Oil at $66 a barrel 8

[jmw]

This is an interesting article but make of it what you will.

http://news.independent.co.uk/business/comment/article305640.ece

It comes as a surprise to find that todays high oil price is demand driven not supply and that demand is from the developing countries.

It also comes as a surprise (this information seems to be concealed from us lest we get complacent, and there was an iteresting comment on "brainwashing" in universities that is probably a topic for a different site) to discover that while the USA and the Uk are amongst those blemde for "gas gussling" that in the UK oil dependence has dropped from 60% to 40% of energy needs and similar is suggested for the US economy.


JMW

http://www.ViscoAnalyser.com

 

[jmw]

http://www.usatoday.com/money/autos/2005-10-04-china-parts-usat_x.htm

Very interesting.
The high price of fuel is making companies rethink offshore strategies.
Chinas rapid growth and its sudden major bid for a significant share of the fuels availability has impacted significantly on the fuel price but appears to be coming back to bite them; though what this will mean long term is something else.

JMW

http://www.ViscoAnalyser.com

 

[GregLocock]

So, it costs $2000 to ship a 40 foot container 6000 miles, and fuel is 60% of that cost?

Really?

That's about 40 tons of cargo, and if we assume the ship uses the usual rubbish they burn (bunker fuel) that costs $400 per ton. ie, they seem to claim that it takes 3 tons of oil to move 40 tons of cargo.

The first figure I found on the web is 1000 ton miles of cargo hauled per gallon, ie about 1 ton of fuel for 40 tons of cargo and 6000 miles.

That is a factor of three discrepancy.

OK, JMW, I know you didn't write the article, but it is seriously wrong.




Cheers

Greg Locock

Please see FAQ731-376 for tips on how to make the best use of Eng-Tips.

 

[ivymike]

the article on rogue waves is a bit dated too:

http://www.esa.int/esaCP/SEMOKQL26WD_index_0.html

 

[Slugger926]

Greg,

If those #'s are right, then there would be a big market today in wind powered cargo boats. Just think of the proffits on items that are in no rush to get accross the oceans.

 

[GregLocock]

Capital cost servicing would kill that wouldn't it?

Cheers

Greg Locock

Please see FAQ731-376 for tips on how to make the best use of Eng-Tips.

 

[jmw]

Wallenius is investigating various eco friendly ship propulsion options and kites are been seriously considered.
The various "off the wall" options are receiving very serious consideration these days.
I think distillate fuels topped $1000 a tone last week though mostly they are around $500-$550. It isn't just that fuel prices are high and rising, it is the rate of climb and the fact they haven't topped out that is alarming.

However, this is a good illustration of the fact that market size and cost are the fuel of inovation. We will no more have to use up all the oil than we used up coal. I hope.

JMW

http://www.ViscoAnalyser.com