ping
Good too ping Thackney ........:o)
It is time to beat up our Congress-critters with emails demanding they pass legislation to increase domestic production. I told my delegation today that despite their efforts, I hold them and not the oil companies responsible.
The minute the approval went out to drill the price would collapse.
I think the price will probably crash on its own sooner then later anyway when usage drops off.
It’s not 1986. You have different factors and new sources of demand for a finite amount of a monopoly good. The price of oil is going to destroy our economy.
Although I don't use this product, since people are starting to use bicycles more, people might be interested in this autoshifting bicycle.
Autoshifting bicycleAlso, I'm keeping an eye on developments in bio-fuel production.
First, the bad news about ethanol. Ethanol fires are evidently harder to control than gasoline fires.
Ethanol fires hard to control 1Hopefully, ways will be developed to make controlling ethanol fires easier.
Ethanol fires hard to control 2
On the brighter side concerning ethanol, there's now evidence that people might get as much, or more, bang per buck for their gas dollars with gas / ethanol mixtures.
Gas-competitive gas / ethanol mixturesAlso, I was surprised by the introduction of a machine (popularly known as a still) for making home-made ethanol.
EFuel100In stark contrast to the 1700 gallons of water required to make one gallon of corn-based ethanol as indicated by the OP, the EFuel100 uses only 170 gallons of water to produce 35 gallons of ethanol In other words, the EFuel100 uses less than 1% (about 0.2%) as much water as corn ethanol, under five gallons, to produce one gallon of ethanol.
But also note that the water used in the EFuel100 process does not take into account the water needed to grow the sugar that is used for this process.
And watch out for fines for violating biofuel regulations.
Fines for violating biofuel regulationsAlso, progress is being made in the development of other non-corn ethanol production technologies as well.
Non-corn ethanolFinally, I've also been hearing good things about biodiesel production but need to find some links.
No, it would help but it would not collapse oil prices. And if it did collapse oil prices the E&P in the States would grind to a halt.
However, we should drill in ANWR right away but the world were to decrease oil consumption by 0.11% that would do the same for the price of oil as bring ANWR on line.
My recollection is that 1986 is the only year in modern America where the national economy experienced deflation, due to the oil bust. Texas went through a depression.
There is something this article is missing- the dollar was much stronger than it is now.
That report set the stage for what is happening now--instead of getting it right, and activity gearing up, it stopped, and another wave of stripper well P&As happened, just like '86.
The loss of that (then) marginally (un)economical production, which in aggregate was substantial, (even though individual wells produced under 20 bbl/day,) has hurt us, and put us behind the curve when global demand took off.
While the tariff might never actually kick in, it would provide a level of investor confidence which would bring in more development capital and permit more long-termed investment in infrastructure with less risk.
In reality, this is not an embargo scenario like the runup prior to 1986, but is demand driven.
Instead, Congress will propose taxes like the "windfall profits tax" and more fuel taxes, rather than propose a tax which could help development rather than harm it and the American people.