Wednesday, October 29, 2014

Volkswagen’s New 300 MPG Car Not Allowed In America Because It Is Too Efficient


You won’t find the 300 MPG Volkswagen XL1 in an American showroom, in fact it has even been denied a tour of America because it is too efficient for the American public to be made widely aware of, and oil profits are too high in America with the status quo in place. No tour has been allowed for this car because the myth that 50 mpg is virtually impossible to obtain from even a stripped down econobox is too profitable to let go of, and when it comes to corporate oil profits, ignorance is bliss.

Years ago I had calculated that it should be possible to get a small car to exceed 100 mpg by putting parallel direct to cylinder water injectors side by side with the fuel injectors, and using the exhaust manifold to preheat the water so it would enter the cylinders as dry steam, thus providing added expansion (which drives the engine) while allowing the combustion process to proceed without reducing it’s efficiency. But I was obviously wrong with my calculations, because they were in fact over 2x conservative.

The 100 mpg carburetor was indeed a reality, and the Volkswagen XL1 proves it with only straightforward nothing special technology we have had since the 1970?s.Though the XL1 can be plugged in to deliver a 40 mile all electric drive, it does not need to be plugged in EVER to achieve 300 mpg. And it does not cheat in any way to achieve the rating, it weighs over 1,700 pounds, has normal tires, and delivers a very good driving experience with a governed top speed of 99 mph. The XL1 could reach a top speed in excess of 110 mph absent governor and turns in a 0-60 time of 11.5 seconds which is by no means leisurely for a car designed for efficiency. The XL1 in no way cheats on performance to hit it’s rating. It is simply the car we should have always had, and have had taken from us in the name of oil profits.

Though the XL1 can hit 300 mpg under ideal driving conditions, it’s combined mileage is usually a little over 200 mpg, and if you do city driving only that will drop to a minimum of 180 mpg under the worst driving conditions. But I’d be happy with that no doubt.

xl1_2

What does that kind of fuel economy really mean?

If the XL1 was equipped with an 18 gallon fuel tank, and you did all highwaydriving, you could fill it up with an oil change and when the next change was due you could change the oil and keep driving without filling up for and additional 2,400 miles. But it comes with a much smaller fuel tank, because if it could go that long on a single tank chances are the fuel would foul before it got used. The tank is only 2.6 gallons to prevent fuel age related problems from happening. So fill ups are cheap.

Many of the publications which speak about the XL1 did so when it was a concept car predicted to get right around 250 MPG. But in 2014, after extensive testing of cars now produced, test drivers report economy above 300 mpg under the correct driving conditions, which would be close to sea level, a flat straight road with no stops, and reasonable speeds. To get rid of miles/imperial/U.S. gallon confusion, in the metric system the XL1 is rated to deliver 100 kilometers per litre. Translated for the U.S., that means approximately 65 miles per quart.

I remember how I laughed at the Smart Fortwo, because even a full size 4 doorChevy Impala significantly beat the “Smart’s” fuel economy, and with the Impala you would get a whole car. The Volkswagen XL1 is clearly the two seater the Smart should have been if it really was what the name implies, and the XL1 is in contrast, a car I’d be proud to be seen in.

You will NOT see the Xl1 in America,

Even it’s far less efficient 85 mpg non hybrid full size station wagon counterpart – the Jetta TDI blue motion wagon (Carscoops.com), which is made in America is banned from American roads. And I would like to ask why? What excuse is there for banning highly efficient cars from American roads?
One excuse is that “they don’t meet American crash test standards”, but the real truth is that the Fed simply refused to ever crash test them because of what they are, in Europe even the XL1 is considered to be a very safe car in crashes, and the Jetta station wagon is obviously even safer and you CAN buy the non TDI versions of the exact same car in America. The only thing different is the engine, WHAT GIVES?

The answer is obvious. Simply for the sake of raking in huge profits from $4 a gallon gas, getting guzzled at 10X the rate it should be, the corporations have via campaign contributions and other types of pay outs succeeded in getting the FED to legislate the best cars off the road for irrelevant trumped up reasons.

The XL1 will not meet American emission standards NOT because it is not clean enough, it will not meet them simply because inefficient parts that are mandated by the EPA are not part of the XL1?s power train. We will never see truly clean running and efficient cars in America, because the FED has mandated that American cars be intentionally stifled by horribly fuel wasting parts that add to the cost of the vehicle and do absolutely NO GOOD, how much more efficient and clean can you get than 300 mpg? The exhaust from the Xl1 has to, by simple math and the laws of physics, run at the theoretical threshold of emissions perfection.

