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

Nice quote there ...

“Can I tell you the truth? I mean this isn’t like TV news, is it? Here’s what I think the truth is: We are all addicts of fossil fuels in a state of denial, about to face cold turkey. And like so many addicts about to face cold turkey, our leaders are now committing violent crimes to get what little is left of what we’re hooked on.”
Kurt Vonnegut, 2004

Edited to add: that New Statesman thing does look impressive and seems to tackle a lot of facets of the problem. It's going to take a while to read it all.
 
Petroleum Review have produced a report (available from the Oil Depletion Analysis Centre here) looking at the annual and quarterly production from publicly quoted oil companies. Their study looks at the average daily extraction rates for oil and gas from the top 22 publicly quoted oil companies from 2002 up to the second quarter 2005.

Quite remarkably, in the first half of 2005 the top five, the top ten and the top 22 publicly quoted oil companies all produced less crude and NGLs than they did in 2004 and only slightly more than they did in 2003 and 2002.

Given the global increase in production and demand over the last three years it is clear that, in aggregate, the largest private oil companies are losing market share. For ten of the top 22 companies, and for four out of the five largest private companies, the first half of 2005 saw lower crude and NGLs production than in 2004.

Ten companies also produced less in first half 2005 than they did in 2003, while nine companies produced less than in 2002. Clearly, it is no exaggeration to say that the world’s largest publicly quoted oil companies are now really struggling to hold production levels, with only a few managing to maintain their market share of global production.
Extraction Rates Fall At Major Oil Companies
 
Odac?

Isn't ODAC owned and controlled by the fabulously wealthy Anglo-American Astor family?

And by the way, doesn't Colin "we're all going to die soon" Campbell sit on its board?

Why, yes, it's the very same.
 
David Astor (deceased) was the original ODAC patron, Lady Sarah Astor is a co-founder and chairperson, her husband Richard a trustee; the organization is funded by the Astor Trust. Several people from the oil industry have sat on its board, including Mr. A.M.S. Bahktiari, Senior Analyst for the National Iranian Oil Company and Matthew Simmons, investment banker and Texas oilman who used to head President Bush’s Energy Committee.
 
bigfish said:
Isn't ODAC owned and controlled by the fabulously wealthy Anglo-American Astor family?
It's a Petroleum Review report, ODAC are just hosting the .pdf on their webspace.

bigfish said:
So, if extraction rates are falling when oil is manifestly abundant and US refining capacity has been deliberately contracted (see internal memos cited on previous page) by the slippery sisters ... what do you think that point to civ?

Ant idea?
Not sure about the "manifestly abundant" comment... but if your point is that the oil industry might be intentionally curtailing production to maximise profit, sacrificing market share for increased revenue... maybe, who knows, impossible to tell. But I doubt it.
 
There's quite an interesting analysis of all this stuff in an article butchersapron turned me on to a while back. From Aufheben 12 .
The immediate fundamental problem facing the oil industry in the 1980s and 1990s was that the world's capacity to produce oil was growing faster than the world's consumption of oil. Whereas the 1970s had been an era of oil shortage the following decades were to be an era of an oil glut. But by the mid-1990s the more strategic thinkers of the bourgeoisie, particularly those within the oil industry, were becoming concerned that in the not too distant future the world could once again find itself facing an acute oil shortage and find itself increasingly dependent on anti-western governments in the Gulf.

Firstly, by the 1990s it was becoming clear that the rate of discovery of new potential oil fields was falling rapidly. Chronically low oil prices meant that there was little incentive to find new sources of oil. Also most of the most likely areas for the discovery of oil had already been searched. Secondly, and perhaps more importantly, the non-OPEC fields that had come on tap after the 'oil price shocks' of the 1970s, most notably those in the North Sea and Alaska, were reaching the end of their peak of production and were about to enter a period of decline. As a consequence, with continued economic growth increasing the demand for oil it was predicted that the West would become increasingly dependent on oil from the middle east and could face an oil crisis as soon as the year 2010.[7]

These fears that the current oil glut would give way to an oil shortage in perhaps little more than a decade had a decided influence on the evolution of US foreign policy towards the Gulf states and brought about a two-pronged approach. Firstly, it became clear that the policy of containment towards both Iraq and Iran would have to be brought to a conclusion in the medium term by bringing them back into the fold of the 'international (bourgeois) community'. Secondly, it was hoped that this policy of rehabilitation of these oil rich 'rogue Gulf states' could be complemented by developing the oil fields in Africa and the former USSR and by developing alternatives to oil such as natural gas and the 'hydrogen economy'.

