How Many Tonnes of CO2 in a ....? And How Much is it Worth?

CO2 value and content? 

Short article in Dec 14, 2013 Economist p70. Easy to miss.
http://www.economist.com/news/business/21591601-some-firms-are-preparing-carbon-price-would-make-big-difference-carbon-copy

http://en.wikipedia.org/wiki/European_Union_Emission_Trading_Scheme
ETS price $5 - "EUA" (which appears to be a tonne of CO2 'equivalents')
http://www.pointcarbon.com/news/euets/
http://en.wikipedia.org/wiki/Carbon_credit
California price - very roughly $12.

But for businesses internally: $6 to $60.
Non-energy companies around $10.
Energy companies around $30-40.

So how much CO2 in, say, a barrel of oil?

0.43 equiv-tonne CO2/barrel.

EPA: http://www.epa.gov/cleanenergy/energy-resources/refs.html

Comprehensive, yet simple open book calcs.

Given carbon credit (tonne of CO2, ETS EUA, etc.) prices above; what fraction of an energy unit cost is this cost/price?

http://www.oil-price.net/ Barrel of oil Jan 2014 about $100.
0.43 equiv-tonne CO2/barrel @ $10-40/equiv-tonne CO2 implies $5-20/barrel carbon price… five to twenty percent of oil price. Not insignificant, but not so high as to set off reality alarms.

"Theoretical" societal CO2 cost of $33/tonne implies $15/barrel.

http://www.epa.gov/climatechange/EPAactivities/economics/scc.html (using %3 rate at 2013?)

How much does it cost to produce a barrel of oil?

EIA: http://www.eia.gov/tools/faqs/faq.cfm?id=367&t=6

[And this excludes transportation and such.]  Very roughly $30/barrel.

Observations for rules of thumb:

“Market” cost divided by two gives roughly sum of production, societal and transport.

Production cost divided by two gives roughly societal cost.

Elements for Small Business Success

Elements for Small Business Success:

1. Own space, assets.
2. Procure supplies and utilities on terms.
3. Hire good people.
4. Market.
5. Understand your industry.
6. See yourself as a professional service.

Own the longterm/permanent assets, and seek low cost rental/finance on short term assets/supplies, with a clear understanding of depreciation.

Own or have free the space/location for the business. Own the key tools of the business, even if they are computers, but be careful not to pay too much (buy trailing edge technology?). Rental on longterm assets is a leech. And for what? By definition 'longterm' assets have little or no maintanence costs.

Utilities, communication and supplies should be bought on terms. Be as self sufficient and efficient as you can and do not get locked into longterm contracts. Be Green and engender a spirit of eco-social-friendliness in employees.

Hire good pepole. If you cannot find good people, then WAIT. Reward your people financially and socially. Nothing is worse for morale and efficiency than human resource thrash. If you are running a sweat shop, or cattle farm, then one is not speaking to your business (you have other problems).

Establish a web (or media de jour) presence to get the word out - quickly.

Stick to knowledge-based, professional, relationship, special product/service business. Large scale commodity/services businesses are just that - large scale. One might grow to be that someday, but start with quality, attention and efficiency. Get to know others in your business and their stories of successes and failures. Attend industry meetings when you can. Get your people involved in the industry. Get to know the business zeitgeist.

Process improvements and innovation are for after you get established, but in the longterm can be the difference of whether you merely survive or thrive/grow.