Oil World An economist who makes his living forecasting the future of oils and oilseeds says that the supply of fats and oils in the world is not enough to keep pace with demand. According to a Bloomberg article, Thomas Mielke of Oil World says that between the increasing demands for both food and fuel, “There is a supply-demand deficit that is slowly worsening and the real impact is still to come.”
Mielke specifically addresses the use of products such as soy oil and palm oil for biodiesel and corn and sugarcane to make ethanol. “We cannot solve energy problems with oils and fats,” Mielke said. “If you look at five-year accumulative demand trends starting 1981, there has been an alarming acceleration in demand for the world’s 17 major oils and fats. There’s going to be more and more competition for new acreage from grains and sugar for oilseeds.”
So, either we have to grow more, use less, or find other sources.