Tuesday, 8 July 2008
Petrol From Coal: Energy Crisis Solved
As oil heads to US$140 per barrel, many are looking towards alternative energy. One alternative source of energy is coal. Coal is often used to run turbines that generate electricity, but coal can also be used to produce petrol that runs our cars. The technology for generating liquid fuel from coal has been around for a long time. South African company Sasol can generate petrol from coal at a cost of US$45 per barrel, which gives a hefty profit in today's market. It is estimated that there is enough coal in America to produce petrol to last another 250 years. There is much talk about peak oil and limited supply, but this news deflates all those fears. There can be no doubt now that $140 oil is overpriced. What is needed for a price drop is for this technology to be available for the public. Once this is achieved, and assuming no collusion, competition among suppliers will drive the price of petrol down.