DrumBeat: July 3, 2009


Eager to Tap Iraq's Vast Oil Reserves, Industry Execs Suggested Invasion

Two years before the invasion of Iraq, oil executives and foreign policy advisers told the Bush administration that the United States would remain "a prisoner of its energy dilemma" as long as Saddam Hussein was in power.

That April 2001 report, "Strategic Policy Challenges for the 21st Century," was prepared by the James A. Baker Institute for Public Policy and the US Council on Foreign Relations at the request of then-Vice President Dick Cheney.

In retrospect, it appears that the report helped focus administration thinking on why it made geopolitical sense to oust Hussein, whose country sat on the world's second largest oil reserves.

"Iraq remains a destabilizing influence to the flow of oil to international markets from the Middle East," the report said.

DrumBeat: July 2, 2009


Hurricanes May Increase in Gulf as El Nino Shifts in Pacific

(Bloomberg) -- A shift of warming patterns in the Pacific Ocean may mean more seasons of increased hurricane activity in the Atlantic and more storms entering the oil-rich Gulf of Mexico, according to a study in the journal Science.

The warming of Pacific waters -- a phenomenon called El Nino -- has been moving toward the central Pacific, meaning more storms will form in the Gulf and Caribbean, researchers at Georgia Institute of Technology said in the study. Traditionally, when the eastern Pacific warms up, hurricane activity in the Atlantic falls.

DrumBeat: July 1, 2009


WTO admits some trade limits may be necessary to stop climate change

GENEVA (AP) — The World Trade Organization acknowledged Friday that some limits on free trade may be necessary to stop runaway climate change — provided the restrictions aren't a cover for protectionism.

"WTO case law has confirmed that WTO rules do not trump environmental requirements," the global commerce body said.

Import taxes on goods coming from countries that fail to meet environmental standards might be among the measures exceptionally permitted under global free trade laws, WTO said.

DrumBeat: June 30, 2009


Kurt Cobb: Is the United States drifting toward "war socialism"?

Jay Hansen is a well-known voice on issues of peak oil and sustainability. A systems analyst by trade, he established one of the first web sites (dieoff.org) to discuss these issues in depth in the mid-1990s. His latest web venture is a site called War Socialism on which he describes a form of governance which might become the only viable one in the coming age of scarcity unless we can muster unprecedented global cooperation to manage the decline.

By discussing "war socialism" I am not endorsing it. In fact, Hansen proposes an alternative, a global government that severely restricts human use of the global commons, that is, the natural resources upon which all of us depend. But Hansen is no lightweight. He has thought very deeply about our ecological predicament. He has tried to square what he knows about human behavior with what he believes needs to be done in the world we now face. It is clear from the organization and emphasis of his new site that he does not believe it is probable that the kind of global cooperation he would prefer will actually emerge.

DrumBeat: June 29, 2009


Iraq Oil a Big Draw for Chinese

HONG KONG — As the world’s second-largest and fastest-growing consumer of oil, China is showing increasing interest in oil fields in a country that had seemed until very recently to be firmly in the American sphere of influence for natural resources: Iraq.

Chinese oil companies are expected to bid in Iraq’s oil field auctions that are set to start Tuesday, although Sinopec, the China National Petroleum Corporation and the China National Offshore Oil Corporation all declined to comment Monday about their bidding strategies.

...After six years of war, few Americans or Iraqis may have expected China to emerge as one of the winners in Iraqi oil fields. But signs of stability in Iraq this year, and a planned American pullback from Iraqi cities this week, just happen to coincide with an aggressive Chinese push to buy overseas oil fields.

DrumBeat: June 28, 2009


‘Coal-eating’ bugs may solve energy crisis

Craig Venter, the controversial American scientist who helped decode the human genome, has announced the discovery of ancient bacteria that can turn coal into methane, suggesting they may help to solve the world’s energy crisis.

The bugs, discovered a mile underground by one of Venter’s microbial prospecting teams, are said to have unique enzymes that can break down coal. Venter said he was already working with BP on how to exploit the find.

Venter even suggested the discovery could open up the world’s coalfields to an entirely new form of mining, where coal is infected with the bacteria, allowing methane to be harvested “without even digging up the coal”.

DrumBeat: June 27, 2009


Saving Ourselves: Consuming Within Recharge Rates

In fact, every resource has an inherent recharge rate , in the sense that the "balance of a system can be expressed as a relationship relating all of the inputs and outputs into or out of the system." Water is perhaps the easiest to measure, as in the swimming pool example, although in the real world variables such as soil moisture levels and the location of stormwater basins can make the calculations somewhat more complex. Still, rates are estimable if not outright calculable in most locales, suggesting that in practice we can find the balance point between output (i.e., what we consume) and input (i.e., what gets replaced) for any given resource. Using this framework, the distinction between renewable and nonrenewable resources become blurred, since everything has an inherent (or at least potential) rate of renewal and can thus be sustained over time.

DrumBeat: June 26, 2009


Iran’s Oil Exports So Far Spared by Protests

It may have been no coincidence that President Mahmoud Ahmadinejad of Iran used a petrochemical facility as the backdrop for his first major speech since the elections to blast President Obama and strike a note of defiance after Iran’s controversial election results.

Oil is Iran’s mainstay and the source of 70 percent of the government’s revenue. High prices have enabled the government’s assertive foreign policy in recent years.

But at a time of intense internal divisions within the ruling clique, the presence of the oil minister, Gholamhossein Nozari, at Mr. Ahmadinejad’s speech on Thursday was important, given the speculation that the Iranian president is seeking to tighten his grip on the oil ministry. Mr. Nozari’s deputy, Akbar Torkan, was fired on Monday, apparently for political reasons, and various reports from Iran on Thursday suggested more reshuffling within the strategic ministry.

DrumBeat: June 25, 2009


Recession, expensive oil slow CO2 growth in 2008

AMSTERDAM – The global recession has an up side, at least for people worried about climate change: carbon emissions are growing more slowly than in recent years, Dutch researchers said Thursday.

But they also said the emissions of developing countries were higher than those of the industrialized world for the first time last year.

Less money in the bank, higher oil prices and a growing use of wind, solar and other renewable energy resources put a brake last year on the increase of the most common greenhouse gas blamed for global warming, said the Netherlands Environmental Assessment Agency.

DrumBeat: June 24, 2009


Higher gas prices to hit July 4 travel: AAA says fewer Americans will travel 50 miles or more during the holiday weekend

NEW YORK (Reuters) -- U.S. travel over the Independence Day holiday weekend will drop 1.9% this year compared to 2008, a casualty of higher fuel prices and economic worries, travel and auto group AAA projected Wednesday.

Approximately 37.1 million Americans will travel 50 miles or more away from home during the Fourth of July holiday weekend, typically the busiest time for auto travel in the U.S., down from 37.8 million last year.