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Peak Oil (was "petroleum geologist explains US war policy")

Yesterday OPEC members voted to cut production targets by 4% (1M bpd), citing the recent weak dollar's negative effect on their revenue streams (since OPEC oil is [presently ;)] priced in dollars) as reason to take action aimed at raising the price.
Analysts appear split on whether OPEC members will actually stick to the targets, but fairly unanimous regarding the effects ($40 pb) if they do. This graph demonstrates the consequences:




This appeared to piss Washington off enough (they are *unhappy* about it, what with record US pump prices fast becoming an election issue) that they promptly 'relaxed clean-burning fuel regulations in California, New York and Connecticut'.


This might have worked for today, knocking 4% off the price of US light crude, but whether that alone can 'buck the trend' I personally doubt. Cue more of the same.



All the time the price goes up, the dollar falls.
All the time the dollar falls, in order to maintain projected revenue streams the Oil Producing nations that depend upon dollar denominated oil sales will seek to make up the shortfall by cutting production to raise price.

OPEC nations who decide to get out of this vicious circle by demoninating oil sales in Euros need only look at Iraq to see how far that gets you. I wouldn't want to be Hugo Chavez, that's for certain.

I do wonder about the PetroEuro issue and about where the 'dam might break', if indeed that is a reasonable analogy.

The significance of Russia in the Euro question keeps coming to mind - maybe just that because of it's size, Russia is always significant. Putin was on record last October (here and here) promising a switch... has this just sort of 'quietly happened'?

Has the dam already broken, just down here in the valley we haven't noticed yet?
 
Saudis vow to avoid oil shortages

Saudi Arabia has vowed to ensure world oil supplies will remain plentiful, in light of Opec's decision to cut output.
"We will not allow shortages in the market," said Prince Bandar bin Sultan, the Saudi Ambassador to the US, after meeting President George W Bush. Opec reduced production - by one million barrels per day - in order to provoke an orderly easing in prices.

The oil cartel reckons that prices are heading back to $25-28 per barrel, well within its target range. At present, oil prices are still well above that target: US crude oil is currently trading around $35 per barrel. But Opec is convinced that the current highs are speculative, and not indicative of any genuine strength in the market.

Saudi Foreign Minister Prince Saud al-Faisal says there is a fundamental oversupply of oil, something that would eventually take its toll in the form of a sharp fall in prices. Stocks of oil in the US, the world's biggest importer of crude, are at a 19-month high. US investors have stockpiled oil in response to the current tense security situation, but most analysts expect the buying to come to a halt soon.

http://news.bbc.co.uk/1/hi/business/3591299.stm
 
What about gas?

There're proven gas reserves to the equivalent of over a trillion barrels of oil out there, and more gets discovered relatively frequently.

With the development of Liquefied Natural Gas technology, it's set to become a fully fungible commodity like oil in the next 10 years or so.

And the Forum of Gas Exporting Countries is moving ever closer to becoming another OPEC.


Any thoughts on what gas will do to your forecasts?
 
infobomb said:
What about gas?

Good question.

Gas is subject to the same problems as oil. Here in the UK we are just becoming a net importer of Gas, having recently installed a link from our own North Sea infrastructure to facilitate import from Norwegian fields. The US similarly has become ever more dependent on imported gas.

image014.gif


One factor is the growth in demand:

pressbook-07.gif


Note how the 'Electricity Generation' segment grows...

image022.gif


infobomb said:
There're proven gas reserves to the equivalent of over a trillion barrels of oil out there,

Taking your reserve estimate at face value for a moment (although I'd be interested in the source - 'Barrels of Oil Equivalent' by economic value, 10 Mcf is 1 barrel of oil equivalent, by calorific 5.5 Mcf is 1 barrel) if Gas were to instantly replace all oil consumption (assuming it could, which it obviously can't) and demand stay constant, we would IME be adding just over 30 years to the equation.

infobomb said:
and more gets discovered relatively frequently.

