Posted on 08/27/2014 10:23:28 AM PDT by thackney
Record-setting liquid fuels production growth in the United States has more than offset the rise in unplanned global supply disruptions over the past few years, although differences in quality and location suggest that the substitution may not be exactly 1-for-1. U.S. liquid fuels production, which includes crude oil, hydrocarbon gas liquids, biofuels, and refinery processing gain, grew by more than 4.0 million barrels per day (bbl/d) from January 2011 to July 2014, of which 3.0 million bbl/d was crude oil production growth. During that same period, global unplanned supply disruptions grew by 2.8 million bbl/d.
U.S. production growth, the main factor counterbalancing the supply disruptions on the global oil market, has contributed to a decrease in crude oil price volatility since 2011. Over the past 13 months, the monthly average Brent price has moved within a narrow $5 per barrel range, between $107 per barrel and $112 per barrel. In contrast, the range of monthly average Brent prices over the prior 13-month period (June 2012-June 2013) was $21 per barrel.
Global unplanned supply disruptions averaged 3.2 million bbl/d during the first seven months of 2014 and peaked at 3.5 million bb/d in May 2014. The current level of supply disruptions is the highest since the Iraq-Kuwait War (1990-91), when supply disruptions peaked at 4.3 million bbl/d, based on data from the International Energy Agency.
The One will find a way to disrupt it. I just think it’s not on the radar yet. I guess after killing coal, he’ll go after our gas.
Drill baby, drill! ;)
I work for the railroad servicing and repairing locomotives. At the rail yard that I work at, we burn through 3 million gallons of distillate, a month.
The railroad is very seriously looking into running LNG in their locomotives, with its low cost, and with the cryogenic tankcars and onboard fuel tanks that I have seen lately, along with the greatly reduced engine maintenance from burning natural gas, not to mention meeting tier 4 emissions without any post-exhaust treatment, I think that the days of the diesel locomotive are numbered.
Extremely less. Production rates would be falling not climbing.
Even then, if the oil industry can't get the price below $2.00 a gallon for either gasoline, fuel oil or diesel, or LPG, then I'll throw my money into the consumer side, and promote efficiency gains and the use of natural gas.
Nothing wrong with that. The fuel is cheaper. So far there are still nearly offsetting cost in engine, fuel system and lack of distribution, but it is getting better.
The railroad is very seriously looking into running LNG in their locomotives, with its low cost, and with the cryogenic tankcars and onboard fuel tanks that I have seen lately, along with the greatly reduced engine maintenance from burning natural gas, not to mention meeting tier 4 emissions without any post-exhaust treatment, I think that the days of the diesel locomotive are numbered.
I tend to agree. LNG requires more volume for the same energy as diesel, but it is less mass. The very limited locations required for fueling seem to make this a good fit.
LNG per gallon contains only 58% of the joules (BTUs) of a gallon of diesel. And it warms up and loses density just sitting in an insulated tank.
No free lunches. Oil is superior because it is superior. Not because of conspiracy or economics.
bttt
And for the same energy, it cost 50% less.
The large differential between crude oil and natural gas commodity prices translates directly into a significant disparity between projected LNG and diesel fuel prices, even after accounting for natural gas liquefaction costs that exceed refining costs. In the AEO2014 Reference case, the long-run price difference between locomotive diesel fuel and LNG in rail applications increases from $1.48/gal of diesel equivalent in 2014 to $1.77 in 2040 (Figure IF3-2).
Yes, the railroad will need twice as big fuel tank. But what does that matter for a railroad? More importantly, for the same energy it has less mass.
And it warms up and loses density just sitting in an insulated tank.
Actually, when the engine is in use, the boil off of gas from the liquid provides an auto-refrigeration effect that cools the liquid. Changing from liquid to gas takes energy even without changing temperature. That energy is heat removed from the liquid. That is what makes LNG a better choice for engines that spend most of their time running and a poor choice for engines (like a personal vehicle) that spends most of their time waiting to be used.
Depends on the engine design, and whether it was optimized for the fuel being fed to it, or just a comprimise. E85, and E10 are prime examples of wasting fuel in an engine that was not designed to burn them specifically.
The railroads already utilize LNG and CNG fueled locomotives, and they use
them in the most demanding operations: yard switching, and hump & trim sets. And the fuel savings from those operations, along with reduced maintanence costs, have more than made up for the initial stuctural costs.
Just got back from a short visit to the Rio area of Brasil (that’s how they spell it) and noticed a few vehicles being refueled in the engine compartment underneath the hood in addition to the regular means. I asked our host about that & he said these were likely running on natural gas. Most are retrofits & people loose about half their trunk space for the tank, although there is a Fiat available designed for this application. It has more or less the normal trunk space.
Sounds like they are used in places at most a few miles from refueling. All these celebrations of LNG are always trash trucks or something that is a mile or two from refuel, never venturing farther.
You can’t haul food to grocery stores that way, and in the end that is the only thing that matters.
BTW, the tank in question losing liquid to gas just sitting is the tank at the refueling point. I’ve seen estimates that 30% of the energy in nat gas is used up converting it to LNG and wastage per day warming up.
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