Northern Michigan Solar Cabin

Last update: 08/12/2008  

Alternative Energy videos.

 

My attempt to help Mitch Nelson make sense out of a mess of information!

Real time oil prices. Reload page for update. Real time national gasoline prices. (can be delayed). Honest to God, just don't look at the 1 year forecast. Just do that one favor for yourself.

A lot of energy goes into this blog.

The amount of information available to read either via the internet or in traditional print is staggering when it comes to energy. However, as is true with all information, you are mostly relying on other people to make the observations and report them to you. You have no actual way of knowing if something is true or not unless you observe it first hand. 

It's a really, really great way to lose sleep if you think about it too much. This page is my attempt to make sense out of the mess of information. Of course that brings up the point about my observations.... What I'm doing here is exploring the vast knowledge base on the internet, sifting through it and trying to make some sense of it. You'll probably notice right away that I am the rarest of all the people on the planet. I use alternative energy and I'm a conservative. Go figure. No, don't it'll give you a headache.

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  kitcar - whereIstand.com

I could have put this link on the front page but it's more energy related. I think. This guy by the name of Anthony Watts, who spoke at last year's CIRES meeting has some data you just have to see. You can read his blog here or visit his web site here

The important thing to note is that his group has surveyed 43% of all the weather stations in the United States. Out of them only 4% aren't being artificially heated by external sources.

Liberty Fuels Ethanol plant production halted.  

I'm a storm chaser and as luck would have it we had a major lightning storm here at the main house.  Check it out!

Did you know...

(source: Western Michigan University)

There are 63 counties in Michigan that produce either natural gas or oil or both in the lower Peninsula.

The deepest wells are 12,000 feet deep.

Permits have been issued for over 56,000 oil and gas wells in Michigan since 1920.

Michigan's daily production (estimated) is 22,677 barrels/oil and 790 million cubic feet of natural gas.

Total Number of Wells Currently Operating in Michigan
· 4,673 Oil Wells
· 6,865 Gas Wells.

Otsego county, where the shack is located has some of the highest production of natural gas in Michigan.

 

Some wonderful off topic information designed to waste your time and energy. Wait a minute! They are on topic.

So what the hell are the clowns that want to be president going to talk about.

 Detroit is 40 miles to the east of me.

Pay attention. The rest of you are next. Big government=big failure. Trust me, I live in it every day.

 

Walk Like a Wal-Duck

 

My dreaded bi-weekly event has arrived once more. Grocery shopping at our local Wal-Mart knockoff, Meijer Thrifty Acres. Wait a minute. Meijers was there first. Then Wal-Mart came along and my favorite store decided that a complete redesign would be a good idea in order to become a Wal-Mart knockoff. Apparently, putting the pet section in with the groceries makes sense in some Midwestern way. Not supplies. The pets. Tropical fish, birds and other small pets like hamsters just belong in with the groceries. See, it's all part of the plan. Small pets in with the food will get us used to eating them when gas finally gets to $50.00 a gallon! At least they moved the pharmacy with it's "store at room temperature" labels next to the outdoor access to the garden section as an apparent undercover test in conjunction with the FDA to see if medications REALLY need room temperatures. I won't mention the giant LCD screens with "Meijer T.V." playing hanging from the roof. With the sound down so low you can't hear it. I wonder if they sell Whisper 2000s.

 

But that's not my true dread. It's the constant flow of humanity that never quite learned how to be A). Polite or B). Interact in a crowded situation. I've become so pissed off it's actually turned into humor. Humor as a dark violent simmering rage is always entertaining. I've actually started to look forward to my jaunts through the masses and have developed some instructions for my fellow shoppers.

 

NOTE: Please identify yourself from the list and stop it before someone gets hurt (hint: that would be you). Or use any 3 to  complete the 3  easy steps to a buttwhupping.

 

1. Distant Stare. By all means, stand in the aisle of the store staring into the distance. Getting in touch with your inner child through meditation is always good with a shopping cart. The true expert will choose a main aisle in the store. Don't be doing this in a side aisle, you'll just be wasting your time and your inner child will cry.

