Posted by: drgeophysics | March 17, 2012

Bubbles in oil prices — explained

Enjoying the run up in oil prices while natural gas prices are collapsing?

Wondering why refineries on the East Coast are shutting down because they are unprofitable?

Here are some in great posts relevant to this.

Chris Cook: Part 1 , Part 2, Part 3

The comment sections are worth reading in these also.

You should check this site out also.

This is a key article,  while this is the slightly longer version, stay calm while reading all this.  Clearly inefficiency is our common enemy.

Another look at oil prices.

Noting that our global society burns roughly 89 million barrels of oil a day: As one of the comments in the third Cook article state:

“To substitute/replace JUST one million barrels of oil per day, or JUST 1/89 of current global supply:

• Coal-to-Liquids: 200 million tons of coal or 2.7% of
world coal production
• Natural Gas: 50 million tons of oil equivalent or 1.7% of
world natural gas production + massive infrastructure
• Biofuels: 1.6 million barrels a day or 220 million tons of grains or 9.7% of world grain production
• Electricity (thermal equivalent): 220 terawatt-hours or 1.0% of world electricity generation + massive
infrastructure transformation
• Wind Electricity: 100 giga-watts or 50% of world total installation of wind power + massive infrastructure transformation”

The Bulletin of the Atomic Scientists has a nice review of energy, including the eye-popping 7 to 1 ratio between the price of oil-to-gas.  Bottom line–gas will dominate.

It amazes me that decisions that will have a generation of consequences are being taking in such a flip and careless way.  There is a very big problem with the public believing anything, the media continues to find a less accurate and less intelligent way to present everything.  Science, which was a light to the future, has become a method to be avoided, or relegated to absurd discussions.  Talking about Astronomy:  Be sure to include a discussion Astrology, no one can know which is correct, that would be impossible.

This is worth reading.

Enjoy the Spring.


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