Free Republic
Browse · Search
News/Activism
Topics · Post Article

To: MinimizeGovernment
Given that the cost of gasoline today is actually on par with the inflation-adjusted price from 1980, I have to assume that coal liquifaction still doesn't make economic sense.

I recall reading that one problem is that even if OPEC drives up the price of oil above the cost of oil shale, that wouldn't make oil shale economically viable as long as OPEC retains the ability to reduce prices.

Suppose, for example, that for one billion dollars a company could gain the ability to produce an unlimited quantity of oil for $40/barrel. It's been a long time since OPEC has sold oil that cheap, but if someone started selling oil for $40/barrel, OPEC would probably respond by selling its oil for $39/barrel. Almost everyone in the U.S. would be better off as a result of OPEC's being forced to cut its prices, except for the company that spent $1B which it may never recover.

24 posted on 05/21/2007 8:05:51 PM PDT by supercat (Sony delenda est.)
[ Post Reply | Private Reply | To 11 | View Replies ]


To: supercat
produce an unlimited quantity of oil

Pure fantasy. You might as well talk about cars that run on pixie dust.

OPEC is not capable of produce even half the world's demand for oil.

28 posted on 05/21/2007 8:25:47 PM PDT by thackney (life is fragile, handle with prayer)
[ Post Reply | Private Reply | To 24 | View Replies ]

Free Republic
Browse · Search
News/Activism
Topics · Post Article


FreeRepublic, LLC, PO BOX 9771, FRESNO, CA 93794
FreeRepublic.com is powered by software copyright 2000-2008 John Robinson