Please read the comments below the table of content
Go to Who am I
Go to The Cost of Gasoline
Go to A Little History
Go to Some Background Information
Go to A Little more History
Go to Some Limits on the
Oil
Industry
Go to What is Our Problem
Go to Will We Run Out of Oil
Go to It's Crunch Time
Go to What We Should Do
Go to A Little Knowledge
Go to The Rest of the Story
Go to A Little Ignorance
Go to There is No Need to
Panic
Go to The Politics of Denial
Go to Some Caveats
Go to Some Comments
Go to Final Comments
Go to Oxygen
070330
Go to Deceptively Simple
070330
Go to When big means very
little 081011
Return to Comments table of content
The newspaper articles are a reorganization of
several
comments plus some new material in an attempt to have them published by
newspapers. One local newspaper did publish fifteen of the articles. If
your local newspaper is willing to publish any of the articles they may
name and edit the articles as they see fit as long as they include my
web
site address.
In my article 'A Little Ignorance' my statement
that carbon dioxide nearly tripled from 1909 to 2005 is wrong, the ice
core data indicate that carbon dioxide doubled during that time. Please
correct that statement mentally when you read it.
Also, I was not satisfied with that same article
after I wrote it, but when I tried to improve upon it became disjointed
and much too long for a newspaper article, so I left it as it was.
Since then I have have written three letters to
the editor to different publications. I combined and revised them. It
is
titled 'Oxygen', it is an attempt to make the oxygen cycle
understandable
without being too technical. Plus, I have added 'Deceptively Simple' in
an additional attempt to make the oxygen cycle easy to understand.
After reading the articles, please return to
comments and read 'It's more than carbon dioxide' and 'It's more than
global warming.'
Let me tell you a little about myself so you will
have some idea of my bias and so you will know I have been exposed to a
large variety of systems. My bachelor degree is in chemistry, from
Michigan
State, 1956, with a background in math and physics. After two years in
the army, artillery, Total Petroleum North America was my employer for
twenty six years plus five years as a consultant. During that time, I
worked
as a product control, process control, and customer service chemist,
director
of a control lab, refinery programmer, assistant to the president,
manager
of information systems, and director of the Alma data center.
I wrote my first program in 1967 in Fortran on a
32k IBM 360-30. Later I learned PL/I, Cobol, and basic assembler. I
have
used statistical techniques, regression analysis, and linear
programming
to evaluate products, additives, refinery production, product
distribution,
and acquisitions. I have analyzed, written, and maintained programs and
systems for more than fifty applications from accounts payable, credit
cards, general ledger, to payroll, property, and warehouse.
I have worked with the equipment in chemistry labs,
computer operations, and telecommunications and have been exposed to
service
stations, pipelines, terminals, refineries, and oil wells. I have
worked
with a staff of five to sixty four, budgets to three million, and
traveled
from coast to coast. I stopped logging installation visits at fifty.
Return to table of contents
Yes, America you are being ripped off by the oil
companies, but before I qualify my statement, some knowledge about
costs
is needed. Let me start with the price of gasoline in Michigan. Divide
the spot price of crude oil by 42, multiply by 1.04 and add 76 cents,
then
multiply by 1.06 (MI sales tax) and if you are paying more than ten
cents
above that amount you are being ripped off.
For those who live another state, subtract MI state
taxes of $.19875 from $.76 and add your state gasoline tax to the
remainder
and use the result in place of $.76 in the above calculation, also
replace
the 1.06 with your state sales tax rate.
The above calculation may require the following
qualifiers. For example, I live in Mackinaw City and shop in Cheboygan
and Petoskey. In Cheboygan, each winter we pay more for gasoline than
in
Petoskey, but we pay less in the summer. Why?
Because when the Straits freeze the oil tankers
cannot transport oil to Cheboygen and all oil must be trucked from
either
Traverse City or Bay City. In addition, when the boats can pass through
the broken ice in the Spring and Fall the insurance rates on the boats
quadruple increasing the cost of transportation during those times.
Pipelines are the cheapest way to ship oil followed
by boats, rail tank cars, and the most expensive way is by truck. The
cost
also increases with increasing distance, a fact that most people ignore
for some unknown reason, when considering the price of gasoline at
different
locations. Plus they ignore the different state gasoline taxes and
sales
taxes.
At sixty three dollars per barrel of crude oil the
price per gallon is $1.50, now would you change how you shipped crude
oil
to save $.0001 per gallon? Bigger is not always better, too big means
economically
infeasible.
When the Alaskan North Slope field was developed
$.0001 per gallon was the deciding factor. The oil industry wanted to
build
a pipeline down the east side of the Rockies. The inventory cost, the
interest
on the oil in the pipeline, was the deciding factor. Remember, the oil
in the pipeline can never be removed and someone must pay for the oil
in
the line. Once the line is full then you can remove as much as you put
in.
At that time the inventory costs of a pipeline down
the east side of the Rockies would have cost $5,000,000 more a year
than
the alternative. The pipeline capacity was to be 3,000,000 barrels per
day, so lets do the calculation. 5,000,000 divided by 3,000,000, then
divide
by 42, then divide by 365 days per year and the saving is $.0001087 per
gallon.
The oil industry is driven by fractions of cent
per gallon because of the astronomical volumes we consume each and
every
day in this country. Most people have no concept as to how large the
numbers
are. Next time a little history.
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of contents
The first oil well in the US was drilled in 1859
in PA, but the oil industry didn't really begin until after the big
strikes
in OK and TX and the wide spread use of the automobile. Smaller fields
were discovered in KA, OH, WY, and MI and a large field in Southern CA.
After WWII off shore fields were discovered in the Gulf and off
Southern
CA and later the North Slope field in Alaska was developed.
The first refineries were built near the oil fields
because transportation was lacking and the refineries were inefficient
and consumed about ten per cent of the oil; therefore, it was cheaper
to
ship the finished product long distances than to ship the oil long
distances
and the finished product a short distance. Even though modern
refineries
are much more efficient the same economics still holds.
