Oil prices up 30% in May – Nearing OPEC’s stated $75/bbl goal
Oil consumers are in for a painful case of deja-vu this summer as oil prices continue to recover from last fall’s collapse. The “double hockeystick” hook at the end of the historic oil price charts continues moving upwards faster than anytime in recent history (up 30% this month - the fastest climb since the March 1999) to settle yesterday over $66/bbl – only $9 off OPEC’s “preferred” price of $75/bbl.
Nothing of merit has changed in our transportation energy sector – we still have the same petroleum-only supply/distribution/consumption system as before. Despite the continued general stagnation in demand, price controlling cuts in production imposed by OPEC seem to be having an effect on market prices. While crude continues to be stockpiled in ships and shore based storage facilities, somehow the price continues to recover – approaching half of the record highs of last July.
Indeed there is nothing now in the way in terms of resistance between here and the next target in the medium term which is at $73.40, which would make the price of oil close to that suggested by the OPEC ministers at their meeting in Vienna yesterday where they intimated that a $75 a barrel would not be unacceptable.Â
It took a world-wide economic collapse to stop last year’s run on oil prices. The collapse was triggered by skyrocketing oil prices and the world’s inability to keep up with the extortion payments. With the world economy still trying to restart itself, a new run-up of oil prices will at least slow recovery – possibly causing a second collapse we may not have the capacity to recover from.Â
While America fiddles with remaking the auto-industry and busies itself bankrolling pet projects that can not cure our oil addiction, the market is preparing a second swipe at our wallets.
Leilani Münter Races Hydrogen-powered Ford Focus in Viking Rally across Norway
Earlier this month the Electric Vehicle Symposium (EVS) held the Viking Rally in Norway – an international zero-emissions rally for hydrogen cars, electric cars, and plug-in hybrids. Leilani Münter (who is an eco-racing advocate, world famous race car driver, and self-proclaimed “hippy chick”) drove a hydrogen-powered Ford Focus in the race, despite a driveshaft problem that plagued the team throughout the multi-stage race.
Henning Solberg and Leilani Münter. Photo: Hallgeir Raknerud, KNA
The rally was organized in accordance with International Sporting Regulations (ISR), The Norwegian Sports Regulations (NSR) and Regulations for the event. The rules for the rally were interesting.
Teams start with zero points and the goal is to keep your points as low as possible. Penalty points are awarded to teams if they arrive late during a maximum time stage, arrive early OR late for an ideal time stage, arrive early OR late for a regularity test. For times trials (where speed is the goal), all drivers receive penalty points for the number of seconds it takes to complete the stage.
A video of Leilani, describing her goals at the race. Many more videos from the race are available here.
“I had a great time participating in the Viking Rally,” said Leilani, “this event brought together people from all over the world, uniting us through our mutual goal of using clean renewable energy instead of fossil fuels. It was an honor to be a part of such a symbolic and hopeful event.”
Eacy days updates from the race are available at Leilani’s website, with additional information from the organizers here.
Spent Coffee Grounds to Bio-Diesel
AS more research comes in regarding new technologies for producing bio-fuels, imagining a future where we have a real choice about our transportation fuels becomes less of a day-dream and more of a reality. Â
Found at: The BioEnergySite
Researchers at the University of Nevada are looking at some less conventional materials to extract biofuels – spent coffee grounds.
In a paper published in the Journal of Agricultural and Food ChemistryNarasimharao Kondamudi, Susanta K. Mohapatra and Mano Misra Chemical and Materials Engineering, University of Nevada, describe the process to extract the oil from spent coffee grounds and then transesterify the processed oil to convert it into biodiesel.
The production of energy from renewable and waste materials is an attractive alternative to the conventional agricultural feed stocks such as corn and soybean. This paper describes an approach to extract oil from spent coffee grounds and to further transesterify the processed oil to convert it into biodiesel. This process yields 10?15% oil depending on the coffee species (Arabica or Robusta). The biodiesel derived from the coffee grounds (100% conversion of oil to biodiesel) was found to be stable for more than 1 month under ambient conditions. It is projected that 340 million gallons of biodiesel can be produced from the waste coffee grounds around the world. The coffee grounds after oil extraction are ideal materials for garden fertilizer, feedstock for ethanol, and as fuel pellets.
Gives new meaning to ordering “high test” at the restaurant.
A “Hockeystick Graph” with a Hook
Looks like the oil price has hit bottom, and is starting it’s steady march back up. This week futures settled firmly over $60/bbl. More worrisom than the price this week is the rate of the new rise over the last few weeks. Take a look at this updated chart I found at Wikipedia (click to visit):
In fiscal year ‘08 – from the Fall of 2007 to the Fall of 2008 – American consumers, governments, and businesses paid nearly $1-trillion dollars for imported petroleum to make fuels like gasoline and diesel. One trillion dollars - per year.
If you do the math, this comes out to an average cost to every living American citizen of ~$3200/yr. To the average “family of four” we’re talking a hit of ~$13,000.  If your family was very average and household income was $42,000 – last year you paid approximately 30% of your income for oil. (It’s much worse for people who drive as much, but earn less.)
Last summer oil prices had doubled for no real apparent reason, and a trillion dollars left the American economy directly at the “grass-roots level”. People stopped paying their mortgages or spending new money.Â
If any of the economic recovery plans actually do work, and our economy sputters back to life, expect oil prices to continue to “recover” as well.Â
Keep an eye on that little hook -Â Â the start of a “double hockey-stick”?
