It is a very serious breakdown of democracy. And until we deal with that, and until we regard that as an issue that is central to solving all our issues, including the environment and climate change, we’re not going to get very far.

My emphasis on seems is because we are at the same time ruled more by referendum and poll than ever before. And our New Labour government is riding high in the polls.

Yes, there is certainly a contradiction there, as the evidence shows the very condition you claim to be "broken" to be highly popular with voters. Such popularity rubbishes the conspiracy theory that

I’ll tell you who rules Britain. It is the Prime Minister with a small cabal around him of unelected advisors...

If the PM must go over over Michael Meacher's head to accomplish the wishes of the voters, then clearly it must be Meacher, not the PM, whose attitudes are out of alignment with democracy. And if Murdoch's desires happen to be aligned with the voter's desires, well, too bad.

So, then, could the fault lie with democracy itself? Oh, but it's politically incorrect even to mention the irrationality and stupidity of the average voter - even Hitler came into office more or less by way of the established procedures of his time and place - "As democracy is perfected, the office of president represents, more and more closely, the inner soul of the people. On some great and glorious day the plain folks of the land will reach their heart's desire at last and the White House will be adorned by a downright moron." (H.L. Mencken, American writer.) Though we must admit that serious students of the subject will tiptoe around it by preposterously claiming that the stupidities and insanities miraculously average out to zero to an accuracy of several decimal places.

No matter, we must stomp the thought out with all our might, lest every Marxist professor we are ever subjected to should flunk us out. But that only leaves us with the remaining alternative, that the voters are (on balance) right. If so, then I must suppose the world is not coming to an end and we, here, are simply worrying too hard. But that thought, too, seems sufficiently politically incorrect to get us flunked out.

Hmmm...I see no way out but to think at least one politically incorrect thought. And the thoughts in play on this occasion in no way contradict each other...

Paul: When you're right you're right. A lot of the evil actions undertaken by the "elite" in the USA are unpopular on TOD but surprisingly popular among the great unwashed. The main problem with democracy is like the comment about World Wrestling Federation fans- they can vote and they can breed.

Governments should be kept small and weak, with powers enumerated clearly in a restrictive constitution. Arguably that subverts democracy, but it is a realistic method to protect minority rights and to prevent tyranny.

The problem isn't with voters, it lies within the system.

Well, enumerated powers used to be the American approach, but I'm not so sure at all that the problem "lies with the system".

"Safety" (physical and/or economic) trumps rights and liberty every time. So it was that America eviscerated its constitution to respond to the Great Depression. So it was that America further eviscerated its constitution to respond to 9/11. That's the voters caring not a fig about any consideration beyond their own skins.

Even the most utterly trivial "safety" scare suffices. So it was that America spent countless millions on an Alar scare amounting to exactly nothing. So it is that everyone spends countless billions on environmental and medical scares amounting at best to next to nothing. That's usually the voters visiting revenge upon the entities, corporate or otherwise, that deliver the highly unwanted news that those selfsame voters must get up in the morning and go to work.

I don't know that any "system" can ever change any of this, because a restrictive constitution can be - and to a great extent has been - simply voted away. Certainly the European "system" of parliamentary dictatorship is unlikely to do better, as the paucity of limitations provides powerful incentive for 51% to loot the other 49%, or to engage in whatever other mischief happens to please them.

Who will guard the guardians? There is no law that can prevent its own abuse. If you want an uncorrupted system, you must stay vigilant at all times.

Well I need to start by saying that I used to be a great fan of Hulk Hogan.

It is an interesting paradox where we can relate to the inadequacy of our democracy whilst at the same time declaring it to be very popular with the majority. The reason I think is that the interests of The People, Corporations and Government are all aligned - consume more, make loads of money and taxes - and I have nothing against that, done on a sustainable basis.

The challenge, therefore, must lie in educating the people that their very steep and selfish discount rates on this particular issue is not actually in their best interests. How exactly you get that message across, if at all, is a major challenge.