The transportation of oil evolved from shipment
in wood barrels on a wagons, on rail box cars, on trucks; to tanker
trucks,
to rail tank cars, to boats, to pipelines, and to ocean super tankers
carrying
2 million barrels of oil. Oil was first shipped in forty gallon wood
barrels
by wagons and box cars. The story has it that the buyers were
complaining
that they didn't receive forty gallons because the barrels leaked, so
the
sellers began putting two extra gallons in each wooden barrel so the
buyers
wouldn't complain. The barrel remained at forty two gallons even after
steel barrels replaced the wood barrels.
When I first began tracking crude oil production
and finished product consumption in 1964, the US produced 12.1 million
barrels a day and consumed 13.3 million barrels a day. World oil
consumption
was about 28 million barrels a day. Until the first oil embargo (1967)
we never paid more than $1.25 a barrel for imported crude oil and most
of the time much less.
US production rose slightly as new fields were
developed,
but old wells were being depleted faster than new wells were being
brought
into production so our production is now below 6 million barrels a day,
including the North Slope oil and off shore oil.
Our consumption rose to 19.6 million barrels a day
before and dropped to 16.7 after the second oil embargo (1973). World
oil
consumption was about 40 million barrels a day. Since then our
consumption
has risen about 3% a year. World consumption was 80 million barrels a
day
last year. The estimate for this year is 83 million barrels a day with
an estimated addition of 2 million next year(06).
Our crude oil consumption has remained about 20
million barrels a day because natural gas has replaced heating oil and
heavy fuel oil in homes and industry so the oil industry has been
importing
much more finished product (gasoline and heating oil) from over seas.
It's cheaper to import than to convert heating oil
and heavy fuel into gasoline and since we must import to meet our
demand
it's cheaper to import the product to the location of the customer than
to import the crude oil and refine it and then ship it to the customer.
Next time some background information.
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Geography determines how oil is shipped.
Mountains
and large bodies of water make pipelines economically infeasible. The
east
and west coasts have very few pipelines and have the highest shipping
costs.
Because of the mountains and the lack of pipelines crossing them, oil
can
NOT be moved freely any where in the nation.
Because of this limitation the oil industry divides
the nation into three areas, the east coast, the west coast, and mid
continent.
Each area is for all practical reasons completely isolated from the
others.
This isolation places severe economic penalties when shipping oil to
meet
demand in each area.
'Not in my back yard' also plays a very important
role in determining the location of oil facilities. No new refineries
have
been built since the '70's and no new pipelines have been built except
along existing right of ways. Electric power transmission lines have
the
same problem, natural gas pipelines have had more success in obtaining
right of ways because people prefer gas to oil or electricity.
I laugh when politicians say, 'We need more
refineries.'
More is not better, more will not solve the problem. Why build more
refineries
or any oil facility if we have to import crude oil to meet our needs,
it's
cheaper to import finished products. Besides, and even more important,
the oil industry knows we don't need more facilities, if we conserve we
could reduce our imports by 4 million barrels a day, maybe more. And
most
important of all, why build any facility that will only be used for
less
than ten years, oil production will be at a maximum by then and we will
be forced to conserve.
When I first joined Leonard Refineries in 59,
Michigan
had more than eight refineries, today it has zero. Then Michigan
produced
thirty six thousand barrels a day, today less than four thousand. Now
do
you think there is a correlation here, 'little or no crude oil
production
equals no refineries'?
The refineries were small, only one refined more
than eight thousand barrels a day. As the wells became unprofitable,
the
refineries closed and sold their assets to other oil companies.
Remember, it takes energy to get energy, a well
must pump enough oil to pay for the electricity, gas, or diesel fuel to
pump the oil, an operator to check on the well and perform routine
maintenance,
the fuel for the truck and a driver to transport the oil from the well
to gathering pipelines, to pay for the lease of the well site, etc.
This
does not include the capital costs, seismic work to find the drill
site,
the cost of drilling the well, pipe, pipelines, or any of the equipment
needed. When a well does not cover the operating costs it will be shut
down and the lease forfeited.
Next time a little more history.
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As long as a well and / or a field pumps enough
oil
to cover operating costs, it will be operated in the hope of recovering
the capital costs. This is the case of the North Slope field. This
field
has been a major disappointment, it never produced its projected
quantity
and the wells are depleting much faster than anticipated.
This why the oil companies involved want to drill
in the Arctic National Wild Life Refuge. With additional wells they
might
recover their capital investment in the Alaskan pipeline or at least
get
a better return on their investment if the price increases in crude oil
has not provide the necessary return already.
If you have read my web page, you know that I'm
an environmentalist, but here is a case where I side with the oil
companies.
My argument goes like this: once resources have been spend I like to
see
them used to the fullest extent. The Alaskan pipeline is already there,
lets use it, but don't be overly optimistic about the amount of oil
produced
from the Arctic National Wild Life Refuge, I have a gut feeling that it
will be just as disappointing as the North Slope field.
The oil industry can produce oil with minimum impact
on the environment. Yes, there will be spills, accidents, and mistakes,
this is a risk I think is worth taking. Besides, why are we so
concerned
with preserving small pieces of land when we are unwilling to preserve
the whole world by not reducing our consumption of fossil fuels.
To me this piece meal approach is, just, plain
stupid
and a waste of resources. I mean it's like a doctor treating a patient
with a life threatening leg infection saying, 'The patient died, but I
saved his leg'.
The first refineries produced only two products,
lamp kerosine and wagon axle grease, a very small portion of the crude
oil. With the rest of the barrel, what they didn't burn as fuel, they
dumped
on the ground. Thus began some very bad habits and a very bad
reputation,
not to mention the environmental damage. If the early refiners and
drillers
had been more careful, 'Not in my backyard' would not be such a
powerful
force against new petroleum facilities.
At 40 million barrels a day we were dumping excess
carbon dioxide into the atmosphere, now at 80 million barrels a day we
are pouring carbon dioxide into it. Remember, for each molecule of
carbon
dioxide we dump into the atmosphere, we are removing a molecule of
oxygen,
I'm rather fond of breathing, how about you?
Next time some limits on the oil industry.
