A World Affloat on an Ocean of Oil

usadaily.com ^ | 06/15/2008 | Alan Caruba

[CreativePerspective]

Not to mention adding in nuclear power.

Nuclear Power in France

France derives over 75% of its electricity from nuclear energy. This is due to a long-standing policy based on energy security.
France is the world's largest net exporter of electricity due to its very low cost of generation, and gains over EUR 3 billion per year from this.
France has been very active in developing nuclear technology. Reactors and fuel products and services are a major export.

France has 59 nuclear reactors operated by Electricité de France (EdF) with total capacity of over 63 GWe, supplying over 430 billion kWh per year of electricity, 78% of the total generated there. In 2005 French electricity generation was 549 billion kWh net and consumption 482 billion kWh - 7700 kWh per person. Over the last decade France has exported 60-70 billion kWh net each year and EdF expects exports to continue at 65-70 TWh/yr.

The present situation is due to the French government deciding in 1974, just after the first oil shock, to expand rapidly the country's nuclear power capacity. This decision was taken in the context of France having substantial heavy engineering expertise but few indigenous energy resources. Nuclear energy, with the fuel cost being a relatively small part of the overall cost, made good sense in minimising imports and achieving greater energy security.

As a result of the 1974 decision, France now claims a substantial level of energy independence and almost the lowest cost electricity in Europe. It also has an extremely low level of CO2 emissions per capita from electricity generation, since over 90% of its electricity is nuclear or hydro.

[DaveTesla]

The real problem here is supply and demand.
The demand is up and the supply is down.

Economics 101.

If the government continues to regulate and interfere
with the production and marketing of energy commodities the
supply will farther decrease causing shortages and the
price will go up even more.

Economics 102
http://tonto.eia.doe.gov/dnav/pet/pet_cons_psup_dc_nus_mbbl_m.htm

[kellynla]

“I cannot understand why Obama, Reid, and Pelosi are in any position of power. Are we insane?”

When you have half the population in America dependent on some kind of government assistance; it’s not difficult to “understand” how the “mommy” party continues to rule.

Who says communism is dead.

“Liberalism is just Communism sold by the drink.”
P.J. O’Rourke

[SAJ]

So, who's arguing? The ''shortage'' of supply is 100% and entirely driven by the jackasses in the Regress, at the behest of the enirodingbats.

Drill. Nukes. Coal. Shale. Capacity.

There's the proper energy policy for the US for the next hundred years, in just 5 words.

[DaveTesla]

"So, who's arguing?"
I was agreeing with you.
"jackasses in the Regress, at the behest of the enirodingbats."

It is important that everyone understand that the big communist squeeze is on.
The economic welfare and security of a nation is at risk.

[DaveTesla]

The real problem is the congress creatures are blaming
the oil company's and the market traders for a mess that
they created 100%.

[mysterio]

But there is no fundamental reason for this price level for oil.

Sure there is. It's an essential monopoly good with inelastic demand. We are at peak oil. Daily production is 81.7 million barrels per day. Daily demand is 86.95 million barrels a day.

Gas is expensive because the whole world wants oil and there isn't enough being produced to satisfy demand.

[RightWhale]

There is an ocean of oil. There is oil to fill a six mile cube. A six mile cube is apparently an ocean.

[javachip]

The rest would be paid by you and I.

Actually, we'll pay it twice. Once in our investment, retirement or pension funds and again at the pump when the taxes are passed through to consumers.

Only in liberal dimowit fantasyland thinking can you lower prices by raising taxes.

[Mogollon]

but most Americans are blissfully unaware that it requires 1.5 gallons of ethanol to produce the same energy as a gallon of gasoline.

They are also unaware that it takes 1.25 gallons of gasoline to produce one gallon of ethanol.

[Nathan Zachary]

"Then, just to make matters worse, the government requires that every gallon of gasoline include the additive, ethanol, which reduces its mileage and increases its cost."

Actually, it's cheaper than regular gas, not to mention cleaner. And if people would tune their engines right, would find it provides more power which makes consumption about equal to regular gas. If E85 was readily available, it would enable engines to be built developing much more power and much better fuel efficiency. We will see hybrids using E85 in the very near future.

[JasonC]

Economics was founded by the empirical observation that long run prices are dictated by replacement costs.

You are the one peddling ignorance here.

[Nathan Zachary]

"They are also unaware that it takes 1.25 gallons of gasoline to produce one gallon of ethanol."

Pure B.S.

[Nathan Zachary]

We aren't at "Peak oil". Oil companies can increase oil production to meet any demand. The simple truth is oil production is held as near demand as possible in order to hold the price as high as possible.

Plus there is the problem of refining capacity, which IS near peak capacity.

[JasonC]

False, demand is 85.2 million bpd and that includes ethanol and biodiesel and other synthetic liquids, which are not included in the 81.7 supply figure. The Saudis are also adding 2 million bpd over a year, always could, purely a matter of choice. Ethanol is growing at over 8% a year from over 1 m bpd levels.

Demand is moving no faster than population growth world-wide, and peak argument are hopelessly wrong. Proven reserves are rising faster than demand or use, enough so that known reserves as 10% higher than they were 10 years ago, despite all the use in the meantime. 20% higher with newly recoverable forms, economic at current prices (or even well below them).

[SandRat]

Only in liberal dimowit Socialist fantasyland thinking can you lower prices by raising taxes.

[ChildOfThe60s]

I think you’re arguing semantics here. Or perhaps grammar.

“its current price” is referring to oil that is being sold now. Not oil in the ground.

He’s not commenting on the (potential) price of untapped oil. He referring to what would happen to the current market price of oil if more of the untapped (but available) oil was being accessed & produced.

[Eric in the Ozarks]

You need only check the CFTC’s “Commitment of Traders” report.

[DouglasKC]

btt

[SAJ]

Sure, Eric, absolutely. Being a trader, I pretty well **must** check COT every week.

That said, my old trading motto applies: when the public start yammering about ''the price of X is too high (or too low)'', it's time to start looking about for careful ways of fading their 'opinion'. The public -- one way or another, and sooner than later -- are always wrong, and can be (and have been) wrong for quite enormous lengths of time, which of course makes fading them a very useful tactic.

FReegards!