 

2. Family Reunions. A large chain store is one of the best places to have a family reunion, especially when there are many strangers in the area. Be sure to equip yourself with the type of shopping cart with the little extra seats for your children. These are almost 3 feet longer than a regular cart and create the optimum aisle blocking devices. If you are pregnant and everyone has their spouses and children with them, that is a pleasant surprise for everyone.

 

3.Chatty Cathy/Ken. Having a 2 hour conversation on your cell phone as you wander aimlessly about the store is one of best ways to aggravate other people because everyone wants to hear your private conversations. The true master will be talking to their spouse or relatives about private matters or (a bonus) creating their shopping list as they talk. Most effective only when your pre-5 year old children are with you.

 

4. Item Blocking. This requires almost no effort. Simply pick an individual who is standing back making a selection. These are your fellow shoppers who are trying NOT to be impolite. You'll recognize them from the glare in their eyes as you approach. Next, take your cart (which should be in front of you for maximum effect) and slowly push the cart in front of the items in question, stop dead in your tracks and begin staring. (see the distant stare for instructions). This is an excellent way to complete the 3 easy steps to a butt whipping. Make sure you take your time making your selection in as you are unsure which brand that is made in the same factory as all the others to choose.

 

5. Aisle Blocking. An all time favorite, perfected by few, attempted by many. Place your cart about 1 foot from the shelves to prevent anyone except Twiggy from getting by and stand next to the cart to block the entire aisle. This is especially effective if you are overweight, old or young or have at least 3 young children with you (they can be your neighbors children if you don't have your own).

 

6. Starbucks. This works great if you're over 50. Stop at the in-store Starbucks and grab yourself a cup. Now wander the aisles with one hand on your cart and a cup of pricey joe in the other. Take careful sips as you consider your next step. I highly recommend joining a Family Reunion.

 

7. Super Dresser. I'm always impressed with people (usually women) who dress for this gym/club activity that we call shopping. The best dressed ones wear tights. If you actually hear someone mutter "what the hell?" or "hmmm, flowered panties" behind you, you have succeeded. Snickers mean you should try harder. Best when combined with Aisle Blocking. Make sure that you don't have a normal body. Be super-extra size thin or super extra-size large.

 

8. I'm Hot. Similar to the Super Dresser in effect but more dramatic, you realize that you're hot and dress that way in order to distract your fellow shoppers of the opposite sex while your partner is Item Blocking. This works outstandingly well if you send your spouse to the next aisle so they can show up while someone is staring at you. Individual instructions include muscle shirts for men, short skirts or tight tops for women (bras MUST be visible through fabric). Include makeup (women) or Axe cologne (men) for maximum effect.

 

9. David Copperfield. This a an all time favorite. If you work at one of these stores be on the lookout for shoppers who are looking for an item that they can't seem to find. Now hide around the corner as they look for you. Hysterical fun. See next item for more in depth instructions.

 

10. Convoluted Item Placement. Called CIP for short, this is a true art that is slowly being perfected. You must be management of a store to pull this one off effectively which includes the strategic placement of just some items where you wouldn't expect them. Examples: Canned Olives should never be stocked with the canned vegetables. These should be with the "ethnic foods". Bar soap. A truly clever manager will not keep the bar soap with the other cleaning or personal hygiene supplies. Place in the pharmacy. Next to the tampons to allow men and women to mingle. Keep the antibacterial soap with the laundry detergent. Combine with David Copperfield for maximum effect.

 

11. Cashier Lottery. Meijers has perfected this. Each cashier must either consume 32 cups of Starbucks or 4 Valiums before opening their register so each customer can feel like they've won the lottery when the pick the 32 cupper. Shoppers in the 4 valium line can watch the shopper 12 people back in line at the next register get out of the store, get home and put away their items purchased in step 3 before their cashier has scanned more than 4 items. A real laugh riot when preformed correctly, especially if you're behind # 6 or 7.

 

There you have it. You'll note that you can combine one or more each trip. In fairly short order you'll be increasing the heart attack rate, stokes and those mysterious "random violence" episodes we've all heard so much about.

 

New Element Found; Al Gore Demands Tax on It.