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of contents
In 59 the US had 52 integrated oil companies and
many non integrated oil companies. Integrated means that the company
does
all four activities required, production, pipeline, refine, and market.
When I retired only twenty six integrated oil companies were left,
today
even less. I don't know the exact number, but would guess at eight.
Leonard refineries bought three small refineries,
the rest were shut down and scrapped. Then CFP bought Leonard and
merged
it with a production company in Canada and changed the name to Total
Petroleum
(North America). More acquisitions and increases in refining capacity
brought
Total to forty two thousand barrels a day. Modern refineries have at
least
two hundred fifty thousand barrels per day of capacity.
More acquisitions nearly tripled Total's refining
capacity. Total's MI refinery was shut down because it was too small
and
not economical. Later, Delmar Diamond Shamrock bought Total and later
another
oil company bought them.
Michigan is a microcosm of the oil industry.
Michigan
is surrounded by water, with little crude oil production, with a large
demand for finished product, with two crude oil pipe lines (both coming
from and going to Canada) and two product pipe lines (of any size) with
three terminals and five boat terminals. That means that all products
must
be trucked from the terminals to customers, very expensive. The average
per gallon-mile was 56 miles, remember the truck has to return.
The east coast does not have any oil fields, so
obviously all crude oil must be shipped to the refineries by boat or
pipeline.
Since the number of pipelines crossing the mountains are few and the
size
of the pipe small, most of the crude oil is brought in by boat.
'Not in my back yard' severely restricts the number
of refineries on the east coast so a large share of gasoline and
heating
oil is shipped in from refineries over seas making the east coast
vulnerable
to price changes and inventory constraints.
The west coast has similar constraints with one
big exception, the Los Angeles basin oil fields. For many years these
oil
fields have supplied all of the west coast needs. As demand grew it was
cheaper to import crude oil and products across the Pacific because
only
the smallest tankers can pass through the Panama canal and the only
pipeline
across the southern desert was very small. It's cheaper to import than
to build bigger pipelines or a bigger canal.
Since the north slope production was greater than
the west coast demand and with no economic way to transport the crude
to
the mid continent, the oil industry shipped the Alaskan oil to Japan
and
exchanged it for OPEC oil to be delivered to the gulf coast. Certainly,
Japan gets cheaper oil than if they bought OPEC oil directly, but would
you do it for nothing?
Next time what is our problem.
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From an oil perspective, the mid continent is a
country
unto itself. Since most of our crude oil production is in the mid
continent,
that is where most of our refineries, pipelines, and other oil
facilities
are. It's also the area with the lowest costs.
Since refineries require large amounts of cooling
water, most refineries are built near large bodies of water, cooling
towers
are more expensive, so most of our refining capacity is on or near the
gulf coast. Which in turn makes the gulf coast the most economical
place
to import crude oil. Costs increase with distance from the gulf.
The oil industry tries to maintain about seven days
of inventory and can go as low as three days or as high as ten days
supply
without economic penalty. This does not include the inventory available
at high use industries, such as, air, truck, and rail lines, farm
storage,
etc. Since oil consumption is very predictable, the oil industry tries
to maintain a minimum inventory to meet demand to keep the cost of
inventory
low.
At over sixty dollars a barrel, inventory costs
are very high. To give you an idea of how large the problem is consider
the following. We consumed 21 million barrels a day last year, that is
one billion two hundred sixty thousand dollars a day. One penny per
gallon
is 882 million dollars a day.
To meet our consumption demand we must import seven
super tankers every day. Each super tanker holds about 2 million
barrels.
Not very many people have ever seen a 100,000 barrel storage tank.
These
tanks vary in size, but most are over 160 feet in diameter and over 30
feet high. Four of them could be placed in a standard city block. That
means that five city blocks would be needed to hold the crude oil
delivered
by one super tanker and thirty five city blocks would be need to hold
the
amount of crude oil we consume in one day and 254 city blocks would be
needed to hold a seven day supply.
Now do you have some idea about the problem we have.
More production will not solve the problem, more refineries will not
solve
the problem, we cannot continue to consume crude oil at our present
rate,
we will run out of space and money, not to mention the enviornmental
degradation.
Next time will we run out of oil?
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No, but that is the wrong question and you
already
know the answer to the right question. Will we run out of cheap oil? We
already have. Will more oil be discovered? Yes, but it will be
difficult
to find and recover and therefore expensive.
I didn't realize how much I took for granted until
I read 'Hubbert's Peak', a book I recommend you read. If you have
trouble
with his statistics and chemistry just keep reading, what he says in
between
is very important.
Here is what I took for granted: Michigan's oil
industry began in the early 1930's. What most people do not understand
by that statement is that all the major producing fields in the US and
in fact, in the whole world, had already been discovered, except for
the
North Slope, the Mexican, and Indonesian oil fields and off shore oil
fields.
How can that be?
Let me use the terms domes and bowls instead of
the technical terms. Oil is not found in caves, it is found in porous
rock.
I happened to walk into the office of one of our
production people during lunch hour, he was gone, but as I turned to
walk
out of his office I noticed what looked like a pie shaped piece of
fudge
on his desk. I picked it up and immediately recognized that it had been
plasticized, why would anyone plasticize a piece of fudge? After a
moment's
thought I realized that it was small section of core sample from an oil
well pay zone.
If oil or gas is not trapped it will come to the
surface and it does in many places around the world. The La Brea tar
pits
are world famous and I have heard people returning from a cruise blame
the oil industry for oil blooms on the Gulf. What they don't know is
that
oil and gas seeps from the Gulf floor all the time, that is how the off
shore fields were discovered. And close to my home, gas leaks from the
Traverse formation around Traverse City. Many water wells in the area
contain
natural gas.
The best place to find the most oil is under a dome,
an impervious cap that prevents the oil and gas from coming to the
surface.
A trained geologist can recognize large domes just by looking at the
terrain.
With the advent of the airplane it became even easier. Then came the
seismograph
which made it easier to locate bowl trapped oil. For oil to be trapped
in a bowl formation the strata must have been faulted so that the oil
saturated
rock layer had moved up or down so as to seal the faulted strata layer
against an impervious rock layer. Michigan is a bowl formation. The
edges
of the bowl come to the surface all around the lakes that is why gas
comes
out of the ground around Traverse City.
