Why do you say "Imports come to the rescue"?

Not that you are wrong, but at this point, I can't say you are right. Import numbers have been all over the place, and don't even make 2006 levels.

So going forward, we don't know if we will get the imports, yet! And if gasoline futures drop, that will make the US buying power of those precious gasoline imports less effective.

I guess we will see, next week will tell us more, if imports hold steady or increase we might be able to say more.

And G*D help us if a hurricane hits dead on the GOM refineries in the peak July/August season...as you say.

Why do you say "Imports come to the rescue"?

It's a question, which I answer with: High prices are likely to attract big imports, and mitigate prices somewhat. That seems to be what is happening lately. If import levels were not as strong as they are, gasoline prices might go up another $0.50.

RR-

you wanted a cite on the healthy energy returns on cattle-methane-ethanol-corn plants. Langley of EP3 is quoted as saying such plants get returns on the 40-to-1 level. Sounds great. We have to wait for long-term results. My experience in manufacturing is that initial results disappoint, but then you get better at doing things, and long-term results are actually better than hoped (if you can stay in business). These guys should be able to stay in business.

http://www.caller.com/ccct/business/article/0,2537,CCCT_873_5311809,00.html

First of all, it's E3 Biofuels. Second, here is what one of his engineers told me: "Langley isn't a technical guy, and that 40-1 was way off the mark. He probably believed what he was saying, but that isn't close to being correct." Of course, if you thought about it for 5 seconds, you would understand why. That is a far better energy return than sticking a straw in the ground and sucking oil - already processed by nature - out of the ground. You really need to know when to apply a bit of skepticism, and stop believing claims simply because you want to.

Third, the claim by Langley was made before the plant even started up. Remember what I asked for? Somebody who has demonstrated it? I presume you can't supply that information?

Langley isn't a technical
guy

Is that why he uses the ambiguous term 'energy
units' ?

I've gotten friendly with a new neighbor who is a grad student at UNL and mentioned his work as a ruminant technician put him in contact with folks at the
Mead plant.

In ensuing conversation about energy issues he gave me this URL, that might me useful to you
http://beef.unl.edu/

I did a search a few weeks ago on Mead at the
site, but nothing caught my attention then.

Where IS that 'Theory of Everything' ?
Here
it is !

Sorry for the typo on EP3.

40 to 1 does sound high, that's why I ran it by you. But this plant, from what I read on renewable and ag websites and forums, is becoming the new norm in planning stages... Perhaps existing plants will be retrofitted. Time to go long on cow poop!

Yes, I cannot document energy returns until the plants are up and running for a couple years. It sounds like a terrific idea, one that will radically reduce energy inputs from fossil sources. I gather that burning the methane is better for all concerned too, as it does not go into atmosphere.

Another important aspect of this: It was not anticipated a few years ago. What else is cooking that we do not anticipate? With fossil crude at more than $60, what other remarkably useful techniques and inventions are on the way? I am sure many in this forum will say none worthy of mention, but I am not so sure.

If it is not 40 to 1 at the E3 plant, what did your engineer buddy hint at? 10 to 1 would be great. Even three to one would be nice. Of course, we have to measure fossil inputs. I understand the methane is an energy input, but it is "free" so to speak. The left over mash is used to feed the cows. I am sorry to eat the cows, but even sorrier when I eat pork, and how long till we see pig-and-potato plants?

As for skepticism, sheesh. Have you read these forums? Hook, line and sinker it is taken as faith that a mathematical model developed on light oil deposit extraction only in the Lower 48, in a period of cheap oil worldwide, will perfectly predict oil output globally in a period of higher oil prices, despite the reality of massive deposits of heavy oil and tar sands (which dwarf light oil), and despite the fact that Hubbert's Peak has not even predicted crude output in North America, let alone the world.

North American fossil crude output should move to new all-time records in coming years, thanks to Canadian tar sands ramping up to 4mbd, and the big Chevron strike starting up. That will mark roughly four decades on a rough plateau. Biofuels are ramping up sharply too, but remain too small to really talk about yet. In 10 years? Could be enough to seriously damage the fossil boys.

One man's skeptic is another man's cynic, and another man's dupe. Having been duped a lot, I hope I am moving to the skeptic range, but never into the land of cynics?