August 12, 2008 |

 

The International Heavy Isotope Research Institute (IHIRI) recently announced the discovery of the heaviest chemical element yet known to science. 


The new element has been tentatively named Governmentium. 


Governmentium has 1 neutron, 12 assistant neutrons, 75 deputy neutrons, and 224 assistant deputy neutrons, giving it an atomic mass of 312. 


These 312 particles are held together by forces called morons, which are surrounded by vast quantities of lepton-like particles called peons. 


Since governmentium has no electrons, it is inert. However, it can be detected as it impedes every reaction with which it comes into contact, usually by a factor of 4. A minute amount of governmentium causes one reaction to take over four days to complete when it would normally take less than a second. 


Governmentium has a normal half-life of four years, however at times the half life becomes bogged down. When this occurs, the half life becomes eight years; it does not decay, but instead undergoes a reorganization in which a portion of the assistant neutrons and deputy neutrons exchange places. In fact, governmentium's mass will actually increase over time, since each reorganization will cause some morons to become neutrons, forming isodopes. In addition, some Governmentium particles leave the moron clusters to form what is called post Governmentium lobbiestium and can actually add to the reaction time of Govermentium.


This characteristic of moron-promotion leads some scientists to speculate that governmentium is formed whenever morons reach a certain quantity in concentration. This hypothetical quantity is referred to as Critical Morass.

Hey, Rocky! Watch me pull a tax out of my as...er hat!

July 26, 2008 |

I'll make you a bet. This site crashes within 3 days. Just read on.............

Rewritten: 7-30-08; So do you know how deals work in Washington, D.C. where our supposed representatives go to "represent" us?

Want to have some fun? Call your representatives in Washington and try to talk to them. Good luck. Extra points if you actually get a response that isn't canned.

Sure you don't. While this will sound like so a well thought out conspiracy theory, if you look closely, you will see the kernel of truth. 

 

But, you have to know how politics work. First, a Republican will get up and shout "HEY, I GOT A REALLY BAD IDEA!" Then a Democrat will get up and shout, "AND I CAN MAKE THAT IDEA EVEN WORSE!". And there you have it, we have a law.

In this instance there are three players. First you have high oil prices and how the hell do we fix that? Second you have the solution as presented by the Republicans, drill for oil in our own country (that way our oil will be on the world market and we can pay market prices for our own oil). Now the Democrats have a sweet idea to help out. It's called "The Global Poverty Act of 2007 (S.2433)". This particular act of Congress will allocate money raised from it to the United Nations for their global "war" on poverty. For their part, it's a great way to help Obama (because, you see, it's his damn bill in the first place - or for those playing our home game - "get a clue" - the home game) get elected and get another step towards the Bush senior goal of the New World Order. As an added bonus, expect a "Fossil Fuel Tax". According to Professor Jeffrey D. Sachs of Columbia University -- Director of the UN Millennium Project and Special Advisor to United Nations, it's the perfect way to fund this deal. 

So the table is set and the players are in their seats. First, drive the price of oil up, up, up. Everyone pays well over $4.00 a gallon for gasoline. Now insert a "sudden" and "mysterious" drop in oil prices precipitated by nothing more than the mention of drilling for oil. Great, now gasoline prices have dropped from $4.30 to $3.65 in a couple of weeks. Take that, insert an apparent "folding" of the Democrats on the drilling for oil deal, mix in the "The Global Poverty Act of 2007 (S.2433)" and it's hopeful forty cent a gallon tax and volia', instant bad idea all the way around. 

Here's the best part. The bill charges the President of the United States with the implementation of this deal. Obama gets elected, a couple of executive orders later and while oil is $150 a barrel, gasoline is $4.00 a gallon and as an added bonus, we're one step closer toward a New World Order (that's the Latin word for "Socialism"). Add in some higher taxes (because of the massive debt that those damned Republicans left), some crafty bookkeeping from Bill Clinton's old playbook and higher taxes will seem to fix everything until the "tax the rich" idea plays out and we have to downstream the higher taxes. 

Doubt me? Don't. Better start ordering MREs (Meals Ready to Eat) because you're going to need them.

