Biggest One-Day Oil Price Jump in History

Source: AP/Yahoo! News
September 22, 2008

Oil prices jumped more than $25 a barrel Monday – the biggest one-day price jump ever – as anxiety over the U. S. government’s $700 billion bailout plan and the weak American dollar continues. Crude oil for October delivery jumped as much as $25.45 to $130 a barrel on the New York Mercantile Exchange before falling back to settle at $120.92, up $16.37. Crude oil’s previous one-day price jump of $10.75 a barrel, set June 6 of this year, showed the intensity of emotion in the stock market. The Nymex temporarily halted electronic crude oil trading after prices breached the $10 daily trading limit. (Trading resumed seconds later after the daily limit was increased.) The November crude contract, which became the front-month contract at the end of Monday’s session, was trading at $108.69, up $5.94, still a sharp gain. Crude oil prices have gained about $30 a barrel in a dramatic four-day rally. At this rate, crude is within striking distance of its all-time record of $147.27, reached in July.

Oil’s sharp gains came as energy traders grappled with the implications of the government’s proposed $700 billion initiative to stem the U.S. financial crisis by absorbing billions of dollars of banks’ bad mortgage-related securities. Anxiety over the plan also sent stocks sharply lower Monday; the credit markets were calmer than they were last week, but still showing the effects of investors’ nervousness. There is still a great deal of uncertainty about what long-term impact the U.S. rescue plan will have on energy demand. Oil’s peak prices in July and a weak U.S. economy has forced Americans to cut back on their driving and recreational use of bulk motor oil, also leading business to scale down operations.

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A Brief History of Evinrude

Evinrude is a leading brand of outboard boat motors founded by Ole Evinrude in 1909, who designed his first two-cycle, water-cooled, forward-facing, single-cylinder engine that year. After improvements were made to Evinrude’s design, the motor went into production. The business changed hands a number of times over the years, and in 1936 became the Outboard Marine and Manufacturing Company after acquiring Johnson Outboards. Evinrude made motors for the armed services during WWII which were sometimes used to power rubber emergency rafts. When the war ended, Evinrude enjoyed great prosperity and continued to introduce new engines.

Evinrude is owned today by Bombardier Recreational Products, who also owns the Johnson Outboards brand. Evinrude outboards primary use two-stroke engines and 2 stroke oil in their larger models using 40 horsepower or above and four-stroke engines in most of their smaller models. Until the late 1990s, Evinrude outboard motors used carburetors, but advances in fuel injection technology prompted the adoption of E-Tec direct fuel injection, which improved fuel efficiency, reduced emissions, oil usage, noise levels and maintenance demands. Doubtless inspired by the company, Evinrude the dragonfly was a featured character in the Disney film “The Rescuers”, where he used a leaf as an airboat in several pivotal scenes.

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What is a Sterndrive?

mercury oil A sterndrive, or stern drive, is a form of boat propulsion also known as inboard/outboard or I/O. The upper unit engine is located inboard, just forward of the boat stern, producing power by way of a shaft that goes through the stern to the lower drive unit (also known as the outdrive) located outside the hull, which resembles the bottom half of an outboard. The lower drive unit carries the boat propeller and contains gearing for the engine system. This unit controls the steering of the boat, as with an outboard motor. No rudder is necessary. The sterndrive engine itself is usually the same as those used in true inboard systems. The most popular sterndrive engines have historically been Chevrolet and Ford V-8 car engines that have been adapted for marine use. The most popular brand of sterndrive is Mercruiser by Mercury Marine, who also manufactures outboard motors and Mercury oil. Advantages of the sterndrive versus the outboard include higher available engine horsepower, a clean stern with no cutouts for outboard motor installation and no protruding powerhead, making for easier egress and ingress for pleasure boat passengers and more convenient fishing. Advantages of the sterndrive system versus outboards include simpler engineering for boat builders and space savings with engines mounted all the way aft, allowing more occupancy space for the boat’s passengers. Performance with sterndrives is better than inboards, due to the inherent loss of force with inboard propellers due to the angle of the prop shaft.

The main disadvantages of sterndrives versus inboards is that their components–namely oil lines, hoses, and rubber bellows, some of which are in the water–are more vulnerable to corrosion and damage from being exposed to the elements. Maintenance on sterndrives is more complex than outboard maintenance in several ways. Sterndrive oil changes may necessitate complicated pumping mechanisms, and engine repairs are often difficult to perform due to tight engine compartment spaces. In some sterndrive boats, the entire engine must be removed to perform even simple repairs, whereas with an outboard motor, only removal of the cover is necessary. With both inboards and sterndrives there are fire and explosion hazards from fuel vapors within the engine compartment. It is recommended that these boats run a blower for several minutes prior to starting the engine, while idling, or moving below cruising speed. The blower circulates the fresh outside air inside the engine compartment and vice versa. Sterndrives have become sought after for use in pleasure boating due to their practical advantages and attractive costs, and there are many current boat product lines that include models for which sterndrive power is the only option for available propulsion.

