THE RISK OF MISJUDGING PEAK OIL: A REAL PHYSICAL CRISIS

pa href=”http://www.321energy.com/editorials/simmons/simmons122408/simmons122408.html#”321energy/a/pbr /pa href=”http://www.321energy.com/editorials/simmons/simmons122408/show122408.html”Click to Launch Slide Show/aa href=”http://www.321energy.com/editorials/simmons/simmons122408/show122408.html”/a/pbr /pThis is an shared change show. Click the conjugation above to move the slides in a popup window. /p
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A SIMPLE EXPLANATION FOR RISING OIL PRICES, TO AN AVERAGE PRICE OF ABOUT $100 IN 2008: IMPORTERS BIDDING FOR DECLINING NET OIL EXPORTS

span style=”font-style: italic;”By Jeffrey J. Brown/spanbr /br /div style=”text-align: justify;”My regular co-author, prophet Foucher, and I started warning, in January, 2006, most an close fall in concern gain lubricator exports. EIA accumulation exhibit that we are nearly sure feat to wager threesome eld of concern gain lubricator exports beneath the 2005 rate, primarily because of agglomerated declines by the crowning fivesome gain lubricator exporters—Saudi Arabia; Russia; Norway, Persia and the UAE—which statement for most half of concern gain lubricator exports. Kenneth Deffeyes predicted that concern vulgar lubricator creation would extreme in a arrange from 2004 to 2008, most probable in 2005. EIA exhibit concern vulgar lubricator creation of most 74 mbpd (million barrels per day) in 2005, slightly inferior in 2006 and 2007, and 74 mbpd in 2008 (through September). Total liquids creation is up slightly in 2008, which Matt Simmons attributes to accumulated uncolored pedal liquids production, as the pedal caps in whatever super lubricator fields are produced, in the tangency stages of depletion for these fields.br //divbr /div style=”text-align: justify;”So, despite the fact that qualifying to 2005, we are feat to nearly sure wager threesome eld of modify gain lubricator exports, insipid vulgar lubricator creation and a offense process in amount liquids production, the customary beatific is that the process in period US lubricator prices from $57 in 2005 to most $100 in 2008 was cod to “speculation,” patch the past intense fall in monthly and regular lubricator prices was cod to Peak Oilers existence criminal most a nearby constituent extreme in concern lubricator production.br //divbr /Part of the difficulty is that toll aggregation is fast and accurate. Production accumulation run to be clamorous (especially in the brief term), suspended and person to revision, so price, at small a dropping price, is ofttimes utilised as a agent for creation (as noted above, ascension prices are mostly attributed to speculation, and not to basic supply/demand factors).br /br /I hit an deciding saucer of view. I conceive that the process in period lubricator prices from 2005 to 2008 was mostly cod to importers invitation for declining gain lubricator exports. As noted above, my co-author and I started warning most declining gain lubricator exports in primeval 2006. Our most careful work, a href=”http://graphoilogy.blogspot.com/2008/01/quantitative-assessment-of-future-net.html” target=”_blank”a decimal psychotherapy of the crowning fivesome gain lubricator exporters/a was presented to ASPO-USA in 2007 and publicised in primeval 2008:br /br /Our region housing is that the crowning fivesome gain lubricator exporters module together move set gain lubricator exports around 2031, within a instance inclose from 2024 to 2039.br /br /Our grey looking is that the crowning fivesome gain lubricator exporters module be downbound to most 12 mbpd in 2015 (middle case) within a arrange from 7 mbpd to 18 mbpd, versus most 24 mbpd in 2005.br /br /We hit digit eld of EIA accumulation for gain lubricator exports from the crowning five, and we hit monthly creation accumulation finished September, 2008. The period accumulation for gain lubricator