![]() | Estimating the World Production Decline Rates from the Megaproject Forecasts | The Oil Drum | DrumBeat: November 20, 2007 | ![]() |
190 comments on WSJ Article - Oil Officials See Limit Looming on Production
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190 comments on WSJ Article - Oil Officials See Limit Looming on Production
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They've been proved wrong so often that their theory has become debased......
When one finger points to you, three point back at yourself.
Unfortunately, the early Peakers have been debased.
A few of us in the PO movement have repeatedly said that premature predictions of irreversible decline will lead to exactly this accusation. At the same time, Peakers take great delight in pointing out all the missed predictions of the cornucopians. So what goes around come around.
Additionaly Peak Oilers make a big argument about "geological decline", when this is not the fundamental issue. The perception that it is a question of access and expense was never made part of PO theory, yet this was clearly the line that Lynch et al were taking.
While Peak oilers were still trying the explain abstruse mechanics of oil reservoirs, CERA have taken the ball and run with it, and now have the ears of the people who matter. This outcome was all too predictable.
To be honest, I don't care if CERA have stolen the PO message, as long as the message is getting on the front page of the WSJ.
I'm an 'early' peaker - essentially saying that 2005/2006 was the high water mark, though acknowledging that a month or two in the future may be higher in production (say, that 3 or 4 major projects all come online in a short period), the essential peak was then.
And unfortunately, my position is based on facts that have yet to be contradicted, even as the statistics grow ever murkier - all liquids is a fine measure of oil production, except it isn't, of course.
Don't be silly.
The non-oil components of "all liquids" compete directly with oil in a number of markets - NGL in gasoline blending components and ethylene feedstocks (plastics), for example - so looking at all liquids is absolutely the correct measure.
It might make sense to normalize the volumes for energy content, but then again it might not - it's not clear that different energy levels make a difference for feedstocks.
What absolute nonsense. Even if they do compete directly, which is only true to a degree, they don't all have the same energy density, so volumemetric comparisons are meaningless. Just assuming that a barrel of oil is equivalent to an barrel of ethanol is plain wrong.
Does that matter for ethylene feedstocks?
I have no idea, but I suspect neither do you, so there's no indication energy density is the key factor you suggest. Hence my qualification that normalizing by energy density may or may not be wholly appropriate.
At any rate, the point is simply that non-crude liquids in the oil supply directly substitute for crude in some very substantial uses. Accordingly, an increase in those other liquids displaces crude use in those areas and makes more available for other uses, effectively increasing the supply of crude. We can quibble about the relative worth of different liquids (I suspect NGLs and ethanol should be discounted by 20-30%), but that's a secondary issue to the fact that the EIA includes all liquids in "total oil supply" for a very good reason.
They've been proved wrong so often that their theory has become debased......
When one finger points to you, three point back at yourself.
Another key argument used by CERA to "prove" we have plenty of oil (in addition to "people have said were were 'running out' before") is to talk about how no one could have imagined cell phones. It then follows that technology will figure out how to get oil out of capped wells.
For numbers they like to include oil sands as if they were oil. Not sure if they include oil shale as if it is oil.
And probably the thing most key to a CERA or IEA argument against peak oil is faith. Faith that there is an incomprehensibly large amount of oil underneath Saudi Arabia and their neighbors. And faith that even though discoveries have been in decline for 40 years, that that is just a "short-term market correction".
How many times in the last five years were the oil shales going to be profitable, switch grass bio diesel, algae, solar, hydrogen?
Why are the Tar Sands of Canada producing such limited quantities of oil compared to their vast "reserves". (flow rates)
How many times was the oil price "not supported by the fundamentals"? (that is it should have been lower)
Lets not forget predictions have been going both ways. I have heard many predictions on MSM about current oil being overpriced and blaming Chavez, Putin, OPEC, Iraq war and anything else except for reduced supply.
Then we get the classic a few weeks ago that we don't have a supply problem it's a demand problem. *scratches head* I always thought they called it supply and demand. The keyword linking the two being AND but I guess when you can't stick a pipe into oil shales that have more oil than the middle east then yeah it's a demand problem *rolls eyes*
Right now today 19 November 2007, you would have to be quite satisfied if you were a believer in Peak Oil being sooner pre 2012 rather than later post 2020.
WSJ *yawn* still playing catch up from way way way behind.
