Oil Prices Soaring; Hops Shortage Threatens Beer Production
It’s hard to say which is more concerning to the average American: the price of oil nearing $100 per barrel, or a hops shortage portending a dramatic increase in the price of beer…
As the price of oil rises to stratospheric levels, it’s a bit curious to me why the price of gasoline hasn’t kept pace. A year ago, when oil was trading in the sixty dollar range, consumers were paying close to $3 / gallon of gasoline. Today, with oil prices trading near $100 / barrel, drivers are still paying roughly $3 / gallon for gas. So, where’s the disconnect between the price of the raw material (oil) and the refined product (gasoline)?
Or, are we in for a major price shock shortly? I honestly have no idea. I quit trying to make sense of oil markets a long time ago. It is interesting to note, though, that in reporting the news of price spikes today, ABC World News Tonight anchor Charlie Gibson all but implied that the world has hit ‘peak oil’ - and that supply is unlikely to keep up with demand in the coming years.
Speaking of supply and demand, I ran into a very disturbing article tonight. Not only is oil production down, but so is hops production, and this could make for some very steep price hikes in the cost of your favorite brew (particularly for those who gravitate to craft brews, rather than the AnhauserBuschCoorsMiller swill). And, if you’re a homebrewer like ASZ’s good friend Brendan, the price shock and availability of premium hops varieties is likely to be even more pronounced.
It’s long been said that as long as Joe Sixpack has his beer available at a reasonable price, and as long as American Idol still plays on our TV screens, the average ‘murican just doesn’t give a shit about much of anything else. We’re all so worn out from makin’ the nut that, for most people, politics and world affairs are little more than background noise.
With the convergence of peak oil and peak beer, combined with the Screewriters Guild strike, Mr. Sixpack might actually become engaged in more worldly concerns, just in time for the 2008 elections.
I’m not such a big fan of beer, but we’re all big fans of petroleum (seeing how our civilization is completely dependent on it). Perhaps its time for the American government to slap a big federal tax on petroleum, which should help to curtail demand.
Rich, you hit the nail on th head. I was in home Sweet Homebrew last night and they were practically out of hops. They don’t have enough to get through XMas. It’s because of the drought in europe and the pacific northwest (which as you know isn’t known for it’s arid climate). yay climate change!
on top of that the price of oil makes the plastic that malt syrups is hipped in more expensive.
And the new reliance on corn for enthanol means less farmers are planting barley.
And furhtermore the price of soda ash, used to make glass, has alos gone up, so even the bottles themselves cost more money.
I’ve been worried sick ever since. I don’t want to live in a world without beer.
As if that’s not enough, in Mexico, farmers are torching agave fields to make room for corn. Currently, just the low-end stuff, but…. And the price of grain overall will put a pinch on distillers of all stripes.
Then there’s water issues.
As a starving artist, I switched to drinking whatever beer was on sale a long time ago.
But this is getting to outragous. I’m hoping my wife will take a third job to keep me in beer.