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53 comments on Oilwatch Monthly - November 2007

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peakearl on November 16, 2007 - 5:16pm Permalink | Subthread | Parent | Comments top

In term of worldwide production you are not correct. For example, our 2nd largest supplier of oil is Mexico. Their total production is of course added to worldwide production figures and the oil is delivered here and elsewhere. It shows up as supply. The products of that oil may then be used to farm for ethanol production. The resulting ethanol then is also added in its entirety to the worldwide liquids figure. No where is it shown as a net production figure.

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sofistek on November 17, 2007 - 6:55am Permalink | Subthread | Parent | Comments top

But the oil that went into production of the ethanol would then be extra consumption, thus cancelling out the ethanol production figure. So I still see no double counting. Am I missing something?

Consumption prior to 1 barrel of ethanol is X. Now that the ethanol is produced consumption is X+1. That's still the X that would have been consumed, plus the 1 that went into producing the ethanol. But we have 1 barrel of ethanol to add. So supply is now X+1, whilst consumption has leaped to X+1 also. No overall change from X consumption and X supply.

Net figures are not needed; it all works itself out in the supply and demand equation.

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53 comments on Oilwatch Monthly - November 2007

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