Nuclear Energy Can Save US: Defense of Big Oil Profits

Nuclear Energy Can Save US--America�s 100 nukes equal four million barrels of oil per day.

Billions of lives and civilization itself may be at risk from the Global Warming & End of Cheap Oil, Crisis. Rising sea levels and rising oil prices could be the end of civilization as we know it. The problem is so huge that the most powerful answer, many nuclear plants, must be deployed. Currently, America‘s 100 nukes deliver the energy of four million barrels of oil per day. Wind and solar cannot do the job, and may delay the real answer too long. Still, all kinds of clean energy, plus conservation, plus reducing deforestation, will be needed to help the poor half of the world, and for civilization to survive through this century.

Sunday, October 21, 2007

Defense of Big Oil Profits

Though I have no stake, I believe that suspicion of Big Oil profit is not helpful for the world's future. Cheap oil, drilled wells, must continue as long as possible, yet there are demands from some people for punitive taxes on Big Oil. They are business people, and will make a profit when they can, but they can't control prices. They explored worldwide, drilled, built oil fields in other countries, then saw their work expropriated. Still, the wonderful properties of oil, and the enormous supply virtually created the modern world economy. We must hope that Big Oil will apply their economic might to nuclear energy as oil disappears this century. A Wall Street financier was quoted recently as saying that they must do this, or perish.

My common sense tells me, the following pure guesses about oil profits:

When oil is $100 a barrel (real world price), the OPECs of the world will be able to lift a billion barrels of oil for $5B, and sell it for $100B export price; a $95B profit. Is this profit immoral? Maybe, but it is their resource, and it is running out.

Big Oil pays $100B for the billion barrels; transports it here for $5B; refines it for $20B; ships to oil and gas suppliers for $5B; adds $20B for profit; and sells to retailers for $150B. ($10B income tax leaves them $10B profit.) Retailers add $20B for their costs; $10B for profit; add $20B for state and local taxes; and sell to us for $200B. (REMEMBER: This guess is for only one billion of the 4 billion barrels that we import every year.)

Every 100 new nuclear plants, will equal energy of 4 million barrels of oil per day, 1.5BBPY, and save $150B to OPEC for $100 oil; $300B for $200 oil. Better, 500 nukes, costing $2 trillion in current dollars, will save 20MBPD, 7.5BBPY; and $1.5T per year for $200 oil; which will come.