Archive for the ‘Peak Oil’ Category

Govt must get serious about peak oil

Tuesday, March 2nd, 2010

- It’s the same everywhere.  This is from a New Zealand newspaper.

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John de Bueger looks at the implications of “peak oil” and suggests New Zealand should be getting serious about it.

A predictable howl erupted when it was announced that some parts of the conservation estate might be opened-up to small-scale mineral extraction.

This contrasted markedly with the barely audible mutterings from the same quarter when Gerry Brownlee announced late last year that offshore oil exploitation from our continental shelf held the key to future prosperity, with likely annual exports of tens of billions of dollars.

Given that the Zealandia plate on which these islands float is about one-third the size of Australia, it follows that the potential of offshore oil and minerals dwarfs any onshore prospects, even if it was Otago placer gold that kick-started this country’s economic development.

My initial suspicion was that thoughts of mining in national parks was a just a decoy tactic to redirect eyes onshore while the foreshore and seabed issue was being thrashed out, but perhaps this is being a little too Machiavellian.

It is more likely that our Minister of Energy has little or no idea of the real worth of untapped oil reserves (anywhere), given the coming realities of peak oil.

When he was asked some questions on this matter at an energy conference late last year, he gave the impression that even if he had heard of the concept, he certainly hadn’t mastered its implications.

In this respect Gerry is exhibiting the archetypal behavioural response of the caveman – a condition I hasten to add that he shares with 95% of the human race, and 100% of politicians.

That is a total inability to rationally weigh the seriousness of future risks against pressing short-term expediency.

- More… :arrow:

- Research thanks to Tony H.

The world according to ExxonMobil

Monday, February 15th, 2010

- The big insurance companies like Lloyd’s of London have a vested interest in getting their analyses right as they have big money riding on their predictive skills.

- One might argue that a company like Exxon might have a greater interest in ’spinning’ their analyses.  But, they have to get it right with the version they’re using behind closed doors.   Here’s what they are publicly saying.   Makes for interesting reading.

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ExxonMobil – known as the world’s largest, most efficient, and most profitable oil company – has its own distinctive way of looking at the world. In its starkly realistic annual “Outlook for Energy”, it concludes that until 2030: CO2 emissions will continue to grow, fossil fuels will continue to dominate energy supply, and solar power, electric cars and carbon capture & storage will not become cost-competitive. But the company is not without idealism: it believes in the power of efficiency, dreams of turning algae into oil and favours a carbon tax over a cap-and-trade policy.

Todd Onderdonk, Senior Energy Adviser at ExxonMobil

Every year, energy giant ExxonMobil presents its own “Outlook for Energy”, its view of the world’s energy future until 2030. Although ExxonMobil’s outlook is based on essentially the same historical data as similar “outlook” reports from the International Energy Agency in Paris and the Energy Information Administration (EIA) in Washington, it offers in many ways a different – and fascinating – perspective on the world. It may well be – although this is something no one can say for sure – a more realistic, anticipatory vision than the one offered by the “official” energy institutions.

Todd W. Onderdonk, Senior Energy Adviser in ExxonMobil’s Corporate Strategic Planning Department, and one of the main authors of the “Outlook for Energy”, explains the uniqueness of ExxonMobil’s report as follows: ‘The energy outlooks of some key government institutions typically reflect a set of certain policy assumptions, which help provide a wide bracket of possible outcomes rather than a forecast of what is likely to happen by 2030. For example, they often provide a baseline outlook that assumes no changes in energy policy. By comparison, in developing an outlook to guide our long-term investment decisions, we have to take a view on how policies, energy markets and technology are likely to evolve through 2030 to address economic, energy and environmental challenges worldwide.

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- Research thanks to Mike D.

China: The new Big Oil

Friday, August 21st, 2009

The country is snapping up oil fields from Africa to South America to the Middle East. Soon it may be able to rival the Western giants.

NEW YORK (CNNMoney.com) — China is on an oil buying binge.

Over the past few months, the Chinese government — or its big government-controlled oil firms — have closed or floated a slew of deals in countries all over the world. These deals have expanded the nation’s oil reach and may one day position the nation to match the skills of western oil firms.

The deals include a $10 billion loan the Chinese government extended to Russia’s Rosneft in exchange for a guaranteed cut of that company’s production. The Chinese have also gotten in tight with Brazil’s Petrobras, arranging a similar deal with the firm that is developing a huge new offshore field – one of the biggest new discoveries in decades.

But it doesn’t end with loans. Last week the Wall Street Journal reported that China National Petroleum Corporation is interested in buying all or a part of Argentina’s YPF for $14.5 billion, although a deal is far from certain.

