Oil..The Big Picture

[tabs]

Here are some stats from the CEO and Chairman of XOM.

The world uses 80,000,000 barrels of oil a day. The USA uses 16,000,000 barrels of oil a day or 20%. Japan imports all it's oil, China and GB are going to be importing oil very soon.

XOM is the 2nd largest corp in the world after Wally World and has a 10% share of the oil/energy market. It sells 1,000,000,000 gallons of "product" every 3 days. Has 3000 gasoline stations in the USA. Also remember that oil is used in most of the products we use in our daily lives..Plastic etc

It would take 84 square miles of Solar panels to equal the energy/gasoline sold at ONE XOM gas station per day. It would take solar panels covering LA to equal 6 gas stations, and the area the size of NJ to equal 300 stations. The USA has apx 30,000 gasoline stations.

The point being here is that alternative fuel sources can't match the scale of energy needed to supply the world economy.

He further stated that XOM is in the energy business and with their resources would buy into any viable energy producing business. That XOM was exploring alternative fuel sources starting 30 years ago. That XOM spills one teaspoon of oil for every 1,000,000 gallons of oil it handles, which is the best in the business.

That the reason why a barrel of oil is nearly $40 is that speculators have entered the market due to the political instability in the world, and that he suspects that the price of oil will decline. That there is no shortage of oil in the supply line. Tha the USA needs an "Energy Policy" along with a water and human resources policy among others. At this point we have no real policies. That since we need oil to keep the economy going it is best not to be dependent on one source of supply and to be able to get oil/energy anywhere we can if needed.

What struck me is the scale and complexity of the energy issue and that there are no simple answers to solve the problems.

[SRISER]

Good stuff Tabs. I think a lot of the eco's out there forget that oil is a natural substance that we use to our benefit. I wonder if we switched back to wood how polluted our air would be.

Our air/water is cleaner than it was 20 years ago.

Our cars use more recyled material than they did 20 years ago

Engines are cleaner and more powerful

A global ICE AGE was predicted in 20 years if we didn't take radical action. No radical action was taken, 20 years have passed and there is no ice age. Now they suggest that if we don't take radical action, global warming with occur...well? Which is it? Ice age or global warming?

[s_wilwerding]

I heard a statistic last week that cars today produce 97% less emissions than cars 25 years ago. My grandfather tells of when he was a kid in the Midwest, new fallen snow would quickly turn black from coal soot. I don't think emissions now are much worse than they've ever been.

[island911]

So an oil-painting of a Rose then?

btw, what was up with his lip? distracting, like Gorbachovs splotch, and "The Donalds" hair . . .hmmmm.

Anyway, Great post, tabs. I keep saying, "alternative energy" will become more commonplace, as soon as the expense of oil-energy surpasses it. Note; With the heavy tax burden on oil, and cultural perception, "alternative energy" has "pushed" around here. Batteries are still made of heavy metals though.

[dd74]

Great stuff, Tabs. And Glen, I agree with you, but that means we'll have to endure more pain and yo-yo games from OPEC, I imagine.

But policies and a good deal of infrastructure change is needed. Now, where to begin these changes...

[Moses]

Great read, Tabs.

I am always surprised by the negativity surrounding nuclear power. It's the ultimate alternative energy. Safe reactor design is critical, but not impossible. How many have died in coal mines? How many lives are lost every year to refinery-related cancers. All energy sources are potentially dangerous. Seems to me that the current industrialization of the third world will make the demand for crude soar. France is about 80% nuclear. I'm guessing nuclear energy will be a big part of the solution in countries that can afford the technology.

[Erakad]

Interesting stats, but they really beg some questions. I would bet that ANY company looking for alternative energy sources for the past 30 yrs, most likely has found something. Hydrogen comes to mind. The question is, why haven't they started marketing some of these alternate sources. Dollars come to mind. I'm willing to bet XOM has the alternate energy solution...or has a real good idea where to go, but with 3K gas stations and with selling 1B gallons every 3 days, they really have no motive to market those other sources. It's just not profitable. It just doesn't make business sense.

I for one would like to see more info on hydrogen powered vehicles. I heard that Arnold S. was going to convert his Hummer to hydrogen...I guess that gives H2 a whole new meaning.

[island911]

Originally posted by Moses
. . ..
I am always surprised by the negativity surrounding nuclear power. It's the ultimate alternative energy. . . ..

Centeralized power production has one BIG new dissadvantage - terrorism. Even hydro falls into this catagory

Of course if a dam is breached, we have a relatively temporary big problem. Other is chernobyl.

Stratigically, many small decenteralized energy collection points will be most capable of surviving unfavorable conditions. IMO.

edit: geez i'm slooopy typpst

[island911]

Originally posted by Erakad
. . . I'm willing to bet XOM has the alternate energy solution...or has a real good idea where to go,
. . .

Yeah, the solution is pulling, out of the ground, this black hydrogen-carbon goo . . .refining it for all those cars that have been smartly designed to make very good use of the hydrogen-carbon molecules.

[Moses]

Originally posted by Erakad
Interesting stats, but they really beg some questions. I would bet that ANY company looking for alternative energy sources for the past 30 yrs, most likely has found something. Hydrogen comes to mind. The question is, why haven't they started marketing some of these alternate sources. Dollars come to mind. I'm willing to bet XOM has the alternate energy solution...or has a real good idea where to go, but with 3K gas stations and with selling 1B gallons every 3 days, they really have no motive to market those other sources. It's just not profitable. It just doesn't make business sense.