If it is not possible somehow to convince people and government that a course of relative austerity is in fact going to be good for them in the long run then the issue will clearly not be resolvable by democratic means. I guess that leaves dictatorship or anarchy as the options.

I still have a romantic notion the PO itself may act as a catalyst for action. Working with Luis right now, we can show that peak FF will likely occur more than a decade after PO. Hence, relative shortage of liquid fuel will not equate to a shortage of energy in general - for a good while. There will be a window of opportunity for a crash program of dramatic expansion of renewables and infrastructure. An opportunity for the World / OECD to build its way out of depression?

Hello Euan,

and thank you for an interesting and thought provoking post.

With respect to peak FF following PO, I just want to add some food for thought.

Oil is KING among the energy sources and mainly used for mobility (transportation) for which machines (cars, airplanes etc) are manufactured with input from other energy sources (natural gas, coal, nuclear). In other words there seems to be a division of labor among the energy sources within the energy mix. The substitution argument seems quite common in some circles as a response to PO.

I, for one, am not fully convinced this will happen.

Could it be that post PO (and after some substitution) that energy demand from other sources becomes affected and starts to head in the same direction as oil (i.e. southwards)?

The other thing is the dire situation with respect to nat gas reserves within some big consumer regions like North America and UK. Would it be possible to scale up deliveries from nat gas rich regions (like the Middle East and Russia, where presently most of the increase in production is used for a growing domestic consumption) fast enough to both substitute for declining oil (substitution where this is feasible) and nat gas production?

Apart from that I agree with you that educating the people is a good and an enormous task as the steep discount rates will give new meaning to the expression “hitting a brick wall”.

Just my 2p.

NGM2

MGN2, Tracking energy flows is tricky business. Falling nat gas in N America has not yet lead to a crater owing in part to de-industrialistaion and in particular gas intensive industries such as fertilizer manufacture moving to ME. What this means of course is exportation of energy and food security.

There will be major disslocations - but at present I'd like to differentiate between a disslocation and a cliff edge.

I'm always looking for solutions. If I reach the point where I decide there are none - I will move back to Norway, buy a small farm and fish for salmon all day.

The situation does seem to be rather intractable.

The system is currently not addressing the very real and very serious problems of GW and PO. The current system is very heavily entrenched. A brief review:

The government represents industry at the expense of the people. The media is owned by industry and it represent industry at the expense of the people. The populous is poorly informed and ill equipped to take the government to task. Furthermore, the populous works for industry, we the people are thus heavily indoctrinated with the present system. It's not surprising that it is highly popular with voters.

I guess that leaves dictatorship or anarchy as the options.

Sadly, I agree. I don't think the system we have right now will handle the long emergency very well.

The solution I propose is to socialize ownership of industry by making industry worker owned. I don't think that it is possible to legislate a change like this in the present system. Instead, we need to out compete existing industry. Since existing industry is presently based on the unsustainable BAU model its days are numbered. If we create worker owned solar companies, biodiesel companies, organic farms, etc. and those businesses are going to be dominant after the peak, then we fundamentally change the nature of industry and its effects on media, government, and the populous. If we do it right then we just might get a civilization worth living in. One with social cohesion and economic stability.

I recommend Gar Alporovitz's book America Beyond Capitalism: Reclaiming our Wealth, Our Liberty, and Our Democracy as a starting point. Also worth looking at Mondragon Corporation, a huge worker owned business, and its wikipedia entry here. It is worth noting that the Mondragon cooperative was started during the rule of Franco a fascist dictator.

Tim

Euan,

I think many of the TOD contributors (and commenters) are doing an excellent job in trying to describe the energy challenges we are facing and looking for solutions to moderate those effects.

Some of the American nat gas consumption has been substituted with distillates and RFOs (Residual Fuel Oils).

The reason why I refer to oil as KING among the energy sources is that oil may easily substitute the other energy sources, while the reverse substitution is harder to achieve.
So far the nat gas decline in North America has been modest. Therefore it should (so far) not have a dramatic effect, price rationing has so far driven out marginal demand.

