A Short Take on Oil Prices
I’m a bit of a history buff. I also like to think of myself as a practical guy. Finally, I’m lazy; I don’t like to waste allot of time figuring out some ‘new’ and esoteric way to do things if somebody has a viable way of doing it already. This leads me to my ‘Denny-the-dunce’ appraisal of our current woes regarding oil prices especially since winter is coming to New Hampshire & our winters don’t lead themselves to living in tents nor does our indoor plumbing work well when our pipes are frozen.
Here are some FACTS:
1) FACT - Back in the day when my Dad was fighting the Germans during WWII, our enemy of the day didn’t have much in the way of oil to run their Tiger tanks or ME109s. They used synthetic fuels for a lot of their needs. In fact, at the peak of their synthetic fuel production in 1943, half of their economy and their armed forces ran on synthetic fuel made from coal (which they had plenty of).
2) FACT - The United States has the largest coal reserves in the world. According to the Energy Information Agency, we’re sitting on 508 billion short tons of coal, with 274 billion tons classified as recoverable reserves, meaning they can be recovered economically using current technology. Commenting on the magnitude of the nation’s coal reserves, the Congressional Research Service reports: “U.S. recoverable reserves are estimated at 25% of total world reserves.”
3) FACT - We’ve perfected the methods developed by the Germans (starting in the 1920s) and used by I.G. Farben in Nazi Germany to a far more effective process of liquefying coal into fuel. In fact, the breakeven for a coal-to-liquids plant in the U.S. would be in the range $39-44 a barrel, assuming no tax incentives.
These are FACTS
Based on these FACTS, there appears no rocket science here. We don’t need windmills on top of every telephone pole across America, no $20,000 solar panel set up on top of every house in the land & no billion dollar tax kick backs given over to the already bloated oil companies in bed with those folks running things in the District of Corruption to solve our fuel problems. Let’s just convert the piles of coal we’re sitting on into usable fuel. If we take the breakeven production cost articulated above and give the producer (refiner) twenty bux a barrel for their profit and dividends, that brings us to, say $65. per barrel. Remember what prices were like at the time oil was $65. per barrel? Gas for your Chevy in 2007/$65. per barrel was $2.62 per gallon, heating oil to keep you from freezing to death in the New Hampshire winters was $1.85 per gallon. Would you live with that versus the $4. per gallon you’re paying at the pumps now or the $1,200. it’s going to cost you, this winter, to fill your home oil tank every time it runs dry?
If so, perhaps you should stop listening to the nitwits telling you we need to drill for new oil off Cape Cod’s beaches and pick up a pen to write your elected ‘leaders’ (your employees), and express, in a kind & politically correct fashion, to get MOVING on this instead of invading more sand dunes in the middle east to steal someone else’s natural resources, drilling off our beaches or giving more of your tax breaks to Exxon/Mobil who posted 12 BILLION dollars in profits over the last three (3) months! Forget converting the corn you probably would like to EAT into bio-fuels, synthetic-fuel technology has the potential to turn America’s enormous deposits of coal into cost-effective fuels--enough to power America deep into the 21st century and beyond. It’s just a thought...
P.S.: While we’re on the topic of fuel and oil, watch the following presentation by the former Chaplain for Atlantic Richfield’s oil fields in Alaska. According to Lindsay Williams, who was present at high level meetings with management (whom he names) the Gull Island oil find in Alaska (capped & forgotten about on orders from our government) contains more oil than the sand dunes our leaders are so fond of sending our sons & daughters, fathers and mothers to.
Links to Videos on the subject.
Most of you may also be shocked to know that almost all Alaskan crude is shipped overseas (most to Japan) while America has to import most of its oil.
Christopher T. Sununu
Mike J. Cryans
Russell E Prescott
Theodore L. Gatsas
Debora B. Pignatelli
Click on the above photos to read about each of our council members.