Know the Physical Limitations of a Barrel of Crude Oil.

A barrel of oil is a concentration of carbon formations. The only element which creates more chemical formations than carbon is hydrogen. Quite simply, without carbon, life cannot exist. A barrel of oil consists of 42 gallons of crude oil and will result in the production of roughly 46 gallons of carbon based products from gasoline to lubricants.

The approximately 10 percent increase in volume is the result of added ingredients during the oil refining process. A little less than half a barrel of oil is used to produce gasoline. About 25 percent of a barrel of crude oil is used in the production of diesel and jet fuels. The balance of a barrel of oil is used to produce a variety of products including lubricants which represent less than 1 percent of a barrel of oil. The important point is that the products produced from a barrel of oil are, for all practical purposes, fixed. In other words, in round numbers a barrel of crude oil will produce 19 gallons of gasoline. If you need 38 gallons of gasoline, you need 2 barrels of oil. You will also have to dispose of the other products produced during the refining process to create the required volume of gasoline. Needless to say, since the products produced from a barrel of oil are consistent, the change in needs of one product will dictate the production volume as well as the price of other oil products.

Question: If America continues increasing the energy efficiency of gasoline vehicles but the need for other products produced from oil remains constant or increases, what will happen to the cost of gasoline and/or the cost of the other oil related components? The most likely result will be a decrease in the price of gasoline with a corresponding increase in the cost of the other products which are in demand. The bottom line is the American consumer will still pick up the bill, it just wouldn’t be in the form of higher gasoline costs.

If America is going to resolve the atmospheric carbon, (CO2), issue, America must remove the blinders and address the entire oil issue. Modern society requires the products produced from oil. That will not change. Unless mankind learns how to monitor and control atmospheric carbon levels, climate change will likely accelerate. Since a global consensus as to how to address excessive atmospheric carbon levels is not likely, Americans must undertake the task of controlling atmospheric carbon levels to protect the American way of life. The rest of the World will also be beneficiaries of America’s costly efforts.