Again, I'd be interested in a source for this - relative to what? Oil? A large proportion of gas discoveries are the result of 'failed' oil exploration. New discoveries not only have to meet increasing demand, they also have to compensate for depletion of existing wells. This aspect is often completely overlooked, but we can look at US domestic production for a few pointers:

image004.gif


image012.gif


image010.gif


infobomb said:
With the development of Liquefied Natural Gas technology, it's set to become a fully fungible commodity like oil in the next 10 years or so.
Making it easier to use? Easier to deplete? No amount of technology - including production technology - can avoid the effects of depletion. Increasing the fungibility exacerbates the problem.

LNG handling infrastructure is being built to enable the US to import gas, compensating for the failure of domestic supplies to meet demand due to depletion, thus increasing dependence on foriegn energy yet further.

infobomb said:
Any thoughts on what gas will do to your forecasts?

Gas is integral to them. Generally 'Oil' is shorthand for all hydrocarbons.

---

A couple of years ago, a presentation was given to an Oil Depletion conference in Sweden by a guy called Matthew R. Simmons, who I reckon knows a bit about the subject in hand.

A PDF is available here which I recommend reading, as we rarely hear the views of Investment Bankers. ;)

Scroll down to page 11 of the PDF for the relevant bit on Gas if you get bored reading it (although I hope you won't, it covers your question better than I have).
 
I'm just writing a piece about Egypt at the moment.

Egypt has quite a lot of gas reserves - 120tcf is the current estimate - and though that's just a drop in the ocean in the long term, Iran and Russia have a shitload more, sitting on 25% and 30% of known reserves respectively.

The problem with gas is that the price is currently linked to oil prices. That was a choice made back in the 70s, long before LNG. LNG does make gas easier to use and easier to deplete, but it also makes it a more viable alternative to oil - you don't need pipelines anymore, you can use tankers.

The source I got the figures from was from an article in Foreign Affairs by a guy who's a don of the gas market, and it seems to be backed up by all the other stats I have come across.

The basic issue is that if you continue to consider gas as a corrolary of oil you're going to get an inaccurate picture. That's why Egypt wants the price of gas decoupled from the price of oil, and countries like Venezuela are coming onside with that and are thinkg of making the Forum of Gas Exporting Countries more like OPEC.
 
I hope in your piece you stick to the 'estimated proven' Gas reserve figure issued by the Egyptian Govenment last November (which include the latest discoveries) which is around half the one you quoted.

Infact I can't find the figure of 120 tcf anywhere without the words 'probably' (without a P factor) or 'believed' preceding them! ;)

I do see what you are saying, though, that LNG infrastructure development will go a little way to delay the inevitable, although I wouldn't like to put a figure on exactly how much time it buys. Considerably less than the 30 yrs I mentioned earlier, whatever.

I certainly wouldn't consider it a step towards a rational, sustainable solution. If one were to consider environmental issues (which I am happy to leave outside the scope of this thread) it is clearly a step in the wrong direction.

I wouldn't want to see anyone getting the impression that LNG is in anyway a 'solution' to the energy problem. That argument is 'arse' ( - in that it stinks, has a huge crack down the middle, and frankly, is beneath you.* ;) )

Anyway, here's a handy graph of Gas reserves (from which Russia is irritatingly missing - what figure do you have for Russia?)

http://www.nationmaster.com/graph-T/ene_nat_gas_res&int=-1

NB: the above link contians a 'make your own graph' function - have fun! [passes Adzp the tissues :eek: ]


*© BBC R4, 'Now Show' (sorry) :p
 
Yeah, you're right about the 'probable' - though it's a bit more than 60tcf though, I think the last government announcement was before Apache made its finds in the Khalda concession.

Anyway, I'm not arguing that LNG is a long term solution to the energy problem, but that to my mind it makes the situation slightly less apocalyptic?
 
infobomb said:
I'm not arguing that LNG is a long term solution to the energy problem, but that to my mind it makes the situation slightly less apocalyptic?

