According to WhiteHouse.gov:

Anything that comes out of the most powerful person in the world warrant some merit. Now, he hinted “peak oil” many times in his latest conference that “global oil production is not keeping up with growing demand” and “I think we better understand that there’s not a lot of excess capacity in this world right now.“

The full transcript of the conference is found WhiteHouse.gov. This article are featured in Energy Bulletin as well.

…… I’ve repeatedly submitted proposals to help address these problems. Yet time after time, Congress chose to block them. One of the main reasons for high gas prices is that global oil production is not keeping up with growing demand…..

and This

….And so — and then, to your question on the Saudis, look, I have made the case that the high price of oil injures economies. But I think we better understand that there’s not a lot of excess capacity in this world right now. Hopefully high prices will spur more exploration to bring excess capacity on, but demand is rising faster than supply. And that’s why you’re seeing global energy prices rise. And that’s why it’s important for us to try to take the pressure off by saying we’re going to start exploring here at home….

This is more direct Question about peak oil

Question: Mr. President, you just said there’s not a lot of excess supply out there. Some energy experts think we may have already passed or be within a couple of years of passing the maximum oil-pumping capability [i.e. peak oil]. In other words, we may be close to tapping all we’ve got. Do you think that’s the case? And if you do, why haven’t you put more resources into renewable energy research, sir?

THE PRESIDENT: Wendell, we’ve put a lot into ethanol. As a matter of fact, the solution to the issue of corn-fed ethanol is cellulosic ethanol, which is a fancy word for saying we’re going to make ethanol out of switchgrasses, or wood chips. And we’re spending a lot of money along those lines.

But energy policy needs to be comprehensive. And we got to understand we’re in a transition period. The problem is there’s been a lot of focus by the Congress in the intermediate steps and in the long-term steps — the long-term steps being hydrogen; the intermediate steps being biofuels, for example, and researching the biofuels, and battery technology — but not enough emphasis on the here and now.

And so you ask — you say that people think we can’t — there’s not any more reserves to be found. Well, there are reserves to be found in ANWR; that’s a given. I just told you that there’s about 27 million gallons of diesel and gasoline that could be — from domestically produced crude oil that’s not being utilized. And not only that, we can explore in environmentally friendly ways….

This latest conference held today shown that the president of United States knows about “Peak Oil” and are desperately want to solve it. This is a clear sign for many that Peak Oil is acknowledged but what will be the “magic wand” to solve this pressing global issue?

Time will tell, but what will YOU do?

Oil prices had fallen since yesterday from near $119.93 to current mid-$115 with the ending of strike in Scottish refinery and a rebound in the USD also contribute to the fall of oil prices.

These few great news did contribute to a “cheaper” price for oil and in comes the speculative segment of the market that follows the Weekly US Oil Inventory Report is due today may capture the moment and make the oil prices either even lower….or spike it up to another record.

For the spike to happen, some news about more tension in oil producing region like Nigeria or Iran can do the trick or maybe some new strikes in refinery may be the soar point. Any loss in oil production figures in the US inventory reports too may add fuel to the fire.

Well, lowering the oil prices may help keep the inflation in check but may temporary burn some commodities that move along the same “fluctuation” as oil.

My prediction is this drop in oil prices may be temporary and may spike up soon, either today or next Wednesday. (Disclaimer: I am not responsible to any loss of money, property, life in any event of you following my crystal ball prediction)

According to theage.com.au:

MARIKO Watanabe admits she could have chosen a better time to take up baking. This week, when the Tokyo housewife visited her local Ito-Yokado supermarket to buy butter to make a cake, she found the shelves bare.

“I went to another supermarket, and then another, and there was no butter at those either. Everywhere I went there were notices saying Japan has run out of butter. I couldn’t believe it — this is the first time in my life I’ve wanted to try baking cakes and I can’t get any butter,” said the frustrated cook.

Japan’s acute butter shortage, which has confounded bakeries, restaurants and now families across the country, is the latest unforeseen result of the global agricultural commodities crisis.

