Gas Prices

Now to be more serious, there is a definite bottleneck that has been made even worse over the past weekend. There is going to be a serious jump in prices. Now the oil reserves are climbing, but gas reserves are not.

Real soon the peak oil crowd is going to get vocal again, but this really has to do with the oil companies not building refineries in the past 25 years, and the supposed environmentalists protesting any idea of building one.

Wholesale gas has jumped from about $2.06 a gallon to about $2.47, so were in for a shock, unless they can get a quick turnaround on those refineries.

Fill up now, and do whatever you can to avoid using gas.

Regardless this is something the market is going to react to. People were generally going with the flow, with some effect on how they were using gas. But this big of a jump is going to get a lot of peoples attention.

This might just knock our economy off track.

gas is cheap… . how much do you pay for the equivalent amount of any other liquid? down here in NZ petrol is $1.52 a litre… . a litre of milk costs $2.00 and yet people still complain about the cost of fuel. …

[quote]The Mage wrote:
Now to be more serious, there is a definite bottleneck that has been made even worse over the past weekend. There is going to be a serious jump in prices. Now the oil reserves are climbing, but gas reserves are not.

Real soon the peak oil crowd is going to get vocal again, but this really has to do with the oil companies not building refineries in the past 25 years, and the supposed environmentalists protesting any idea of building one.

Wholesale gas has jumped from about $2.06 a gallon to about $2.47, so were in for a shock, unless they can get a quick turnaround on those refineries.

Fill up now, and do whatever you can to avoid using gas.

Regardless this is something the market is going to react to. People were generally going with the flow, with some effect on how they were using gas. But this big of a jump is going to get a lot of peoples attention.

This might just knock our economy off track.[/quote]

signs in for peak oil crowd

so how come refineries have only become an issue recently? katrina only shut down a megre 8 refineries apparently… . whats the real reason behind the price? well its quite possible that its not a result of “lack of oil” but lack of quality oil… .

as you should be aware all the good quality easily obtainable oil is extracted from the well early on in its life… . as time goes by the oil left becomes harder to extract and is of lesser quality… . it also makes it harder to refine and more energy intensive which would drive up costs. …

[quote]Gl;itch.e wrote:

signs in for peak oil crowd

so how come refineries have only become an issue recently? katrina only shut down a megre 8 refineries apparently… . whats the real reason behind the price? well its quite possible that its not a result of “lack of oil” but lack of quality oil… .

as you should be aware all the good quality easily obtainable oil is extracted from the well early on in its life… . as time goes by the oil left becomes harder to extract and is of lesser quality… . it also makes it harder to refine and more energy intensive which would drive up costs. …[/quote]

Only recently? I have been bitching about it for years. In fact about 10 years ago when I read the article in USA Today with the leaked memo from the oil company execs that talked about how they were secretly supporting the environmentalists, even though they publicly acted like they were at least weakly fighting them. (I have posted about this before.)

This is what helped create this bottleneck.

Since it has been at least 25 years since a refinery was built, doesn’t it make sense that a new refinery would be more efficient, and produce a cleaner fuel?

In the past when oil was cheap, people were finding sources of oil, and capping them off, because it was not worth it to pump it out at that time. Now there are new permits to pump this oil.

Did you know that 124 oil wells were shut down, and another 177 were plugged and abandoned in Colorado in 1998? 821 in Arkansas, 538 in California, 2,500 in Indiana, estimated 11,585 in Kansas? How about the 8,700 in Ohio?

http://www.iogcc.oklaosf.state.ok.us/PDFS/Table1.htm

This was all part of supply and demand. Now that the demand is greater then it was, they are reopening up these wells.

But environmentalists still are fighting against cheap oil.

http://www.truthout.org/issues_05/081605EB.shtml

(I wanted to link directly to the LA times article, but it was removed.)

We have discussed peak oil here repeatedly. The problem with the peak oil crowd is not that they are wrong about there being a limited supply of oil. (then again there is only a limited supply of sand on Earth, and the Sun only has a limited supply of fuel. Only 4 billion more years, and then poof, no more sun.)