Hmmm... maybe it's just the doom-monger in me, but I sometimes consider that the media stories that turn up hailing some 'good news' on the energy front (eg LNG , or to a greater degree, the promotion of Hydrogen as 'Fuel of the Future' etc) to make an energy 'Apocolypse' even more likely, as it fosters a complacent attitude towards energy issues.

A constant drip of 'news items' which create the impression of some sort of constant progression in the field of science towards lessening our dependence on hydrocarbon energy helps build 'faith' that science will somehow miraculously conjour up another Geni to replace the one we've burned and save us in the nick of time.

The complacency this 'faith in science' breeds prevents us from taking the only action that possibly could save us - that is, developing sustainable patterns of living and drastically reducing our consumption/demand.

-

Back to Egypt and LNG... Have you unearthed anything on the projected cost and schedule of the LNG facilities planned? I am particularly interested in how the project is to be funded I can't seem to find much on that or the energy requirements of processing the gas into it's liquid state at minus 162°C, etc.

There are some good resources on LNG (eg http://www.lngexpress.com/) but they want $500 to subscribe. :(

I'm also interested in data comparing relative efficiencies of different transportation methods (Tankers v. Pipelines) if anyone stumbles on anything.
 
Thing is, there are two, I kind of want to call them 'attractors' working here.

One of them is the subject of this thread: population keeps increasing, oil (and gas etc) supply dwindles as demand increases, there isn't enough land to use solar/biomass to keep present standard of living, billions die horribly.

The other one is that the oil (and gas etc) lasts long enough to totally fuck things up through climate change instead.

We seem to be headed into one or other of those attractors, and it does seem completely inevitable as long as market forces and economic growth continue to take total precendence over any other human considerations whatsoever.
 
Backatcha Bandit said:
A constant drip of 'news items' which create the impression of some sort of constant progression in the field of science towards lessening our dependence on hydrocarbon energy helps build 'faith' that science will somehow miraculously conjour up another Geni to replace the one we've burned and save us in the nick of time.

Let's hear it for fusion!

It's ten years away.

And has been ten years away since the 1950s... :(
 
Sure, and most of the other post-oil solutions that we hear about aren't too plausible either when you look at them in detail. For example if you work out exactly how much arable land you need for biofuels and compare it to what's available, and to what's required for the people we already have to eat food.

I think BB is onto something though, in terms of propaganda. The steady drip drip he talks about does tend to make it sound like answers are near at hand.
 
Bernie Gunther said:
It does seem completely inevitable as long as market forces and economic growth continue to take total precendence over any other human considerations whatsoever.

You first have to convince people that there even is any consideration other than the economic before engaging them in a debate regarding which should have precedence.

The currently dominant meme in our society is so good at quantifying the value of everything (from social wellbeing to the superiority of a motor car) in terms of it's monetary worth that all other measures of value or utility have been forgotten.

:)D @ Laptop)
 
Bernie Gunther said:
Thing is, there are two, I kind of want to call them 'attractors' working here.

One of them is the subject of this thread: population keeps increasing, oil (and gas etc) supply dwindles as demand increases, there isn't enough land to use solar/biomass to keep present standard of living, billions die horribly.

The other one is that the oil (and gas etc) lasts long enough to totally fuck things up through climate change instead.

We seem to be headed into one or other of those attractors, and it does seem completely inevitable as long as market forces and economic growth continue to take total precendence over any other human considerations whatsoever.

Hmmm... on the other hand... these do add up to strong, single, drive for actual policy. I think.

1 -> conserving what oil remains for essential life-supporting activity, or rather for the transition from the way that's organised to something sustainable;

2 -> reducing inessential use of oil to stop climate change being worse than it's going to be anyway.

That doesn't stop me expecting that in ten years I'll be organising a "told you so - capitalism did fuck shit up" event :mad: Damn US "lifeboat" scenario...

