Oil

The peak oil crisis: the IEA’s road show

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Every November following the publication of the IEA’s World Energy Outlook, the leadership of the Agency travels to major capitols in an effort to explain to the world’s leaders the conclusions of the new publication. Parts of this year’s briefings contain not-so-subtle hints as to what sort of energy policies the world’s leaders might like to follow if they want to avoid killing off all life on earth a century or so from now. Earlier this week the travelers stopped in Washington, where sandwiched between visits to various dignitaries they briefed an assemblage of some 200 journalists. Here is my report.

Shocker! Newt Gingrich doesn’t understand oil

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I often don’t bother arguing with the “Drill, Baby, drill” folks – the reason is that while I think they are misguided and their lack of understanding of the possibilities of US oil are embarassing, they also have a point – as we get further down the energy curve, most of our available energy resources will be exploited if it is economically viable to recover the oil or the gas. It simply will happen – environmental sensitivity will not be a major factor.

How big is Exxon’s gamble in Kurdistan? (Answer: BIG)

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Has ExxonMobil — the annoyingly prissy schoolboy who always obeys the teacher — risked weakening one of its distinguishing pillars in order to break into a single oil patch? And if so, could that shake up the global oil market along with geopolitics?

We are referring to the news, indiscreetly disclosed by a Kurdistan official last week, that the northern Iraqi region has signed an oil exploration agreement with Exxon. The reason this is a problem is that Kurdistan has been in a long-standing turf war with the folks in Baghdad over how to divide the spoils from its hydrocarbon riches.

The Energy Return on Investment threshold

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Hall and Day (2009) report that the Energy Return on Energy Invest (EROI) for coal might be as high as 80 and that for hydropower, EROI is 40. Does this mean that coal is twice as ‘good’ as hydro? The answer is no, and in this post I will discuss how this relates to the idea of an EROI Threshold