DrumBeat: December 11, 2006

[Update by Leanan on 12/11/06 at 3:22 PM EDT]

Exxon has updated their report, The Outlook for Energy: A View to 2030 (PDF). Also, they are having a web cast on it tomorrow:

Please join Jaime Spellings, General Manager, Corporate Planning, Exxon Mobil Corporation, for a presentation and discussion of our recently updated outlook for energy through 2030. The event will be webcast on December 12 beginning at 10:00 am CST, 11:00 am EST and should last about one hour. Following the prepared remarks, the presenter will take questions from the audience and via the internet.

Shell may cede Sakhalin-2 control

MOSCOW, Russia - Royal Dutch Shell has offered to cede control of the $22 billion Sakhalin-2 project, Russia's biggest single foreign investment, to state gas monopoly Gazprom after months of government pressure, industry sources said.

Such a deal would appear to mark a victory for the Kremlin, determined to wrest control over the "commanding heights" of the Russian economy, and a retreat by Shell.


Bush to Make Energy a 2007 Priority, Economic Aide Hubbard Says

President George W. Bush wants to make energy independence a domestic priority next year with an eye to gathering bipartisan support in the Democratic-controlled Congress, his chief economic adviser said.


Homeowner’s Insurance and Fire Extinguishers

Everybody is a shrink at heart, and we have seen it on the pages of Energy Bulletin lately. The powerdowners are working like sixty to figure out why we “doomers” are so damn stubborn and won’t sign up for their permaculture classes.


Britons Fume as U.K. Heat Bills Rise to Decade High

Nazrul Islam, who owns a liquor store in London's East End, says his natural-gas bill has climbed by a third during the past year. With temperatures poised to plunge, he can't contemplate cutting back on heat.

"I have two baby sons whom I have to keep warm," Islam, 30, said at his shop in Brick Lane. "I am really angry with British Gas." Islam's latest quarterly gas bill for the summer amounted to 140 pounds ($275), about the same amount he paid for during last year's winter heating season.


Australia: Oil companies 'thumbing nose at govt'

Queensland Nationals senator Barnaby Joyce has called on the federal government to mandate the uptake of biofuels as oil companies continue to fall well short of their targets.


The Iran oil bourse - a new direction?


U.K.: No new money for green energy

The government today launches the latest phase of its grant support system for renewable energy such as solar panels and wind turbines for public sector buildings such as schools - but there is no new money for the scheme in spite of the recent Stern Review.


Ghana: Crisis Action Solution Designs Solar Panels

A local non-profit making organisation based in Takoradi has successfully designed and produced solar panels as its contribution to solving the country’s energy crisis.

The solar panels, which have a lifespan of 30 years, are targeted towards the provision of solar energy for those who are off the national grid, especially rural communities.

The organisation, Crisis Action Solution Organisation (CASOLS), has also trained 164 users on the maintenance of the panels to ensure that buyers derive the maximum benefit from them.


Renewables Growth Fuels Demand for Min-Metals

The U.S. and global renewable industry has grown to a degree where its demands for mineral and metal, as well as financial and human, resources is altering supply/demand conditions in a range of key commodities markets, from corn and soybeans to copper and steel. Recent shortages of high-grade silicon have commanded the attention of industry analysts, as well as existing producers and new market entrants, many of whom are now rolling out plans to expand capacity.


Trading coal for oil may prove profitable

Would it be possible, then, to have a total net loss of energy and still make a profit because you leveraged $90 oil against $12 coal?


Gulf states weigh nuclear program

MANAMA, Bahrain: The leaders of six Gulf countries announced Sunday that they intended jointly to develop nuclear energy capability, sparking new concerns of an impending nuclear race in the oil-rich Gulf just as the international community considers imposing sanctions against Iran for its nuclear development efforts.


Japan announces 82.6 billion yen loan to Iraq for energy projects

TOKYO: Japan's Foreign Ministry announced Monday it would provide a 82.64 billion yen (US$707.53 million; €532.94 million) loan for Iraq to repair and upgrade the country's energy industry.


Oil sinks below $62, Saudi deepens Jan supply curbs

Oil prices eased below $62 on Monday, extending last week's losses, as concern over brimming global fuel inventories offset a likely second supply cut by OPEC and news of deepening Saudi export curbs.


Nissan planning new fuel-cell vehicle

TOKYO - Nissan Motor Co. announced plans Monday to launch a next-generation fuel cell vehicle in the early 2010s in Japan and North America as part of its mid-term environmental strategy.


Australian PM asks industry experts to examine carbon trading scheme

SYDNEY - Australian Prime Minister John Howard asked a panel of industry experts to examine how to set up an international carbon emissions trading scheme to help address global warming.


Raymond J. Learsy: An Energy Agenda For a Newly Energized Congress (Part IV)- Need For Urgent Congressional Oversight of Oil/Gas Futures Trading

The consumption of fossil fuels given their impact on our environment is dangerous to our civilization, but perhaps no less so than the high price of oil. One of the reasons why prices have escalated exponentially over the past few years is the lack of government oversight and transparency in oil futures trading both domestically and overseas.


Kurt Cobb: Mavens, mavens everywhere...

As the long somnolent American public began to wake up in large numbers to the dangers of global warming in the past year, those in the peak oil movement looked on in amazement. The first reaction for many might have been, "It's about time!" The second reaction might have been, "What are we doing wrong? Peak oil should be right up there with global warming in the list of dangers that humanity faces."

Bumpy time for Meals on Wheels

Meals on Wheels, which has delivered food to the elderly and disabled since 1954, is experiencing shortages of volunteer drivers and about four of 10 programs have waiting lists of needy clients.

The rapidly growing population of Americans age 85 and older is increasing the need for nutrition programs and high gasoline prices make it harder to recruit volunteers, says Peggy Ingraham of the Meals on Wheels Association of America.


Put A Termite In Your Tank

Bio breakthroughs are promising much better ways to make ethanol.
Oh, yes.

Homeowner's Insurance and Fire Extinguishers

I'm glad to hear somebody calling B.S. on the psychobabble of permacultists!

BTW: I'm not an IT useless eater, nor an acolyte of St. John the Baptist's Fabulous Apocalypse Circus. I'm an everyday traditional gardener and cow farmer who knows how to grow a good portion of his own food. Terms like "organic" and "permaculture" make me gag.
Take it back to this Time Magazine article on "Why We Worry About The Things We Shouldn't... ...And Ignore The Things We Should"

I suppose people in any group could be covering the basics (good diet, exercise, fiscal responsibility), but I suspect that the organic/permiculturists have an edge on that.

I guess I'm missing something.  Homeowner's insurance and fire extinguishers are something you spend a small fraction of your income and attention on, and then stop worrying about.  Maybe you spend a weekend wiring down bookshelfs and the water heater.

You don't arrange your life (with a large fraction on income and attention) to chase a fire-proof (or earthquake-proof) house.

Nowak's article has a good structure, and at first sight looks like a good defense ... but I think it falls down when he avoids the question of allocation of resources, and in particular opportunity costs.

I mean ... I could spend all my time and money to make my house earthquake safe ... but that is not exactly the same as a quick call to the insurance agent.

You don't arrange your life (with a large fraction on income and attention) to chase a fire-proof (or earthquake-proof) house.

Someone has....and he'll share the wisdom.
http://www.thepeacock.com/Money/Why%20Buy%20any%20more%20TRASH.doc

Homeowner's insurance isn't necessarily a small fraction of your income.  Some people are actually moving because they can't afford insurance (in the Florida Keys, for example).  Isn't that rearranging your life because of something that "might" happen?

I rent, but I still have insurance.  Even when I was so poor I had trouble affording groceries, I had renter's insurance.  A friend of mine lost everything in a housefire.  It wasn't her fault; her landlord accidently set fire to the place while he was trying to make repairs.  But she ended up not even able to go to work, because she didn't have any clothes.  That was when I decided insurance was worth it.  I've paid hundreds of dollars in renter's insurance, and never made a single claim, but, like the cliche goes, it's worth it for the peace of mind.

That might tie into "Why We Worry About The Things We Shouldn't... ...And Ignore The Things We Should" in a different way.

I'm sure the national average for homeowner's insurance is relatively low.

There are also folks who chose to take risks.  Around here it's people who choose to live in the canyons (fire, flood).

That doesn't disprove the general rule.

I'm sure the national average for homeowner's insurance is relatively low.

At least in Ohio, if you there is a mortgage on your home, the lender requires proof of homeowner's insurance.  

Around here (Ohio River Valley), the "risk takers" live in the flood plain.  They often are forced to take this risk bc/ the flood plain is the cheapest place to put a trailer and they can't afford to rent a lot elsewhere.  Theoretically, as flood waters come in, you could just pull your trailer to higher ground.  In reality, most of these trailers cannot safely travel and the occupants do not have access to a vehicle to pull them anyway, especially on short notice.  Many trailers were destroyed in recent floods (the worst being due to the remants of hurricanes Ivan and Frances that came all the way up to Ohio river valley roughly 10 days apart in 9/04).  Local officials have been trying to close down trailer parks in the flood plain or force them to build up the lots but it's hard to enforce as there aren't many alternative locations on flat ground around here that are affordable.

Now, I sometimes ask how is it that they cannot afford a lot outside the flood plain if these trailers all seem to have satellite dishes and the occupants seem to be able to afford a pack or two of cigarettes a day- but that's just my cynical side.

Problem I see with this is in the health-insurance area. Many people feel that one must have health insurance, even though costs are prohibitive for many workers. I gag at the thought of essentially paying 5 or 6 K$ per year to maintain a corrupt and inefficient industry, but this leaves me at risk. Rock <-> hard place.
FWIW, AVERAGE PREMIUMS FOR RENTERS AND HOMEOWNERS INSURANCE, BY STATE, 2003:

http://www.iii.org/media/facts/statsbyissue/homeowners/

Lovely! I see I live in the 1st ranked state
for highest renters and homeowners insurance.
(Texas). Looks like in most instances it is
double the majority of other states. To make
matters worse, we average $.16 kwh for electricity!
Leana, people who live in the Florida keys know that it's a matter of when not maybe!
Peace of mind?  You'd still have no clothes.  You'd still have all your stuff destroyed.  All you'd get was replacement money, which you could already have set aside in a high interest online bank account.  Insurance companies charge a lot of money to take all the risk out of life.  They make a lot of money at it too.  
Renter's insurance is a good deal.  There's a lot of insurance I don't have, but renter's insurance is a no-brainer.  Ditto homeowner's insurance, if you're a homeowner.  

I have online banking accounts, and none of them offer the kind of interest you would need to cover the cost of my possessions if the place burned down. Heck, even investing in stocks during the dot-com boom, it would be hard to turn my insurance payments into the coverage I have.

b3NDZ3La,

There's a lot more to permaculture than appears on the surface. David Holmgren, one of the Australian co-originators of permaculture, has been writing about peak oil (which he calls "energy descent") for a number of years.  A few months ago, Holmgren accompanied Richard Heinberg in a peak oil speaking tour of Australia.

This interview is good background: Peak Oil and Permaculture:
David Holmgren on Energy Descent
.

As Holmgren explains in the interview, permaculture is partly based on the thinking of the late systems ecologist H. T. Odum. Odum is one of the lesser known "grandfathers of peak oil."  His energy analyses (e.g. eMergy - enerygy acconting) have been very influential in many different fields.  Odum's last work was devoted to planning for a post-peak world: The Prosperous Way Down (excerpts)

One thing that permaculture provides is a long-term historical perspective on energy use, and a method for thinking about solutions.  The best example is Holmgren's latest book, Permaculture: Principles and Pathways beyond Sustainability I highly recommend the book.

