Oil's Not Well

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Hi!!! With Crude oil prices touching US$70 per barrel, I was compelled to make this thread to discuss a way out for India. We seem to be very close to signing a deal with Iran on the transfer of Oil through Pakistan. Also, talks are on f...
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And the best part is, leaving aside the BJP & LEft which are against the price rise Congress it against the cabinet decison.It wanted a rise of 3 rs for petrol & 1 rs for diesel.Have left kerosene & LPG untouched worrying about the public backlash.

Only thing i like about stone in my path is, when I cross them, they become my milestones!
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rmbt Says
State Oilcompanies are bleeding profusly.This rise in oil price is wa a must so that they the losses can be reduced for them.Dont get why govt keep these oil prices at such odd figure like 51.83 & why not 52 rs.If the instability continues in middle east then you can expect it to be touching around 60 rs(in mumbai where it is the most expensive) at the end of the year.


Its the age old logic of psychological pricing.Consumers dont bother rounding off figures and ignore the least significant digits.And it makes people think its marketed at lowest possible price.
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I've been thinking about this for qiute some time and maybe i've hit upon something.

When oil prices rise, the gulf countries increase production, apparently to reduce prices, but what they get is very high profits by selling more oil at higher rates. So all the talk of Saudi being a good country to buy oil from or being a responsible oil exporting nation goes in a tizzy

Also, during such times, increasing oil prices would harm the common man, as often even kerosene prices are increased (its not the case now, but it does happen) So their cooking oil, light through the lamps, etc become costlier, and even a Rs 2 increase would hurt a person earning Rs 100 per day, especially if he has a large family to feed.

So, what is the solution??

Lets take a small example. The total demand for oil in India is say 1000 barrels. At present for instance the priceof oil is 30$ per barrel.So what we could do is that instead of buying 1000barrels, we could get say 1500barrels. Total cost $45000. 1000 barrels are sold as per demand, the rest is kept as reserve. Price doesnt fluctuate significantly for 3 months. Total reserve at the end of 3 months, is 1500 barrels.

Then, the price rises to 50$. So now, we buy only what is demanded, ie 1000 barrels. The reserve is kept untouched. Total cost 50000$.

Further, the price rises to 70$. Now we buy, say 800 barrels. Total cost, $56000. The remaining 200 barels are released frm the reserve, with a cost of 30$. So the average cost comes to 62$ per barrel instead of the actual cost of 70$. Also, the losses of all companies could be reduced, and the prices be kept in control. It would be a win win situation for all.

If this could be replicated on the Indian economy, it may be helpful to counter high price increase in the gulf. What we need is a policy, to buy more oil at lesser prices, and lesser at highprices. (Remember 12th Std Economics, Law of Demand).

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State Oilcompanies are bleeding profusly.This rise in oil price is wa a must so that they the losses can be reduced for them.Dont get why govt keep these oil prices at such odd figure like 51.83 & why not 52 rs.If the instability continues in middle east then you can expect it to be touching around 60 rs(in mumbai where it is the most expensive) at the end of the year.

Only thing i like about stone in my path is, when I cross them, they become my milestones!
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..........
.......good that rise happened..some respite...for oil marketing co/
still gradual increases ..........are need of the hour...

nothing wrong in this..as the only way to reduce our current account deficit................
and with rupee depreciating ....monetary policies...come in to effect... and this rise is a way to artificially step up inflation to just levels so that demand for money and INDIAN RUPEE rises.....

with crude closing above 72 yest in NYMEX....it had to happen sooner than later.....

neways....if we earn well we have to pay a price for it....apart from the taxes n stuff..!!

totally support this economically sound logical move....!!

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The belowmentioned is the link to a very good Article on the OIL cirses

http://www.hindu.com/2006/06/05/stories/2006060500551800.htm

Thankx
Azeem

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Oils not well again.Petrol and diesel hiked by rs.4 and Rs.2 respectively,While Kerosene and cooking gas have been spared.:( The current retail prices at Delhi correspond to a price of around $26 per barrel for kerosene (global prices ruling at $ 87.04 per barrel), $272 per tonne for LPG ($ 470 per tonne global price are really ridiculous.Sonner or later they would have to hike those or turn the oil companies bankrupt totally ,which has already resulted in the projected loss of Rs. 735 billion.And then when the budget comes out ,we have to squeeze through our hearts and pay education cess and various other ones to cover up for Governments imprudence.