But what about the effects on the American (or world) auto industry?

Some of the first victims for PO (with huge price increases on oil) will be auto industries (less demand for cars) and airline travel (less demand for aero planes), both cars and aero planes requires huge amounts of energy (normally from other energy sources) in their manufacturing. PO will, as far as I understand it, could create some paradoxes, a declining global oil supply could (after some substitution has taken place) reduce demand for other energy sources, thus creating a downward pressure on prices for energy from those sources until supply again meets demand and thus generates a renewed upward pressure.
The hard thing about PO is that there is no travel guide into the future we are headed, we are entering unchartered waters.

Euan, you are welcome to Norway and I will accompany you on some of the fishing trips (I’ll bring some good whiskey as well).

By the way I hope you have installed a wood stove in your home for the upcoming heating season. UK nat gas supply does now look very challenging, as they had to withdraw from the Rough storage facilities earlier this week.

Rgds
NGM2

By the way I hope you have installed a wood stove in your home for the upcoming heating season.

Well I meant to do this last year, but never got around to it - but this will be well up my priority list when I get back from ASPO Houston. I've spent a fair amount of time this past couple of weeks opening new bank accounts.

Another poster mentioned problems with gas delivery from Langeled and if they're dipping into Rough alraedy - JC!

I'm going to do a long over due post on UK gas supplies - so if you have any news items / links please send.


This chart - which is based on work that you did, is a year out of date - and I gotta try and remember how I made it. Forecasting into the annual cycle is the challenge.

Hello Euan,

I have my figures/diagrams regularly updated as data from DTI is released. I also made a model forecasting (primarily 12 month into the future) stock withdrawals (and injections as well) based upon UK domestic supplies, imports from Norway, from the Netherlands (BBL system), the Interconnector (that allows for bidirectional flow and last heating season there was little flow from the Continent to the UK, UK was awash in nat gas last heating season also due to a mild winter) LNG imports (from the Isle of Grain), in other words a complete model of the UK nat gas supplies system. The hard part to predict is temperatures (or weather).

The model assumes a pattern for “normal” consumption (this is easily modified to simulate other weather patterns) as the average of the last 5 years, and I have noticed that this is pretty much in line with the “normal” demand curve which the National Grid presently is using.

Decline in marketable UK nat gas supplies is presently running at an annual rate of approximately 10 %.

Short, medium and long time storage was (as of 05. Oct.) close to 90 % recharged (refilled) based upon data from National Grid.

Deliveries in Easington from Norway through Langeled (includes deliveries from Ormen Lange) has lately been running at a rate of 50 - 60 Mcm/d, in addition I would estimate that approximately 20 Mcm/d is presently being delivered through Vesterled (Previous FNA; Frigg Norwegian Association) at the TOTAL facilities in St. Fergus. Later this fall deliveries through the new Tampen link (my present guesstimate at approximately 5 Mcm/d) will start deliveries though the FLAGS system (SHELL?) IN St. Fergus.

Ormen Lange has presently (to my best knowledge) 3 operating wells each at approximately 2 Mcm/d and will gradually drill, complete and deliver gas from 24 producer wells by 2009. This means roughly that a new well with a productive capacity of 2 Mcm/d will be brought on stream each month from now on. This also means that deliveries to UK from Norway through Langeled are presently complemented with nat gas from Kvitebjørn (presently down) Troll, Visund and the Sleipner area.

So what are the outlooks for the upcoming heating season?

Weather or temperature plays an important part in nat gas demand and consumption during the heating season (should not come as a surprise).
Assuming a normal winter, present status of the storage levels, imports totaling approximately the levels of last heating season and a decline in domestic marketable nat gas supplies of 20 - 25 Mcm/d relative last heating season (2006/2007) this heating season could be a close call, and it is now hard to exclude the possibilities of GBAs being issued late in the heating season.

