On Tue, 25 Sep 2001, you wrote: > In [6012] Rakesh quotes from Chibuzo Nwoke's Third World Minerals and > Global Pricing (Zed, 1987): > > > "The actual world market price of crude oil is thus governed by the > > individual price of coal production and the great demand for coal in the > > world energy market <snip, JL> This reward, or increasing > > shares of absolute rent, could be obtained if the OPEC organization > > priced oil just below the price of the cheapest substitute for oil, that > is, > > coal. > > Coal is not a substitute for oil. > > E.g. oil-heated factories and homes can not converted to coal unless there > are new furnaces and exhaust systems; cars, trucks, boats, and ships powered > by gasoline or diesel oil can not be powered with coal; kerosene lamps and > stoves, etc. can not be powered by coal; plastic and fiberglass products, > which are oil-derivatives, can not be derived from > coal; etc. Coal is a potential substitute for oil in electricity generation, and in cases where oil is in short supply it acts as a feedstock for gasoline and plastics production - see germany in the 40s or South Africa in the 70s. > > In solidarity, Jerry -- Paul Cockshott paul@cockshott.com
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