Fuelishness! Feed: Oil firms above $60; Venezuela builds oil rig with China; The end of the gas guzzler; Will transform US auto fleet; Safety could suffer
- Oil firms above $60 – Oil prices have been on an upward trend since mid-April on equity-led rallies. They have recovered from below $33 in December after a plunge from record highs above $147 in July.
 - Venezuela set to build first oil rig with China – China buys 300,000 barrels of Venezuelan crude every day, and is eager for more from the Latin American country as part of its global quest for a diverse range of energy supplies.
 - The end of the great American gas guzzler – President Barack Obama will unveil new fuel efficiency standards today in an effort to limit the release of greenhouse gases by cars and trucks.Â
 - Obama’s new rules will transform US auto fleet – The new rules would bring new cars and trucks sold in the United States to an average of 35.5 miles per gallon, about 10 mpg more than today’s standards. Passenger cars will be required to get 39 mpg, light trucks 30 mpg.
 - Safety could suffer if we boost mileage by making cars smaller - The National Academy of Sciences, Insurance Institute for Highway Safety, Congressional Budget Office and National Highway Traffic Safety Administration have separately concluded in multiple studies dating back about 20 years that fuel-economy standards force automakers to build more small cars, which has led to thousands more deaths in crashes annually.Â
Jetta TDI Meets Prius [Video]
This is funny new commercial.
Popular Mechanics wrote:
The new era of clean diesel in America will officially be ushered in by the new VW Jetta TDi when it goes on sale in a few months. Powered by a 2.0-liter four-banger that produces 140 hp and 236 lb.-ft. of torque, it will be the first automobile to meet the world’s most stringent emission control standards, California’s Tier II, Bin 5.
I enjoyed driving a brand new diesel Seat around the beautiful country of Estonia in 2006. My Estonian cousin who’s car I was driving smiled as he pointed to a local blooming soy-bean farm and told me we are driving on sunshine. He fills his car with bio-diesel. He wondered why I didn’t do the same thing.
Clean diesels are a blast to drive. Like most diesels they have gobs of low-end torque that plants you in your seat, and since you can upshift as low as 1200 rpm you can take mechanical advantage of all that torque with quick up-shifts instead of revving out your fuel pump.
It’s not an answer to our oil addiction, and road taxes on diesel is pretty steep (meaning diesel is often more expensive than gasoline), it does offer you a way to get more mpg and enjoy the music of a finely tuned machine.
Let’s get real about alternative energy
Let’s get real about alternative energy
By David MacKay
CNN.com, 5/13/2009
We need to introduce simple arithmetic into our discussions of energy. We need to understand how much energy our chosen lifestyles consume. We need to decide where we want that energy to come from, and we need to get on with building energy systems of sufficient size to match our desired consumption. Our failure to talk straight about the numbers is allowing people to persist in wishful thinking. Assuming we are serious about getting off fossil fuels, the scale of building required should not be underestimated. Small actions alone will not deliver a solution. The author goes on to break down the numbers associated with American and European energy usage, along with the numbers associated with energy production from renewables. Focusing attention on the numbers may make it possible to develop honest and constructive conversations about energy. It’s not going to be easy to make an energy plan that adds up, but it is possible. We need to get building.
David MacKay is a professor of physics at the University of Cambridge. He is the author of the book “Sustainable Energy – Without the Hot Air.”
Link to full text in primary source.
Fuelishness Feed: FastSkinz Fail; The NEW Pumped-Up Prius; 10,561 MPG Econo-Coffin; Tata’s Start-Stop – Sound Familiar?
- Popular Mechanics Tests FastSkinz Car Wrap: Essentially, in our test, we found no real fuel-economy improvement from the Fastskinz MPG-Plus wrap. And if you trust Ford’s MPG displays, the Fastskinz Flex actually delivered slightly worse fuel economy on our loop. So two identical vehicles, on an identical route at identical speeds, with the same drivers, on the same day, returned nearly the same fuel economy. Where did MPG-Plus go wrong?
 - The New Toyota Prius Has 22% More Power: At the same time overall fuel economy has been improved by 10 per cent, new Prius returning 72.4mpg in combined cycle driving. The adoption of a larger, 1.8-litre engine reduces the rpm during high-speed driving to give a 10 per cent gain in long-haul cruising fuel efficiency. And with more torque produced at lower engine speeds, new Prius offers more relaxed cruising performance, too.
 - 10,561 Miles Per Gallon: But there are a few drawbacks. You would have to drive lying on your back in a space no bigger than a coffin.
 - Tata Motors — Stop-Start Technology good for 6-10% Better Fuel Efficiency: Market sources indicate that now Tata Motors has the technology it can be extended to its other range of products like passenger vehicles and trucks . In a ‘stop-start’ technology, the vehicle’s ECU (electronically controlled unit) is so programmed that after 10 seconds of it recognising that the engine is on but idle, it automatically switches off the engine.Â
MJKRacing.com & FuelClinic.com Camaro Take 3rd Place at SCCA National at Daytona International Speedway
Congratulations to Mike Kern and MJKRacing.com with the FuelClinic.com Camaro Take 3rd Place at SCCA National at Daytona International Speedway.
After a late start which put Mike 2/3 lap behind and dead last on the field, he overtakes 24 other drivers to finish 5th overall and 3rd in his class.
FuelClinic.com is a website that helps people save gas money, cut emissions, and reduce oil dependence by practicing efficient driving habits. It’s free, and available at http://www.fuelclinic.com now and works in any vehicle.
MJKRacing.com is a race team that understands the “green” future of racing and is determined to be in the lead. MJKRacing has partnered with FuelClinic.com to help the race fans who enjoy fast cars on the track learn how to drive daily in ways that can save them money and reduce pollution.
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