Acetic acid is formed only by the Acetobacter family of bacteria. These bacteria are found everywhere in food, water, and soil and is naturally produced as fruits spoil. In humans and other primates, acetic acid is a component of the female vagina, where it serves as an antibacterial.

The acetic acid content of vinegar will determine its use and varies according to the fruit or grain used to start with. Rice wine vinegar is quite mild with a low acid level making it a good choice for salad dressings. On the other end of the scale is distilled white vinegar which is highly acidic and suitable for making pickles. All other vinegars fall in between.

Malic acid, in particular, is the main digestive acid found in apple cider vinegar as well as in our own body cells. It has many health benefits, including boosting immunity, maintaining good oral health, reducing the risk of toxic heavy metals, and promoting good skin tone. Its most significant contribution is the ability to stimulate the metabolism and increase energy production.

Apple Cider Vinegar Nutrition

Apple cider vinegar is a concentration of acids, flavonoids, polyphenols, pectin, enzymes, minerals, and amino acids that form during fermentation. Scientists have found about 90 different substances in apple cider vinegar, including 13 kinds of carbolic acids, 4 aldehydes, 20 ketones, 18 types of alcohols, 8 ethyl acetates and much more.

Nutrients include:

* Acids – acetic, isobutyric, lactic, malic, and propionic

* Amino acids – the number and amount depends on its source with some having antioxidant properties.

* Beta-carotene – helps prevent cancer and protects the body against damage caused by exposure to toxic chemicals

* Boron – is found abundantly in fresh apples. It is a key mineral that assists other bone-building minerals also found in apple cider vinegar like calcium, magnesium, and phosphorus.

* Enzymes – are built from protein molecules and have many duties in the body. Those suffering from indigestion, gas, or bloating lack the essential digestive enzymes needed to digest food properly. Fresh apples are loaded with enzymes, which increase as vinegar is made. This is why it is important to buy apple cider vinegar with the mother. That way you know the precious enzymes and nutrients have not been destroyed in processing.

* Magesium – is needed for bone health as well as for proper muscle function, including the heart where it can strengthen the beat and help normalize blood pressure.

* Pectin – is a soluble fibre that can absorb water, toxins, and cholesterol in the digestive tract. Apple cider vinegar contains valuable pectin from the apples and will go a long way in improving heart health and regularity.

* Potassium – is stripped from processed foods and replaced by sodium. To make matters worse, caffeine and sugar take what little is left in the diet because both act as diuretics, flushing valuable nutrients out of the body. Apple cider vinegar is an excellent source of potassium, giving roughly 100 mg per 3.5 ounces.

* Tannins – are released from the crushed cells of the apple. Tannins are the red-gold plant chemicals that give plants and various fruits and vegetables their astringency. They are effective antioxidants that help to prevent spoilage.

* Other – During both fermentation processes, many new plant chemicals are formed. As yet, many remain unidentified and no doubt will add to apple cider vinegar’s growing list of health-giving substances.

Apple Cider Vinegar Benefits

* TONIC – 1-2 tsp apple cider vinegar in 1 glass filtered water. Drink before or during meals 3 times a day.

* Acne – Mix 2 tablespoons apple cider vinegar with a cup of water and dab on blemishes several times a day. This will help dry them out and curb infection. You can follow this treatment with a little aloe vera gel to help prevent scarring.

* Aging – Premature aging can be a sign of an inefficient digestive process. Drinking a little apple cider vinegar before each meal can help improve digestion. Taking the TONIC on a regular basis will improve digestion and metabolism, resulting in better skin tone, less joint pain, improved memory, and a trimmer figure.

* Allergies – Regular use of apple cider vinegar helps strengthen the immune system and improve metabolism.

* Arthritis – Although there is no definitive research on this, many arthritics attest to its effectiveness. Dosages vary from taking 2 teaspoons a day to 10 with water after a meal until the pain subsides. Arthritis is often aggravated by food allergies. The most common culprits are nightshade vegetables (potatoes, tomatoes, peppers, eggplant, and tobacco), wheat, dairy, corn, and citrus. By eliminating one at a time, people can find out which one may be affecting them.

* Asthma – Sipping a glass of water containing a tablespoon or more of apple cider vinegar often helps.

* Athlete’s foot – Soak the feet twice a day in half water and half apple cider vinegar. Applying the vinegar directly to the affected areas several times a day also works well.

* Bladder – Patricia Bragg recommends this healing and cleansing drink to help overcome bladder and kidney infections: 2 tbsp. cornsilk to 1 quart distilled water or marshmallow herbal tea. Drink 1 cup 3 times a day, adding ½ tsp apple cider vinegar and 1 tsp buckwheat honey each time. Adding a little apple cider vinegar to organic, non-sweetened cranberry juice also works well.