All is not rosy for Europe however

xl1_1

The Xl1 is SO MUCH the car that the oil companies do not want that there will only be 2,000 made. And no production line was set up for them, they are all hand made. And irrelevant “lightweight” parts are added to the frame, consisting of carbon fiber and other exotic materials to add to the mystique. But the materials and production limits are a load of BUNK, the car STILL weighs over 1,700 pounds, if it weighed just 100 pounds more everything exotic could be removed, because “exotic materials” are not doing much anyway, they are just marketing.

Cost is not the issue either Even after being hand made with “exotic” materials in an intentionally limited edition, the Xl1 still only costs $60,000. There is a lot more of a market for this car than 2,000 units at that price, have no doubt, this car is being held back on purpose. If it can be hand made for that little, automated assembly lines could do it for half. And if a 1,700 plus pound Xl1 can get 300 mpg, a 3,400 pound Chevy Truck should be able to deliver at least 150 MPG, the Xl1 lays the mileage scam bare, with every hybrid that gets 40 mpg and every truck off the line that gets 20, Americans are getting the shaft and they do not even realize it.

I was first infatuated and impressed with the 85mpg Volkswagen TDI Blue Motion wagon and wished I could get one in America (when I was still there), and then the 300 mpg Xl1 came along, what a rude awakening and slap in the face for the American car buyer.

Just how low can Brent crude go?


Tuesday, October 28, 2014

BP spill left big oily 'bathtub ring' on seafloor


WASHINGTON (AP) — The BP oil spill left an oily "bathub ring" on the sea floor that's about the size of Rhode Island, new research shows.

The study by David Valentine, the chief scientist on the federal damage assessment research ships, estimates that about 10 million gallons of oil coagulated on the floor of the Gulf of Mexico around the damaged Deepwater Horizons oil rig.

Valentine, a geochemistry professor at the University of California Santa Barbara, said the spill from the Macondo well left other splotches containing even more oil. He said it is obvious where the oil is from, even though there were no chemical signature tests because over time the oil has degraded.

"There's this sort of ring where you see around the Macondo well where the concentrations are elevated," Valentine said. The study, published in Monday's Proceedings of the National Academy of Sciences, calls it a "bathtub ring."

Oil levels inside the ring were as much as 10,000 times higher than outside the 1,200-square-mile ring, Valentine said. A chemical component of the oil was found on the sea floor, anywhere from two-thirds of a mile to a mile below the surface.

The rig blew on April 20, 2010, and spewed 172 million gallons of oil into the Gulf through the summer. Scientists are still trying to figure where all the oil went and what effects it had.
 
BP oil spill
BP questions the conclusions of the study. In an email, spokesman Jason Ryan said, "the authors failed to identify the source of the oil, leading them to grossly overstate the amount of residual Macondo oil on the sea floor and the geographic area in which it is found."

It's impossible at this point to do such chemical analysis, said Valentine and study co-author Christopher Reddy, a marine chemist at Woods Hole Oceanographic Institute, but all other evidence, including the depth of the oil, the way it laid out, the distance from the well, directly point to the BP rig.

Outside marine scientists, Ed Overton at Louisiana State University and Ian MacDonald at Florida State University, both praised the study and its conclusions.

The study does validate earlier research that long-lived deep water coral was coated and likely damaged by the spill, Reddy said. But Reddy and Valentine said there are still questions about other ecological issues that deep.
___

Online:
Journal: http://www.pnas.org

China Goes On A Crude-Oil Buying Spree As Global Prices Tumble To $85 A Barrel

Crude Oil Cargo Ship
Amid falling oil prices, China's state-run oil firm has reportedly purchased 36 cargos of crude oil so far in October -- its largest purchase in a single month.

China is snapping up unusually high amounts of crude oil as global prices hit their lowest level in years, Wall Street Journal reported Monday. The buying spree could boost the weak international demand for oil, which has helped to push down prices by more than 25 percent over the past five months, analysts say.

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A unit of state-run China National Petroleum Corp. has purchased 36 cargos of crude oil in the open market so far in October, Singapore traders told WSJ. The oil haul, equal to about 18 million barrels of crude, is the country’s largest purchase in a single month and hails primarily from Oman and the United Arab Emirates.

