Posts Tagged ‘crude’

Speculators panic, bubbles burst, then we start over

September 13th, 2011
By: Eric Lundin

Invest, invest, invest. The modern world has no shortage of ways to invest money if you have a little extra cash sitting around: real estate, commodities, stocks, corporate bonds, government bonds, and so on. Some specialized firms even invest in money, writing forward contracts to buy or sell currency at a future date, hoping that the value of the currency will decrease or increase in the meantime.

Regardless of an investment’s long-term potential, investors aren’t always patient, prudent, or rational. Investments are vulnerable to the whim of the masses, which is more than enough to send the value of a sound investment up a steep slope and over a cliff. (more...)

Days of rage at the pump, in Libya, and in Saudi Arabia

March 9th, 2011
By: Eric Lundin

Judging by the political developments in Libya and the current price of petroleum, you’d think that Libya was some sort of heavyweight exporter. Last fall West Texas Intermediate (WTI) crude oil was trading at less than $85 per barrel on the spot market. Protests in Libya started in February, and WTI reached $99 per barrel in early March. Granted, Libya isn’t the only country in the region recently shaken by a political disturbance. Protests in Tunisia in December spread to Egypt in January, then Libya in February.

Still, they’re lightweights. (more...)

Cleaning up (slowly) in the gulf

June 10th, 2010
By: Eric Lundin

It’s no secret that the Transocean oil spill is among the largest man-made environmental disasters of all time. Given the impact, the word spill itself is a huge understatement. Gusher or torrent or catastrophe would be more accurate. An early estimate of 5,000 barrels leaking per day appears to have been wildly understated. To quote a June 9 update from the National Oceanic and Atmospheric Administration’s Web site, “… BP hopes to ramp up the collection rate from 15,000 to 28,000 barrels per day over the next week.” The second-largest petroleum disaster in the U.S., the Exxon Valdez wreck, spilled about 250,000 barrels in total.

Even though BP is far from getting the leak under control, the cleanup efforts have been going on for weeks (almost as long as the oil has been leaking, in fact). We have more than a handful of cleanup measures. We can use skimmers to vacuum it up, absorbents and adsorbents to soak it up, controlled fires to burn it up, and detergents and dispersants to break it up. The effectiveness of each of these depends on the oil’s density, the water temperature, weather conditions, and so on.

My particular favorite oil cleaner? Hydrocarbonoclastic bacteria (HCB). That’s right, bacteria. Considering that petroleum contains compounds known to be toxic, it doesn’t seem possible that some bacteria can digest hydrocarbons, but that’s what it amounts to. Most fabricators use hydraulic equipment and already know that some types of bacteria and fungi thrive in hydraulic systems. Considering the heat and pressure developed in most hydraulic systems, these are some hardy life forms—hence the need for maintaining the hydraulic system’s filtration system and adding a biocide on a regular basis. It turns out that they don't just survive in hydraulic systems; some feed off the hydrocarbons in in hydraulic fluid. In a natural environment, they can digest the components in crude oil.

The Exxon Valdez ran aground in 1989; Prince William Sound is both the site of the wreck and a classroom. What have we learned from that cleanup effort? It’s a slow process. Despite our efforts, as well as those of HCB’s, some areas in that region will be contaminated for another 10 years.

And the Deepwater Horizon disaster may have already released 50 times as much oil as the Exxon Valdez did.