The other oil trapping formations are even more
difficult to find and usually the amount of oil is smaller than dome
formations.
So while it is possible that more oil will be found, the probability is
very low.
Next time it's crunch time.
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If all the other countries in the world were to
consume
energy at our rate I hate to think of what would happen. The
consumption
rate of the rest of the world is increasing at a very fast rate. My
prediction
is that world consumption of crude oil will be greater than crude oil
production
in five years. The economic consequences will be devastating and worst
of all the effect will be felt long before the actual event because
markets
are driven by perception and when people finally realize what is going
to happen, panic will ensue.
The Tuesday after 911 I drove to Petoskey from
Mackinaw
City. I passed nine gas station on my route, at each one cars and
trucks
were lined up on both sides of the road waiting to get gas. I thought
it
was odd, but it became even odder when I passed a rural station. Again,
trucks and cars were lined up on both sides of the road. Almost every
vehicle
was pulling a trailer, people were filling snowmobiles, lawn mowers,
out
board motor boat tanks, lawn tractors, spare gas cans, etc.
When I returned three hours later, all the stations
were closed with signs saying 'Out of Gas'. Three station were out of
gas
for one day, three were out of gas for two days, and three were out of
gas for three days. Now what would you do if you turned into a station
and found a 'Out of Gas' sign?
The next day I learned that someone started an email
rumor that a refinery in Chicago had been hit by the terrorists.
Fortunately
some people had enough sense to call friends in Chicago to confirm the
rumor and that was the end of that.
But what if it had been true? What if it had been
true for the whole country? What will you do? What will we do?
Shortages will be caused by panic hoarding long
before a true shortage occurs that is why we can't wait until the
crisis
comes we must act before a panic can occur. And don't look for the
politicians
to do anything, they are concerned with abortion, stem cells, prayer in
school, and terrorism. They along with most people in our country do
not
know the most dangerous threat to our country. The most dangerous
threat
to our country and to the world is oil consumption and no one is doing
any thing about it and haven't since Jimmy Carter and look what the
'idiotologues'
did to him.
It's crunch time, a conjunction of major tsunamis
will occur in five years. The solar sun spot maximum with the
possibility
of drought and a shortage of water, the maxing out of oil production
with
sky high prices, a world population over eight billion and a shortage
of
food, and the baby boomers retiring with under funded pension plans,
Social
Security, Medicare, Medicaid, etc. Are we ready?
Next time What should we do.
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First we must stop spending dollars driving to save dimes. In
order to do this we must keep track of all car expenses and calculate
an
average cost per mile. Add to it the purchase price of the vehicle
divided
by the number of miles you expect to drive the car. Then record the
number
of miles you drive to all your usual destinations and calculate a cost
per round trip.
I use one credit card for only car expenses. Each
December I record my odometer reading for each gasoline purchase and
when
I receive my January credit card statement I use the odometer reading
of
the first purchase not included on that statement for my year end
milage
and subtract it from the previous year end milage giving me my total
milage
for the year. Then I add all the gallons purchased for the last year
and
divided it by the total milage for the year. Then I add all car
expenses,
oil changes, repairs, license plates, drivers license, insurance, etc.
and divide the total by my total milage giving me a operating cost per
mile. I estimate how many miles I will drive a car when I purchase it
and
divide that into the purchase price of the new car after subtracting
the
sale price of my old car giving me the capital cost of my new car per
mile.
This number is only an estimate but it is close
enough without spending a lot of time to be more accurate to determine
how much it costs to drive to make a purchase. I then calculate my cost
to my usual destinations.
Now if you do the same you can avoid one of the
most common mistakes we make in our country. We make frequent trips to
save dimes and waste dollars driving to save them. Next time you are
about
to drive to save money on a purchase, subtract the cost of making the
trip
from your estimate of how much you will save.
I have seen people spend two or more dollars on
car expenses to save fifty cents or less on a purchase. Many times you
can save money by paying a higher price by purchasing closer to home
and
driving a shorter distance.
For example, you cannot afford to drive two extra
miles to save two cents a gallon when you fill your tank, it will not
even
pay for the extra gasoline consumed to drive the two extra miles and if
you add in the capital cost of the vehicle you cannot afford to drive
two
extra blocks.
Once you become aware of the cost of driving it
is easier to start driving smart. If you have a choice in which vehicle
you will drive always use the least cost vehicle, do not idle your car,
turn the motor off, combine trips that are in the same direction or
when
the total trip is shorter than several individual trips, coast into a
stop
light or stop sign, don't drive durning peak traffic times if you have
a choice, etc.
Come on America, do the arithmetic and stop spending
dollars to save dimes.
Next time a little knowledge.
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Why is the consumption of crude oil the most
serious
threat to our country? Let me set the stage.
During a trip to the Rose Bowl with a student from
Germany, I became very aware of how many idioms, cliches, proverbs,
etc.,
we use in our everyday speech. We could understand her perfectly, but
she
could not understand us. We were constantly interpreting our idioms,
etc.,
for her.
While the use of idioms, etc., is efficient, it
can be very misleading because we tend to quote only the part that
supports
our position and that can lead to very lazy thinking because we do not
examine other possibilities.
For example, 'A little knowledge can be dangerous',
we use only the first verse when the second verse is much more
important
and would expand our thinking.
During the time I served as a customer service
chemist
the marketing department made a request for technical help and I was
assigned
to help. One of our jobbers went bankrupt and marketing didn't want to
lose his customers and since we were his largest creditor we took
control
of his business.
The jobber went bankrupt because of very poor
business
practices one of which was that he didn't keep inventory controls, he
claimed
his drivers were stealing from him but he could not prove it because he
didn't have any records.
The first thing our company manager did was to set
up inventory controls. At the end of his first day on the job which
happened
to be a Saturday, he measured the amount of product in each of the
tanks
with a dip stick. A dip stick is nothing more than a twelve foot yard
stick.