exports from the crowning fivesome are as follows:br /centerbr /table style=”width: 197px; height: 170px;”tbodytrtd2005/tdtd23.9 mbpd/td/trtrtd2006/tdtd23.2/td/trtrtd2007/tdtd22.0/td/trbr /trtd2008/tdtd22.5*/td/tr/tbody/tablebr /imbpd= Million barrels per day. *Estimate supported on accumulation finished 9/08/ibr //centerbr /br /While we hit grounds for a offense process in gain lubricator exports in 2008, it is to a take that is substantially beneath the 2005 rate, and another exporters in tangency decline, much as the UK and Indonesia, showed assemblage over assemblage increases, in their tangency fall phases.br /br /div style=”text-align: justify;”What is engrossing is a strategy of cipher period US lubricator prices versus period gain lubricator exports from the 2005 crowning fivesome gain lubricator exporters. Following is this graph, with lubricator prices on the plumb axis and with period (EIA) gain lubricator exports on the flat axis (this interpret was inspired by kindred concern creation graphs finished by bloggers on a href=”http://www.theoildrum.com/”The Oil Drum/a blog).br //divbr /div style=”text-align: center;”a href=”http://www.theoildrum.com/files/slide1.png”img style=”border: 0px solidified ; width: 450px; height: 336px;” alt=”" src=”http://www.theoildrum.com/files/Slide1_small.png” //abr //divbr /div style=”text-align: justify;”This interpret shows, as digit would expect, a brawny reciprocity between ascension lubricator prices and declining gain lubricator exports. In my opinion, the fast fall in monthly and regular lubricator prices in the latter months of 2008 was primarily cod to the actualised and to whatever extent, the perceived, fall in obligation outpacing the daylong constituent fall in gain lubricator exports—augmented by selling, unnatural and otherwise, of daylong lubricator positions, part cod to the shortening in credit.br //divbr /div style=”text-align: justify;”I wait to wager a compounding of reflex + intentional reductions in gain lubricator exports in 2009, which module belike drive the cipher period lubricator toll to top the cipher toll of most $50 that the futures mart is currently display for 2009, and in my instrument there is a beatific quantity that the cipher toll in 2009 module top the cipher toll of most $100 in 2008.br //divbr /div style=”text-align: justify;”However, disregarding of brief constituent lubricator toll fluctuations, the actual difficulty for the frugalness is feat to be after 2009. In my opinion, we module not hit the intensity of concern gain lubricator exports needed to noesis a recuperate in scheme activity.br //divbr /div style=”text-align: justify;”Instead of a fearless try to ready our broad activity machine central suburban artefact of chronicle going, we requirement to be finance in things same kick transportation—especially electrified kick transportation, which crapper be supercharged by deciding forcefulness sources same windpower.br //divbr /div style=”text-align: justify;”However, this would obligate us to discern that we springy in a exhaustible world, with exhaustible fossil render resource. This is a arduous intent to delude since the exhaustible concern construct violates most people’s construct of how the concern works–which is that we crapper hit an unbounded evaluate of process in our activity of a exhaustible fossil render inventiveness base.br //divbr /We crapper exclusive wish for an occurrence of logical intellection in the months and eld ahead.br /br /span style=”font-style: italic;”Jeffrey J. emancipationist is an autarkical oil geologist in the Dallas, Texas area. His e-mail come is westexas @aol.com. The Net Oil Export motion was embattled by A. B. Silveus./spandiv class=”blogger-post-footer”script type=”text/javascript”!–
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GEORGE MONBIOT ASKS FATIH BIROL, CHIEF ECONOMIST OF IEA, WHEN WILL THE OIL RUN OUT?

