Oil

With Gas so Cheap and Well Drilling Down, Why is Gas Production so High?

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Large amounts of natural gas are produced in conjunction with the production of hydraulically fractured shale oil and in association with conventional oil drilling. Given the price differential between oil and gas at present many companies have changed their focus to shale oil or liquids rich shale gas to enhance economic returns. Although much associated gas in the production of shale oil is simply flared, as in the Bakken play in North Dakota, much is also produced into the market even at current low prices. Thus the apparent “too- good-to-be-true” statistics showing growing gas production with declining drilling are simply that – too- good-to-be-true.

Sinking the Petrodollar in the Persian Gulf

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If this were an economic rewrite of Edgar Allen Poe’s story, “The Pit and the Pendulum,” Iran would be but one cog in an infernal machine slowly shredding the dollar as the world’s reserve currency. Still, it’s the cog that Washington is now focused on. They have regime change on the brain. All that’s needed is a spark to start the fire (in — one hastens to add — all sorts of directions that are bound to catch Washington off guard).

ODAC Newsletter – Jan 13

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Fears of an EU recession gained ground this week with news that the German economy shrank in Q4. In oil markets this dunked oil prices to a New Year low – though they quickly recovered on Thursday in response to renewed concerns of supply disruption. In Nigeria unions threatened to escalate nationwide strikes to the oil production sector at the weekend if the government fails to reverse recent cuts in fuel subsidies.

Will New Zealand be the first developed country to evolve a steady-state economy?

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New Zealand will inevitably make a transition to a steady-state economy. The onset of energy descent — having less and less energy to use with each passing decade — will push it to do so sooner rather than later. The critical question is whether the transition to a steady-state economy will be by design or disaster.

How resilient is the food system?

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Given industrial food’s dependence on petroleum, it’s easy to conclude that peak oil poses a serious threat to our food supply. And it’s likewise easy, given the importance of food in our lives, to conclude that making food peak-oil-resilient is one of the first things to worry about. So it’s a nice surprise to hear permaculturist extraordinaire Toby Hemenway argue that food is in fact the last thing to worry about.