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May 22, 2008

OPEC can't put this horse back in the barn

Ooops, looks like people are starting to ramp their coal production back up.

...But after decades of seemingly terminal decline, Japan's coal country is stirring again. With energy prices reaching record highs — oil rose above $135 a barrel on Thursday — Japan's high-cost mines are suddenly competitive again, and demand for their coal is booming. Production has jumped to its highest in nearly four decades, creating a sensation rarely felt in these mining communities: hope...
In comments yesterday somewhere, I mentioned a 2003 DOE report on the LPMEOH Methanol production process where a gasoline gallon equivalent amount of Methanol (~2gal) can be produced for well under a buck a gallon.

When people start thinking coal seriously, they naturally start thinking synfuels at the same time. OPEC has just killed the golden goose. She'll take 5-10 years to keel over, but mark my words, she's deader than Chairman Mao.

Game over OPEC. Its just a matter of time now.


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posted by Purp at 02:29 PM

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