However, there were major problems facing such a response to the future threat of a new oil crisis. Although all the main capitalist powers had an interest in maintaining a secure and reliable source of oil and, as a consequence, had fully supported the policy of containment of both Iraq and Iran, there was a distinct division of interests concerning how such containment should be brought to an end, particularly as regards Iraq. For the high-cost oil producers, the UK and the US, it had been important to keep as much Iraqi oil off the world market as possible in the short term in order to shore up the oil price. <snipped a bit explaining that other countries saw things differently>
Oil Wars and World Orders Old and New
 
Oil prices continue downward trend

http://www.dailystar.com.lb/article.asp?edition_id=10&categ_id=3&article_id=19568

LONDON: World oil prices fell sharply on Monday as Hurricane Wilma appeared to have missed energy facilities in the U.S. Gulf of Mexico, analysts said. Global energy demand growth in 2006, meanwhile, would be further eroded by the high price of oil, which should however, remain above $50 per barrel, the Center for Global Energy Studies said in an influential report.

New York's main contract, light sweet crude for delivery in December, dived $0.58 to $60.05 per barrel in pit trading on Monday.

Light sweet crude had slumped to $59.15 on Friday, the lowest level for three months. It has lost more than 16 percent of its value since hitting an historic $70.85 per barrel on August 30 after Hurricane Katrina battered U.S. Gulf Coast oil facilities.

In London, the price of Brent North Sea crude for December delivery shed $$0.48 to $58.00 per barrel in electronic deals on Monday.

"The market was back down almost a dollar and is expected to continue to weaken with Brent due to head to $55, and potentially $50 by the year-end depending on how cold the winter in the U.S. and Europe turns out to be," Sucden analyst Sam Tilley said.

Hurricane Wilma was downgraded Monday to a Category Two hurricane, weakening as it moved along the coast of southern Florida.


The hurricane "missed the key oil production facilities in the Gulf of Mexico," Tilley said.

Oil installations in the Gulf region were struck badly by Hurricane Katrina which made landfall on August 29.

Prices have since eased significantly on signs of weakening demand and a build-up in petroleum reserves in the U.S., the world's biggest energy user.

Elsewhere, traders were keeping an eye on Iraq, where oil exports were completely halted by a combination of insurgent attacks in the north and bad weather in the south.

Exports from the southern oil fields had been running at as much as 1.6 million barrels per day (bpd) while exports from the north had stood at 300,000 to 400,000 bpd.

The fact that Iraqi exports had stopped "would have been a worry in the past but there seems to be quite a lot of crude around at the moment," Bache Financial trader Christopher Bellew said.

The CGES, meanwhile, predicted that the pace of oil demand growth would slow in 2006 to 1.1 million barrels per day, or 1.3 percent. - AFP
 
Just to tell anyone who hasn't seen the thread:

9/11 and Peak Oil talks, coming up...

Leaving aside the 9/11 bit... the second talk is:

Peak Oil and a managed collapse.

with Tom Tibbets, Green Party Energy spokesperson and Shane Collins, Lambeth Green Party, Paul Ingrams GP Defence spokesperson

7.30pm Wednesday 7th December 2005

Vida Walsh Centre, 2B Saltoun Road, by Windrush Square, Brixton.

To book a seat email: lambethgreens@postmaster.co.uk
 
Shell profits boosted by oil price surge

http://www.guardian.co.uk/business/story/0,3604,1601816,00.html

Mark Tran
Thursday October 27, 2005

The oil giant Shell today reported bumper third quarter profits of $7.3bn (£4.13bn) as surging oil prices compensated for lost production after hurricanes hit the Gulf of Mexico.

Shell's profits for the three months to September 30 dwarfed the $4.4bn reported by rival BP earlier this week.

The profit figures - the equivalent of £1.5m an hour - mean the company has already made nearly as much in the first nine months of this year as it did in the whole of last year.

Between January and September, Shell - the world's third-largest oil company - made $17.5bn, compared to $17.6bn in the whole of 2004.
 
OPEC official: Spare capacity sufficient

http://www.businessweek.com/ap/financialnews/D8DJ1BB0V.htm?campaign_id=apn_home_down&chan=db

OCT. 31 8:01 A.M. ET The Organization of Petroleum Exporting Countries has "more than adequate" spare capacity to cover expected global demand this winter, acting Secretary-General Adnan Shihab-Eldin said Monday.

Shihab-Eldin told an energy conference in Moscow that the 11-member bloc's spare capacity is currently 2 million barrels a day, according to Dow Jones Newswires.

Shihab-Eldin said he expects OPEC to increase its output by a total of 12 million barrels a day over the next five years, faster than OPEC's expectations for global demand growth, which he estimated at 7 million to 8 million barrels a day.

He added, however, that he expects refining bottlenecks to put upward pressure on prices at least for the next two years. Shihab-Eldin said that global refining capacity won't match world demand growth until 2007. "OPEC itself has the reserves to meet ... growing oil requirements ... and to ensure that the market will be well supplied with crude at all times," Shihab-Eldin said.

