Now I try to attract more readers, commentators, and co-writers. We need to get this waggon moving. A lot of work has been done for years. I hope this will lead to something we couldn't imagine before. Taking this business process to the open is a new and bold move. The social media provides new windows of opportunities for complex issues like Biotech.
We're still struggling with how to turn great innovations like PMEU and the knowledge within the team to Biotouch projects with a solid Financing but time will tell if we're heading in the right direction.
The price of oil is now high, even though it has declined a little from $150 peak prices. But there is still a long way to go before we're down at $50 per barrel. As an evidence, take a look at Elias' email comment and we can see that one of the resasons for the high price of oil is the lack of investments in refinery capacity. Take a look at this quote "There will be no new refineries by Giuseppe Marconi - 2008/07/23" below.
Giuseppe Marconi's comment is two weeks old. Here is Elias' comment.
Hello!
Thank you for the message. I have adjoined here one comment related to the inadequasy of crude oil preventing the planning of new refineries. I think that this is rather indicative also pricewise.
I would be glad to contribute on "Biotouch" especially since I was generating the concept in the spring in some of our fruitful telephone conversations. It is essentially a way to act in a new direction in order to gain understanding on the microbes.
Tried to call Hannu today, after his message. We will be in touch hopefully on tomorrow.
With best regards,
Elias
There will be no new refineries by Giuseppe Marconi - 2008/07/23
Oil companies won't be building more refineries, because there won't be enough oil left to refine by the time new refineries could pay for themselves.
There hasn't been a new refinery built in the US since 1976. In 1982, there were 301 operable refineries in the U.S and they produced about 17.9 million barrels of oil per day. Today there are only 149 refineries, and they're producing 17.4 million barrels. This increase in efficiency is impressive but not a miracle. As with everything these outputs are carefully calculated to optimize profitability. Let me explain.
Truth be told, new refineries require tremendous financial commitments which take anywhere from 15 to 25 years to amortize. With record oil prices it would make perfect sense to invest in a few refineries today, except... for the lack of oil to be refined 20 years from now.
Trends have predicted that peak oil production, where the production of oil starts to decline, will be reached around 2007-2010. After that, there will be less and less oil to refine no matter where drillers look. In this context, building expensive new refineries does not make a lot of sense as existing ones will be sufficient to process whatever little oil is left. So forget about new refineries, except for a few in the northern midwest to process the heavy oil from Canada.
refinery tank.
Crude oil is a finite resource more and more depleted. As such, an increasing demand put on this finite supply necessitates careful management in order to stretch its lifespan and profitability.
2008/8/5 Helge V. Keitel
3 comments:
Look Giuseppe, you DO NOT know what you are talking about. First of all, I agree that we should be developing alternative forms of energy and balance that with fossil fuel use. Please just do not make inaccurate statements. There is more oil in the world than you could even imagine. The problem is getting to it. Siberia, all the oceans, the Western US, the Middle East. I spent the last threee years there working and saw "untapped" regions where it literally bubbled up from the ground. Literally. It was an estimated 5 billion barrel superfield in that one area. So do not state your opinions as facts. I have seen the data from the DOE, and various other oil companies first hand and witnessed their exploration efforts. They want to make money. They are not going to chase a red herring.
I am always entertained by the new Luddites such as Giuseppe who are so confident they know what will happen when no one really knows. He might be right if no further drilling is allowed in the US (particularly ANWAR), which is the particular hope of his ilk. As an example of this sort of foolishness, there have been some scientists who claim that everything which can be discovered has already been discovered. A more palpable delusion is hard to locate, with the possible exception of the claim that oil will run out starting in 2007.
The price of oil will worsen our economic situation in a few years.
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