Thursday, November 11, 2004

Oil prices up getting you down?

LOL. It is simply amazing how dumb americans are. That being said I will waste my time trying to explain the price of oil for no other reason then I just can't sleep.

First you have to understand some 80 million barrels of oil pumped out of the ground each day. The process of oil getting pumped out of the ground and getting to your gas tank is far to long to explain.

Though I will try to explain some of it to you. First you guess where there is oil, then you survey for it, then you get the rights to pump then you set up rigs and start drilling. Maybe you get lucky and hit some, you hope the oil keeps pumping and doesn't dry up. Then you take that "Crude" oil put it in a tank and have someone pick it up and transport it to a refinery. Then you go through a bunch of processes like fractional distillation. Then gasoline is mixed or "blended" with ethonal, MTBE and other aditives for various reasons. It is then pumped into a truck driven across the country and then you get out of your car and pump it into your car and bitch that they want $2.00.

Ok. Now if you learned anyting in the last paragraph don't bother reading more because you are an idiot. Everything stated above is common knowledge. It gets complicated here so most of you who say war is for oil you might as well stop reading because it will be a waste of your time because you just won't "Get it".

When you talk about 80 million barrels a day, that is a huge number. In china they use about 2 barrels per person per year. In mexico it is close to 7 and in the US it is between 25-30 barrels. So yes we use a lot in this country. It is a problem and we will have to work on it sooner then later. I myself am a huge supporter of bicycles and not just because they are fun and great excersize but they actually transport you from one place to another. That being said it won't happen.

See oil is not bought and sold one gallon at a time like you buy gas. Oil is a commodity (yes you have all heard that term). That means that the people who set the price are not really the people who buy it. People make money buying contracts and then selling them higher. There is a guy in a office tommorrow who will make millions because he knows that the people who make your gas will pay more for it then the people who sold it first. I know that is hard for you all to grasp. But market speculation is a major part of oil prices and if you don't get it think of it as soda in a fast food joint. The cup cost 5 cents the top cost 1 cent the ice cost 1 cent and the water and filter cost 1 cent, throw in the straw and the syrup and a large soda cost about 10-15 cents to make, but for some reason we pay 1.49 for a large soda and buy value meals that basically give us a soda for free. Why do we pay so much?? Well were there and we want a beverage and it seems expensive but we can afford it. It is only a couple bucks. The funny thing is you can go to a gas station and buy gas for 1.59 (well maybe more) and the stuff you pump into your tank has been sucked out the ground shipped all over the place, refined and filtered and mixed and then shipped a crossed the US then the federal government and state governements put a extra 50 cents in tax on it and the gas station makes 5-10 cents for a whole gallong. The soda which is mostly water that comes out of the ground right there and cost 1.29 for a large and is such a bargan cost between 5-10 cents. So why do you we think $2 gallon is expensive for gasoline which is so hard to make and ship and we need to travel while .99 cents for not even half a gallon of soda which only dries us out and in no way good for us or needed is a bargan?

There isn't just one type of oil either. Some of you have heard the term "light sweet crude" when you hear oil prices that is what you hear. Why because it is the most volitile. Why because it is the most wanted. It is the oil at short supply. See the light basically describes the viscosity. Light oil can be like water and can even be clear. Oil can get dark and thick like tar or even cement. The sweet talks about the Sulfur content which can be a bitch to get out and is very annoying. It is a main ingredient in Acid rain. Now everyone wants Light sweet, for example china. 80% of the oil they refine is light sweet. The problem is few people pump light sweet oil. When we hear OPEC (Organization of the petroleum exporting countries). We think of a bunch of guys in the deserts with towels on there head. We don't realise it is actually 11 nations. Saudi Arabia, Kuwait, UAE, Iraq, Iran, Qatar are in the middle east and Lybia is pretty close Algeria and Nigeria are in Africa, Indonesia is a large group of island above Australia and Below Asia. Venezula is the last one and it is in South american. The us uses over 20 million barrels of oil a day about 2.5 million comes from the Middle east reagion. Why???? Because they don't have light sweet Crude oil. Only modern refineries or Recently Updated refineries have the ability to extract gasoline out of heavy oil or take the sulfur out effectivly. Seeing that we have not built a refinery in 25 years and closed countless refineries we actually now are importing more and more refined oils. That means we pay other nations now to refine oil and ship straight gasoline which trust me is not easy, cheap or smart.

