Landon Hall

Now you can watch PUMP the Movie on Amazon

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PUMP has landed on Amazon, so viewers now have multiple ways to watch this terrific documentary in the comfort of their homes. Or the comfort of their offices, commuter trains or coffee shops. Wherever they feel comfortable, really.

PUMP is available for download onto your favorite digital device, or for viewing on Amazon’s video streaming service. The cost for purchase is $12.99 ($13.99 for high-definition). To rent it for seven days, the cost is $4.99 ($5.99 HD).

Visit the PUMP link on Amazon to learn more. If you’ve seen the movie already, post a review!

As Chris Meloni points out, it’s important to search for the right flick: It’s PUMP the Movie, not something else. But if you want to watch that Arnold Schwarzenegger movie too, go for it.

PUMP, narrated by Jason Bateman, chronicles the story of oil and how it came to be virtually our only choice for a transportation fuel. The film shows how we can use a multitude of domestically produced fuels, like ethanol, methanol and compressed natural gas, to reduce oil consumption. Displacing a portion of the oil we guzzle will strength the economy, improve national security, reduce pollution’s impact on health, and protect the environment. There’s also cool stuff about Tesla and race cars.

PUMP also is available through Apple’s iTunes store. If the big screen is the way you’d prefer to see this important film (and hey, why wouldn’t you, with such great work by filmmakers Josh and Rebecca Tickell), there are several upcoming screenings on campuses and other venues around the country, including Arizona State University, UCLA and the Utah Film Center in Moab. You can also organize your own screening!

Visit PumpTheMovie.com for more information.

If you haven’t experienced the convenience and visual quality of Amazon’s video service, check it out. Not only can you download content onto your laptop, tablet or phone, you can add it at home using certain TVs, Blu-Ray players, gaming consoles and other devices. As Business Insider writes, Amazon is nearly as popular as Netflix.

Speaking of Netflix, PUMP is coming to that service soon. Check back for a date.

Fuel Freedom Staff

Saudis pay only 45 cents a gallon for gas

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The Washington Post has an interesting story about the impact of lower gas prices — meaning the overall price drop since June, taking into account the recent uptick — on consumers in Saudi Arabia. While the government might one day have to make a decision about lowering oil output, thus letting prices climb again, regular citizens aren’t noticing much difference. That’s because Saudis pay about 45 cents a gallon to fill up their vehicles, thanks to government subsidies.

In Saudi Arabia, the general response to the drop in global oil prices by half — from more than $100 a barrel six months ago to around $50 now — is a shrug. Remember all those $60 fill-ups at U.S. pumps when gas was running close to $4 a gallon over the past few years? While your wallet was getting hammered, Saudi Arabia’s was getting stuffed thick. The kingdom has more than $750 billion in cash reserves, which is more than enough to keep the lights on and stave off panic over oil markets.

Not only is the government not sweating the reduced price of oil, it’s continuing with an ambitious program of public works to benefit citizens.

the government could go seven or eight years without trimming back its plans, simply by using its massive reserves, which are equal to 100 percent of annual gross domestic product, to cover budget deficits. More likely … the government would monitor oil prices closely for about 18 months and rethink strategy if they did not rebound.

Saudi Arabia has prospered over the decades thanks, in part, to protection from the U.S., the world’s most prolific consumer of oil. According to this timeline on PBS’s “Frontline” program:

1940-45: Although Saudi Arabia officially maintained neutrality through most of the war, the U.S. began to court the kingdom as it realized the strategic importance of Saudi oil reserves. In 1943, President Franklin Roosevelt made Saudi Arabia eligible for Lend-Lease assistance by declaring the defense of Saudi Arabia of vital interest to the U.S. In 1945, King Abdel Aziz and President Roosevelt cemented the tacit oil-for-security relationship when they met aboard the USS Quincy in the Suez Canal.

Fuel Freedom Staff

Gas prices start to rise again, and drivers notice

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Oil Gas prices are on the rise again, and consumers, who barely had time to enjoy their savings over the past few months, are taking notice.

