Fossil Fuels

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…

Arctic Opening: Opportunity and Risk in the High North (report)

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Lloyd’s of London, the world’s biggest insurance market, has become the first major business organisation to raise its voice about huge potential environmental damage from oil drilling in the Arctic.

The City institution estimates that $100bn (£63bn) of new investment is heading for the far north over the next decade, but believes cleaning up any oil spill in the Arctic, particularly in ice-covered areas, would present “multiple obstacles, which together constitute a unique and hard-to-manage risk”.

Exponential Economist Meets Finite Physicist

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Some while back, I found myself sitting next to an accomplished economics professor at a dinner event. Shortly after pleasantries, I said to him, “economic growth cannot continue indefinitely,” just to see where things would go. It was a lively and informative conversation. I was somewhat alarmed by the disconnect between economic theory and physical constraints—not for the first time, but here it was up-close and personal. Though my memory is not keen enough to recount our conversation verbatim, I thought I would at least try to capture the key points and convey the essence of the tennis match—with some entertainment value thrown in.

Natural gas is a bridge to nowhere

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A new journal article finds that methane leakage greatly undercuts or eliminates entirely the climate benefit of a switch to natural gas. The authors of “Greater Focus Needed on Methane Leakage from Natural Gas Infrastructure” conclude that “it appears that current leakage rates are higher than previously thought” and “Reductions in CH4 Leakage Are Needed to Maximize the Climate Benefits of Natural Gas.”