The group has repeatedly voiced concerns about the inability of industrialized countries' refineries to cope with the increased volume of relatively high-sulfur, or sour, crude that its members and other major exporters such as Russia have shipped to world markets in recent years.

Shihab-Eldin repeated calls made last week for companies to invest more in refining and for governments to do more to encourage such investments.

Current high oil company profits don't seem to have translated into investments in refining so far, he added.

Separately, Russia's Industry and Energy Minister Viktor Khristenko told the conference that Russia would increase its oil production to 530 million tons per year by 2015, with annual exports of 310 million tons, Russian news reports said. Russia produced 459 million tons in 2004, while exporting 257.4 million tons.

Russia, which is set to assume the presidency of the Group of Eight leading industrialized nations next year, has promised to make energy security a priority topic.

Khristenko also noted that Russia would select its final list of partners to develop the giant Shtokman gas field in the Barents Sea in April 2006.

The Shtokman field is thought to hold some 3 trillion cubic meters of gas, which Russia plans to liquefy and sell to North American markets.
 
The group has repeatedly voiced concerns about the inability of industrialized countries' refineries to cope with the increased volume of relatively high-sulfur, or sour, crude that its members and other major exporters such as Russia have shipped to world markets in recent years.
So is that a failing in the refining industry or a failing in the supply industry? I see the shift away from light sweet towards heavier sour oil as an indication that supply is failing. Supply of what we really want light, sweet is failing and being replaced with stuff we don't want. Oh no the refineries can't process the (ample) supply of 'bad oil'... the current refining bottleneck is a symptom of peak oil not the beginning and end of the problem.

OPEC Reveal Global Light Sweet Crude Peaked
 
The Sunday Times Magazine, October 16, 2005
'Waiting for the lights to go out'

"We've taken the past 200 years of prosperity for granted. Humanity's progress is stalling, we are facing a new era of decay, and nobody is clever enough to fix it. Is the future really that black, asks Bryan Appleyard"

http://www.timesonline.co.uk/article/0,,2099-1813695,00.html

Every time I read an article like that I realise that Im still underestimating the problem. If stats in the article such as the ones below true, then hmmm, bye bye world:

"A barrel of oil contains the equivalent of almost 25,000 hours of human labour. A gallon of petrol contains the energy equivalent of 500 hours"
 
ASPO Fascist Tract

http://www.peakoil.ie/newsletters/588

Recent articles in the ASPO Newsletter have agreed that the explosion of world population from about 0.6 billion in 1750 to 6.4 billion today was initiated and sustained by the shift from renewable energy to fossil fuel (sic) energy in the Industrial Revolution. There is agreement that the progressive exhaustion of fossil fuel reserves will reverse the process, though there is uncertainty as to what a sustainable global population would be.

... a global population reduction of some 6 billion people is likely to take place during the 21st Century.

... probably before 2010 ... uncontrollable inflation and recession will spread round the world ...

In Third World nations ... a Darwinian struggle for shrinking resources of all kinds will be in full swing ... the imperative to survive will be driving strong groups to take what they want from weak ones. The concept of human rights will be irrelevant ...

It may well be that, in the West, the same argument will affect the thinking of militarily powerful nations ... Instantaneous nuclear elimination of population centres might even be considered merciful, compared to starvation and massacres prolonged over decades. Eventually, probably before 2150, world population will have fallen to a level that renewable energy, mainly biomass, can sustain ...

Probably the greatest obstacle to the scenario with the best chance of success (in my opinion) is the Western world’s unintelligent devotion to political correctness, human rights and the sanctity of human life. In the Darwinian world that preceded and will follow the fossil fuel era, these concepts were and will be meaningless. Survival in a Darwinian resource-poor world depends on the ruthless elimination of rivals, not the acquisition of moral kudos by cherishing them when they are weak.

So the population reduction scenario with the best chance of success has to be Darwinian in all its aspects, with none of the sentimentality that shrouded the second half of the 20th Century in a dense fog of political correctness ...

To those sentimentalists who ... are outraged at the proposed replacement of human rights by cold logic, I would say “You have had your day, in which your woolly thinking has messed up not just the Western world but the whole planet, which could, if Homo sapiens had been truly intelligent, have supported a small population enjoying a wonderful quality of life almost for ever. You have thrown away that opportunity.”

... The scenario is: Immigration is banned. Unauthorised arrives are treated as criminals. Every woman is entitled to raise one healthy child. No religious or cultural exceptions can be made, but entitlements can be traded. Abortion or infanticide is compulsory if the fetus or baby proves to be handicapped (Darwinian selection weeds out the unfit). When, through old age, accident or disease, an individual becomes more of a burden than a benefit to society, his or her life is humanely ended. Voluntary euthanasia is legal and made easy. Imprisonment is rare, replaced by corporal punishment for lesser offences and painless capital punishment for greater.