The problem is they have no vision of the future. They look at modern society, envision what would happen if oil was taken away today, and then act like there is a crisis. Technology, which has historically advanced faster during times of crisis, is ignored. New technology is ignored or put down, and often fraudulently.

I have heard from them that ethanol uses more energy in its production then the ethanol gives off, but that has been proven false. (Recent research.) Plus all the alternative forms of oil are never discussed, such as heavy oil, or oil shale, which technology is making cheaper and cheaper to produce and refine.

Hubbert’s peak was supposed to be a decade ago, and that was a revision from his first prediction of the 70’s. (Though now they say it was just American reserves, and the new prediction was world reserves.)

Also Bill Gates said there was no reason for a computer to ever need any more then 640k.

[i]Sheik Yamani, one time oil minister to Saudi Arabia, who stated in a speech to Europeans, “The stone age ended, but not because of any lack or stones. Undoubtedly the oil age will end the same way.”

C. Maurice and C. Smithson, Doomsday Mythology: “Every ten or fifteen years since the late 1800’s (when we began using petroleum) “experts” have predicted that oil reserves would last only ten more years. These “experts” have predicted nine of the last zero oil-reserve exhaustions.”

In May 1920, the U.S. Geological Survey announced that the world’s total endowment of oil amounted to 60 billion barrels.[/i]

Maybe we should “liberate” oil rich Venezuela next…

[quote]The Mage wrote:
Only recently? I have been bitching about it for years. In fact about 10 years ago when I read the article in USA Today with the leaked memo from the oil company execs that talked about how they were secretly supporting the environmentalists, even though they publicly acted like they were at least weakly fighting them. (I have posted about this before.)[/quote]

whats that about never heard of it but it sounds a lot more odd than many other conspiracy theorys currently circulating

[quote]This is what helped create this bottleneck.

Since it has been at least 25 years since a refinery was built, doesn’t it make sense that a new refinery would be more efficient, and produce a cleaner fuel?[/quote]

maybe but then why havent they done it? that doesnt make sense… . how about they havent built any new refineries because thats not the problem. …

[quote]In the past when oil was cheap, people were finding sources of oil, and capping them off, because it was not worth it to pump it out at that time. Now there are new permits to pump this oil.

Did you know that 124 oil wells were shut down, and another 177 were plugged and abandoned in Colorado in 1998? 821 in Arkansas, 538 in California, 2,500 in Indiana, estimated 11,585 in Kansas? How about the 8,700 in Ohio?

http://www.iogcc.oklaosf.state.ok.us/PDFS/Table1.htm

This was all part of supply and demand. Now that the demand is greater then it was, they are reopening up these wells.
[/quote]

thats no big deal whatsoever… . in fact its actions like those that give more credit to the peak oil crowd… . its obvious why this has happened… . in the old days those wells were capped because they werent worth spending the time on… . yes… . I agree… . thats because back in those days they were discovering the great big granddaddy fields… . those were the ones that were worth using… . and now that all the old ones are dying off they have to resort to the smaller lesser fields in order to keep overall production the same… . the obvious problem is that these small fields wont last the 50+ years that the big fields did… . they will have a quick productive run and then will become useless. …

[quote]But environmentalists still are fighting against cheap oil.

http://www.truthout.org/issues_05/081605EB.shtml

(I wanted to link directly to the LA times article, but it was removed.)
[/quote]

I havent read that article but I may later… . I dont care much for enviromentalits… . they are generally a very clueless bunch with even less forsight than some of the people they rally against. …

[quote]
We have discussed peak oil here repeatedly. The problem with the peak oil crowd is not that they are wrong about there being a limited supply of oil. (then again there is only a limited supply of sand on Earth, and the Sun only has a limited supply of fuel. Only 4 billion more years, and then poof, no more sun.)

