol-blended fuel because most vehicles weren't compatible with it. Then car makers changed their tune and embraced ethanol-blended fuel after retuning engines to suit the new mix.

INDONESIA TO IMPORT 200,000 TONS OF SUGAR IN 2008

JAKARTA, Jan 04, 2008 (AsiaPulse via COMTEX) -- Indonesia's government plans to issue a license for the import of 200,000 tons of sugar this year to strengthen buffer stock, an official said.
The stock will be enough if the harvest takes place as expected, said Trade Minister Mari Elka Pangestu.
Ms Pangestu said as of December, 2007 stocks totalled 1 million tons, enough to cover consumption for 5 months.
Earlier, the Indonesian Sugar Council (DGI) recommended not importing sugar this year, but Ms Pangestu said imports are needed to secure stock in the event of a delay in harvest.
In 2007, the trade ministry issued a license for the import of 250,000 tons of sugar.

Corn Market Recap for 1/2/2008

2 Jan 2008
March Corn finished up 7 at 462 1/2, 7 off the high and 6 1/2 up from the low. December Corn closed up 6 3/4 at 480 1/4. This was 6 3/4 up from the low and 7 1/4 off the high.
A sharp break in the US stock market and a surge to new all-time highs for crude oil set the stage for an impressive rally in the grain markets today. International money managers appear even more attracted to Agricultural markets with so much uncertainty in financial markets. A rally of nearly $3.00/barrel for crude oil and $20 for gold helped spark aggressive speculative buying across all of the grain markets which helped spark the early run to new contract highs and to the highest level for nearby corn futures since July of 1996. New crop December corn moved as high as 487 1/2 early in the session. The market is finding some fundamental support from an uncertain weather outlook for the drier areas of Argentina and from news of export tariffs for China corn. Traders see news that China is taxing exports as further evidence that US corn export demand should remain strong. Gains may have been limited by general fears that producer selling could increase on the move to new highs into the new tax year. Midwest cash basis levels were said to be weak at some locations as the new high may have attracted some increase in producer sales. Nearby corn futures posted gains of 16.7% for all of 2007.
March Rice finished up 0.42 at 14.285, 0.015 off the high and 0.145 up from the low.