* Bleeding – Vinegar has long been used to treat wounds and stop bleeding. It is believed that the adrenaline-like effect of apple cider vinegar helps to coagulate the blood. A cottonball soaked in apple cider vinegar and placed in the bleeding nostril is more effective than a plain cottonball.

* Blood pressure – Take the TONIC to gain the benefits of the potassium in the apple cider vinegar. Potassium helps balance the body and lower the blood pressure.

* Bones – Apple cider vinegar contains minerals (magnesium, manganese, and silicon) which contribute to good bone health. It also contains the trace mineral boron which supports the metabolism of calcium and magnesium. Several good quality calcium and magnesium manufacturers are recognizing this and adding the mineral to their supplements. Boron also helps elevate levels of the hormones estrogen and testosterone which help keep bones strong.

* Bruises – Dissolve and warm 1 tsp salt in ½ cup apple cider vinegar. Apply as a compress to the affected area.

* Burns – Use apple cider vinegar full strength to any burn, including sunburns.

* Cancer – Apple cider vinegar contains a number of substances that can help protect against cancer, including beta carotene and pectin that help fight against free radicals. One interesting study published in Lancet was done by researchers at Johns Hopkins University and at the University of Zimbabwe. Nurse midwives screened more than 11,000 women for cervical cancer, using both acetic acid (the prime ingredient in apple cider vinegar) and the traditional pap smear. They found that the vinegar test picked up more precancerous or cancerous cells than the pap smear.

* Cancer sores – Rinse the mouth with 1 tsp apple cider vinegar in 1 glass of water several times a day.

* Candida – As a douche for vaginal yeast infections, mix 2 tbsp apple cider vinegar and 1 quart warm water and use twice a day until the burning and itching stop. Adding 1 cup of the vinegar to bath water also brings relief and toning the skin and helps to heal other skin problems.

* Cataracts – Studies have shown that diets high in fat and salt increase the risk for cataracts. Since apple cider vinegar helps metabolize proteins which, in turn, improve fat metabolism, it should be added to the diet to lower the risk of cataracts. Not only that but apple cider vinegar also includes the antioxidants (beta-carotene, C, and E) known to fight against the free radicals formed in the body that contribute to cataracts.

* Chicken pox – The discomfort of the itching pox can be relieved by applying apple cider vinegar full strength to the affected areas and by adding 1 cup to a warm bath.

* Cholesterol – Taking the TONIC is an effective way of adding pectin to the diet. Pectin is a soluble fibre which absorbs fats and cholesterol and removes them from the body. The vinegar also contains amino acids which neutralize harmful LDL cholesterol.

* Cold sores – Cold sore pain and duration can be lessened by applying apple cider vinegar full-strength to the sores several times a day.

* Colds – During a cold, the body is more alkaline. Therefore, taking the TONIC several times a day at the onset of a cold can help raise the acidity level to kill off the harmful viruses and boost the body’s immune system. Nasal congestion can be relieved by adding apple cider vinegar to a steaming bowl of water and inhaling the vapors. This will not only open the passages but the vinegar will help kill the viruses or bacteria causing the problem.

* Constipation – Constipation is caused by a poor diet and a reduction in digestive acids that deminish with age. Along with improving the diet by adding more fibre, apple cider vinegar taken with meals can also help with regularity.

* Corns – Soak feet in a warm bath containing ½ cup apple cider vinegar. Rub the corns with a pumice stone and apple vinegar full strength. Cover with a bandage overnight. Apply the vinegar and a bandage again in the morning. Repeat until the corn has dissolved.

* Coughs – One of the oldest home remedies is honey and lemon juice, but using apple cider vinegar instead of lemon juice also works well.

* Cramps – Muscle cramps can be an imbalance of nutrients in the body, especially vitamin E, potassium, calcium, or magnesium. Taking apple cider vinegar daily will help supply as well as metabolize these nutrients from other sources.

* Cuts and abrasions – Applying apple cider vinegar to superficial wounds is an age-old practice. It will not only cut down on the risk of infection; but it will also speed the rate of healing.

* Dandruff – Use apple cider vinegar full strength on the scalp to destroy the bacteria or fungus that is causing the problem. Apply to the scalp, rub in, and leave on for half an hour before shampooing the hair.

* Deoderant – A good diet and regular cleansing will go a long way in reducing body odor; but for added protection, dip a cloth in apple cider vinegar and wipe underarms with it.

* Depression – Although depression can range from the mild to the severe, it is a serious metabolic disorder. Apple cider vinegar can help cleanse the body by stimulating the liver to get rid of toxins that might be contributing to the problem. It also helps metabolize the proteins needed to influence production of seratonin.

* Diaper rash – Apply half apple cider vinegar and half water to a diaper rash or any other type of rash. It also tones the skin.

* Diarrhea – Taking the daily TONIC can help get rid of the micro-organism causing the problem and improve digestion that might also be a contributing factor. Some people resort to over-the-counter use of Kaopectate. The “pectate” part is simply pectin. Much cheaper and more natural versions can be found in fruits and vegetables and of course, apple cider vinegar. Persistent diarrhea, however, requires medical attention.