The problem is they have no vision of the future. They look at modern society, envision what would happen if oil was taken away today, and then act like there is a crisis. Technology, which has historically advanced faster during times of crisis, is ignored. New technology is ignored or put down, and often fraudulently.[/quote]

this I totally disagree with… . the peak oil movement is a lot more concerned with long term than you give it credit for… . yes its possible that a new technology can help out but relying on a hope like that is about as smart as refusing a heart transplant on the hope that sometime in your remaining 3 weeks to live someone might invent a new cure for your disease that is super fast working and has a 100% sucess rate… . hardly smart thinking. …

[quote]
I have heard from them that ethanol uses more energy in its production then the ethanol gives off, but that has been proven false. (Recent research.) Plus all the alternative forms of oil are never discussed, such as heavy oil, or oil shale, which technology is making cheaper and cheaper to produce and refine.[/quote]

maybe not… . I havent read any recent writings on this matter… . but the truth is still obvious… . it will take more energy to produce ethanol for fuel than it currently does to drill a hole in the ground and get some oil out… .

thats a pretty new writing (june 2005) so Id like to see anything newer that proves it wrong. …

[quote]
Hubbert’s peak was supposed to be a decade ago, and that was a revision from his first prediction of the 70’s. (Though now they say it was just American reserves, and the new prediction was world reserves.)[/quote]

yes his first prediction was for the 70s in america and he got it right… . his prediction for the world was around 1995… . which he got wrong… . but whose to say everyone else is wrong?

Here in Montreal it has gone as high as 114.8 a liter, the highest in North America. Currently it is at 108.4 per litre. I cant imagine how gas gets to a dollar and 8 cents. It is nuts and something must be done. If you wish to do something about it read this fwd I got:

IT HAS BEEN CALCULATED THAT IF EVERYONE IN THE UNITED STATES AND CANADA
DID NOT PURCHASE A DROP OF GASOLINE FOR ONE DAY AND ALL AT THE SAME
TIME, THE OIL COMPANIES WOULD CHOKE ON THEIR STOCKPILES.

AT THE SAME TIME IT WOULD HIT THE ENTIRE INDUSTRY WITH A NET LOSS OF
OVER 4
6 BILLION DOLLARS WHICH AFFECTS THE BOTTOM LINES OF THE OIL COMPANIES.

THEREFORE SEPTEMBER 1st HAS BEEN FORMALLY DECLARED "STICK IT UP THEIR
BEHIND " DAY AND THE PEOPLE OF THESE TWO NATIONS SHOULD NOT BUY A
SINGLE DROP OF GASOLINE THAT DAY.

THE ONLY WAY THIS CAN BE DONE IS IF YOU FORWARD THIS E-MAIL TO AS MANY
PEOPLE AS YOU CAN AND AS QUICKLY AS YOU CAN TO GET THE WORD OUT.

WAITING ON THE GOVERNMENT TO STEP IN AND CONTROL THE PRICES IS NOT
GOING TO HAPPEN. WHAT HAPPENED TO THE REDUCTION AND CONTROL IN PRICES
THAT THE ARAB NATIONS PROMISED TWO WEEKS AGO?

REMEMBER ONE THING, NOT ONLY IS THE PRICE OF GASOLINE GOING UP BUT AT
THE SAME TIME AIRLINES ARE FORCED TO RAISE THEIR PRICES, TRUCKING
COMPANIES ARE FORCED TO RAISE THEIR PRICES WHICH EFFECTS PRICES ON
EVERYTHING THAT IS SHIPPED. THINGS LIKE FOOD, CLOTHING, BUILDING
MATERIALS, MEDICAL SUPPLIES ETC. WHO PAYS IN THE END? WE DO!

WE CAN MAKE A DIFFERENCE. IF THEY DON’T GET THE MESSAGE AFTER ONE DAY,
WE WILL DO IT AGAIN AND AGAIN.

