Autoblog

What if it turns out there's plenty of oil? [w/video]

John McElroy — Tue, 19 Jul 2011 19:01:00 EST

Filed under: Plants/Manufacturing, Videos, Autoline on Autoblog

As the relative price of gasoline drops, people are not motivated to buy small, fuel efficient cars.

All the top executives in the auto industry tell me that oil supplies will only get tighter this decade. They predict that fuel prices will do nothing but go up. And they say customers will be clamoring for small, fuel-efficient cars. Or electric ones. But what if it turns out they're wrong?

After all, over the last century the price of a gallon of gasoline in the United States, on an inflation-adjusted basis, has always come down. Always. Data from the Energy Information Administration shows that since 1919 the price of gasoline has spiked during war time or global turmoil, but it has always come down after that. This is a key reason why Corporate Average Fuel Economy regulations have not worked. As the relative price of gasoline drops over time, people are not motivated to buy small, fuel efficient cars.

A decade ago, the Peak Oil theory attracted a lot of adherents. It postulated that global oil production would peak in 2006, and that the following shortage would send oil prices skyrocketing. Sure enough, in 2008 a barrel of oil shot to $150. It looked like the Peak Oil theory was coming true. But less than 12 months later it dropped to under $40 a barrel. And though the price is now closer to $100 you don't hear as much talk about Peak Oil anymore. Here's why.

John McElroy is host of the TV program "Autoline Detroit" and daily web video "Autoline Daily". Every week he brings his unique insights as a Detroit insider to Autoblog readers.

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What if it turns out there's plenty of oil? [w/video] originally appeared on Autoblog on Tue, 19 Jul 2011 19:01:00 EST. Please see our terms for use of feeds.

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Saudi prince worried over increasing fuel economy standards and technology

Autoblog Staff — Fri, 03 Jun 2011 17:56:00 EST

This may sound surprising, but Saudi Prince Al-Waleed bin Talal has gone on record saying he wants the price of oil to decrease. Why's that you ask? It's all about the long-term game, says the Saudi Royal Family's stock market and real estate magnate. In a recent interview with "CNN's Fareed Zakaria GPS," Al Waleed admits:

We don't want the West to go and find alternatives, because, clearly, the higher the price of oil goes, the more they have incentives to go and find alternatives.

Talal goes on to say that he thinks the price of oil should be closer to $70 to $80 a barrel instead of the current $100/barrel rate. With such high oil and gasoline prices, Talal fears that new technologies are being pushed ever harder to squeeze more and more miles out of each gallon of gas. Further, Talal worries that U.S. efforts to increase its Corporate Average Fuel Economy standards to 35.5 mpg by 2016 and anywhere from 47 to 62 mpg by 2025 (along with automakers' burgeoning EV strategies) could eventually lead to reduced or eliminated dependence on Saudi oil.

Saudi prince worried over increasing fuel economy standards and technology originally appeared on Autoblog on Fri, 03 Jun 2011 17:56:00 EST. Please see our terms for use of feeds.

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Senate votes down bill to end oil company subsidies, see how they voted and who gets oil money

Autoblog Staff — Fri, 20 May 2011 09:28:00 EST

Filed under: Government/Legal

As expected, a Democratic bill that would have put an end to the multi-billion-dollar annual tax subsidies for oil companies Chevron, Shell, BP, ConocoPhillips and Exxon Mobil failed to overcome a Republican filibuster on Tuesday evening. The heavily partisan 52-in-favor, 48-against vote fell eight shy of the 60 required to bring the bill to the floor.

If passed, the bill would have eliminated $12 billion in subsidies for production of oil within the U.S. and cut $6 billion in credits for taxes that oil companies pay to foreign governments. Finally, the bill would have put an end to oil companies writing off some drilling and development costs.

According to the Huffington Post, Republicans say that the bill unfairly singles out oil companies and would hinder their ability to hire American workers, thus leading to reduced oil production and increased dependence on foreign oil. Democrats argue that subsidies are unnecessary given that oil companies typically report profits in the multi-billion dollar range.

Three Democrats - Mary Landrieu (D-LA, pictured), Mark Begich (D-AK), and Ben Nelson (D-NE) - voted with Republicans to maintain the subsidies, while Olympia Snowe (R-ME) and Susan Collins (R-ME) sided with the Democrats.

