3 posts tagged “opec”

This is from the Historian’s Vox blog: oil consumption has been dropping since 2004.

   By the typeface, I would guess this is from The Economist.
   So if oil consumption is going down, and the law of supply and demand holds, why are prices at an all-time high? The Historian gives some decent horse sense on this—and it should remind us that the oil companies have a vested interest (and the MSM are too dumb) to keep the panic going.
   According to this graph, which I haven’t looked further into: global demand on oil is decreasing. The US dollar is weak, so prices are high relative to that dollar—but high oil prices should have less of an effect on other countries who are converting their own currencies to US dollars to purchase crude. Let’s also not forget that OPEC is a cartel that sets its own prices, and the oil companies are setting their own prices, too, raking in multi-billion-dollar profits per annum.
   He also points out there is speculation—which means the bubble will burst at some stage.

Further to an earlier post: so how did the New Zealand Government get us folks, happily driving around in natural gas cars with a huge natural-gas network of stations nationally, back into petrol (or gasoline to our American readers) in 1996? Well, there was this ad:

If you’re going to drive a gas guzzler, shouldn’t the birds and the trees know? Sure, you can use LPG and CNG. But they don’t even smell strong. Let ’em feel the power of petrol—good, healthy petrol that really say you’ve arrived. Let your V8 make your winters warmer. There might not be many tigers left out there, but you can stick them in your tank. Petrol. In 91 and 96 octane.

   OK, so there wasn’t that ad. It was pretty easy though: the National Government had been raising the tax on natural gas for a few years. When that didn’t sway New Zealanders from using domestically made natural gas and not depleting our foreign exchange reserves, they plain turned off the tap.
   In 1996, it was announced to all the gas stations that there would be no more CNG. LPG would continue, but the stations—all with the warm, fuzzy names of Shell, BP, Mobil and Caltex (part-owned by Texaco, which forms the Tex in the name)—were somehow hazy about its availability. Panic ensued. We got rid of our gas-powered Ford Sierra. (You could switch between CNG and petrol. Most converted cars since the late 1970s were dual-fuel, since the hybrid term had not been coined for cars then. Can someone please tell me or any New Zealander why the Toyota Prius is novel?)
   As it turned out, there were still plenty of LPG stations around, but by then we were driving around and letting the birds and the trees know.
   These days, you tend to see cab drivers use LPG but preciously few other people. This is a far cry from the 1980s and early 1990s, when natural gas-powered cars were normal. All of a sudden, the Labour Government thinks E10 is revolutionary. E10, in this country, is not revolutionary.
   Since 1996, we now happily pay 50 per cent more for petrol, polluting our environment and using US dollars to do so. Go, petrol! Yay, OPEC, New Zealand politicians love you!

Low res NZ PM with RM Gull E10

Some Americans already think that PM Helen Clark is Ms Photo Op, without the substance. That was the first thing that came to mind when this pic came through from the Ford Motor Company today.
   Considering that New Zealand had natural gas-powered cars when I was a youngster in 1980 (until the National government thought they might be bad for us in the mid-1990s and really pushed us toward good, healthy and cheap petrol) and Todd Park was experimenting with a methanol-powered Mitsubishi in 1983, you can see why I am not terribly impressed with news that we have this revolutionary, new biofuel pump serving E10.
   Little compares with our having a 20-plus-year lead on the rest of the world with LPG and CNG, something this country fails to acknowledge time and time again. Probably to cover up its own inadequacies and lack of vision.
   E10, phooey. Sure it’s a step in the right direction, but such a little step compared to the advances we were making against OPEC in the late 1970s. We should be crying about how our lead and knowledge have been flushed down the toilet, and how no one other than regular citizens gives a toss.