- Bart
Energy Bulletin

For WestTexas export theory:

Earlier this morning while getting ready for work, I was watching CNBC. The oil analyst they were talking to mentioned Aramco cutting oil exports to China and Asia in 07 by 8-9%. So I was trying to find that on CNBC's website. I found this:

http://www.cnbc.com/id/16143433

"State oil firm Saudi Aramco has told Japanese, South Korean and Taiwanese refiners that it will cut January crude supplies to 8 to 9 percent below their contracted annual volumes, deeper than the 4 to 5 percent curbs it imposed in December."

I'm guessing that is the same.

What I found strange though is this:

"However, Saudi Arabia, whose powerful minister Ali al-Naimi has also cited oversupply, appeared to send the strongest signals yet that a second cut was in the offing by telling major Asian refiners that it will reduce their supplies next month."

So the markets are oversupplied but they are cutting exports below someones contracted amount?

My response to WT will be up in about an hour. It's done, but I have to catch a break between meetings to post it.

I will say that if Saudi put customers on allocation - which was what one story that I read said - that is a sign of a production problem. Allocation is a dirty word; customers don't like to be put on allocation.

Couple this with Bush's plans for 2007 "Energy Discusssions" and my guess is that 2007-8 is looking more and more ugly every day.
God...I wonder if he will be wearing a sweater and sitting by the fire when he talks on TV...HAAAaaaa!! Wouldn't that be a riot?
I think he's chosen something with which he can have common ground, and look like a winner on the nightly news.

Given the way international affairs are likely to go, he needs it.

Expect more ethanol subsidies.

Nah, a ten-gallon hat and six shooters. Sitting around a campfire at Crawford toasting s'mores.
Sweaters are passe...he'll be wearing polartec fleece, man.
What does "allocation" mean?
Purchasers are put on allocation when a producer can't fulfill all of their contractual obligations to deliver oil.
does it make a difference whether they can't or won't?
would it be that easy in the oil world to not honor a contract?
if you write the allocation scheme into the contract, then it is honoring it
I don't know that part of society, but normally a supplier can't really sign a contract that allows him to maybe or maybe not deliver a product (not today, honey, I have a headache), unless a valid reason is present.

It would make singing the contract a useless exercise; the buyer would surely like some level of certainty, that's why he signs the contract. Of course a farmer can have a bad harvest, and that can be written in, but he would still have to prove that, and make clear he's not just selling elsewhere for a better price.

So would KSA have to prove to its Asian customers that it CAN not deliver, for intsance by admitting that Ghawar is dying?

I know someone who used to write contracts for oil services.  I know that in some cases they didn't bother with the why at all, they just defined what would happen "if."

For instance, "if" a customer canceled a contract a penalty of x% would be paid.

Or "if" a supplier was late, it would cost them.

Surely non-fulfillment has happened before in the history of the oil world, and the oil contract-writers put in their "ifs."

Yeah, sort-of-like Bush's "signing statements."

For WesTexas and others,
Hypothetical oil exporting country's NOC produces 5mbd of which 4mbd are exported with the remaining 1mbd used domesticaly. The export is apportioned as 2mbd for bilateral longterm delivery contracts and 2mbd for the "free"--fungible--market. Enter China; it obtains a new longterm bilateral contract for 1.5mbd, thus reducing fungible amount by 1.5mbd. Although the amount being produced and exported remains unchanged, the "market" just lost 1.5mbd in supply.

As export capacity is reapportioned as more bilateral contracts are entered into, it appears that the real number to look at regarding exports is the fungible amount unemcumbered by bilateral contracts. Or said another way, what is the actual supply open to purchase in the "free" market, and how has that changed? It can't be the total amount exported as much of that was sold beforehand, not just-in-time.    

That's what I'm wondering, too.  They've been threatening to cut production to boost prices, after all.

Though Down under's comments in yesterday's DrumBeat are kind of interesting...

does it make a difference whether they can't or won't?
would it be that easy in the oil world to not honor a contract?

I haven't been able to verify the allocation story. I have been searching Google news and I can't find anything like that. It may have been a reporter being a bit liberal with the reporting. If anyone can find a story that says the Saudis put customers on allocation, please link to it.

You primarily put customers on allocation if you have concerns that you can't deliver the product. This is usually due to production problems. The only thing worse is to declare force majeure, and then you definitely have problems.

If it is a true allocation, there aren't that many possible explanations: 1). They are having production troubles (although I think I heard just heavy oil); 2). China is trying to fill their SPR, and Saudi can't fulfill obligations to them and to Asian refiners; 3). They are trying to drive prices up.

As I write this, OPEC oil prices are down this morning.

Maybe KSA should do what Venezuala did last year(?) and buy some crude from Russia to meet its contract obligations!!
I haven't been able to verify the allocation story. I have been searching Google news and I can't find anything like that. It may have been a reporter being a bit liberal with the reporting. If anyone can find a story that says the Saudis put customers on allocation, please link to it.

The links were posted yesterday on Drumbeat. This Bloomberg article actually uses the term "allocation".

And this Ruthers article says other nations will be given their "allocations" next week.

Ron Patterson

Saudi to cut Asian crude
Saudi Arabia: 6 hours, 11 minutes ago

Saudi Arabia has told Asian refiners that they will receive less oil in January stoking speculation that Opec will announce a further oil output cut when it meets on Thursday, reported TradeArabia. At the weekend, Saudi Aramco told three Japanese lifters, two South Korean refiners and one Taiwanese buyer to expect about 8-9% less crude than stated in their contracts.

http://www.ameinfo.com/104963.html

So do these count as the anonymous sources you used to ask for, RR, complaining that they couldn't get the oil they wanted from KSA?
No, what I said was that we should be seeing some leaked insider reports from Saudi - like Heinberg's anonymous source. I don't think across the whole of Saudi Aramco you could keep people from leaking out a secret with implications as big as this. I just try to imagine a huge organization, in which a number of people would have access to the critical data, and it not leaking out.

Ron posted something below from an "insider." However, this person does not claim to be a Saudi insider. It is clear that they are looking at outside information to come to those conclusions. That's the problem. We are all looking at outside data, and the data aren't transparent.

How many "insiders" that know the critical data, wish to share that critical data outside the company, and believe they are safe to do so...do you think there really are, Robert?

Especially, especially...if those "in the know" have been told that by releasing this information could cause worldwide panic and mayhem...that is incentive enough NOT to spill the beans.

I think the insiders already sent their message. Look at the Saudi stock market crash and the timing. Why shout it from the housetops before they have a chance to "get theirs" first?

Also Robert, does this possible allocation give you reason to reconsider your current position of a near term peak? (I realize this is not part of what you wanted to cover with this article but I felt the question was pertinent based on your comments that allocation almost certainly means production problems.)

What is the opposite of allocation?

This paragraph, also from the Reuters article, seems to suggest that at least one Chinese refiner would like less crude then they contracted for:

"The Taiwanese refiner said all its grades were cut, while a source with a mainland Chinese refiner said it had been granted a request for 5-10 percent less crude than it contracted to buy."

How does it work the other way around wherein a purchaser no longer wants what they contracted to buy for lack of capacity / demand?

It sounds more like they're willing to forego delivery rather than requesting less, probably getting a much better price on the lower allocation as a reward [a common business practice].  The company probably feels it can make do with less, or has an ace up its sleeve.
That makes sense.
It's like George Bailey asking, "How much do you really need?"
And the nice lady saying she can get by on less when she knows he barely has that.
"Allocation" means either you have a real sweet deal at that "engineering" firm you work at, or you don't. You gotta have a real sweet deal deal to do as little work as you do, as in "none."

What is that exactly? How did you score that? We're curious? Your fellow female TODer's.

Hello R-squared,

What is the demarcation line for an oil producer between allocation and force majeure?  Does an oil importer have a say in this decision?  Please forgive my ignorance on this topic please.

For example: if Taiwan is not happy with allocation amounts, can they urge KSA to declare force majeure and then buy all they can afford at spot market prices?  This could really make the market volatile.

Are there historical examples to which we can refer?  Say when the US went from net exporter to net importer?

Bob Shaw in Phx,Az  Are Humans Smarter than Yeast?

Hi Bob,
RR probably has a more erudite explanation, but my understanding is that force majeure generally refers to an act of nature (e.g. hurricane, earthquake) that prevents fulfilling a contract. I doubt that declining oil production because of geological constraints could be shoe-horned into this, but who knows?
Hello ET,

Thxs for responding.  Oh Boy, could that make for an ugly international court case in the Hague-- importers sick and tired of ever-reducing allocation amounts suing for force majeure to be imposed based on geologic peak vs exporters reluctance to share critical oilfield data so they can keep their domestic market well supplied/subsidized, and/or hoarding.

Simmons's suggestion for full data transparency and ASPO's Energy Depletion Protocols seems like a quicker and easier path.

One other comment:  if Bush, Putin, King Abdullah, Chavez, Calderon, and Ahmadinejad would read the OUTSTANDING discussion threads of WT's & RR's--what would they want to do going forward?

IMO, if worldwide mitigation doesn't get jumpstarted soon--by default, the Topdogs will be accepting, even working towards the fast-crash scenario.  My two cents.

Bob Shaw in Phx,Az  Are Humans Smarter than Yeast?

Bob Shaw, you have just committed the unpardonable error of believing we're all playing in the sand box rather than playing poker at the adult's table.  Whilst it would be better for the West to have transparency, so our TPTB can use our wealth to manipulate the markets in our favour, the oil exporting nations with a long history know better.  Keeping one's cards hidden is absolutely necessary to poker, and the West's clear tendency to make international trade a 'winner take all' game will persuade them mightily to do so.
Hello ImSceptical,

You may be right.  The more I learn about the Polonium Incident: the more I am inclined to believe that very, very high stakes poker is being played, and keeping one's cards hidden, bluffing, and dare I say it, cheating and/or conspiracy is just part of this ultimately lethal 'winner take all' game.

Please read my 'radioactive' posts near the bottom of this thread.

Bob Shaw in Phx,Az  Are Humans Smarter than Yeast?

 Force Majure includes anything outside of reasonably foreseeable circumstances-so war and acts of terrorism would be also included with natural disasters. Allocations due to declining production would not meet that standard, and the seller would be expected to make up the difference in the spot markets.
  Several years ago the State of Texas Permanent School fund sod its gas to Reliant Energy to lock in prices of about $4.50/mcf, then production declines whacked their delivery. They were forced to buy spot market gas to satisfy their contracts. There has been no ivestigation, and all of the media except the Galveston Daily News have let those corrupt bastards slide. Its one of the reasons I now belong to the throw the rascals out party.
  At any rate, thats an example of geological considerations not being force majure in natural gas contracts. And , buy the way, I'm a landman and this is in my area of professional expertise .
Sorry, I didn't realize that this was already part of one of the headlines above.
There was a story on Friday in the Wall Street Journal saying further OPEC cuts were unlikely:

OPEC Likely to Stand Pat on Output

That was reiterated in today's WSJ in the "What's Ahead" section:

Thursday, Dec. 14: OPEC ministers hold extraordinary meeting in Nigeria. Further cuts in output appear unlikely.

The WSJ appears to be alone among news source in predicting no output cuts.

Does anybody know (maybe in asian news?)/understand how the resp. countries afllicted respond to these cuts? Are the japanese refinieries just happy becuase they have huge stocks built up which they need to process first, or what?

Again: who is not telling the real story? Doesnt Japan AND S.K. AND Taiwan(!) need the oil in january OR cant KSA deliver? Hmm...

Where's a catchy comment from CEO when needed?

Wow! This report in the Guardian has the UK's Secretary of State for the Environment saying that within 5 years he wants all purchases of food, energy and travel by individuals covered by a carbon rationing scheme.

