DrumBeat: November 11, 2006

[Update by Leanan on 11/11/06 at 10:29 AM EDT]

An assessment of world oil exports

This article is a first simplistic assessment of World Oil Exports, here defined has the total amount of liquid hydrocarbons that are surpluses in producing countries. This assessment is made by projecting in to the future fixed change rates that reflect current trends in liquids production and consumption in countries where presently the difference between the two is positive. The outcome of this assessment is worrisome.

Norway Oil Companies Refocus Exploration Strategies

Oil companies on the Norwegian continental shelf are rethinking and prioritizing exploration strategies to ensure future growth, despite the high prices for rigs, contractors and personnel spurred by high oil prices, industry figures say.

Traditionally, exploration costs rise and fall in line with oil prices, but companies are focusing on steadier exploration investment because resources are becoming scarcer.


Irish Police Baton-charge Protestors at Shell Terminal in Ireland

Police baton-charged protestors blocking access to the construction site of a Shell gas terminal in County Mayo in west Ireland, a spokesman said.

Police said one protestor had been hospitalized and several other people, including members of the force, had suffered minor injuries during the confrontation.


The Globe & Mail has a special book review section called Are We Doomed?

Among the reviews: Heating the Ivory Tower (Planet U: Sustaining the World, Reinventing the University, by Michael M'Gonigle) and If You Can't Stand the Heat (George Monbiot's How to Stop the Planet From Burning).


Solar: California's Rising Star


China to Finish Desert Oil Route Ahead of Schedule

China plans to complete a highway across the world's biggest sandy desert, near the ancient Silk Road, six months before schedule to tap oil fields in the western part of the country and reduce reliance on imports, an official said Wednesday.


World Bank: Oil Producing Countries, Companies Can Help Mitigate Impact of Climate Change by Reducing Gas Flaring

The 150 billion cubic meters flared and vented annually are equivalent to 25 per cent of the United States’ gas consumption per year, and release about 390 million tons of CO2 into the atmosphere


Iran's Quiet Revolution

Without oil, Iran would have neither the money nor the wherewithal to develop nuclear energy, much less the bomb. Here, oil is seen as the reason the US overthrew the Mossadegh government half a century ago. And as the world approaches peak oil -- the point at which half of the world's reserves have been depleted, making each successive barrel harder and more expensive to extract -- oil and the atom have become the yin and yang of global energy politics.


Record palm oil exports


Peak Oil Passnotes: Will Oil Rise on the Back of Short Covering?

Last year record long positions were shorted in the last two months of the year. It forced down the price to a floor of $55, around the Christmas and New Year period. Amazingly, after that week the price immediately rebounded up to $61 within days of January 1.

Now we approach the same time in the year again. But instead of record long positions, spurred on by the hurricanes in America, we are now looking at record short positions of 172,000 lots. Could we be looking at the same pattern, in reverse, happening again this year?


Join us to look at end of cheap oil

Try recording how many miles per week you drive in your car. Now imagine that the price of gas is $6 per gallon. You cut back on movies and eating out, so you drive 20 percent less and manage to make ends meet.

Then gas goes to $10 per gallon, and you figure out that you need to decrease your driving miles by 75 percent. What would you cut?


Oil companies tackle malaria, other issues in Africa


Nigeria's savior, and menace

The leader of Africa's most populous nation is endangering not only his own legacy but his nation.


Oil Armageddon!

Oh no! We are Doomed! That's right, doomed! And no I am not talking about the outcome of the election (tough I could be) but doomed when it comes to energy and the world around us. In fact we may be so doomed that I may start walking around with a sandwich board that says we are doomed and that the end is near! Now if you think I am starting a panic, maybe I should, because it is not just me saying we are doomed, but the director of the International Energy Agency, Claude Mandil, himself.


The Nuclear Option

A threefold expansion of nuclear power could contribute significantly to staving off climate change by avoiding one billion to two billion tons of carbon emissions annually
is "babs" mouth bigger than her "boxer(s)" ?
A gentleman never tells :>)
One of the tensions on TOD has been whether we should believe governments will behave rationally when TSHITF and they recognise global oil production HAS peaked. An example to try and draw lessons from in another resource sector is this one on commercial fishing in the South Pacific. For a decade the Sth Pacific nations have worked togther to 'manage' their resources in a sustainable way, and now northern fleets from 'white western fleets (no Muslims to be seen)' have moved in and are out of control:
"Europe refuses to negotiate South Pacific fishing cap:
AM - Saturday, 11 November , 2006  ELIZABETH JACKSON: Fishing representatives are warning a failure to reach an agreement to cap fishing in the South Pacific could lead to a disaster for stocks in the region. This comes after a breakdown of negotiations at meetings in Hobart this week.