A sharp increase in the cost of imported cattle feed and a decline in milk imports, both of which are typically provided in large part by Australia, have prevented dairy farmers from keeping pace with demand.

While soaring food prices have triggered rioting among the starving millions of the third world, in wealthy Japan they have forced a pampered population to contemplate the shocking possibility of a long-term — perhaps permanent — reduction in the quality and quantity of its food.

A 130% rise in the global cost of wheat in the past year, caused partly by surging demand from China and India and a huge injection of speculative funds into wheat futures, has forced the Government to hit flour millers with three rounds of stiff mark-ups. The latest — a 30% increase this month — has given rise to speculation that Japan, which relies on imports for 90% of its annual wheat consumption, is no longer on the brink of a food crisis, but has fallen off the cliff.

According to one government poll, 80% of Japanese are frightened about what the future holds for their food supply.

Last week, as the prices of wheat and barley continued their relentless climb, the Japanese Government discovered it had exhausted its ¥230 billion ($A2.37 billion) budget for the grains with two months remaining. It was forced to call on an emergency ¥55 billion reserve to ensure it could continue feeding the nation.

“This was the first time the Government has had to take such drastic action since the war,” said Akio Shibata, an expert on food imports, who warned the Agriculture Ministry two years ago that Japan would have to cut back drastically on its sophisticated diet if it did not become more self-sufficient.

-This is a ripple effects of both high oil prices and climate changes, let’s think alternative quickly.

According to Channelnewsasia

SINGAPORE: It would be a quick-acting pill to assuage the headache of rising food prices for the needy: Distributing vouchers redeemable at supermarkets and other food retailers.

But is a nationwide food voucher scheme — a possibility alluded to by the government when it announced that a $1-million scheme was on the way to help with rising food costs — the best stop-gap measure?

Community leaders say it is likely to be the best measure, although certain troubling questions will have to be addressed.

Food vouchers — usually from supermarkets such as NTUC FairPrice — are already disbursed by Community Development Councils (CDCs) and other groups to families on public assistance.

A scheme at the national level would bolster such grassroots efforts and provide immediate if short-term relief, some say.

North East District Mayor Zainul Abidin Rasheed told TODAY: “It would be more comprehensive and thorough, and it will assure residents all over Singapore access to the same value of help.”

It would also be a rare, direct form of assistance from the government to deal with food costs, as opposed to more indirect measures such as GST credits. But who should get help and how much?

Member for Parliament (MP) Zaqy Mohamad of Hong Kah GRC said: “We already provide food vouchers to the lower-income group, so my question would be whether the criteria would include the lower-middle income group, who are also struggling with the higher costs.”

Adding that he has seen requests for financial assistance go up over recent months among both the low and lower-middle income groups, Mr Zaqy said: “Since these are extraordinary circumstances, perhaps the solutions need to be broader and more creative.”

MP Fatimah Lateef (Marine Parade GRC) said she has seen cases of those needing help go up from ten to 12 cases a month in 2006 to about 20 cases a month this year.

South West District Mayor Amy Khor stressed the “one-off” nature of the proposed assistance. Even so, would a handout of food vouchers, while seen initially as a gesture of government goodwill, lead to a sense of entitlement among Singaporeans during tough times?

Sociologist Tan Ern Ser, from the National University of Singapore, said: “Singaporeans could come to expect welfare to help them overcome financial challenges.”

But since the amount given out in existing financial aid schemes “is relatively small, and the process of means-testing stringent, I doubt such measures would be enough to inculcate a handout mentality“, he added.

“I believe the government would prefer this to be only an interim measure since the preferred approach is really to create well-paying jobs and enhance employability through skills re-training and upgrading.“

Mr Zaqy agreed, saying: “It will be very important to manage expectations upfront and make clear the terms of the assistance. Even what you name the scheme will be important.”

Alternative solutions beyond food vouchers could further encourage Singaporeans to switch to cheaper brands of what they currently consume, said Prof Tan.

Others also point out the need to safeguard the scheme against potential abuse.

