Hi Rich, This is such an incredibly complex issue. In addition to the things you mentioned, when oil prices go up, the reserves also go up becuase it become more economical to oil out of the ground. For instance if oil costs $3/gal to drag from the ground and gas is selling for $4/gal there's incentive to go after that more expensive fuel. $3/g starts to look cheap by comparision. Now that we have gas at nearly $4/g at the pump should mean (I believe) the oil in the ground can be brought out and still make a profit. (Regardles of what you might think of oil company profits, their shareholders expect them to make money - if they don;t make money they become a government or die!) IIRC, coal gasification begins to become economically viable at $5/g IIRC.
But we need to push forward on all these fronts, not just one, 2 or 3. Wind, solar, coal, hybrids, new exploration, new refineries, new nukes, etc, etc - all need to move forward. Larry T (67 MGB, 74 911, 78 240D, 91 300D) www.youroil.net for Oil Analysis and Weber Parts Test Results http://members.rennlist.com/oil PORSCHE POSTERS! youroil.net Weber Carb Info http://members.rennlist.com/webercarbs . ----- Original Message ----- From: "Rich Thomas" <[EMAIL PROTECTED]> To: "Mercedes Discussion List" <mercedes@okiebenz.com> Sent: Thursday, January 24, 2008 5:27 PM Subject: Re: [MBZ] First MB Diesel -- now fuel and efficiency > Actually, today, some planned refinery expansions and new constructions > are being (have been) put on hold because of projected decreases (or > smaller increases) in consumption due to prices and govt plans to force > auto makers to increase fuel economy. The refinery owners/operators > don't see much reason to invest in lots of new capacity if demand is > going to be lower (or not much higher) as it takes several years and > lots of money to build a refinery and infrastructure to support it. > Whether it goes up or not, they won't lose money, but might not make as > much, so that is kind of a no-brainer decision for them given a risk > assessment. > > Now, had the climate been more favorable to that over the last several > years (i.e., environmental issues/constraints/impediments) then there > would be more refinery capacity, and possibly lower prices/more supply > of fuel. But lookie there -- lower prices, more supply means more use, > which gets many exercised because it is "causing" all kinds of other > problems. So now, we buy diesel from Europe where there is some excess > refining capacity (and much higher taxes to control consumption), and > gasoline from other countries (e.g., Hugo), instead of making here at > home and lessening our trade imbalance, improving security, etc. > > I think India and China are not so concerned about the same issues, so > we are shooting ourselves again. > > On another point, it is almost 1000 miles from one end of Texas to the > other, which you can drive with NOT ONE traffic light, at pretty high > speed with not a lot of traffic except in Houston and SA, perhaps a > little different from driving across England or Germany or Belgium > maybe. We also have lots of open space, and fairly new cities (except > maybe in the NE) where there is lots of room for cars, unlike a lot of > Europe, and a fairly affluent population. Also there is a history of > freedom (not socialism) and less-than-usurious taxation in the US that > suggests if one has the money to spend on something, then you can choose > to spend it on that. Those factors differ from a lot of the rest of the > world. > > Now, all that said, I happen to think it would be a good thing to have > more efficient transportation options, but let them be options not what > I am told to use by someone who seems to think they know what is better > for me than I can figure out for myself. I have a calculator and can > figure all that out, and consider other factors too. If someone thinks > a higher price (taxes) is a good thing, y'all can send me that > difference and I will make sure it is used well. Trust me! > > --R > > Donald Snook wrote: >> Rich Thomas wrote: "Oh, and the environmentalists who block new >> drilling and refineries." >> >> >> >> BINGO! That is why gas and diesel are so high. There are not enough >> refineries! The current refineries are aging and without replacements, >> gas is going to get more and more expensive. Koch Industries is >> headquartered here in Wichita. They are the world's largest refiner of >> oil. They can't keep up with the demand. More refining means more gas >> and diesel. Larger supplies would decrease the speculating traders from >> bumping up the price. >> >> >> >> Donald H. Snook >> >> >> >> > > _______________________________________ > http://www.okiebenz.com > For new parts see official list sponsor: http://www.buymbparts.com/ > For used parts email [EMAIL PROTECTED] > > To Unsubscribe or change delivery options go to: > http://okiebenz.com/mailman/listinfo/mercedes_okiebenz.com _______________________________________ http://www.okiebenz.com For new parts see official list sponsor: http://www.buymbparts.com/ For used parts email [EMAIL PROTECTED] To Unsubscribe or change delivery options go to: http://okiebenz.com/mailman/listinfo/mercedes_okiebenz.com
