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

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

[Mr. Silverback]

I think petrodiesel, then a transition to biodiesel, is the answer.

I may have a conflict of interest here (I am managing editor of an agricultural trade magazine these days) but I agree. I've seen figures that indicate that we could not convert to ethanol or any significant mix of ethanol even if we converteds all our arable land to corn. On the other hand, you can make diesel out of almost anything that has plenty of carbon. Here's a post from a blog I contribute to occasionally:

Alternatve energy news from NRO Online, just for a chuckle

RENEWABLE ENERGY BREAKTHROUGH! [Cosmo ]

Important news! Don't let the mainstream media censor it:

 

A German inventor says he's found a way to make cheap diesel fuel out of dead cats.

Dr Christian Koch, 55, from Kleinhartmannsdorf, said his method uses old tyres, weeds and animal cadavers.

They are heated up to 300 Celsius to filter out hydrocarbon which is then turned into diesel by a catalytic converter.

He said the resulting "high quality bio-diesel" costs just 15 pence per litre.

Koch said the cadaver of a fully grown cat can produce 2.5 litres of fuel - meaning around 20 cats are needed for a full tank.

He said: "I tank my car with my own diesel mixture and have driven it for 105,000 miles without any problems."

Annelise Krauss of the Dresden Animal Protection Association blasted Koch's new diesel though, saying: "This is as bad as experimenting on animals."

 

Update on Friday, September 23, 2005 at 12:41AM by [Your Name Here]

Wow! We've gone from "Put a tiger in your tank" to "Put a tabby in your tank!"

Sorry,  I just couldn't resist.

Christopher

_________________________________________________________ Of course, Annalise Kraus shows just how dumb you have to be to be a hardcore animal rights activist. The moron apparently doesn't even know that dead things don't experience pain.

[listenhillary]

Imagine a paper shredder-cum-still at the office

I tried imagining it. The image was disturbing. ;?)

[Mr. Silverback]

The SUV is in fact a kind of hybrid - part vehicle, part living room.

I don't care who you are - that's funny!

When my bro-in-law bought a Hummer, I walked into the family Christmas party and announced in my parade ground voice, "Attention to the owner of the tan house, license number A123456, parked in our lot. Your lights are on."

[AlexW]

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

I looked up my notes from this week.
He makes 70 Euros per 1000 ltrs ( about 40 cents per gallon)
That is GROSS profit. From that comes ALL expenses of transportation, and cost of operating the stations.
In Austria, just a few km from here, they gross 90 Euro per 1000 ltrs. We can assume that they might make a net of maybe 10 Euro per 1000 ltrs of gas.

[GSlob]

"Imagine a paper shredder-cum-still at the office
I tried imagining it. The image was disturbing. ;?)"
Well, maybe it should have the built-in chiller and a vending machine tied into it, so that vodka comes out chilled and one could get a pickle or a sandwich as well. But that would be a luxury model.

[Mr. Silverback]

We are not paying much compared to the Carter oil crisis, and to reach the equivalent, crude would have to be at $90 per barrel.

We are not paying diddly compared to Europe, as this article points out.

The oil companies are making 9 cents a gallon in profit on gas.

Sure sounds to me like Limbaugh is right. We are at or near the top of the high demand/low supply wave, and we will soon start down toward the high demand/high supply trough. The wavelength on these cycles is about 25 years.

[P.O.E.]

I have an innate talent for solving several problems simultaneously. With all the drunk-driving laws, I do all my drinking at home, thus saving on gas.

[Mr. Silverback]

No, taxing is not the solution.

[Mr. Silverback]

And kindly note, and note well-- the first reply to this post ( when gas was $1.45 a gallon ) was derisive... so, who's laughing now?

Not I! Your points are excellent.

[Eye of Unk]

And I thought the real reason of the high gas costs was to put the mindset of the US into believing its all Irans fault and that if we go to war with Iran, invade and topple the regime like we did in Iraq the price of fuel will magically go back down.

I guess I must still be eating stupid food.

[Ghost of Philip Marlowe]

The reports I have read indicate that it requires far more energy to produce biodiesel than it produces, and far more than it requires to produce gasoline.

If you don't believe in global warming (as being caused by Man's activity) what's wrong with gasoline? With catalytic converters, exhaust is almost entirely CO2 and H20.

[slowhandluke]

Would an economic model suggest that, since the price has increased sixfold in the last eight years, the supply should have declined sixfold during the same period? I don't buy the argument that global demand is driving prices up without a significant reduction in supply......

It's a ratio problem, price is related to the ratio of demand over supply, though not linearly. It doesn't matter if the supply goes down or the demand goes up, or both. Either will increase the ratio of demand over supply which will drive the price up.

[marblehead17]

ping

[Mr. Silverback]

The only thing wrong with gasoline is the places it's being pumped out of the ground these days.

[Slings and Arrows]

:^D

Very good!

[backhoe]

Your points are excellent.

Thank you- I do appreciate that.

[norraad]

Pre-saxly, we have as much crude in the ground as the "evil-doers" do.

Someone high up, related to crazy King George the III, knows this ,oh, so, well.

This whole thing is being manipulated by powers that be who kiss towelheads on the lips & other places.

Ok, Bushbots, Rushpots, & 'tards,etc., flame away.

[fabian]

the thing that I don't get is that he says the high prices are a result of supply and demand but demand hasn't gone up that much in the past month or two has it? I mean we went from around $2.00 to $3.25 very fast.

[norraad]

Well, when you listen to exspurts, you have to look at the word itself.

EX = is a has been, SPURT = is a drip under pressure.

[hosepipe]

The price oil in England is exactly the same as the price of oil in the U.S.... Its taxes that is/are the difference.. Predatory, parasitic taxes.. Taxing any energy in any form punishes "the People", especially poor people.. Its a punishment predatory and parasitic.. Other than that the price of oil and products produced from oil is supply and demand..

Any economy is punished by predatory taxes.. and ANY tax on any form of energy is parasitic.. But then Slavery by Givernment is parasitic, socialism is parasitic, and most in URP and increasingly in the U.S.. socialism is viewed as beneficial.. when its parasitic..

Taxes on energy, any form of energy and products made from that energy saps the energy of that economy.. and punishes the People.. that ultimately pays for everything. Givernment OWNS nothing, all givernment has is what it TAKES from the people.. by parasitic means.. by taxes.. BUT taxes on energy ANY energy saps the very economy of that givernment...

Tax other things, but taxing energy is quite STUPID... and is counter-productive.. even for the givernment..