Lowering gas prices: Coal-to-liquid fuel for the Strategic Petroleum Reserve
The Senate Committee on Energy and Natural Resources heard testimony today about high gas prices. This is the third year in a row gas prices have spiked ahead of the summer driving season.
We are however, reaching new highs with an all-time average national price of $3.10. We have a little way to go to reach the (oil crisis, inflation adjusted) high over two decades ago of $3.22. The usually culprits of foreign political instability, domestic refinery problems, rising demand and tight fuel inventories have all contributed to rising prices, analysts said...
Ongoing contributions to the Strategic Petroleum Reserve actually adds to the demand and raises the price for consumers in a system with tight supply/demand margins. While the function of doing this is supposed to provide us security in the event of a disruption, in essence, the government is acting to boost the price of gas every time they stretch the supply by adding to the reserve.
Coal-to-liquid fuel technology is an interesting alternative. This fuel can be added to many fuels without modification of engines and can be made of coal, a domestic resource not tied to gasoline. That fuel could be added to the reserve and lower the tight demand on the oil infrastructure.
KenBob · May 16, 2007 12:59 AM
Coal may not be tied to oil, but I think we'd be much better off if we weaned ourselves off the carbon energy teat and practiced a little self-restraint and common sense. Coal doesn't exactly have a stellar record as far as the environment is concerned. I'd hate to see the tops of mountains lopped off so some dude can fill up his luxury SUV on the cheap. Conservation will always get my vote.
paul kuehnel · May 16, 2007 8:21 PM
We need a cultural revolution as much as an energy evolution.
At some point along the way we took the idea of conserving out of the concept of conservative.
Consumption symbolizes success. More! makes good business.
The only thing that seems to promote conservation in the current energy/cultural model is financial hardship via high energy prices so maybe driving prices up by hiding oil in the reserve indirectly promotes conservation.
KenBob · May 17, 2007 11:03 AM
You're right, Paul. We definitely have a culture that says "Bigger is Better!" Big SUVs, Big mansions, and Big portions lead to Big problems, Big headaches, and Big waistlines. Smaller can often be smarter. I do believe it's going to take smaller wallets before most Americans will get it.