“It’s still low by our standards,” Pete Diaz of San Jose told the Mercury News. “I’m not complaining — yet.”

Diaz paid a little less than $2.20 a gallon when he filled up Friday at an ARCO. That was actually a bargain: On Monday, according to AAA’s Daily Fuel Gauge Report, the average in San Jose was $2.636 for regular gas, up from $2.443 a week earlier.

The national average Monday was $2.177, up from $2.056 a week earlier.

Los Angeles-based Gas Buddy reports that, over the last week, the proportion of stations selling gas for under $2 a gallon has shrunk from more than 50 percent to 27 percent.

Stories are popping up all over the country about rising gas prices: from Maine to New Jersey to Texas to Arizona.

Oil prices dropped by 60 percent between June and January, a trend analysts spectacularly failed to predict. But in a four-day span between Jan. 30 to Feb. 3, oil surged 18 percent.

Gasoline prices, in turn, went up in an instant, a clear example of the market volatility that makes it nearly impossible to plan household budgets, much less a career. The latest round of job cuts was just announced by Weatherford International, one of the world’s largest oilfield services companies. It will lay off 5,000 employees, 85 percent of them in the United States.

Prices might keep on rising. Major media outlets reported Monday that oil was still on the rise, based on OPEC forecasting higher demand in 2015.

Other factors contributing to the price increase include:

  • The looming seasonal switch to “summer blends” of gasoline. As Gas Buddy notes: “As air temperatures warm, refineries also begin the progressive switch to cleaner variations of gasoline, which also adds to cost.”
  • Refineries are undergoing maintenance to prepare for the summer switch.
  • Refinery workers around the country are striking for better health benefits. It’s the largest such walkout since 1980.

Now it’s your turn to tell your story. How does the day-to-day price of gas affect you and your business?

 

Fuel Freedom Staff

Hot Rod explains why race-car drivers love methanol

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Methanol has been a preferred fuel for race-car drivers and teams for decades, for various reasons.

In the movie PUMP, racing teams explain that the lower cost, compared with gasoline, is a big selling point. The footage, which depicts the 91st running of the Race to the Clouds on Pikes Peak, in Colorado, in 2013, includes an interview with one mechanic who says his crew has been running on methanol for 19 years. “It’s just a much better fuel for racing,” he says.

We could go on about the safety of methanol — it burns cleaner than gasoline, is less flammable and burns “cooler” — but come on. What really gets the gearheads salivating is the pure power of methanol.

Methanol has less energy content than regular gasoline, so vehicles get about half the mpg out of the fuel. But it has a higher octane.

As the smart people at Hot Rod magazine explain, race-car engines are built to squeeze more power out of that less-energy-dense methanol, by adjusting the air-to-fuel ratio.

While it’s true that gasoline has a higher energy density (about 18,400 BTU/pound) than methanol (9,500 BTU/pound), if you can burn three times more methanol than gasoline per power stroke, you can make more power. An engine that flows 1,000 cfm of air (about 70 pounds worth) means that on gasoline, the engine will consume about 5.6 pounds of fuel based upon its 12.5:1 max power ratio, giving a total energy output of (5.6 pounds x 18,400 BTU) or 103,040 BTUs of energy. If we do the same calculation on methanol, we get 17.5 pounds of fuel burned, and (17.5 pounds x 9,500 BTU) or 166,250 BTUs of energy—that’s a 60 percent greater energy output.

These folks have forgotten more about engines than most people will ever know, so here’s some more knowledge: Methanol is the better fuel at conserving heat inside an engine. With gasoline, more of that heat is wasted.

Gasoline, when it undergoes a phase change can suck out about 150 BTUs of heat energy per pound of fuel, which results in a temperature drop. Methanol, on the other hand, takes 506 BTUs per pound of fuel of heat energy to make the phase change. When we look at our above example of an engine flowing 1,000 cfm of air, the 5.6 pounds of gasoline will take about 840 BTUs of energy, versus 8,855 BTUs for methanol—more than 10 times as much. This is what makes methanol such an effective fuel in forced-induction applications like turbocharging and supercharging, and it absorbs so much heat that an intercooler often isn’t even needed.