He put water detecting paste on the bottom foot of the stick and stuck
it into each tank though a sampling hole on the top. When he removed
the
stick he could see the liquid line and read the number of inches of
product
in the tank to a quarter of an inch and also knew how many inches of
water
was in the bottom of each tank. Then by referring to a chart on each
tank
he could calculate how much product was in each tank.
On Monday morning before the drivers began to load
their trucks, he stuck each tank again and to his surprise the gasoline
tank had lost a large amount of product. Immediately, he knew there was
a leak.
He closed the valve on the line at the bottom of
the tank. Then he had a contractor remove the dirt from the underground
line from the valve to the loading rack with a back hoe and they
discovered
a union that was never brought up tight. Obviously, it had been leaking
since the first day the underground line was put into operation. No
wonder
the jobber went bankrupt.
Next time the rest of the story.
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The union was tightened and the line was put back
into service and that would have been the end of the story except for
one
very important detail. The jobbers bulk plant was next door to a grain
elevator and about a week later the grain elevator had a fire in a
small
basement underneath the office.
They called the gas company to check on a small
hot water boiler that was on the dirt floor in the basement. When they
went to check the boiler they discovered small flames coming from the
ground
in many places.
They shut off the gas at the street but the flames
continued to burn. They stuck a probe into the ground next to the
largest
flame and took a sample of the gas. The sample was analyzed and it was
not natural gas.
The elevator manager went to our bulk plant manager
and asked if he had a leak. Then phones started ringing in many
offices.
The insurance company of the elevator went ballistic and our bulk plant
manager asked for help.
After a survey of the bulk plant and the elevator,
I contracted a gravel company to bore holes between the bulk plant and
the elevator with their gravel sampling auger. Two insurance inspectors
were present when the holes were bored and when the auger brought up
gasoline
saturated soil they were very concerned about a possible fire if some
one
threw a cigarette near one of the holes.
One of the insurance inspectors was a smoker, he
threw lit cigarettes into and around the holes, but nothing happened.
To
further test their concern I took a sheet of newspaper, opened it
fully,
folded it on the diagonal, and then rolled it into a long cylinder. He
lit one end of the paper cylinder for me. I then approached a hole,
crouched
down low, extended my arm, and moved so the lit end of the paper was
over
the hole. I did this to each hole that had gasoline soaked soil and
each
hole burned with a low flame. After I had lit the fifth hole the
insurance
inspector took his cigarette lighter and lit the sixth hole before I
could
stop him.
If you have ever heard a flame front propagate down
a cylinder, it is a sound you will never forget. That sound caused him
to recoil ever so slightly, but enough to prolong his life. When the
flame
front reached the speed of sound it detonated and a flash of bright
blue
flames shot fifteen feet into the air singeing a small amount of his
hair
as he recoiled.
His partner had to support him when he stood, his
face was ghost white and he was shaking. He knew he had been within a
fraction
of an inch of death. Several minutes later he said, 'Now I know why you
did what you did'.
He had a small amount of knowledge and it was very
dangerous, it almost ended his life. He knew that each hole that I lit
burned gently and assumed all of them would and that brings us to the
second
verse and if he had known the second verse this event may not have
happened.
'A little knowledge can be dangerous, but a little ignorance can be
deadly.'
Next time a little ignorance.
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First, a little knowledge: most people know that
plants take carbon dioxide out of the atmosphere and give off oxygen,
so
what is the problem?
The problem is a little ignorance: plants consume
every atom of oxygen they produce during respiration and decomposition
and release every molecule of carbon dioxide they took in. The system
is
completely balanced, no increase in oxygen and no reduction in carbon
dioxide.
Burning is very rapid decomposition, so when we burn plant material as
a fuel the system remains completely balanced that is why organic
materials,
provided we allow them to regrow, are call 'renewables'.
And that is not the whole story. Crude oil by
definition
is a hydrocarbon, all fossil fuels are hydrocarbons. Plants produce
carbohydrates:
sugars, starches, cellulose, etc. Now when carbohydrates are consumed
they
only remove two oxygen atoms for every carbon atom, but hydrocarbons
consume
three atoms of oxygen for every carbon atom. That means that every time
we consume oil, any fosil fuel, we are reducing the amount of oxygen
available
for us to breathe.
Why worry, the atmosphere has tons and tons of
oxygen.
That is true, but starting in 1909 with the advent of the automobile,
we
have nearly tripled the amount of carbon dioxide in our atmosphere and
we will double it again in the next ten years.
I have not seen any reports indicating a reduction
in oxygen, yet, but the reports will occur within the next ten years
and
how we handle the realization of that fact will determine the fate of
our
country. If we panic, we will crash our economy or worse.
Another and a more insidious fact is that there
will be no warning, none. Everything will be relatively fine, the
economy
will be doing fine, our standard of living will still be declining, but
no one will sense that anything is wrong. But when enough people
realize
what is going to happen, look out!
Markets are driven by perception, the reality does
not have to occur for years. It is the realization that it will occur
that
will cause the panic and when this realization will occur is something
no one can predict.
The most recent reports in the scientific journals
leave me very depressed. For more than twenty five years our public has
been fed a steady stream of disinformation, making the possibility of a
panic all the more probable when people finally wake up and realize
that
they have been told a lie because they will not know who to believe.
I don't want our economy to crash, I want my grand
children to have a chance. Alternatives will take ten to twenty years
before
they can replace our current sources of energy. Oil consumption is our
biggest threat and it is also the easiest one to conserve and to
replace.
We must replace a little ignorance with education, research, and
conservation.
We cannot continue consuming fossil fuels Willy Nilly. Anarchy and
chaos
will not help, we must take an orderly approach to the problem and we
must
start NOW!
Next time no need to panic.
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of contents
When the first reports are released showing a
reduction
in oxygen, even I will be surprised if the reduction is greater than
0.2%.
We have a small amount of time, how much, I don't know the exact
amount.
All I know is that it is urgent that we reduce and eventually eliminate
the consumption of fossil fuels because once we convert hydrocarbons
and
oxygen to carbon dioxide and water, for all practical purposes, we will
never get the oxygen back.