* Digestion – As mentioned many times, apple cider vinegar improves digestion especially in metabolizing proteins. It enhances the action of hydrochloric acid (HCL – which deminishes with age) and digestive enzymes. Digestion begins in the mouth where the apple cider vinegar stimulates the acid receptors on the tongue to produce saliva that begins the breakdown of carbohydrates. Taking apple cider vinegar and water before each meal can help improve the digestive process.

* Dizziness – An alkaline environment can produce dizziness and a number of other conditions. Some people have obtained relief from dizziness by taking the TONIC on a regular basis.

* Earaches – While waiting for antibiotics to work, should one be needed, put some apple cider vinegar on a cotton ball and place in the ear. This can help kill off any microbe that might be causing the problem as well as relieving pain.

* Eczema – Use half apple cider vinegar and half water to relieve the itching and dryness.

* Fatigue – The amino acids in the apple cider vinegar can help neutralize the build-up of lactic acid in the bloodstream that occurs after exercise and stress. It is also thought that regular use of the TONIC can help prevent fatigue.

* Fever – There is an age-old remedy of wrapping the calves with towels that have been soaked in 1 part apple cider vinegar and 3 parts water. This seems to have helped reduce fevers. Resoak and reapply as the towels dry out and until the fever is reduced, all the while keeping the patient warm, of course.

* Flatulence – Stomach gas is a sign of poor digestion, often caused by the incomplete digestion of carbohydrates. Sipping the TONIC before meals can help relieve the problem.

* Food poisoning – Traveling to other countries often brings on digestive upsets. Traveling with liquids can cause other problems. However, apple cider vinegar is available in capsules. Taking them every time you eat can help avoid digestive problems and kill any microbes that cause food poisoning.

* Gall bladder – Apple cider vinegar can be an integral part of what is called a gall bladder flush. There are many variations to this flush, which is taken over a period of 2 to 3 days followed by drinking straight olive oil. However, this should only be attempted if small gallstones are present and even then, should be supervised by a health care professional. Consuming apple cider vinegar on a regular basis can help avoid gallstones altogether.

* Gums – Bleeding gums are often relieved by using the TONIC as a mouth rinse. The action of the vinegar dissolves plaque and fight oral infections. It can also dissolve tooth enamel, so swish well with water after a vinegar rinse.

* Hair – Add ¼ cup apple cider vinegar to 1 quart warm water and use as a final rinse or for loosening tangles. It will restore lustre and shine to dull, lifeless hair. The mixture will also help fight scalp conditions like dryness, itchiness, and flaking, especially if caused by a fungus. For hair colouring: If using a vegetable-based hair dye or henna, rinsing with apple cider vinegar holds the colour longer. In addition, rinsing the hair with apple cider vinegar before a colouring or perm process will remove any residue from shampoos and make the dye or perm take a better hold.

* Headaches – Headaches are often the result of the body being too alkaline. The fastest way to gain relief is to try a little apple cider aromatherapy by breathing in the fumes of simmered water and apple cider vinegar. Adding the vinegar to a vapourizer can also help.

* Head lice – Over-the-counter head lice preparations are very toxic and often are not as effective as more natural approaches. Try rinsing the hair with full strength apple cider vinegar. Do not wash out. Wrap in a scarf and leave until the next shampoo. Do this for 2 or 3 days in order to kill all the adult lice. Then for the next few days, examine each strand of hair in the sunlight for eggs. Use a nit-comb or fingernails to remove these. Wash your hands and clean your fingernails thoroughly afterwards. Use apple cider vinegar regularly on your hair to keep the scalp free of pests and other infections.

* Heartburn – Ironically, heartburn results from too little hydrochloric acid rather than too much. Taking antacids only compounds the problem. Regular use of apple cider vinegar can help eliminate the problem as it properly breaks down fats and proteins and stimulates digestive enzymes to improve the whole digestive process.

* Heatstroke – This can happen when not enough fluids are consumed, causing the body to overheat. Apple cider vinegar can quickly restore electrolytes and other minerals lost during sweating. In fact, an age-old remedy called switchel was served to exhausted workers. It consisted of combining 2 tablespoons of apple cider vinegar, 1 ½ tablespoons of blackstrap molasses, and 2 cups boiling water poured over ice.

* Hemorrhoids – Apply full strength apple cider vinegar to the hemorrhoid to promote shrinking and a reduction in the itch and pain. Regular internal use can help with the digestion that precludes the onset of hemorrhoids.

* Hiccups – There are so many remedies for hiccups that adding apple cider vinegar should come as no surprise. Sipping a glass of warm TONIC sometimes helps.

* Hives – Make a paste of equal parts apple cider vinegar and cornstarch and apply to the hives or rash to help calm the itching. This also works for jock itch and other rashes.