Arctic Leaf

Will renewables survive the oil downturn?

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The seven-month-long plunge in oil prices appeared to be enough to re-establish gasoline as the default fuel for motorists, while stunting the progress of replacement fuels.

But attendees at last month’s North American International Auto Show in Detroit would have thought differently. Prominently displayed were various alternative vehicles that have been making headway and are just building momentum in the auto market, so they may be able to shrug off the precipitous fall in oil prices.

Also exhibited in Detroit was the first generation of hydrogen vehicles from Japan, which are challenging both the gasoline monopoly and the electric car, which is much more popular in America and Europe. The Honda FCV concept car boasts a driving range of about 300 miles and a refueling time of just three minutes, marking another step forward for the hydrogen fuel industry. California, where the cars are to be introduced later this year, is already preparing its “hydrogen highway,” which will make the cars feasible for drivers. Toyota’s fuel-cell offering, the Mirai — which also runs on hydrogen — is also scheduled to hit showrooms this year.

Chevrolet has had middling success with its electric-gasoline hybrid the Volt, but the maker has another generation planned with its concept car, the Bolt. The car will be made of extremely lightweight material and will have an all-glass roof and aluminum wheels for further weight reduction. Its lithium-ion battery will give the car a range of 200 miles and a recharging time of 40 minutes for an 80 percent charge. The price of $30,000 is likely to expand the market for electric cars.

Analysts note that oil is not used much for electricity anymore. The 1980s are the benchmark and generally remembered as the “Valley of Death” for renewables. Wind and solar were undercut by falling oil prices and lost their place in the generation of electricity. At the time, oil was providing 17 percent of our electricity. Now it provides barely 5 percent, and wind and solar energy have not felt any effect from oil prices.

Of course, natural gas has largely replaced oil, and a drop in gas prices could cut into the advance of renewables. Gas prices have traditionally been between one-sixth and one-twelfth of oil prices but have uncoupled themselves in recent years. This could work both ways, since gas prices have not fallen by the same degree that oil prices have.

Gas still holds its edge, however, and this means the attempt to use natural gas as an oil substitute may not slow. T. Boone Pickens has had some success in switching long-haul trucks to compressed natural gas, and this effort may be slowed only a little by gasoline’s new low price. However, if natural gas prices fall as well, then it may be able to keep pace with lower oil prices. The possibility that cheaper natural gas might encourage the conversion to methanol as a gasoline substitute would also be encouraged by falling natural gas prices.

That leaves the big question of whether ethanol can survive in the face of falling gasoline prices. In the first place, low gas prices are not likely to last forever. Some analysts are predicting crude oil prices will probably bounce back to $75 a barrel in the near future. Second, ethanol is protected by the federal mandate that says each gallon must contain 10 percent ethanol. If falling gas prices encourage the purchase of more gasoline – which it already has – then ethanol consumption must climb as well.

Ethanol has been under fire recently from studies that say it competes with food resources. The latest is a report from the World Resources Institute in Washington, which argues that “There are other, more effective routes to get to a low-carbon world.” But the rapid development of cellulosic ethanol severely reduces the possibility that ethanol will compete with food crops. And the possibility that natural-gas-based methanol might begin substituting for ethanol makes the threat of competing with food crops even less.

Altogether, it appears that renewable energy and alternate vehicles are going to survive the dramatic fall in oil prices. Alternative vehicles and other related technologies are now too far along to be crushed by falling oil prices the way they were in the 1980s.