Southern Hemisphere nations are pointing the finger at powerful European fishing interests, saying they're set to repeat mistakes already made in the Northern Hemisphere.

And while environmentalists are warning of a possible ecological disaster, Australia is also being warned of regional instability if the European fishing interests get their way, as Tim Jeanes reports."

http://www.abc.net.au/am/content/2006/s1786256.htm

A Glimpse of our Future ?

http://aistigave.hit.bg/Logistics/

I particularly liked the recycled car.

Best Hopes for a Rail Alternative non-oil Transportation future,

Alan


The recycled car was good, but the child riding in the laundry basket horrified me.
Ethanol, farming and the weather:

Yesterday when visiting ADM I jotted down the  yardboard prices on grains.

Grain     Cash    January
Corn      3.67     3.72
Soybeans  6.23     6.83
Wheat              4.98
Milo      3.82     4.03

The prices have risen quite a bit but in the last day or so have fallen some few cents due to USDA crop report just out.

The weather is very bad in my area of the midwest and is causing tremendous problems in the field but the worst is high moisture content in the grain. The farmer gets 'docked'
for this since it requires a lot of energy(gas of what ever form) to dry the grain to good storage values.

If you have 16% in milo then you can lose perhaps $.50 per bushel which is very significant. Much of the grain is going out at 17 and higher. If you hit 20 they might not take the grain or tell you not to bring anymore of it in.

So this is the point I am heading towards. Global Warming and its possible negative effects on ethanol or use of our crops for fuel.

It appears to me and others that the extremes in weather we are experencing is likely due to GW and other facets that are related directly to GW(El Nino,etc).

These effects play havoc with crops and crop management.

Right now we have semi's broken down in the field, tractors stuck, combines struck and damaged due to the condition of the crops. All this might be multiplied many fold in the future if the weather continues to worsen as I assume it likely would.

Some farmers may find they can no longer continue. One of my friends still has a third(1,000 acres of crops) still at risk and still not in the bin. Water levels rising , soil not drying,and more.

Fingers are crossed and the farmers are basically working extremely long and hard hours.

Will all this go in the future just to keep soccer moms happily motoring? To keep the Wal-Marts flourishing? I wonder.

Airdale,

THanks for these posts on the farming perspective. I learn a lot from them.

Francois

i have a question    why are we harvesting in mid november ? is that a result of gmo's, fertilizer use, no till (chemical till )  or is this the historical time for corn harvest  here in the midwest of a ?
When I was a kid and corn harvest was done by hand, we often picked corn till Christmas and then it was extra dry. 100 bushels/day 40 acres at 40 bu/a is 16 days work. Save drying costs pick later. Its much more complex today at 150 bu/a. Today most grain farmers have no cattle to run in the fields after picking.
In my area, upper south ,mississippi valley, most all the corn has been harvested. We are now into milo(grain sorghum) and soybeans. Also planting winter wheat. Lots of it due to the price runup.

These two(beans and milo) are later maturing grain crops and often bad weather can set back the harvest times. Milo has a large stalk and so rain , floods and wind doesn't usually bother them like it does soybeans. They can be smashed flat.

Corn can be almost totally lost due to high wind and extreme wetness. Thats why the want it out early.  

In any event its sometimes early Dec before ALL the beans are done with.

AFAIK hitech farming, such as gmo and no till do not have a substantial effect on the maturing and harvesting. You can buy seeds that have longer germination periods though. You can buy many many different seeds with lots of variation due to soil type,weather , etc.

Farming is a chancy endeavor. You simply cannot control nature. You then learn how to predict or make wise decisions on many facets of it. If you don't you can go under.

Most farmers are very rich, in term of assests but very cash poor. They sometimes only realize their lifelong accumulation when they sell out.

I do know some who brought land when it was cheap and brought lots of it. They are doing extremely well.

Thanks for the above praise. My intent was to let the community know more fully the life and trials of farming, or at least the higher tech style and especially as it relates to our future and the energy situation.  

ok great  one less windmill for elwood to tilt after
Around here we call it land poor.  I'm one of those people.
its summertime and the livin is easy
the fish are jumpin and the cotton is high
Another aspect of the impact of biofuels is the increase in speculation:
Grains Have Gone Parabolic
Prices have been bid up despite high harvests. Of course, that doesn't completely ease the pain from getting docked--or if you can't get it harvested at all.
One climate scientist is looking at more local relationships in the causes and effects of climate change:

Climate Science: Roger Pielke Sr. Research Group Weblog
[http://climatesci.atmos.colostate.edu/]

A New Perspective For Assessing The Role Of Agriculture In The Climate System And In Climate Change
Pielke Sr., R.A., J.O. Adegoke, T.N. Chase, C.H. Marshall, T. Matsui, and D. Niyogi, 2006.