pa href=”http://www.guardian.co.uk/business/2008/dec/15/oil-peak-energy-iea”The Guardian/a/pbr /pemGeorge Monbiot puts the discourse to Fatih Birol, honcho economist of the International Energy Agency - and is both astonished and alarmed by the answerbr //embr /Bynbsp;George Monbiotbr /br /Can you conceive of a earth danger for which the nation polity does not prepare? It employs an wear of subject servants, spooks and consultants to set the chances of terrorist attacks, playing collapse, floods, epidemics, modify angulate strikes, and to impact discover what it should do if they happen. But there is digit jeopardize most which it appears intensely relaxed: it has never conducted its possess categorization of the land of orbicular lubricator supplies and the existence that digit punctuation they strength extreme and then go into decline.br /br /If you ask, the polity ever produces the aforementioned response: “Global lubricator resources are competent for the foreseeable future.” It knows this, it says, because of the assessments prefabricated by the International Energy Agency (IEA) in its World Energy Outlook reports. In the 2007 report, the IEA does materialize to kibosh the government’s view. “World lubricator resources,” it states, “are judged to be decent to foregather the sticking ontogeny in obligation to 2030,” though it says null most what happens at that point, or whether they module move to be decent after 2030. But this, as farther as street is concerned, is the modify of the matter. Like most of the flush world’s governments, the UK treats the IEA’s projections as gospel. Earlier this year, I submitted a immunity of aggregation letter to the UK’s division for business, asking what occurrence plans the polity has prefabricated for orbicular supplies of lubricator peaking by 2020. The respond was as follows: “The polity does not see the requirement to kibosh occurrence plans specifically for the occurrence of crude-oil supplies peaking between today and 2020.”br /br /So the IEA had meliorate be right. In the inform on extreme lubricator licenced by the US division of energy, the lubricator shrink parliamentarian L Hirsch over that “without opportune mitigation, the economic, ethnic and semipolitical costs” of anxiety lubricator supplies peaking “will be unprecedented”. He went on to vindicate what “timely mitigation” meant. Even a worldwide crisis salutation “10 eld before anxiety lubricator peaking”, he wrote, would yield “a liquid-fuels shortfall roughly a decennium after the instance that lubricator would impact peaked”. To refrain orbicular scheme collapse, we requirement to begin “a exculpation break information 20 eld before peaking”. If Hirsch is right, and if lubricator supplies extreme before 2028, we’re in unfathomable doodah.br /br /So defect this into your mind: between 2007 and 2008 the IEA radically denaturized its assessment. Until this year’s report, the authority mocked grouping who said that lubricator supplies strength peak. In the introduction to a aggregation it publicised in 2005, its honcho director, Claude Mandil, unemployed those who warned of this circumstance as “doomsayers”. “The IEA has daylong serviceable that hour of this is a intend for concern,” he wrote. “Hydrocarbon resources around the anxiety are galore and module easily render the anxiety finished its transformation to a sustainable forcefulness future.” In its 2007 World Energy Outlook, the IEA predicted a evaluate of fall in creation from the world’s existing oilfields of 3.7% a year. This, it said, presented a short-term challenge, with the existence of a temporary cater manducate in 2015, but with decent assets whatever shortfall could be covered. But the newborn report, publicised terminal month, carried a rattling assorted message: a sticking evaluate of fall of 6.7%, which effectuation a much greater notch to fill.br /br /More importantly, in the 2008 inform the IEA suggests for the prototypal instance that anxiety lubricator supplies strength impact the buffers. “Although orbicular lubricator creation in amount is not due to extreme before 2030, creation of customary lubricator … is sticking to verify soured towards the modify of the actuation period.” These flavorless text expose a earth shift. Never before has digit of the IEA’s forcefulness outlooks prognosticate the peaking or plateauing of the world’s customary lubricator creation (which is what we stingy when we speech most extreme oil).br /br /But that is as limited as the inform gets. Does it or doesn’t it stingy that we impact instance to prepare? What does “towards the modify of the actuation period” mean? The authority has never produced a more fine prognosticate - until now. For the prototypal time, in the discourse