GERO Enterprises

Oil, Gas And Our Future

June 10, 2009

2008 was an absolute terrible year for most. It saw oil prices soaring, oil companies recording record profits, the stock market diving, homes not selling, foreclosures, record bankruptcies, banks and many big corporations failing.

Oil and fuel prices perhaps more than anything wreak the most havoc on our economy. Consumer prices inevitably go up when oil and gas prices go up. The reason is simple. Almost every business sector and individual is affected by fuel prices. It makes no difference whether you’re a farmer, manufacturer, in the transportation industry, own an automobile or take public transportation, more than likely fuel prices are going to hit your pocket one way or the other.

Let’s start with farming. The farmer is going to need fuel to run his equipment (tractors, combines, automobiles, etc.) Then all goods farmed have to be transported (more fuel) to their final destination.

Manufacturers also need transportation. And of course the transportation industry along with individual transportation needs further necessitate fuel consumption.

As bad as 2008 was however there is good that has and will come about that terrible year. We were simply complacent with cheap fuel prices. Prior to 2008, oil prices had been very low for quite some time. We needed a reason to look for alternative sources of fuel and high fuel prices was just the right catalyst.

High fuel prices made it more practical for; ethanol, hybrids, electric cars, solar, wind generators, etc. We saw fuel created from vegetable oil, algae (who‘d a thought), hydrogen and many other and sometimes even unlikely sources. As with any new innovations, some will stay and some will go. Let’s take a look at some of the future innovative cars.

Hybrid automobile technology seemingly has a bright future.

In Japan, May of 2009 the Toyota Prius became the first hybrid to outsell the standard combustion motor automobile.

Plug in technology has potential.

All American car companies plan on offering cars with plug in technology. There are two prominent designs in plug ins. One with a back up combustible motor and one without.

Plug In, No Back Up

This will make a nice commuter car however it is simply not practical enough (yet) for the long haul. I’ve read that charging of these battery operated vehicles can be being as quick as 30 minutes but let’s face reality. If a typical family of 4 is planning a 1,000 mile trip, how many of those people are going to be willing to wait AT LEAST 30 minutes when they can fuel up within 5 minutes?

Plug In With Back Up

The plug in with back up combustible motor is practical enough for all usage. The electrical charge will cover the majority of commutes to and from work. This can virtually eliminate the necessity for gas station stops on a regular basis.

Best of all, this car is practical for the long haul too. When going on that same 1,000 mile trip, you can still get the convenience of the 5 minute fill up. This car has the potential to eliminate 90% of the fuel usage from gas stations of the average auto.

If 90% of gas stations fills are eliminated so too would our gas and oil dependency be. The other 90% would come from electricity.

Now, let’s take a look at where our electric power comes from. Sources of electricity in the U.S.

Source: http://www.eia.doe.gov/cneaf/electricity/epa/epat1p1.html

Coal 49.7%

Nuclear 19.3%

Natural Gas 18.7%

Hydroelectric Conventional 6.6%

Petroleum 3%

Other 2.7%

Did you catch that? 3% PETROLEUM! With those kind of numbers, the U.S., (and others) could say good bye to oil dependency.

Light At The End Of The Tunnel

So while fuel prices are going up yet again, higher prices will inevitably continue our pursuit for other fuel sources. As seen, other fuel sources can and will eliminate demand. Sometimes it takes a while but in the end, the laws of supply and demand will determine future pricing.

Oil and gas producers may have the upper hand now however that may not be the case in the future. Particularly if we continue to see high oil and gas prices. 

OIL, GAS AND OUR FUTURE

Significant Automotive Developments

1876- The invention of the 4-stroke internal combustion gasoline-fueled engine in 1876.

1895- The Duryea brothers started the first commercial American Car Company, Duryea Motor Wagon Company

1899- Camille Jenatzy, of France, drove a Jeantaud electric a record of sixty miles an hour on April 29. However, the high speeds burned up the batteries.

BF Goodrich made the first pneumatic tires.

The honeycomb radiator was introduced

Floor-mounted accelerator by Daimler.

The universal joint for shaft drive to spring rear axles by Renault.

1901 - Ransom E. Olds started mass producing gasoline automobiles. 425 Curved Dash Oldsmobiles were made.

1902- The first horseless carriage in Minnesota was an electric six- seater (three rows of seats) Friction style brakes applied directly to the surface of the rear tires.

The disc brake was invented by Frederick Lanchester.

1903- The Ford Motor Company was established in Detroit. They sold the Model A with a small, light-weight, 2-cylinder, 8-hp engine. Price Tag: $850.

Removable rims introduced.

Georges Bouton and Count Albert de Dion of France, developed lightweight, high speed engines. The 1903 "Polulaire" produced 8 hp at 1500 rpm. It size was 846 cm3 (52 in3) and a weighed 40 lbs (18 kg).

Bouton also designed an ignition system that is very similar to the modern contact breaker ignition.

The Mercedes Company (formerly Daimler) made a brake drum braking system.

The first automatic transmissions were made.

1905- Electric cars and trucks were great for in-city driving, but drivers had to make sure they got back to their garage before batteries died.

1906- The Stanley Steamer, nicknamed the "Flying Teapot," got up to 127.6 MPH in Ormand Beach, Florida.

The Coyote made in California produced the first V-8 motors.

1908- The Ford Model T was introduced.

GM was founded.

1913- Ford introduces the first moving assembly line.

1933- Nissan Motor Company founded.

1937- Automatic Transmissions, the Automatic Safety Transmission, (AST) was made available by General Motors.

Toyota and Volkswagon founded.

1945- Honda Motor Company founded

1967- Hyundai Motor Company founded.

1973-1974- Oil embargo creates shortages of oil in U.S.

1997- Toyota offers the first hybrid vehicle, the Prius.

2008- Oil prices peak at over $147.00 per barrel of crude.