In Africa, CNOOC and Sinopec are buying a $1.3 billion stake in offshore Angolan development rights from American oil firm Marathon. Angola has recently overtaken Nigeria as Africa’s biggest oil producer, and is one of Exxon Mobil’s (XOM, Fortune 500) favorite countries to invest in.

And rumors are swirling that the China National Petroleum Corporation will take the majority stake in Iraq’s Rumaila oilfield from BP (BP). Rumaila produces over 1 million barrels a day, and is Iraq’s biggest oil field.

It’s clear what the Chinese are doing.

“They are stilting on a huge pile of cash and they’re using this as a buying opportunity,” said Greg Priddy, a global energy analyst at the Eurasia group, a political risk consultancy.

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BP stand for “back to petroleum” — oil giant shuts clean energy HQ, slashes renewables budget up to $900 million this year, dives into tar sands

Sunday, August 16th, 2009

You just can’t teach an old petro-dog re-new-able tricks.

The UK’s Guardian reports:

BP has shut down its alternative energy headquarters in London, accepted the resignation of its clean energy boss and imposed budget cuts in moves likely to be seen by environmental critics as further signs of the oil group moving “back to petroleum”.

Sad, but not terribly original or surprising (see “Shell shocker: Once ‘green’ oil company guts renewables effort“).

But Tony Hayward, the group’s chief executive, said BP remained as committed as ever to exploring new energy sources and the non-oil division would benefit from the extra focus of being brought back in house….

“It saves money and brings it closer to home … you could almost see it as a reinforcement [of our commitment to the business],” he said.

Paging Dr. Cal Lightman!

Seriously, they gut the program and claim it is “reinforcement” of their commitment.  Perhaps BP stands for “Beyond Prevarication” or “Beyond Pinocchio.”

In the business world, “money talks, bullsh!t walks” — so let’s follow the money (as it departs the BP clean energy biz):

BP Alternative Energy was given its own headquarters in County Hall opposite the Houses of Parliament two years ago and its managing director, Vivienne Cox, oversaw a small division of 80 staff concentrating on wind and solar power.

But the 49-year-old Cox -– BP’s most senior female executive, who previously ran renewables as part of a larger gas and power division now dismantled by Hayward -– is standing down tomorrow.

This comes alongside huge cuts in the alternative energy budget – from $1.4bn (£850m) last year to between $500m and $1bn this year….

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Russia to build floating Arctic nuclear stations

Saturday, May 9th, 2009

- I’ve written about this looming problem of competition for resources in the Arctic before: :arrow: , :arrow: , :arrow: , :arrow: , :arrow: , and :arrow: .

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Environmentalists fear pollution risk as firms try to exploit ocean’s untapped oil and gas reserves

Russia is planning a fleet of floating and submersible nuclear power stations to exploit Arctic oil and gas reserves, causing widespread alarm among environmentalists.

A prototype floating nuclear power station being constructed at the SevMash shipyard in Severodvinsk is due to be completed next year. Agreement to build a further four was reached between the Russian state nuclear corporation, Rosatom, and the northern Siberian republic of Yakutiya in February.

The 70-megawatt plants, each of which would consist of two reactors on board giant steel platforms, would provide power to Gazprom, the oil firm which is also Russia’s biggest company. It would allow Gazprom to power drills needed to exploit some of the remotest oil and gas fields in the world in the Barents and Kara seas. The self-propelled vessels would store their own waste and fuel and would need to be serviced only once every 12 to 14 years.

In addition, designers are known to have developed submarine nuclear-powered drilling rigs that could allow eight wells to be drilled at a time.

Bellona, a leading Scandinavian environmental watchdog group, yesterday condemned the idea of using nuclear power to open the Arctic to oil, gas and mineral production.

“It is highly risky. The risk of a nuclear accident on a floating power plant is increased. The plants’ potential impact on the fragile Arctic environment through emissions of radioactivity and heat remains a major concern. If there is an accident, it would be impossible to handle,” said Igor Kudrik, a spokesman.

Environmentalists also fear that if additional radioactive waste is produced, it will be dumped into the sea. Russia has a long record of polluting the Arctic with radioactive waste. Countries including Britain have had to offer Russia billions of dollars to decommission more than 160 nuclear submarines, but at least 12 nuclear reactors are known to have been dumped, along with more than 5,000 containers of solid and liquid nuclear waste, on the northern coast and on the island of Novaya Zemlya.

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- Hat tip to Cryptogon for this story

Nuclear Power Cannot Solve Climate Change

Wednesday, April 8th, 2009

A new report finds that nuclear power plants cannot be built quickly enough and in a safe and secure manner to be a major global solution for climate change

Nuclear power plants cannot be built quickly enough and in a safe and secure manner to be a major global solution for climate change, according to a report released yesterday from the Carnegie Endowment for International Peace.