As this chart - based on data from the Center for Responsive Politics - shows, the 48 senators who voted with the oil industry received over $21 million in oil-related contributions, while the 52 senators who voted to eliminate subsidies received a mere $5.4 million. Looks like money talks.

Senate votes down bill to end oil company subsidies, see how they voted and who gets oil money originally appeared on Autoblog on Fri, 20 May 2011 09:28:00 EST. Please see our terms for use of feeds.

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Lubricheck digital "blood tester" for engine oil seeking backers

Zach Bowman — Thu, 19 May 2011 14:32:00 EST

Filed under: Aftermarket, Etc., Technology

Lubricheck oil tester - Click above to watch video after the jump

Most of us maintain our vehicles either by the manufacturer's recommended service intervals or some arcane calendar handed down from generation to generation. Either way, changing a vehicle's oil is usually done on either a time or mileage basis, not the actual level of oil degradation inside the engine. A new startup project is looking to change that for the consumer with a device called the Lubricheck. Simply plop a few drops of oil onto the device's sensor, and it can automatically detect contaminates like metal and antifreeze as well as the acidity of the oil to determine the lubricant's serviceability.

The device even has settings for traditional and synthetic oils, so all of your bases are covered. Devices like these already exist in the market, but they cost a pretty penny and are typically relegated to the dark recesses of high-end mechanics' toolboxes. The individuals behind Lubricheck estimate that in some applications, oil could last as long as 10,000 miles before seeing significant breakdown. If true, the device could help seriously curtail our nation's engine oil intake.

Hit the jump to take a look at the introduction video for yourself. If you like what you see, the project is currently seeking backers.

Continue reading Lubricheck digital "blood tester" for engine oil seeking backers

Lubricheck digital "blood tester" for engine oil seeking backers originally appeared on Autoblog on Thu, 19 May 2011 14:32:00 EST. Please see our terms for use of feeds.

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Wikileaks: U.S. believes Saudi Arabia is running out of oil

Jeremy Korzeniewski — Wed, 09 Feb 2011 15:24:00 EST

Peak oil, according to Wikipedia, is the point in time when the maximum rate of global petroleum extraction is reached, after which the rate of production enters terminal decline. Opinions vary on when the world will actually reach a peak oil scenario, but a new report detailed by Julian Assange's infamous Wikileaks website indicates the United States believes it's staring us right in the face - as early as 2012.

Maybe that's what the Mayan calendar is on about?

It may not exactly be the end of the world as we know it, but if the report is accurate, it could mean death to a number of popular vehicular segments; namely the gas-guzzling sport utility vehicle, heavy-duty pickup truck and possible even the mainstream performance car. Electric and hybrid Mustang and Camaro models might not look so bad in the very near future, eh?

This revalatory report centers around a meeting between Sadad al-Husseini, a geologist and former head of exploration at Aramco (the state-owned national oil company of Saudi Arabia), and U.S. officials. Husseini, an expert on the subject, suggested that Saudi Arabia doesn't have as much oil left as the country wants us to believe and that it is unlikely to continue producing its current rate of 12.5 million barrels per day.

None of this is to say that the world has run out of oil - far from it, in fact - but it does mean that Saudi Arabia, the largest country in the Middle East and the country that's thought by experts to hold about one-fifth of the world's proven total petroleum reserves, won't be able to provide enough oil to keep the world operating as it does today.

If nothing else, this report gives us reason to believe that oil prices won't stay nearly as low as they currently are, and that large-scale price increases could happen sooner rather than later. Thanks for the tip, Glenton!

[Source: Yahoo News | Image: Marwan Naamani/AFP/Getty]

Wikileaks: U.S. believes Saudi Arabia is running out of oil originally appeared on Autoblog on Wed, 09 Feb 2011 15:24:00 EST. Please see our terms for use of feeds.

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DOE: Oil will average $99/barrel by end of 2012; gas $3.29 per gallon

Autoblog Staff — Tue, 01 Feb 2011 10:31:00 EST

Filed under: Etc.