The report is A rough guide to Individual Carbon Trading. The reference to food in the Guardian article, which on first sight is a new issue, looks to be misleading.

Down Under, thanks for the great posts on TOD. The time difference makes your posts appear just as a new Drumbeat is starting up. As a result most of us miss your posts. But I do appreciate your contribution and I would guess others do as well. The post below gives us an idea of just how much faith we can put in CERA's "field by field analysis".

Down Under wrote at 6:05 EST this morning:

I just wonder how many of the fields come in as forecast, for instance, Woodside Petroleum at Chinguetti in Mauritania were supposed to have 750 million barrels with a start production of 75 thousand per day. It started at 37,000 per day and is now down to 33,000 and reserves slashed to 30 odd million.
Enfield in West Australian supposed to come on stream at 100,000 barrels per day, instead low thirties, same for Exeter/Mutineer. Santos was supposed to have a 500/700 million find at Jurek in Indonesia, now down to 50 million and may not be commercial. As well many villages covered in a mud blow out and huge costs to clean up.
And this is from transparent companies. Lots of disappointments coming up I'm afraid.

And thanks to Ace for your great post, also very late yesterday. It reinforces everything I have been saying for the last several months.

Ace wrote:

It is interesting to note that based on the forecast data for both scenarios, Saudi Arabia will never produce over 9mmbopd again.

Ron Patterson

Thanks Darwinian for reposting Down Under's post.  As I understand it, Down Under is a young fellow in the industry with some great inside information.  I would love to see him post more.
Ron

Carrying on from Down Under's post on Santos. Today's Sydney Morning Herald has this on Santos and it pulling out of the US Oil & Gas Business.

http://www.smh.com.au/news/business/santos-withdraws-from-us/2006/12/11/1165685617143.html

Oh yea, this will end well:

Bush to Make Energy a 2007 Priority, Economic Aide Hubbard Says

    President George W. Bush wants to make energy independence a domestic priority next year with an eye to gathering bipartisan support in the Democratic-controlled Congress, his chief economic adviser said.

LEts see:

Told the voters how getting more oil was just a matter of using his political capital to get the Saudi's to open up the spigot.

Used to drill dry holes when he was in the energy business

The whole 'we'll get a stable Middle East by playing "whack an Iraqi" policy'

Why do I fear for the 'domestic energy independence' market?

Consider what plans would give him photo-ops of agreement with the new congress.
My best guess for good "photo op" sessions would be corn ethanol subsidies to midwestern farmers that then both Republicans and Democrats would claim as "theirs" when election day rolls around. Add in if any coal power plant gets built that is done with CO2 sequestering tech involved and both parties will latch onto that too.
One word: (remember that line from The Graduate?
Corn
It will end like it always does, with empty promises about how some new technology will be available in 10 to 20 years to save us (see hydrogen economy). Time has a good article written in 2003 that provides a good description of our failed energy policy.

http://www.time.com/time/magazine/article/0,9171,1101030721-464406,00.html

how some new technology will be available in 10 to 20 years to save us

Or this variant:

They point to 'waste' like the trimmings left on the forest floor from a logging operation and say 'if only that was used, there would be no energy problem.'  When confronted they claim noting is wrong with Tech, its all a=political problem.

The most extreme version - take the output from the sun and claim 'no problem!'.

Other than the shooting, how was the play Mrs. Lincoln?

No, no.  It goes " Aside from that , Mrs Lincoln, how was the play".
Oil producers shun the dollar
http://www.ft.com/cms/s/277471c2-8889-11db-b485-0000779e2340.html

Have I mentioned ELP this morning?

What's confusing here WT and RR is that we are seeing all this "press" that is really pointing to some bad developments, but the markets are just ignoring it all.  Do you think it's just a delayed reaction?
See the "Five Stages of Peak Oil Grief" down the thread.  I think that we will be in the Denial/Anger stages for a long time.

33 years after Texas peaked, the Texas State Geologist was still talking about the possibility of increasing Texas production back to its peak level.

It's not so much the "inner working", the mental process, of the anger stage, but the external acting out of that stage that may well be the key factor deciding the immediate future.

It's a small step from
Anger (why is this happening to me?)
to
This is happening to me because of you, and I will make you pay for that
or
I don't know who did this (not me!), but someone has to pay for my discomfort and pain, so I'll find someone weaker than me and hurt them

Throw in some group, or mass, psychology, and you got yourself a real party.

Can you spell conspiracy?  TPTB are stabilizing the price of oil until late January so the Repugs can blame the Demons in 2008!
Well...my c-theory is that they are trying to squeeze the "last" decent xmas shopping season out of everyone and unleash all the bad news in January.  It will have the bonus (for them) of falling on the Dems...
BTW, congrats on your appearance on the Peak Oil forum hosted by the Foundation for Responsible Television.  It was interesting to hear Mr. Lynch disparage the idea of peak oil, and then agree that the U.S., Britain, etc had already peaked.  It was also telling that despite strong contentions that technology would save us, no one addressed the issue of technology failing to increase U.S. production.
I thought that it was truly ironic that Lynch used the example of a country in terminal decline--the UK--to attack the Peak Oil concept.  As I said earlier, I tried, but failed, to rebut his point.  The host wanted to move on to another topic.

This is really an interesting flaw in the cornucopians' reasoning, especially Lynch and Huber.  In effect, they concede that some regions and some types of energy will peak and decline, but they (especially Huber) assert that our aggregate consumption of energy will effectively increase forever.

hhmmm.  the total drop was $5.3B, and Iran's cut was $4B.  So most of the shift is from Iran.

Maybe Iran is expecting a confrontation in which dollar denominated assets get frozen?

Missed it by six months!

The Nemesis Report, written by an anonymous contributor to the ASPO newsletter of October 4004, from the heart of the oil industry returns with devastating insight. He/she reports that Saudi Arabia will peak in the last quarter of 2005. Saudi actually peaked in second and third quarter of 2005, producing 9,600,000 barrels per day for those two quarters.

An excerpt:

How can I claim that Saudi is about to go into irreversible decline when even on the ASPO reduced recoverable reserves the 50% depletion point will not have been reached? The answer is that Saudi has at various times put nineteen fields into production. Of these eight are "Stars", being highly productive fields that produce around 90% of the country's production. All the others are "Dogs" that have never worked well and probably never will. Recovery rates of up to 50% may be appropriate for the Stars. For the Dogs 10%, 15% or 20% would be more appropriate. Make this adjustment and Saudi has depleted more than 50% of its realistically recoverable reserves. So my conclusion remains--Saudi's final production peak will be in the last quarter of 2004.

Well hell, anyone can be off by six months. Of course with 20-20 hindsight we now know the peak was in the spring and summer of 2005. Still this was some remarkable insight. But this person, according to ASPO works in the heart of the oil industry, (perhaps Saudi Arabia?), and apparently is in a better position to know than the rest of us.

Thanks to Down Under for pointing this article out to me.

Ron Patterson

Hello Ron:

Notice that your link says " October 4004".  :-)

Shouldn't be too hard to look back 2000 years.  :-)

Rick

PS - Oh for an edit button.

By then, no one will even read about oil in the history books. They may even be finished with peak-helium-3 scraped off of moon rocks.

Or they may not be able to read, and into subsistence gardening.

Ron,

It's amazing to me how many people--on a Peak Oil website of all places--are still in the Denial stage.  The Denial/Anger among the population as a whole is going to be something to behold.    

What is doubling amazing is why the simple assertion that Saudi Arabia and the world should show the same kind of production profiles as two very good analogues, Texas and the Lower 48, is viewed as some kind of extraordinarily claim--especially given the all but certain decline/crash of the four current super giants.

Denial (this isn't happening to me!)
Anger (why is this happening to me?)
Bargaining (I promise I'll be a better person if...)
Depression (I don't care anymore)
Acceptance (I'm ready for whatever comes)
What is "happening" to me right now?

The inflation adjusted price for gasoline is still spitting distance from the 1967 price ($2.00 in 2006 dollars, as opposed to today's US average of $2.292).

(Nat. Geo. Dec. 2006)

I'm casting about for ways to get off-grid. What stage does that make me? Bargaining?

I don't think I went thru an anger stage, it was more of a fear stage...

My electric bill is $15/mo, what will your system cost?
My system cost 10 times more, but it is ALWAYS there for me.......
Technically an engineer would compare downtimes.  My 20-year downtime in Southern California is less than 12 hours.  I realize that in some areas it would be much worse.

But for me, it seems likely that I'd have a technician out to fix a solar system more than once, in 20 years.

A grid-tied solar system with battery backup probably increases the overall availability by at least a factor of 10. In rural areas (where I live), which is subject to snowstorms and long repair delays, this seems a sensible combination.

In Southern California, if the grid is down, you will have much worse issues to deal with than just lack of power. And you can probably survive without a heating system that relies in part on electric power (fans / pumps, etc). So I understand your point.

If all you want is backup in case of short outage, you don't need PV panels, only some batteries and a charger (that runs on utility power).  Here in Vermont (definite possiblity of several days outage in winter) I rely on smallish (100 watt-hours) batteries, LED lamps, filled water bottles, and a wood stove.
Well, my home power system - wood stove plus stirling - is goin' along purty good these days.  Looks like I can rely on at least 600 watts from my so-called 1kW system as long as I keep throwin' in them sticks.  Rain or shine, snow or blow, got a winter's worth stacked on the porch and I'm all set.  Beats PV by a real long shot.

Where do you buy one?  Can't. Have to make it yourself, just like me.  Took about 35 years.  But way better than golf or TV football.

Lets see pictures...........

Also 35 years to make it.  What is the EROEI of that?

What did you make it from?

Looks like a stainless steel cylinder about 50cm long and about 10 cm diameter.  

I would have eaten the same amount of oatmeal and deer regardless of what I was doing, so why not this?  EROEI sounds like the noise somebody makes when they grab the wrong end of a hot poker.

Made it from blood, toil tears and sweat, as well as a very big dollop of simple stubborness sprinkled with a dash of stupidity.  Same as any other gadget guy.

Another option would be a combination genset/inverter/battery system where the genset is autostarted by the inverter/charger to charge the battery bank.  That way the generator operates  under optimum efficiency. Once the batteries are charged the inverter/charger shuts the generator off.  Solar PV can be added to become a "PhotoGenset" system.

Concerning PV system reliability, I recently checked on a system that was sold by others- but made operational by myself- it has been operating for 11 years with no maintenance with the exception of adding water to batteries twice a year by unskilled farm workers.  This includes one panel being struck and shattered by rocks from a bush-hog and also being blown out of the ground by Katrina which was still a Cat 2 when it blew through the area.

I often see PV systems still operational in the oilfield that are the original ARCO Solar and Solarex modules that are over twenty years old.

11 year old lead acid batteries are probably the exception rather than the rule...I'd be skeptical of what's left of them.  They probably carry a much smaller amount than their original rated capacity and things like that seem to go ::bink:: and suddenly crap out.

As numerous articles say time and time again, the first place to start is efficiency.  Once you've rung out all of the inefficiency, then it's time to consider PV systems.  This allows you to purchase a much smaller system and less expensive system.

Grid intertie is ideal if you don't need to be off-grid.  It allows you to drop the storage all together, which is a huge expense and lets you put "green" power back into the grid at the time of day the grid demands it the most, and you probably demand it the least (since most people are at work during the day).

If you expect many small power disruptions and want steady power, a small battery setup might prove ideal.  If you expect infrequent long power disruptions (snowstorms, etc) and otherwise steady, a diesel generator might be the way to go.  If you expect many small power disruptions interspersed with infrequent longer disruptions, a combination of a small battery system plus a diesel generator would probably be the way to go.