The report says the nuclear industry, under current policies and financing, won’t be able to build enough new reactors to make a difference in climate in the next 20 years.

“Without major changes in government policies and aggressive financial support, nuclear power is actually likely to account for a declining percentage of global electricity generation,” the report says.

The International Energy Agency’s World Energy Outlook 2008 projects that without policy changes, nuclear power’s share of worldwide electricity generation will drop from 15 percent in 2006 to 10 percent in 2030.

But policymakers should be aware of the timeline, costs and risks nuclear power brings as compared to the possible benefits, before expending a tremendous amount of resources on it, the report says.

Bottlenecks in the nuclear supply chain, weak infrastructure in developing countries and tighter credit risk management strategies in the wake of the economic crises will severely limit all countries’ capabilities to significantly expand their nuclear fleet, while the current fleet of reactors is likely to be retired by 2030, the report said.

The earliest the first new U.S. reactor could be finished is 2015, but the report notes that it takes about 10 years to put a new plant in service, from licensing to connection to the grid. In two dozen countries that are interested in obtaining civil nuclear energy but have not previously built a reactor, it will take even longer, the report says.

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Global crisis ‘to strike by 2030′

Wednesday, April 8th, 2009

Growing world population will cause a “perfect storm” of food, energy and water shortages by 2030, the UK government chief scientist has warned.

By 2030 the demand for resources will create a crisis with dire consequences, Prof John Beddington said.

Demand for food and energy will jump 50% by 2030 and for fresh water by 30%, as the population tops 8.3 billion, he told a conference in London.

Climate change will exacerbate matters in unpredictable ways, he added.

‘Complacent’

“It’s a perfect storm,” Prof Beddington told the Sustainable Development UK 09 conference.

“There’s not going to be a complete collapse, but things will start getting really worrying if we don’t tackle these problems.”

Prof Beddington said the looming crisis would match the current one in the banking sector.

“My main concern is what will happen internationally, there will be food and water shortages,” he said.

“We’re relatively fortunate in the UK; there may not be shortages here, but we can expect prices of food and energy to rise.”

The United Nations Environment Programme predicts widespread water shortages across Africa, Europe and Asia by 2025.

The amount of fresh water available per head of the population is expected to decline sharply in that time.

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What we need vs. what we’ll get

Friday, April 3rd, 2009

- The current G-20 meeting has stirred a lot of commentary and hope.   The world has a lot of problems and there’s always the possibility and the hope, when a significant number of world leaders come together to talk about those problems, that they’ll make decisions that will improve things.The Browns and the Obamas

- Below, is an analysis by George Friedman of STRATFOR of the G-20 meeting and what’s likly to come out of it along with a look at a follow-on NATO meeting and an Obama-EU summit.  There’s even discussion of President Obama’s upcoming visit to Turkey, which will be his last stop on his current international trip.

- Other commentators might go through these same subjects; G-20, NATO, EU and Turkey and come to somewhat different conclusions about their meanings and prospects but I seriously doubt that anyone could seriously avoid my final conclusion – that what the world needs is not what the world is going to get out of all these meetings and pontifications.

- In the near-term, we need unified global strategies to pull the world out of the current economic melt-down.

- And, following immediately on the heels of such economic repairs, we need a deep recognition that mankind’s current dominate economic system, Capitalism, even when working well,  cannot continue as it is currently configured.   Its fundamental requirements of continuing growth and consumption to fuel itself, are axiomatically inconsistent with the fact that we live on a planet with finite resources.

- And, once we’ve rethought our basic economic systems and globally began to reorient them into something that focuses on sustainability rather than growth, then we need to move onto how we, globally, are going to defuse all the ecological and climatic destruction we’ve set in motion which is threatening to reset our climate and to initiate another major ecological die-off like the one that took out the dinosaurs 65 million years ago.

- That’s all.  It’s not much to ask, right?   Surely,the best and the brightest of our national leaders can see that these are the paths forward?

- Well, I wish I thought so, but I don’t.  Friedman’s analysis makes clear that in spite of the fact that we need radical new thinking, these meetings will end up driven by narrow national interests as nation jockeys against nation to see who’s going to do the work and pay the bills.

There’s your future, folks.- It’s as if we’re all sitting in a lifeboat at sea and we’re having meeting after meeting about how to best arrange the seating in the boat to determine who has to row and who gets to just sit and benefit. And all the time, the boat is slowing but inexorably sinking but no one can be bothered to talk about that because… because?     Damned if I know.