 

 

Check this out! These clowns at Investors Business Daily came up with a great article that they let other web sites publish. Too bad they have a rule about publishing it in their format. So here it is in their format. And we could have done it so nice in our format. Which proves the Investors Business Daily isn't going to get a link at Northernmichigansolar.com. "enjoy". But enjoy the poor quality that they provide. [*cough* dumbasses] Be sure to send them an email thanking them.


Do As They Say from Investor's Business Daily

 

 

Forget the canned responses, let's get real.

June 28, 2008 |

So the president listened to my suggestion and asked congress to open areas for drilling oil in the United States. Of course the cry from the hallowed halls rang with the playbook response "Oil companies have plenty of leases already and they aren't even drilling!". A response worthy of any 3rd grade playground. The adult in the story (the president of the American Petroleum Institute) sent them a letter. Here it is. Of course, this will be ignored as our elected officials take themselves a nice vacation while we can't afford to. It's so nice to have someone representing my needs in Washington. Now all I gotta do is find that person. Here's the letter:

Dear Member of Congress:

In recent weeks, there has been much discussion about access and federal oil and natural gas leases, and I thought it helpful to provide you with information on this matter.

The criticism of the oil and natural gas industry is that it seeks greater access to our nation’s resources under federal lands when companies already own many leases that are allegedly sitting there, undeveloped and producing nothing. There are now even calls for oil companies to be denied new leases, if they have "unexploited" leases. To many, this criticism may sound reasonable. However, these claims of "idle" leases are based on a lack of understanding of the mechanics and due process involved in oil and natural gas exploration and production.

A brief explanation:

  •  A company buys a lease because it believes there is a possibility the lease may yield enough oil or natural gas to make the cost of the lease, and the costs of exploration and production, commercially viable. Over the past five years, companies paid billions to obtain federal leases. However, until a company actually completes exploration, it does not know whether a lease will be productive and commercially viable. Many will not.

  • Typically, geological exploration; a government required permit request for seismic work and the work, itself; data analysis; and another government required permit request for drilling and the work, itself, are needed to verify that sufficient resources can be recovered. These take time, especially the permitting. Moreover, even if initial drilling finds commercially viable amounts of oil and gas, a number of time consuming steps must follow before production can begin. The lease holder must drill delineation wells to size the field, obtain further state and federal government permits, and engineer and install complex production facilities.

  • If the company finds there is no oil or natural gas underneath a lease – or that there is not enough to justify the huge investment needed to bring that energy to the surface – the company moves on to more promising leases. Yet, it continues to pay rent on the lease, atop its original leasing bonus fee. In addition, if the company does not develop the lease within a certain period of time, it must return it to the federal government, forfeiting all its costs. All during the aforementioned active exploration and evaluation phase, the lease is listed as "non-producing."

  • Because a lease is not producing, critics say it is "idle" when, in reality, much more often than not, it is being actively explored and developed. Our companies have made tremendous strides in developing cutting edge exploration technology, but they cannot produce oil or natural gas where it does not exist. In many cases, companies find that a significant percentage of their leases simply may not contain oil and natural gas, especially in commercial quantities. Were they to continue to spend millions of dollars to develop those leases, they would be accused of vacating their fiduciary responsibilities.

  • Oil and natural gas companies put a lot of time, money and effort doing exploration in the hopes of finding enough oil and natural gas to produce in commercial quantities. Exploration is not a risk free proposition, but it is an absolutely essential part of our business. There is nothing "idle" about it. Exploration that took place years ago is providing the fuel that is meeting consumer demand today.

  • A lease is simply a block on a map. When a company buys a lease, it does not buy oil and natural gas; it buys the right to explore whether there is oil and natural gas on that block. If every lease had oil and natural gas, we wouldn't need to explore. One could simply pay for a lease, punch a hole in the ground and start pumping oil.

  • The proposal to deny new leases to companies with so called "idle" leases exposes a serious flaw in how the fundamentals of our industry are understood. If enacted, it would keep locked up underground even more of America’s vast energy resources and seriously harm our ability to produce sufficient energy to meet the continued steady demand. At the same time, more oil and natural gas imports would result, and American jobs would go overseas.

