V
vern_humphrey
Guest
I wonder if those who blame “Big Oil,” “Wall Street”, Wal-Mart and so on for all the evils of the world realize how far they’d fall in the morning if all those booger-bears really were hiding under their beds.
Doug, my father was at a banquet last night for the Oxford-Cambridge Boat Race (we are both old Oxonians). At his table was a conservative (Republican) oil corporation executive, gentle, quiet, and not given to hyperbole or doomsday talk. My father broached the conversation of affordable oil, and the executive said matter-of-factly “We are at peak right now.” He said also that while Cheney and others know about this fact, the government at present has no plan on the table for dealing with the chaos that will potentially erupt a few years down the line, when people can’t get to work, when food can’t be delivered to supermarkets, and when the tax based falls out from under fire, police, and other emergency protection."Petroleum Trends
The oil market will remain fairly stable in the very near term, but with steadily increasing prices as world production approaches its peak. The doubling of oil prices from 2003-2005 is not an anomaly, but a picture of the future. Oil production is approaching
its peak; low growth in availability can be expected for the next 5 to 10 years. As worldwide petroleum production peaks, geopolitics and market economics will cause even more significant price increases and security risks. One can only speculate at the outcome from this scenario as world petroleum production declines.
The question is, are we at peak because the world is running out of oil, or because we are blocked from finding and using the oil reserves that still exist in abundance?Doug, my father was at a banquet last night for the Oxford-Cambridge Boat Race (we are both old Oxonians). At his table was a conservative (Republican) oil corporation executive, gentle, quiet, and not given to hyperbole or doomsday talk. My father broached the conversation of affordable oil, and the executive said matter-of-factly “We are at peak right now.” He said also that while Cheney and others know about this fact, the government at present has no plan on the table for dealing with the chaos that will potentially erupt a few years down the line, when people can’t get to work, when food can’t be delivered to supermarkets, and when the tax based falls out from under fire, police, and other emergency protection.
I assume that for this executive “peak oil” refers to the maximum rate of extraction of the resource. Oil pumping will never take place at the same rate as now, even though global demand for oil will continue to rise.The question is, are we at peak because the world is running out of oil, or because we are blocked from finding and using the oil reserves that still exist in abundance?
Is that “maximum rate of extraction” with drilling off the Atlantic and Pacific coasts, off the coast of Florida and in the Arctic, or without it?I assume that for this executive “peak oil” refers to the maximum rate of extraction of the resource. Oil pumping will never take place at the same rate as now, even though global demand for oil will continue to rise.
Petrus
(1) I’ll let the oil professionals (Doug, DeeDee) answer this, but I think it means maximum, period. Even when modest offshore finds are made, the cost of drilling in deep water or in the Arctic will delay production long enough that we will never be able to extract oil at the global rate we do today.Is that “maximum rate of extraction” with drilling off the Atlantic and Pacific coasts, off the coast of Florida and in the Arctic, or without it?
Does it factor in a serious move to build new nuclear plants and make our electric power completely free of dependency on fossil fuels?
To quote Uncle Herbivore, “However long it takes, if we don’t start until tomorrow, it will take a day longer.”(1) I’ll let the oil professionals (Doug, DeeDee) answer this, but I think it means maximum, period. Even when modest offshore finds are made, the cost of drilling in deep water or in the Arctic will delay production long enough that we will never be able to extract oil at the global rate we do today.
Nuclear power is relevant because we have a lot of oil-burning power plants. It is also relevant if we wish to have more electricity to do things now done by gasoline engines.(
(2) Nuclear power is relevant to the discussion of the peak of oil only to the extent that massive nuclear facilities will be needed to create steam to help in extracting tar from the Athabasca tar sands. After oil, of course, nuclear might be the only thing standing between civilization and the brink of Olduvai Gorge.
Petrus
Absolutely right. On both counts.To quote Uncle Herbivore, “However long it takes, if we don’t start until tomorrow, it will take a day longer.”
Nuclear power is relevant because we have a lot of oil-burning power plants. It is also relevant if we wish to have more electricity to do things now done by gasoline engines.
We should be fully nuclear – the only exceptions being hydro-electric and similar sources.Absolutely right. On both counts.
In the forestry business, when considering that trees take 30 years or 50 years to grow … we don’t have a second to waste.