I don't want to bore you any more, well maybe I do. But the Viscosity of the oil (how thick it is) is directly related to the size of the HydroCarbon Molicules. THe more carbons in the chain the longer the molicule and the thicker the oil. for example Gasoline has a 8 has 8 carbon. Diesel and heating oil (same thing really just heating oil is died so you don't have to pay state and federal tax on it) is a 16 carbon HC (Hydrocarbon [made up of hydrogen and carbon]). Grease and other lubercants 36-44 carbons, and 70 or more carbons are things like tar, asphalt, coke (not the kind you drink).

Why am I telling you this. Well because you need to learn this stuff, well you don't but you should. Heavy oil (thick) had long molicules remember. More carbons. Gasoline only has 8 carbons. ohhhhh now you are getting it. You get more gasoline from lighter oil. Well you can get Gasoline from heavy oil, but you have to use some expensive and complicated "magic" to squeze it out.

And seeing that very few of our refineries are new enough we will be buying more and more of our gass from other nations..

As I said light sweet crude is the price you hear all the time. Yah it is around $47 a barrel (42 gallons) but what you don't hear is heavy sour or other types of oil prices. They are much less because there is less of a demand.

So why the hell are prices going up. Well for any idiots that are still reading, I will say China, that is what I have been telling people for a year and now finally you her Lou Dobbs talking about it. yup he is a fast one. China is growing above 8% a year. That is just GDP growth the amount of oil they are using is growing to fast to measure. they use to be able to export oil but now they are importing. China has a huge poplulation of about 1.3 billion the us is about 295 million. Remember they use about 2 barrels of oil per person per year. If that goes to 3 barrels per person per day that is an extra 1.3 billion barrel per year. The world only produces 30 billion a year. That means if china went to Mexico's per capita usage you get an extra 5 barrels per person and thus 6.5 billion more barrels the world needs to pump out. The problem is all the wells around the world are producing less and less. There are few areas of un tapped oil. Long before we actually run out of oil prices of oil will soar. We are now at that point. China and India, eastern Europe and Africa are becomming industrialized in a big hurry. The world is in for a big shocker. China is smart actually they just started making there own oil reserves similar to what we have on the gulf coast. President bush is also smart and is filling that reserve as fast as possible. Of course we are filling it with oil no one wants mostly from the middle east. Yah it is that thick heavy sticky sulfur rich crude. So it isn't driving up cost and openning those reserves will have no effect on the global price of crude oil and have no effect on light sweet crude. SOOOO opening the reserves won't help. No one in the world wants oil prices this high. it is at the critical point where people start to look at alternatives. The democrates in the senate won't be able to block it now. Look at HR 4520 the jobs creation bill. The republicans finally were able to get tax incentives for Bio Diesel and Extend ethonal tax incentives... A big step which our president has been trying for sence he took office. Ethonal is in my opinion the next step and I think Bio diesel is the future.