According to the DOE's Energy Information Administration (EIA), crude oil prices are expected to steadily increase over the next two years, hitting $99 per barrel by the end of 2012. Tightening of world oil markets, along with a growth in consumption, will continue to drive oil prices up from the recorded average of $89 a barrel in December 2010 to an estimated $93 per barrel for 2011.

Higher crude oil prices directly translate into increases at the pump. The EIA projects that regular-grade gasoline will climb from the documented average of $2.78 per gallon in 2010 to $3.17 in 2011 and hit $3.29 per gallon by the end of 2012. Likewise, the cost of diesel fuel is estimated to soar from the recorded $2.99 per gallon in 2010 to $3.52 in 2012. Adding to the pain at the pump, the EIA predicts that there's at least a seven percent chance that the retail price of gasoline could, once again, exceed the $4 mark at some point this July.

[Source: U.S. Department of Energy | Image: Kari_Marie - C.C. License 2.0]

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Report: Americans using 8% less gasoline than 2006 peak, will never go up again

Jeremy Korzeniewski — Wed, 22 Dec 2010 15:31:00 EST

Filed under: Etc.

Peak oil, according to the great and all-knowing Wikipedia, "is the point in time when the maximum rate of global petroleum extraction is reached, after which the rate of production enters terminal decline." Regardless of your opinions on whether or not the planet has entered into its Peak Oil stage, it would seem that the United States has at least entered the stage of steady decline in usage.

Here's the hard data according to the Associated Press: Americans averaged about 8.2 million barrels of oil, or 344 gallons, per day in 2010, which is an eight percent drop since the country's peak in 2006. Experts seem to agree that gasoline usage in the States will continue to drop - as much as 20 percent by the year 2030, despite millions of additional cars on the roads - barring any unexpected periods of economic boom or another meteoric drop in fuel prices.

Before environmentalists get too excited, though, the falling trend of gasoline usage only applies to the United States, which is still by far the world's largest consumer of oil. Demand from emerging countries, especially China and India, will more than make up for the declining usage in the U.S., leading to an expected record of 88.3 million barrels of oil produced in 2011. The more things change, they more they stay the same...

[Source: The Associated Press via Google | Image: Farther Along via CC 2.0]

Report: Americans using 8% less gasoline than 2006 peak, will never go up again originally appeared on Autoblog on Wed, 22 Dec 2010 15:31:00 EST. Please see our terms for use of feeds.

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BP "buzz" rating falls below Toyota after oil spill

Chris Shunk — Wed, 12 May 2010 18:58:00 EST

Filed under: Etc., Toyota

British consumer research firm YouGov BrandIndex polls 5,000 adults every weekday to allocate a so-called buzz rating to some of the most important consumer brands in the world. The buzz rating of a brand can fluctuate wildly if, for example, a new product or service is announced. Let loose a piece of really good news and your buzz rating can hit 100 points. But negative news about a brand can send the buzz factor plummeting to minus 100 points. Sounds like TMZ-style ratings for corporations to us, but it's an important gauge of customer sentiment anyway.

As you might imagine, the past couple weeks have been a major buzz kill for BP, as millions of gallons of oil are floating across the Gulf of Mexico. The explosion of the oil platform and resulting oil disaster has lead BP to a buzz rating of about negative 60; a drop of over 100 points from pre-explosion levels. BP's score has dropped so far that the oil company has surpassed Toyota as the company at the bottom of the buzz barrel. Toyota's buzz rating dropped from superstar status to corporate cad in a matter of a few days due to its recent recall woes.

With thousands of square miles of contaminated sea water, a potentially ruined Louisiana fishing industry, a badly damaged ecosystem and no immediate fix for the problem, we're thinking Toyota's problems pale in comparison to BP's. Yet amazingly, BP's buzz rating isn't all that much worse than Toyota's.

[Source: TPM | Image: Mark Wilson/Getty Images]

BP "buzz" rating falls below Toyota after oil spill originally appeared on Autoblog on Wed, 12 May 2010 18:58:00 EST. Please see our terms for use of feeds.