The question is have *you* read "these forums"? It seems not. You're as much faith and straw man as I have seen in awhile here. You've been here for two months, and you've got everything pegged. Who is the faithful dupe here?

You write,

"Having been duped a lot, I hope I am moving to the skeptic range, but never into the land of cynics?"

I rip roared a good guffaw out of that one. Yeah, it just isn't appropriately conservative to be cynical about the world, is it? Everything is just so wonderful and exuberant, evidence everywhere! God surely loves his little children. Another funny one, are you a stand-up comedian in your spare time? At least you have the "honesty" to use the unfriendly term "tar sands", the wholly "unbiased skeptical optimist" that you *surely* are...

Yes, biofuels are ramping up, with minimal impact on liquid fuels supplies. And, oh boy, we should really be excited about ruining the environment and the planetary climate with the likes of tar sands and oil shale.

This is not good news you are providing here; the news should be that we are doing everything in our power to live within and below our existing oil supplies, not discovering new ways to screw up the planet even worse.

I asked you some questions on May 10th designed to see if you were serious and or merely trying to instigate a circle jerk. The answer was not forthcoming which I have preliminarily equated with you trying to intitate the aforementioned circle jerk. Reference:

http://www.theoildrum.com/node/2529#comment-188487

Others have done the same sort of thing with a similar lack of substantive response.

Please don't suck up every poorly written under researched bit of nonsense that gets published. Do a little critical research. There are some very positive things that likely to occur in time IMO. I am not doomer. With some googling and a little critical review you can find them. Try not to give optomism a bad name.

A little prefunctory bebunking: The net energy gain on 4 million bbls per day of Canadian tar sands is nothing like even the return on ultra heavy crudes

... and

If by the "big Chevron strike" you are referring to the Jack #2 Discovery it will be a long time if ever before production begins and it will hardly be the cure for what you believe is expensive [$60] oil. It might be the sort of thing that keeps oil from doubling from here if there are enough of these high risk high investment prospects ... and enough ultra deep water rigs to explore them.

The facts on Jack II IIRC:
1.) A mulitfeature string of possible traps --
2.) at about 22,000 feet subsea -- 15,000 feet of rock in 7,000 feet of water --
3.) A hundred and fifty miles from existing infrastructure--
4.) With the published multi billion barrel projection of reserves based on a couple of wells both of which are either temporarily or permanently abandoned.

Jack II may turn out to be a big find a decade or so from now. For now, the publicity it receieved is not comensurate with its apparent economics.

These are the facts as we know them. Research Benjamin research.

North American fossil crude output should move to new all-time records in coming years, thanks to Canadian tar sands ramping up to 4mbd, and the big Chevron strike starting up

Hardly !

One third to one half of the net# new tar sands production will go to replace conventional Canadian production, whch is in steep decline (royalties to Alberta Gov't are taking a hit despite the boom).

Chevron (50% owner of Jack #2) wanted to influence US public opinion and did.

One 25% owner of Jack #2 is Statoil, 5/8s owned by the Kingdom of Norway, which could care less about US public opinion (and has a cultural thing about honesty). According to the 25% owner of Jack #2, more wells are needed before a decision to produce will be made.

Still, by the time tar sands get to 4 million b/day and Jack has produced it's first barrel, Prudhoe Bay oil production will be so low it will not be worth keeping the pipeline open. US Lower 48 production will be down some more (2+ million b/day on a long term trend of -200k b/d each year).

Best Hopes for Reality Based Planning,

Alan

# In the year of Peak Coal in the UK (1913) 13% of the coal produced was used to mine coal (stat from memory).

A lot of natural gas and a far amount of oil products are used to produce and upgrade the tar sands. So producing an extra XX barrels/day of tar sands takes a lot of energy up front to build and even more to produce. One should net that. So, for me, 4 million b/day of tar sands = 3 million b/day of new oil supply (+ GHG & environmental degradation). I value NG like oil since they can substitute for each other in some markets.

That 40 to 1 return must be ignoring the energy used to produce the corn. What about nitrogen fertilizer for example? Producing it is very energy intensive. E3 biofuels claims their operation produces some fertilizer but I doubt they produce all that is necessary to grow the corn, some of the nitrogen and other elements are going to be absorded by the cattle. What about the other foods the cattle eat? They aren't going to eat only distillers grain. The other types of cattle feed take energy to produce too.