Bio Diesel is just cleaner, cheaper, easier and faster to make. Not to mention Modern Diesel are simply amazing and get over 100 miles to the gallon. If you are wondering why we don't drive diesel in this country it is actually really funny. Sulfur in diesel is a natural lubricant and is needed in old diesel engines. LOL. This cracks me up. Sulfur can't be taken care of with a catalayic converter or anyting and sulfur is smelly and bad for the enviroment. Remeber that acid rains stuff and it is toxic to you me and the dogies. So years ago they wanted to do something about sulfur emmisions and instead of forcing refineries to take out the sulfur they just put limits on emmisions. LOL. But just on cars. Trucks can still burn as much Sulfur as they wanted. Thank you Carter (fucking morons). So while Europe cleaned up there diesels and modified there engines we just kept burning the sulfur. Even thought .4% of biodiesel would of replaced the lubricating effects of sulfur and would add next to no cost and would give farmers a reason to grow corn and they wouldn't even have to use pesticides because who cares if the bugs eat a a little people aren't eating it. it is just going to get squished into oil and then made into biodiesel. Anyways biodiesel didn't really come into being until clinton was in office and he didn't give a damn about the economy or the enviroment or farmers... The point is someone got Clinton to do one good thing 2 weeks before he left office he signed a bill which republicans have been tring to get passed for years. And that was to Clean up the diesel. So as of 2006 Diesel fuel can only have 15 ppm (parts per million) instead of the current limit of 200 ppm. That means trucks are going to smell better. You and I can finally get diesel cars with 100 miles to the gallon. Furnaces in New England will smell better. There will be less acid rain. Farmers will have to grow corn to get the bio diesel needed to keep old engines from burning out. And the democrates finally allowed a vote on a Jobs bill that will incetify the creation of Bio diesel. So we are heading in the right direction.


Ethonal is nice because I can convert you car to ethonal or mostly ethonal in about 1 hour. And of course ethonal is very clean and actually many say can be made cheaper then gas from heavy oil. That being said it is no wonder that 10 ethonal plants are bing built right now and in the last 3 years about 20 have been created or enhanced. less then 80 have been made in the last 30 years and very few of them for fuel oil.

Ethonal is a alcohol (grain) and yes you can drink it. But before you get to excited, you will not be able to drink the ethonal out of the pumps, it will kill you. They will mix it with gasonline or methonal or something that will killyou. So if you are stupid enough to drink the stuff well Darwin has a law for you...

Now if only we can get ANWR opened up life would be good. Yes I know there is a bunch of tree huggers that don't want it, but anyone who knows about it realies it is the costal reagon of ANWR and the foot print (where the metal meets the ground) will be about 2,000 acres or about 3.125 sq miles. To put that in referance alaska is 570,000 sq miles give or take. Yup we are getting all upset over 3.125 sq miles out of 570,000 sq miles of alaska. The animals don't mind they are never hurt or effected by us being there. The rigs are the cleanest in the world and the more we pump out of the the less other nations need to pump which is better for the enviroment as a whole. Most nations just release the natural gas the US actually sticks it back in the ground to pump out later. We have a over 200 billion dollars worth of natural gas in alaska which we have stuck back in the ground and are working on a way of getting it to our homes. Remember we have to heat our homes and natural gas is cleaner then wood or corn. and much cleaner then coal or oil.

Ok back on track why ANWR. We get 2.5 million barrels of oil from the middle east. They estimate between 1 and 3 million barrels could be pumped out of anwr. We already have a huge pipe line that goes near anwr that we coud tap into and many say with in 4 years we could actually get some oil out of the ground. Personally I think 8 is a better number to use but either way the sooner the better. BP a british company has the right to mine of the coast and is begging to do it. That means in the middle of floating Ice mountains and giant moving sheets of ice there will be off shore oil rigs to get at the oil in ANWR. Canada doesn't have a pipe line like we have but they are working on how to drill and store the oil out of ANWR and then worry about moving it later. Yup, ANWR buts right up against Canada and on the other side of an imaginary line in the snow Canadians want to drill the same oil we freak out about in this country. But the democrates in the Senate and house won't let us even survey the ground to see what is there.

The world has few un tapped oil reserves. Russian, Suadia arabia and a few other places have some oil. Alaska is a big one. And we should all get the democrates to get a clue or we will be buying more crude oil. Is ANWR going to fix everything, no but damn it is ours, we could do it better, cleaner, cheaper and faster then any other nation. Why should we just let other nations have it... Oh btw the people who drill for oil are the same people who buy food and cars and most likely what ever you do for work they some how will give you some of there money. Oil drilling and pipline jobs are good jobs. They are manifactuing jobs, drilling for oil is good work. why are we going to out source it to other nations that will only screw it up.