... The punishment regime would improve social cohesiveness by weeding out criminal elements.

... military forces should be maintained strong and alert ... Collaboration with other nations practising the same population reduction scenario would be of great mutual advantage.

ZEIG HEIL!
 
fascists seem to love peak oil - probably because they think it presents them with an excellent opportunity to gain power if there is panic and confusion during the peak.

The BNP has a analysis of peak oil linked from the front of their website, they've been attending all the conferences and are really pushing it. Scary stuff.

For every doomladen peak oiler pushing the 'survivalist fascist mayhem' solution there are others talking about permaculture and energy descent...

I'm not suddenly going to start ignoring statistics and evidence from ASPO even if they do publish malthusian bullshit like that article

for analysis relevent to Uk check out paul mobbs Energy Beyond Oil project:

http://www.fraw.org.uk/ebo/archive.html

We had him come and do some workhops, he's very interesting speaker, knows his shit
 
A helpful way [edited. originally "The proper way ..."] to appreciate the problem we face is to understand that it takes energy to get energy, and that we live off the difference.

The irreplaceable property of hydrocarbon is that the difference is huge. It takes a small amount of energy to access a huge amount of energy. That hugeness has allowed us to provide food (because we use some of it to make the fertilizer, pesticide and irrigation systems that quadruple yields over "virgin" soil) and year-round 20 degree living conditions at cold lattitudes for billions of people who otherwise would not be here.

From now on, it will take a small amount of energy to access a marginally larger amount of energy. There won't be enough to feed and warm us, let alone provide anything else we recognise as "civilisation".

We've been living off the proceeds of the sale of Granny's silverware, and we've had a great party. The silver has all gone now, and we are on the dole. Building lots and lots and lots of windfarms and hoping we get more energy is like cramming lots and lots and lots of people on the dole in a tenement and hoping they get wealthy.

Talk of fascists, conspiracies and perpetual motion science are just the psychological anaesthetic we self administer to control the pain of thermodynamic's first and second laws.
 
Zeig Heil indeed bigfish, what an insane article.

Appleyard's always been a miserable guy too, and he's getting old.

That's not to say we don't have huge issues to deal with over the next few decades, but these are recognised by a lot of people. I'm still young and, maybe, naive enough to think we can manage any transition were it to be necessary. But, as Appleyard says, right now it's a matter of faith because progress is never a given.

Edit: Interesting that Flintoff in the second half of that article talks so much about Cuba towards the end huh Bernie?
 
slaar said:
Ho hum.

http://www.guardian.co.uk/science/story/0,3605,1627424,00.html

All it takes is one discovery like this. If it works as the author suggests might be the case then it's the best thing to happen to the human race in the last 100 years.

Crikey. (very) Cautious optimism indeed. Sounds pretty dodgy though, there've been plenty of perpetual motion charlatans throughout history and we should always expect more...
 
Crispy said:
Crikey. (very) Cautious optimism indeed. Sounds pretty dodgy though, there've been plenty of perpetual motion charlatans throughout history and we should always expect more...
Odd you should mention perputual motion as I was thinking about it last night; energy cannot be destroyed, only transferred. The universe expands, collapses and then presumably explodes again. Therefore, is the universe not perpetual motion in, er, motion?

Derail over :D
 
Jangla said:
Odd you should mention perputual motion as I was thinking about it last night; energy cannot be destroyed, only transferred. The universe expands, collapses and then presumably explodes again. Therefore, is the universe not perpetual motion in, er, motion?

Derail over :D

Nope, the currently available evidence suggests that the universe will expand for ever, cooling down until there's just dead suns in a uniform soup of heat and matter. Sorry :(
 
Crispy said:
Crikey. (very) Cautious optimism indeed. Sounds pretty dodgy though, there've been plenty of perpetual motion charlatans throughout history and we should always expect more...
Indeed, there's a range of people interested though, and he has a US patent. Very cautious optimism is probably about right.
 
slaar said:
Indeed, there's a range of people interested though, and he has a US patent. Very cautious optimism is probably about right.

Well, hang on - can't we look up the patent on www.uspto.gov ?
I don't have the plugin installed here...

EDIT : Just did some searching.

http://www.uspto.gov/web/offices/com/sol/og/2000/week11/paterra.htm

"All reference to Patent No. 6,030,601 to Randell L. Mills of
Pennsylvania for HYDRIDE COMPOUNDS appearing in the Official Gazette of
February 29, 2000 should be deleted since no patent was granted."

Not sure if he managed to get another one in the mean time - there's no mention in the Guardian article. Aaargh! Look at the time! Back to work, Crispy...
 
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