And absolutely right about nukes. There are a lot of processes that are easy to electrify … all we need is a large quantity of really cheap electricity. The only reason why nuclear power is expensive is that the NRC and other agencies required change order after change order. Delaying what should be no more than a four year process from start to finish to over ten years.
Every railroad could and should be electrified. At one time there were many more electrified railroads than there are now, but cheap diesel power made maintaining the overhead catenaries less financially feasible in comparison with diesel power.
[There needs to be some way of transporting overheight/oversized loads … the overhead wires will be a problem in some cases.]
Every house and office can be heated with electric power … either with heat pumps or with resistance heaters (not the cheapest way to go), but if the electricity was available, it could be done.
Etc, etc, etc.
It’s not about running out of oil. It’s very much like Dr Hirsch said, if you listened to the interview, the world uses sooooo much oil today that huge finds don’t mount to a heck of a lot. For example, suppose there is 33 billion barrels of recoverable oil that hope for of Brazil. The world uses 31 billion per year so that find gives you another year’s supply. According to the Hirsch report to the DOE if a crash program were implimented today it’d still take 20 years to solve the “peaking of world oil production”. That’s the point were you’ve reached your maximum production, not the point were oil is no longer coming out of the ground. The oil embargo caused about a 5% decrease in world production but look at what that 5% decrease did to the US economy at the time. That’s the problem. It only took a small decrease to have a big affect on the economy. Today the US economy is more dependent on oil due to commuters driving further miles per year.The problem is, we are not out of oil.
We have potentially huge reserves on the Atlantic and Pacific coasts, and off the coast of Florida – but the environmentalists won’t let us drill there. They can’t stop the Chinese, however, who are drilling off the coast of Florida with license from Cuba.
We have oil in the Arctic – and we can’t even do an up-to-date survey, thanks to the environmentalists.
If we produce the oil, we lack the refinery capacity. We haven’t built a refinery in about 30 years, thanks to the environmentalists.
We haven’t build a nuclear plant in 30 years, thanks to the environmentalists.
The US, which invented nuclear power, is about 17% nuclear. France is about 75% – and they have newer, safer reactors than we do.
As Uncle Herbivore said, “However long it takes, if we wait until tomorrow to start, it will take one day longer.”It’s not about running out of oil. It’s very much like Dr Hirsch said, if you listened to the interview, the world uses sooooo much oil today that huge finds don’t mount to a heck of a lot. For example, suppose there is 33 billion barrels of recoverable oil that hope for of Brazil. The world uses 31 billion per year so that find gives you another year’s supply. According to the Hirsch report to the DOE if a crash program were implimented today it’d still take 20 years to solve the “peaking of world oil production”.
And less domestic resources – despite having many areas where we could drill.That’s the point were you’ve reached your maximum production, not the point were oil is no longer coming out of the ground. The oil embargo caused about a 5% decrease in world production but look at what that 5% decrease did to the US economy at the time. That’s the problem. It only took a small decrease to have a big affect on the economy. Today the US economy is more dependent on oil due to commuters driving further miles per year.
Which is why we should seek to maximize our own supplies.Our economy (really the world economy) is based upon debt. Most everyone has a loan. What pays off all these loans? A growing economy does which is why recessions are tough on morgages. Growing GDPs are linked to growing oil supplies.
The Vizer had angered the Sultan, who condemned him to death. The Vizer said, “I can teach your favorite horse to sing.”Worldwide there are 439 nuclear power plants. To meet the energy needs expected by 2050 it will take the equivolent of 10,000 producting a gigawatt each. If you tried to run 10,000 plants using lightwater reactors how long would the available uranium supplies last? If Dr. Goodstein’s analysis is correct about two decades.
The US is a much bigger country. Which is why we use percentages to compare one country to another.20% of the uses electric generation is from nukes, or 1 in 5 homes. But the US produces 102,162 MWe of nuclear powere while France produces 62,466 MWe, Spain 7,400 MWe, United Kingdom 14,620 MWe, and Germany 21,931 MWe. The US produces almost as much as those 3 countries combined.
Amen. And the Vizier story was quite funnyAs Uncle Herbivore said, “However long it takes, if we wait until tomorrow to start, it will take one day longer.”
The Vizer had angered the Sultan, who condemned him to death. The Vizer said, “I can teach your favorite horse to sing.”
The Sultan said, “Very well. I will give you everything you need.
But if at the end of the year, if the horse doesn’t sing, off comes your head.”
