Oil 101
11 Jul 09 | Commentary, Environment, General, General BusinessBack in the mid 1980’s, there was a book that was all the rage called The Art of War, which had been written in china around the 6th century BCE by Sun Tzu. It might aptly be subtitled “Common sense for the military strategist.” One of the chapters deals with knowing your rival better than you know yourself.

To that end I purchased a book called Oil 101. It is, indeed, a fascinating book that details the complexity of our current energy structure. The book is an excellent primer on the oil industry, it is well written and easy to understand. Anyone who drives a car, uses oil to heat their house, uses plastics or any other petroleum product should read this book. That is to say, everybody should read this book.
What strikes me is how much effort is put into exploration, extraction, refining and shipping. We take all of this for granted in this country, but any failure in any one of those steps would create a disaster of epic proportions. Think Hurricane Katrina for the whole county. The fact that so much of this energy depends on technology, specialized methods, and huge capital outlays should be at least slightly alarming. That, and our entire economy is build on the availability of cheap energy. As we have just seen, economic down turns can really put a damper on large cumbersome corporate operations.
It may seem natural to be angry at the oil companies when gas is $4.25 a gallon and electricity is $.20 a kWh. However, when I read about all of the work and investment these companies have to make, all of the variables from bad weather to bad governments they have to deal with, it also makes me respect the oil companies for all that they do.
Tags: big oil


I enjoyed this book also. The book is jammed with so much information, but is still very readable.