What if the weather the upcoming heating season becomes colder than normal?

I know of two good indicators to watch carefully, the price of nat gas (that recently went beyond 42 p/therm and presently down to approximately 35 p/therm) at NBP and the storage levels that are updated daily at National Grids web site.

This winter could become an interesting one for UK nat gas supplies.

(Euan, I have got my fishing gear ready this morning……)

Rgds
NGM2

MgN2

I'll send you an email.

I'd need to borrow a rod as the UK authorites don't like your salmon bug any more.

Weather forecasting is a black art. This year we had an exceptioanlly mild April and October but June through August was crap.

Also need to remember that the UK is still building new gas fored power stations.

EuNa

. Falling nat gas in N America has not yet lead to a crater owing in part to de-industrialistaion and in particular gas intensive industries such as fertilizer manufacture moving to ME

Having been in the Plastic industry, I know that all PolyEthyene resin has gone out of the country, and I understand that Fertilizer also.

I wish someone could come up with a number of the amount of NG that was saved(added back into the market) because of these industries leaving.

5% of our usage?
10%?

How many years did that Onetime "moving off shore" buy us?

These are pretty imporant issues in the bigger picture, which I'm not sure anyone at TOD can answer. What we do know is that the US (and other OECD countries) have soaring imports. Much of this might be energy in the disguise of plastic, fertilizer and other manufactured goods. As you say this is a "Onetime" shift that bought some time.

Just let us know when u start fishing.

Be careful of relying on salmon.

One of the many strikes by the Newcastle keelmen [the original bolshy workers] was over being 'forced' to eat salmon every day [I think it was part of the wages or something..]

http://www.rapper.org.uk/archive/keelmen_strike.php

That is the reason I will bring some whiskey (and Norwegian aquavit).;-)

Rgds
NGM2

And I'l bring some proper whisky. A smoky malt for smoky salmon and spekke matt.

A small farm, with fishing rights in a salmon river? Better start looking already, I don't think those properties are very common in the market nor cheap :)

A small farm of any kind can be a bit hard to get hold of even though the number of farmers are steadily decreasing, and if TSHTF I think it will be close to impossible. The reason is the "odel"-laws, stating that the oldest child of a farmer has the right to buy it when his parents give up. If he doesn't want it the right passes to the second oldest child. Then the third. If no child wants it, the grandchildren are next in line. Then siblings of the farmer. Then their children. Then cousins of the farmer. Then their children. And so on. It's easy to see how becoming a farmer can be kind of hard if noone in your family owns a farm, or if someone above you in the chain wants it.

If you do manage to buy a farm there is another law that says you need to live on the farm and run it for at least 5 years, this is to discourage speculation and make sure wealthy citydwellers don't just buy up all the abandoned farmhouses for use as vacation homes. It seems this rule is easily gotten around though.

The solution ofcourse is to marry the oldest child of a farmer ;) Interestingly, I am one of those oldest children of a farmer, and I'm not going to let it pass when my parents decide to retire. Strange as it is, I'm not yet forced to turn down hordes of desperate females begging me to marry them, so most people must still be under the impression that the party will go on.

Before seeing your numbers I'm doubtful we can continue total FF expansion for a decade post peak oil - I mean in energy terms oil is the most significant FF so expecting coal and gas to be able to increase supply to not only off-set declining oil but also provide growth for at least a decade seems a big ask.

Regional aspects are key to gas and coal, so even with large reserves it's highly questionable if they can be converted into rapidly increasing rates of supply.

Look forward to seeing your numbers

I was getting carried away - another dopamine surge I'm afraid. Somewhat less than a decade is the reality. But I will stand by my point of the window of opportunity - albeit a small one.

Your small window of opportunity depends on your assumption that we are not yet at peak. What happens (or already happened) to your window of opportunity if we truly turn out to be post peak? Getting that farm you've talked about sounds better all the time.

"The greatest shortcoming of the human race is our inability to understand the exponential function." -- Dr. Albert Bartlett
Into the Grey Zone

I recalculated my Saudi forecast for C+C. Pretty interesting eh?