(Photo: The Toyota Mirai at the Los Angeles Auto Show in November. Credit: Vision Automotriz, Flickr)

Fuel Freedom Staff

Officials work to clean up ethanol spill in Iowa

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UPDATED 2:21 p.m. PST Friday. Officials say it’s unclear how much ethanol has spilled into the Mississippi River following a train derailment about 10 miles north of Dubuque, Iowa. The 81-car train derailed on Wednesday morning, and 15 cars left the tracks in a remote, wooded area inaccessible by road. Crews had to build a temporary road to reach the site. Eight of the 14 cars that were carrying ethanol appeared to be leaking, and crews were working to minimize the impact on the river, and to wildlife, Canadian Pacific said. Fox Business reports:

“We have verified some ethanol has reached the water but we do not have an estimate of how much,” said CP spokesman Andy Cummings, who was at the scene Thursday. Ethanol mixes with water and, in high concentrations, can deplete the oxygen in water and kill fish, said Iowa Department of Natural Resources spokesman Kevin Baskins. He noted the impacted segment of the river was within the Upper Mississippi National Fish and Wildlife Refuge. Baskins said the primary concern is the threat to fish and other aquatic life, such as mussels, which can’t easily move away when oxygen levels dip. The DNR plans to sample fish collected from fishermen and monitor open-water areas in the largely iced-over river for signs of dead fish.

Ethanol is an alcohol fuel made primarily from corn, but it can also be processed from any other plant high in sugar content. It’s fermented in a distillery, and in the past it was commonly known as “moonshine.” The ethanol being transported was denatured, meaning it contained toxic additives to discourage human consumption. Such spills involving crude oil have tended to have more environmental impact. The Renewable Fuels Association points out in a report on the dangers and cleanup protocols for ethanol spills:

Ethanol is less toxic than gasoline. Carcinogenic compounds are not present in ethanol. … The biggest difference between ethanol and hydrocarbon fuels is the water solubility. This property changes how ethanol will react in the environment, including surface and ground water, and soils. The complete solubility of ethanol in water means that if a release reaches surface water, the ethanol will rapidly disperse and can no longer be recovered as a product. … Ethanol in surface water will rapidly biodegrade. The concentration of ethanol can create a toxic effect on aquatic organisms, though frequently the depletion of dissolved oxygen caused by biodegradation has a greater impact to fish and aquatic organisms.

As production of U.S. oil skyrocketed the past few years, much of it from large shale-rock formations in North Dakota and Texas, more oil needed to be transported through America’s rail system. There has been a series of derailments and fires, most notably the inferno in Quebec that killed 47 people 2013. Much of the spotlight has shone on the aging DOT-111 fuel-tanker rail car that’s been in use for decades. That was the model of car used on the Iowa train that derailed. Reuters reported:

The incident is likely to add to a debate about transporting flammable goods by train after a series of fiery accidents involving crude oil cargoes in recent years. The U.S. Department of Transportation has proposed new safety features for new tank cars transporting fuel and called for the phasing out of older cars considered unsafe. The U.S. ethanol industry has pushed back on the new rules, saying regulators should distinguish between corn-based biofuel and crude oil. Ethanol is less volatile than crude oil, is biodegradable and has a 99.997 percent rail safety record, according to the national Renewable Fuels Association.

 

Fuel Freedom Staff

WSJ shows how oil analysts keeping getting it wrong

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It’s amusing to see analysts at high-powered, influential financial-services companies continue to predict what oil will do, following its 55-percent plunge from June to early February.

Here’s a news flash: Nobody knows what it’s going to do: whether the price will spike again, and if so, by how much. They were wrong in the last half of 2014, and some of them are sure to be wrong even as we speak.

The Wall Street Journal’s Alexandra Scaggs looks into specifics ($$), leading with the recommendations of Raymond James & Associates analyst Pavel Molchanov. In late November, with oil already down 30 percent from June, he issued a report saying oil prices and energy stocks were “within weeks of bottoming.”

He and his colleagues maintained the equivalent of a “buy” recommendation on Houston energy producer Southwestern Energy Co., also down about 30% since June. … More than two months after Mr. Molchanov made that call, it is clear he and many other analysts were wrong. Nymex crude prices and Southwestern Energy’s stock each have fallen more than 20% since Thanksgiving.

What does Molchanov say now?

“It’s a little late in the game to downgrade stocks on oil going down, because oil’s already gone down,” said Mr. Molchanov. But “commodity prices are almost impossible to predict in the short run.”