Oh and buying oil... LOL Few of you know this but the high dollar of the 90's killed this economy. It forced jobs over sea and made our goods more expensive. Lucky we have a administration that understands that a weaker dollar is a good thing to working folk. That is a whole other topic. But the point is the dollar is weaker and seeing that we import 65% of our oil we have to buy it. That means our weak dollar doesn't go as far which means we need more dollars which drives the cost up. In constant dollars Oil really isn't that expensive now. If we had a few more modern refineries, if we used diesel more, if we used ethonal and biodiesel more, if we all just cut back a little oh and for god sake if your bolier goes out look into geothermal heat pumps, they work just as good in New Enland as they do in florida and they will actually cost less then anything else in the long run.

Ok. My point is simple the world is using more and more oil and we just can't pump any more out. We don't have the right refineries we use way too much oil to get around, We should heat our homes with eletricity (geothermal heat pumps), natural gas or corn. We should Get more efficent cars (that run on diesel) we should stop buying SUV (i think you are a looser if you drive one). We should ride bikes more, walk more, (believe it or not walking is a form of transportation not just for exercise). I love people who try to find a parking spot close to the gym so they don't have to walk as far to work out. AND most of all we need to start working out of our homes more. Get your boss to agree to one day a week working out of your house. Trust me the phone works just as good in your house as it does in your office. So if you can work from home do it. And do it as much as you can. One less car driving to work will help. Oh and go grocery shopping with your friends buy more frozen food, buy more bulk and make fewer trips. If you steam your veggies like me, you shouldn't be able to tell the difference between frozen or fresh. Frozen chicken is just as good, healtier and easier then fresh chicken. The only thing that are better fresh are spices and most you morons don't buy fresh sage do you?? And why are you buying it they are so easy to grow. ERRR Oh and don't go to the bar, driving drunk is a bad idea and there are only loosers at bars. Stay home have your friends and neighbors come by, cook out in the back yard. Don't go to movies down load them illegally online and watch them before they get to the theaters. Oh and insulate your god damn houses. Espcially doors and windows. Look into solar heat and lighting. Get a digital thermostate and figure out how to use it. Use the Microwave more espcially in the summer and use the grill year round, yah you can pull it in garage if you have one. Cooking on an open flame is healthier, faster, more efficent, cheaper and I think better tasting. There are less pots and pans to clean up, less water, less hot water, less soap going into the ground and so on. what else... OH your tire pressure, Get a 2 dollar pressure gage and keep your tires properly filled they will last longer and you will use less gas. OMG I can't believe I forgot, Compact Flouresants.... I once heard if we all used flouresant lighting we wouldn't have to burn one once of coal. Now I don't know if that is true but I could see it. I know, I know they hurt your eyes and give you a headache.. So does sun light or the TV. Incase you don't know TV's (most of them) use floursant and they are interlaced... On and cancel your newspaper subsciptions. I used to work for the newspapers.. What a waste. They suck at reporting the news, the radio and TV are good at it and the internet is even better. All the commics you want are online and soon most classifieds will be online. Just cancel your subscription tomorrow and stop killing all those trees and funding stupidity.. I know I know it makes you look smart to read a news paper. Honestly it makes you look smart to morons. Most smart people look at you and laugh in pitty. Yup we do.. So do you want stupid people to think you are smart and smart people to think you are stupid? I didn't think so.. Oh and for god sake get a dish rack and wash the dishes by hand. Drink more water and use the same glass day after day after day. Stop buying bottle water. Get a filter already. Do you have any idea what they do with those plastic bottles you recycle??? lol.. Well lets just say it isn't good, your actually better throwing them in the trash trust me. Oh and if you have a fire place Get a wood stove incert. They are safer, they work better, they actually heat your house, you will use much less wood and need to clean out the ashes much less.

Ok I am done for the night I could go on and I really want to, but no one will read this anyways... Sorry about the typos I don't care.

-mike