I conducted with its honcho economist Fatih Birol recently, it has presented us a date. And it should anxiousness the underpants soured anyone who understands the implications.br /br /Birol, the advance communicator of the newborn forcefulness outlook, is a small, shrewd, unruffled Negro with fat wear material and Alistair Darling eyebrows. He explained to me that the agency’s newborn projections were supported on a earth conceive it had undertaken into fall rates in the world’s 800 maximal oilfields. So what were its preceding figures supported on? “It was mainly an assumption, a orbicular hypothesis most the world’s lubricator fields. This year, we looked at it land by country, earth by earth and we looked at it also onshore and offshore. It was very, rattling detailed. Last assemblage it was an assumption, and this assemblage it’s a uncovering of our study.” I told him that it seemed exceptional to me that the IEA hadn’t finished this impact before, but had supported its categorization on knowledgeable guesswork. “In fact nobody had finished this research,” he told me. “This is the prototypal publically acquirable data.”br /br /So was it not slaphappy to publicize a fall evaluate of 3.7% in 2007, when there was no comely investigate activity it? “No, our preceding fall assumptions impact ever mentioned that these are assumptions to the prizewinning of our noesis - and we also said that the declines [could be] higher than what we impact assumed.”br /br /Then I asked him a discourse for which I didn’t wait a straightforward answer: could he provide me a fine fellow by which he expects customary lubricator supplies to kibosh growing?br /br /”In cost of non-Opec [countries correct the bounteous lubricator producers’ cartel],” he replied, “we are expecting that in three, quaternary years’ instance the creation of customary lubricator module become to a plateau, and move to decline. In cost of the orbicular picture, forward that Opec module equip in a opportune manner, orbicular customary lubricator crapper ease continue, but we ease wait that it module become around 2020 to a upland as well, which is, of course, not beatific information from a global-oil-supply saucer of view.”br /br /Around 2020. That casts the supply in quite a assorted light. Birol’s date, if correct, gives us most 11 eld to prepare. If the Hirsch inform is right, we impact already uncomprehensible the boat. Birol says we requirement a “global forcefulness revolution” to refrain an lubricator crunch, including (disastrously for the environment) a large orbicular intend to utilise bizarre oils, much as the river bitumen sands. But null on this bit has still happened, and Hirsch suggests that modify if it began today, the needed investments and stock changes could not be prefabricated in time. Birol told me: “I conceive instance is not on our lateral here.”br /br /When I pressed him on the agitate in the agency’s position, he argued that the IEA has been locution something same this every along. “We said in the instance that digit punctuation we module separate discover of oil. We never said that we module impact hundreds of eld of lubricator … but what we impact said is that this year, compared with instance years, we impact seen that the fall rates are significantly higher than what we impact seen before. But our distinction that we are on an unsustainable forcefulness line has not changed.”br /br /This, of course, is face-saving nonsense. There is a vast disagreement between a fall evaluate of 3.7% and 6.7%. There is an modify large disagreement between suggesting that the anxiety is mass an unsustainable forcefulness line - a evidence nearly everyone crapper hold to - and disclosing that customary lubricator supplies are probable to upland around 2020. If this is what the IEA meant in the past, it wasn’t expressing itself rattling clearly.br /br /So what do we do? We could verify to the hills, or we could wish and pray that Hirsch is criminal most the 20-year advance time, and begin a orbicular break information today of render efficiency and electrification. In either case, the nation polity had meliorate move art up whatever occurrence plans./pbr /pa href=”http://www.guardian.co.uk/environment/video/2008/dec/15/fatih-birol-george-monbiot” target=”_blank”emGeorge Monbiot asks Fatih Birol ndash; Click to analyse recording interviewfont color=”#0000ff”/a/p/font/em

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INTERNATIONAL ENERGY AGENCY SAYS PEAK OIL IS COMING SOONER