May we live in interesting times :)
Of course they do - it is currently the source of large amounts of oil, after all.
It already has, to a certain extent - enhanced oil recovery technologies have allowed substantially more of the oil originally in place to be extracted than used to be the case.
If you're trying to make an argument that the peak oil theory is not debased, you need to carefully consider what you're going to say and what the real argument is.
Both of your arguments here are off the mark - peak oil is not about reserves. Peak oil is about flow rates, and it's clear to everyone that flow rates are restricted in tar sands (physically) and the Middle East (politically).
In many ways, the peaker obsession with the amount of recoverable oil remaining is a red herring - it really doesn't matter if there's enormous amounts of oil remaining if we can't access it. Many people are clearly resistant to the idea that not much oil is remaining - and for good reason, since you have poor evidence of that - but most people will agree with you that there are above-ground issues limiting the flow rate of oil right now, from political (OPEC quotas, unrest in Iraq/Nigeria, hostile climates in Venezuela/Iran) to physical (manpower and infrastructure capacity limits in the tar sands).
You may really, really believe that the world's used half its oil, but that's simply not the best way to talk about the subject.
Of course they do - it is currently the source of large amounts of oil, after all.
They have reserves greater than Saudi Arabia per CERA. They are pumping astonishingly low amounts of oil if that is the case? Do you think they would benefit from increasing their rig count? Seems puzzling, such a large oil reserve and such a relatively low flow rate???
It already has, to a certain extent - enhanced oil recovery technologies have allowed substantially more of the oil originally in place to be extracted than used to be the case.
Has enhanced oil recovery stopped Mexico from peaking? Has it stopped the US from peaking? Has it stopped the North Sea from peaking?
Both of your arguments here are off the mark - peak oil is not about reserves. Peak oil is about flow rates, and it's clear to everyone that flow rates are restricted in tar sands (physically) and the Middle East (politically).
Well I hope CERA is reading that comment because they are the ones who talk about oil sands reserves being larger than Saudi Arabia without considering flow rate. You appeared to realize that and be defending them a few sentences ago.
Many people are clearly resistant to the idea that not much oil is remaining - and for good reason, since you have poor evidence of that
A peaking of oil production in the majority of oil producing nations is considered good evidence that "not much oil is remaining". A peaking of discoveries and gradual decline over a fourty year period is great evidence that "not much oil is remaining". Only a strong faith-based approach to oil discovery can counteract that. The faith is strong at CERA and the IEA and the mainstream media. Their faith is going to be severely tested as oil prices soar and oil production stagnates or declines. If it weren't such a looming disaster I would say that it is gonna be fascinating to see how long CERA, the mainstream media, the politicians, the average joes, etc., can keep the faith.
Many people are clearly resistant to the idea that not much oil is remaining - and for good reason, since you have poor evidence of that - but most people will agree with you that there are above-ground issues limiting the flow rate of oil right now, from political (OPEC quotas, unrest in Iraq/Nigeria, hostile climates in Venezuela/Iran) to physical (manpower and infrastructure capacity limits in the tar sands).
I don't believe that "above-ground issues" are limiting the flow rate. That's CERA and the mainstream media and the other faith-based oil prognosticators and pundits.
You may really, really believe that the world's used half its oil, but that's simply not the best way to talk about the subject.
I didn't say a word about what percentage of the oil has been used.
Only if you're being purposefully obtuse. Tar sands produce oil, but require more work than conventional wells to get the same amount of oil. Those two facts are not in conflict.
Bait-and-switch fallacy.
You talked about technology getting oil out of capped wells, so I talked about enhanced oil recovery, so now you're pretending we're talking about technology preventing a peak. Different topics.
Re-read what I wrote, then.
The listener gets to decide what constitutes "good evidence", not the speaker. You can insist you're providing "darn good intelligence" until you're blue in the face, but that won't make your points one iota more convincing.
For example:
This backdating trick undercuts your point. Technological advances have allowed more oil to become recoverable than was originally possible, effectively adding "technological discoveries" of oil to the regular geological discoveries.
If we discovered no new oil but recovery rates increased over time to 100%, your method of plotting oil discoveries would show years and years of zeros even while remaining recoverable reserves were rising year after year. It should hardly be a surprise that that kind of evidence is less than fully convincing to everyone.
