Nonsense, nonsense, nonsense: the myths about high oil prices

The Sunday Telegraph ^ | April 30, 2006 | Niall Ferguson

[Leisler]

There is natural gas off the Massachusetts coast. It is the same field that extends north off Maine and into Canada. The Canadians drill, tap, and pipe the gas south to the US. Now, if fat, drunk, girl killing Ted Kennedy can stop a wind farm off his fambly compound in Hyannisport, what chance do you think offshore gas wells have? FAT CHANCE.

[facedown]

If the oil companies are making approx. 19 cents a gallon (and they made billions) and the government is making almost 50 cents a gallon in taxes...

The oil company profit per gallon is actually about 9 cents a gallon which makes your point even more poignant.

[arthurus]

Liters are bigger than quarts.

[randita]

Environmentalists decry the destruction of the rainforests, yet they advocate wholescale destruction of the rainforests in Brazil so sugar cane can be planted to supply ethanol for the world.

[montomike]

3.66 Liters per gallon means a gallon costs 3.66 X 97.6 pence = 3.57 british pounds.

Exchange rate = 6.52 US Dollars

[SunkenCiv]

Everyone knows supply and demand is a myth -- not a law -- designed by capitalist and their political lapdogs to oppress the workers.

[rimshot!]

I disagree that petroleum and other hydrocarbons are "fossil fuels".

Over 40 per cent of new vehicles sold in Europe are diesel.

[picti]

When it comes to "Global Warming" there's a lot of sloppy speech going on. Are we talking about increases in average global temperatures. Are we assuming that these both exist AND are caused by increasing atmospheric CO2 levels. Are we further assuming that increasing atmospheric CO2 levels are principally increased by human activity such as the use of fossil fuels. Are we further assuming that individual transportation is the prime user of fossil fuels. Is the hypothesis that if we quit driving gasoline powered automobiles the world will cool?
Seems like there's a whole raft of "ifs" and assuming going on.

[Thermalseeker]

That works out at $6.62 a gallon.

And that works out to about $3.50 per gallon you Brits are paying for your failed Socialist system!

[TheBattman]

97.9 pence is not the same as 97.9 CENTS....

[JLGALT]

"If the oil companies are making approx. 19 cents a gallon"

This is not quite right. They make 8.2 cents per gallon!

[Grampa Dave]

The writer lost me when he went into his Enviral Whacko Global Warming Mindset. He obviously never drives out of London. If he did, he would see the big Range Rovers and Lexus SUVs all over the express roads, regular roads and country lanes. Even in London, the BBC cop tv shows have a lot of Range Rovers and Lexus Suvs throughout any part of a show that is out on the streets.

[jwh_Denver]

"Limbaugh says we aren't paying a lot for gas. So it must be true."

Inflation adjusted we are paying less per gallon of gas than we were in 1970.

[jetson]

WAKE UP AMERICA! WE ARE A LAND OF PLENTY ( WITH PLENTY OF OIL) AND OUR GOVERNMENT IS TAKING US DOWN THE EUROPEAN PATH. WE NEED NEW REFINERIES NOW AND ENOUGH OF THIS ONE WORLD BS!

[sgtyork]

good one!

[RightWhale]

Most Americans don't buy oil as traded on the commodity exchanges. They buy some refined oil products. Eventually we will see $3 gasoline as essentially free, and that day could be soon or it could be in ten years, somewhere in there. Oil is one of the great bargains on earth. Electricity is another. Water and air will also eventually be seen as bargains on earth, especially if we ever get to the moon to stay, and to Mars.

[mewzilla]

I disagree with him on two points:

I'll add a third: You don't need to drive a gas hog to be comfy.

[wizardoz]

You're never gonna live that pence thing down. You're gonna be PENCEBOY from now on.

;^)

[AlexW]

"And that works out to about $3.50 per gallon you Brits are paying for your failed Socialist system!"

Gas in all,of Europe has ALWAYS been much higher then in the US.
In Slovakia, the price is about $5.00 per gallon (40 sk per ltr)
I have a friend who is managing director of an Italian oil company, building 40 stations in Slovakia.
I often ask him about the business.
He tells me that they are loosing money on every ltr. that they sell. Naturally, he expects that to change, but he does not know when.

[GSlob]

Sugar cane does not grow everywhere. When there is an economically viable cellulose-to sugar-to alcohol conversion [so that sawdust, grasses, wood shavings and the like could be used as a feed], then ethanol could become the answer. Imagine a paper shredder-cum-still at the office. You shred a report from last year, the contraption hums and wheezes - and there is a pint of vodka coming out. Everyone happy.

[11Bush]

He tells me that they are loosing money on every ltr. that they sell. Naturally, he expects that to change, but he does not know when.

LOL. This guy would have a great future in american politics.