Interesting?

Head for the hills!

Jesus, Euan...you really see Ghawar falling off a cliff that fast?

Whoa! The difference between Euan and Stuart is now about a hair's breadth! Why the change? I'd also be interested in seeing the rest of that graph tail. My own (very crude) projection calls for a a shorter plateau then a quick drop (relatively) over less than a decade to just over 5.5 mbpd then slowly declining production  from there onward. In other words, the fall from 9.6 to 5.5 will be relatively abrupt (just over a decade total) but the decline from 5.5 downward will be much slower, leaving KSA still exporting some and having capacity to grow internal consumption. In fact, after about 2020, I expect KSA to be a "bigger Iran" in terms of production - many years of fairly stable and slowly declining production rates. Hmmm... I am betting your other data didn't change much and that your decline rate did? If so, that raises the question of why?

"The greatest shortcoming of the human race is our inability to understand the exponential function." -- Dr. Albert Bartlett
Into the Grey Zone


At the end of the Ghawar debate earlier this year when Stuart and I independently worked out reserves estimates the conclusions we reached were "near identical" to each other in terms of reserves and state of depletion.

The forecast up the thread for C+C is based on same principal as the one for C+C+NGL shown above that I reported here.

http://www.theoildrum.com/node/2910

Including NGL makes quite a difference. I still need to learn a bit more about NGL - in KSA it seems this is actually gas (C2 to C5) - I gotta contact the DTI this week to find out what N Sea NGL is made of - my understanding it is liquid.

And Drogonfly - yes, when N Ghawar dies in stages, I think the production decline will be steep. The timing is uncertain. But it comes down to a new palteau sustained by S Ghawar - that will go on producing for a few decades.

Your graph seems a bit odd. First, where is the 9.6M plateau that SA was on for a few years ending early 06? Second, seems you expect abqaiq and khursaniyah to pump up immediately... as you know, simmons doubts much will come from the latter, and meanwhile it is very difficult to predict what new oil will come from the former, a very old and depleted field. Khursaniyah did, at least, peak at 200k/d, so there may be a chance that 'new tech/water drive etc' can increase production. OTOH, and again referencing simmons, Kurais might not produce anything at all. Counting on both Khursaniyah and Khurais to come on line as scheduled, and further to maintain production long enough to jointly add significantly to total production, is IMO unlikely. A graph showing each of these at half advertised output, and not counting on abqaiq for anything new, might be more realistic.

Manifa might be the best shot of them all, but this oil needs a specialized refinery... presumably, they are working on this critical adjunct.

Regarding NGL's... I thought SA is running out of ng to the point that they are seriously talking of importing coal for the desal and power plants... if so, wont they run out of ngl's?

JK - if the chart seems odd that's because I'm plotting iea annual data - and have often warned of getting sucked into looking too closely at monthly data - to which I think you are referring.

Abqaiq - I show only sporadic production up to 400,000 bpd in short bursts - they have deployed multi-phase pumps which I presume they paln to use.

Khursaniyah - is in fact a three field development comprising Khursaniyah, Abu Hadriyah and Fadihili (I think). If you go back to my original article you'll see I built in a 1 year delay.

Counting on both Khursaniyah and Khurais to come on line as scheduled, and further to maintain production long enough to jointly add significantly to total production, is IMO unlikely.

So what is your opinion based upon? Matt Simmons opinion? I built in a two year delay in Khurais. My opinion is that the performance of these poor quality reservoirs may be transformed using MRC wells. The Saudis have delivered with Haradh - especially Hardah III - and so until their technical judgement is proven wrong I'll give them the benefit of the doubt.

Using more gas than you consume is not the same as your gas production falling. I've simply built in the projects they say they will deliver - with delays.

Okay – I’ve looked at some numbers from the BP Statistic Review.

Here’s what I mean about oil being so significant:

The recent uptick in coal is China, but there are big questions about how long that can continue for.