As the story notes, often analysts have waited until very late in the game to recommend against holding energy stocks. Molchanov’s colleagues at Raymond James didn’t downgrade Southwestern Energy’s stock until Jan. 6.

Reed Choate, portfolio manager at Neville, Rodie & Shaw of New York, says: “Analysts are always optimistic.” But “this was a big miss.”

Arun Jayaram, an analyst for Credit Suisse Group AP, added: “In an ideal world, as an analyst you anticipate moves.” But “it’s difficult.”

You’d figure that such analysts, chastened by their bad moves, would be a little less enthusiastic. Nope.

Mr. Molchanov of Raymond James thinks the sector could begin a lasting recovery in the second half of this year. The firm forecasts Nymex crude will sell for an average $62 a barrel this year. “The recovery will take time,” he said. “Then, naturally, there’s going to be a bounce in most oil stocks.”

Maybe. Oil has certainly climbed back upward a bit the past week, but it could just as easily slip back as march upward.

What consumers need, instead of expensive guesses and uncertainty, is a steady cost structure they can count on when they build their household budgets. And the best way to achieve that kind of stability is by introducing choice into the transportation-fuels market.

Fuel Freedom Staff

Why are the Koch brothers buying up ethanol plants?

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Flint Hills Resources, a biofuels company owned by the corporation controlled by brothers Charles and David Koch, has purchased its seventh ethanol plant.

This week Flint Hills completed its acquisition of the plant near Camilla, Ga., from Southwest Georgia Ethanol. According to Flint Hills’ press release, the plant produces about 120 million gallons of ethanol a year and employs about 60 people.

As the Wichita Eagle notes, Flint Hills is now one of the largest ethanol producers in the country. Its biofuels business …

… has a combined annual capacity of 820 million gallons of ethanol, a biodiesel plant and investments in biofuels technology and feedstock development.

Considering that the entire ethanol industry produced 13.3 billions of fuel in 2013, Flint Hills now controls 6.2 percent of the U.S. market. Pretty substantial for an enterprise owned by Koch Industries, which  made the bulk of its vast fortune on oil.

The Kochs are hardly greenies. According to a Rolling Stone story from last September:

Thanks in part to its 2005 purchase of paper-mill giant Georgia-Pacific, Koch Industries dumps more pollutants into the nation’s waterways than General Electric and International Paper combined. The company ranks 13th in the nation for toxic air pollution. Koch’s climate pollution, meanwhile, outpaces oil giants including Valero, Chevron and Shell. Across its businesses, Koch generates 24 million metric tons of greenhouse gases a year.

A 2011 story by the Center for Public Integrity contends that while oil is the “core of the Koch business empire,” its influence extends much further.

Koch companies trade carbon emission credits in Europe and derivatives in the U.S. They make jet fuel in Alaska from North Slope oil, and gasoline in Minnesota from the oil sands of Canada. They raise cattle in Montana and manufacture spandex in China, ethanol in Iowa, fertilizer in Trinidad, nylon in Holland, napkins in France and toilet paper in Wisconsin.

Since federal guidelines call for a certain amount of ethanol to be blended into the nation’s gasoline supply, investing in ethanol might be a simple hedge, the story says.

“New or emerging markets, such as renewable fuels, are an opportunity for us to create value within the rules the government sets,” Flint Hills Resources President Brad Razook told his employees …

Fuel Freedom Staff

Oil has jumped $9 in the past four trading sessions

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It might not yet be the “snap-back” we’ve been talking about for some time — that inevitable climb back upward after a seven-month downward spiral — but the price of oil has shot up 19 percent across the last four trading sessions.

So maybe start preparing to say goodbye to those savings you’ve been pocketing at the pump every week or two.

Brent crude LCOc1, the international benchmark, rose $3.16 (about 6 percent) to $57.91, and U.S. crude CLc1, West Texas Intermediate, rose $3.48 (7 percent) to $53.05.

The four-day surge is the biggest such gain since January 2009.

As Reuters reports:

The rally began on Friday, when oil services firm Baker Hughes said the number of U.S. oil drilling rigs had its biggest weekly decline in nearly 30 years.