[http://climatesci.atmos.colostate.edu/2006/11/10/a-new-paradigm-for-assessing-the-role-of-agricultur e-in-the-climate-system-and-in-climate-change-2/]

Airdale,
What are the costs per acre of diesel for different farming operation? I am not a farmer (albeit interested in farming), but from my limited knowledge, for any one crop, you would have to pass over the field:
  1. once to plough or disc in the crop residue (unless you burn it)
  2. once to add in lime to balance out acidity from nitrogen
  3. once to harrow or otherwise prepare the seedbed and possibly 'base fertilise' the land
  4. once to spray out germinating weeds and leave a residual weedicide
  5. once to sow the seed and place initial fertiliser
  6. two? times to spray out emerging weed seedlings
  7. maybe once or twice with fungicide and/or insecticide (unless done by helicopter)
  8. maybe once to side dress nitrogen (unless done by helicopter)
  9. once to harvest with the combine

Is maybe 10 passes over each acre in a growing cycle realistic? Or am I way out?

Last two questions:

  1. what is a 'ball park' average of diesel consumption for the machinery involved in these operations (I guess it will differ between the size of the machine, the type of machine, the variable resistance of the soil according to how wet and what type, etc but I am just trying to get a 'feel' for deisel use per crop/acre)

  2. Leaving out climate variability (I know that's stupid, but for the sake of thinking about it), are there farmers at such physical distance from diesel supply lines that movements we have already experienced in deisel prices make their seed-growing operations marginal? Do such farmers have a price point for diesel in back of their mind at which they know they can't keep going, have you heard?

The USA is currently a major corn (at least) exporter. Government has subsidised exports, and this has worked well when oil was cheap.

It seems to me that subsidised exports are hit twice - tax on USA consumers to pay the subsidy, and effective USA subsidisation of Japanese or whoever poultry producers.

The "End of Suburbia" video has been made available for a limited time on YouTube.

This film is an excellent introduction to Peak Oil.

http://youtube.com/watch?v=Q3uvzcY2Xug

Except that the quality of the YouTube upload is so bad that most won't watch very long.
Oil Doomsday

Dingell aims to cut American oil habit


WASHINGTON -- Conventional wisdom says that Democrats, who will control both houses of Congress next year, will somehow cut U.S. dependence on oil, especially imported, and trim the average American's fuel bill.

A Quick look at Foreign Oil


The concentrated distribution of the world's most important natural resource in so many unstable and dangerous localities is truly one of modernity's cruelest realities. Many of the most prevalent oil producing countries are hostile towards the West, despite their reliance on the U.S.'s oil demand for survival; Iran, Venezuela, Nigeria, Iraq, and Columbia to name a few.

Russia near deal to join W.T.O.

-C.

Dingell has been a staunch opponent of stiffer CAFE standards and fuel taxes since I can remember.  I wouldn't expect too much in the way of enlightened leadership from him.

He has - certainly to protect interests in his Detroit district.  I have also recently heard that he is starting to push for higher fuel economy, but I don't know how serious he is about it.
We DONT need stricter CAFE standards.  The usefulness of CAFE expired almost 2 decades ago.

What we need is a massive, government mandated shift to EV, PEHV/Diesels, CATs and large scale commercial shipping transportation via rail and passenger mass transportation via electrified rail.

Trying to 'fix' CAFE is moronic at this point.  Burning MORE hydrocarbons is NOT the answer.

There is no excuse for not making the most efficient internal combustion engines possible.
No.

There is no excuses for continuing to use ICEs when the alternatives are not only viable but far more economical and cost effective in terms of combating global warming and reducing our FF consumption.

I'll say it again.  Higher CAFE standards are NOT the answer.  We need to completely move away from burning FFs in our engines!

ICE engines are dominant because they are the best, most efficient transport we have.  They can be made better, of course, but they have no competition today.  The best we can do today with batteries is the GEM electric car, and it is only useful for slow speed neighborhoods.  I agree that the CAFE standards are a bit of a relic, but can still be useful, especially in curbing the truck loophole that gets around any standards.  Stating that "the alternatives are not only viable but far more economical and cost effective" is not correct.  If there were really viable alternatives we would be making  and buying them.
ICEs utilize only 12% of the energy content of a gallon of gasoline.  If that is the most efficent method of transportation, then my name is Barney and Westexas is Baby Bop.