“The thing about vouchers is that they are transferable, so you get these cases of people selling them for cash and using the money to gamble,” said Bo Tien Welfare Services Society honorary secretary Benny Chua, whose organisation assists CDCs in food distribution. “Also, people might use the vouchers to buy liquor and cigarettes.”

Nonetheless, given the circumstances, such assistance cannot be held back, said Mr Zaqy. “In the end, it’s where the need is and whether you achieve your objectives.”

- I do hope the relevant authorities look into the following.

1. Possible fake vouchers appearing
2. Possible uneven and unfair distribution of vouchers

Isn’t FREE upgrading courses even more valuable to low income workers? Why not make a heavily subsidized upgrading courses for the low to middle income workers?

The cost of everything going up so hopefully the vouchers can be transferable and be sold openly in the internet and market as CASH is always better.

Thanks Lowem for the tip off!

According to Bloomberg:

April 21 (Bloomberg) — Government of Singapore Investment Corp., the sovereign fund that has invested about $18 billion in UBS AG and Citigroup Inc. since December, said the world economy may be headed for its worst recession in three decades.

“We could be facing a recession which is longer, deeper and wider than any recession that we have encountered in the last 30 years,” Tony Tan, deputy chairman of GIC, as the company is known, said in a speech to more than 500 employees in Singapore today.

Tan said GIC, which oversees more than $100 billion, faces its “most challenging years” since being founded 27 years ago, as the global supply of credit contracts. His remarks come as the fund considers investing more in UBS, which is reeling from $38 billion of writedowns.

The banking industry will probably be the worst affected by a global recession, said Guy de Blonay, a director at New Star Asset Management Ltd. in London, which manages $1.2 billion in financial stocks.

“You cannot rule out the possibility of an operating environment for banks taking a sharp turn for the worse,” he said. “Indeed, history suggests that a deep banking crisis is not over until the sector has been subject to broad re- capitalization and management shake-ups.”

The International Monetary Fund this month changed its forecast for global economic growth to 3.7 percent for 2008 from an earlier projection of 4.1 percent. It also said there’s a 25 percent chance of a world recession, citing the worst financial crisis in the U.S. since the Great Depression.

`Extreme Uncertainty’

The reduction was the third by the Washington-based lender since July, when it predicted the world economy would cope with the U.S. credit squeeze and grow 5.2 percent this year.

GIC, set up in 1981 as the government’s fund manager for Singapore’s foreign reserves, has earned an annual average 9.5 percent since its inception, it said two years ago at its 25th anniversary.

Tan, 68, told his employees that they’re entering a period of “extreme uncertainty” in the world economy and global financial markets.

“The next years may well be among the most challenging years for GIC since our establishment,” Tan said. “As banks continue to deleverage, cutting down on their lending activities and causing contraction in credit supply, the prospects for the U.S. economy and possibly even the world economy are fraught with considerable downside risks.”

Citigroup, UBS

Citigroup, the biggest U.S. bank, and UBS are two of the hardest-hit companies by the collapse of the subprime mortgage market. Citigroup on April 18 posted a $5.11 billion first- quarter loss on almost $16 billion of trading writedowns and increased bad loan reserves, and cut 9,000 jobs.

UBS on April 1 said it will seek 15 billion francs ($15 billion) on top of the $13 billion it already raised from GIC and an unidentified Middle Eastern investor. GIC owns rights to acquire stock with 9.5 percent of its voting rights.

GIC said this month it will examine the terms of UBS’s rights offer before deciding on whether to participate. The dilution to shareholders and those holding UBS’s mandatory convertible notes from the rights offer is a “necessary step,” GIC said at the time.

Tan today defended funding Citigroup and UBS, saying the investment is “long term” that will yield returns when markets stabilize.

GIC, which doesn’t publish financial statements, aims to achieve a rate of return exceeding the average inflation rate in the U.S., Japan and Germany, according to its Web site. Its average rate of return over global inflation was 5.3 percent per annum since 1981, the fund said two years ago.

-This is not a surprise coming from our Government as me and my friends who believe in peak oil knows all along. Is it time you invested in your own sustainable environment?

Thanks Lowem for this article tip off