The PV system powered two irrigation pumps and although I would have not designed it with batteries - the sellers apparently did.  The system is capable of pumping during daylight hours with no batteries.  I anticipated battery failure and in fact told the owners that I had my doubts about the batteries before I saw the system again as 7 years is about as good as it gets.   It would be interesting to put a load test on the batteries to see just what their status is.  I might add that these were not you r typical "golf cart" batteries commonly used at the time.  They were 2 volt Cells configured to 48 Volts.  

The only component to fail on the system was the old square wave inverter, but this was only an optional component anyway so its loss was no big deal other than the cost involved.

Unfortunately there are not many 48 Volt inverters on the market to replace it, but it is not needed for pumping water.  The two pumps are plumbed parallel and each can be isolated and removed for repair if needed.

Regarding conservation and solar, there used to be an old saying:

"Insulate before you Insolate!"


Odo,

I'm a believer in peak oil, but what seems to never be a topic around here is how CHEAP energy still is.  If we really were heading down the backside, I would expect massive increases in  the price of energy in inflation adjusted dollars.  We haven't seen it yet.

It's gonna be ugly when it happens...and the third world is really going to bear the brunt of it.

what seems to never be a topic around here is how CHEAP energy still is

Hush!

I must be some kind of freak.  I went straight to acceptance (and "Let's find out what we can do about it").
I'm still in the "sucking my thumb and hoping this is just a bad dream" stage. :-)
Ron,
      I will contact you by email and tell you who this person is
Thanks, that will be deeply appreciated.

Ron Patterson

On no.  Australia's on fire again.  How sad...
From the 6th:

OSEI tiny link

Kurt Cobb's "Mavens" article touches on something I've been thinking about for awhile.  We TODers are, for the most part, mavens.  Due to self-selection, no doubt.  And mavens are not the ones to popularize or persuade.  

Some have expressed frustration that we spend so much time over charts and graphs, and debating whether the peak was in December or May or three years hence. But that's what mavens do.

A lot of what makes a connector or salesman seems to be innate, so I don't think trying to change ourselves or this site is the way to go.  The EROEI is likely to be poor on that strategy.  ;-)  No, I think we need to bring in people with different talents.  If we really want to affect public policy, we need more Kunstlers and Savinars.

Whipples, Cobbs, Olbermanns, Klares....
Leanan: A lot of what makes a connector or salesman seems to be innate, so I don't think trying to change ourselves or this site is the way to go

You're right, Leanan, we all have our basic personality structures. None of us will end up doing live comedy.

However, it is possible to stretch ourselves. Westexas is the champion here -- going on a talk show with the oil company sharks? Way to go, WT!

In general, the TOD contributors seem to be stretching themselves to get the message out. I've found WT, PG and all the others to be wonderful to work with.

There are relatively simple things that mavens (i.e., experts) can do to communicate more effectively.  

I noticed, during my work as a technical writer, that engineers and scientists "get it" rather quickly.  From their training, they are accustomed to the idea of learning new skills.  I've given an engineer a book on clear writing, and seen their writing improve 500% in the course of a month.

To use Leanan's metaphor, the energy return (EROEI) is very high.

Examples:

  • At the beginning of an essay, summarize in simple terms what your article is about and what the conclusion is.  One to three paragraphs is usually enough.
  • Edit your writing to get rid of unnecessary words. The classic how-to book is Strunk and White's Elements of Style, though modern books on clear writing are also good.
  • If you use jargon, an abbreviation or an acronym, explain it.  At a minimum, put a short translation in parentheses the first time you use a term.  E.g., EROEI (energy return on energy invested)
  • For online reading, keep your paragraphs short: 3-5 sentences maximum.  Numbered and bulleted lists are also effective for online reading.
  • If you use graphs or equations, explain what they mean in simple terms.
  • Choose titles that are meaningful.  Subtitles can be cute or funny, if you want.  Instead of the cryptic "Down the Energy Rabbit Hole," title the piece, "Alternative Fuels That Don't Make Sense: Down the Energy Rabbit Hole."

And so forth.  

Bart
Energy Bulletin

Leannan, thanks for reposting the Energybulletin.Net Mavens, Mavens Everywhere article. I know it got some attention in yesterday's thread, but it certainly deserves more.
  If a person believes that Peak Oil is a huge threat to the economic stability of the world and quite possibly our survival as a civilisation, then it really behooves her to get other people involved. I believe this. I'm of the opinion that individually our efforts matter little, but that collectively we can change the way the world works. In other words, its an effective self-replicating meme, to use Richard Dawkins term.
   I've been involved for years with AA, another self-replicating meme, which has as its premise the core beleif that addiction kills, and that if we don't help others to see their problem and change their behaviour they will die. Evangelism in Christianity has the same premise, that a person will go to hell if he doesn't accept certain beliefs. Peak Oil's is of course that we will kill  the planet if we don't change our energy consumption behaviour.
   Most people don't think. At least 95% are not concerned beyond their next meal or sex act.Just not capable. Of the 5% that can thing, at least half will be unwilling to have their world view changed. But, thankfully, we are herd animals and tend to follow the lead bull.And the lead bull is the lead bull because he sees danger and leads the herd away from it, mostly in reaction to the other animals.
   AA is a good example of the way ideas grow. One person shares with another their experience and hope and the other person responds. Its not by advertising or public relations, and the professionals have no better solution than to send a drunk to AA.
   What we need is for every person who actually beleives this theory to introduce one person to the concept of peak oil today. If only 1 in 20 responds we will have a growth rate like AA's in the early days-exponential. So all you pointy-headed intellectuals, I mean mavens, get one friend or coworker to look at the site today.  
Even with lower gas prices, hybrid sales were up 15% in November (year over year).

That's something that shows the process working, in a messy and imperfect way.  Mavens pushed those cars, just as they pushed front-loading washing machines, and ...

I guess the old saying from advertising is that a good message is a message that works.  All other aesthetic concerns are just noise.

So I'd say there are things that work, and that energies could be doubled down on those messages - hybrids, efficient appliances, global warming ... all gaining traction.

Too little, too late.

Alan

Again, we are essentially at 1967 gasoline prices.  Some of us drive 50 mpg hybrids, with those 1967 prices.

Is that a net win?

Or can you demonstrate a loss?

Mavens pushed those cars

Hey! I haven't yet had to push my Insight! ;0

just as they pushed front-loading washing machines

The real machine to get is a Staber, what maven pimps for Whirpool?

http://www.staber.com/

Top load with the side-load action and water useage.   340 watts peak, 200 or less watts useage.   One big pully drives the wash tank, and simple uunits.

Mmmmmmwashing sexy.

Here's an awesome resource for the maven:

http://www.energystar.gov/index.cfm?fuseaction=clotheswash.display_products_html

The Sears Kenomre HE2 Plus was on sale this past weekend for $650.  It is pretty close to the only Staber on that list, for about half the price.

The problem with the web though is that it is too easy to find unhappy owners.  I couldn't convince myself before the sale ended that the HE2 Plus was a reliable model.

More on washers here, inc. xls format files:

http://www.energystar.gov/index.cfm?c=clotheswash.pr_clothes_washers

When I bought the sauber for my parents (who's washing machine died) these were the reasons.

Stauber makes 4 machineds.  3 have coin slots.   One does not.   (implied commerical better than residential maintience and quality arguments)
The basket is stianless steel
The top loading side agatation ment no door seal.  (Big win here.  Addressed mother's comments)Mechanically simple (thus my father could fix)
Didn't have electronics that could speak German or Spanish - 4 (or is it 3?) knobs.   Electrically simple.

What we need is for every person who actually beleives this theory to introduce one person to the concept of peak oil today. If only 1 in 20 responds we will have a growth rate like AA's in the early days-exponential. So all you pointy-headed intellectuals, I mean mavens, get one friend or coworker to look at the site today.  

If you'll forgive my bluntness...this is proof positive that we're a bunch of geeks that are ill-suited to be peak oil evangelists.  

Pointing people to TOD is, IMO, a very poor strategy.  This is a site for peak oil nerds.  Ordinary peak oilers don't understand it, let alone random people off the street.  

Similarly, PeakOil.com is more a site for people who already understand the problem.  There's info for beginners there, but it's not exactly easy to find for someone just wandering in.

Wolf at the Door and LATOC are better, IMO.  They are meant to convince newbies.  The latter especially grabs people's attention.  (I wish it were formatted better, though.)  

I wish we had a good peak oil movie or DVD.  

FWIW...my sister is a connector.  I told her about peak oil.  She Googled it herself, ended up at LATOC, and was convinced.  But she's not sure what to do about it, other than stock up on survival gear.  (She was already active in many environmental causes.)

"One critical trait for mavens, Gladwell says, is that they have an intense desire to be of service to others."

That is really what you recognize around here, Leanan?

It's too late to bring in the salesmen, both for Peak Oil and for climate change. Who's going to buy disaster, what kind of purchase is that?

"I want you to buy this great product"
"What's it for?"
"It opens your eyes and keeps you up at night, thinking and worrying."
"Well, does it help me find a solution to my worries?"
"There is no solution."
"Then it has no value either, does it?"

That is really what you recognize around here, Leanan?

Yes, it most certainly is.  Many people put a lot of work into this site. Not just the "official" contributors and editors, but a lot of regular users who write blogs, maintain databases, post charts and graphs and articles that take hours of work, etc.  They aren't being paid to do this.  They are doing it because they are trying to help, in the way they know best: teaching and sharing information.

The product has no value within the context of the current system but it is very likely to have value outside of that system.
But people manage to "sell" war of all concepts.
And war is usually a pessimal solution to peoples problems.

It cant be hopless to "sell" peak oil mitigation, it is at least better then war...

Not in America - let me name some of the wars I have lived through -

  1. the war on poverty
  2. the war on cancer
  3. the war on drugs
  4. the global war on terrorism

Those four were more or less official/government names, as I recall. Plus a few other silly names like 'whip inflation now,' which is not quite war, but pretty close, or the 'space race.'

There were other wars against racism, pollution, etc. which were not as official.

We don't even want a list of the real wars America has been involved in where I knew people doing the fighting, but let's just say that that number is also higher than 4 - not every war was publicly announced as such - Central America, for example.

War sells very, very well in America. Long term planning, and living in a modest and responsible way? Good luck on selling that.

Hell.
I think we Merry-Cans have already given it a bellicose name. We call it:

"The War of Independence from Energy, foreign and domestic" (and of Independence from other Phenomenon of Nature).

Mother Nature had better watch out when she tries to tread on us. We sure showed them Iraqi's who is emperor of this universe. We sure showed them Vietnamese people who is emperor of this universe. I think our Condemmer-in-Chief said it best when he said, "Bring it on". There's no war too big for us to take on.

Amazing what one can do with the courage of a reptilian brain, isn't it?

Actually, I think the slogan of a 'war on energy' is just the sort of thing that Bush could say as a slip, when he means 'a war on energy independence' which would involve going to the mall in a SUV and buying a brand new home appliance.

Stranger things happen - like Bush denying he ever stayed the course' about saying 'stay the course.'

Why not jump on the global warming bandwagon?

Isn't it headed in the right direction?

IMO...no, though YMMV.
OK, but to expand on my thinking a bit.  I see a disconnect when people ask why PO cannot get the attention that GW does.  Remember that bit about a good advertising message being the message that works?  If GW is a message that reduces carbon emissions, then it is also a message that works to reduce fossil fuel consumption.  Period.

For those of us who allocation a portion of our time and energy on fixes to the current system(s), and do not put all our eggs in the survivalist basket, that looks like a strategy worth supporting.

I see a disconnect when people ask why PO cannot get the attention that GW does.

Well, I'm not one of those asking that.

If GW is a message that reduces carbon emissions, then it is also a message that works to reduce fossil fuel consumption.