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Getting energy from water. Read this in a book
Deuterium
In water, H2O, some times we may find a heavier isotope of Hydrogen, called Deuterium. (Atomic mass of normal Hydrogen atom = 1, of Deuterium = 2). It has been known for long that two Deuterium atoms can be fused to form an atom of Helium. Thats what happens in the sun and other stars. 1kg of Deuterium provides as much energy as 14 million kgs of coal burned. And, our oceans have enough Dueterium as part of water to last mankind for 30 million years (if mankind survives that long).
However, to fuse two deuterium atoms, we need a temperature of 200 million degree Celsius. At this high temperature, everything converts into plasma, even the installation in which such a conversion is attempted. Hence, it isnt viable to store plasma in a container, and hence it is packed using magnetic fields. However, plasma always seeks a crack in the magnetic fields, and finding one, breaks free and the deuterium flies off in all directions and is lost.
Soviet scientists had designed and built a series of installations called TOKAMAK to provide high temperatures. However, the maximum they can go upto is 20 million degrees, just 10% of what we require.
Hence, scientists have found another way. They take a small granule of ice of water having deuterium. A laser beam is directed at it. This heats it to a very high temperature. But before it melts to form water, the deuterium atoms in it start fusing and realease energy. This causes an explosion, which realeases the energy, though in very small quatities. In order to get a sizable amount of energy, 20 granules of ice should be exploded per second.
This energy is used to heat liquid lithium, which transmits heat to water (normal). The water turns to steam and is directed to a turbine which generates electricity.
The use of this method, (called thermonuclear energy) not only produces a great deal of energy, but is also non-polluting.
Hydrogen
Hydrgen is a highly combustible fuel. Also, using hydrogen is economically viable, as huge quantities of it are present in the seas and in crude oil. Also, hydrogen burns to form water, and hence hydrogen is the cleanest fuel. At present, hydrogen is extracted from crude oil, which is an expensive process, and produces very little H2. So instead, electrolysis can be used to extract H2 from the seas. However, this would require a lot of electricity itself, which can only be provided by a nuclear power station.
So, scientists have come up with a design of a floating nuclear power station on the seas and oceans. All electricity produced would be used to extract hydrogen, which would be pumped to the mainland through pipelines. This H2 would then be converted to liquid before being distributed to the final consumers. It may give two benefits. Burning liquid hydrogen will give power, and also forms water, the purest water on earth. So, both power and water needs of people are satisfied.
However, proper storage of hydrogen gas is necessary, since, if kept in the open, it will evaporate, and if tightly shut, it may craete pressure and explode. So, the containers must be open only just enough to avoid an explosion, and yet retain as much hydrogen as possible.


What about the hybrid cars which were supposed to have hit nations in order to cut-down on dependency on Oil n natural gas.
Also, I remember reading article in TOI which mentioned that technology to extract energy from Water existed way back in 70-80's and a certain german engineer had worked extensively in this area but the industry big-wigs BP,Shell had more muscle power to nip the bud....reason-moolah would be lost coz what about the investment they had made in refineries and the oil which they produce which does become less than its worth!! Sounds cynical.

Anyway, whoever said 3rd world war would be fought for water might have seen this coming....Any comments.
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ONGC Chairman Subir Raha has virtually declared war on the bureaucrats of the Union Petroleum Ministry. At the AGM yesterday, Raha said that being a navratna company, ONGC is autonomous from interference of petroleum ministry bureaucrats. He added that a public sector company is owned by the people of India and not to any one person in a given office for a given tenure, referring to the Petroleum Minister Mani Shankar Aiyar himself. He said that companies are not government departments and everyone expects them to make profits, and that they are under the Companies Act.

