Oil (US) slid to $67.57 today then trickled upward which is still fairly good news to a cash strapped economy. But, we must guard against any euphoria or overindulgence in this market. The Russians are meeting today with the possibility of joining OPEC. The giant monopoly that swings oil prices to the whims of autocratic and irrational oil producing countries.
The Russians would fit right in I'm sad to say. After the fall of the Berlin wall, old guard communist leaders in the Russian government have been dicing up free market capitalism and freedom of expression for years. Bottom line, they were humiliated at the results of the cold war and will stop at nothing in an attempt to put the shine back on the Hammer and Cycle.
In my view the real price for a barrel of oil should stay well below the $50 dollar mark when you consider the actual cost of production. Particularly in the middle east, estimates of which I've seen are somewhere between $7 and $11 a barrel. Their oil infrastructure is in place and all that is required to raise their price is to turn the spigot. With the reduction in oil price shipping costs should drop as well. We'll see.
We have many enemies that drive up the price of fuel and our own lobby-led-leaders in government are number one in my view. Our government can't act like OPEC, that is, have a meeting, decide to cut production and wait for inventories to run down to force higher prices. As I have written before, OPEC does not have the teeth in our economy it once did. We have been slowly upping imports from more reliable sources and reducing our exposure, but it wouldn't take much as we've seen to set off another price hike bomb.
If we are going to counter this economic enemy we have to knock the teeth out of these cartels by developing new and better technology to slash oil use. We also need to produce more. Each day as I read technology papers and watch backyard engineering I am excited about the future. If we can get some of this simple hardware into our vehicles, OPEC and outside influences will not be an issue.
Here are some ideas and those that are working on them. Robert Krupa has developed a new spark plug design and is shopping for support to get it into the market. It's said to, well, you really need to read what is going on at his site. Robert isn't a backyard engineer either. He has the pedigree. It's just unfortunate that American Industry is so reluctant to at least put some of these ideas to test and let the market determine the results. A problem that plagues big business, is it sole is owned by the shareholder and CEO's aren't too keen on long lasting products which seems to be the case with Krupa.
Ozzie Freedom has been developing information that points to successful fuel
economy through hydrogen.
There are many directions one could go here and the uses of hydrogen can't be minimized. From cars, to trucks, to welding, to cutting steel with no pollution, we've seen hydrogen start to become a grass roots industry that is sweeping the nation.
Other developments are capacitor and generator improvements that are making electrical powered vehicles more practical. Magnet power and it's development is emerging with mind blowing possibilities. Just imagine having a magnet powered generator in your home or car that provides all the power you need without being hooked up to the grid or requiring recharging. A lot of personal struggle, testing, and toil is being expended by human motivation to put an end to the grip outside influence has on our daily lives.
All this could leave one wondering, "what if we didn't have to buy gasoline or diesel?", "Would we now have to pay for roads and bridges with a mileage tax like the truckers do?". My answer is a resounding "No". Give us the flat tax now.
Thursday, October 23, 2008
Monday, October 20, 2008
Oil At $50.00 Maybe?
Can't say for sure but OPEC will be meeting at the end of this week to consider dropping production as much as 2 million barrels a day. Hugo Chavez is talking cuts too, but if he does we all know he is aiming at his own throat! Now I ask you, what would happen if all the utility companies throughout the US got together, had a meeting to decided to raise rates or cut power by a certain percentage?
This kind of market manipulation has been going on for years and is exactly why we need to produce our own energy. Most of these OPEC countries are Muslim states and they have an entirely different view about business. Further, my understanding is most have broken every trade agreement established so they cannot be trusted in any regard.
We absolutely have to get on the ball about our energy independence. OPEC has less influence than in the past as more and more oil is being found and thrust into the market. We can start easily by conservation and that is only natural. That is exactly why oil prices have dropped. But, we must include that drop in prices to recent developments that will allow more drilling too.
Personally, I have no faith or trust in our government. We Americans as must rely upon ourselves to render the actions of outside forces useless, in influencing our lives and checkbook. Recent news about Wall Street fat cats receiving golden parachutes has raised the ire of almost all Americans. But just take a look at the extravagance Saudi and other oil families bathe in as their peasant population eats dirt and that should really make one furious.
No, we cannot afford to be at the at the receiving end of such irrational oil pricing influence. Depending on OPEC stability is like trying to build a home in the surf at low tide. With no stability there is no trust. A business cannot easily function without some hard and steadfast numbers. But when speculators, shareholders, and far too agreeable oil producers participate in the feeding frenzy that nearly broke us, it has become time to rid us of their greedy influence. I am very angry at this last and arguably, unnecessary spike in oil. So, I am doing something about it. Please consider the same.
One idea would be to build larger oil storage capacity so in the event of a shortage we could draw on the storage cushion. We also could use more refineries. Also in this mix we can and should use our own backyard talent building our own power systems where possible. That is where it should be! Each home in America should come equipped with it's very own stand alone power plant! No more power lines, poles, transformers and the like would sure go a long way in cleaning up the landscape.
There are mixes of solar, battery, wind, and magnetic devices that are available and if constructed properly can reduce your home's power considerably. These units are quickly becoming more and more attractive. Some can even sever the tie from the local utility while others get paid from the local utility. This would be a long term goal but I really believe it is possible. We need to start now.
This kind of market manipulation has been going on for years and is exactly why we need to produce our own energy. Most of these OPEC countries are Muslim states and they have an entirely different view about business. Further, my understanding is most have broken every trade agreement established so they cannot be trusted in any regard.
We absolutely have to get on the ball about our energy independence. OPEC has less influence than in the past as more and more oil is being found and thrust into the market. We can start easily by conservation and that is only natural. That is exactly why oil prices have dropped. But, we must include that drop in prices to recent developments that will allow more drilling too.
Personally, I have no faith or trust in our government. We Americans as must rely upon ourselves to render the actions of outside forces useless, in influencing our lives and checkbook. Recent news about Wall Street fat cats receiving golden parachutes has raised the ire of almost all Americans. But just take a look at the extravagance Saudi and other oil families bathe in as their peasant population eats dirt and that should really make one furious.
No, we cannot afford to be at the at the receiving end of such irrational oil pricing influence. Depending on OPEC stability is like trying to build a home in the surf at low tide. With no stability there is no trust. A business cannot easily function without some hard and steadfast numbers. But when speculators, shareholders, and far too agreeable oil producers participate in the feeding frenzy that nearly broke us, it has become time to rid us of their greedy influence. I am very angry at this last and arguably, unnecessary spike in oil. So, I am doing something about it. Please consider the same.
One idea would be to build larger oil storage capacity so in the event of a shortage we could draw on the storage cushion. We also could use more refineries. Also in this mix we can and should use our own backyard talent building our own power systems where possible. That is where it should be! Each home in America should come equipped with it's very own stand alone power plant! No more power lines, poles, transformers and the like would sure go a long way in cleaning up the landscape.
There are mixes of solar, battery, wind, and magnetic devices that are available and if constructed properly can reduce your home's power considerably. These units are quickly becoming more and more attractive. Some can even sever the tie from the local utility while others get paid from the local utility. This would be a long term goal but I really believe it is possible. We need to start now.
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