On a point of detail: anyone got any estimates on what proportion of food production is oil-dependent? I guess an exact (and gloomy) specification would be: how many calories/head/day if the oil dried up (a) today; (b) in 2050 at peak population?
 
laptop said:
<snip> On a point of detail: anyone got any estimates on what proportion of food production is oil-dependent? I guess an exact (and gloomy) specification would be: how many calories/head/day if the oil dried up (a) today; (b) in 2050 at peak population?
I think I've seen that in Pimentel someplace. I'll see if I can dig something out for you.

Thing is though, it's subject to assumptions. For example, Pimentel offers the following assumptions for 'business as usual'

0.5 ha/cap for food production.
1.5 ha/cap for energy systems.
1.0 ha/cap for pasture/biodiversity etc.

On those assumptions, and assuming soil erosion etc is effectively dealt with using known methods, we get 2 billion sustainable with 'EU-average energy use' or <1 billion with 'US energy use'

You can get some better assumptions, but it's not business as usual anymore. I've got some spreadsheets that say you can have 6 billion living a reasonably decent life, but 1/5 of them are pretty much gardening, rather than doing agriculture. Real intensive cropping using e.g. 'french intensive' (a 19th C market gardening approach)

Pimentel also comes up with a figure of ten units of oil energy to put one unit of food energy on the table when you include everything from the field to the table under the rules of business as usual. Hence eco-villages, ruralisation of cities etc, because to get really efficient you have to cut out a big chunk of transport and stuff like that by mostly eating stuff grown locally.

If it's just fertiliser and other farm stuff it's more like 7:1 (both ratios are for the US by the way, and the details are in his 'Food, Energy and Society'
 
Also, in this rather old article which assumes we are using Green Revolution technologies (ie oil inputs), Prof Pimentel doesn't seem to think we can sustain the projected population increases for 2050.

In this one, he's just worrying about soil erosion etc....
 
Bernie Gunther said:
I think BB is onto something though, in terms of propaganda. The steady drip drip he talks about does tend to make it sound like answers are near at hand.

Do you think it's more likely a manifestation of eternal human optimism, in that the alternative to believing that the men in white coats will save the day is so utterly horrifying / unconscionable / beyond imagination / off the radar from where we are today that it just doesn't register... (are we stupid?)

-or-

That there is perhaps some machiavelian plan afoot to make the resultant dieoff as 'tidy' or 'complete' as possible, easing the way ahead for the get-money-buy-guns successor generation in waiting? (are we selfish and a bit evil?)

I keep wanting to put myself in the position of someone like Murdoch, Cheney, Bush, Gates or Branson. Someone with perhaps a bit of real 'power' (yep, = wealth)...

" I've read all the studies and reports those muppets on the bulletin boards have (I probably commissioned some of them), plus a load more, so I know that the shit and the fan are about to meet.

I've got my fridge well stocked on my island bunker or whatever, so I know I'm OK.

So what do I do now?

Do I spare a little of my wealth to highlight the impending doom so that others might take action to avoid / limit it's effects on them in whatever way they can?

Or should I keep quiet about it, add to the drip-drip that keeps the masses soothed and perhaps even do what I can to speed the whole process up and reduce the possibility of 'competition' later? "


:eek:
 
Well, realistically, I think most of the people getting a free introduction to war, famine, pestilence and death are going to be in the third world. The Green Revolution (pdf!) was a servicable way to addict much of the third world to capitalism and get them out of their villages and into factories where they could make designer training shoes 18hrs a day instead of sitting around smoking spiff or whatever. I presume that if you're a billionaire capitalist, they aren't too relevant anymore, what's still relevant is a) making a profit with some variant of business as usual (e.g. GMOs) and b) stopping pissed-off former members of the middle classes from joining the working classes in stringing you up.
 
Egypt - there's two twin-train facilities being built, one by BG/Petronas, the other by Union Fenosa/ENI. The first will export to Gaz de France for the next 20 years, and wen the second train comes online to the US. The UF/ENI one will export to Spain, for use in Fenosa's power plants.