Disagree.  Two words: "clean coal."

On clean coal, if they are serious it will put a damper.  It will cost more and slow plant construction.

Also I believe that every country that has moved down the GW path has put a fee on coal-generated power, encouraging conservation.

Leanan, why don't you like clean coal?

I can see occupational safety and local strip mining damage as concerns.  Are you concerned about it being too temporary as a resource?

It's not that I dislike clean coal.  I was pointing out that strategies to deal with global warming do not necessarily lead to reductions in fossil fuel use, as Odo claimed.
hhmmm.  But do we (including Odo) care about fossil fuel use per se?  Perhaps "fossil fuel" as we ordinarily use it doesn't really include clean coal.  If we were to reduce oil & gas useage, and use clean coal as a bridge, wouldn't that be a good strategy?
I think it depends on what you're bridging to.

If you think the infinite growth/happy motoring lifestyle can continue after the peak, only with electric cars and solar panels, then your agenda is probably quite similar to the mainstream global warming activists.  

If, OTOH, you believe that on the downslope of peak oil, we will no longer be able to support infinite growth and ever-increasing technological complexity...you will not have much in common with the global warming folk.  

Well, I guess we're back to a basic argument, then: whether peak oil is peak energy.

If you feel that resource limits like water are going to be the basic problem, I can't argue with you: I'm not deeply informed on that.

But, I don't see how you can argue that PO is peak energy.  I can see an argument for a heck of a transition problem (as discussed by Charley Maxwell, for instance), but I can't see peak energy.  I just can't see how you can argue that wind and solar won't be sufficient for energy needs.

All previous civilizations were powered by solar energy.  (Wind is essentially solar energy, as is biomass, and domesticated animal power.)  

Why is that no previous civilization was able to reach our level of complexity?  Are we just smarter than they were?

I don't buy it.  I think peak oil is peak energy, because of the amount of work it takes to convert diffuse solar energy into a form we can use.

Why is that no previous civilization was able to reach our level of complexity?  Are we just smarter than they were?

LOL.  No, we are just at "the end of history."

Give it another 20 years and another group will be at the end of history, and wondering about their future.

I suspect peak oil will be peak energy, but not for the reason that you give.  But that with society going downhill, there won't be the capability of setting up a system which could take over and prevent the decline.  I think it's possible to produce more energy after the oil is gone, but it's unlikely.  Wind and solar thermal both have great potential, but I don't think it'll ever be realized.
Well, the nice thing about wind and solar is that they have a high E-ROI, so as power gets more expensive investments in wind & solar will become proportionately more valuable.  As long as the economy is working at all, enormous investments will be directed into them, and other things will suffer a shortage first.

IOW, all available power will be directed to renewables as the very highest priority.  You may not be able to drive for lack of gas, but people will be installing windmills.

"Why is that no previous civilization was able to reach our level of complexity?  Are we just smarter than they were?"

hmmm.  Are you arguing that previous civilizations didn't reach this level of complexity because they were limited by solar energy, and that we've been only able to reach this level of complexity because of fossil fuels?

I would note that Europe was already more technologically sophisticated than any previous civilization before fossil fuels were used in any widespread way, and that in fact FF's were used because technology had reached the point where this was possible.  Technology caused FF use.  Of course FF then helped economic & techological growth in a virtuous cycle, but tech came first.

There is a quote from Isaac Newton that fits here.  He was asked how he accomplished so much more than his predecessors.  He replied "I see so much further because I stand on the shoulders of giants".  IOW, unprecedented achievements came not from being smarter than our predecessors, but because of steady, incremental progress.

"peak oil is peak energy, because of the amount of work it takes to convert diffuse solar energy into a form we can use. "

hmmm.  Well, let's look at diffuseness: on a sunny noontime we receive a kilowatt per square meter of sunlight, and in the US we receive an average of very roughly 4 kilowatt hours per day per meter.  That doesn't seem diffuse to me. The average US residential roof area is roughly 200 sq meters: that's 800 kwhrs per day, and 24,000 per month. That's a lot: about 24 times as much the average household useage.  At even 20% efficiency (a figure that's sure to rise) you get 4.8x household needs.

A 1.5 Megawatt wind turbine might gather 4,000,000 kwhrs per year, in about .25 acres of land.  That's pretty concentrated.  Don't forget, in the US there are about 500,000 oil wells to provide 40% of our oil needs.  That many wind turbines could provide 50% of our electricity needs.

The raw materials we're talking about sunlight and wind.  You should compare those not to gasoline, or even oil, but to oil bearing rock.  How diffuse is the energy in oil bearing rock? How much work is it to gather the oil from the rock into the tanker, let alone refine and distribute it?

The output of PV or a turbine is electricity, and this output is created in a way that's much simpler than oil drilling, refining and distribution.  Especially wind: wind turns the generator, and out comes electricity - simplicity itself.  Compare that to mining coal, and shipping it to the power plant, and pulverizing it, and creating steam to turn the turbine.  PV is more complex to manufacture of course, but in operation it's simplicity itself - light shines, out comes power.

Finally, the amount of work required to gather energy is, in the absence of hidden subsidies, it's market cost.  The cost of wind, before any subsidies, ranges from $.04 to $.08, with an average around $.06: that's a little more expensive than coal or nuclear's direct costs, but it's certainly cheap enough to power civilization. IOW, If labor costs average about $20/hour in the US then a khr takes about 10.4 seconds of labor to generate and provide to the grid - that's not much.

Solar PV, of course, is more expensive.  On the one hand that cost is plummeting.  OTOH,  it's cheap enough to run a civilization on right now: Japan is using PV with no subsidies at all.

Does that make sense to you?

Are you arguing that previous civilizations didn't reach this level of complexity because they were limited by solar energy, and that we've been only able to reach this level of complexity because of fossil fuels?

Yes, that about sums it up.

I would note that Europe was already more technologically sophisticated than any previous civilization before fossil fuels were used in any widespread way,

And I would disagree.

IOW, unprecedented achievements came not from being smarter than our predecessors, but because of steady, incremental progress.

Not quite.  I certainly agree about the standing on the shoulders of giants bit, but progress hasn't really been steady and incremental.  We certainly cannot depend on it to continue.

Does that make sense to you?

No.  Not at all.  You are talking in terms of an economic system that will not survive the end of the age of oil.

Let me put it this way.  If aliens landed on Easter Island just before the last collapse, and gave everyone a solar panel, would it have saved them?

"I would note that Europe was already more technologically sophisticated than any previous civilization before fossil fuels were used in any widespread way,
And I would disagree."

ummhmm.  Could you elaborate?  Sure the Industrial Revolution was propelled by coal, but perhaps the most important invention of the last 500 years was the printing press, which was developed around 1400.  Things were developing technologically before coal was used, coal just sped things up enormously.  Fossil fuels are enormously valuable, but they aren't magical or irreplaceable.  Perhaps just as importantly, oil isn't the only FF: as we've been discussing, coal will be around much longer than oil, and provide a transition (should we choose to use it: I hope we don't, so much).

"We certainly cannot depend on it to continue."

I wasn't arguing that we did (though I think we can indeed count on it, at least to some degree).  I was answering your question as to how we could be more successful than previous societies with renewables.  We don't need any additional breakthroughs to use wind power: turbines are cheap enough already.  Pumped storage is old and proven technology.  Solar is already cheap enough to use, though it would be convenient if it got cheaper, as it is certain to do (e.g. through silicon getting cheaper when greater supplies arrive, and through economies of scale:  capital expenses allocated to ever greater production quantities).

"You are talking in terms of an economic system that will not survive the end of the age of oil."

Buy why, specifically?  I think I've addressed your concerns about cost and diluteness of renewables...so, why do you feel that way?

"If aliens landed on Easter Island just before the last collapse, and gave everyone a solar panel, would it have saved them? "

Im sure not, but that isn't what they needed: electricity wasn't the resource limit they were up against.  If someone handed them tankers of gasoline, that wouldn't have helped either.  Now, if someone had landed and planted a whole new set of vegetation that grew 10x faster than the old trees and replaced the products from the vanished trees, that would have helped...

IIRC, Easter Island had a sustainable economy, it's just that the islanders got a little nutty, and insisted on cutting down their trees, faster than they could grow, for seriously non-essential uses (statues).  Now,  as I understand it, Diamond's argument is that civilizations have choices when faced with economic or environmental challenges.  For instance, the greenland settlers could have chosen to eat fish, and they would have been fine.  Instead, they refused to try something new, and died out.  That's somewhat comparable to GWB refusing to recognize GW, and resisting renewables and resorting to resource wars instead.  OTOH, there's nothing inevitable about this irrationality, and as a society we could choose to go to renewables and be just fine, energywise, in the longrun.

Could you elaborate?  Sure the Industrial Revolution was propelled by coal, but perhaps the most important invention of the last 500 years was the printing press, which was developed around 1400.

The second time.  The first time (that we know of), it was developed by the Minoans.  They collapsed, though.  The technology was lost, and the world did not see the printing press or flush toilets again for thousands of years.

Buy why, specifically?  I think I've addressed your concerns about cost and diluteness of renewables...

No, you haven't, actually.  

so, why do you feel that way?

Because the current economic system is built on infinite growth.  The idea that someone will pay more for the same house in the future.

To quote economist Kenneth Boulder, "Anyone who believes exponential growth can go on forever in a finite world is either a madman or an economist."

"The first time (that we know of), it was developed by the Minoans.  They collapsed, though. "

Well, IIRC the best theory is that they were hit by an enormous tidal wave, which event created the legend of the sinking of Atlantis.  I understand collapse to imply a more or less internal process, rather than an external flattening (in this case, literally).

"Buy why, specifically?  I think I've addressed your concerns about cost and diluteness of renewables...
No, you haven't, actually."

Again, could you elaborate?  I did so.  With such short answers we won't make any headway.

"why do you feel that way?
Because the current economic system is built on infinite growth.  The idea that someone will pay more for the same house in the future."

OK, so you feel this way not because of peak oil, but because of a general objection to our economic system.  IOW, if there was no PO problem, you would still feel this way.  Yes?

Boulder is an interesting guy, and I can't see anything to disagree with in his writings.  OTOH, I don't see any hint that he believed that "the current economic system is built on infinite growth".  Take the example of Japan, which stagnated for 10 years recently with no growth at all.  They felt a little frustrated, but they didn't collapse.  Take the US automotive industry, whose sales figures peaked 30 years ago.

In fact the auto industry is instructive: they've redefined growth as improvement in quality, rather than quantity - the whole economy could do the same thing.

Growth doesn't necessarily mean growth in resource consumption.  An economy can mature for hard goods, and grow in services, like medicine.

Nobody believes that resource consumption will grow forever - in effect that's a straw man (though I'm not suggesting insincerity on your part in suggesting it).  It's a false problem, a bogeyman.  Resource consumption, like population growth, follows an S curve, which has a growth phase and then levels out in maturity.  The real question is whether developing economies can and should raise their resource consumption to the level of mature economies like the US, and in the case of FF's whether they should leapfrog to renewables.

Well, IIRC the best theory is that they were hit by an enormous tidal wave, which event created the legend of the sinking of Atlantis.

Incorrect.  Read Tainter, and be enlightened.  :)

Again, could you elaborate?  I did so.  With such short answers we won't make any headway.

I really don't think there's much point.  I've seen your posts.  You've seen mine.  We are on different planets.

Take the example of Japan, which stagnated for 10 years recently with no growth at all.  They felt a little frustrated, but they didn't collapse.  Take the US automotive industry, whose sales figures peaked 30 years ago.

Not really comparable.  And if peak oil only lasted ten years, I wouldn't be at all worried.