We must make a meaningful reduction in oil
consumption,
not just a token reduction, because the trend is going up at an ever
increasing
rate. Remember, in 1909 the world oil consumption was zero for all
practical
purposes. It went to thirty million barrels a day in the '60's, to over
eighty five million barrels a day now and my projection is it will be
over
one hundred twenty million barrels a day in ten years.
Our country consumes one third of the world's energy
with less than ten per cent of the world's population, if the rest of
the
world's population consumes one third as much as we do our biosphere
will
be swamped. We are very rapidly approaching the day when we will have
to
make this decision: do I want to drive my car today or do I want to
breathe.
The transition from fossil fuels, hydrocarbons,
to renewable fuels, carbohydrates, and to other non carbon sources of
energy
will be expensive, inconvenient, and frustrating. Errors will be made,
some energy sources will only be temporary and therefore expensive. The
conversion time will be long, unless we make the conversion a very high
priority. It will take more than ten years to make the first temporary
conversions that is why we must start now.
Oil will be difficult to replace because oil is
a safe, convenient, and economical source of energy for vehicles. We
over
look the magnitude of the problem because our country has the
infrastructure
to move massive amounts of products from the source to their
destinations
very quickly. True, economics has forced this efficiency, but when you
step back and look closely at the quantities that this country moves,
it
is staggering. We take a lot for granted and that is an understatement.
Now because oil is a safe, convenient, and
economical
source of energy for vehicles, this is the source of energy that the
developing
countries are going to use. This is why oil consumption is the most
dangerous
threat to our country and it is our own fault. We have taught the rest
of the world how to consume, consume, consume and we have done it well.
If it wasn't so serious I would laugh when people
complain about the price of gasoline, we caused the price increases.
Most
people don't even have a clue to what is happening and what is going to
happen. Our public is in a state of denial.
Next time the politics of denial.
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of contents
I would like to call your attention to two
changes
in the dynamics of our politics. One change came with the advent of TV.
TV is very convenient, but TV is very restrictive, it has a very
limited
focus. When you read a newspaper if an article does not interest you,
you
simply skip it and go to the next article. You can't do that with TV.
You can switch channels, but most of the channels
are covering the same stories. Plus the fact that TV can only present a
limited amount of information in a given period of time and you can't
set
it down and go do something else and return without missing something.
The only other option is to record all the news broadcasts and
selectively
view each one. How many people have the time to do that?
Another problem, TV is expensive, so the TV
companies
are very sensitive to their advertisers wishes which places an unwanted
bias on what you see and hear on TV. When money is the deciding factor,
many times the only deciding factor, we are in great danger.
Politics has always had an element of denial,
distraction,
deception, deceit, and out right lies, but in 1950 senator Joseph
McCarthy
took it to a new level and a new intensity with his communist witch
hunt.
And our country has been hunting witches ever since, Russia, China, and
now terrorism.
Because our focus has been on witch hunts we have
made many very bad decisions, Vietnam being the worst one. TV has
played
a major role in the witch hunts because witch hunts have a very limited
and narrow focus which fits TV's limitations very well.
Sadly, when our attention is focused on the witch
hunts we are not paying attention to our real problems, we are
distracted
and are easily mislead by the 'idiotologues', so they can achieve
control
for their own limited purposes.
Earlier another change was taking place, non
disclosure.
Eisenhower made the first major non disclosure when he learned that our
military had intentionally leaked a false story about the Russians
building
longer runways, which meant that they had longer range bombers and thus
the cold war was accelerated out of control. Eisenhower nearly burst a
blood vessel when he found out, but for what ever were his reasons he
never
told the public. He never disclosed the liars. A trend that has
continued
to this day.
From '50's to the '80's many politicians, some
bureaucrats,
and a few CEO's, mainly auto and oil, denied that we had problems, but
they were willing to admit there was a possibility that we had a
problem.
Starting with the presidential election in '80 they would not even
admit
the possibility of a problem.
We have let the 'idiotologues' have complete
control,
they spin every mistake to the point where very few people even have a
chance to recognize the mistake. Is there any wonder then why our
country
is in denial about oil?
Next time some caveats.
Return to table of contents
What I'm hoping to do is to give people chance to
learn before it is too late and then to encourage them to change in an
orderly fashion so we don't crash our economy.
The politicians have made accountability in
education
a major issue during the last forty years, I would like to have an
accountability
for politicians. We are letting our politicians get away with murder,
murder
of the truth.
If we continue to let the politicians murder the
truth we will become a nation of idiots and in complete control of the
'idiotologues'. If we are incapable of determining the truth, we will
be
incapable of defining our problems and if you can not define a problem
you can never solve it.
In order to keep the witch hunts going, politicians
are presenting solutions to the wrong problem; therefore the problem is
not solved and the witch hunts never end.
Witch hunts always have an element of truth and
most important they always have an element of danger. Both fit nicely
into
an interesting theme for TV, but the truth is distorted and the danger
is misrepresented by the 'idiotologues' so they can keep control.
Without
a free press to present the data about a problem fairly the only way
the
cycle can be broken is for a major disaster to occur that exposes the
lies.
The worst lie currently being presented is about
the nature of science. The 'idiotologues' define good science as being
completely accurate, precise, and certain.
There are five subjects where I find the lack of
knowledge completely incomprehensible, especially in a country so
dependent
on all five, democracy, energy, mass production, free market and
science.
Let me use the data in my own articles in an attempt
to shed some light on science. All of my numbers are based upon my
memory
and if you visit eia.doe.gov and go to their crude oil production
numbers
you will notice that my number for peak oil production is about 3
million
barrels a day higher than theirs. If you also check their foot notes
you
will notice that their data is based on annual reports, The Gas and Oil
Journal, and the Oil Daily. My memory is based upon American Petroleum
Institute data. The API based their data on member surveys. Many small
oil companies are privately owned and do not publish a public annual
report.
Over the years as the small oil companies went out of business the
difference
between the API numbers and the government numbers disappeared, but the
question still remains which ones were correct?
