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Old 02-28-2007, 02:57 PM
Felix_Nietzsche Felix_Nietzsche is offline
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Join Date: Sep 2004
Location: The Lone Star State
Posts: 3,593
Default Oil

Short Answer: We will NEVER-NEVER-EVER run out of oil.
We may run out of CHEAP oil but as long as their is a demand for oil, there will ALWAYS be oil.

1st: You can take coal and add hydrogen to make oil. This technology was developed by Germany during WW2 and SASOL of South Africa uses this method to make oil.
http://en.wikipedia.org/wiki/Sasol

2nd You can make oil from oil shale.
http://en.wikipedia.org/wiki/Oil_shale

There are two main barriers from more widespread use of using coal and oil shale to meet our energy needs.
1. Mideast oil is cheaper.
2. The high capital cost of building a coal-to-oil plant.

I've seen claims that you can profitably build a coal-to-oil plant if oil stays above $40 a barrel. The risk is if you build a coal-to-oil plant and the price falls to below $40, then the company that builds the plant risks bankrupcy... In South Dakota they built a coal-to-methane plant and they are making money hand-over-fist. And the USA has plenty of coal and oil shale....

The OPEC cartel has to be very careful to keep the price of oil from going too high otherwise they risk competition from companies like SASOL. If the price of oil gets too high, entrepreneuers with deep pockets can make some nice bank by building a coal-to-oil plant.
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