EXPLODING ANOTHER MYTH
Gas prices where I live last November, ……. and then …….
With some knowledge on the subject the current ridiculous fiasco at the petrol pump needs a little understanding for the layman. We “the populace” are fed yet another pack of lies, are soft talked on
how it is a global problem, ….. disruption caused by mini wars……..and how we will be self sufficient
and not dependant of middle east oil. Honestly what a load of CRAP !!
Weak government, lack of global knowledge and understanding are perhaps the greatest failures
here and allowing investors and money markets to run riot without holding them in check are making
matters worse for everyone. I have watched our current leader having the audacity to say that despite
the rise in oil prices the average family should be able to cope with the costs thanks to the tax savings
given by his party?????
Where we are today……
Let’s be VERY clear here, there is NO OIL SHORTAGE, thats right NONE !
Back in the 80’s when I was flying around the UK and European coastlines there was NO Oil
shortage, the UK was enjoying all the North Sea harvests from off shore drilling and all our refineries
were FULL. Tankers from the world’s oilfields sat at anchor just outside the 3 mile limit and with their minimum crews waited out the FIVE years at anchor rusting away until they could come into port to
offload their cargo.
Riding out the 5 years at anchor
Each one carries more than the daily total output from Libya
These “Supertankers” were built in Taiwan and were lifed at 10 fully laden trips before scrap and if we
cast our minds back to that era there were several so called “accidents” as these vessels neared the
end of their 10 trip package. Do we remember Torrey Canyon, Amoco Cadiz, the Exon Valdez and
many others ? Maybe the insurance companies at Lloyds do as the Lutine Bell kept sounding.
When I was in Saudi after the first Gulf War gas prices were so low that I could fill up the Range Rover
for peanuts as the price was about 10c a gallon. While I was in Saudi the main oil pipeline to
Dammam, their major oil terminal, was running at 1/2 volume as their own refineries were full and
there was nowhere to pump it. Did we all forget that Saudi Arabia financed the WHOLE of Gulf War l ?
They did this by turning the valve to 5/8 and this paid for everything.
All the post war rearmaments were negotiated between the Arabs and the Western Powers in Petro
Dollars which of course continue to flow except the Western World really doesn’t have anywhere for it
to go as we haven’t built any more major refineries. Also during my four years in Kingdom I met many
officials of Saudi Aramco the state oil company who told me they had discovered a major, and I mean
major, oilfield under the Empty Quarter. They were unable to develop this field as by their calculations
this deposit was bigger than ALL the rest of the World’s current oilfields put TOGETHER !! In OPEC’s wisdom the price of a barrel of crude needed to be fixed at around $30-35 such that gas prices
globally remained fixed within their own economies. If they had developped the Empty Quarter, as
they eventually will do, the price of oil would have plumetted to below $10 a barrel.
So where are we ? we have all the oil we need, there is no shortage and irresponsible reporting and govermental rumouring that prices are being driven up by the manic forces jumping in to have a war
with anyone we don’t like. Neither the US or UK has ever imported oil from Iraq or Libya since the last
time the US had a skirmish with Gadaffi back in the 80’s. The loss of Libya’s 1.3 million barrels a day
to the world market would not even be noticed as Saudi has an emergency capacity of 5M per day to
deal with world losses or disasters. So yet more lies to cover what is really going on…… and we the
sucker taxpayers fall for it again.
In my 50 years as a user of fuels I am somewhat amazed that we have made little or NO progress
with our internal combustion engine. My first cars in the 60’s ALL did over 30mpg and here we are 50
years later with advertising for our newest vehicles claiming 31 and even 33 mpg!!!…….. as though this
is a major step forward ? I rather suspect we really don’t want to develop the all electric car.
Man that things ugly!
Almost there, the Volt
…….. and what happened to the cheap alternative fuel? As we started refining for better petrol or
gasoline we ended up with a whole load of less volatile crap and had no idea what to do with it !
Eventually someone invented an engine that would burn this junk ……and he-ho the diesel is with us.
Down on power, noisey, smokey, and all the rest but what the hell we can get rid of this bi- product ,
we can use it commercially for big trucks with big engines, burn as much as we like, let the engines
run all day, and who cares if we only get 4-9 mpg as there is a ton of it and it’s cheap!!!
Not any more!!!
So with farm machinery, generators, RV’s and big trucks and rigs using all this “cheap” fuel we have
a good balance between cars and bikes and the others. Strangely the once cheap fuel bi-product is
now seriously MORE expensive and this adversely affects everything. As the USA only has a road infrastructure all goods and foods are transported by road and if we leave fuel prices to free range
with the “futures” speculators EVERYTHING will go UP in price!……… and all because of what ? ……
…Yep, a false economy that doesn’t exist!!
In the last few days some of this “futures” trading in the oil market has seen a massive drop in the
price of a barrel of crude as investors tried to offload and make huge profits in a commodity that has
yet to be drilled or pumped. Of course with pump prices where they are it will no doubt take forever
before they come back down and we are still paying for something at a grossly unfair price. The fuel
that you are pumping into your car was in all probability bought 5-7 years ago, was refined 3-5 years
ago and has been in suppliers depot tanks ever since. All paid for way back when. The instantaneous increases have been seen daily as the world “bad news” is reported, and while it “may ” have been
true had there ever been a shortage or increased cost to produce the commodity…… that is ALL in the
future and has no reflection on the stuff you are currently purchasing which has ALREADY been paid
for all the way along the line!
The fuel that was delivered by the road going tanker to your local pumps 2 weeks ago was invoiced
at a set price, yet the pump price has gone up 22 cents a gallon in that time and WHO I ask is making
ALL this profit and, why, oh why, are they allowed to ?
Time to go into town for groceries and vitals….. I might be awhile
Back to the bicycle and Shank’s pony !