Yet after reading my articles can you honestly say
that my numbers have to be completely accurate, precise, and certain in
order for you to gain some very important knowledge. Do I have to
report
the day and time to the last second, does it matter if I round off the
number of barrels to even millions instead of to the last ounce, and
when
I make a prediction, how certain must I be before you get the message
about
the danger. Does it have to be one hundred per cent certain, if so, why
do we have collision insurance on our cars and fire insurance on our
homes?
Next time some comments.
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I know carbon chemistry is much more complex than
I have presented it. For example my use of the generalization of three
oxygens to burn one hydrocarbon carbon atom, some molecules require
more,
some less. In general the longer the hydrocarbon chain the closer it
comes
to the generalization, but natural gas, methane, requires four oxygens
per carbon atom, while benzene requires two and a half oxygens per
carbon.
So while it is better to burn natural gas when
considering
global warming, it is better to burn coal when considering oxygen
consumption.
The reference point you choose will determine your outlook. Even
comparing
pounds Vs gallons will change your outlook. In other words, we cannot
expect
simplistic solutions to solve a complex problem.
We must start conserving fossil fuels now so our
technology has a chance to catch up with our life style. The process
will
be slow and expensive and our current standard of living will fall, but
when we conserve fossil fuels we are conserving oxygen. Remember, the
GDP
does not equal the standard of living.
We have had seven major spikes in the price of oil
and very few have paid attention especially the auto companies. I
expect
the price of oil to fall a little because speculators have contributed
to the price increase, but I'm afraid the next major price increase
could
crash our economy. The trend for the price of oil is up and will not
change
until demand declines which will not occur until there is a major
conservation
effort.
Talk about short term thinking, the hedge funds
are speculating in oil options and futures, I hope they reinvest their
earnings in non carbon fuel research because you can't eat money and
you
can't breath money.
I hope you will follow the lead of the few who are
paying attention to our problem. For example, our home is super
insulated
as much as our budget will allow, we have solar panels on the side of
our
home, we drive a fuel efficient car, 32 mpg on an annual basis, we
limit
our driving to necessary trips, etc. But that is a drop in the bucket
unless
many people join in.
You will not like my suggestions for what we should
do. Because we are twenty five years behind the curve we should tax all
crude oil and crude oil products both foreign and domestic at least one
dollar per gallon and tax natural gas consumption an additional penny
for
each ccf above 1000 ccf consumed per month and electricity an
additional
penny for each Kwatt above 1000 Kwatts. Make the changes in taxes
slowly
so our economy has some time to adjust. Incentives will encourage only
a few people to change their habits, but most people will respond to
changes
in their pocket book.
We will need to use mass transit, not because it
will be cheaper or save more energy, but because it will much easier
for
mass transit to use non hydrocarbon fuels. We do not have the
infrastructure
to use non hydrocarbon fuels. We need to install wind generators as
fast
as possible which will require changes in zoning laws and we will have
use nuclear energy. Alternative energy sources will not supply any
where
near the amount of energy we consume.
Next time some final comments.
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Several people mentioned that they were
disappointed
that I didn't mention a solution to our problem. I don't have a
solution
and I don't like any that have been proposed for a number of different
reasons that's why I stress conservation, we need time to develop our
technologies.
Also several people questioned my use of the word
'simplistic' in the sentence 'we cannot expect simplistic solutions to
solve a complex problem'. According to my dictionary, simplistic is an
adjective for simplism which means the act or an instance of over
simplifying;
especially : the reduction of a problem to a false simplicity by
ignoring
complicating factors.
This is exactly what the 'idoitologs' are doing.
Obviously, if a problem is defined with false simplicity, it can never
be solved.
Over the years, I have offended many people when
asked, 'What right does OPEC have to raise the price of OUR oil? Who do
they think they are?' by replying 'Cheap oil is not one of the Ten
Commandments'.
If you take the data from the five large oil
companies
on profits and crude oil production and use their average price per
barrel
of crude oil, you will find that if you subtract the profit from crude
oil from their reported profit you will find that they would have a
negative
number, that is because the cost of R & D plus the cost of
exploration
and production consumed their profits from refining and marketing.
In other words the oil companies made money not
by their own effort. It was a wind fall and so I agree that the
politicians
should place a wind fall profit tax on the oil, gas, and coal
companies.
Gas and coal will be able to raise prices based on oil costs giving
them
windfall profits as well.
I also question the large salaries on the same
grounds,
they didn't earn the large profits, so why should they get the benefit
from something they didn't do.
When the price of crude oil went over thirty dollars
a barrel, the politicians should have removed all special tax breaks to
the oil industry, for the same reason as above plus the fact that the
oil
industry doesn't need tax incentives to do what they need to do.
Although,
the statements of many oil CEO's have been down right stupid, the
engineers
and scientist of the oil companies are some of the best in the world
and
they know what has to be done for the oil companies to remain in
business.
My guess is that they are waiting to see which
technology
will be the one to use and then they will use their large amounts of
money
to exploit that technology.
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From the reports that I have read it seems to me
as if the entire scientific community has ignored the oxygen cycle. Let
me review it in an overly simplified manner.
During photosynthesis plants take carbon dioxide
from our atmosphere and remove the two oxygen atoms from the carbon and
release them into our atmosphere. The carbon is then combined with
water
to create sugar, starch, cellulose, etc., the compounds the plant needs
to live and grow. These compounds are appropriately called
carbohydrates
(carbon and water).
When a plant needs energy to live and grow it
'burns'
carbohydrates in a process called respiration and when a plant dies
microbes
'burn' the plant material in their respiration, a process we call
decomposition.
Animals eat and then 'burn' plant material during their respiration and
decompose when they die.
'Burning' reverses the process of photosynthesis,
it releases the water from the carbon atom and recombines two oxygen
atoms
with it, producing carbon dioxide. The 'burning' releases back into our
atmosphere every molecule of carbon dioxide the plants took in and
removes
every atom of oxygen the plants released, no decrease in carbon dioxide
and no increase in oxygen, a completely balanced system.
Oxygen increased in our atmosphere because plant
material was buried before it could decompose leaving behind in our
atmosphere
the oxygen that would have been 'burned' during decomposition.
