National Review Goes Full RETARD
The Market Ticker ® - Commentary on The Capital Markets
Posted 2011-09-16 13:48
by Karl Denninger
in Energy
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National Review Goes Full RETARD
 

There is something particularly perverse about so-called "national news rags" that cannot be bothered with basic mathematics and physics.

I get*****ed off when I see garbage like this advocating public policy choices that are factually bankrupt and simply won't work, and occasionally I get mad enough to write about them.

Like today's example, which is National Review:

If we are ever to get $2 gas, the power of OPEC to control oil prices needs to be broken. The United States Congress could do this with a stroke of the pen, simply by passing the bipartisan Open Fuel Standard bill (H.R. 1687). This act would effectively destroy OPEC by requiring that all new cars sold in the USA be fully flex fuel, able to run equally well on gasoline, ethanol, and — most important — methanol. This latter capability is critical because methanol can be, and is, made cheaply in large quantities from coal, natural gas, or any kind of biomass without exception. The United States has only 4 billion tons of oil reserves, but we have 270 billion tons of coal, vast amounts of natural gas, and an enormous capacity to produce biomass. By requiring that all cars sold here (and thus all cars made worldwide) be compatible with methanol, the act would force oil to compete with a fuel whose sources are not controlled by the cartel, and that we and our allies possess in abundance.

Methanol has only about half the energy per gallon as gasoline, but is 105 octane, which means it can be burned more efficiently. Taken together, these two factors make methanol’s current spot price of $1.38 per gallon roughly competitive with $2 gasoline.

Abject nonsense.

First, we have to use energy density numbers in a comparable unit.  I'll pick on Watt/hours per liter, since there are several tables available from various engineering sources for fuels denoted in this unit, and since the units are consistent we can compare directly.

Gasoline has 9,700 Wh of energy.
Ethanol has 6,100 Wh of energy.
Methanol has 4,600 Wh of energy.

This means that you need 159% as much ethanol to move a car a mile than you do gasoline, and 211% as much methanol.

The current spot price for methanol is about $1.38/gallon.9/18/2011 quote  Remember, however, that this is an industrial chemical and thus (1) has no taxes included in its price and further that (2) if demand was to radically increase the price would almost-certainly go up, and probably go up a lot.

This means that on an energy-equivalent basis it would require $2.91 to move your car with methanol as far as it goes with a gallon of gasoline, right here and now, using today's demand picture for the chemical. 

The current futures price for ethanol (as of today) is $2.66, which means it would cost you $4.23 to move your car with ethanol as far as it does with gasoline, which is even more stupid.

Note that the spot RBOB price for gasoline in the futures market right now, today, is $2.79/gallon.

That is, it's cheaper to move your car using RBOB gasoline than either methanol or ethanol.

All these prices are ex-taxes, which serve to confuse people.  To compare actual costs you have to remove them from the comparison, unless of course you intend to shove the gun of the government up people's noses to get them to "choose" what you would like them to do.  That, incidentally, is where the National Review article fails - it doesn't compare against ex-tax figures for gasoline.

Finally, the National Review article claims that higher octane means the fuel is more efficient.  Nope.  All higher octane means is that it is less likely to detonate - that is, it burns slower.  (This is why a car designed for 92 octane will "ping" when fueled with 87 and older vehicles that cannot electronically adjust their ignition timing can actually be damaged.  It's also why running higher-octane fuel than your engine is designed and set up for often makes your fuel economy worse.)

Would you "break OPEC's back" by having mandatory flex-fuel vehicles?  Nope.  The price of the replacement fuels is higher - by a material amount - than it is for gasoline made from that evil imported oil.  Further, since ethanol is only 10% or so in gasoline now, and methanol has effectively zero presence in auto fuel) the fact of the matter is that this sort of mandate would do exactly nothing to change the price of gasoline, since the increase in demand that the author postulates would result from a "flex fuel" architecture would cause the price to rise due to the basic economic dynamic of supply and demand.  Nobody would buy methanol or ethanol at a higher price than gasoline, exactly as nobody in their right mind buys E-85 now, despite a large percentage of the vehicles on the road - including one of mine - being perfectly happy running on it.