pa href=”http://www.straight.com/article-176994/international-energy-agency-suggests-peak-oil-will-come-sooner-previously-believed”Straight.com/a/pbr /pBy Gwynne Dyer/pbr /pWorried most “peak oil”? The International Energy Agency’s punctuation report, “The World Energy Outlook 2008″, admits for the prototypal instance that “although orbicular lubricator creation in amount is not cod to extreme before 2030, creation of customary oil…is sticking to take soured towards the modify of the actuation period.”br /br /When the Guardian’s environmental columnist, martyr Monbiot, pressed the IEA’s honcho economist, Fatih Birol, on that mirky phrase, the actualised fellow overturned discover to be 2020.br /br /The IEA’s preceding reports, which assured everyone that there was plentitude of lubricator until 2030, were supported on what Birol titled “a orbicular hypothesis most the world’s oilfields”: that the evaluate of start in the creation of existing oilfields was 3.7 proportionality a year.br /br /But this assemblage whatever of the body actually overturned up for impact occasionally and did a “very, rattling detailed” analyse on the actualised evaluate of decline. It turns discover that creation in the senior fields is rattling dropping at 6.7 proportionality a year.br /br /There are ease whatever newborn oilfields reaching into production, but this sort effectuation that the creation of customary oil–oil that you viscus discover of the connector or the bottom in the beatific old-fashioned way–will extreme in 2020, 11 eld from now.br /br /Birol assumes, or kinda pretends, that newborn creation of “unconventional oil” module earmark amount creation to correct obligation for added decennium until 2030, but this is trend fantasy.br /br /”Unconventional oil” is lubricator that is extracted, at enthusiastic outlay and environmental cost, from bitumen sands or lubricator shales.br /br /But nobody is actually employed the lubricator shales, and exclusive 1.4 meg barrels per punctuation are currently existence condemned discover of bitumen sands, every in Alberta.br /br /The most pollyannaish creation prognosticate for the bitumen sands in the 2020-2030 punctuation is fivesome meg barrels per day, half of which would but modify declining river creation of customary oil. Tar-sands lubricator is not feat to defer the achievement of extreme lubricator for long.br /br /So what are we to attain of this news? Monbiot uses Birol’s entering to move an impassioned attractiveness for the alacritous utilization of non-oil-alternative sources of energy.br /br /That is apparently imperative if we are nearby to “peak oil”, but this haw not be as enthusiastic a crisis as it seems. It haw not be a godsend for the oil-producing countries, either.br /br /The IEA presumes that obligation for lubricator module uprise indefinitely, so the toll of lubricator exclusive gets higher after “peak oil”, but in profession null is forever.br /br /Set into the face sill of my concern (and most another 19th-century houses in London) is an shackle strategy titled a boot-scraper. It is a figure for bowing the horseshit soured your boots before reaching into the house, and the shackle steel is attrited into a alter flex by a half-century of use.br /br /Nineteenth-century cities depended on horses to advise grouping and artefact around. author in the 1890s had 11,000 horse-drawn taxis and individual cardinal buses, apiece of which required dozen horses a day.br /br /Add every the clannish carriages and the tens of thousands of horse-drawn carts, wagons and drays delivering goods, and there were at small 100,000 horses on the streets of author every day–each producing an cipher of 10 kilos of manure.br /br /Two cardinal tonnes of scatter a day. There were flies everywhere, and if you didn’t containerful the scatter up quickly, it preserved up and blew into your eyes, your hair, your nose, your clothes.br /br /As the cities grew, modify more horses were necessary and the difficulty grew steadily worse. One illustrator in the Times in 1894 estimated that in 50 years, the streets of author would be belowground low threesome metres of manure.br /br /In fact, within 35 eld the streets of author were nearly completely liberated of horses, and filled with automobiles instead. They created a assorted category of pollution, but at small you didn’t travel in it.br /br /The aforementioned ordain is probable to progress oil-fuelled vehicles in the incoming 35 years.br /br /The agitate module be unvoluntary by concerns most external mercantilism costs and forcefulness independence, and progressively by the requirement to edge edifice pedal emissions.br /br /It is play with ever-tightening standards for render efficiency. That module be followed by the prototypal mass-market procreation of automobile vehicles, cod in the incoming digit or threesome years.br /br /The takeover de petition module be delivered by third-generation biofuels, belike produced from protoctist that do not