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Technology Alert: The dipstick's demise is blamed on dilatory drivers

Michael Harley — Thu, 22 Apr 2010 15:01:00 EST

Filed under: Etc., Technology, Audi, BMW, Porsche

The practice of opening the hood at every fuel stop used to be routine. With an oil-soaked rag in hand, the worker reached over and pulled out the hot metal dipstick, and after a quick cleaning swipe, the dipstick was plunged back into its tube and pushed down into the sump of scalding oil. Withdrawn again, a tell-tale black film in the middle of the scored lines marked the oil level very accurately.

Today, many late model vehicles are running sans oil dipstick. Electronic oil level senders have replaced the metal rod - to the bafflement and frustration of the few remaining hands-on enthusiasts everywhere.

In an effort to find out who exactly is responsible for the dipstick-abolishing movement, Autoblog contacted Audi, BMW and Porsche - three respected German automakers who have embraced the technology for several years. All three gave us the same answer. Contrary to Internet rumors, the elimination of an inexpensive metal rod is not a cost-cutting measure, nor is it an environmental issue (word on the web said each check of a dipstick introduced ounces of polluting dirty oil into the ecosystem).

Quite frankly, the automakers point out that we simply don't need dipsticks anymore. Why? Because owners don't use them. While they don't specifically say it, those who engineer and assemble our new cars (and guarantee new vehicle warranties) are much more comfortable knowing that a silicon chip is monitoring the oil level - not a consumer who hasn't checked tire pressures (or even opened the hood) since the last time the Vikings won the Super Bowl.

Today's comatose driver expects everything to be automated - and it is. Look no further than the myriad of digitized warning lights on the dashboard when the key is turned (um... make that the start button). Don't blame the automakers for the disappearance of the dipstick - blame the public at large.

Photo by Michael Harley / Copyright (C)2010 Weblogs, Inc.

Technology Alert: The dipstick's demise is blamed on dilatory drivers originally appeared on Autoblog on Thu, 22 Apr 2010 15:01:00 EST. Please see our terms for use of feeds.

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Video: Shell makes a Nissan 370Z for the Invisible Man to showcase lubricants

Jonathon Ramsey — Wed, 21 Apr 2010 19:24:00 EST

Filed under: Marketing/Advertising, Videos

Shell Helix commercial - Click above to view the videos after the jump

Shell's commissioned ad agency JWT to create a spot showing off the wondrous properties of Shell's Helix lubricants. JWT then commissioned Asylum Models and Effects to create a transparent Nissan 370Z out of Perspex. While we're surprised that - Shell being Shell - they didn't use a Ferrari, after watching the commercial's companion making-of video, we think we get it. And hey, we're not going to sneeze at a working, transparent car no matter what it is. Follow the jump for both videos.

[Source: Paul Tan]

Continue reading Video: Shell makes a Nissan 370Z for the Invisible Man to showcase lubricants

Video: Shell makes a Nissan 370Z for the Invisible Man to showcase lubricants originally appeared on Autoblog on Wed, 21 Apr 2010 19:24:00 EST. Please see our terms for use of feeds.

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REPORT: BP finds big oil in Gulf of Mexico

Chris Shunk — Sat, 05 Sep 2009 18:03:00 EST

Filed under: Plants/Manufacturing

Even during the recession, oil is hovering at around $70 per barrel. There are many reasons for elevated oil prices, such as emerging markets demanding more crude and market speculators. Perhaps the biggest reason of all, however, is that oil is just harder to come by, as all the obvious spots have already been drilled.

So when a massive oil reserve is uncovered, it's big news. British Petroleum has made just such a find, as it has reportedly discovered between three and six billion barrels of crude oil and natural gas in the Gulf of Mexico about 250 miles off the coast of Texas. The find was made after BP drilled down a record seven miles, giving the oil giant another massive reserve a few hundred miles from where the natural resource is used most.

Autoline Daily notes that BP already pumps about 400,000 barrels per day in the region, and experts say the find could result in another 250,000 barrels of black gold a day towards the end of the next decade. That sounds mighty impressive until you remember that the U.S. uses about 20 million barrels of oil every day. Follow the jump to watch the latest edition of Autoline Daily.

[Source: Autoline Daily | Image: Roslan Rahman/AFP/Getty]

Continue reading REPORT: BP finds big oil in Gulf of Mexico

REPORT: BP finds big oil in Gulf of Mexico originally appeared on Autoblog on Sat, 05 Sep 2009 18:03:00 EST. Please see our terms for use of feeds.