Estimating the EROEI of a cattle-methane-ethanol-corn plants will be even more complex than a typical ethanol plant. How are the energy requirements to produce the various cattle feeds going to be divided between the ethanol and beef production? It isn't appropriate to just ignore the other types cattle feed. After all, some of the manure used to produce the methane originated from the other materials fed to the cattle.

Ill tell you one thing for certain. The energy return on cow manure to methane will be much higher if we just throw the cow in the biodigester, and higher still if we use whatever we feed the cow directly in the biodigester, and produce no cows at all.

The energy return in this situation is predicated on societies choice to eat meat/dairy. If that part of the equation is relaxed, it allows the other variables to move higher.

Thats why straight energy return, out of context, doesnt give you the whole story (though more than just dollars do)

"no cows at all"?

Wait until NCBA gets wind of their new slogan "Beef is not what's for dinner..."

How about we make an an exception for Kobe cows? I mean, while we're using up energy on cows, lets at least throw in beer and massages for 'em before it's "off with their heads". Uhrmmm, marbling.

Just a thought...

/me runs from rabid vegans

Excellent comment, Nate. Just like we all learned in school, from the sun's rays to plants to herbivores to carnivores, energy is lost every step of the way. Getting more from a cow than was put into feeding the cow would mean that energy was created out of nothing, and that's impossible. Even oil, which would not be around if not for the sun and is great because it has soaked up solar energy for millions of years (and is thus more dense than solar energy), is terribly inefficient, too. The best bet is to go directly to the source.

I've said before that 80% of American cropland is dedicated to feeding livestock, and there are many other reasons why growing livestock (at the very least the way we're doing it) is in no way beneficial to humanity (much less to the livestock, themselves).

I have the solution. We just need a gene therapy that will make us capable of photosynthesis. Then we can skip the intermediate stages and not have to eat at all. Throw in some cheetah genes so we can run real fast and we won't need cars.

Nah, we should just take Alice’s magic potion and become 1/10 th of our size. Then we’d only need 1/10th of the oil we consume today. Oops, we’d have to shrink the world as well to cut down transport ...oh, then we’d be shrinking the oil fields too, oh dear, back to the drawing board! Something will come up!

No, No. I think you have something there. Small, photosynthetic, and fast.

Once it goes transgenic in the wild we'll have ... Triffids!

That really would serve us right!

But didn't you just post on your blog that gasoline futures are down(they may be up by now).

No doubt, if the prices hold we can attract some more imports, but it is easy to maintain that we will be tight for most of the summer unless we increase somewhere substantially.

It appears that the import numbers are pretty weak compared to 2006 especially in the light of the higher prices.

How much higher do we need to go to guarantee the import levels will be maintained at minimums?

But, definitely NO argument that if the imports that are there - weren't - we would have even higher prices - but probably higher than you project, because then we would be pushing rationing or shortages.

It's a thin line. As my home province(Ontario) so excellently demonstrated in the first quarter '07.

FWIW, I didn't say it was wrong, just not necessarily right...yet. If imports deliver, it is absolutely correct. I am just not ready to jump to a final conclusion until after the long weekend data (which I mistakenly thought would be this week).

This week's import number was the 3rd highest ever. That's what I am talking about. These prices will probably keep import levels high. But if I look forward to July and August, I still don't think we are supplying enough. I plan to do that exercise next week, because those months far outstrip Memorial Day in terms of demand.

Not questioning that at all, imports have not followed past trends, so I ask why? And, therefore, will they?

That's it. I do hope they grow, but we are looking a week ahead at a time, and as you say it doesn't look too encouraging.

It comes down to we still need more data (just like the KSA situation). Probably a few weeks more to get a full picture.

There needn't be shortages if the prices are high enough. People who can't afford the prices will not be buying and will figure other ways to save on using gasoline. Unfortunately, some people who need it more than others can't afford it, while the ones who can afford it waste it in their honking SUVs. (Canadians, here, are just as bad.)

The bidding war is well underway. Individual Europeans have more options than Americans, given the way their cities are designed. They can forgo some of the expensive gas. If they had the extent of urban sprawl as US, then the bidding war would be worse.

Here in Canada we are a little bit isolated. We are a net exporter so our dollar is climbing. But that is causing a problem with our manufacturing and export industries.