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Old April 21st 06, 07:41 PM posted to rec.aviation.owning
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Default Avgas Where is the ceiling?


"Dylan Smith" wrote in message
...
On 2006-04-21, ktbr wrote:
Eventually you will see more of this type of processing waste
into energy. But you must realize that it would take a massive
contruction effort to build enough of these plants to make even
a small dent in the total oil needs of the United States.


What would likely happen is market forces would cause a migration rather
than a big conscious effort to build these things. Additionally, the
economics of things like thermal depolymerisation are different - it's
not so much as the traditional having a huge oil well, going to a huge
refinery. The best infrastructure would probably to have the plants
on-site where the waste is already. Such as the one right next to the
Butterball factory.

But, say, $100/barrel oil will ensure that companies go prospecting for
more oil. Suddenly, oil sources that weren't economical become
economical - as do alternate fuels - when oil isn't as cheap as it is
today (and for what you can get out of oil, it's still cheap stuff at
$70 a barrel).

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This is very true and not just for NEW oil. South Arkansas has MANY oil
wells that get shut off when the price falls below about $45/barrel and they
don't get restarted until the price goes above $55.

The bad part is a lot of those wells can't restart affordably when the price
goes up and the oil is affectively lost forever.