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By Robert Rapier on Jul 2, 2007 with no responses

Expropriating Venezuela’s Refineries

You heard it here first. Two months ago, I wrote Let’s Confiscate Venezuela’s U.S. Refineries. Looks like I may not have been too far off the mark, as others have started thinking along the same lines: Citgo assets may be at risk in arbitration: Experts say ConocoPhillips, Exxon Mobil could seek Venezuela’s refineries in U.S. Maybe those “experts” have been reading my blog. Here are some excerpts: ConocoPhillips and Exxon Mobil Corp. could hold a powerful card to make Venezuelan President Hugo Chavez bet his country’s sizable American assets in the high-stakes nationalization of the Venezuelan oil industry, experts say. The Citgo subsidiary of Venezuela’s national oil company has five refineries in the U.S. experts say could be targeted for… Continue»

By Robert Rapier on Jul 1, 2007 with no responses

What a Return Trip to Scotland

Off topic, but on June 30th my family and I flew from Dallas back to the U.K. We had a connecting flight at Gatwick in London, and then we were to fly on to Aberdeen. I talked to my in-laws just as I was about to get on the plane in Dallas, and they acted like they wanted to say something. What I didn’t know is that just before we got on the plane, terrorists had apparently tried to blow up the Glasgow International Airport in Scotland. My in-laws had seen that scroll across the screen on CNN just as we were about to climb on a plane for Scotland. On the way over, we didn’t know anything had happened…. Continue»

By Robert Rapier on Jun 29, 2007 with no responses

America’s Energy IQ

I already knew that the general population has a poor understanding of energy issues. For that matter, politicians have a poor understanding as well, which is why we find ourselves burdened with irresponsible energy policies. The API has validated my impressions with a survey that they had commissioned by HarrisInteractive. To such questions as “Who supplies the U.S. with the most imported oil?”, respondents floundered. They grossly overestimated the size of publicly traded oil companies like ExxonMobil in relation to national oil companies like Saudi Aramco. And they grossly overestimated the potential for biofuels to displace fossil fuel usage. In fairness, some of the questions were quite difficult, such as “How many years does Oil and Gas Journal think our… Continue»

By Robert Rapier on Jun 28, 2007 with no responses

Energy Policy Insanity

Just enough quiet time this morning (still suffering jet lag and waking up at 4 a.m.) to knock out an essay. I told my daughter last night that I plan to keep writing, but I don’t plan to do it on their time. I will do it early in the morning, at lunch, or when the rest of the family is occupied with something. But I like writing too much to stop. I read an article yesterday in The Detroit News: Energy bill may gouge consumers The article was written by Mark J. Perry, an economics and finance professor at the University of Michigan, and discusses the pending energy legislation. There was been so much to write about on this… Continue»

By Robert Rapier on Jun 17, 2007 with no responses

Coal and Ethanol

A Lightbulb Uses a Lot of Coal Just a very quick post today while still on vacation in the U.S. I was browsing around the other day, and I ran across this: How much coal is required to run a 100-watt light bulb 24 hours a day for a year? You can pop over there for the details, but I was shocked at the result: 714 pounds of coal, 5 pounds of sulfur dioxide, 5.1 pounds of NOx, and 1852 pounds of CO2 – for 1 light bulb. That just blows my mind. Sometimes I will leave my computer on overnight, rationalizing the decision by thinking “It only uses about as much electricity as a light bulb.” I have to… Continue»

By Robert Rapier on Jun 12, 2007 with no responses

What’s On Tap

Update Four essays, plus this one, finished off today: The Problem With Biobutanol This Week in Petroleum 6-13-07 Letter to CNN on Inaccuracies in “We Were Warned” The Problem with CAFE With that, I am on hiatus. I may come back and update TWIP on Thursday. Cheers, Robert Taking a Break I received a welcome surprise yesterday, and found out that I get to fly home this Friday to see my family. I have been away from them for 5 months (so the kids could finish out school) but on Friday I go home to retrieve them for their move to Scotland. Thus ends the most difficult 5-month period of my life. At that time, two things will happen. First,… Continue»

By Robert Rapier on with no responses

The Problem With Biobutanol

The Essay I Didn’t Want to Finish This is an essay that I have been promising for some time. I have had to start it from scratch a couple of times, and I am starting it from scratch again now. I tend to get a lot of e-mail about biobutanol, especially after people read the essay that I wrote on the subject last year: Biobutanol While I wrote about the potential for biobutanol in that essay, I also noted: I need to spend some time going over the patents and linked reports more closely to see if anything suggests a problem that has been glossed over. When I first started this essay, I was going to review the literature and… Continue»

By Robert Rapier on with no responses

This Week in Petroleum 6-13-07

Update: Very brief update. First, I just came back from the hospital, where they extracted a small boulder from my kidney. With that, I put this horrible episode behind me. On the inventory report, I don’t think this bodes well. I had seen some predictions just before the report was released that the gasoline build was expected to be 4 million barrels. The reported build was zero, which is consistent with what I wrote last week about inventory builds slowing in June before falling in July and August. But refinery utilization and imports both fell a bit. If those trends don’t reverse, the recent price drop will change direction in short order. And now, I really am on hiatus. ——————-… Continue»

By Robert Rapier on with 1 response

Letter to CNN on Inaccuracies

Dear CNN, Over the weekend, I watched your special report We Were Warned: Out of Gas. I had previously seen the original version, “Out of Oil”, and wrote to CNN at that time pointing out a number of inaccuracies in the report. (It appears that the transcript still reflects the earlier version). Those inaccuracies remain in the newer version, so again I feel compelled to point them out. While I think the overall message of the report is essential, you give critics ammunition by not having all of your facts in order. So let’s look at some points. First, we have Frank Sesno stating “Ethanol now accounts for nearly 40 percent of Brazil’s transportation fuel.” This is inaccurate. Diesel accounts… Continue»

By Robert Rapier on with no responses

The Problem with CAFE

As I have been reading reports of the current debate over the pending energy legislation, it occurred to me that there is a fundamental problem with the approach to CAFE standards. The Washington Post reported on the issue in today’s edition: Senate, House Turn Focus to Energy Bills Senate Majority Leader Harry M. Reid (D-Nev.) said after a speech to the Center for American Progress yesterday that the increase in auto-fuel efficiency requirements, known as the corporate average fuel efficiency (CAFE) standards, would be the most controversial part of the Senate package. It orders auto companies to hit a 35-mile-per-gallon target by 2020 and improve mileage 4 percent a year after that. “I know that the auto industry is still… Continue»