  • Just as Congress would not dream of requiring farmers to plant crops in the portion of their acreage that is marshland, it should not force our companies to spend millions of dollars on non-promising leases to qualify to bid on new leases.

If our economy is to grow in an increasingly competitive global marketplace, our companies must be allowed access to the areas that we expect have the potential to produce the oil and natural gas consumers will need.

Today’s short term need was yesterday’s long term opportunity. If Congress had acted on that opportunity years ago, America would not be in the energy bind it finds itself today. We are ready to work with you to help secure America's energy future.

 

Well, well...A Real Difference Finally Emerges.

June 20, 2008  |

I've made an observation that would make Rush Limbaugh proud. Now that I've lost half my audience, let me explain. For quite a few weeks now people have been wringing their hands over the upcoming presidential election. It seems that once again we're faced with two less than perfect choices. The only question seemed who could get the most people to swallow the horrible tasting political medicine.

So what does this have to do with energy? Everything! The older I get, the more I realize one very important aspect about being an American and the American way of life. First and foremost, people have willingly died to make my life what it is. Second, I've worked my ass off for over 30 years to make my life what it is. So would somebody point out where exactly in our constitution it says that our representatives, the people selected to do my bidding, our bidding have the job of telling me what's best for me and my family? Oh, sure we're only skipping one meal a week now. My "beloved" Sen. Levin sure doesn't look like he's missing many meals. Me, I've lost nearly 20 pounds. Yeah, it's pretty cool searching (a lot) for the lowest gasoline price and wondering if I can get through to next payday as the prices of virtually everything goes up and up because of rising fuel costs and we can save just that little bit less every month.

So we come to the point of this little blog entry. The motto is simple and it actually can mean the survival of some people, and actual freedom to others. The motto?

"Drill here, drill now, pay less."

Now there's some of you who will throw your hands up in agreement with the liberals and say we can't drill our way out of this (nice line, by the way. Wrong, but pretty good) and conservatives will nod their heads sagely and say that I get it. Just hold on there a minute buckos. Everyone is missing the point. Move beyond what you see and think and look at your children. We are very rapidly moving toward a diametric shift in this country (some say it's already happening) were the freedom of movement is being taken away unless we toe the line and use the tools (vehicles, food and products) that they say we must use. And who are they you ask? Simple. People that wield political power to force you to do something (or else) are what are called Socialists. 

And that, my friends and visitors is the easiest way to be labeled a "fringe" website. For the most telling aspect of Socialism is to not allow for compromise but to label people who disagree with you "fringe". Remember the key to the movement: repeat the lie until it becomes truth, then you can control people with fear.

An Evil Wind Blows and Our Lives Suck

June 8, 2008  |

This  is the first part of a several part series about the uncontrolled rises in food and fuel costs. Parts will be added as the mood strikes me and information becomes available.

At the Milan Elevator, run by Joe Bixby, in Milan, Michigan, customers are being told that if you need seed or fertilizer, buy it now because the next time, the price will be double. Farmers across America are not just feeling the pinch, they are watching as their budgets for seeds, herbicides, fertilizer, fuel is in some cases doubling. We're talking price jumps of a half a million dollars to run a farm just as credit to purchase the needs to run a farm are drying up. You think food prices are high now, you just wait a minute. Better buy that freezer you've been thinking about. Now. And that's as serious a heart attack.

The song says that off in the distance, a wildcat did growl. I've been in the upper peninsula of  Michigan and I heard it in person. When a Cougar talks at 2 in the morning, you get the bejezzus scared out of you, let me tell you. What's happening right now with energy and food prices doesn't have me frightened. I'm scared witless. Not nervous, not concerned but scared.

Conversations that I've been having with my sources who range from a retired man who is a Democrat, a professional driver who is a conservative and even my own mother have all told me something that has me in the mood I'm in. We're all worried, each and every one of us, about the next generation. The main point that I've had drummed into me is that this is exactly how revolutions start. In America in the 21st century. But how did it all start to fall apart so quickly? The answers are somewhat convoluted but the information is there - all you have to do is find it.