We can see that:
Since 1982 gas increased at an average rate of 2.7%
Since 1982 coal increased at an average rate of 1.9%
Since 1982 coal & gas collectively increased at an average rate of 2.2%

However looking forward, perhaps a case can be made for peak oil not being peak fossil fuel.

In this chart I have assumed for sake of argument that oil peaks in 2007 and declines at 3% pa, that’s the light green curve. I’ve then also assumed that coal and gas continue to increase at 2.2% for another decade.

If that is possible, then the coal and oil additions are indeed enough to compensate for oil decline. I’m not convinced it’s realistic to assume “steady, BAU” growth in coal and gas production during the post peak era – we have no idea what the first few of years of oil decline are going to do to the global economy. I’m also highly sceptical of any significant substitution of oil for coal/gas, at least in the early years (the easy subsititution of oil power stations has largely already happened). So even with increasing Mtoe – we still have a major headache.

Lastly - it will be little comfort to Americans and Europeans who are being forced to use less oil for someone to say "ah but Chinese coal production is up 20%, the world has more fossil fuel available than ever before!". Indigenous Chinese coal production, bringing electricity to rural China is not a substitute for Cantarell and US oil imports.

Chris,

Good illustrations following your arguments.
I think the important thing to stay focused on is that oil is mainly a transportation fuel, which easily may substitute the other energy sources, while the reverse substitution is harder to obtain.
It looks as we are trying to solve PO by increasing the consumption from the other energy sources to maintain BAU. PO will, as far as I understand it, mean an end to BAU and I think it will be hard to maintain BAU through substitution. Even growth in money supply won’t solve the problem.

There is no doubt that there are huge coal reserves (globally) but even these coal reserves are concentrated to mainly 4 – 5 countries and the sizes are being increasingly challenged. Post PO general awareness of the strategic value of energy resources (even coal) will grow. Countries that are blessed with those reserves could thus change the rules which could be something different from the present market rules which so easily are assumed will ensure BAU for some more time post PO.

The other thing is that substitution with coal would require retooling of the energy infrastructure that takes decades to accomplish.

Rgds
NGM2

Working with Luis right now, we can show that peak FF will likely occur more than a decade after PO...

Really? But all of this "showing" is based on mathematical models. That, or even the mere sight of a serious chart, is surely enough to burn out the brains of 90% of the electorate. And just 10% would shift most elections.

It follows that even PO itself, never mind nuances such as this, may well attain no democratic existence until (1) there has been a major drop in quantity consumed, owing to swingeing price (US$30/gallon or €5.50/liter for petrol?) or physical shortage; and (2) the inevitable demagogic responses (e.g. price controls and confiscations) have proven useless - and are seen to have been useless.

That very last point is the killer. The likely response to the failure of demagogic measures will simply be spiraling demands to apply them ever more strongly.

I used to be, and still am, a fan of Rowdy Roddy Piper, specifically the message carried in his film "They Live", directed by John Carpenter.
Although dumbed down for public consumption, the notion that we are lulled to sleep while monsters take over isn't lost in translation. The difference is that in real life the monsters aren't aliens, they're fat cat globalist elites and neocon zealots, and they don't NEED pseudo-scientific "beams" to lull us into compliance...they simply repeat the lies often enough till they become truth and quietly consolidate ownership in the background.
And all we ask is to be "left alone, with our toaster and our steel belted radials" just like in "Network".
Howard Beale was right, we're now utterly without value as individuals and as replaceable as piston rods. We're humanoids, and no, we are NOT "smarter than yeast".
Yeast is smart enough to die...we keep hanging on.

Ah Yes Rowdy Rody Piper, another favourite. And Hacksaw Jim Duggan (sp?). And yeast at least excrete alchohol.

My favorite was Jimmy "Superfly" Snuka.

You are mistaken: democracy is not a way to obtain a good government; it is a way to obtain a stable government. Voting is nothing more than a ritualized civil war.