Fossil Fuels

2011: Living in interesting times

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Some economists have high hopes for 2011. The stock market has broken 11,000 and many predict GDP growth. I don’t necessarily see a rising stock market and GDP as indicators of economic health, especially since the vast majority of stock market gains goes to a very small minority of people. The stock market may zoom, GDP may grow, but what will be happening to the majority of people – considering the forces and trends that are in play? Maybe it’s my pessimistic side, but I continue to have some major concerns about the economy…

Peak Coal: the Olduvai perspective

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Coal will not be able to replace the other fossil fuels. Whether extraction peaks in 2011 or in 2050, the probabilities of coal on its own being able to help the world avoid the Olduvai cliff are slim at best.

Certainly, this fossil fuel can still become more relevant as a fuel in some regions of the world.
This can occur in the US for instance, if reported reserves are anywhere near a geological reality. In such places, coal can provide time for a smoother transition to a fully renewable energy paradigm, but on a global scale, the panorama is entirely different.

For states or nations that are net importers today but do not possess realistic reserve perspectives, the use of coal is more a thing of the past than of the future.

Commentary: The Tierney-Simmons bet

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Five years ago, John Tierney, a columnist with The New York Times, and Matt Simmons, peak oil guru and founder of energy investment bank Simmons & Co., made a bet. Simmons argued that oil prices would be much higher in 2010. Tierney, a believer in human ingenuity and a follower of economist Julian Simon, took the other position. Simon, a so-called Cornucopian, argued that there would always be abundant supplies of energy and other natural resources and that the real price of commodities like oil would remain stable or decline over time.

Review: Prelude by Kurt Cobb

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Kurt Cobb has just released a page-turner of a first novel titled Prelude, which uses a Grisham-esque tale of suspense and intrigue to educate the public about peak oil. Prelude’s main character is a young energy analyst who discovers a top-secret report shedding light on the true, precarious state of the world’s oil reserves….Allegorically named Cassie, she stands for all of the real-life Cassandras within the peak oil movement, who, like the Cassandra of Greek myth, are able to foresee disaster but so far seem cursed never to be believed.

The extremely leisurely pace of American democracy and the urgency of our predicament

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Winston Churchill once remarked that “[t]he United States invariably does the right thing, after having exhausted every other alternative.” The assumption behind that remark is that there will be time to do the right thing after all alternatives have been exhausted. This assumption is especially troubling when it comes to addressing such issues as peak oil and climate change.

ODAC Newsletter – Jan 7

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2011 blew in with strong echoes 2008 as food and fuel prices rose strongly. The UN warned food prices are reaching “dangerous levels” as the global food index rose above the level that caused widespread rioting three years ago, and the IEA’s Fatih Birol cautioned rising oil prices could derail the economic recovery. WTI is around $88/barrel and Brent crude almost $94.

The Queensland flood is coming to your neighborhood

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With the global oil markets tight and prices rising, any new source of demand could easily have an outsized impact on oil prices in the next few months, right down to what you pay for gasoline at your local pump. As the global energy markets become tighter and tighter, a flood on the other side of the world is enough to trigger off a shock wave that will be felt everywhere.