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What is the EPA?

The U. S. Environmental Protection Agency is known as the EPA or sometimes USEPA. It is a federal governmental agency whose mission is to protect human health and take care of the natural environment, specifically air, water, and land. The EPA was the idea of President Richard Nixon and began operation in 1970, when it became solely responsible for United States environmental policy. It employs from 17,000-18,000 people, including engineers, scientists, environmental protection experts, and divisions specializing in law, public relations, financial matters, and computer specialists. The agency performs environmental assessment, research and education and is responsible for designation and enforcement of national standards while following various environmental laws in cooperation with state, tribal, and local government. The EPA allows some permissions and enforcement to be granted to individual U. S. sates and Native American tribes. EPA enforcement powers include sanctions, fines, and other measures. The EPA also works with all levels of government and various industries in voluntary measures to conserve energy and reduce the effects of pollution. Prior to the EPA’s existence, the federal government was not capable of the monumental task of regulating pollutants which caused harm to humans and the environment, so the EPA was given the task of repairing some existing environmental damage retroactively as well as establishing new criteria to promote the participation of America’s citizens in the making of a safer and cleaner country.

Part of the EPA’s job is to prevent oil pollution by regulating containment, promoting spill prevention, and approve of marine engine oil components to ensure they are as environmentally friendly as possible.

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Two-Cycle Oil Certification

Yamaha 2m oil Yamalube oils are of such high quality that they often end up used as the standard test oil for many of the National Marine Manufacturers Association (NMMA) TC-W3® certifications. The long-term goals of the two-cycle outboard boating engine industry have been to reduce emissions from oil that has passed through engines, developing a quality of oil that reduces the necessary ratio of oil to fuel, and ultimately prolonging the life of the engine. When these goals are achieved, emissions are significantly reduced, which satisfies or exceeds EPA requirements. There are also less warranty and maintenance issues with customers in the long run. TC-W3® lubricant is an NMMA owned trademark. Evolving through the years with the help of exhaustive testing and research, it has not only proven to be the level of lubrication performance quality required, but has consistently exceeded EPA emissions reduction requirements as two-cycle outboard engines have moved toward higher cylinder temperatures and compressions and increasingly demanding conditions. NMMA sanctions only two cycle lubricants that meet or exceed stringent regulations in their own designated laboratories. Tests include a variety of performance-based measurements for fluidity, lubricity, viscosity, carbon buildup on engine pistons, and ring sticking. The chemical makeup of the TC-W3® oils vary due to the unique additive packages incorporated into each individual oil brand. TC-W3® oils are recognized worldwide as being recommended for use by two cycle oil makers.

Yamaha 2m oil is a NNMA TC-W3® approved 2 cycle oil formulated for extreme performance and the most grueling conditions your outboard motor will face. It surpasses the TC-W3® requirements for outboard motor oil formulations, preventing varnish and wear, providing maximum rust and corrosion protection, and is versatile, appropriate for extended full-throttle, extended trolling, or everyday operation use. Since Yamaha 2m oil is formulated especially for outboard motors, it is not recommended for WaveRunner or sport boats.

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Coast Guard Contains Oil Leak off California Coast

Coast Guard and California Department of Fish and Game officials responded to an emergency Monday morning that involved a leak of marine engine oil into Humboldt Bay, Calif., just inside of the Pacific Coast.

The leak came from a large wooden-hull boat tied to a dock in the town of Fields Landing. Coast Guard and Fish and Game officials were on the scene in roughly 30 minutes to contain the spillage, which involved the use of absorbent pads and a diver being sent down to patch up the source of the leak.

Officials said they had the situation under control and damage to the bay was kept at a minimum, though residents said they noticed a rainbow-colored sheen on the surface of the water. Authorities said the effects on the area’s wildlife were not clear. The name of the owner of the boat was not released.

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Hurricane Ike Takes its Toll on US Oil Prices

oil production Just as consumers were starting to breathe easier, gas prices took a huge hit as Hurricane Ike slammed into the Gulf Coast over the weekend. Areas hardest-hit by the sudden and steep increase included Michigan, a state already riddled with economic hardships in Detroit.

Statewide gas price averages in Michigan are now $4.17, which is $1.17 higher than they were a year ago, and 33 cents higher than the current national average. Hurricane Ike’s wake left 10 offshore oil platforms destroyed, and 13 refineries were idled in the state of Texas. Those refineries amount to roughly 21 percent of the nation’s total, and a significant overall chunk of domestic bulk oil production.