So the Vizer lived in luxury. But a friend said, “Are you crazy? You’re on death row.”
And the Vizer said, “In a year, anything can happen. The Sultan may die. I may die. Or . . . the horse may learn to sing.”
And in 20 years, anything may happen.
The US is a much bigger country. Which is why we use percentages to compare one country to another.
If we hadn’t had a 30-year moratorium on nuclear plants, we’d be there now.
I don’t see how the oil executive or Cheney either one, could have a plan in the face of the solid opposition of Dems and environmentalists to developing resources or changing sources.Doug, my father was at a banquet last night for the Oxford-Cambridge Boat Race (we are both old Oxonians). At his table was a conservative (Republican) oil corporation executive, gentle, quiet, and not given to hyperbole or doomsday talk. My father broached the conversation of affordable oil, and the executive said matter-of-factly “We are at peak right now.” He said also that while Cheney and others know about this fact, the government at present has no plan on the table for dealing with the chaos that will potentially erupt a few years down the line, when people can’t get to work, when food can’t be delivered to supermarkets, and when the tax based falls out from under fire, police, and other emergency protection.
A colleague of his has an even darker take on this, opining that in 3,000 there won’t be any humans left (snuffed out by resource wars and famines). I don’t buy that, since there are still primal tribes in the Amazon not dependent on petro-civilization. I suspect we may have a great-die-off of much of the present 6.6 billion, but that we will see the survival of pockets of fairly civilized life, particularly in temperate zones that are bioregionally self-sufficient. And who knows – perhaps some of our artistic civilization and technological skills and even our theology will be preserved as well. I don’t think the end of oil will issue in an apocalyptic meltdown of everything!
Optimistically yours,
Petrus
The fact is the modern world depends on oil, natrual gas, and coal. But 90+% of transpertation is dependent upon oil. Oil is the main energy source that runs modern economies. If world oil supplies decline 5% then, I believe along with others like Hirsch, you can expect to see a 5% decline in global GDP.I don’t see how the oil executive or Cheney either one, could have a plan in the face of the solid opposition of Dems and environmentalists to developing resources or changing sources.
“Pockets of fairly civilized life” where “perhaps some of our artistic civilization and tech skills and even our theology will be preserved…” Assuming, as doomsdayers seem to stubbornly insist, that no new resources or more efficient uses can be developed, the worst case scenario is the late 19th century with curiously advanced technologies powered by the non-petroleum power sources of that era. (Well, maybe there’ll be enough oil left to avoid having to grease train wheels with mutton fat.) Interestingly, a very substantial portion of the U.S. was more heavily populated then than now, the art was more pleasing and the theology less compromised.
I have every confidence Vern can survive quite well in that environment. I know I can. But I have more faith in human ingenuity than to believe that’s where we’re headed.
I do hope the Oxonians enjoyed their after-boat-race banquet while they condemned the rest of us to death. Seems they likely enjoyed that even more than they enjoyed the Chateau Petrus.
Ricmt, I own an an independent oil and gas company. That’s what I do for the bulk of my income. My family was in the drilling business for 52 years. What makes Vern have more knowledge and intuition about developing prospects, drilling, completion, and then bringing a field’s supply to market than I?Amen. And the Vizier story was quite funny![]()
Here’s a graph of US oil production which peaked in 1970. The green line 1980s is Alaska’s Prudhoe Bay production coming on line. It reversed the downward trend but it didn’t get the US back to being independent on petroleum. Drilling in deep water won’t either.Is that “maximum rate of extraction” with drilling off the Atlantic and Pacific coasts, off the coast of Florida and in the Arctic, or without it?
What do you mean by Dems? I would have bet that Al Gore would have bounteously supported alternative energy research and not focus on giving tax cuts for the wealthy.I don’t see how the oil executive or Cheney either one, could have a plan in the face of the solid opposition of Dems and environmentalists to developing resources or changing sources.
“Pockets of fairly civilized life” where “perhaps some of our artistic civilization and tech skills and even our theology will be preserved…” Assuming, as doomsdayers seem to stubbornly insist, that no new resources or more efficient uses can be developed, the worst case scenario is the late 19th century with curiously advanced technologies powered by the non-petroleum power sources of that era. (Well, maybe there’ll be enough oil left to avoid having to grease train wheels with mutton fat.) Interestingly, a very substantial portion of the U.S. was more heavily populated then than now, the art was more pleasing and the theology less compromised.