How long has Campbell "kept the faith"? He's been predicting imminent decline for, what, almost 20 years now?
It's a grave error to assume that someone who disagrees with you is irrational and mistaken.
You're simply wrong. As the most obvious example, insurgents have been repeatedly targetting oil infrastructure in Iraq and Nigeria, keeping hundreds of thousands of barrels a day of existing production from being used.
You may believe that the key is below-ground issues - and you may be right - but don't let that blind you to reality. That you disagree with something an opponent says doesn't mean you must disagree with everything they say.
Reserves are significant because they put a definite limit on flow rates. When there's only 10% of a field left, the flow rate's going to be slow no matter what you do.
And when you're describing these things to people, if you never mention reserves, then they won't understand why flow rates can't be increased. There's a tendency for people to reply to knowledge of peak oil with, "well, perhaps we're short today, but tomorrow the price will go up and more will be produced, so nothing to worry about." Knowledge of reserves, and the interplay between reserves levels and flow rates, that changes that.
Just FYI, spouting trite, childish sayings is not an effective way to defend against claims that your theory has become debased. Indeed, in case you're planning on pulling out the big guns, "neener neener neener" will prove similarly ineffective.
Of course, as BobCousins has noted, the theory has become debased, thanks in large part to people who insist on crying "wolf!"
Don't want to look like crackpots? Muzzle the boys who cry wolf.
Even if we wanted to do it, it's not possible. The guy who cried wolf, in the view of the WSJ and rest of the MSM is Colin Campbell. How are we supposed to muzzle him?
See, the whole 'boy who cried wolf' analogy actually has no part to play in this debate about peak dates.
That boy cried wolf because he was bored.
Lets replay the story, only this time the boy cried wolf because he thought maybe he saw a wolf, or smelt a wolf, or saw the sheep come running as though there was a wolf.
If it weren't for Colin Campbell, would TOD and general Peak Oil awareness be anywhere like where they are now.
Those who advocate avoiding predictions, just incase they come to early, are like some sheep-herder who hangs on until he's quite sure whether its a wolf or just a wild dog killing the herd before running to get the townsfolk.
I'd FAR rather be seen as a crackpot by the ignorant-to-date, and find myself prepared when the inevitable arrives, than worry that the ignorant might choose to see me as a crackpot because they're not broadminded enough to realise that someone yelling wolf isn't necessarily just relieving boredom just 'cos the wolf isn't immediately visible when they go to look.
Pitt, to my mind the argument you make is just totally irrational - and dangerous. Thank whatever we thank for the likes of Colin Campbell for getting us here, today.
[rant over - that ones been building for a while]
[]edit - I retract 'dangerous' - because I don't think those who are saying 'stop making predictions' are actually going to have any effect on those who do]]
--
Jaymax (cornucomer-doomopian)
Hey, thanks, Jaymax. We needed this. A lot.
Don't forget that the boy who cried wolf was eventually right, and the entire town suffered for it. I have never been sure of the moral of that story-- did the townspeople mess up by not responding because they thought that the effort of running to the field twenty times outwieghed the damage to the flock? Of course not. The townspeople fell prey to the same base human flaws that the shepard did. The mature townspeople should have appointed at least a committee to run out each time, or hired a better shepard.
Those who do not read fairy tales are condemned to relive them, said the princess late one sleepless night, while searching for the pea.
It's all very reinterpreting the analogy to your own ends, but:
IOW, do not raise false alarms, as you will lose credibility. Therefore this analogy applies exactly.
This is exactly what some PO adherents have done, and now the WSJ says they have lost credibility. Some surprise, huh?
Anyway, the horse has already bolted. Now that the WSJ are on board with the idea of a plateau, work with them. Get them to ask where future supplies will come from and how much they will cost. Point out that developing alternative energy sources may be a business opportunity.
Probably.
Peak oil didn't become even remotely mainstream until prices shot up and oil supplies were obviously tight. Rapidly rising prices - especially to the psychologically-important $100/inflation-adjusted high level - would get people talking about the difficulties involved with producing oil and possible future problems with or without any particular person pushing the issue.
Has his work in bringing attention to the issue outweighed the reputation for making false predictions he's associated with it? Hard to say.
What use do predictions of a particular peak date serve?