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Autoline on Autoblog with John McElroy

John McElroy — Fri, 10 Apr 2009 15:57:00 EST

Filed under: Autoline on Autoblog

IT'S A FUEL PROBLEM, NOT A FUEL ECONOMY PROBLEM

Every single day, the United States ships $600,000,000 out of the country. That's what it costs us to pay for the oil we buy from other countries at $50 a barrel. It is the single biggest cause of our massive trade deficit.

The U.S. uses roughly 20 million barrels of oil every single day, and about 60% of that is imported. About 10 million of those barrels are used in transportation, including the kinds of cars and trucks you and I drive, plus all the planes, trains, heavy trucks and off-road vehicles in the country.

Yet, our entire effort to reduce our dependence on oil is based on Corporate Average Fuel Economy regulations (CAFE). And that only impacts passenger cars and light trucks. In other words, the industry that causes less than 50% of the problem is bearing 100% of the effort to fix it. No other industry is being regulated to reduce our dependence on oil, and that doesn't look like a very effective approach to me.

____________________________________________________________________________________

John McElroy is host of the TV program "Autoline Detroit" and daily web video "Autoline Daily". Every week he brings his unique insights as an auto industry insider to Autoblog readers.
____________________________________________________________________________________

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Autoline on Autoblog with John McElroy originally appeared on Autoblog on Fri, 10 Apr 2009 15:57:00 EST. Please see our terms for use of feeds.

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Russia expected to be third largest global market by 2012

Jonathon Ramsey — Wed, 21 Jan 2009 11:27:00 EST

Filed under: Etc., Europe, Earnings/Financials, Russia

Russia has long been included under the "emerging markets" umbrella that carmakers have been saying would lead to future industry growth. The economic fallout put an end to those predictions, with Russia suffering just as badly - and if you include the oil sector, some would say even worse - as any other economy. But even though sales are down, Frost & Sullivan predicts that Russia could rebound to be the world's 3rd largest auto market by 2012, behind the U.S. and China.

The prediction is based on steps Russia is taking to strengthen its automotive sector: it is increasing import tariffs and limiting the importation of used cars. The new importation law, similar to one recently passed by Bolivia, reduces the maximum allowable age of an imported car from 7 years to 5. Russia is also reviewing bank lending practices, since the money it flushed into the economy hasn't really had an effect on loan availability yet (not unlike the U.S.).

Lending and the size of the import tariff that Russia imposes seem to be the most important factors in making this prediction come true. But one thing not mentioned in Frost & Sullivan's forecast was oil. When the world economy gets off its knees, the price of oil is going to head for the moon again, and "expensive" oil means more Russians with money, and that could mean a return to more sales, provided the country's oil barons share the wealth. You can read the full press release after the jump.

[Source: Frost & Sullivan]

Continue reading Russia expected to be third largest global market by 2012

Russia expected to be third largest global market by 2012 originally appeared on Autoblog on Wed, 21 Jan 2009 11:27:00 EST. Please see our terms for use of feeds.

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Interactive map reveals our global oil useage by barrel, money

Jonathon Ramsey — Sat, 10 Jan 2009 10:02:00 EST

Filed under: Etc.

The Rocky Mountain Institute has created a nifty interactive map that shows you where the U.S. gets its oil from, along with how much - and who - the U.S. pays for its oil. Based on the thickness of the lines, you can see just how much black stuff is coming from where. The map goes as far back as 1973, the year of the first oil crisis, and is accompanied by a graph charting usage and dollars since then. As you'll notice in the pic above, we give a whole lot of money to Saudi Arabia, as well as our Canuck friends up north.

Additionally, RMI has included information on oil production in the Arctic National Wildlife Refuge and the Outer Continental Shelf (in the Gulf) There are some interesting factoids to be found: ANWR drilling wouldn't start until 7-12 years after it's opened up, and peak production - up to 1.9 million barrels-per-day - isn't expected to commence until 20-30 years after that. Thus, drilling in the OCS probably won''t have any impact on fuel prices until 2030. Follow the link to check it out for yourself. Hat tip to reader Rick!

