Brazil Increases Ethanol Output

Brazil has plans to double its ethanol production in the next 10 years. This announcement came at the end of April's South American energy summit.

The always vocal Hugo Chavez, president of Venezuela, however, smells an ethanol-drenched rat. Chavez has spoken out against the proposed increase in ethanol production, not least because the US has agreed to jointly peddle ethanol as an alternative fuel. Venezuela's own high oil output and the protection of it is also likely to be no small factor in Chavez's objection.

Where the US is involved, Mr Chavez is never far behind in his criticism. It was only last March that Chavez went on an anti-Bush tour through South America at the same time Bush was on his own presumably pro-Bush tour in the region.

Most cars in Brazil nowadays run on ethanol, which is made from sugar cane. Here again, Mr Chavez is critical, citing that the sugar-cane fields use up a damn big chunk of land, thus contributing to rural poverty.