I don't like OPEC any better than anyone else does, but we do nobody any good by parading bull**** hopium around as a "path to energy independence."  If we want to get serious about the latter, and we both must and can, we should be looking at using thorium as a nuclear fuel, liquid-salt reactors to obtain high temperature process heat, and then converting coal to synfuel with the primary process heat along with co-generation of electricity with the remaining BTU content from the thorium reaction.

We can replace all of the imported fuel we use for transportation without increasing our coal consumption at all over present levels.  Best of all not only do we have lots of thorium that we've "thrown away" in the ash pile of existing coal plants coal itself contains enough thorium to self-fuel the reactors on a forward-going basis as well!

That is a path that has a five hundred year expected lifetime at expected population growth rates in the United States (about 1% a year) given our proved reserves and does not require increasing existing consumption of the given resource -- including the coal -- since we're replacing the electrical generation we now do with coal at the same time we use the coal for synfuel feedstock.  As such it will not trash the existing market demand picture.  It is a technology that we know will work with the remaining engineering challenges (and there are some!) all being known quantities.  The big hurdles are political, primarily slaying the "nuke haters" -- not operational or technical.

Finally, unlike the "pie in the sky" BS run in the National Review article that path does not presume that one can obtain a free lunch - something that is never possible either in either economics or physics.

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Wis/min
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Trades50
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So our fearful leader will switch now from solar as the solution to Methanol? Guess some shell companies made out from the solar scam. Here's another chance for more of the same.

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99% of anything that makes it to the front of one of these rags and/or the MSM is total garbage. it is just rip and type pushed by some trade group or another.

Break the back of OPEC. What a hoot. You gonna convert the world to WHAT exactly?

The reason that something easy and simple and low cost hasn't replaced old dirty oil is that there isn't anything, yet.

You find the same idiocy on the left over this solar power/windmill b.s.

Wonder why nothing of substance ever gets done, nothing of substance is ever brought forward.


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Thorium Nuclear reactors + efficient electric vehicles sounds like the best way to move forward.
Jeffrey_thomason
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Quote:
So our fearful leader will switch now from solar as the solution to Methanol?


Somehow, I doubt Obama takes policy advice from National Review.


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Makes you wonder how so many idiot articles get into print? I don't believe OPEC really controls prices today. Wall Street does, at least on a short term basis. Hope they have to swallow the entire hoard. But, lower demand in the USA would rapidly be swallowed up by emerging markets and there would be no effect.

The idea of these alternate fuels depends on higher oil prices, not lower prices. Also, I think it is more likely that people are going to decide they want cheaper food than the nonsense policy of putting the corn crop in the gas tank. I also suspect that the idea of battery powered autos is off base. The most likely short trip solution over the short term is compressed natural gas, which is delivered here at home for the effective price of about $50 a barrel. They run buses and some government vehicles on this stuff, which tells me that you can get several gallons equivalent into a tank. Running a 30 MPG equivalent auto on 2 or 3 gallons equivalent of natural gas beats hell out of the idea of a ton of batteries and going around the loop of gas to electric to battery to road. I think a 100 mile range gas car could be developed very easily and a contraption to fuel it out of the home gas meter wouldn't be that difficult. People could rent autos for longer trips and save a hell of a lot of money.

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Um, perhaps I am wrong about this, but I believe that OPEC is a very large friend of the U.S. Simply put, would bucky still enjoy reserve currency status and the level of demand it has today if OPEC decided to accept an array of currencies for oil instead of its current policy of USD only. This may be slightly tin-foily, but I happen to believe that the too cozy relationship between the U.S. and SA is primarily due to OPEC's support of bucky. I don't know this for a fact, it simply fits that which I have observed.

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Bucky would enjoy its status because there isn't any thing else.

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I feel obliged to also mention that unlike either gasoline or ethanol, methanol is directly toxic at low doses and can be adsorbed through the skin.

In chemistry departments, methanol is treated with respect and ALWAYS handled with both gloves and goggles.

Per Wikipedia (accidental exposure, untreated dose):
  • 10 mL (1 mL ~= 3 drops, so roughly 30 drops) is sufficient to cause permanent blindness.
  • 60-100 mL is a fatal dose.
  • Methanol burns invisibly, like Hydrogen, making spills even more hazardous.