This follows a bid by the Ministry to appoint two government nominees in seats vacant for independent directors on the board of ONGC. One of them, V K Sibal, is the director-general of hydrocarbons, the petroleum regulator in the country. Hence, it would be inappropriate to choose him as his present job is to set limits for oil companies and would hamper the growth of ONGC. These two people were chosen by the ministry after rejecting a number of other candidates which included former professors of IIM's, chairmen of companies and former senior bureaucrats. Mr. Raha, had rejected the nominations, leading to a virtual war with the ministry. Tensions finally decreased when, earlir this week, Mr Aiyar withdrew the nominations putting the blame on the bureaucrats of his ministry.

Chairmen and corporates of other public companies, especially oil PSU's were elated at Mr Raha's comments, which apply to all PSU's in general. Though they refused to say anything on record, they did express their support for Mr Raha. At the AGM itself, Raha's comments were met by loud applause, as government nominees and representatives looked nervous. Many shareholders went to Mr Raha after the AGM to congratulate him and asked him to keep up the good work he was doing.

Even political parties have supported Mr Raha. BJP, and surprisingly, even the CPI have said that autonomy of PSU's should not be compromised. Even the Prime Minister, who is reported to be at odds with Aiyar over this and a few other matters, had said a couple of months back that PSU's should be given complete autonomy.

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Getting energy from water. Read this in a book

Deuterium
In water, H2O, some times we may find a heavier isotope of Hydrogen, called Deuterium. (Atomic mass of normal Hydrogen atom = 1, of Deuterium = 2). It has been known for long that two Deuterium atoms can be fused to form an atom of Helium. Thats what happens in the sun and other stars. 1kg of Deuterium provides as much energy as 14 million kgs of coal burned. And, our oceans have enough Dueterium as part of water to last mankind for 30 million years (if mankind survives that long).

However, to fuse two deuterium atoms, we need a temperature of 200 million degree Celsius. At this high temperature, everything converts into plasma, even the installation in which such a conversion is attempted. Hence, it isnt viable to store plasma in a container, and hence it is packed using magnetic fields. However, plasma always seeks a crack in the magnetic fields, and finding one, breaks free and the deuterium flies off in all directions and is lost.
Soviet scientists had designed and built a series of installations called TOKAMAK to provide high temperatures. However, the maximum they can go upto is 20 million degrees, just 10% of what we require.
Hence, scientists have found another way. They take a small granule of ice of water having deuterium. A laser beam is directed at it. This heats it to a very high temperature. But before it melts to form water, the deuterium atoms in it start fusing and realease energy. This causes an explosion, which realeases the energy, though in very small quatities. In order to get a sizable amount of energy, 20 granules of ice should be exploded per second.
This energy is used to heat liquid lithium, which transmits heat to water (normal). The water turns to steam and is directed to a turbine which generates electricity.

The use of this method, (called thermonuclear energy) not only produces a great deal of energy, but is also non-polluting.

Hydrogen
Hydrgen is a highly combustible fuel. Also, using hydrogen is economically viable, as huge quantities of it are present in the seas and in crude oil. Also, hydrogen burns to form water, and hence hydrogen is the cleanest fuel. At present, hydrogen is extracted from crude oil, which is an expensive process, and produces very little H2. So instead, electrolysis can be used to extract H2 from the seas. However, this would require a lot of electricity itself, which can only be provided by a nuclear power station.

So, scientists have come up with a design of a floating nuclear power station on the seas and oceans. All electricity produced would be used to extract hydrogen, which would be pumped to the mainland through pipelines. This H2 would then be converted to liquid before being distributed to the final consumers. It may give two benefits. Burning liquid hydrogen will give power, and also forms water, the purest water on earth. So, both power and water needs of people are satisfied.

However, proper storage of hydrogen gas is necessary, since, if kept in the open, it will evaporate, and if tightly shut, it may craete pressure and explode. So, the containers must be open only just enough to avoid an explosion, and yet retain as much hydrogen as possible.
Commenting on this post has been disabled by the moderator.