* Impetigo – Impetigo is a very contagious bacterial infection (staph or strep) often seen in young children. Applying apple cider vinegar to the lesions every 3 hours should help halt the spread and dry up the areas.

* Iron absorption – Apple cider vinegar can help improve the absorption of iron, a mineral that carries oxygen to the cells and holds it there, thus preventing iron deficiency anemia. The acetic acid found in apple cider vinegar helps release iron from food. The more iron that is absorbed, the more oxygen will be in the blood cells and the more energy a person will have.

* Insect bites and stings – Apply full strength apple cider vinegar to reduce pain and/or itching.

* Insomnia – A glass of apple cider vinegar TONIC with a little honey before bed often helps. The carbohydrates in the vinegar and honey will activate serotonin, a brain chemical that promotes relaxation.

* Kidneys – Pyelitis (Pyelonephritis) is an inflammation of a kidney. Some doctors have used the apple cider tonic with good results. However, always check with your own health care professional.

* Leg cramps – Regular intake of TONIC can help absorb calcium and magnesium. A lack of these minerals often contributes to leg cramps, especially at night.

* Liver function – Apple cider vinegar has long been used as a detoxifying agent. To promote good liver function, add an additional 1 tablespoon of apple cider vinegar to your daily TONIC. This will increase the breakdown of fats and proteins from foods that tax the liver.

* Night sweats – Whether night sweats are the result of an illness or menopause, drinking a glass of TONIC in the morning can help rebalance the hormones and help the body remove toxins through the perspiration.

* Pets – Apple cider vinegar works very well on animals, as well as on humans.

o Putting a little in their water dish helps keep their digestive tract healthy, deters fleas and ticks, and gives them a shiny coat.

o Swabbing their ears with diluted apple cider vinegar keeps them free from itching.

o Skin conditions are relieved by adding apple cider vinegar to their bath.

o Using the vingegar instead of tomato juice can help relieve the smell after a run-in with a skunk, as well as being healthy for their coats; shampoo as usual after the treatment. Horses can develop intestinal stones (enteroliths) that can cause blockages. Veterinary researchers at University of California Davis recommend 1-2 cups of apple cider vinegar daily in their water to prevent these stones from forming. In addition, by pouring the vinegar over the feed, flies stay away.

* Poison ivy, oak, sumac, nettles – Mix equal parts of cider vinegar and water and apply directly to the area. By keeping this mixture in a spray bottle in the fridge, the coolness will also help bring more relief.

* Salt replacement – Apple cider vinegar can be used to replace salt, which can be a flavor enhancer for fat. In other words, eating too much salt can cause a person to increase fat consumption. Adding apple cider vinegar to protein foods, including beans, can go a long way in enhancing flavour and be a much healthier substitute for salt.

* Shingles – This is a painful condition of the nerves caused by a herpes virus. Applying apple cider vinegar full strength to the areas 6 or 8 times a day can help the itching and burning. Taking apple cider vinegar internally can help speed healing as well.

* Sinusitis – Drinking a glass of apple cider vinegar TONIC can balance the body’s pH level since sinusitis is sometimes caused by the body being too alkaline. Inhaling the fumes from hot apple cider vinegar and water can also help destroy any virus or bacteria that might also be the cause of an infection.

* Sore throat – Gargling with apple cider vinegar TONIC helps relieve a sore throat – but do not swallow the gargle since you do not want to swallow any microbes that might be the cause. Apple cider vinegar can reduce any swelling and increase the flow of mucus. This is also a good preventative if there is to be much stress placed on the throat, as singing or public speaking.

* Swimmer’s ear – Combining the drying effects of alcohol with the disinfecting properties of apple cider vinegar can help reduce the itching and pain. You can use 3 to 4 drops in the ear after swimming or showering.

* Teeth – Daily rinsing with TONIC can help maintain good oral hygiene and fight bacteria that cause tooth decay and gum disease. However, be sure to rinse well with water afterwards as vinegar can damage tooth enamel in time.

* Tinnitus – Tinnitus is an annoying condition with any number of causes. Daily consumption of TONIC helps improve mineral balance and circulation, both of which can have a positive effect.

* Ulcers – Apple cider vinegar has been used to help keep stomach ulcers from forming.

* Varicose veins – A number of apple cider authorities recommend soaking a compress in the vinegar and wrapping it around the legs twice a day for a month. The legs should be kept elevated for about ½ hour before removing the compress. Drinking the TONIC before or with meals, along with the soaks, helps as well.

* Warts – Combine 1 part salt with 4 parts apple cider vinegar and apply several times a day to the wart until it disappears.

* Weight loss – Although fat is necessary for the body to function, most people eat too much of the wrong kinds. Appetite increases as daylight decreases. So does the craving for fat, which is the body’s main line of defence against the cold of winter and possible food shortage. The body uses protein for fuel and carbohydrates for instant energy, but it is fat that provides the resources for long-term energy.