I for one would like to see more info on hydrogen powered vehicles. I heard that Arnold S. was going to convert his Hummer to hydrogen...I guess that gives H2 a whole new meaning.

You're right, but the reality is that hydrogen generation is old, old science. New technology cannot re-write the laws of thermodynamics. To generate hydrogen gas from water, for instance, the bond strength of H2O must be overcome by the addition of energy. Water can be "separated" chemically, electrically, or even with photocells. All of these reactions cost more "energy" than we get in return during the combustion of the hydrogen. Basically, there is no free lunch.

[tabs]

Believe me if XOM found a new source of energy they would be in that business...if it were profitable...they are not that dumb. Say dog**** weere a great new source of energy they would be the first in the biz, because 100% of a market is better than 10% of the existing market. Also oil ain't going away if you found the perfect cheap source of unlimited clean energy. The change over in technology would take years.... Think of those Porsches out there that burn gasoline..they ain't going away. Further oil is used for so many other products other than fuel.

[350HP930]

Originally posted by Moses
You're right, but the reality is that hydrogen generation is old, old science. New technology cannot re-write the laws of thermodynamics. To generate hydrogen gas from water, for instance, the bond strength of H2O must be overcome by the addition of energy. Water can be "separated" chemically, electrically, or even with photocells. All of these reactions cost more "energy" than we get in return during the combustion of the hydrogen. Basically, there is no free lunch.

You are right that hydrogen is basically an energy storage mechanism, but a very efficient one at that.

When compared to the losses involved in charging a battery and all the nasty wastes that are involved in their creation and disposal, that is the beauty of the hydrogen fuel cell.

In addition to making hydrogen by forcing water apart, there are also chemical methods of doing so using hydrocarbon fuels, allowing us to use our black crude resources even more efficiently and cleanly than before.

The laws of thermodynamics are always followed. What hydrogen and other alternative fuel sources are about are cleaner and more efficient delivery systems.

[island911]

Originally posted by 350HP930
. . .
The laws of thermodynamics are always followed. . . .

Your no fun.

[bbq_duck]

Originally posted by island911
Centeralized power production has one BIG new dissadvantage - terrorism. Even hydro falls into this catagory

Of course if a dam is breached, we have a relatively temporary big problem. Other is chernobyl.

This link is interesting.....

http://www.kiddofspeed.com/chapter1.html

follow it thru the 'next page' links for some pics of what it is like there now.

It is too bad we can't get the nuke thing down to a safer level of risk, we would all be much better off - wouldn't even need all the oil, we could just leave it where it is.

[Erakad]

Bottom line XOM and the rest have an investment in the oil business...over 100+ years worth. Alternate energy sources are irrelevant when you have a billion $$ cash cow to milk. Period. The only way XOM, Shell or the rest are going to move to new energy sources is if the $$ trail leads them there...economics, not science.

Interesting thing, did some web searches on hydrogen powered cars, fuel cells, etc. Many of the large car makers are working on hydrogen fuel cells in upcoming models (Daimler/Chrysler and Ford supposedly for 05). So, here's your choice. It's time to trade in the old clunker, you go to the dealers...you have the gasoline models, diesel, hybrid electric, hydrogen fuel cell, (work with me now) and one that uses just pure hydrogen (BMW has a prototype). Obviously conventional power has the HP edge, but for the rest....would you do it (Note, the Prius is in demand)?

[Erakad]

Bottom line XOM and the rest have an investment in the oil business...over 100+ years worth. Alternate energy sources are irrelevant when you have a billion $$ cash cow to milk. Period. The only way XOM, Shell or the rest are going to move to new energy sources is if the $$ trail leads them there...economics, not science.

Interesting thing, did some web searches on hydrogen powered cars, fuel cells, etc. Many of the large car makers are working on hydrogen fuel cells in upcoming models (Daimler/Chrysler and Ford supposedly for 05). So, here's your choice. It's time to trade in the old clunker, you go to the dealers...you have the gasoline models, diesel, hybrid electric, hydrogen fuel cell, (work with me now) and one that uses just pure hydrogen (BMW has a prototype). Obviously conventional power has the HP edge, but for the rest....would you do it (Note, the Prius is in demand)?

[350HP930]

If done properly you could design hydrogen or hybrid sportscars that would give the best traditional sports cars a run for their money.

Unfortunatley the focus of current alternitve vehicle development is on super efficient utility vehicles, not sports cars.

[beepbeep]

There is one alternative energy source that is powerfull and clean: fusion energy.

Unfortunately investments needed to make it work are quite huge and they won't pay back until 30 years later. Politicians being short-sighted as they always have been (GWB: "in the long turn, we're all dead") don't want to push money into something that will give menefits when they are dead or forgotten. Especially when there is already a source of energy like fossile fuels. Sure, you need to make few wars now and then to keep it flowing but at least results are nearly instant.

Burning hydrogen in internal-combustion engines is quite cleans but produces NOx, which isn't good.

My dream is a couple of gigantic fusion-energy plants producing electricity. Some of that electricity can be used to produce hydrogen.

There is no danger of "blowing up" either, as soon as something is wrong, process automatically stops as plasma is cooled down in contact with reactor walls. There is no radioactive waste either, just low-active reactor walls (due to neutron-bombardment).

Fuel is deuterium or tritium, very small amounts are needed and can be destilled from sea water.

That way, OPEC coutries will loose their main source of income. Some of that oil-money is also used to finance terrorists.

[350HP930]

Actually beep, you are referring to fusion. Fission is what occurs in regular nuke plants.

[beepbeep]

Sorry, my bad.