For those not used to the SI system, depending on the country a shot of alcohol is between 20 - 60 mL. These are not large amounts. Have you ever spilled half a shot's worth of gas on exposed skin?

You do not want to base a common system of transport around this stuff.

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Common mistake is to think that higher octane means more power. 105 octane just means it's less volatile (i.e. takes more effort to make it go boom)than 92, 87, etc.


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Higher octane means you can run higher compressions and cylinder temperatures without risk of predetonation (the charge in the cylinder firing before the spark plug tries to set it off.)

[Edit: In general, this means the engine can be tuned to produce more power with higher octane, but in practice it's the energy per unit that is the issue here.]

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Quote:
Common mistake is to think that higher octane means more power. 105 octane just means it's less volatile (i.e. takes more effort to make it go boom)than 92, 87, etc.


Octane is not delivering the horsepower - increased compression gives you the power. About 1% per every point.(ie: 8:1 to 9:1)

With 105 octane, you could probably run a 13:1 compression ratio, naturally aspirated, or a turbo engine at 2 bar.


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Sandor: And the power gain from methanol fueled engine tuned for high octane is not comparable to the power gain from a gasoline engine tuned for high octane.

Simply because gasoline has so much more power per unit. It's not a realistic comparison.

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It's justifiably immoral to deal morally with an immoral entity.
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To be pedantic the maximum efficiency of a heat engine is defined by the delta between the combustion and exhaust temperature. Increasing compression increases the available adiabatic expansion in the cylinder when the charge is fired, and thus can return a higher ratio between those two figures.

In the end, however, the amount of energy in a given unit of fuel is all there is, and current otto-cycle engines are fairly close to the maximum realistic extraction of that energy into mechanical power. There are potential paths forward to get better efficiency but "easy" (read: reasonable given the expense over the unit's life) have been had.

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"That is a path that has a five hundred year expected lifetime at expected population growth rates in the United States (about 1% a year) given our proved reserves [of thorium]."

And that's just proven reserves for something that no one is even looking for since it's nearly worthless right now because of what it's currently used for - virtually nothing.

No, not until we've spent further trillions on foreign wars, overpriced corn and other foods dependent on corn (a whole bunch) to measurably reduce my gas mileage, killed more hundreds of thousands for oil and collapsed economically will someone in a Curly Howard voice finally say, "Oh, look! Thorium!"

The Chinese are investigating thorium power intensively right now.

But the USA? A bunch of fricking idiots perpetually duped by wealthy con men with vested interests, like the industry behind the uranium-based fuel cycle that was chosen over thorium after WWII simply because its infrastructure could also produce bombs. Well, we have more Pu239 right now in storage than we'll ever need, so its time to go with thorium reactors. But, of course, we won't...
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Actually, that's proven reserves of COAL.

(See, you need the feedstock to make the synfuel with. We have a ****load more Thorium in easily-extracted deposits than we can use up in several millenia.)

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I don't care if it makes sense -- only if it makes money. -- Me
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What part of "shall not be infringed" was unclear?
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Mann wrote..
Bucky would enjoy its status because there isn't any thing else.

exactly.

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Infantile, yes. Retarded, no. You went full retard, man. Never go full retard.

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Continuing with the Full Retard and Bilge themes:

There is an commentary piece on Forbes.com announcing Thorium as (possibly) the biggest energy breakthrough since fire.

What is interesting is that the author didn’t know that thorium as a fuel has been discussed for a long time and even tested. Plus it’s frustrating to see the people commenting are totally confused with pressure water reactors and molten salt reactors.

http://www.forbes.com/sites/williampentl....

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Jesus...... he's MORE than a little late.

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I don't care if it makes sense -- only if it makes money. -- Me
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What part of "shall not be infringed" was unclear?
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Maybe we ought to drill some damn oil wells. Can't we find another 50 wells in the Gulf like the BP blowout? Oh I forgot we can't drill those. Let me guess the National Review is not the same magazine as it was in the old days of WFB.

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Part of that article is this extremely informative graph:

[[Gallery image missing or removed]]


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