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
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