Posts Tagged ‘oil’

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Want to lower gas prices? Advocate for energy independence!

July 31, 2008

It’s not a shock that reductions in supply or increases in demand will increase prices.  The strange thing about our current oil price is that supply is stable and demand increases are moderate (or at least predictable).  So what is driving the price up?

I don’t agree with this as a complete picture, but let’s blame “market speculation” just for the fun of it.  There is some justification for blaming speculation – when China removed price controls, oil fell because demand would drop.  Oil falls on news about major car makers converting from trucks to cars.  Fundamentally, the THREAT of reducing demand is enough make the price of oil drop.

If the US takes decisive action to reduce our demand for oil then the price would drop.  I believe that oil rich countries would then be forced to take equally decisive measures to maintain our addition on oil.  Unfortunately, with low prices we would again lose our conservation drive.  There is a strong historical pattern of this type of behavior.

Do we have the will power to finally break free of the Oil cycle?

Do we have the will power to finally break free of the Oil cycle?

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Beef high in fat and Oil

July 20, 2008

About 10 years ago I stopped eating beef because it was high in fat and that’s not healthy for me.

Now I have a second reason.  Beef is a huge energy waster.  Here’s the chain:

  • Beef comes from cows.
  • Cows from feed lots are fattened up with corn.
  • Corn takes a lot of oil to produce (plus corn for ethanol competes with oil)

Cows also use lots of energy in transport and processing.

Source Federico Mena Quintero

Source Federico Mena Quintero

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Rising tide lifts all prices

July 20, 2008

I heard from a friend that coal is now 100% more expensive than last year and that increase is going to show up in our electric bills.  I heard yesterday that wheat is now 200% more expensive than last year because corn prices have skyrocketed based on ethanol demand.

The price of oil has a direct impact on ALL OTHER forms of energy.  Energy is fungable and there are substitutes for oil.

There is no end to the sky and sea.

From Jan-Baker.com: "There is no end to the sky and sea."