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Strategies & Market Trends : The Epic American Credit and Bond Bubble Laboratory -- Ignore unavailable to you. Want to Upgrade?

To: ild who wrote (8335)	2/20/2004 8:33:40 AM
From: mishedlo	Read Replies (2) \| Respond to of 110194

Can someone get this to Heinz for comment? From Bankingintern on the FOOL in response to Huberts Peak: The guy has an ax to grind, and if he is into the campbell/hubert stuff finding the truth will be like nailing jello to the wall. Needless to say the bitumen production from oil sands does use energy to make steam, there are many many ways to make steam: coal, natural gas, oil, bitumen, nuclear, solar... Some of the facilities which produce bitumen use bitumen as their fuel source. Bitumen is a not so great fuel source before it is refined, so you put in oil sands into a plant and produce bitumen and THEN take part of that product and burn it to keep the whole process running. Some of these facilities burn more bitumen than comes out the plants tailgate in the production process; the ratio is 1 to 1.2. So from a ton of oil sands the plant produces 2.2 units of bitumen internally in the process, GREAT more oil! However, then it burns 1.2 of those to run the process. The whole "net energy loss" thing is a silly argument, because it is based on saying LOOK to make that 1 you needed 1.2! Ah HA this process is a net energy loser! Those who quote it have no clue about how the oil sand process works. The bottom line is, you put sand in one end and get bitumen (oil) out the other, and who cares how much your burning inside because the plant produces oil out of sand all by itself with no additional energy. Mishedlo Comments follow: We discussed this at great length on my board and people are producing oil from tar sands right now at $18-$22 per barrel. There is plenty of the stuff. What is holding it back is fear of lower oil prices. Who wants to spend a lot of time and money if oil is goung to fall back to $22 per barrel? What we need is mammoth scaleout of this and a Tarrif on ME oil to bring prices up to say $28 per barrel. Yes they will stay at that price but we will be in control not Opec and at prices well below where we are now. =========================================== Can you get this to heinz?