Autoblog

The price of crude oil dropped below $100-a-barrel yesterday (its lowest level since February) as the slowing economy -- bringing with it a reduced demand for oil -- raised concerns. Interestingly enough, the drop in crude didn't affect the price of gasoline as it rose 16 cents per gallon due to refinery closures from Hurricane Ike. The storm only caused moderate damage to oil platforms, but more than a dozen Texas and Louisiana refineries were shut down or idled ahead of the storm. It was just July when crude oil prices peaked at just over $145 per barrel, and gas prices neared $5 in many parts of the country. The high cost of fuel over the summer stymied drivers, who cut back on consumption forcing the price of oil to slowly retreat. Analysts who predicted doom ($200-a-barrel by the end of the year) are now scaling back their forecasts, and some have even predicted crude may eventually drop to $70-a-barrel. While we obviously welcome any drop in the price of crude, it's the volatility -- the sharp fluctuations as a result of market conditions -- that we would also like to see addressed.

[Source: New York Times, Photo by ADEK BERRY/AFP/Getty]

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]

I'm not an investor nor into playing the markets, but I'm staring at a graph right now showing that the price of a barrel of crude oil on the New York Merchantile Index hit $100 shortly after noon EST today, and even I know that's kind of a big thing. This is for the price of crude oil futures for February delivery, which we hope a business major will explain in the comments, but nevertheless marks a new all-time high for the cost of crude oil and that's news. It's been close to $100 a barrel a couple of times in the past few months, so passing this "symbolic level" for the first time doesn't really change anything overnight, especially since it stayed that high for just a bit before falling again. $100 a barrel, though, isn't far off from the all-time inflation-adjusted high of $102 a barrel we were paying for crude oil back in 1980 after the Iranian Revolution.

[Source: International Herald Tribune, Photo by ADEK BERRY/AFP/Getty]