How fish use energy teaches true oil economics
Whenever a salmon, bear, lodgepole or Dow Jones company spends more energy on an activity than they get back, death follows. Or in corporate terms, debt builds and things fall apart.
Whenever a salmon, bear, lodgepole or Dow Jones company spends more energy on an activity than they get back, death follows. Or in corporate terms, debt builds and things fall apart.
As supply and demand factors increasingly point to a future in which natural gas plays a greater role in the global energy mix, the International Energy Agency (IEA) on Monday released a special report exploring the potential for a “golden age” of gas. The new report, part of the World Energy Outlook (WEO) 2011 series, examines the key factors that could result in a more prominent role for natural gas in the global energy mix, and the implications for other fuels, energy security and climate change.
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I’m not popular with environmentalists when I tell them that renewables can only provide a small fraction of the energy that fossil fuels do in powering industrial civilization. In fact, I was recently called a liar at the screening of an anti-nuke film for suggesting so.
Here’s one simple fact without which our deepening energy crisis makes no sense: the world economy is structured in such a way that standing still in energy production is not an option. In order to satisfy the staggering needs of older industrial powers like the United States along with the voracious thirst of rising powers like China, global energy must grow substantially every year. Even if usage grows somewhat more slowly than projected, any failure to satisfy the world’s requirements produces a perception of scarcity, which also means rising fuel prices. These are precisely the conditions we see today and should expect for the indefinite future. It is against this backdrop that three crucial developments of 2011 are changing the way we are likely to live on this planet for the foreseeable future.
People that worry about the peaking of global oil supplies often use symmetrical curves as simple models for how production will peak and then decline, with logistics and Gaussians being popular choices. This goes back to M. King Hubbert (and I’ve done some of this myself). The United States is the poster child for this kind of analysis, since this region was the first to be developed at scale and production peaked in 1970. However, it seems increasingly clear that the US production curve is far from symmetrical (perhaps driven by higher prices since the 1970s, and especially in the 2000s). Using data from the EIA for production and reserves, we can see that the decline side is slower than the growth side for both.
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This note aims at exploring the scientific foundations and therefore the scope of validity of these forecasting techniques. Looking at the basic assumptions of Hubbert’s thesis, it concludes that these techniques should not be used to forecast neither the peak (or plateau) of the annual production rate, nor the ultimate reserves of any mineral, unless given exceptional conditions.
Read the transcript from our live webchat about the power of storytelling to engage people around the challenges we all face. Facing the future through fiction!
The Pulitzer Prize-winning investigative journalist Seymour Hersh is back in the news this week with another explosive article that is ruffling some feathers at the White House. Seymour Hersh says the United States might attack Iran based on distorted estimates of Iran’s nuclear and military threat—just like it did with Saddam Hussein’s government in Iraq. Hersh reveals that despite using Iranian informants and cutting-edge surveillance technology, U.S. officials have been unable to find decisive evidence that Iran has been moving enriched uranium to an underground weapon-making center.
Also in this interview are Hersh’s views on the growing independence of US intelligence agencies, Obama’s isolation and the impact of the Arab Spring. [Excerpts]
The U.S. Department of State seems likely to approve a huge pipeline, known as Keystone XL to carry tar sands oil (about 830,000 barrels per day) to Texas refineries unless sufficient objections are raised. The scientific community needs to get involved in this fray now. If this project gains approval, it will become exceedingly difficult to control the tar sands monster.
If you didn’t know better, you might think the planet was simply piling on to make a point. The extreme weather events of the last year have proven little short of biblical.