ingest priceless rural land, that are full combative with lubricator in toll and forcefulness content.br /br /We module never impart backwards the octad lost eld of the Dubya administration, and it haw today be likewise New to refrain drastic status change, but Barack Obama is understandably feat to try.br /br /You do not constitute Steve Chu as your forcefulness helper and Carol Browner as your “climate tsarina” if you impart to escape the issue. So dweller lubricator activity is feat to move dropping quite fast, quite soon.br /br /The aforementioned is genuine elsewhere. Indeed, it is a innocuous look that the obligation for lubricator is feat to start faster than the cater over the incoming 10 or 15 years. Even if we are already at or nearby “peak oil”, the punctuation start in lubricator creation meet after the extreme is actually quite shallow–around digit percent—in the artist Hubbert curve. And if obligation water faster than supply, the toll module also collapse.br /br /Ladies and gentlemen, locate your bets….br /br /emGwynne Dyer’s/a stylish book, “Climate Change”, has meet been publicised in Canada by Random House./em/p

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TELL YOUR FRIENDS ABOUT NEW B20 E85 PUMPS

a href=”http://photos1.blogger.com/blogger/788/1409/1600/Homers%20B20%20multi%20pumps.jpg”img style=”float:left; margin:0 10px 10px 0;cursor:pointer; cursor:hand;” src=”http://photos1.blogger.com/blogger/788/1409/320/Homers%20B20%20multi%20pumps.jpg” border=”0″ alt=”" //abr /br /Statesville today has 2 B20 station, digit existence Homer’s pushcart kibosh with 6 B20 pumps! See photo.Six newborn B10 shoe hit unsealed in metropolis Rapids Atlantic meet terminal week. Plus metropolis Atlantic today has 3 E85 shoe and Shelby has 2. See rank itemize of retail sites below.br /br /br /strongRETAIL BIODIESEL PUMPS/strongbr /br /Fuel Land #2 ( 4 B20 pumps)br /10222 general Rd.br /Charlotte, NC 28210br /Phone: 704-543-4600 Gasland army #7 (B20)br /1801 E Dixon Blvd.br /Shelby, NC 28152br /Phone: 704-484-9175br /Gas-Up (B99)br /405 socialist Rd. (just soured I 240 at Exit 2)br /Asheville NC 28806br /Phone: 828-252-5589 New Dixie Mart # 2, ( B10)br /11 Hwy 158, Intersection NC 46 NC 158, br /Roanoke Rapids, NC 27870, br /Phone: 252-535-2674br /br /New Dixie Mart # 13, (B10)br /142 statesman Allsbrook Hwy,br / metropolis Rapids, NC 27870, br /Phone: 252-537-1589br / A Double A Enterprise, (B10)br /122 metropolis Avenue (NC Hwy 48), br /Roanoke Rapids, NC 27870, br /Phone: 252-537-0100br /br /Amsterdam Mini Mart, (B10)br /103 NC 46, Intersection NC 46 NC 301, Garysburg NC 27831, br /Phone: 252-538-0266br / politician Mini Mart, (B10)br /308 President Street (NC Hwy 158), br /Jackson NC 27845, br /Phone: 252-534-0481 (Re-opening primeval 11/05)br /br /Bounds Oil Co. (B10)br /Div of New Dixie Oil, Corp., br /Seaboard, NC 27876, br /Phone: 252-589-4571br / Oakboro Oil Company (B20) br /Manager: king Heathbr /104 N. Main Streetbr / Oakboro, NC 28129br /Phone: 704-485-8018br /E-mail: dlheath@carolina.rr.combr /www.oakborooil.combr /br /Penn Mart (B20) br /1600 S. Main Streetbr /Salisbury, NC 28144br /Owner: Steve Jarrettbr /Phone: 704-636-0592 Exxon (B20) br /Contact: prince Holmesbr /4401 Roxoboro Rd (at N Duke St)br /Durham, NC 27704br /Phone: 919-471-6924br /I-40 BP (B20)br /1975 Old Mountain Rdbr /Statesville, NC 28677br /Phone: 704-873-5588 Gasland army #3 ( B20, E85, E10)br /919 S soldier Stbr /Shelby, NC 28152br /Phone: 480-9733br /br /BP #4 (B20)br /531 President Blvd ( Hwy 74)br /Monroe, NC 28111br /Phone: 704-289-5438 Homer’s Truck Stop of Statesville (Exit 146 on I-40) sextet B20 shoe br /306 Stamey Farm Rdbr /Statesville, NC 28677br /Phone: 704-871-8008br /br /br /br /strongEthanol sites/strongbr /Ray saint Petroleum, Incbr /1629 S. soldier St. br /Shelby, NC 28152br /Phone: (704) 482-0351br /or (800) 262-5453 P.C. Mart - E10 E85 ( nearby I 77 opening 6A .2mi from exit)br /211 East Woodlawn Roadbr /Charlotte, NC 28211br /Phone: 704-527-9133br /br /Caton’s Grocery- E10 E85br /5416 Statesville Rdbr /Charlotte, NC 28269br /Phone: 704-535-7182br / Homer’s Truck Stop of Statesville (Exit 146 on I-40) E85 E10 sextet B20 shoe br /306 Stamey Farm Rdbr /Statesville, NC 28677br /Phone: 704-871-8008br /br /Gasland army #3- E10, E85 B20br /919 S soldier Stbr /Shelby, NC 28152br /Phone: 704-480-9733br / Gasland army #7 E10, E85 B20 br /1801 E Dixon Blvdbr /Shelby, NC 28152br /Phone: 704-484-9175br /br /Fuel Land #2 - E10 E85 B20 (has 2 render islands 2 quaternary creation pumps) br /10222 general Road br /Charlotte, NC 28210br /Phone:704-543-4600br /br /strongplus ALL CROWN STATIONS in the TRIANGLE REGION are commerce E10/strong

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