- Here’s George Freidman’s analysis.   See what you think:

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Three major meetings will take place in Europe over the next nine days: a meeting of the G-20, a NATO summit and a meeting of the European Union with U.S. President Barack Obama. The week will define the relationship between the United States and Europe and reveal some intra-European relationships. If not a defining moment, the week will certainly be a critical moment in dealing with economic, political and military questions. To be more precise, the meeting will be about U.S.-German relations. Not only is Germany the engine of continental Europe, its policies diverge the most sharply from those of the United States. In some ways, U.S.-German relations have been the core of the U.S.-European relationship, so this marathon of summits will focus on the United States and Germany.

Although the meetings deal with a range of issues — the economy and Afghanistan chief among them — the core question on the table will be the relationship between Europe and the United States following the departure of George W. Bush and the arrival of Barack Obama. This is not a trivial question. The European Union and the United States together account for more than half of global gross domestic product. How the two interact and cooperate is thus a matter of global significance. Of particular importance will be the U.S. relationship with Germany, since the German economy drives the Continental dynamic. This will be the first significant opportunity to measure the state of that relationship along the entire range of issues requiring cooperation.

Relations under Bush between the United States and the two major European countries, Germany and France, were unpleasant to say the least. There was tremendous enthusiasm throughout most of Europe surrounding Obama’s election. Obama ran a campaign partly based on the assertion that one of Bush’s greatest mistakes was his failure to align the United States more closely with its European allies, and he said he would change the dynamic of that relationship.

There is no question that Obama and the major European powers want to have a closer relationship. But there is a serious question about expectations. From the European point of view, the problem with Bush was that he did not consult them enough and demanded too much from them. They are looking forward to a relationship with Obama that contains more consultation and fewer demands. But while Obama wants more consultation with the Europeans, this does not mean he will demand less. In fact, one of his campaign themes was that with greater consultation with Europe, the Europeans would be prepared to provide more assistance to the United States. Europe and Obama loved each other, but for very different reasons. The Europeans thought that the United States under Obama would ask less, while Obama thought the Europeans would give more.

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- research thanks to Michael M.

Biofuels Boom Could Fuel Rainforest Destruction, Researcher Warns

Sunday, March 15th, 2009

Farmers across the tropics might raze forests to plant biofuel crops, according to new research by Holly Gibbs, a postdoctoral researcher at Stanford’s Woods Institute for the Environment.

“If we run our cars on biofuels produced in the tropics, chances will be good that we are effectively burning rainforests in our gas tanks,” she warned.

Policies favoring biofuel crop production may inadvertently contribute to, not slow, the process of climate change, Gibbs said. Such an environmental disaster could be “just around the corner without more thoughtful energy policies that consider potential ripple effects on tropical forests,” she added.

Gibbs’ predictions are based on her new study, in which she analyzed detailed satellite images collected between 1980 and 2000. The study is the first to do such a detailed characterization of the pathways of agricultural expansion throughout the entire tropical region. Gibbs hopes that this new knowledge will contribute to making prudent decisions about future biofuel policies and subsidies.

Gibbs presented her findings in Chicago on Feb. 14, during a symposium at the annual meeting of the American Association for the Advancement of Science. The symposium was titled “Biofuels, Tropical Deforestation, and Climate Policy: Key Challenges and Opportunities.”

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Clean Power From Deserts

Sunday, March 1st, 2009

- These technologies are out there.  We just need the political will to implement and use them.

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by Dr. Gerry Wolff


Close up view of parabolic trough and heat collector.

Concentrating Solar Power (CSP) is the remarkably simple technique of arranging mirrors to concentrate sunlight and using the resulting heat to raise steam to drive turbines and generators, just like a conventional power station. CSP works best where there is direct sunshine and lots of it, as in deserts.Solar heat may be stored in melted salts (e.g. nitrates of sodium or potassium) so that electricity generation may continue at night or on cloudy days. And gas or biofuels may be used as a stop-gap source of heat when there is not enough sun. With facilities for storing solar heat and hybridisation with other sources of heat, CSP can provide any combination of base load power, intermediate load or peaking power. This is a great advantage for power engineers trying to match supplies of electricity to demands for electricity which are constantly varying.

The potential

CSP plants have been supplying electricity in California since the mid 1980s, new plants came on stream recently in Spain and Nevada, and others are now being planned or built in many places around the world.

The potential is enormous. Every year, each square kilometre of desert receives solar energy equivalent to 1.5 million barrels of oil. Multiplying by the area of deserts worldwide, this is several hundred times the entire current energy consumption of the world. It has been calculated that less than 1 per cent of the world’s deserts, if covered with CSP plants, would produce as much electricity as is now used by the whole world.

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