Oil prices rise to 13-year high, threaten economy

The Washington Times ^ | March 18, 2004 | Patrice Hill

[steve86]

I'm not any expert but here in the west anything that touches groundwater has to get permits up the wazoo, or that's the impression I get. Must be different where you live.

[neutrino]

And I do believe it is going higher - quite a lot higher.

In fact, I'm betting on it.

[American_Centurion]

I'm no economic genius, that's for sure.

But it seems to me that if I were an oil company, and crude was costing 38.00/barrel and I could build a plant that would produce that oil for less than half I would do that.

If you read the article the oil this thing makes is like a mixture of fuel oil and gasoline approximately 50/50.

That takes a heck of a lot of the conventional refinery operation out of the picture.

There is the question of where we would get the base materials for plastics, but I think the Canadian oil sands and shales would be able to yeild the raw materials for that.

This thing makes any waste product into oil, gas, and solids that can be used for fertilizer. This makes a heck of alot more sense than revamping our energy/fuel infrastructure to handle hydrogen (which isn't an energy source, but you know that already).

[RightWhale]

Check and see if the cost of production of oil includes the initial cost of the plant. I suspect it does not. It probably also doesn't count the cost of gathering and handling the garbage.

[freethistle]

According to Forbes, this is the result of Hedge Fund speculation:

Red hot crude oil prices have surged as much as $8 per barrel above their fair market value due to an influx of money from speculative hedge funds, energy experts said on Thursday.

"The fundamentals are bullish but it is hard to justify $38.00 (oil prices)," said Bill O'Grady, director of futures research at brokerage A.G. Edwards in St. Louis. "I see the fair value at $30 to $31."

[kezekiel]

Looking at that chart, it looks like gasoline spent much of the period from 1980-2000 under $1.50/gal, and most of the last three or four years over it.

[Eric in the Ozarks]

That's probably a good idea anywhere. The geothermal wells enclose tube bundles full of environmentally safe antifreeze solution so that, other than the drilling, there should be no on-going contamination.

[Eric in the Ozarks]

Not hot springs. Just the temperature of the ground at 200 feet.

[Eric in the Ozarks]

Is Enlink the brand name ?

[RightWhale]

How much of a temperature difference does the system need to function?

[WhiteGuy]

So much for the blood-for-oil argument.

Why would you assume that the "Blood for Oil" scenario means "war for cheap oil"?

The way I understand those who espouse this viewpoint, it's more like "War for Oil PROFITS".

THe argument has been made that the Bush family big oil interests, the Cheney family big oil industry interests, along with Middle East partners are all making a killing as a result of the war in iraq.

Add in the profits being reaped from the defense contracts and you have the makings of a fairly big "war profiteering Scandal".

Of course no one, especially me, believes this, do they?

[raloxk]

China is an energy pig.

GDP there is growing 8% annually but energy consumption is growing more than 10% annually. In the US the numbers are about 3.5% annual GDP and 1% annual energy demand increase.

Sharp oil price increases will really hurt China, which probably has an economic bubble building anyway.

[raloxk]

"For low and mid range workers (unskilled and semi skilled) it is around twice as expensive in labor hours."

That isnt true. Someone posted here that in 1982, abg price per gallon was 1.29. Today it is 1.75. Divide that by the lowest wage, minimum wage which today is 5.25 and in 1982 was 3.35

3.35/1.29 = 2.60 gallons per one hour of work
5.25/1.75 = 3.00 gallons per one hour of work

It is cheaper today than in 1982. I dont know that minimum wage was in 1972 or average price of gasoline

[raloxk]

great chart thanks

[Dane]

That isnt true. Someone posted here that in 1982, abg price per gallon was 1.29. Today it is 1.75. Divide that by the lowest wage, minimum wage which today is 5.25 and in 1982 was 3.35

Actually you should use the avg. wage. It is much higher than the minimum wage.

[raloxk]

"According to Forbes, this is the result of Hedge Fund speculation:"

are you an expert on this? can you explain why this is happening?

[kezekiel]

http://www.enlinkgeoenergy.com/

[epow]

Adjusted for inflation, the price of gasoline is about the same as it was in '72-- is this right?

Not in this neck of the woods. I was paying about $.31 per gallon for regular in 1970 and it's .$164 now for unleaded regular. According to the inflation calculator it should be $1.46 in 2004 dollars to equal the 1970 price. $1.64 is about 12% higher than it would be if the price of gas had increased at the same rate as inflation.

That isn't good, but it's not as bad as it seems at first glance. The gas we buy today is cleaner burning and the lack of lead means longer engine life. Also, modern auto engines are far more efficient and last almost twice as long as 1970 models did. IOW, don't despair, things aint as bad as they seem.

[templar]

That isnt true. Someone posted here that in 1982,...

It is true. The post was refering to 1972, not 1982. Try reading a little more closely.

[Asclepius]

Add in the profits being reaped from the defense contracts and you have the makings of a fairly big "war profiteering Scandal".

Of course no one, especially me, believes this, do they?

I know I sure do. And President Bush himself remotely piloted those two aircraft into our world trade towers while humming the battle hymn of the republic.

/sarcasm