In fact the auto industry is instructive: they've redefined growth as improvement in quality, rather than quantity

No, they have not.  They've expanded overseas to grow their markets.

Growth doesn't necessarily mean growth in resource consumption.  

But they are very closely linked, and there's a reason for this.  The way to grow without increasing resource consumption is efficiency.  But there's a hard physical limit on efficiency.  You cannot continue to improve efficiency forever.
 

"Incorrect.  Read Tainter, and be enlightened.  :)"

Gad, the last time I was in Crete and Santorini there wasn't enough archeological evidence from 1600 B.C. to be that sure of anything!  Well, maybe there has been something new.  When I get a chance I'll catch up...

"I really don't think there's much point.  I've seen your posts.  You've seen mine.  We are on different planets."

Well, don't get discouraged.  I'm very interested in your point of view, and you haven't really discussed in much detail what you think.  From what you've said, though, I suspect we're not as far apart as you think.  

I think you've communicated that you believe that we're going to hit limits to growth regardless of peak oil, and that our economy won't know how to handle that and will collapse under the strain of stagnation, if not decline.

Now, I suspect that your real objection to our current economy is what one might call it's soul-killing consumerism, and on that I would agree.  I think of it through the prism of Maslow's hierarchy - I think a lot of people are stuck at the bottom level.  OTOH, I don't think the cure for that is poverty - I think it's education, especially in what you might call self-help mental health stuff, like meditation, which can help people get beyond the fears etc that make them seem so low-functioning.

On the auto industry: I was thinking of Ford & GM.  Sure, they're expanding overseas, but they're overall sales are not expanding.  Heck, they'd be overjoyed to have their overall sales be flat.

"Growth doesn't necessarily mean growth in resource consumption.  
But they are very closely linked, and there's a reason for this.  The way to grow without increasing resource consumption is efficiency.  But there's a hard physical limit on efficiency.  You cannot continue to improve efficiency forever."

That's not related to what I'm talking about.  You're talking about growth in tangible goods: cars, appliances, homes, etc.  Growth in those things can (and will)level off, and the economy can still grow in services.

I think a lot of people have a hard time believing services are a "real" part of the economy.  They really are.  Furthermore, GDP in the US is now adjusted for quality and features, which means that the number of widgets could stay exactly the same, and if the quality or functionality is judged to have increased then GDP increases.

Now, I suspect that your real objection to our current economy is what one might call it's soul-killing consumerism, and on that I would agree.

You are wrong.  I am not a religious or spiritual person, and I don't a rat's patootie about my soul or anyone else's.  I don't even believe in souls.

I believe Tainter is correct.  Complexity has an energy cost.  Further, I believe that it's a cost we will not be able to continue paying without cheap and abundant fossil fuels.

That's not related to what I'm talking about.  You're talking about growth in tangible goods: cars, appliances, homes, etc.  Growth in those things can (and will)level off, and the economy can still grow in services.

That is a ridiculous idea.  We are not going to grow the economy by selling each other insurance.  The base of the economy is natural resources, and we are going to be reminded of that in a painful and unpleasant manner.

Moreover, our way of life in maintained on the backs of a lot of poor people, many of them working in the hope that one day, they will be rich.  It's a pyramid scheme, and it cannot continue.

"I am not a religious or spiritual person, and I don't a rat's patootie about my soul or anyone else's.'

Ah.  Ok.  BTW, I used soul metaphorically.  I just meant quality of life issues that some people emphasize in their discussion of energy economics.

"Complexity has an energy cost.  Further, I believe that it's a cost we will not be able to continue paying without cheap and abundant fossil fuels."

But why do you believe that?  I've searched through peak oil literature and can't find any support for it. Deffeyes doesn't believe it.  Goodstein and Simmons don't.  Savinar does, but he'll be the first to admit that he's not an primary authority, and he doesn't present any evidence for it.  Similarly, Heinberg and Kunstler don't give any detail about renewables, and dismiss them with a sentence or two.  Hanson provides exhaustive detail about the value of solar, and then dismisses it in a single sentence in which he describes it as dilute, without any explanation or quantitative analysis.

Wind is cheap at $.06, and has a higher E-ROI than oil has had for many years.  Why do you believe it's not as good as oil as an energy source?

"We are not going to grow the economy by selling each other insurance.  The base of the economy is natural resources, and we are going to be reminded of that in a painful and unpleasant manner."

I've heard this idea from people before, but never seen a serious discussion or analysis of it.  Certainly natural resources are a necessary base, but that doesn't mean they have to grow. As an example, farming at one time was 90% of economic activity.  Now, less than 3% of americans work on a farm, and food and agricultural products in general are perhaps 20% of the economy.  I can imagine farmers having the same reaction to the idea that these newfangled factories, making these ridiculous assembly line baubles, could ever be the majority of the economy.   Have you seen this presented as a coherent theory, or as a school of economics?  I'd be curious to research it further.

"Moreover, our way of life in maintained on the backs of a lot of poor people, many of them working in the hope that one day, they will be rich.  It's a pyramid scheme, and it cannot continue. "

Well, they certainly help.  Peope underestimate the value of illegal immigrants, for instance.  OTOH, you shouldn't overestimate their contributions.  I can think of counterexamples, like Japan and Switzerland, where there is a much smaller difference between rich and poor than in the US, and no immigration is allowed.  It seems like a reversal of the Ayn Rand theory that all value in the economy comes from the rich, and just as unrealistic.  Again, can you point me to a serious discussion of this theory?

Hi Nick and Leanan,

 I appreciate your discussion here. I just wanted to provide a link to a recent American Scientist article on Easter Island by Terry Hunt   (http://www.americanscientist.org/template/AssetDetail/assetid/53200?fulltext=true&print=yes
), which was also re-posted on EnergyBulletin, http://www.energybulletin.net/21576.html.

 To me, the article itself is worth a read.  I was kind of surprised (if I remember correctly) at the TOD discussion on this. Personally, I was heartened by Hunt's openness and honesty.  And his ability to take a fresh look - when data appeared to go against his beliefs.

"I did not expect when I first visited Rapa Nui, in May 2000, that I would end up questioning what I thought I knew about the island's past."

To me, the article itself is worth a read.  I was kind of surprised (if I remember correctly) at the TOD discussion on this. Personally, I was heartened by Hunt's openness and honesty.  And his ability to take a fresh look - when data appeared to go against his beliefs.

Unfortunately, anthropologists, like historians, are susceptible to biased interpretations of the past based on their theoretical beliefs. This seems particularly true of authors writing for a mass market. They present the evidence in a way that backs up their theory, but does not stand up to rigorous peer-review.

In particular, the case of Rapa Nui has been made into a poster child for ecological collapse, but closer analysis reveals this theory has significant flaws. We know that islands are particularly sensitive to invasive species. We also know that Rapa Nui collapsed around the time Europeans arrived. We also know that Europeans of the time ruthlessly exploited "native" resources. There are pretty compelling reasons to think that Rapa Nui was just another victim of European expansion.

I am sure there are lessons to be learnt from the past, but we need to make sure we properly understand what those lessons are. I am therefore wary of people who draw simplistic conclusions based on past events, and make unequivocal predictions about the future.

Leanan, what do you think of this article and the two posts commenting on it?
Just remember...that PO will sell itself...eventually.
It's headed in the right direction but crawling along too slowly to have much of an impact on either GW or PO.
Some recent commentators call "tipping point" in the US.

I hope that's true.

I wish we had a good peak oil movie or DVD

I watched End of Suburbia again some months ago (after a year's hiatus) and it hit me (from my current perspective) that it is really good.  But then of course I'm a maven too...

I am not that keen on The End of Suburbia, at least an intro to peak oil.  One, it's too slow-paced.  The first hour is downright glacial.  It picks up after that...but how many will stick around that long?

Secondly, the occasional vulgarity makes you think twice about showing it to your grandmother or at a church function.   I wish they'd bleeped Kunstler, when he said cluster*#@& and $#!+storm.

Thirdly...it interviews Ruppert and puts the name of his book on the screen repeatedly:  Crossing the Rubicon: 9/11 and America's Descent into Fascism at the End of the Age of Oil. I don't want to start another debate over whether he's a visionary or a kook; either way, that title looks nutty to the average American.  It makes it awfully easy for people to assume that peak oil is just more tinfoil-hattery.

I liked CNN's We Were Warned better.  And even that fX Oilstorm movie.  Though they were not without their flaws.

You need to start slow on something like that.  And the reports are that EOS does do the job to wake some people up.  (And it started it all for me.)

Regarding the bits of vulgarity, the DVD has two versions on it (two soundtracks?), one without those.

As for We Were Warned, I thought it was way too fictional / far in the future.

It will be interesting to see how the sequel turns out, "Escape from Suburbia."

Speaking of the 'burbs, excerpts from my favorite all time Housing Bubble Blog article follows.

http://thehousingbubbleblog.com/

The Unfortunate Effect Of Free Money
The LA Times reports from California. "Every day, Will Hertzberg owns a little less of his three-bedroom house in Corona. Like hundreds of thousands of other homeowners around the state, Hertzberg has a mortgage that lets him choose how much he pays each month. Like many of them, he always chooses to pay as little as possible."

"One of his options is to pay $2,513 a month. That would cover the principal and interest as if it were a traditional 30-year loan. A second possibility is to pay $2,279, which would cover only the interest. But each month he always takes the cheapest option: paying $1,106 and promising to make up the shortfall later."

"Hertzberg bought his house 11 years ago for $129,995. With fresh paint and a few repairs, Hertzberg could probably sell his place for $275,000 more than he paid. He would see little of that, however, because he's already seen so much. Over the years he has taken out $190,000 in cash through refinancings."

"`Free money always has the unfortunate effect of making people go overboard,' said Hertzberg, whose living room is strewn with financial publications including American Cash Flow Journal and Donald Trump's `How to Get Rich.' `You'd be surprised how fast $190,000 can go.'"

"Last fall, he went to a mortgage broker and refinanced again to make his payments easier to bear. He thought he would have a five-year window before the principal started coming due."

"But the day of reckoning is arriving early. By paying the minimum, Hertzberg has increased the size of his loan in a little over a year from $320,000 to $332,616. His lender, Countrywide Financial Corp., recently sent him a letter warning that when his loan hits 115% of its original size he'll run out of credit with the company."

"That will happen in about two years if he continues to take the smallest payment option. Then his minimum payment will automatically go up 150%, to $2,848 a month. `If I could afford that,' he said, `I wouldn't have needed this loan in the first place.'"

"It's a sorry situation, and Hertzberg is generous in assigning responsibility for it. To start with, he blames his mortgage broker, who didn't advise him how risky these loans were."

"Few brokers do, U.S. Comptroller of the Currency John Dugan says. In an October speech, Dugan said the marketing materials for payment option loans often `emphasized the low initial payments but glossed over the likelihood of much higher payments later.'"

"Although Dugan and other regulators are taking steps to address both problems, Hertzberg said they never should have allowed these loans to become so prevalent in the first place. `The government wanted to keep the housing party going,' he said."

"Yet who didn't want that? Hertzberg admits he was a willing co-conspirator. `I got spoiled and complacent and was not prepared when the bottom fell out,' he said."

"Several times a week, he gets a refinancing offer in the mail. Hertzberg always looks at these fliers, hopeful in spite of himself. `I'm waiting for a 100-year loan,' he said. `My heirs can worry about paying it off.'"

You know, I just can't explain the housing bubble to Germans - they are absolutely unable to comprehend it, and to the extent they can, it remains essentially beyond their grasp to imagine such a group of people living that way.

Of course, revolving credit cards are a fairly recent thing here - a decade or so ago, you couldn't get a credit card with a limit higher than the amount of money in the bank account which backed your 'credit' - no bank would be dumb enough to actually loan more money for pure consumption than they could be certain of recovering if you didn't pay the card bill at the end of the month.

