Is a PPT-like or currency-type intervention a feasible option for oil?

Discussion in 'Trading' started by gangof4, May 8, 2008.

  1. #21     May 9, 2008
  2. gangof4

    gangof4

    read your link- don't agree with you on all things, as our politics are different. for instance, i believe in the need for a strong military. strong military is actually a deterrent to conflict. of course, when your enemy is lunatic religious fanatics with brainwashed surfs to do their bidding, it's the technology/intelligence side that needs to be strong- something which is not the case (this is coming from a military intelligence officer, btw).

    politics aside, i think your time frames (like for nuclear) are unrealistic. i do believe that the govt needs to subsidize the right efforts to speed the timeline. need to have incentives for private industry and get politicians, local environmental impact studies and the liek the fuck out of the way. example:

    look at the way the earthquake damage to freeways was handled in the LA earthquake a few years back vs the way it's been handled in teh bay area quake of 1989 (hint: the bay bridge is just now getting built- 19 years, billions over budget, and after about 1,000,000 environmental impact studies). comparing the 2 is a great case study in how not to do things vs how to get things done.
     
    #22     May 9, 2008
  3. You are right. Something needs to fundamentally change in the way we deal with things. It doesn't need to take 19 years to finish a project - it is just revelatory of the degree of priority it is.

    Take a look at this:
    http://www.theoildrum.com/node/3915

    Not very different from my ideas,

    and this.


    We have yet to design the Model T of nuclear power plants.
    Bill Hannahan
    Each new technology has a life cycle. It starts with an idea, then a prototype. If the technology involves high energy and/or hazardous materials, the prototype is often the most dangerous example, but there is only one prototype, so its risk to society is low. Risk to the public is greatest when the immature technology is first deployed in large numbers.

    We have frozen nuclear power technology at its most dangerous stage of evolution for 30 years, yet it safely generates about 20% of our electricity in the U.S., 80% in France. Next generation plants will have fewer parts and passive safety systems, including the ability to contain a full meltdown.

    General Electric ESBWR
    Nuclear News on the ESBWR (.pdf)

    Westinghouse AP1000

    Areva EPR (.pdf)

    Today we should be designing fourth generation nuclear plants, building third generation plants, living off the energy of second generation plants and converting our first generation plants into museums. In fact, no two nuclear power plants are exactly alike. We have yet to build the Model T of nuclear power plants.

    Imagine that Boeing built airplanes in a swamp, outdoors, far away from any attractive place to live, using minimal tooling and equipment. Workers and equipment would be exposed to rain snow dust heat and insects. Very high salaries would be required to attract workers away from their families to work in harsh conditions. Productivity and quality would be low. The airplanes would be more expensive, less clean, less safe and less reliable than modern factory built planes. That is the way our first generation nuclear plants were built.

    We should build facilities to mass produce floating nuclear power plants. They would consist of a canal 600 feet wide and a mile long, enclosed inside a building equipped with high quality lighting, heat, air conditioning, fire protection, communication systems, cranes and tooling, that provide a comfortable safe efficient work environment.

    The process begins with a dry dock where a massive steel reinforced concrete barge is constructed. It is floated down the canal for installation of modular equipment. Employees will have safe, permanent, high paying jobs in an attractive coastal location. The application of assembly line techniques will dramatically reduce man-hours, construction time and cost, while improving safety and quality. The completed plants will be towed to coastal or offshore sites, prepared in parallel with plant construction.

    The biggest single element in the cost of conventional nuclear plants is the interest on the loan to build the plant, about 1/3 of the total cost, due to the long construction time. Floating plants will be produced initially at the rate of two per year ramping up to about six per year, eliminating most of the interest expense.

    A facility to mass produce floating nuclear power plants was actually built, for details see here.

    We can make clean safe inexpensive energy available all over the world, have the high paying jobs and control the technology. We can design the plants to be highly resistant to acts of terror and the diversion of nuclear material, insist that plants be subject to international inspection as a condition of sale or lease and sell or lease these plants at a cost that is much lower than traditional construction methods, eliminating the fig leaf of energy production to hide a nuclear weapons program.

    Cost

    Reducing U.S. emissions now is of minor importance. If we eliminate all of our greenhouse emissions tomorrow, the developing world would gobble up the savings in a relatively short period of time.

    The most important goal for the U.S. should be to accelerate the use of our technical capacity to develop energy technology that is less expensive than fossil fuel and can be implemented quickly all over the world. People will make the switch quickly and voluntarily, not kicking and screaming.

    This is why the U.S. should increase R&D spending for non-fossil energy sources from $3.00 per person per year to $300.00 per person per year, $90 billion per year.


    The money could be raised simply by adding 2.25 cents to the cost of each kWh.
    We should be pushing every technology as hard as possible and building demo plants of each as it becomes possible.

    What are the odds that a submarine reactor on steroids is the best way to produce massive amounts of commercial nuclear power? There are dozens of ways to split uranium and thorium atoms, here are a few examples.

    2.25 cents per kWh would raise $18 billion each year from our existing nuclear power plants, more than enough to build at least one demonstration facility to mass produce floating nuclear power plants and several prototype reactors using advanced technology. That leaves $72 billion per year for non nuclear energy R&D.

