BusinessEconomicsenergySupply Chain

Will we ever talk supply chain?

Now, for those of you that wonder when, if ever, I will talk about Supply Chain issues on this blog, let’s make this more of an ongoing discussion.

Obviously I have had an interest lately in fuel economy, and alternatives to the status quo. These are not driven simply by an altruistic vision of the future, but by rather practical personal and business considerations. Considerations that one can see in the supply chain. That said, I would like to invite your thoughts, in more of a conversational vein.

Perhaps you can share your thoughts on the impacts on supply chains of:

  • Local food producers gaining a foot-hold in the market
  • higher fuel prices as driven by crude oil prices
    • Consider off-shoring in this discussion. Labor prices drive production off-shore. Will fuel prices bring them back?
  • alternative, native-grown fuel sources
  • transportation routes devoted to moving crude oil
  • transportation networks designed to move grains and grasses
  • Economic impact of alternative fuel sources
    • If demand for fuel shifts to biomass, what would the impact be on crude oil prices?

I would recommend that you also visit the blog of “Imperfect Mommy” specifically where she outlines the benefits of local eating.

I look forward to reading your thoughts.

2 thoughts on “Will we ever talk supply chain?

  • Uh oh. I was not aware homework would be involved. Not sure if your typical readers are going to enjoy my thoughts (or my previous posts on such things as riveting as how to put on a gDiaper — although you might have incontinent, older readers who are environmentally conscious, who knows?).

    And as far as being an evangelist, color me Jerry Falwell. I’d like to think of myself as slightly more educated (and less INSANE) than the Willard Preacher, but I’m sure it’s all up for debate. Don’t ask my husband for his opinion, please.

  • Steve Swartz

    -Local food producers gaining a foot-hold in the market

    At my local Farmer’s Market I get produce from Latin America, sold by the “local” farmers. Then again, I do live in Texas . . .

    – higher fuel prices as driven by crude oil prices
    Consider off-shoring in this discussion. Labor prices drive production off-shore. Will fuel prices bring them back?

    Of course. For movement to occur, the total value increase of the movement must be greater than the total cost. As the cost of transportation goes up, the amount of trade will go down.

    – alternative, native-grown fuel sources

    Hmm that pesky physics again. Most “alternative” sources are actually net energy consumers. How much energy does it take to produce a gallon of ethanol? A lot.
    The real question is “What do you want to burn for the energy to create all of these alternative [sic] energy sources?”
    Ya gotta face up to break even at some point. My brother has been in the energy business for a logn time. He recently jumped over to one of the largest solar companies in the world. Interesting how many acres are needed per killowatt, and how much energy is needed to create/support the “free” solar energy . . .

    – transportation routes devoted to moving crude oil

    Since the pockets of available oil are moving around (trapped between upper and mid-mantle; oil welling up from basalt), this is actually a great issue.

    – transportation networks designed to move grains and grasses

    Why bother?

    Economic impact of alternative fuel sources

    An increase in the rate of energy entropy for our planet.

    – If demand for fuel shifts to biomass, what would the impact be on crude oil prices?

    Go up- as demand for oil would increase in order to make up for the inefficiencies of these feel-good net energy losers!

    (My little college town of 100,000 has to currently import biomass jsut to produce enough biodiesel to run 23 garbage trucks. We actually buy used cooking oil from Dallas . . . but those are shure purty lookin trucks!)

    Hey- Let’s All Switch to Hydrogen!

    =8^)

Leave a Reply

Your email address will not be published. Required fields are marked *