For millions of years oxygen continued to increase
and carbon dioxide continued to decrease in our atmosphere as more
plant
material was buried and continues even now. Water and wind erosion
carry
plant material, sand, and silt into streams and rivers and then into
the
ocean where each layer of plant material, sand, and silt is
continuously
buried by the next layer.
If people do not understand what created the oxygen
in our atmosphere, they will never understand that the danger in
burning
fossil fuels is not just global warming.
The buried plant material was converted into fossil
fuels, coal, oil, and natural gas. During the conversion process,
oxygen
was removed from the plant material; therefore, fossil fuels are
appropriately
called hydrocarbons (hydrogen and carbon). I doubt that the oxygen
removed
during the conversion ever reached our atmosphere, it probably reacted
with minerals surrounding the buried plant material creating oxides,
such
as, iron ore.
When we burn plant material (renewable fuels) we
only remove two atoms of oxygen for every carbon atom burned, the same
as respiration and decomposition, keeping the system completely
balanced
provided we allow the plants to regrow.
When we burn fossil fuels we remove three oxygen
atoms from our atmosphere for every carbon atom burned creating an
imbalance
in the system by reducing the amount of oxygen in our atmosphere.
The decrease in oxygen will be less than a ratio
of 3 to 2 times the increase in carbon dioxide. The decrease must be
adjusted
by the ratio of the amount of fossil fuel burned to the amount of plant
material burned and for the amount of plant material buried and for the
amount of fossil fuel removed from burial.
There should never be more oxygen in our atmosphere that an amount proportional to the amount of plant material buried.
Unconsciously we have been burying tons of plant
material. Look at the amount of paper, wood, etc., that we put into our
land fills and the amount of garbage we dump into the ocean. Plus look
at all the lumber, cotton, wool, paper, etc., that we have 'buried' in
our homes and buildings. This amount may be significant.
I have read many reports indicating an increase
in carbon dioxide, but no reports indicating a decrease in oxygen. With
carbon dioxide over 0.04% we should be able to measure a reduction in
oxygen
from its current historical level of 20.99%. It should now measure
between
20.96 and 20.94%. If we continue at our current rate of reduction our
atmosphere
will contain less that 20.8% oxygen before 2050.
Because of the oxygen cycle non biological
sequestering
of carbon dioxide will be an exercise in futility, a waste of money and
time. It may help reduce global warming, but it will do nothing to stop
the reduction of oxygen.
We must reduce the consumption of fossil fuels to
the point that the system is in balance again and we must do it soon
before
the reduction in oxygen becomes significant. We may be able to recover
from global warming, but when oxygen is lost, it is lost for ever.
Thank you for reading my articles. Richard R Riker
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of contents
The following equations are deceptively simple.
CO2 + H2O ---> O2 + CH2O (a sugar unit)
CO2 + H2O <--- O2 + CH2O (a sugar unit)
CO2 + H2O <--- O3 + CH2 (a fossil fuel unit)
Notice that oxygen and carbon dioxide are on the
opposite sides of the yield sign, this means if one increases the other
decreases. When we eat, we 'burn' a sugar unit for energy, the second
equation,
we are reversing photosynthesis, the first equation. The first two
equations
are balanced, no increase in oxygen, no decrease in carbon dioxide.
When
we burn fossil fuel for energy, the third equation, we are reducing the
oxygen in our atmosphere because there is no other equation to balance
it and notice that it requires three oxygens instead of two.
We must reduce our burning of fossil fuels before
the reduction of oxygen becomes significant.
Oxygen has declined by very small amounts from
20.9476%
in 1976 to 20.9429% in 1988 to 20.9362% in 1999. As you can calculate,
oxygen declined by 3.6 ppm per year from 1976 to 1988 and by 5.6 ppm
from
1988 to 1999. This increasing rate of decline is worrysome and it
confirms
the increasing rate of carbon dioxide increase.
Our lungs are efficient over a wide range of oxygen
concentrations so healthy lungs will not have a problem breathing for a
long time to come. But with each decrease in oxygen more people with
lung
and heart disease will require supplemental oxygen, the domino effect,
increasing our health care costs. I hope you realize what this means to
the poor people around the world.
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contents
There are many very
large oil fields that produce little or no oil. Why?
Many varibles determine whether oil will flow to a
well so it can be recovered, only four will mentioned. First, and
probably the most important, is the porosity of the rock containing the
oil. If the pores are large the rock is called loose, if the pores are
very small the rock is called tight. Some rock is so tight that oil
will flow extremely slow if at all. The Green River formation of south
western Wyoming and western Colorado and the large field in North and
South Dakota are examples. It is like trying to get oil out of an
asphalt road.
Second is the viscosity of the oil. Some oils are so
viscous they are almost solid, such as the Tar Sands of Alberta. Even
high pressure steam or fire flooding the field will barely allow the
oil to flow. Such oils make good asphalt, but very little else. Attemps
to mine this type of oil is very expensive. The oil rock is mined like
open pit coal or iron ore and crushed and fed into a oven and heated
to allow the oil to flow out of the crushed rock. But the trucking of
the oil rock to the oven and the depleted rock to waste disposal
site and heati many time requires more oil than the rock contains. In
addition
the rock changes composition such that it now requires more space to
contain it than before it was mined. No one has found a solution to
disposing of the addtional rock economically.
Third is the pressure forcing the oil to move. Most
of the time water transfers pressure to the oil from below as it flows
from above and around the cap that traps the oil. Many oil fields also
have a large amount of natural gas above the oil between the oil and
the cap that traps the oil and the gas. Sometimes the natural gas is
disolved in the oil under high pressure. When a well is drilled into
such a formation, the oil and gas will flow without pumping it.
Fourth is the affinity of the rock for oil.
Depending upon the chemical composition of the rock it may attract oil
or repell it. If it attracts the oil the oil will tend to flow more
slowly than if the rock repells the oil.
Remember oil is not found in a cave, it is found in
porous rock and the characteristics of the rock and the oil will
determine if the oil can be recovered.
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