Of course, that could mean further job losses in the U.S. oil-production sector. Baker Hughes last month announced plans to layoff 7,000 employees, or 11 percent of its workforce, because a global oversupply of oil pushed down prices and made expensive-to-extract American oil less profitable.

Fuel Freedom has argued that American workers, as well as consumers, need cheap fuel prices for the long-term, instead of the job-killing rollercoaster of volatility that’s inherent in the oil market. The solution is to displace some of the oil we consume with cleaner-burning, cheaper fuels like ethanol and methanol.

John Hofmeister, the former president of Shell Oil and a star of the documentary PUMP, has said that the oil price plunge is an “anomaly,” and has warned of a price “snap-back” based on the reduction in U.S. drilling. Last month he told CNBC: “The more consumers enjoy the price production, the sooner we’ll be headed back to higher crude-oil prices. That’s the reality.”

As Reuters explained, oil didn’t just spike in a vacuum. Tuesday’s jump came after the dollar fell about 1 percent against other currencies, the dollar’s biggest one-day drop since October 2013. This had the effect of elevating the value of oil and other commodities.

Despite the four-day rally, some traders doubt that the selloff in oil was over, citing last week’s build in U.S. crude stockpiles as evidence. A U.S. refineries strike also stretched into its third day on Tuesday, weakening the picture for crude.

The Wall Street Journal reported that “few investors and analysts are willing to call a bottom to a downdraft that began in July, the magnitude of which caught many market experts by surprise.”

 

Fuel Freedom Staff

More attention paid to all the natural gas we’re wasting

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Energy experts are starting to pay more attention to an important byproduct to U.S. oil extraction: the incredible amount of natural gas that gets burned off into the atmosphere, or “flared,” because it’s not profitable enough to capture at the well head.

Forbes contributor Michael Kanellos is the latest to examine the absurd practice, writing:

… the sheer volume of gas that gets flared or emitted into the atmosphere t remains truly astounding. A potential source of profits and jobs is literally transformed in bulk into an environmental hazard and potential liability around the clock.

It’s an environmental hazard because natural gas is made primarily of methane, a greenhouse gas that’s many times worse for the environment than carbon dioxide. Some methane leaks from wells and pipelines, but even when the gas is burned off, it creates some GHG emissions.

Methane has tremendous potential as a commodity, however, because it can be turned into alcohol fuels — ethanol and methanol — to run our cars and trucks. Both fuels burn much cleaner in engines, and can be cheaper for the consumer.

When the price of oil was $115 a barrel, there was little incentives for oil drillers — who put bits in the ground mainly for oil, after all — to capture and store the natural gas, because gas remains stuck in the cellar in terms of pricing. Now that oil has dropped by 60 percent over the past seven months, maybe U.S. drillers will be incentivized to keep more of the gas that comes up in the wells.

(Our blogger William Tucker has written about the flaring issue before. It’s also discussed, along with many oil-related issues, in the documentary PUMP, which is available for download on iTunes now.)

Landfills also emit methane, and much of that is flared as well. If we captured more methane and turned it into fuel, there would be more of a market for it, and the infrastructure for converting it to fuel and distributing it would grow. A whole new generation of jobs could be created in the sector, jobs that by their nature would stay in America.

Kanellos has compiled many fascinating statistics about how much natural gas is wasted by flaring, including these nuggets:

  • Since the beginning of 2010, more than 31% of the natural gas in the Bakken region has been burned off or flared. It was worth an estimated $1.4 billion.
  • Over 150 billion cubic meters, or 5.3 trillion cubic feet, get flared annually worldwide, or around $16 billion lost.
  • Flaring in Texas and North Dakota emit the equivalent amount of greenhouse gases as 500,000 cars.

Related:
Dispute flares over burned-off natural gas (WSJ)

Fracking boom waste: Flares light prairie with unused natural gas (NBC News)

Natural gas flaring in Eagle Ford Shale already surpasses 2012 levels of waste and pollution (Fox Business)