And as a side note - you have to own a house for ten years before any profit made on its sale is tax deductible here, which to the best of my knowledge is still true. Germany seems to dislike speculation for some reason - maybe it distracts from actually working for a living?

What will save Hertzberg is the crash. He walks. He then walks right into apocalyptoville. He might then wish he was back in the past, and still in debt in his white elephant 3bdrm,2 bath, no basement, boondoogle of an investment gone bad.

Like I said. Leverage up because when the 'puters die its all over for the moneymongers, with the exception of a soft crash but with guys like Hertzbaby how can it go down slow?

Ohh..say.....he might have an arsenal in the crawl space and have planned it all out. Dug his spiderhole down there. Lots of MREs,plastic blowup dolls,firepower,etc.....that would work! What else could he have done with all that refinanced money?

Have you seen Oil Crash? Aside from the repetitive music at times and the fact they redocarated my home office to make it look like a survivalist's bunker, I think it's the best one out there and I'm not saying that just because I'm in it.

In fact, my appearance is somewhat of an anomaly. Every other speaker is by a member of "the establishment": Matt Simmons, Roscoe Bartlett, David Goodstein, etc. No long haired hippies or sandal waearing proffesors if you get my drift.

No, I haven't seen it, and they aren't selling DVDs.  

How can I see it?

http://www.oilcrashmovie.com/index.html

"I sat breathless through the final minutes of the documentary 'OilCrash', maybe the ultimate feel-bad apocalyptic film ever made and the one true knockout at SXSW this year."
Andrew O'Hehir, Salon.com

I haven't seen that one yet.  
They just attempted to send me some clips not seen in the film but the attachment did not work. Once I get em I'll post em to the site.
  I followed through on my own suggestion  and emailed Leo Gold, the host of the New Capital Show on KPFT, a Pacifica Station in Houston. He's interested in possibly doing a show on peak oil. He has a website, I obtained the address through Google, and his show is available on podcasts for free.
  Now if you other geeks would pause between biting the heads off live chickens and email or talk to someone...
If TPTB wanted us to know about Peak Oil we would. I have to wonder about their motives. The lack of preparation will maximize the impact. Who benefits?
The lack of preparation...

Lack of preparation for the sheeples crowd, "pseudo preparations" for the Peak Oil aware but technologically/politically illiterates, the trolls in residence will have done a good job!

Who benefits?

Difficult question, the ones who will benefit may not be the ones who think they will...

what do you mean by "formatted better"? do you mean tech problems like browser compatibility* or layout type stuff? The latter I can do alot with, the former not so much.
I guess it's a layout problem.  It's not browser-specific, because I have the problem with both Firefox and IE.  Here's what it look like:

http://www.theoildrum.com/uploads/226/latoc.jpg

I think the problem is that you have your page formatted for a specific text size.  But your visitors may be using a different text size.  In particular, people with very large screens and high-res video cards may have their text size set very large.  Otherwise, the text looks like microfilm.

You might try looking at your site with different text sizes.  With IE, go to Tools -> Internet Options -> Accessibility.  Check "ignore font sizes."

Then see what your page looks like with different text sizes.  (You can change your text size under View -> Text Size.)

The problem here is all the images have fixed positions, so if the user changes the text size the text moves but the images don't. I had a look at some other sites generated by Homestead Sitebuilder and they have the same problem, so perhaps it is an inherent feature of Sitebuilder?
Interesting.  I didn't even know that was possible!
Interesting.  I didn't even know that was possible!

It's these new-fangled style sheets! They provide greater control for the designer, but can lead to less flexibility for the user :(

Is there an easy fix?  Something you can just change in the CSS file?
I don't think so, the positioning info appears to be embedded throughout the HTML for the page. The HTML is generated by some sort of web design software I never heard of before.

I'm no expert on HTML tho, I'm just a dabbler ;)

That's exactly what is. I would need to hire a pro to redesign the site to fix the problem. Not feasible at this time.
That's why I have a basic Peak Oil talk that I will give to anyone, anywhere, that shows the faintest flicker of willingness.  I'm a true maven at heart - I'm a lousy connector and salesman.  However, I'm a reasonable speaker and enthusiastic about the importance of the topic, so I try to leverage that into a bit of a sales job. It seems to be working so far - I've made a half dozen converts in three talks, and I even halfway convinced a techno-cornucopian skeptic who used to work in Fort McMurray.

By the way, I was wondering if there might not be a linkage between a propensity to be a maven, and the Meyers-Briggs INTP type that seems to be over-represented on TOD?

How bout as ESTJ here?
ENTP/ENFP here

I CAN sell.  I have "Awakened"  many in the last 6 years

Still, it's only 1 in 20 or 1 in 30.

1 in more than 50 are actually doing anything about it.

But the ones that I did awake thank me.

There are reasons for it all.  Maybe Not everyone is SUPPOSED to wake up to it.  

Fare thee well
Peace
John

By the way, I was wondering if there might not be a linkage between a propensity to be a maven, and the Meyers-Briggs INTP type that seems to be over-represented on TOD?

INTP here with maven-ish tendencies, though I'm more of a generalist than specialist.  I wonder if someone can set up a TOD poll on the meyers-briggs.  It would surely prove interesting.

Other polls I would like to see:

Gender split:
M/F

Income level:
0-10,000
10,001-17,000
17,001-23,000
23,001-33,000
33,001-50,000
50,001-100,000
100,000+

Residence:
City
Suburban
Exurban
Rural

Daily (round trip) automobile commute distance:
0 miles (ie, walk, bicycle, work from home...)
0-11 miles
12-20 miles
21-40 miles
41-60 miles
60+

I'm going to drop these poll suggestions in a fresher thread

white males with incomes over $50,000 are probably the most represented demographic here.
That's you, right? ;)

How's the multi ethnic apocaly eco-commune coming along?

Which higher power will restore us to energy sanity?
The Invisible Hand. Perhaps not Smith's but Darwin's.
I don't see how better "marketing" will achieve real results for PO.

Compare it to GW.  It wasn't media that did it, in this instance media followed.  People were vaguely aware of the concept, like PO, but needed something real.  Then came hot summers,  warm winters, and early springs.  People noticed this, and Katrina shoved it down their throats. Even while denying it, many are silently thinking otherwise.  

With PO, the thing that will ultimately convince most is the price of oil.  Something they have to deal with.  Then the media will follow.

I see an interesting analogy in the species diversity arguements of 15 yrs ago.  The media jumped on it prettty well for a scientific hypothesis.  National Geo hit it months running, it was all over best sellers list, tv specials abounded.  But it never hit a chord most could feel.  And tho it was correct, it died a slow death in the field of attention.

I agree.  Decisions on what to buy, how much to spend, what to eat are all made by millions of people every day.  Energy prices will rise.  People will cut back.  Those who can invest in energy saving ways will, those who can't afford to won't.  When food becomes real expensive, we will subsidize it for the poor in America, while the poor in poor countries starve or revolt or both.  The media and the government will jump in way too little, way too late.
"The media and the government will jump in way too little, way too late."

That's why I believe it's good to get the word out as soon as possible and as far as possible.  Even if someone doesn't "get it" right away, it may linger in the back of their mind until something triggers it.  The response then will be harder and faster than if they had just heard it.

Here's my Nov '08 prediction:

McCain/Guliani  52%
Clinton/Obama   46%

unless the "terror stoplight" goes to red, of course...

I can't see Guiliani on the GOP ticket, even on the bottom.  He's seen as a 9/11 hero, but in the rough-and-tumble of a presidential campaign, his less-electable side will emerge.  He was going down in flames the summer before 9/11, even in tolerant NY.  He was photographed with his mistress, and the pics were all over the tabloids.  His wife found out he was divorcing her when she saw it on TV.  He didn't even have the grace to phone her and tell her their 20-year marriage was over; instead, he called a press conference on the front steps of city hall.   They had an ugly court battle over whether he would be allowed to bring his mistress to Gracie Mansion while she and the kids were there.  He ended up moving out...and in with friends, who happened to be a gay couple.

This is not going to go over well with "the base."

"The base" don't particularly like McCain either, but who else is there for the Republicans?  Personally, I think I'm going to support Wesley Clark again if he runs (which I'm pretty sure he will).
Stranger things have happened...but I don't think McCain will make it, either.  
Don't worry, I have no confidence in my "prediction" either.  Who knows what'll happen.  But I do think my Democratic ticket has a reasonable probability, and I see no possibility that the Dems will win.  Of course this all requires the belief that the whole game isn't rigged anyway...
As recently heard in Iowa,"Go Tom Go".  The last former school teacher in the White House was LBJ. Kind of brings us back to that 1967 gas price.
Clark and Powell...that would be an interesting ticket, don't you think?
Cher for President. Imagine congressmen and/or world leaders attempting to negotiate with her. Maybe Angela Merkel would keep her head, no others.
Give Ahmedinejad a private meeting with Cher and see if he doesn't come out a whipped puppy.
If the Repugs had such great success with a B actor and windy after-dinner speaker like Reagan, I say the Dems should go with  a great actress.
Make it a tag team. Little Richard for VP. If you don't give in to the Pres she could sic Richard on you.
Politics is half entertainment anyway. Why not have some fun?
Have you folks read "The Wisdom of Crowds"  by James Surowiecki?

Subtitle  " Why the Many are Smarter than the Few---"

A fun and fast read, and no worse than harmless- and maybe a lot better than that.

More copper thefts.  This time of thousands of feet of wire downed by snowstorm in Washington state.  Wonder why those outages take so long to repair?
We deal with this problem on the railroads a lot. Sometimes the copper that is stolen is grounding connections used for equipment and personnel protection, and it may not be apparent for months that it is gone until lightning damage occurs.

For railroads, the answer to copper theft and vandalism is to reduce their wayside equipment (signals, switch interlockings) as much as possible, in favor of onboard electronics. THis also helps with reducing maintenance travel and power usage.

The irony of this solution is that the overall signaling systems become more complicated (safety software), and what is worse, more reliant on specialists to support and maintain them. In some way railroads then become more fragile, since you can not operate a modern freight railroad without a whole seconday support infrastructure.

In the old days, all you needed to run a railroad was rolling stock and rail. Today, you need highly trained software engineers, and technicians with laptop computers to design and maintain the essential infrastructure on a daily basis.

I think railroads will not be the only industry that will have to refocus their capital aquisition programs away from the "reduce manpower and automate" that we have seen in the past in their quest for profitability.

I support Alan's quest for more electric rail service. I just think that it also needs to be coupled with "design for maintainability" in a post-peak environment, using lower-skilled maintenance people.

 

Improved signaling has proven to be the cheapest way to expand capacity.  The name of the "best" system escapes me ATM, but it allows 2 way traffic on both tracks, with trains changing sides, back & forth, as needed.  Obviously a robust, fail safe system is needed.  Amtrak's NorthEast Corridor is one example.  I understand that the Alaskan Railroad also has superb controls for it's single track operation.

India seems to have copper thefts under control for their electrified system (main lines).  Of course their manning levels exceed US standards by about x100.

Adding tracks & sidings & grade seperations & heavier weight rail, ballast and concrete ties are more permanent and more robust improvements than signaling, but I expect continued pressure for better signals. They are "cost effective".

BTW, read a bit about the Alaskan Railroad, single track Fairbanks to Anchorage.  State owned, breakeven operation.  They are replacing 90 to 115 lb rail, wooden ties and river gravel ballast with 145 lb rail, concrete ties and cracked granite ballast (this ballast "locks" in freeze/thaw conditions) as well as improving curve banking, more sidings.