SO DO YOUR PART AND SPREAD THE WORD. FORWARD THIS EMAIL TO EVERYONE
YOU KNOW. MARK YOUR CALENDARS AND MAKE SEPTEMBER 1ST A DAY THAT THE
CITIZENS OF THE UNITED STATES AND CANADA SAY “ENOUGH IS ENOUGH”

By the way, i was wrong, gas here in montreal is now currently at a dollar 20 a liter… 120.4??? thats crazy…

[quote]Gl;itch.e wrote:
gas is cheap… . how much do you pay for the equivalent amount of any other liquid? down here in NZ petrol is $1.52 a litre… . a litre of milk costs $2.00 and yet people still complain about the cost of fuel. …[/quote]

This is an absurd argument. Please never use it again. Do you use 15 gallons of milk a week? No, you do not. If you do, get a fucking hobby. People making this argument either have not thought it through, or they haven’t got an inkling about economics in the slightest. It has absolutely NOTHING to do with the price per gallon, it has to do with how MANY gallons you require per unit time. If gas were to drop to 50 cents per gallon, but for some odd reason engines started requiring one hundred times as much gas to run, we’d still be in trouble. And gee, milk would STILL be more expensive, and that fact would still be, at best, irrelevant.

When I recieved the don’t buy gas email, it was the 19th of each month. So how exactly are we supposed to organize if people change the contents of that email? :stuck_out_tongue:

I wrote: [quote]
Since it has been at least 25 years since a refinery was built, doesn’t it make sense that a new refinery would be more efficient, and produce a cleaner fuel?
[/quote]

Gl;itch.e wrote: [quote]
maybe but then why havent they done it? that doesnt make sense… . how about they havent built any new refineries because thats not the problem. … [/quote]

The reason they haven’t done it is to drive up prices. It worked. Oil supplies are greater then last year, but gas supplies are lower. By slowing down refining they have caused the supply/demand to change to their benefit.

Gl;itch.e wrote: [quote]
thats no big deal whatsoever… . in fact its actions like those that give more credit to the peak oil crowd… . its obvious why this has happened… . in the old days those wells were capped because they werent worth spending the time on… . yes… . I agree… . thats because back in those days they were discovering the great big granddaddy fields… . those were the ones that were worth using… . and now that all the old ones are dying off they have to resort to the smaller lesser fields in order to keep overall production the same… . the obvious problem is that these small fields wont last the 50+ years that the big fields did… . they will have a quick productive run and then will become useless. … [/quote]

No big deal? If you follow the link, and do a little math, there were a total of 50,141 wells shut down. Is that a small amount? And how exactly do you know how big these oil fields are? It is correct that they were shut down because it was not profitable enough, and to slow the supply of oil entering the market.

That has changed, and now they are tapping those wells.

I should also point out one of the reasons they have not found those “granddaddy” fields recently is because nobody is really looking. We have had cheap energy for a while now, and the profit margin really made it worthless to go searching for large deposits of oil.

You do know people are searching for gold don’t you? Would they still look for it if gold dropped to 10 cents a pound? Would you?

This drop in extraction and search is actually common among mined commodities. Many have a set price where they quit looking.

Gl;itch.e wrote: [quote]
this I totally disagree with… . the peak oil movement is a lot more concerned with long term than you give it credit for… . yes its possible that a new technology can help out but relying on a hope like that is about as smart as refusing a heart transplant on the hope that sometime in your remaining 3 weeks to live someone might invent a new cure for your disease that is super fast working and has a 100% sucess rate… . hardly smart thinking. … [/quote]

Sorry you disagree with me, but your argument really does not hold water. You are comparing 3 weeks to a commodity that according to current estimates we haven’t even extracted a third of, and that assumes no new finds.

To hope for an advance in 3 weeks may be foolish, but hoping for an advance in the next 10 to 20 is not, and in fact should be expected. I guarantee that persons chances of survival are greater then 10 to 20 years ago.

Also the technology I am talking about is either already in use, coming into use, or in serious development. For example they are starting to use solar power to run the pumps instead of burning the oil they pump to fuel the pump. That will expand the supply.

You cannot predict the technology that will come in the next 10 years. And innovation is driven by necessity. I am surprised at the effect of switching from regular light bulbs to compact fluorescent has had on my electric usage.