The issue is how producing oil is becoming harder and harder, and satisfying rapidly-growing demand (especially from BRIC nations) will become increasingly difficult. Predicting a particular year for when "slow increase" becomes "slow decrease" is largely irrelevant to that central issue.
If all you care about is yourself being prepared, why bother discussing it at all?
If you care about society being prepared, then how your message is being received is of central importance.
Then your mind is mistaken.
My argument is explicitly rational - I'm saying that the costs (credibility) and benefits (attention?) of making predictions of a particular peak date need to be taken into account to determine whether it's something we should be doing or supporting, and that evidence suggests it's more harmful than helpful. I could certainly be mistaken, of course, and I'm more than open to the possibility that such predictions are more valuable than being repeatedly wrong is harmful.
Mostly, I'd just like to see some more people doing that kind of evaluation of what is useful behaviour. If you believe certain behaviour - such as predicting peak dates - is useful, you should be able to explain why it's useful and why its drawbacks are worth it, just as you should be able to explain the strengths and weaknesses of any argument you support.
Your argument is only rational if you manage to twist historical reality to an absurd degree in order to make it so... You're 'probably' comment re Colin Campbell seems ludicrously false beyond my comprehension.
We are unlikely to come to any agreement on this.
To answer your challenge: Peak oil going mainstream has a solid pre-prepared resource, including the likes of TOD, which only exists BECAUSE of individuals who wern't afraid to make predictions which turned out to be wrong in detail, but who's basis for those predictions was shown to be mostly robust under analysis.
The downside to society from those predictions is virtually non-existent, the benefits have given us several years advance preparation for society. But you will refuse to see that historical reality; why I'm not sure.
You should be able to explain what would be different had those predictions NOT been made - perhaps you think that society would give 'us' more credit, would be 'buying into' peak-oil theory more readily; but 'us' would not even exist, and the Saudi pronouncements on 'peak-oil' would be going unchallenged.
--
Jaymax (cornucomer-doomopian)
Disavowal.
If someone is doing something that reflects badly on a group, and that group does not take pains to distance itself from that person, it's assumed he or she is representative of the group, fair or unfair as that may be.
In this particular case, it might be helpful to see peak oil folk explain why predictions of a specific peak date miss the point, especially in response to media throwing attention at those predictions. Additionally important, though, is to not actively engage in that kind of obsessing over peak dates and predictions - and, unfortunately, doing so is pretty common. People need to not harp on about peak dates, and to stop lionizing those who do so - even though that group includes most of the big names of peak oil.
Fundamentally, a particular peak date only really matters if you expect production to fall off a cliff right afterwards, and - honestly - that's a pretty silly expectation given the broad range of world production. Absent that, the difference between "up 0.3%" and "down 0.3%" is fairly negligible: both are going to result in higher prices, demand destruction, substitution, and increased interest in alternatives.
Crying wolf and predicting or calling a peak may be great for getting attention, but at the cost of diverting attention - and credibility - away from the basic problem of demand outstripping supply. It's not easy to argue against both those who underplay the problem and those who overplay it, but it's important to do so in order for the problem to be seen as it truly is, and to be dealt with maximally efficiently and minimally painfully.
I think that's silly. ASPO, Simmons, Deffeyes, etc., are the ones getting the press, not us. They can disavow us. We can't disavow them. It sure won't "muzzle" them.
We've done that. I don't think it's really useful. People don't care, and it just comes across like 20-20 hindsight.
I could not disagree more. Like Tom Whipple said - nobody cares unless you can give them a date. The first thing they ask him on Capitol Hill when he talks about peak oil is "When?"
Just FYI, spouting trite, childish sayings is not an effective way to defend against claims that your theory has become debased. Indeed, in case you're planning on pulling out the big guns, "neener neener neener" will prove similarly ineffective.
Just FYI, when oil prices are rising rapidly, and production is stagnant and discoveries continue to be dismal, calling a theory that oil production is peaking is as childish as anything a child would say.
Of course, as BobCousins has noted, the theory has become debased, thanks in large part to people who insist on crying "wolf!"
Somebody making a too-early prediction of oil production peaking doesn't debase a theory that oil-production is about to peak. Only a faith-based or childish reasoner would think that. What debases the theory is oil discoveries exceeding oil usage. So in actuality, since the early 1980's, the faith-based cornucopian view of oil production has been debased.