[Source: Technology Review]

Interactive map reveals our global oil useage by barrel, money originally appeared on Autoblog on Sat, 10 Jan 2009 10:02:00 EST. Please see our terms for use of feeds.

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The NYT chimes in: time for a gas tax

Jonathon Ramsey — Sun, 28 Dec 2008 13:04:00 EST

Filed under: Government/Legal, Lifestyle

Can you hear that? Those are the war drums, and more and more of them are beating the same tune: bring on the gas tax. An editorial in The Gray Lady is the latest and arguably the weightiest to join the shock troops advocating for higher gas prices. The writer proposes a fluctuating consumption tax that would keep gas at least $4 per gallon in 2008 dollars, while an economist suggests a sliding tax on the price of a barrel of oil to achieve the same effect.

The NYT admits "a bitter recession is not the most opportune time to ratchet up the price of energy." But it balances that against the coming Obama administration's aims, the government's enviro-friendly suggestions to the U.S. auto industry, and Americans' claims to want to get off of foreign oil.

Although not mentioned specifically in the Times piece, some recommend a gas tax for a reason that has nothing to do with environmental stewardship: state governments need money. States are making enormous budget cuts, trying to sell and lease their lotteries, state parks, roads, bridges, and even their airports, and lining up for federal aid totaling hundreds of billions of dollars, and still saying they won't have enough money. The answer to "Will there be a gas tax?" could be, as Jesse Jackson once said, "The question is moot!" The question is not whether there will be a gas tax, but whether you will pay your additional taxes at the pump, at the toll booth, in your paycheck, etc...

[Source: New York Times]

The NYT chimes in: time for a gas tax originally appeared on Autoblog on Sun, 28 Dec 2008 13:04:00 EST. Please see our terms for use of feeds.

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Gas too cheap: OPEC approves largest output cut ever

Jonathon Ramsey — Wed, 17 Dec 2008 16:30:00 EST

Filed under: Etc., Lifestyle, Russia

You didn't really think OPEC was going to pack up its supercar fleet and shut down the holiday mansions while $1.55 gasoline -- and that's in California -- ruled the day, did you? Oh no. OPEC hasn't merely cut production, it gutted production by the never-before-seen amount of 2.2 million barrels per day. As for the market, surprised as it might have been, fazed it wasn't: oil sank to $40.20/barrel immediately after Khelil's announcement. Those are 2004 prices, which means - as far as oil's concerned - we're living Back to the Future.

[Source: MSNBC via Truckblog, photo by XcBiker | CC 2.0]

Continue reading Gas too cheap: OPEC approves largest output cut ever

Gas too cheap: OPEC approves largest output cut ever originally appeared on Autoblog on Wed, 17 Dec 2008 16:30:00 EST. Please see our terms for use of feeds.

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Gas prices pleasant as economy tanks

Chris Shunk — Fri, 10 Oct 2008 18:32:00 EST

The US, and in fact the entire civilized world, is knee deep in a financial meltdown. However, crashing stock markets and crumbling banking institutions have led to one pleasant side effect. The price of gas is dropping faster than the NASDAQ. A quick trip through south-east Michigan shows that gas prices have dropped below the $3.00 threshold, and tumbling crude prices show that even cheaper petrol is on the way. A barrel of oil now costs $77.70, which is in stark contrast to the $147 per barrel crude in July that lead to $4.25 per gallon gasoline. That's a drop of nearly $9.00 today alone, and OPEC has scheduled an emergency meeting to try to halt the precipitous drop of black gold. And since we're paying under $3.00 per gallon for oil that was purchased last month, that means we won't bear the fruit of the recent drop in crude until November.

While many of you were with us in praying for this drop, it's coming at a huge price. Gas is becoming more affordable because a set of Texas-sized Brembos put the brakes on energy use, but at least it's cheaper. At this rate, if the get depressed about the economy, we can afford to go for a quick ride without having to take out another loan on our crashing mortgages.

[Source: CNN Money]

Gas prices pleasant as economy tanks originally appeared on Autoblog on Fri, 10 Oct 2008 18:32:00 EST. Please see our terms for use of feeds.

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Could U.S. become net exporter of gasoline?

