Fossil Fuels

Commentary: I. Collapse? Really?

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Collapse is a scary word, and some people doubt it is even relevant to us. Obviously we are facing some major challenges in this century. Does that mean collapse? What is collapse, exactly? When societies have collapsed, what actually happened? How bad is it? Are there ways of reducing the badness? While historic events can’t give a totally accurate picture of the future, they can at least give us some ground to stand on.

World energy consumption since 1820 in charts

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In this post, I provide…charts showing long-term changes in energy supply, together with some observations regarding implications. One such implication is how economists can be misled by past patterns, if they do not realize that past patterns reflect very different energy growth patterns than we will likely see in the future.

ODAC Newsletter – Mar 16

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Finally, a plausible explanation for the Obama-Cameron political orgy — ‘love-in’ doesn’t quite do it — in Washington this week. For Cameron the benefit of this floorshow was obvious — like Blair with Bush, revelling in the reflected glory of US power — but Obama’s motive remained a mystery. What could possibly justify gifting all that folderol and face time with the world’s most powerful man? Yesterday we got the answer: international cover for a politically motivated release from strategic petroleum reserves, that’s what.

The peak oil crisis: surging gasoline

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The Washington Post is beginning to understand the realities underlying America’s gasoline price problem and look behind the political bombast far enough to develop a somewhat realistic appraisal of our energy situation.

However, the newspaper has to take one more giant step before it comes completely in touch with reality. One searches in vain for any mention in a recent article that conventional petroleum production, from which our high-priced gasoline is made, has been stagnant for the last six years – i.e. global oil production is peaking. Once this threshold is crossed we (the press, the administration, political candidates, and the body politic) can begin a meaningful discussion of our options for the future.

Home Heating for the Hardy

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If you are on-board with the sentiment that we should strive to reduce the amount of energy we consume as a means to relieve pressure on a world suffering impending energy scarcity, then you probably want to know how one might proceed. In this post, I will describe the single-biggest energy-saving strategy I have employed in my home in the past five years, which slashed my natural gas consumption by almost a factor of five.

Has the global economy become less vulnerable to oil price shocks?

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This paper examines the impact of oil price changes on global economic growth. Unlike some recent studies, this paper finds that oil price rises have had significant negative impacts on world economic growth. A time-series analysis of the data from 1971 to 2010 finds that an increase in real oil price by 10 dollars is associated with a reduction of world economic growth rate by between 0.4 and 1% in the following year. As oil prices approach historical highs, the global economy may be vulnerable to another oil price shock.

Understanding the new price of oil

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In the spring of 2011, when Libyan oil production — over 1 million barrels a day (mpd) — was suddenly taken offline, the world received its first real-time test of the global pricing system for oil since the crash lows of 2009. Oil prices, already at the $85 level for WTIC, bolted above $100, and eventually hit a high near $115 over the following two months. More importantly, however, is that — save for a brief eight week period in the autumn — oil prices have stubbornly remained over the $85 pre-Libya level ever since. Even as the debt crisis in Europe has flared.