    Mandating the widespread use of expensive energy systems has resulted in the highest electricity prices in the world, Denmark, 41 cents per kWh, Germany, 30 cents per kWh (Electricity prices for EU households and industrial (.pdf)) yet they still get most of their electricity from fossil fuel.

    We pay 9.5 cents per kWh in the U.S... A year’s supply of electricity costs the average American $1,260. Mandating expensive energy systems could easily double that figure. Technology mandates are far more expensive than the cost of developing better technology.

    Letting a bunch of gray haired law school graduates in Washington DC try to cherry pick energy technology is a formula for disaster.

    France is 80% nuclear, most of the rest is hydro, and they pay 19 cents per kWh. France runs its nuclear power industry like the U.S. runs the post office, and they are building windmills now to show more renewable energy, so their cost will likely rise in coming years.

    Our nuclear power plants have been paid off for a long time and they help keep prices down. The operation and maintenance cost for U.S. nuclear plants in 2006 was 2.0 cents per kWh (link) including the fuel assembly cost of 0.5 cents per kWh, of which the uranium cost was 0.19 cents per kWh.

    Expensive energy systems will not solve the world’s energy problem because most people cannot afford them.

    If we spend 2.25 cents per kWh on R&D for a decade or so we can solve the energy problem and save over $1,000 per person per year for centuries. Accelerating the development of low cost, clean, safe energy systems is the greatest and cheapest gift we can provide to future generations.

    For more details go to: Bill Hannahan's essay on energy.
    Download the PDF and spreadsheet (mid page).

    http://europe.theoildrum.com/node/3795
     
    #23     May 9, 2008
  4. Brazil got the message back in the 70's during the ARAB OIL embargo and said NEVER AGAIN!!!

    As a result, they now have energy independence from foreign oil and don't import a drop from the Middle East. In fact, they once relied on "outsiders" to supply 80% of its crude. Now, the country is virtually self-sufficient.

    http://seattletimes.nwsource.com/html/nationworld/2002339093_brazilfuel17.html

    It just takes some very strong public policy and a commitment that transcends the usual 4-year election cycle here in the U.S.

    By the way, this is an excellent thread.
    Quite a change from the majority of drivel that typically gets posted on ET.

    Kudos to all!
    :cool:
     
    #24     May 9, 2008
  5. at the expense of the rain forests? I think France sets the best example.
     
    #25     May 9, 2008
  6. gangof4

    gangof4

    yes, Brazil is the model and i think i can get scriabinop23 to agree. Brazil found a solution that was doable for them. they had access to lemons and made lemonade with a lot of brave political will that must have had some brutal detractors when oil was at $10/barrel just a few short years ago.

    in our case, we can use the Brazil model. to the morons in DC, that would seem like i'm advocating ethanol. of course, i have rudimentary common sense and realize corn based ethanol from US farmland is a farce. no, using the Brazil model, we would do what they did- work with what we have. we have a lot- we have nuclear,we have offshore drilling, we have solar, wind, etc. we have the ability to utilize our technological know-how and accelerate it in a Manhattan Project approach to battery technology while doing the same with solar. we have vast natural gas reserves in this country that can be used for transportation as we bring nuclear and other power generation online.

    bottom line: we have all kinds of options and all should be pursued- aggressively. the most viable will rise to the top- some we already know meet all requirements (nuclear), we're just missing political will. maybe we need to outsource our government energy decisions to Brazil! given our resources and options, they wouldn't come up with ethanol for the US, they'd come up with what we're discussing in this thread.
     
    #26     May 9, 2008
  7. gangof4

    gangof4

    scriabinop23:

    the article on nuclear is spot on. it's amazing that the brain dead anti nuclear people (the same ones who are anti-offshore drilling and anti anything that they can attach a scary slogan to that will manipulate the masses) is that their efforts to kill the nuclear industry left us with aging plants that are far from the safest. let's not forget though that you can't hug a child with nuclear arms (or power plants)!

    yeah, nuclear plants should be done like military contracts (not the process, just the result)- best design/cost combo wins and then mass produce.
     
    #27     May 9, 2008
  8. Totally agreed. And I do agree Brazil's execution of 'problem solving' is commendable in that they were able to achieve energy autonomy. I point to France as 'better' merely because I am so much more a lover of nuclear and hydro technologies.

    And agreed about our latent potential. Its not too late to actually solve this problem ... I'm optimistic something good will happen. As an impatient type, I just wish it would be sooner than later.

    All great points though.
     
    #28     May 9, 2008
  9. Great thread.
     
    #29     May 9, 2008
  10. Not only that, but with methods of vitrification (glassification of nuke waste) and reharvesting spent fuel, the waste can be neutralized for safe storage (just dig a hole in Yucca) and be recycled back into fuel to solve all of the waste 'cons' of nuclear. The half life on this stuff is less than your average diaper. (ok, thats a bit of an embellishment)

    I'm not big on ANWR drilling not only for my love of owls and wolverines (or whatever lives there), but because I am just so pro-nuclear ... why waste our time with a little extra marginal oil supply when it changes nothing and the status quo remains? Unless it is entirely a supply conspiracy driven by every major in the business (look at XOM's lack of investment in new properties), the lack of successful drilling activity smells of peak and declining oil ... pointing to the only rational way of dealing with it: get away from fossil fuels, or at least the liquids.

    There's a lot of potential for nat gas, but field decline rates are so rapid, i think nuclear+battery is just so much better ...
     
    #30     May 9, 2008