When I get off work, I will go into more detail on why US auto makers wont build a commercial EV without prodding.  Hint: It has to do with their bloated pension plans and lack of margins on a high efficiency vehicle :)

Wouldn't higher CAFE standard stimulate the economic arguement for whatever alternatives are, for now, uneconomic?
Mandating a certain penetration % for EVs and CATs would work far better then increasing CAFE standards.  EVs and CATs are already competitive to ICEs.
Hello Barney, The ICE may only use 12% of its energy, but it is the best there is.  Sorry, but there is no $20000 EV that can go 70 mph for 200 miles on a D cell battery.  The best EVs are lucky to make a 10 mile commute, round trip, and it doesn't have air, power steering, power brakes or stereo.  I own a 4 cylinder Mazda that gets 30 mpg around town and 35 on the Interstate.  Nothing else in the motor world, of any type, can beat it, except maybe an electric hybrid human powered bike on a trip of 5 miles or less.  By downsizing today's ICE engines to 4 cylinders and making cars smaller (for one or two persons) you can double their fuel efficiency, no tech changes needed.  No other form of transportation will ever be able to compete with that unless aliens come down from outer space and give us micro fusion reactors that run on water.  I would like to get off FF, but it isn't going to happen.  What will happen is our cars will shrink until we are running around in surreys propelled with lawn mower engines.
Tell that to the team that made the Tesla, or to Zapworld.com.  And GM who made the EV-1 in the 1990's but scrapped it because it was too maintenance free.  Or to Toyota with the RA4A-1.
Where does the 12% efficiency number come from?
I've seen it reported to be more in the 20%-30% range.
This site says 20%.
Are you blaiming the ICE for transmission losses, tire losses?
What we need are measures to force automakers to move to electricity and the like, because it's plain that they are too timid to adopt such measures voluntarily.

All of this requires some limits on liquid-fuel use.  CAFE standards or carbon-emission limits are more or less interchangeable measures, but they're susceptible to gaming through category arbitrage (from cars to "light trucks", etc).  Given that electric vehicles are reaching into super-car performance territory, another measure would be to limit the acceleration allowed from combustion engines (say, 0-60 in 15 seconds minimum, set by a governor) and require any additional power to be obtained from stored or recovered energy.  That would greatly increase economy and make hybrids the default for anything sportier than a tow vehicle.

I agree.  The government on the state and federal scale need to get involved and force the Automakers down this path.  Very clearly the time of the ICE should come to an end.
"We DONT need stricter CAFE standards"

Ah ha; Brother troll be working for Chevy.

http://www.netdisaster.com/go.php?mode=tomato&url=http://members.fortunecity.com/ashgann/hothgor .jpg

Bad troll.

Wharf Rat - brilliant, simply brilliant.  

Hothgor - have you no shame?

Didn't Professor Goodse just call out for civility and standards among commenters?

http://www.theoildrum.com/story/2006/11/2/162019/324#more

I don't think there is anything in Hothgor's call for electric vehicles that warrants your attacks on him. Let's let bygones be bygones.

Whatever we think of CAFE standards, I don't think we should be taking a "cartoons of the prophet" approach to people who may dissent from your view.

There are some good analytical arguments on both sides of this issue. Yours is not one of them.

I do not work for any automakers!  I have stated repeatedly that we need to NOT produce any more Internal Combustion Engine powered cars.  That's completely against what virtually every automaker wants us to do!
Regardless of Hothgor's intentions (to which I claim no divine insight), I believe he is correct. We are past the point where we need to continue pushing the ICE. Kill it and the entire culture that it spawned. Move to electricity right now. The ICE will drive a CTL ramp up, coupled with coal replacing natural gas for power generation that is going to worsen the GHG situation considerably. We may well be staring at the extinction of mankind unless we change the way we live. The ICE is part of the problem. Improving the ICE doesn't solve the core problem. Instead it is exactly what I and others have pointed out - it is society refusing to really face the problem head on and instead dancing around the edges, trying to make old solutions fit new problems (cheers to Diamond and Tainter here). Here we have absolute proof of that, yet those of us who see this as a horribly gloomy development are chastised for our realistic outlook! Hysterical!

Rather than improved CAFE standards, I would instead set quotas for percentage of vehicles sold that must be fully electric. The sole exceptions to these might be extremely heavy construction equipment, aircraft, and military usage. But if we moved everything else to a purely electric base, our oil consumption would drop so much that we literally would gain decades to migrate the remaining small percentage of oil users away from oil. Such a program would also lead to large investment in electric power generation, the electric grid itself, and would foster serious public debate about other electric transportation as well, such as Alan's electric rail proposals. In short, a government mandated switch of that magnitude would create jobs, create sustainable infrastructure, and cause developers to plan different sorts of communities to live consistently with these new patterns.

Note: If we cut overall oil consumption to some fraction of current levels, we might actually be able to fill that fraction with sustainable biofuel production. Rather than try to make biofuels fill an impossible niche, why don't we ask what niche biofuels can actually fill then mandate that biofuels go to that purpose with pure electric filling everything else? We are past the point where the wastefulness of a "market" approach can be tolerated to maybe produce a solution. We are rapidly approaching a point where this becomes a li