So far as I know the efficiency factor in LNG is because it will become fungible, and hence operate as a proper market. Pipelines guarantee supply on the assumption of demand, and hence produce market inefficiencies.

In terms of environmental/absolute efficiency, I imagine pipelines are more efficient.
 
laptop said:
Hmmm... on the other hand... these do add up to strong, single, drive for actual policy. I think.

Not, of course, that they'll be listened to in Some Places:

The Observer said:
George W. Bush's campaign workers have hit on an age-old political tactic to deal with the tricky subject of global warming - deny, and deny aggressively.

The Observer has obtained a remarkable email sent to the press secretaries of all Republican congressmen advising them what to say when questioned on the environment in the run-up to November's election. The advice: tell them everything's rosy.

It tells them how global warming has not been proved, air quality is 'getting better', the world's forests are 'spreading, not deadening', oil reserves are 'increasing, not decreasing', and the 'world's water is cleaner and reaching more people'.

The email - sent on 4 February - warns that Democrats will 'hit us hard' on the environment. 'In an effort to help your members fight back, as well as be aggressive on the issue, we have prepared the following set of talking points on where the environment really stands today,' it states.
...
more...

:mad: :mad: :mad: :mad: :mad:
 
Backatcha Bandit said:
That there is perhaps some machiavelian plan afoot to make the resultant dieoff as 'tidy' or 'complete' as possible, easing the way ahead for the get-money-buy-guns successor generation in waiting? (are we selfish and a bit evil?)

I raised a thread which touched on this a while ago ('What rationale for those who deny upcoming environmental catastrophe?'). It didn't go very far, but I'm worried that at least some of today's elite (particularly those of a social Darwinististic bent) might be amenable to this line of thinking. And it's possible that with advances in labour-saving technology and automation over the next half-century that most of the world's population could be 'surplus' to the ambitions of these people; and yet still an enormous drain on the planet's resources (collectively). Holocaust take two anyone?
 
Here's the Lifeboat Ethics argument for doing just that. Hardin, the guy who wrote this was a relatively progressive thinker compared to some of the people now promoting his ideas (the relationship being a bit like Nietzsche to the Nazis).

I think the motivation behind the organised denial of consequences in that article laptop is quoting just above, comes from at least three sources.

One is lifeboat ethics, by people who've understood the situation but chosen profitable adaptation over cooperative mitigation. In such a case, pretending the problem doesn't exist is secondary to betting on your own group's ability to adapt to the consequences better than any rival groups.

The second is simply petrochemical/military/industrial profits and lobbying.

I'd like to propose a third, driven by the ideological needs of the US political-religious right. I'm going to go do it over on its own thread though, because I don't want to cause this thread to go off topic.

link added.
 
Cheers for the info, infobomb.
icon14.gif


I also came across a few articles concerning the proposed Egypt - Jordan - Syria - Lebanon - Turkey Gas Pipeline Project and I gather another is planned to link with an LNG terminal in Libya?

I also came across this excellent map which shows all of the oil and gas pipelines (plus planned) throughout Europe, North Africa and The Middle East in all their arterial glory.

The enlargement is nearly 2mb, but it's really worth 1000 graphs. The 'classical underlying form' of our addiction. Yeah. :cool:

-

I found that 'Lifeboat Ethics' (Hardin) thing quite disturbing. It wasn't so much what he's saying (although by the end of it you can hear the jackboots). It was the logical fallacies and incorrect assumptions upon which he bases his argument. The whole 'Tragedy of the Commons' line is utter bunk, as it is the 'private' economic drivers that demand ever increasing returns that promote unsustainable practices in modern agriculture (pick a country). He also managed to completely miss the links between poverty and fertility rates.

It is useful in terms of understanding the mindset of a great many people, also pointing to a line of argument that might help to engage such (along the lines of "What makes you think they will allow you into the lifeboat? :D")

-

Excellent links, Bernie. The Phosphate depletion problem is critical but rarely discussed issue... it got me thinking...