I wrote: [quote]
I have heard from them that ethanol uses more energy in its production then the ethanol gives off, but that has been proven false. (Recent research.) Plus all the alternative forms of oil are never discussed, such as heavy oil, or oil shale, which technology is making cheaper and cheaper to produce and refine. [/quote]

Gl;itch.e wrote: [quote]
maybe not… . I havent read any recent writings on this matter… . but the truth is still obvious… . it will take more energy to produce ethanol for fuel than it currently does to drill a hole in the ground and get some oil out… .

http://www.physorg.com/news494

thats a pretty new writing (june 2005) so Id like to see anything newer that proves it wrong. … [/quote]

Well ethanol.org argues this:

Research studies from a variety of sources have found ethanol to have a positive net energy balance. The most recent, by the U.S. Department of Agriculture, shows that ethanol provides an average net energy gain of at least 67%.

http://www.ethanol.org/talkingpoints.html

Also you link is about his findings, but not peer response to his findings.

[i]Though his work has been vetted by several peer-reviewed scientific journals, Patzek has had to deflect criticism from a variety of sources. David Morris, an economist and vice president of the Minneapolis-based Institute for Local Self-Reliance, has attacked the Berkeley professor’s analysis because he says it is based on farming and production practices that are rapidly becoming obsolete.
“His figures (regarding energy consumed in fertilizer production) are accurate for older nitrogen fertilizer plants, but newer plants use only half the energy of those that were built 35 years ago,” he said. He also cited the increasing popularity of no-till farming methods, which can reduce a corn farm’s diesel usage by 75 percent. “With hydrogen fuel, people are willing to say, ‘25 years from now it will be good.’ Why can’t we also be forward-looking when it comes to ethanol?”

Hosein Shapouri, an economist at the U.S. Department of Agriculture, has also cracked down on Patzek’s energy calculations.
“It’s true that the original ethanol plants in the 1970s went bankrupt. But Patzek doesn’t consider the impact new, more efficient production technologies have had on the ethanol industry,” he said.
Shapouri’s most recent analysis, which the USDA published in 2004, comes to the exact opposite conclusion of Patzek’s: Ethanol, he said, has a positive energy balance, containing 67 percent more energy than is used to manufacture it. Optimistic that the process will become even more efficient in the future, he pointed out that scientists are experimenting with using alternative sources like solid waste, grass and wood to make ethanol. If successful on a large scale, these techniques could drastically reduce the amount of fossil fuel needed for ethanol production. [/i]

Also all of this does not mention waste product which that costs nothing to produce, but is thought to be a big boost to ethanol production.

I wrote: [quote]
Hubbert’s peak was supposed to be a decade ago, and that was a revision from his first prediction of the 70’s. (Though now they say it was just American reserves, and the new prediction was world reserves.)
[/quote]

Gl;itch.e wrote: [quote]

yes his first prediction was for the 70s in america and he got it right… . his prediction for the world was around 1995… . which he got wrong… . but whose to say everyone else is wrong? [/quote]

You didn’t understand what I was saying. My understanding is that the first prediction was the original prediction, and was altered to say it was only American oil, and a new future date was chosen.

Also none of the oil prices of the 70?s had anything to do with a peak. It had to do with both the foolish policies of the American government of the time, (some pumps ran out of oil creating gas lines while others actually had a glut they couldn?t sell,) and attempts by OPEC to hurt America by cutting supplies.

What we are seeing now is nothing different then what has happened in the past, and will happen again in the future.

Let me clarify what I have said before.

I am not saying there will not be a peak. I am saying it is further off then the peak oil crowd likes to imply, and by the time it actually gets here, we will be using heavy oil, oil shale, alternate fuels, and fuel economy will go through the roof.

Hydrogen will become a functioning fuel.

[quote]Jagrazor wrote:
When I recieved the don’t buy gas email, it was the 19th of each month. So how exactly are we supposed to organize if people change the contents of that email? :P[/quote]

These emails are jokes. The gas buying would recover the next day.