The crude is thought to be destined for China’s emergency oil stores, which the country could tap during a crisis to produce transportation fuels like gasoline and diesel. China’s current thirst for oil, meanwhile, remains low, with demand growing at its slowest rate since 1990, WSJ noted.

The large-scale purchase indicates that Chinese oil officials are expecting prices to eventually bounce back, and that they are capitalizing on the cheap crude while they can. But Goldman Sachs analysts said they project prices will fall even further next year as worldwide production -- led by U.S.
developers -- outpaces demand.

In a report released late on Sunday, the U.S. investment bank said it expects benchmark Brent crude prices to drop to $85 a barrel in the first quarter of 2015, while U.S. benchmark West Texas Intermediate (WTI) crude could fall to $75 a barrel. Both prices are down by $15 per barrel from the bank’s previous oil price forecast.

Brent crude prices fell to below $85 per barrel on Monday, and WTI crude dipped below $80 per barrel, following the Goldman report, Reuters reported.

Monday, October 27, 2014

Venezuela Scraps Plans to Sell U.S. Refining Arm Citgo Petroleum






Venezuela shelved a planned sale of about $10 billion in U.S. refineries as surging North American crude output pushes down energy prices and profit margins.

The country ruled out selling its U.S.-based refining subsidiary Citgo Petroleum Corp., Finance Minister Rodolfo Marco Torres told Caracas-based El Universal in an interview published yesterday. The nation will keep investing in Citgo, he said, echoing comments made by President Nicolas Maduro last month.

Citgo said in a July 29 filing that state-owned oil company Petroleos de Venezuela SA was looking for a buyer, threatening to undermine bondholders and other creditors by removing a sovereign asset that could be seized in the U.S. in the event of a default. Former oil minister Rafael Ramirez said in August that Citgo was worth at least $10 billion, while Barclays Plc said last month that the company’s equity value is between $7 billion and $9 billion.

“Refining margins have fallen and we have seen some of the Citgo refineries involved in unscheduled downtime,” Andy Lipow, president of Houston-based energy consultant Lipow Oil Associates LLC, said in a telephone interview on Oct. 24. “Those are issues more on the minds of potential buyers than the price of oil.”

West Texas Intermediate for December delivery fell close to a two-year low of $81.01 a barrel on the New York Mercantile Exchange on Oct. 24.

Bond Market

Venezuela’s Information Ministry didn’t immediately respond to an e-mail sent outside of normal business yesterday seeking comment on the reason for the suspension of the sale.

The sale of Citgo could have undermined PDVSA’s cash flow in the medium term and cost it market leverage in the U.S., Eurasia Group analyst Risa Grais-Targow said in an interview from Washington on Oct. 17.

Venezuela’s dollar bonds posted the best week in six months after Maduro fueled speculation that the sale wouldn’t go through when he said on Sept. 23 that his government would strengthen the refining company.

The country has started talks with Exxon Mobil Corp. (XOM) after a World Bank arbitration court ruled earlier this month that the country must pay the company $1.6 billion for assets seized in 2007, Marco Torres told El Universal. The country will make payments after it sets a schedule with Exxon, he told the newspaper.

No Trouble

Maduro on Oct. 22 blamed foreign media for spreading fears that falling oil prices would push the country closer toward defaulting on its foreign debt. Yields on its benchmark dollar bonds due in 2027 hit a five-year high of 17.88 percent on Oct. 15 after Harvard University economists Carmen Reinhart and Kenneth Rogoff said the country probably would default.

Venezuela on Oct. 8 paid $1.56 billion of government bonds that matured. PDVSA will not have trouble paying $3 billion of bonds that mature on Oct. 28, Marco Torres told El Universal.

An off-budget fund known as Fonden and loans from China will help Venezuela manage lower oil prices, Marco Torres said in the interview, adding that the country will be able to meet all of its commitments. Venezuela’s oil export basket price fell to a four-year low of $75.90 a barrel in the week ended Oct. 24, according to the oil ministry.

An adjustment to economic policies would be “unavoidable” at current oil prices, Barclays Plc said in an Oct. 22 note to clients, adding that the government could sell Citgo, reduce subsidized oil shipments to Caribbean countries, devalue its currency or renegotiate loans from China.

Fight Inflation

Venezuela is continuing to review the domestic price of gasoline, in addition to currency and fiscal policies, Marco Torres said in the interview with El Universal, adding that Maduro has the final say on any changes.