Far out in the Central Pacific Region, there are a number of islands upon which (the highest quality) phosphate was mined to total exhaustion.

Literally entire islands were scraped up and fed into waiting ships then taken off to help feed the 'green revolution'. One such island (Nauru) remains as a thin donut of sand surrounding a 21 sq mile total moonscape in which absolutely nothing grows on the bare, jagged teeth of coral rock picked clean by the British Phosphate Company (a UK, Australia and New Zealand consortium).

ph%20phosphate%20nauru%2056.jpg


Representatives from Nauru recently appeared before the International Court of Justice in The Hague to seek reparations from Australia for damages from phosphate mining between 1989 and 1992, although Nauru recieved millions from the UK (1993) - which they divvied up amongst the population, many of whom spanked the lot on four wheel drive vehicles and washing machines, etc.

The place still occasionally makes the news after the cash strapped Nauruans took about AU$10m and all those Afghan refugees that the Australian Navy was so keen to keep from landing (well, 'a tough stance on immigration' helped John Howard get elected).

So now we have around 12,500 people plus however many 'guests' (can't find figures - no journos allowed to enter Country - at least the residents of G'mo Bay are supposed to be guilty of at least something :mad: - but I digress...) clinging to existance, running out of water, almost completely dependent on imported foods but without the means to pay for it (the country is 'bankrupt'), no means of sustaining themselves and nothing to show for it but a pile of vintage PCB leaking industrial transformers, broken rusty washing machines and 4x4s they couldn't afford to run even if they did. Not that there is anywhere to drive - go as fast as you like, but soon you're back where you started. At least they have a couple of metres more than the neighbours!


What I'm getting at here, is that places like that and the living hell they have become are in many ways a microcosm of the wider world.
 
TrueStory said:
Greeting Sirs,
this semms to be one of the best threads on the internet - so I're registered on urban75 - hoping that I can contribute with something :)

For beginning here is a Study on the White House Energy Policy.
I've posted this study on democraticunderground.com - since I'm not familiar yet with this forum, I won't repost it, but here is the link:

http://www.democraticunderground.com/discuss/duboard.php?az=show_topic&forum=115&topic_id=6991

pic4697199.gif

Wecome to the boards TS.

Very interesting link. You should introduce the material into the thread proper in my view.
 
A Study of Dick Cheney's National Energy Policy Report

bigfish said:
Wecome to the boards TS.
Very interesting link. You should introduce the material into the thread proper in my view.

Thanks, I'll do my best :)


Dick's report can be found here:

http://www.whitehouse.gov/energy

or more specific

http://www.whitehouse.gov/energy/National-Energy-Policy.pdf

The report has been signed on May 16, 2001 by Dick Cheney:

http://kep.tar.hu/ezerkilencszaznyolcvannegy/images/pic4784432.jpg


Excerpts from the report

"Estimates indicate that over the next 20 years, U.S. oil consumption will increase
by 33 percent, natural gas consumption by well over 50 percent, and demand for
electricity will rise by 45 percent."


OK, we'll keep in mind.



"We have a similar opportunity to increase our supplies of electricity. To meet
projected demand over the next two decades, America must have in place
between 1,300 and 1,900 new electric plants. Much of this new generation will be
fueled by natural gas. However, existing and new technologies offer us the
opportunity to expand nuclear generation as well. Nuclear power today accounts
for 20 percent of our country's electricity. This power source, which causes no
greenhouse gas emissions, can play an expanding part in our energy future."


This is interesting, because we know since June 2000 that there is a natural gas shortage in US and in North-America, so why Dick wants to fuel these new electric plants with gas?
read more:
http://www.energypulse.net/centers/article/article_display.cfm?a_id=578


"For example, about 90 percent of all new electricity plants currently under
construction will be fueled by natural gas. While natural gas has many
advantages, an over-reliance on any one fuel source leaves consumers
vulnerable to price spikes and supply disruptions. There are several other fuel
sources available that can help meet our needs.
Currently, the U.S. has enough coal to last for another 250 years. Yet very few
coal-powered electric plants are now under construction."


