Thursday, April 19, 2012

Spray, gas & competence

I've focused a lot on the sheer mass & excessive cost of university administrators, but haven't really mentioned their incompetence. To be quite clear - they're utterly useless.

One of the things that came up in Brad Hicks comments was how a 12 oz container carried easily in one hand could be 5 gallons in another version. I'm not particularly interested in pepper spray, but compression of natural gas is far more interesting.You need to do it for transport. Transport costs are really very high with shipping LNG - something like $5/mmBTU, over twice the Henry Hub price. Also, with residential - Henry Hub spot may be $2, but NStar is still charging $10. This contrasts with oil. Crude oil costs about $2.50-$3 per gallon, the gasoline fractions are about $3.30, and it's only $3.89 at the pump, with most of the increase being taxes.

(Exercise for the reader : Calculate the mass if those things weren't hollow)

With natural gas, throw in the time delays and by the time price based substitution & dispersion of exports gets significant, the new wells that have come online in the last year or two will have crashed. And we'll be back in shortage.

The idea that all systems head to equilibrium is just bunk. Some things are inherently unstable.

Even without Disney minions with a fiendish turntable flinging them over a cliff.

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