Fat insulates vital organs (heart, liver, lungs, and kidneys) as well as keeping the body temperature regulated. It is also involved in certain chemical reactions in the body involving enzymes, hormones, and fat-soluble vitamins (A, D, E, and K).

Another responsibility added to fat is its role in a healthy nervous system. When fat is combined with phosphorus, lecithin is created. Lecithin plays an important role in the formation of neurotransmitters – chemicals needed for proper functioning of the brain which, in turn, controls such things as appetite, mood, and the ability to learn and remember.

Essential fatty acids are essential because they must come from the diet. Manufacturers remove the omega-3 fatty acids to lengthen shelf life. This means omega-6 fatty acids are all we get in most foods. The omegas work in opposition to each other; and by getting too much of one and not enough of the other, health problems result. For example, omega-6s increase blood pressure, blood clotting, and cell proliferation. Omega-3 fatty acids do the exact opposite and, without it, heart problems, diabetes, and cancers – just to name a few – increase.

So, what has all this got to do with apple cider vinegar and weight loss? Well, I am glad you asked. Apple cider vinegar helps with gradual weight loss. Fad diets encourage rapid weight loss – which is never permanent. This is how.

The acids in apple cider vinegar help to improve the digestion of protein. Protein helps to construct some of our hormones, especially the growth hormone which is instrumental in breaking down fat cells. By increasing the acid in the stomach before a meal begins, the chances for proper digestion of protein also increases. All too often people think they have too much acid because they have heartburn and take an antacid when, in fact, the exact opposite is true. The stomach is too alkaline and pours out more acid to compensate, but antacids are taken instead and the whole viscious cycle begins again.

Proper digestion of protein will also improve carbohydrate conversion and, ultimately, insulin production. Apple cider vinegar starts a process by first raising the metabolism, which increases the body’s ability to utilize proteins for insulin formation. This ultimately improves the transformation of the amino acid tryptophan into serotonin, which is a natural mood elevator and tranquilizer. In addition, because apple cider vinegar stimulates and improves digestion, it can reduce the amount of time fats remain in the digestive tract all the while allowing enough time for other nutrients to be absorbed. By Sanjay Babu, Kashmir Observer

In the cyclical nature of the oil market, January traditionally has been a time when refineries raise both crude oil on hand and gasoline being produced in anticipation of a coming rise in demand a few months down the road.

Of course, gasoline is hardly the only oil product. Unusually cold winters will increase the need for low-sulfur heating oil and propane (a higher-end distillate that serves as the major heating fuel in most rural areas nationwide), too. And then there is the ongoing difficulty of producing an adequate volume of diesel (a middle distillate).

This time, however, it is not the inventory expansions, but their actual size that is prompting some jitters in the market.

In its weekly figures (released Wednesday, January 19), the Energy Information Administration (EIA) – a division of the U.S. Department of Energy – reported that both crude oil and gasoline inventories are at 10-month highs and well above five-year averages.

As I am writing this, the price of crude oil is down about 3% from its last high on January 12.

RBOB (Reformulated Blendstock for Oxygenate Blending), the NYMEX gasoline futures contract, has also declined. Yesterday it fell almost 2.5% – the single largest daily drop in three months.

With crude above $90 per barrel and gasoline at $2.47 a gallon before this slide, these percentage falls are not overly disconcerting in themselves. However, any time we see a short-term spike or dive in prices, the analysts and pundits need to explain why.

And it is here that they continue to get only half the picture.

Two demand elements are paramount to – and figure prominently in – the sound bites now permeating the airwaves: concerns over demand in the U.S. market and questions about the impact of inflation in China.

But, as you will see, most analysts are missing something. And it points to serious profits for us…

Two Demand Concerns Are Causing Market Jitters

First, deliveries from refineries in the U.S. to wholesalers continue to be down. That guarantees that we’ll hear a broad-based assumption about the strength of the recovery in the American market.

Of course, one could just as easily ascribe the brunt of it to other factors – the continuingly bad weather in places like the Northeast (cutting travel), for example, or the fact that this is the time of year in which demand usually declines, for cyclical reasons.

I would suggest in response that the more pervasive dynamics in the market ought to be the overriding indicator.

Keep in mind the following: While the inventories of finished product are increasing, so are the processing runs. In other words, refineries were operating at 83% of capacity last week (the Wednesday EIA figures tell us what the market was doing as of the previous Friday) but actually producing more while moving less onto the market.

Translation?

Refineries are building inventories of both raw material and finished product in anticipation of the normal yearly rise in demand starting in March. They want to be ready to profit.

And this year, that demand surge is shaping up to be an unusually pronounced one. So concerns about genuine demand levels in the current – very short-term – window seem unwarranted.

There is one anecdotal way of seeing this trend. The February contract gasoline crack spread (comparing contracts in crude oil to contracts in gasoline) is narrowing. This usually happens when a balancing is taking hold between the two.

