Archive for the ‘Oil’ Category

US, Canada, Russia, Denmark and Norway are becoming embroiled in disputes over boundaries on land and at sea

July 9, 2011

The United States and Canada still disagree on the setting of the boundaries in the Beaufort Sea – an area of intense interest to oil drillers.

Similarly, Canada has yet to resolve a dispute with Denmark over the ownership of Hans Island and where the control line should be drawn in the strait between Greenland (whose sovereignty remains with Denmark) and Ellesmere Island.

http://www.guardian.co.uk/world/2011/jul/06/arctic-resources-territorial-dispute

More:  http://www.guardian.co.uk/world/2011/jul/06/us-russia-political-tensions-arctic

The message was clear: the US is putting itself at the centre of the debate about the future of the far north at a time when a new oil and mineral “cold rush” is under way as global warming makes extraction more easy. And being the US, the soft diplomacy was backed up with a bit of symbolic hardware. A few weeks earlier two nuclear-powered submarines were sent to patrol 150 miles north of Prudhoe Bay, Alaska.

 

 

 

 

 

 

 

History of Oil Prices

June 8, 2011

This is a great chart showing the history of oil prices in both inflation adjusted 2010 dollars and non adjusted dollar values.

 

 

How much does renewable energy cost?

May 18, 2011

Nevermind that:

Ethanol and Biodiesel comes with food shortages.  Food riots are fun.  You can make some biodiesels from fryer grease and other waste, but there’s only so much of that available.

Wind energy consumes habitats, shreds birds, and causes a variety of other health problems.  And it only works when the wind blows just right.

Solar energy requires exotic ores that come from strip mining third world countries, which used to be bad until it was green.

Sudden Drop in Crude Prices

May 5, 2011

Let’s see how long it takes at the pump.  Crude prices have dropped below $100 from over $110 yesterday.

I was pointing out to a few people the other day that if it wasn’t for the $1.05 USD / CAD exchange rate we would be paying around $2/L right now.  The 30% hike in prices is about what is to be expected with supply interuptions, but the overall price is due to the inflating US dollar.

If you re calculate the price of gas using gold as currency instead of the US dollar, you get the chart shown below.

Taking a ratio of average American and average Canadian gas prices gives about 1.29 (so our gas is naturally 30% more expensive to pay for socialism).
Comparing this to the chart suggests we should actually be paying 48.3 for our fuel.  The rest is due to inflation caused by printing the money required to pay for social programs.
FYI, unpegging from the US dollar won’t fix our problem due to the close connection of our economies.  It will help Russia and China, which is why they are leading the call.

What’s the point?  It’s to illustrate the difference between economics and finance.  Economics deals with wealth (consumables, production, resources) while finance deals with money (pieces of paper).  Allowing people who do not understand the difference to govern is how we get rampant inflation which simply makes the average person less wealthy.  Most people only have money (pieces of paper) and possibly property (but usually this wealth belongs to the bank for people under 50) as opposed to real wealth (bars of gold, barrels of oil, bushels of wheat, properties).  So, when inflation hits your pieces of paper get you less than they did before.  The bar of gold is still a bar of gold.

Click the chart below for the original article.