I've been reading an article about the reasons why food and oil prices have been going up, up, up. I'm not going to link to it because the author seeks to place political blame and the guy isn't even an American. The real blame for all the speculative price surges in food and oil/gasoline prices can be tagged to these points: 

A lawsuit. 

A stinking idiot judge. 

Canadian teachers.

Whoo-Hoo! Money! Let's deregulate! 

(Honest to God, I can't make this up) But (and this will get you pissed off), a man with the name of Fowler West told Congress and the market regulators in the early '90s that all this would happen. Oh, he went far and wide with his warnings of dire doom of epic proportions. Of course they didn't listen. Kind of makes you wonder about the whole electoral process that sends our representatives to do our work. Thanks guys, we really appreciate it. Now, where's that Tea Party being held?  Lets look at these markets. You see, there are two types of futures. Forward and Futures. Now in a Forward market, you strike a deal that you will supply such and such product at a fixed price. This allows you to obtain financial backing to produce that product. Then you physically deliver that product. But what happens when the Futures market for your Forward market product goes through the roof? Yeah, the guy producing the stuff is stuck. The worst part is that in most Futures markets nobody takes delivery of the product!

You see, the first commodities markets date back to around 1848 when over 80 merchants banded together to form the Chicago Board of Trade - all because of Chicago's ability to move the stuff (grain) through the Great Lakes, over the rail system, etc. Until then, commodities trading was utter chaos.

In the United States, the futures markets are regulated by the "Commodity Futures Trading Commission" (CFTC),  the group that is working right now to see if there is any hanky-panky going on in overseas Oil Futures markets; too little too late. The current problems date back to the mid 1980s and the early 1990s when a small energy company called Transnor, Ltd. sued virtually all of the major oil companies. Why? To force a decision deciding once and for all whether the 15 day oil markets were/are Forward or Futures. This case was a landmark decision - and most people have never heard about it. The decision, in favor of Transnor, handed down by Judge William Connor, rendered all oil trading in the United States illegal. The Brent oil futures market nearly collapsed within days. This market is the benchmark of all the oil markets, the big Kahuna.

The CFTC, which had earlier decided that pension and hedge funds could indeed buy commodities futures through a middleman using an exemption, usually a bank, was now faced with the Transnor mess. They went ahead and issued their decree: The 15 day futures market were Forward markets and therefore unregulated (Forward markets are normally unregulated to not impede commerce). In that instant, oil futures became Forward markets. This led to a company called Enron being started. Hey, here's a trivia question. Guess who worked for Enron? Answer: the former head of the CFTC who led the deregulation decision, one Mrs. Phil Gramm (wife of the famous politico).

Now, with these two deregulating decisions, the floodgates were opened. But nothing really happened for a while. Then Congress stepped in and in their wisdom started throwing exemptions around like candy at a parade. The first pension fund to take advantage of this new atmosphere was the Ontario Teachers Pension Fund, who through an unnamed bank was able to get an exemption to purchase agriculture futures. They dumped around 100 million dollars into the futures/forward markets and liked it so much that now one billion dollars of their money is in the market.

Which brings us to us older people and why part of this is our fault. The big players (nearly one trillion dollars) in these futures/forward agriculture and energy markets are our very own pension and retirement funds. Which begs the question that will be the last sentences of this first part: Who controls the pension funds and what are we going to do to stop it? It's our money that is causing these price jumps and while we sit on our happy butts the world is falling apart.

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Stay tuned for the second part of this series, where the prizes get really big!