Former oil minister Rafael Ramirez said in May the country’s policy of selling gasoline for $0.06 a gallon, the cheapest in the world, cost $12 billion a year.

Marco Torres told El Universal that Venezuela was working to fight inflation, currently the fastest in the world at 63 percent, and increase national production. When asked by the newspaper why the country had delayed reporting data on its gross domestic product, he said the central bank was doing excellent work and would continue to do so next year.

To contact the reporters on this story: Nathan Crooks in Caracas at ncrooks@bloomberg.net; Pietro D. Pitts in Caracas at ppitts2@bloomberg.net

To contact the editors responsible for this story: James Attwood at jattwood3@bloomberg.net Sylvia Wier, Theo Mullen

Friday, October 24, 2014

Nigeria gov’t revenues fall 16.5 pct in Sept as oil prices decline


NNPC logo


(Reuters) – Nigerian government revenues fell to 502.09 billion naira (3.03 bln) in September, down 16.5 percent from 601.65 billion naira in August, due to falling global oil prices and domestic production outages, Accountant General Jonah Otunla said on Thursday.


“The … decline in mineral revenue was attributed to the slight decrease in crude oil prices and production loss due to the shutdown of the trunk lines and pipelines at the various terminals,” Otunla said.

Brent crude oil, the benchmark against which Nigeria’s oil is indexed, has lost more than 25 percent since June.

Revenues to be distributed to three tiers of government in September – federal, state and local – were 603.5 billion naira, down from 611.76 billion in August, Otunla said.

He said 2.76 billion naira ($16.67 mln) meant to be transferred to the oil savings account, the Excess Crude Account (ECA), was instead distributed to plug government revenue shortfalls. The balance in the ECA currently stands at $4.11 billion.
(1 US dollar = 165.65 naira)

Saudi Arabia’s Crude Oil Supply Said to Fall in September


The amount of oil Saudi Arabia supplied to markets fell last month, according to a person familiar with the country’s oil policy. Its production climbed.

The world’s biggest crude exporter supplied 9.36 million barrels a day last month, a reduction of 328,000 barrels daily from August, according to the person, who asked not to be identified, citing policy. The supply figure excludes what’s stored. Saudi Arabia produced about 100,000 barrels a day more than in August, the person said.

Crude collapsed into a bear market this month as Saudi Arabia and other producers deepened price discounts for their oil, amid speculation they’re competing for market share in Asia. Global supplies are rising as the U.S. pumps the most in almost three decades and Russia’s output nears a post-Soviet record. Brent, the global oil benchmark, rose more than 1 percent immediately after the person’s comments.

“If this was an intentional cut by Saudi Arabia, I’d expect them to have cut the actual amount of oil produced and not just the supply to market,” Richard Mallinson, a London-based analyst at Energy Aspects Ltd., said by phone. “More is being read into the fluctuations than should be. I don’t see anything in these latest numbers to indicate a unilateral production cut.”

Cut Calls

Angola, Libya and Venezuela have all said OPEC needs to take action on prices, with the Latin American nation’s President Nicolas Maduro calling for an emergency meeting in a televised address Oct. 17. Global markets are oversupplied by about 1 million barrels a day and OPEC needs to reduce collective output by at least 500,000 barrels a day, Libya’s OPEC governor Samir Kamal said by e-mail yesterday, adding that his comments reflected personal views.

Saudi output in September was 9.7 million barrels a day, up from almost 9.6 million barrels a day in August, the person familiar with Saudi policy said. That’s the same as OPEC reported in its most recent market assessment.

Brent crude for December settlement rose as much as $1.94, or 2.3 percent, to $86.65 a barrel in London. West Texas Intermediate crude for December delivery gained as much as $1.38, or 1.7 percent, to $81.90 a barrel on the New York Mercantile Exchange.

“The market is reacting instantly to any news on oil market fundamentals,” Gerrit Zambo, an oil trader at Bayerische Landesbank in Munich, said by phone. “So far these gains have been only a short-term reaction, and then the market seems to go back to its bearish sentiment.”

To contact the reporters on this story: Wael Mahdi in Manama at wmahdi@bloomberg.net; Anthony DiPaola in Dubai at adipaola@bloomberg.net

To contact the editors responsible for this story: Nayla Razzouk at nrazzouk2@bloomberg.net Alaric Nightingale, Bruce Stanley