Posted on 12/04/2012 12:02:23 AM PST by 2ndDivisionVet
For the US economy, this would be a 'Black Swan' of a totally different variety.
In Bank of America/Merrill Lynch's 2013 Energy Outlook, analyst Sabine Schels and colleagues make a shocking prediction about the possible path of West Texas Intermediate oil.
Surging US shale oil output creates risk of $50 WTI North America’s energy supplies are surging while the rest of the world continues to fight for scarce molecules of oil and gas. On our estimates, onshore US crude oil output now vastly exceeds previous growth rates in liquids and nat gas, particularly in Lower 48 states. With profitability for US domestic oil producers very high and no change in sight to US rules preventing crude oil exports, we expect WTI prices to continue to lag international prices. Indeed, we see a risk of WTI temporarily falling to $50/bbl over the next 24 months to force a slowdown in supply growth or a change in crude oil export rules.
A key point that Schels & Co. make is that the crude oil market could come to resemble the Natural Gas market. In the natural gas market, the US has natural gas coming out of its ears, as it just has way more supply coming out of the ground than it could possibly use or export. So while prices remain decent throughout much of the world, domestic natural gas prices have collapsed...
(Excerpt) Read more at businessinsider.com ...
For every bust, there is another boom when the price goes up.
They had high school back then?
If it gets to $50 per barrel BO will tax it at $50 per barrel or find some insect that needs protection that’s only found in shale oil areas.
Strictly speaking, we called it “High Cave”.
(I'm just kidding dale--I have 6 great grandkids myself, and I remember when a dollar's worth would get you around for the weekend.)
No, it just means that Obama will double down on restrictions on drilling, production, and refining, and the price will go up or at best, stay the same for the refined product.
They are starting to be built. In one particular instance I just saw the other day, they are about to complete a new NG filling island with several stations at a Fleet fueling station that has been there for several years servicing gas and diesel for commercial fleet accounts.
It does not technically require much as many forklifts in the early 80’s were converted to propane from gasoline as a means to cut the fumes in warehouses. I recall they ran a little cooler as well.
Oil at $50 = Depression.
Yes, I worked for a company, a plywood plant, that used them, the small and middle sized ones used propane and the larger ones used Diesel.
They have them and are building them with NO help from the goobermint. IF Obama told the truth about trying to achieve energy independence we would already have this on every highway. The markets are building them as fast as money allows. Look up Westport Innovations and Clean Energy stock symbols WPRT and CLNE.
all hail the wet blanket of globull warming
* Gobs of approved conversion companies out their like Roush, it is expensive.
* Their is an apporved home refuel device called the "Phil", but it is like $4000.
* I read over on GreenCarCongress of a research project of a free piston electric driven pump to fill your car that would have a $500 price point if gone commercial, that would be a game changer.
* With the EPA being so anal with emissions they forced the big 6 into things like direct injection in conjunction with turbocharging. With that said supplanting a Gaseous Injector in place of the Gasoline would allow even higher turbo-boost or compression ratios given the fuels octane for a series of win-wins.
* With that said, I can't see how they stop that at some-point, smaller engines, more power, cleaner.
Also Good Westport (LPG injectors etc), and Pilot Fuels 150 filling stations for LPG for Trucks. IMHO their is a gaseous fuel revolution coming, the question is does Commander Oboingo stop it....
I thought the same thing. I checked out the cost of conversion kits and I found prices around 4-5K a car which seemed rather high.
I still have a few contacts in the energy business.
This is all speculation, but it is informed speculation. The thing to remember is that it all depends on the EPA giving the green light.
NG is a decent fuel, but your range is shorter and you are driving around with a large pressurized tank.
When I was working in New Mexico, you would see some NG trucks. The locals used them for shorter trips, and had a newer gas car for longer ones.
Thanks to all of you for the responses to my query about Natural Gas conversions on cars. FR has the smartest people in the world, at least IMO, for members.
In a rational market, as the price of oil as traded is LESS than the cost of extracting and transporting it, the well would simply be shut down.
So the Current Regime in the White Hut is faced with the necessity of INCREASING the costs of production on ALL oil and natural gas sources, either by burdensome regulation, or application of taxes in such strategic manner that the producers must pass through these costs to consumers.
Up to now, the Current Regime has had little difficulty in imposing these additional costs of production, through rules on the generation of carbon dioxide in excess of some theoretical and completely arbitrary standard, resulting on the imposing of fines or taxes, or of other POTENTIAL (but unproven) impacts on the environment.
And a direct increase of taxes on the consumer at point of purchase, such as fuel dispensed for motor vehicles, or electricity to run home and industry, is always a dream for the Current Regime, providing them with the means to control and direct the internal workings of the entire country. They get to pick the winners and losers, but in the end, they pick only the losers. The winners are happy accidents that gain through either falling through the cracks in the regulatory network, or have been purposfully ignored by the successors to the Current Regime.
In short, anti-growth measures, taken not to “conserve” anything, but to thwart any expression whatsoever of the principles of capitalism.
Is Schels a retired billionaire or just another one of the 50,000+ financial analysts making a prediction?
Prediction: Oil will be either more or less than $50 one year from now.
http://journeytoforever.org/biofuel_library/methane_bate.html
CHICKEN MANURE FUEL: “Put a chicken in your tank” may never match the zap of Esso’s “Put a tiger in your tank” slogan. But British inventor, Harold Bate, will tell you you that chicken power will run a car faster, cleaner, and better than gasoline.
Bate has found a way of converting chicken droppings to gas — and runs his automobile on it.
By processing methane gas from rotted chicken manure and feeding it to the engine through a special device he invented, Bate says, he has managed to drive his 1953 Hillman at speeds up to 75 m.p.h. without the use of gasoline.
At his farmhouse in Devon, Bate, 62, told an ENQUIRER reporter:
“This is the thing of the future... all you need is a couple of buckets of manure, a tin drum and my carburetor conversion device, and you’re in business.”
Bate’s “chicken coupe” has been investigated and upheld by the British Ministry of Transport.
“We’ve looked into it,” Frank Standing, information officer for the ministry told the ENQUIRER, “and the device works perfectly.
“However, as to mass use, that seems doubtful. There is simply not enough of a supply of chicken manure to provide fuel for autos on a mass basis.”
Bate says he has been running his car and five-ton truck on the methane gas - as well as heating his home with it - for years.
“The method is really very simple,” Bate, said. “You just put about three buckets of manure into a sealed oil drum. Put a small oil heater under the drum to keep the manure at a steady 80 degrees.
“There are two microbes in the manure which, when heated, eat each other - this produces the gas.
“You can collect the gas in bottles or in plastic balloons for storage. Then all you do is feed the methane through an adapter into your carburetor - and you’ve got chicken power.
“I keep replenishing my manure supply. I run my car for about six months before I clean out the tank and start with fresh dung.”
Bate said the conversion from gasoline to methane power can be made in two hours and requires no special tools. The only engine alteration required is the installation of Bate’s patented device which feeds the methane from the bottle to the carburetor.
The gas, sucked into the engine by the cylinders, is ignited in the usual manner by the spark plugs to produce power.
Methane is not only cheap and efficient, said the inventor, but it is better for your car - no carbon deposit on your cylinders and no engine wear and no poisonous carbon monoxide fumes.
(From NATIONAL ENQUIRER June 1970)
I thought people rode horses to school back then?
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