Looks to me like a base is forming for the move up.

Then again, the decline in pricing has been quite subdued.

Despite the continued angst over the demand-economic recovery connection, the futures trade is actually taking place in a rather narrow band. Daily trading must consider short cycle demand concerns. Yet the subdued pricing declines means there is considerable upward pressure in the market suppressing more pronounced declines.

Second, the Chinese situation poses a longer-term question.

With the introduction of mechanisms to cool off a clearly overheated economy, Beijing’s decision to raise interest rates and bank reserves is a sign that the specter of inflation is raising its head.

Analysts rightly note that a slowdown in Chinese development should translate into a reducing need for energy. This aspect of the demand equation would then lead to a further depressing of prices for both crude and finished oil products.

Yet I find the basic argument unconvincing.

Despite Beijing’s moves, Chinese performance continues to accelerate, as does the need for gasoline in a rapidly expanding personal transport sector and for petrochemical feeder stock and products for a developing industrial network.

There is no energy crisis, industrial contraction, or domestic market implosion coming around the corner in China. And demand is moving north elsewhere in the world, too.

The two primary demand-side concerns, therefore, while valid, are hardly a disaster waiting to happen.

It is the other side of the situation that the pundits are missing…

The Real Reason Oil Inventories Are Soaring

The consolidation occurring in refineries is happening in the shadow of a much more protracted upward pricing pressure.

The traditional factors I follow in estimating future pricing levels – demand (especially industrial), currency exchange (forex) developments, supply concerns (more quality and processing costs, rather than simply availability), infrastructure strictures (like inventories), and sector M&A (concentrating control, reducing competition) – are still pointing strongly up.

The new element in the mix is the uncertainty of where to place the acceptable futures pricing levels (volatility).

We have seen such an element before, indicating a difficulty in equating proper pricing for futures (paper barrels) with consignments of actual oil (wet barrels).

But nothing like the one that is developing this time around.

What’s occurring very short-term (next month’s futures contract, for example) may be the horizon that limits the talking heads.

On the other hand, we know that the more encompassing combination of traditional elements and rising volatility will be driving these prices higher moving forward and our profits right along with them. By Kent Moors, Seeking Alpha

A South African firm, Sasol, announced Monday that it would spend just over 1 billion Canadian dollars to buy a half-interest in a Canadian shale gas field, so it can explore turning natural gas into diesel and other liquids. Sasol’s proprietary conversion technology was developed decades ago to help the apartheid government of South Africa survive an international oil embargo, and it is a refinement of the ones used by the Germans to make fuel for the Wehrmacht during World War II.

The technology takes “a lot of money and a lot of effort,” said Michael E. Webber, associate director of the Center for International Energy Environmental Policy at the University of Texas, Austin. “You wouldn’t do this if you could find easy oil,” he said.

But with the huge spread between oil and gas prices, and predictions of oil topping $100 a barrel next year, the conversion technology could be a “a money-maker for whoever is a first mover in that space.”

Several other companies have intermittently tried to make liquid fuels from natural gas or coal. For example, the energy company Baard has been planning a coal-to-liquids plant in Ohio but has not been able to pull the pieces together, and Peabody Coal has discussed a similar plant.

Sasol figures that the natural gas needed for a gallon of diesel, plus operating costs, comes to about $1.50 a gallon. In comparison, a gallon of diesel made from crude oil now costs more than $2, even before refining, and many forecasts are for the price of oil to go higher.

But there is a hefty cost of building the chemical plant to do the conversion, which might run over $1.5 billion for a new Canadian plant that would handle 40,000 barrels a day.

The calculations also exclude another cost: greenhouse gas emissions, which may be higher for a conversion plant than a typical refinery, depending on how the work is done.

“Everything ugly is in vogue again,” said Josh Mogerman, an energy specialist at the Natural Resources Defense Council, which has been fighting a proposed coal-to-liquids plant in Ohio.

From a financial perspective, the technology is far from ugly. A barrel of oil has historically cost one to two times as much as the equivalent amount of energy from natural gas. But right now, vast supplies of natural gas from shale formations in North America have driven prices down, so oil is triple the price of the gas equivalent.

The new ratio creates “a very attractive economic option,” said Lean Strauss, senior group executive at Sasol.

While the operating costs favor conversion, the cost to build the chemical plant is another matter; gas-to-liquids plants are far more capital-intensive than traditional refineries that make the same products from crude oil.

A plant opened by Sasol in Qatar in 2006, in partnership with the national oil company, Qatar Petroleum, cost $37,000 per barrel of daily capacity, but costs in Canada would be higher, Mr. Strauss said. Sasol produces 160,000 barrels a day of its liquids — diesel, naphtha and propane — in South Africa. It also turns out jet fuel, which is routinely blended into fuel for airliners departing from Johannesburg. In August, Sasol supplied 100 percent of the fuel for a Boeing 737 flight from Johannesburg to Cape Town.

