Fossil Fuels

A ban on oil speculation?

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Joseph P. Kennedy II, former Congressional Representative from Massachusetts, and founder, chairman, and president of Citizens Energy Corporation, has a proposal to make energy affordable for all. All we have to do, Kennedy claims, is “bar pure oil speculators entirely from commodity exchanges in the United States.”

By what mysterious process can all this within-day buying and selling of “paper” energy be the factor that is responsible for both a price of oil in excess of $100/barrel and a price of natural gas at record lows below $2 per thousand cubic feet? I suspect the reason that Kennedy does not explain the details to us is because he does not have a clue himself.

Easing Off the Gas

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The Do the Math blog series has built the case that physical growth cannot continue indefinitely; that fossil fuel availability will commence a decline this century—starting with petroleum; that alternative energy schemes constitute imperfect substitutes for fossil fuels; and has concluded that a very smart strategy for us to adopt is to slow down while we sort out the biggest transition humans have ever faced. The idea is to relieve pressure on the system, avoid the Energy Trap, and give ourselves the best possible chance for a successful transformation to a stable future.

Transportation and the New Generation: Why Young People are Driving Less and What it Means for Transportation Policy

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From World War II until just a few years ago, the number of miles driven annually on America’s roads steadily increased. Then, at the turn of the century, something changed: Americans began driving less. By 2011, the average American was driving 6 percent fewer miles per year than in 2004. The trend away from driving has been led by young people.

Are oil subsidies worth the price?

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With peak oil moving closer globally and with oil prices spiking yet again (bouncing around over US$100 per barrel), subsidies become economically unsustainable. So the question becomes: at what point should a government begin to decrease an oil subsidy and how, if ever, can this be done without severely impacting the poorest?

The Trouble with Money

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Recently I was asked by a high school teacher if I had any ideas about why students today seem so apathetic when it comes to engaging with the world around them. I waggishly responded, “Probably because they’re smart.”

In my opinion, we’re asking our young adults to step into a story that doesn’t make any sense.

Commentary: The world is finite, isn’t it?

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Yesterday I gave a presentation to a group of distinguished business leaders. In my presentation, I tried to show that the global rate of production of petroleum and the associated lease condensate is at an all-time high or a "peak" that at a greatly expanded scale looks like a "plateau." I used my published, peer-reviewed extensions of King Hubbert’s approach to support my arguments.

I received a significant push back from several members of the audience.

 

The dumbest guys in the room: Is Cheniere Energy a contrarian indicator for natural gas?

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Some people seem to have a knack for hopping aboard a trend just before it ends. Cheniere Energy Inc., owner of the largest liquefied natural gas (LNG) import facility in the United States, appears to be a case in point. In the world of finance, Cheniere would be what is called a contrary indicator, one that suggests that a trend is about to reverse.

Let’s hear it for higher gasoline prices

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Gas prices are on the rise again, which means the “man on the street” will complain to local news reporters about greedy oil companies and foreign cartels, and energy-illiterate pundits and politicians will cry for domestic drilling with wild abandon. But is gasoline, now approaching $4 per gallon in Ohio, really expensive?

ODAC Newsletter – Apr 13

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The IEA poured oil on troubled waters, so to speak, in its April Oil Market Report this week, suggesting a possible “turning of the tide for market fundamentals”. The agency said supply is ahead of demand for the first time since 2009, though geopolitical threats remain…