Jonathon Ramsey — Thu, 28 Aug 2008 17:32:00 EST

Filed under: Hybrid, Etc., Green

A number of factors are conspiring to create a situation that recently would have been unthinkable: the United States as a supplier of gasoline to world markets. According to Booz & Company, those factors are the rise of biofuels in the West, the introduction of plug-in electric and other alternative fuel vehicles, and the growth of the really cheap car, like the Tata Nano.

The United States imports oil to feed its gasoline habit, but the U.S. has refining capacity that developing nations cannot match. The U.S. is also lowering its reliance on traditional gasoline due to the price, states' mandates on switching to biofuels, and the dawn of mass market alternative fuel vehicles. This adds up to the United States importing oil, and then selling it to nations like India and China to feed their larger appetites for gasoline.

In the middle of all of this are the refineries, who made predictions for today's business plans two decades ago. Sure, no one is crying for them -- they need extra pages to include the zeros on their profit statements -- but they have to start figuring out who's going to need which products and how they are going to deliver them. And, by refining company standards, they need to do it quickly, which is a method of operation they aren't well versed in.

[Source: Green Car Congress via Kicking Tires; Photo CC 2.0 - National Archives]

Could U.S. become net exporter of gasoline? originally appeared on Autoblog on Thu, 28 Aug 2008 17:32:00 EST. Please see our terms for use of feeds.

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Is it over yet? Oil prices drop like a rock

Chris Shunk — Sat, 19 Jul 2008 13:06:00 EST

Filed under: Etc.

There's been a lot of head-scratching about the exact cause of the meteoric rise in price for a barrel of oil. Are speculators driving it to turn a quick buck? Is it the weakening value of the U.S. dollar? How about increaded worldwide demand? Chances are, all those forces are playing a part in the rise of fuel prices, and no single solution is likely to fix the problem.

Just as it was starting to look like prices would rise on a daily basis for the rest of eternity, the price of a barrel of oil dropped by $16 from Tuesday to Thursday. Economists point to the dismal economic and inflation news as a main factor for the drop. All we know is that ever since gas got more expensive, everything else started to follow suit. That leads us to spend less on things that we don't absolutely need, which probably isn't good for the economy.

With news of the large drop in the price of a barrel of crude, Wall Street got all excited and responded with a couple days of very positive gains in the stock market. Good news, right? Well, oil jumped by over $2 on Friday morning alone, so we'll have to see. Is the $4 per gallon nightmare almost over? Probably not, but we can hope.

[Source: Yahoo, Photo: Getty/Justin Sullivan]

Is it over yet? Oil prices drop like a rock originally appeared on Autoblog on Sat, 19 Jul 2008 13:06:00 EST. Please see our terms for use of feeds.

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Scientists create bacteria that eat junk, produce oil

Jonathon Ramsey — Wed, 18 Jun 2008 09:31:00 EST

Filed under: Etc., Green, Technology

A company called LS9 is creating nearly pump-ready oil using single-celled bacteria. They start with industrial yeast organisms or "non-pathogenic strains of E. coli," and redesign their DNA so that they produce a different kind of waste. Crude oil is not far removed, molecularly, from the fatty acids expelled by yeast or E. coli during fermentation, so a little bit of DNA alteration bypasses the fatty acids and produces "Oil 2.0."

The "bugs" can be fed a variety of feedstock, from politically sensitive corn to Brazilian sugar cane to California wheat straw to Southern wood chips. The result is the same: crude oil that is almost ready to pour into your car. What's more: the enterprise is carbon negative, putting out less CO2 than the operation requires. At the moment it takes a 1,000-liter fermentation machine one week to make a 40-gallon drum of crude.

It will be a moment before they have a seamless industrial-sized operation. And there is that little concern of hundreds of billions of genetically-altered critters getting free and wreaking havoc on kids and puppies. But the promise of a steady supply of safely created $40 oil -- because even the Volt will need oil -- is not a bad thing to consider. Thanks for the tip, Brad!

[Source: Times Online via Engadget]

Scientists create bacteria that eat junk, produce oil originally appeared on Autoblog on Wed, 18 Jun 2008 09:31:00 EST. Please see our terms for use of feeds.

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