Don't want to look like crackpots? Muzzle the boys who cry wolf.
Oil discoveries peaked in 1965. Oil usage has exceeded oil discoveries for over 20 years. There are some crackpots out there. But they aren't crying wolf, they are crying "all's clear, everyone can come out and play".
I'm not entirely sure what you're trying to say here. The verb in the sentence is "calling":
"Just FYI, when X, and Y, calling a theory that Z is W."
Did you mean to say "calling a theory...debased is as..."?
Of course, that'd be wrong anyway. WSJ may be wrong to call the theory debased, but they're not childish to do so.
Of course it does.
Suppose I have a theory, complete with equations and stuff, that says you'll win the lottery tomorrow. And I keep telling you this, and, day after day, you keep not winning the lottery.
After the 10th time I tell you "my theory says you're going to win the lottery tomorrow!!" and you don't, you're not going to pay much attention when I tell you that yet again. The theory has been shown to have extremely poor predictive power - "debased", in the WSJ's terminology - and hence cannot be taken as viable evidence.
Exactly the same is true about the theory "oil is peaking now!" - it's been trotted out multiple times before, and has always been wrong. Your argument is simply "this time is different!!", and maybe you're right, but the simple fact of the matter is that that's not enough to rehabilitate a debased theory. You need evidence that it really is different this time, and that the factors which made all the previous predictions wrong don't apply anymore.
Simply denying that repeated failure discredits a theory is nothing more than willful self-delusion.
Straw man - nobody's saying that. OPEC isn't, IEA isn't, and even the EIA is talking about "the substantial range of uncertainty in the world’s future oil markets".
If you want to convince an opponent to change his beliefs, you need to understand what his current beliefs are first. Dismissing most of the world as silly cornucopians isn't a very effective strategy.
Theories don't become debased. They are proved or disproved.
And an alternative way of looking at it is that the people who are crying "wolf" are getting others to at least pay attention. Many hands make light work.
And, bad metaphor, Pitt. The boy who cried wolf was right, there was a wolf, and the boy got eaten in the end. Cassandra warned of impending doom and was right, too, and died anyway.
Want to have a rational discussion about these earth-changing issues? Stop being so combative, Pitt.
OK - flow rates are going to under perform our expectations over the short term due to political considerations and over the long term due to geologic constraints and that will cause issues with the American consumer because we are unable to secure a reliable source of affordable petroleum derived products. This underproduction will not be offset with new technological advances due to the capital expense and personal constraints and by the simple fact that some of the recovery technology is in a "pre-innovation" stage. It is unknown how much of this new technology can reliably scale and how energy efficient it is without "real world" data.
Can I now get a cookie?
You're quite wrong. Theories become more or less plausible; they never become "proved".
Newton's Laws, for example, were very well-supported and very plausible...but turned out to be wrong. Similarly, the theory that black holes exist is very well-supported and very plausible, and hence we believe that it's likely to be right, and use it as the basis for further theories.
By contrast, the theory that neutrinos have no mass has become "debased" - strong evidence says it's not correct, although there's no proof per se.
More importantly, though, "oil is peaking" isn't a theory, it's a prediction. The difference is that a theory is general - meaning the theory itself can be discredited - whereas a prediction is a statement about a future event, and hence the credit or discredit when it's shown to be right or wrong is accrued to those who made the prediction and to their methods.
Accordingly, the repeated failures of the "oil is peaking" predictions have discredited ("debased") the entire peak oil crowd, and all of their methods. That's not to say they won't be right eventually - a stopped clock is right twice a day, after all - but it does mean they'll have to work extra-hard to overcome the memory of those failed predictions.
No, you just failed to understand it.
There was a wolf - i.e., the problem was real. By making false claims about the immediacy of the problem, however, the boy desensitized his community to the problem, and ultimately that led directly to disaster.
Of course, it's even worse in this case, since instead of crying "wolf!", the boy should simply be saying "wolves will come along eventually, so why don't we keep them out by building fences?"
Making predictions of a peak date serves very little purpose other than garnering attention, much of it negative. It's possible that attention is worthwhile, but it doesn't seem like it.
Disagreeing is not being combative. But neither, frankly, do I see any need to baby people along. Anyone whose arguments are sound should be able to defend them easily enough.
By using the word "never," you've "debased" yourself.