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Re: Life After The Oil Crash (Score: 1)
by ElectroDynaCat on Monday, March 01, 2004 @ 11:14:25 UTC
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Its not that we are running out of fuel, its that the cheap and easy fuel is about used up. Coal? Yes, but how does that coal get to the power station where its turned into electricity, by a diesel engine powered railroad train. If we could have made oil out of garbage for $10 a barrel, the Oil Companies woud have gotten into the business long ago. The wells are not going dry, they're just producing a much greater fraction of heavy oil, which is impure and needs much more intensive "cat cracking" to make the stuff that we put into our cars and trucks. That "cracking" consumes energy and leaves less product for every barrel pumped out.The catalysts used for the process are rare and expensive. There is also going to be an environmental disposal problem with some of the nasty junk thats left over from the process. There are a lot of difficult decisions to make even if we pursue the path that Technophile has outlined, and as usual not everyone will be pleased with the results. We are going to be using oil for the immediate future no doubt, but we have never planned to have a buffer against steep price increases which are bound to occur shortly. European Governments, faced with an inherent oil shortages almost from the beginning adopted a policy of high taxation to stifle demand, and used the revenues to support mass transit and other common sense energy conserving programs. When the spikes occur, european governments react by lowering the taxation to keep the price relatively constant, with alternatives to the automobile available, price hikes become almost invisible.


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