In the deal announced Monday, Sasol acquired a 50 percent stake in Farrell Creek shale gas assets, in British Columbia. With the other owner, Talisman Energy, it will begin a feasibility study early next year on building a gas-to-liquids plant, and Talisman will have the option to own 50 percent of that.

Sasol is building a similar plant in Nigeria with Chevron, and last month, it completed a feasibility study in Uzbekistan. It also recently submitted a proposal to Shenhau, the Chinese coal company, for a similar plant.

The Sasol process cooks a hydrocarbon, either coal or natural gas, into a fuel gas made of hydrogen and carbon monoxide. Using a patented process that involves cobalt catalysts, it converts that gas into a mix of liquids: 80 percent diesel fuel, 15 percent naphtha and 5 percent liquid propane.

But the process is not 100 percent efficient. In fact, the finished product has only about 62 percent as much energy as the raw material did.

In addition to losing energy, the process creates excess carbon dioxide, compared to burning the natural gas or coal directly for energy. But starting with natural gas, said Mr. Strauss, the amount of carbon dioxide released per finished gallon of liquid fuel was comparable to the carbon footprint of a gallon from a traditional refinery.

Environmentalists are not so sure. “It’s unclear right now,” said Simon Mui, a scientist at the Natural Resources Defense Council. “There hasn’t been a large global experience in natural gas to liquids.”

But, he added, “it’s definitely not a greenhouse gas reduction strategy.” And recovery of gas from shale can itself be energy intensive and environmentally challenging, he said.

The Sasol move comes as Canada is increasing its production of oil from oil sands, which is clearly carbon-intensive. Environmentalists in the United States are trying to stop large-scale imports of oil from oil sands.

Mr. Mogerman, of the Natural Resources Defense Council, said that given the historical market prices for oil and natural gas, only countries with no other choice had pursued the conversion process. “The only ones who’ve done it are people with their backs against the wall, and who had no financial considerations,” he said.

But if oil prices stay high and gas prices remain low because of shale gas, that view could be history. By Matthew L. Wald, The New York Times

At 102ft long, 29ft wide and 25ft high, it’s hard to miss the Tûranor PlanetSolar catamaran, the largest solar-powered sea vessel.

And with 500 solar high-efficiency units that cover some 540sq. ft the 200-person capacity boat, which is silent and pollution-free, can motor along at a fair old lick, too: the top speed is about 15 knots.

It cost a cool £10million to build and is in the process of achieving a series of record-breaking feats as it circumnavigates the globe, while also promoting the use of sustainable energy.

Building of Tûranor (which means ‘The Power of the Sun’ in J.R.R. Tolkien’s Lord of the Rings language) by Knierim Yachtbau at Kiel, Germany, was completed in March this year.

And on September 27 it set off from Monaco on the round-the-world trip, which should be completed in the spring of 2012 at a average speed of eight knots an hour, if everything goes to schedule.

Completion of the 31,000-mile journey will see the vessel set the following world records:

* First solar-powered circumnavigation by any means of transportation

* First round-the-world voyage by a solar-powered boat

* First Indian Ocean crossing by a solar-powered boat

* First Red Sea crossing by a solar-powered boat

How does it work? Here’s the science bit… Styled by LOMOcean Design, Tûranor uses over 5,780 photovoltaic (PV) solar panels which, in turn, connect to one of the two electric motors in each hull.

SunPower, a California-based solar-panel company, are the best in the business according to PlanetSun spokesman Dany Faigaux.

He said: ‘The advantage of SunPower is they have the most efficient cells available on the market with more than 22 per cent efficiency.’

The boat’s hull was model tested in wind tunnels and tank tested to determine the hydrodynamics and aerodynamics.

And, as German investor Immo Stroether – who partnered Swiss adventurer Raphael Domjan to bankroll the project – believes, the clever design heralds a ‘new generation of catamaran’.

‘This is a milestone in the progress of solar mobility,’ he said. ‘It is my vision to see solar power take its rightful place – not only on rooftops, but also on the roads, seas and in the skies of the future.

‘The aim is to offer future-proof solutions for sustainable living in major cities and environmentally responsible mobility concepts. Solar mobility can make a significant contribution to this endeavor.’

According to the mission statement on the website, ‘the PlanetSolar team intends firstly to show that current technologies aimed at improving energy efficiency are reliable and effective, and secondly to advance scientific research in the field of renewable energy.

‘At the heart of this project is the conservation of our planet by the promotion of solar energy, energy efficiency and eco-mobility.

‘This is a great occasion to advance knowledge and to inform and make the general public aware of the importance of renewable energy.’

But there is no sun-bathing on deck allowed, as it will interfere with the efficiency of the panels.