OK, we are now even more specific - 90% of the new electric plants will be fueled by natural gas, and possibly the rest 10% by coal.



"Other nations, such as Japan and France, generate a much higher percentage
of their electricity from nuclear power. Yet the number of nuclear plants in
America is actually projected to decline in coming years, as old plants close and
none are built to replace them."


Again very interesting. Bush&co starts project for making new atomic bombs, however there are no plans for new Atomic plants. If I could decide, than I would dismount the atomic bombs, and I would use the Uranium and Plutonium in Atomic plants - but perhaps I have a wrong way of thinking.


pic4781268.gif

"There are a number of reasons why nuclear energy expansion halted in the
1980s. Regulatory changes implemented after the Three Mile Island incident in
1979 lengthened the licensing period to an average of fourteen years, resulting in
large cost overruns. Increased public concern about the safety of nuclear energy
after the accident often resulted in active opposition to proposed plants. As a
result, the last completed nuclear energy plant in the United States was ordered
in 1973."


Again interesting approach. There was an incident on Three Mile Island, therefore no more Atomic power plants considered, but the existing Nuclear energy plants are operated at maximum or above maximum capacity and everybody hopes no problems will arise.



pic4782180.gif

My understanding is that in 1999 the difference between the red and blue lines should be 70, however I can see only 20 - but again, perhaps something wrong with my graph reading capacity.



pic4781266.gif

This graph is and "Economist trick".
The economists basically have two tricks to demonstrate, that there is no problem with the Energy.
Their first trick is saying that if there is a shortage, than prices are going up, and if fuel price goes up, than it will be economic to drill in new fields. However this is only partly true. To get the oil on the surface you need energy, and if the energy you invest is less than the energy what you can get from the oil brought to the surface, than this won't be economic no matter how high is the oil price.
The economists second trick can be seen on the image above. You can see that as time goes on, we can produce the same GDP with less and less energy. Someone would think we can move further down, using only 10..20% of the energy used in 1970 to produce the same amount of GDP.
I think we can improve substantially our energy efficiency, but if energy shortages appear things will got even worse. Just think about it: in case of energy shortage there will be a lot of people without jobs, and even those with jobs will spend a significant part of their income on energy: fuel, heating, electricity and on goods where there is a need for energy producing them: food, clothes, etc. They will spend less money on products like films, software, computers, etc - basically on energy efficient products.


"Of the approximately 43,000 MW of new generating capacity that power
companies planned in 1994 for construction from 1995 to 1999, only about
18,000 MW were actually built. Although plans have been announced to build
more capacity than the country will need over the next five to seven years, this
new construction assumes market and regulatory conditions that are not yet
assured. Over the next twenty years, the United States will need 1,300 to 1,900
new power plants, which is the equivalent of 60 to 90 new power plants a year"


This is the dark side of the deregulation.


"There are roughly 5,000 power plants in the United States, and they have a total
generating capacity of nearly 800,000 mega watts. (...) Over the next ten years,
demand for electric power is expected to increase by about 25 percent, and more
than 200,000 megawatts of new capacity will be required. However, under
current plans electric trans mission capacity will increase by only 4 per cent. This
shortage could lead to serious transmission congestion and reliability problems."


Another dark side of the deregulation.
by the way here is a CS Monitor news - 94 new coal fired electric plants, in total of 62 GW capacity.
http://abcnews.go.com/sections/scitech/US/coal_rush_CSM_040302.html
What is the meaning of the previously mentioned 90% of new electric plants will be natural gas fuelled? Is this 90% is referring to the number of electric plants or to the electric capacity?


