by Chris Black
I remember reading a few years ago that synthetic gasoline made from coal would be profitable at $2 per gallon.
The easily available coal reserves of America could produce enough synthetic gas to fill every car for at least 250 years.
The $2 cost per gallon was also based on current methods.
Once the economy of scale was reached, and better methods found, the price could drop to $1 per gallon.
You have to remember that the Germans were making synthetic gas during WWII, so this isn’t some new experimental technology, plus the synthetic oil you buy for your car is also made from natural gas, using a similar process (GTL or gas to liquid).
Not to mention biodiesel and algae fuel.
The only purpose for electric cars is to reduce the number of cars and the ability for people to buy them. Keep in mind that there isn’t enough lithium on Earth to produce enough cars to switch 10% of the current ICE automobiles to electric.
Speaking of manipulated oil prices (via futures), you can believe the bullshit that oil and gas demand have never been higher, or you can go outside in the real world and see that everything Wall Street claims is wrong.
This is only reported that way to support the asinine position that $120-200 oil and $5 gas is justified.
It isn’t and never has been.