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 George Bush, a former oil business-man, told the American people that the new goal is to substitute 75% of the oil used from unstable areas of the world for alternative sources of energy. According to the site BBC Brazil, the American President also praised Brazil for its ongoing program of alternative solutions, during a speech about economy he delivered in Sterling, Virginia.
Bush mentioned that in Brazil an enormous quantity of energy was derived from sugar cane and the cars could be easily converted to use either gasoline or alcohol. And the President talked about how the US needs to use diversified sources of energy. This is, in fact, very little, considering that less than 20% of the oil used in the US comes from the Persian Gulf, and the US biggest suppliers of oil are indeed Mexico, Canada and Venezuela. These numbers could be an indication that maybe the American President is not really considering the subject very seriously, but nonetheless for the first time the subject was brought about in this fashion by an American President. While the President was making his public speech, without really showing the extent of his intentions, Larry Page and Sergey Brin, the Google kids, were already in Brazil, in an unexpected visit unannounced, as the Brazilian press wrote, even to their Brazilian staff. The Google founders were in Davos, Switzerland, for the Economic Forum, where they headed to learn more about sustainable energy programs. After attending some conferences and getting information, they found themselves flying straight to Brazil, eager to see personally all they had heard about the sugar and alcohol plants in São Paulo. They were in good company, with Luiz Fernando Furlan, the Brazilian Minister for Industry and International Commerce. After a stop in Rio for some socializing, Brin and Page wanted to visit Cosan, one of the biggest alcohol plants in Brazil, and their interest made people wonder. At this point in their lives, they would not spend time researching anything that they do not intend to put to use and profit. After the visit they headed for the University of Minas Gerais, where Akwan Information Technology was born and bought by Google in 2005, and where they said they would like to start a Center for Research and Development for Latin America. This only shows why two young men, like Brin and Page became billionaires so quickly. The very day the President of the US talks about preparing to use ethanol until 2025, they were right there, visiting alcohol plants in São Paulo. The New York Times pointed that week, after Bush's speech, that Brazil had discovered how to take its citizens to work in vehicles that move without much gas. The Google men showed interest in the production of ethanol, but did not make any commitments, not yet anyway, although, according to O Globo newspaper, they did show interest in production during their visit to Cosan. This was Brin and Page's first visit to Brazil, a country that has showed good results for Google, with a growth of 82% in the last three months alone and they have come to Brazil moved by a different interest. Maybe Google, the biggest Internet search company whose founders and owners are worth at least US$ 11 billion each, will start a completely different business, dealing with a more intelligent way to produce energy. And a new trip to Brazil, the country that has proved itself with its alcohol program, has already been scheduled, according to Brazilian newspapers. They can afford buying as many plants as their hearts desire. But will they? The answer to this question is more likely to be yes. Competition in the business is expected to grow with Microsoft's Windows Live Search and Yahoo's efforts to improve its own search engine. The smart thing in this context is to diversify investments, and this is the way Google will probably be taking. Meanwhile, Brazil's Ministry of Agriculture, together with representatives of the alcohol industry are studying the possibility of financing over 22 billion reais (US$ 10.25 billion) to guarantee alcohol and sugar supplies for both, the national and international markets, avoiding lower production between harvesting. To begin with, the sector will ask 1.2 billion reais (US$ 560,000) for a program of steady supply, with funds coming from a tax over fuel. With the money coming in the early harvesting, 1.5 billion liters of alcohol would be kept as reserve. The plan includes the construction of 73 new plants in the next six years together with an increase of 2.5 million hectares of sugar cane plantations. With the new cars that convert easily from gas to alcohol, the use of alcohol as fuel is expected to double to 26 billions liters by 2014. What this really means is that an industry that could walk on its own feet, through good planning and business with international investors (such as the Google boys, for instance), and with a climate that allows agriculture 12 months a year, still wants subsidies, and tax money to heighten their profits. But this should not be a shock to anyone. The government has not reached a conclusion yet, but it will be no surprise to find that the industry will get what they want. They are talking, negotiating and no one really cares if the people, the taxpayers will have to pay more. After all, the day that the interests of the people will be considered as top priority are yet to come. It did not happen with the socialist-democrats in power with Fernando Henrique Cardoso, and it is not happening with the Workers Party President, Luiz Inácio Lula da Silva. Clara Angelica Porto is a Brazilian bilingual journalist living in New York. She went to school in Brazil and at the University of Wisconsin in Madison. Clara is presently working as the English writer for The Brasilians, a monthly newspaper in Manhattan. Comments welcome at
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qUITE A SHAME AND A SAD REALITY THAT DESPITE THE BOOMING SUGAR AND ETHANOL INDUSTRY, THIS SAME INDUSTRY IS STILL LOOKING FOR GOVERNMENT SUBVENTIONS INSTEAD OF USING THEIR OWN PROFITS...NOT TAXED APPROPRIATELY ANYWAY BECAUSE OF THE GENERAL CORRUPTION THAT PREVAILS IN BRAZIL !