"After peaking in 1982, coal prices have generally declined. This trend is projected
to continue through 2020, reflecting an expanding shift into lower-cost western
coal production and substantial increases in productivity. While coal is expected
to remain the dominant fuel in meeting increasing U.S. electricity demand
through 2020, energy policy goals must be carefully integrated with
environmental policy goals. The Clean Air Act Amendments of 1990 and related
state regulations require electricity generators to reduce emissions of sulfur
dioxide and nitrogen oxide."


CO2 is not mentioned in Clean Air Act Amendments?



pic4781272.gif

At first sight there is nothing interesting on this graph - just represeting costs needed for generation of 1 kWh depending on fuel type. However the represented years suddenly stops in 1998.
Why?
Maybe next paragraph will enlighten us :)



"Nuclear energy is the second-largest source (20 percent) of U.S. electricity
generation. Nuclear power is used exclusively to generate electricity. Nuclear
power has none of the emissions associated with coal and gas power plants,
including nitrogen oxides, sulfur dioxide, mercury and carbon dioxide. Costs of
electricity generation by nuclear plants compare favorably with the costs of
generation by other sources.
...
Currently, no plans exist to construct any new nuclear plants. However, due to
more favorable conditions, the decline in nuclear energy generation has not been
as rapid as was predicted only a few years ago, as evidenced by increased re-
licensing.
Under existing policy, natural gas generating capacity is expected to constitute
about 90 percent of the projected increase in electricity generation between 1999
and 2020.
Electricity generated by natural gas is expected to grow to 33 percent
in 2020, a growth driven by electricity restructuring and the economics of natural
gas power plants."


Why would someone state in a report prepared in 2001 what is the projected increase in 1999?
Well, this was the point where I've got enlightened.
This Dick just took the report prepared by the Clinton administration in 1998, and corrected the figures in some places and forgot to correct them in another places.
However the conception is the same as it was in 1998. In 1998 there was no problem with natural gas, it was normal to make a planning for the next 20 years with 90% of electricity generation increase based on natural gas.
In a report signed on 2001 May Bush&co should have addressed the natural gas shortage problem - but I think they had no spare capacity for document editing - they were preparing a different "solution" - the war with Iraq.
 
About:

Professor Richard E. Smalley

University Professor, Gene and Norman Hackerman Professor of Chemistry and Professor of Physics & Astronomy, 1996 Nobel Prize Winner.

Professor Smalley is concerned about the World's Energy challenge. What I like about him, is that he not just understands the importance of the Energy, but he even tries to motivate people to find the solution.

A very good presentation on Energy

"Our Energy Challenge," Public Lecture, Low Library, Columbia University,New York, NY; September 23, 2003
ppt
pdf
video 100k
video 300k
transcript
(transcript from MIT Forum, Houston, TX; January 22, 2003 - but the very same issues)

enjoy :)
 
Crude price heads for $38/barrel, due to Iraq & China

"While fighting hasn't affected the oil infrastructure, we continue to feel that it is extremely vulnerable," analysts at Fimat wrote Monday. "While fundamentals still favor higher prices, there must certainly be more that a bit of 'security premium' built into prices." Iraq's oil exports are up to about 1.8 million barrels a day, near pre-war levels. . On Monday, the Wall Street Journal reported that the International Energy Agency raised its outlook for near-term global demand again as China continues to set new highs in consumption. "What's more bullish than normal, is that they (the IEA), along with OPEC and the old-time prognosticators continually underestimate demand," said Phil Flynn, senior market analyst at Alaron.com. "It's like they can't believe their eyes when they see the demand growth in China and the U.S. They think it's going away, but its only getting stronger." According to Kevin Kerr, editor of the investment newsletter Kwest Market Edge, while the U.S. consumes 20 million barrels of oil a day, China is up to 6.3 million barrels a day - making it No. 2 in the world in terms of consumption. He predicts that China's consumption could equal that of the U.S. in the next seven to 10 years.

source
 
Russia to run out of oil in six years

mmm according to the minstry of Russian Natural Resources current oil supply in Russia will run out by 2010 because firms are not investing enough in exploration works....

Source
 
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