It is best to cut usage until prices come down. If you can’t drive less, then get your car in shape. Shut off your car if you are going to idle for more then 30 seconds. Tune the thing up, and keep tires inflated. Acceleration uses about 50% of your gas, so pick up more slowly.

[quote]nephorm wrote:
This is an absurd argument. Please never use it again. Do you use 15 gallons of milk a week? No, you do not. If you do, get a fucking hobby. People making this argument either have not thought it through, or they haven’t got an inkling about economics in the slightest. It has absolutely NOTHING to do with the price per gallon, it has to do with how MANY gallons you require per unit time. If gas were to drop to 50 cents per gallon, but for some odd reason engines started requiring one hundred times as much gas to run, we’d still be in trouble. And gee, milk would STILL be more expensive, and that fact would still be, at best, irrelevant.
[/quote]hah… . ill use it all I like… . if energy investment bankers can use it why the hell cant I?

think about the amount of work you get for a few measly dollars… . you think its expensive? how much energy would it take you and your horse to accomplish what you can in a car in roughly 5 minutes?

its cheap as shit and it really should have been made more expensive years and years ago so that every tom dick and harry didnt go out and buy a car and then move miles away from where they work. …

Mage… . time will tell… . but Id like to know how far your research into peak oil goes thats youve discounted many independantly researched predictions. …

I paid over $3/gallon for the first time in my life today…

[quote]Proteinpowda wrote:
I paid over $3/gallon for the first time in my life today…[/quote]

$2.77 at costco yesterday. I’m hoping it will last me a month. Fortunately, I chose my neighboorhood well. While I pay a little more in rent, I’m able to walk to the store and ride my bike to work and the gym most of the time, saving a lot on gas and car maintnance/depriciation.

Hopefully the economic impact won’t be overwhelming and people will adjust by getting off there fat asses and ride there bikes or take mass transit to get to work rather than continuing to comute while cutting discretionary spending-- not that people couldn’t stand to save more. Of course, most people won’t change there behavior at all because 10-15 miles to work on a bike is just too unbearable for there lard saturated veins to handle. One can always hope for a silver lining even if it isn’t wise to bet on it.

a gallon is roughly 4 litres and we are paying $1.52 a litre atm so consider yourselves extremmely lucky that your government subsidises fuel so much. …

[quote]Gl;itch.e wrote:
a gallon is roughly 4 litres and we are paying $1.52 a litre atm so consider yourselves extremmely lucky that your government subsidises fuel so much. …[/quote]

Not really. If you lived i America you’d realise that were getting screwed. Gas has to be cheap here. There’s virtually nothing within walking distance here. You are forced to drive just about everywhere, and usually it’s pretty far, 20 miles each way on average. Our public transit system blows, and 9 out of 10 cars sold get gas guzzler gas mileage. So in essence were a captive consumer base for buying gas and are taken full advantage of by the current administaration. How else did the oil companies break profit records recently? 7 billion in PROFIT? Ponder on that for a while.

[quote]Gl;itch.e wrote:
its cheap as shit and it really should have been made more expensive years and years ago so that every tom dick and harry didnt go out and buy a car and then move miles away from where they work. …
[/quote]

You aren’t running on all cylinders, are you? Once again, absurd, because the inflation in oil price is artificial, not due to actual scarcity.

Further, I’ve got news for you: the economy isn’t dependent on what “should have” been. We have an economy based on people driving their own cars to work. Period. Fucking with that is fucking with the economy. “Should have” doesn’t enter into it.

[quote]nephorm wrote:

You aren’t running on all cylinders, are you? Once again, absurd, because the inflation in oil price is artificial, not due to actual scarcity.

Further, I’ve got news for you: the economy isn’t dependent on what “should have” been. We have an economy based on people driving their own cars to work. Period. Fucking with that is fucking with the economy. “Should have” doesn’t enter into it.
[/quote]

What i said plus what he said = truf (truth for the overly white and by overly white i mean… aww screw it.