Alternative Energies and Us

June 1, 2008  |

Weaning  ourselves away from inexpensive gasoline and oil related fuels is starting as I write this because fueling our vehicle is becoming very expensive. Some have to make choices that they are not familiar with: food or gas. Having lived through the first few price spike episodes over the past 30 years or so, I've noticed some movement towards alternative fuels. More and more home experimenters are playing with hydrogen "boosters" - small devices that separate water in oxygen and hydrogen to fuel their vehicles with dubious results. Hybrid cars are no longer snickered at, only longed for. General Motors now has a hybrid SUV in their attempt to keep that market going. Certainly, there are still nitwits that insist on driving well above the 70 mph speed limits and partake in the oft advised against "jackrabbit" starts and aggressive driving however, as our national fuel prices rise,  drivers (I've noticed) are beginning to slow down, especially on the highway. I suspect that "hypermileage" will become part of the lexicon of normal words used in the media and the general public. To which I say "Welcome!".  I've been using hypermileage driving techniques for several years since the Katrina spike in gasoline prices. It's not hard, only different. I spent many years making my vehicles go faster and faster and now have switched to making my vehicle more and more fuel efficient. Come on in, the waters' fine!

A Drop In The Bucket

Or how not to make a difference. |

So the Department of Energy and President Bush listened to congress and stopped adding to the strategic oil reserves. Saudi Arabia announced a 300,000 barrel a day increase. Oil investors said "That's nice. Watch this!" and of course oil rose to $127.00 the same day. The latest benchmark in oil prices along with record gasoline prices (over $8.00/gal in parts of Alaska) has also triggered everyone's favorite, the dreaded "Hearings" on the hill in Washington D.C.. Well, that should get big oil nervous. Not! There are also now calls calling for the end of speculative investing on the futures market of crude oil (the price per oil is based on the price of Brent Sea crude, the benchmark of the price per barrel).

Look, this is all well and good. The average person pulling up to the pump really doesn't give a damn about all of that; like why the FUTURE price of oil raises the price of gasoline today (hint: follow the money), or why nothing seems to be done about it (other than to invest in oil and spend the profits for gas to get to work).  All they want is for the fuel they use to be at an appropriate price. We are getting close to the tipping point friends, where it becomes too expensive to travel other than short distances. This could have a good side effect though. Follow this trail of twisted logic for a moment. Traveling less means less spread of disease (like carrying that cold back from Disney World), less particulate pollution (30% of our particulate pollution is from China. Probably from lead toy paint production.), greenhouse gasses, less wear on the roadways, fewer accidents and tragic deaths and my personal favorite, people finally slowing down and not driving like Speed Racer trying to win a race.

Another important aspect (after all, I am the "Greatest Social Commentator" of the 21st century (TM)) is this. Consider everyone staying home. What happens? You have a more tight knit family and more neighborhood interaction. Once all these people start having BBQs and comparing notes, they will find out what they should have known all along. United we stand,  divided we fall and we don't like socialist agendas from presidential candidates and why the hell aren't we drilling for oil? Well, not entirely true. We drilled over 4,000 oil wells in the United States in the 1st quarter of 2008.

 

Peak Oil. Is it starting?

Peak oil is when the world oil supply is more than half gone. Read more. |

5-16-08; Short answer: No. The per barrel prices are being caused by war, strife and my personal favorite, "held back" production. Thus it is my opinion that all the talking heads in the world nattering on about why the price per barrel is high are wrong, wrong, wrong. It's not the value of the dollar, not the lack of production in the United States. The answer is very complicated. But from a simple mind comes a simple answer.

See, we and the Saudis have always had a pretty cozy relationship. It's always odd that they seem to be able to increase production of their fields just when we need it the most. Like during an election cycle. Now, however, with the loss of Saddam and the Occam's razor of the world, China, there doesn't seem to be as much of a need for them to placate to us on oil production any more,  thus the murky picture of per barrel oil prices becomes clear. 

Photograph from Reuters news story. Strife in Nigeria.

Explosion  in Nigeria halts oil production.

Nigeria is a big oil producer. However, there is a political/social war going on there where the Nigerian government is demanding more money from the oil companies, the population is mad because of the pollution from oil burn-off (and you thought we have problems) resulting in gangs of youths invading oil producing facilities and other violence aimed at oil production. Thus, blips in the supply happen and volia' higher oil prices. 

The point being, right now there is virtually no dependable oil producer anywhere in the world (U.S. = not allowed, Venezuela =  run by nutcase, Nigeria = can you say civil war?, Saudis = maybe we pump, maybe we take day off) which is creating the perfect storm of high prices.

 

 


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