Captain of the expedition is Frenchman Patrick Marchesseau, and he, along with Mr Stroether and Mr Domjan, is joined by Swiss Christian Ochsenbein, Michaela von Koskull  from Finland and German Jens Langwasser.

And after the epic, record-breaking trip, the boat will be used as a luxury yacht. By Oliver Pickup, The Daily Mail

As early as Wednesday, the Environmental Protection Agency plans to announce it will allow ethanol levels in gasoline blends to be as high as 15% for vehicles made since 2007, up from 10% currently, according to two people familiar with the matter.

For cars made between 2001 and 2006, the agency will say it is awaiting the outcome of additional research and not ready to announce a decision.

The agency’s move is likely to be strongly challenged by livestock ranchers, auto makers and oil refiners.

While the groups have varying motives for opposing greater corn ethanol production, they—along with many environmentalists—generally say the government hasn’t conducted sufficient testing to warrant higher concentrations of ethanol in motor fuels.

Opponents of the move say allowing 15% ethanol blends for some cars but not others could confuse consumers at the pump.

Anticipating such criticism, the EPA plans to also solicit comment on how gasoline pumps should be labeled, so as to avoid or reduce the potential that drivers will put the wrong fuel into their cars, the people familiar with the matter said.

An EPA spokesman declined to comment late Tuesday on the agency’s intentions, saying “we have nothing to announce at this point.”

The EPA’s decision comes as the Obama administration is under criticism by some Farm Belt lawmakers for what they say are overly burdensome regulations from the agency. In South Dakota, Republican Kristi Noem has called for EPA Administrator Lisa Jackson’s resignation, citing the agency’s inaction on the issue some 18 months after an ethanol industry trade group formally petitioned the agency for such a step.

The cause of boosting ethanol use in cars has been strongly championed by Growth Energy, an ethanol trade group led by Wesley Clark, the retired Army general and 2004 Democratic presidential candidate.

Gen. Clark’s group petitioned the Environmental Protection Agency last year to allow ethanol levels in gasoline blends to be as high as 15%, up from the current 10%.

Without the increase, the group said the U.S. won’t be able to meet a congressional mandate requiring some 36 billion gallons of renewable fuel to be blended into the domestic fuel supply by 2022.

A spokesman for Gen. Clark’s group said “we expect any decision from the EPA will draw the same conclusion that independent testing has shown—that E-15 is a suitable fuel for American motorists.”

The EPA proposal will provoke a lobbying battle among powerful interests.

A spokesman for the American Petroleum Institute accused the EPA of putting “politics before science.”

“You’re going to have fuels in the marketplace that could damange engines and void warranties,” the spokesman, Bob Greco, said. Auto makers have also fought the proposal to boost the ethanol blend limit, saying it could result in damage to older cars.

The ethanol industry has lobbied to boost the blend limit because holding the current 10 percent standard would limit the size of the U.S. ethanol industry to somewhere between 13 billion gallons and 13.5 billion gallons, depending on gasoline demand. But the industry has construction projects underway that would boost its annual capacity beyond 13.5 billion gallons in a matter of months.

It’s not clear how much the EPA’s move might increase ethanol demand since it would give blenders the option to increase the level of ethanol in gasoline. While such a move would likely be the most popular with gasoline stations in big ethanol producing states such as Iowa and Minnesota, it isn’t clear how retailers on the coasts might react.

Another critical concern for the ethanol industry: the 45 cents a gallon excise tax credit that has long helped to drive demand for ethanol is slated to expire at the end of the year. By Stephen Power, Wall Street Journal

Old solar panels are usually discarded, leading to concerns that they will fill up disposal sites and lead to illegal dumping in the future.

A low-cost recycling system has yet to be established because solar panel construction is mostly proprietary and panels are difficult to disassemble.

The Kitakyushu Foundation for the Advancement of Industry, Science and Technology will serve as the core organization of the project, city officials said Wednesday.

Other participants include Showa Shell Sekiyu KK, Shinryo Corp., a recycling business based in Kita-Kyushu, and the University of Kitakyushu.

The central government will cover the cost–500 million yen (about $5.7 million)–because the government-affiliated New Energy and Industrial Technology Development Organization adopted the initiative as a technology development project.

After the project ends, a solar-panel recycling facility will be set up in Kita-Kyushu.

The foundation also aims to transfer the technology to other Asian nations.

As of fiscal 2007, about 400,000 households around the country had installed solar power generation facilities. The combined capacity is 1.5 million kilowatts, almost equivalent to the output of one nuclear reactor, according to the foundation.

Solar panels, which have a service life of about 20 years, are usually disposed of as industrial waste.

The volume of discarded panels is expected to increase to 1,500 tons by fiscal 2014 and 3,400 tons by fiscal 2016.

Project participants will establish standardized recycling technologies to collect valuable metals, such as copper, silver and aluminum, from panels made by different companies. They will also attempt to create a social framework for gathering used solar panels and disposing of them. Asahi News