However, this spike in gas prices is expected to be very short-term, as the price of oil is on a continuous decline. The price of crude oil was trading at $96.80 this morning, down more than $45 from its pinnacle price in July.

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Change Your Oil, Protect the Environment

The amount of motor oil used in a simple car oil change can contaminate up to one million gallons of water if improperly disposed of. Even still, an estimated 185 million gallons of used motor oil each year is dumped on the ground, poured down storm drains and thrown in the trash. This is why it’s important to know how to dispose of your motor oil after changing it.

You can not only help the environment by doing this, but you can also conserve resources. Take your used oil and filter to the used oil collection center nearest you, and you’ll be doing Mother Nature a huge favor. If your community doesn’t have a used oil collection center, check for an alternative location. These are often found at lube-and-tune centers, repair shops and dealerships.

The US Department of Energy recently determined that over 80 percent of used motor oil that comes as a result of do-it-yourself activities – including oil changes – is improperly disposed of.

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Is Ethanol Cleaner Than Traditional Gas?

Q: What are the exhaust emissions of straight gasoline, and how do they compare to those from gas with ethanol?

A: Ethanol is being used to reduce the amounts of tailpipe emissions and therefore plays a role in controlling air pollution. And though ethanol is being promoted by the Environmental Protection Agency as a cleaner-burning fuel choice, its actual impact on the environment is still largely unknown.

Gasoline containing as low as 10 percent ethanol can drop fuel mileage in cars, and can also harm engines that use two-cycle oil, such as chainsaws and weed-whackers.

However, evidence shows that ethanol evaporates more rapidly than gasoline, thus making it more volatile. The result of this chemical reaction is an increase in compounds that lead to the formation of smog, among other things.

Still, scientists disagree on the clean-burning effects of ethanol. Even the process of turning corn into ethanol takes energy that releases carbon monoxide into the atmosphere, even after the EPA ordered factories to install pollution-control equipment in 2002.

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Crude Prices Show Steep Decline

The Wall Street Journal is reporting that the price of oil took another hit today, stemmed by weakening demand and declining inventories.

A huge factor in this sudden drop-off is of course Hurricane Gustav’s impact on the Gulf Coast, home of 26 percent of the nation’s bulk oil production, and is further complicated with the imminent threat of Hurricane Ike. Ike is headed toward Texas now, and poses a danger to refineries in the Corpus Christi area.

Currently, oil prices are trading at their lowest price in five months, and look to fall below $100 a barrel in the foreseeable future. Experts remain divided on what this will mean for what long-term effects the market will suffer, but reports continue to show a sharp decline in demand for oil.

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The Mercury Trailer Boat at Rest

If your Mercury boat takes you into salt water, it is recommended that you park with the outdrive in the down position. This prevents barnacle formation on the bellows; if barnacles form, they can cut into the bellows and ultimately sink the boat. There have been many recent instances in the Midwest where beavers have eaten enough boat bellows to sink the craft and render it useless. If your Mercury outboard is stored in the sun with the outdrive down, it will also alleviate the effects of dry rot on the bellows.

Bellows should not have to be replaced more than once every five or six years, barring formation of a leak or hole. When performing preventative maintenance on the bellows, you may have more success with Mercury parts-they have a bellows kit-the Mercury shop manual, and/or Mercury’s Master-certified mechanics. There are special tools, a thread lock and a certain adhesive you will need for bellow replacement. Once all this is done and it’s time to go out on the water again, stock up on Mercury engine oil and happy boating!

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How Do You Dispose of Used Oil?

If all the used oil from people in the United States alone who changed their own oil were re-used and recycled, there would be enough motor oil from that population alone to power 50 million automobiles each year. The used oil from just one oil change can contaminate 1 million gallons of fresh water-a year’s supply of drinking water for fifty people.

During normal use of marine engine oil, impurities such as dirt, toxic chemicals, and heavy metal scrapings can mix in with the oil, causing it not to perform as well as it once did. Used oil must be replaced periodically to help machines run their smoothest. Used motor oil is slow to degrade, adheres to everything from bird feathers to beach sand, and is a major contaminant in waterways and is a potential pollutant of drinking water sources. On average, 4 million people reuse motor oil for other equipment or take it to a facility with recycling capabilities. Used motor oil from automobiles, motorcycles, farm equipment, and landscaping equipment, as well as boats, can be recycled. Recycled used motor oil can be reinvented as new oil, processed into fuel oils, and serve as raw materials for the petroleum industry. One gallon of used motor oil produces the same 2.5 quarts of lubricating oil as 42 gallons of crude oil can.

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