Not sexy, but long term durable !  First they improved signals though.

I am NOT against better signals, but I like better roadbed (and electrification) more.  Did you see my post about BNSF capital spending yesterday (I also mentioned grade seperated, dual track bridge in Kansas City to seperate N-S from E-W rail traffic that unplugged a bottle neck for several RRs).

Best hopes for better railroads,

Alan

Alaskan Railroad is one that is moving to use advanced "onboard signaling" concepts to get more capacity and safety out of their railroad operations. They are a good example of the tradeoff between complexity in the office control systems vs reduced spending on wayside signaling infrastructure.
Yes, so a move towards complexity in that area of signaling.  But their track work improvements should last 50+ years, with residual benefits for a century+ (cracked granite ballast is not going anywhere).

All good under the current economy.  If things degrade, some good (trackwork) with some bad (too complex signaling).

Using 1890's semaphore signals (easily retrofited IMHO) would reduce track capacity (by 1/2 ?) and speed, but the trackwork will keep things rolling.  But in a degraded economy, will the extra capacity be needed ?  Could Alaska ship in and out all that they need with 145# rail on concrete ties and semaphores ? Could they cobble together enough imported scrap track, local wood, river gravel, etc. for a second track over most of the length, giving more (slow speed) capacity despite degraded signals ?

The same is true elsewhere.  IMVHO, a degraded economy that cannot support complex signals will also need less freight.  Basically zero truck and half of today's rail ???

All guesswork, I know.

Perhaps the need to keep the railroads going will help preseve some complexity.

Best Hopes,

Alan

PS: Do you see improved track going in with improved signals ?  What RR are you with, if you want to disclose ?

Alan,

I am involved with the railroads' signaling communication systems as a contractor.

The whole issue of railroad command and control intrigues me greatly, since "design for post-peak" (once it it in vogue) will have different priorities than we have today. It is actually very hard to design electronic signaling systems that can match the old semaphore or paper permits in terms of robustness. (Of course, modern systems are more cost-effective and run trains more efficiently, in exchange for complexity).

An electricified railroad will also probably need extensive SCADA control of its substations, and hence will have similar issues with distributed control system complexity and grid reliability as we have for the signaling systems.

For today's systems, a 100% reliable grid is assumed (with localized battery backup. (say 8 to 24 hours). A widespread grid failure for more than 24 hours will normally severely disrupt train movements, since the dispatchers need to communicate with the train crews somehow in the absence of working signals. Once radio/cell towers run their batteries down, things pretty much stops. Today the railroads deploy emergency generators on a small scale (e.g. after a hurricane), but this will not work if it has to be done often and widely.

Francois.

Francois: It is actually very hard to design electronic signaling systems that can match the old semaphore or paper permits in terms of robustness. (Of course, modern systems are more cost-effective and run trains more efficiently, in exchange for complexity).
Important point - one that applies to many other systems as well.  Modern cars vs old ones. Digital data vs paper.  Automatic garden watering systems vs by hand.

I haven't seen this general point elaborated upon.  It would be an important factor to consider as energy becomes more expensive and less dependable.

-Bart

And human labor becomes cheaper...

I've been saying this for awhile.  We should consider designing the way they design for Third World countries, where replacement parts, reliable power, expect technicians, etc. may not be available.  The Ghana story I posted above is an example.  They not only designed the solar panels to last 30 years in off-the-grid areas, they also trained 164 people to maintain them.  You always see this with stories about technology from Africa: they mention how long the item is expected to last, and how it will be maintained.

It's something U.S. engineers often don't even consider.  (The stories I could tell you about engineers who never consider how their product will be manufactured or maintained...)  

(The stories I could tell you about engineers who never consider how their product will be manufactured or maintained...)

Ahh, there are a few of us left.  However, it is not a valued skill anymore.  Rather, it is considered "grunt work" - a common ability to be farmed out to the lowest bidder in a "Low Cost Country".  No, the thing of value in a company today is the "Intellectual Property" (in reality mostly sales, marketing, and financing strategies).  

To design a product, you hire a consultant "expert" who has promised you anything he has to get the job, regardless of proficiency.  He then does 50% of the work and dumps off a partly finished mess on what's left of the company's in-house design team.  Usually such efforts are so pathetic - it's sad to see how ignorant some of these people are about what it takes to make a manufacturabile, reliable product.  Funny how the skills that are cast off as "not a core competency" are the very things that they cannot begin to get right.

This reminds me of the electrical wiring in my Mom's house.  It's clear different electricians were brought in to put in one or two lines or make an emergency fix, and just had to quickly add that to whatever was already kludged together in that box.  There's no way you could tell most homeowners (particularly of old and multiple-owned buildings) that you had really ought to take a couple dozen hours or so and trace everything, rerun whatever needs it, then label everything and make sure its safe and solid.

It's a paradox I hit as a contractor, building something that takes a lot of concentration and care, but if you are stuck with a fixed project budget, the more thought and patience you apply will apparently be 'devaluing' your work, not enhancing its worth.  Especially true with factory labor, of course..

'Speed Chess' can bring out one kind of genius, but sometimes, it just takes more actual Labor to make it Better.

imo bush has said about two intelligent things in the past 6 yrs and he was roundly criticized for both 1) "dont drive unless it is necessary" owtte  and 2) "we are a nation addicted to oil"
"The job of the President is not to wield power, but to divert attention away from it"

Apart from a few minor lapses, GWB does an excellent job!

I thought this article by Alan Guebert, the ag columnist, was interesting.  It deals with some expected Ag bill changes resulting from the November election.

Behind the scenes, however, some Dems already are shaking their brooms. In a briefing with Capitol Hill aggies Wednesday, likely incoming House Ag Committee Chairman Collin Peterson laid out his hopes for the full committee and his version of the 2007 Farm Bill.

Peterson, a penny-pinching Minnesotan, expects the committee to be composed of 25 or so Dems and 21 Republicans, the reverse of the current split. He also will seek a new "renewable energy" subcommittee to oversee today's growing biofuel industry. Its likely leader will be the Ag Committee's vice chairman, Tim Holden of Pennsylvania.

...

The soon-to-be chairman also offered key elements he wants to include in the legislation: a standing disaster title, a new, 5-million acre biomass reserve, keeping today's near-40-million-acre Conservation Reserve Program, moving Department of Energy loan programs for biomass to the Department of Agriculture, and extending today's general commodity programs but with adjustments to current target and loan prices.

Noticeably absent in that wish list, however, are the National Corn Growers Association's idea to move farm price supports to a revenue-based insurance program and the Administration's call to loosen restrictions on ethanol imports. Peterson supports neither.

The new installment of Help! Home for sale.  

This family was in Indiana, which wasn't bubbly.  But the market turned sour just as they bought a new house.  Now they can't sell their old one, even at less than what they paid for it four years ago.

They bought it for $80,000 in 2002, shortly after their wedding.

...In nine months, they've already reduced the price twice; they're now asking $69,900. Even if they get that, and that's looking unlikely, they'll still lose a substantial amount on the transaction - especially factoring in selling costs and the $500 a month they have paid out as the house has stood empty.

"Originally," says Karen, "our goal was to make enough money to pay off my student loans and my van and leave enough to put down a good chunk on the new house."

Hello TODers,

Things are happening so fast that it is next-to-impossible for me to keep up!  The Polonium hitjob fascinates, and scares me at the same time.  Now come hints that it is a 'false flag' operation from a German scientist as reported by a Chinese news agency:
--------------------------------
BERLIN, Dec. 11 (Xinhua) -- A German radiation expert doubted Monday that Russia was involved in the polonium-210 poisoning of former Russian spy Alexander Litvenenko.

Sebastian Pflugbeil, president of the German Society for Radiation Protection, told ARD national television that he would not rule out the possibility that the poisoners had deliberately strewn traces of the isotope in London and Hamburg to mislead people.

    "If you keep polonium in a tightly shut vial, you can transport it without contamination and don't leave any dirty trail," he said, adding it was too obvious to be credible.

    "Either these killers were rank amateurs, or, and I think this is also plausible, a trail has been deliberately created to cast suspicion in a certain direction," Pflugbeil said.

    "What is remarkable here is the way it was done," he said, "Secret agents are normally trained to kill without leaving any evidence. But in this case, it's not just a trail. They have practically bulldozed a superhighway all the way to Moscow. They wanted to make a spectacle of it."

    Pflugbeil, a physicist who has previously studied how East German secret agents abuse radioactive material, said that he knew of no case in which secret services had used polonium to kill an opponent.
----------------------------------
Bob Shaw in Phx,Az  Are Humans Smarter than Yeast?

Hello TODers,

Interesting Guardian/UK editorial on conspiracy theories coming of age:
-------------------------------------
Excerpts:

Thus politics in Russia, the one common denominator in the Litvinenko enigma, may have nothing to do with evolving democracy or our old friend market forces, but rather is a murderous clash of oligarchies over wealth, like Machiavelli's Borgias, or a Hollywood Godfather IV view of events.

It is true that the classic question by conspiracy theorists - cui bono, who stands to gain? - provides only speculation; it suggests "why", but does not show "how"...

...If conspiracy theorists are mad, one then has to ask why we wait with baited breath, as in an unfolding Greek tragedy, while the Metropolitan police investigate the possibility, hardening week by week, that unbelievably there was a criminal conspiracy hatched inside No 10 [Downing Street].
-------------------------
Yikes!  TODers from Europe--what the heck is going on over there?  Expat, Euan, Jerome, et al, what does the Euro-public believe: false flag or a true Russian hitjob?

Bob Shaw in Phx,Az  Are Humans Smarter than Yeast?

German news reports tend to be fairly vague about the latest discovery of polonium in a number of places in northern Germany, including an apartment and the children's bedroom, washed and unwashed clothing (got to love German police thoroughness), and other not well specified areas.

Germany's largest circulation paper had a huge picture and 6 words describing some crime against some media star this morning - normally, this is the sort of news that Bild Zeitung would scream out in a headline like 'RADIOACTIVE ATTACK FROM KREMLIN.' Instead, absolutely nothing for the casual observer to see about this on the entire front page.

What is more interesting, to me at least, is how little publicity this has been getting. The Western world (or at least that part which believes in a global war on terrorism) has been preparing for a dirty bomb attack for years, and now, what happens?

Nothing much - no security alerts, no radiation detectors going over every single thing arriving from Russia, no rounding up of 'suspicious' people named Ivan or Boris.

Even more striking, the fact that a number of peoples' movements are being tracked through various means (yes, cell phones records are very useful, though when such testimony is given, it is behind closed courtroom doors, and never really mentioned - this is an old game - the phone companies have no incentive in their customers knowing such things, and neither do various government agencies).

This is also confirmation to me that Russian energy is too important to disrupt over a dead person or two (yes, Thatcher and Reagan were actually correct), and that much of the global war on terrorism is itself a false flag operation.

OK, so now westexas and Robert have posted their articles and we've danced around their ideas.

Should we have some kinda vote or something?

Did anyone take a look at the "Cautionary Statement" regarding Exxon's Outlook for Energy?  

It reads:  

"Outlooks, projections, estimates, targets, and business plans in this presentation are forward-looking statements. Actual future results, including demand growth and supply mix; resource recoveries; project plans; finding costs; efficiency improvements; and the impact of technology could differ materially due to a number of factors. These include changes in long-term oil or gas prices or other market conditions affecting the oil and gas industries; reservoir performance; timely completion of development projects; war and other political or security disturbances; changes in law or government regulation; the outcome of commercial negotiations; the actions of competitors; unexpected technological developments; the occurrence and duration of economic recessions; unforeseen technical difficulties; and other factors discussed here and under the heading "Factors Affecting Future Results" on the Investor Information section of our website at www.exxonmobil.com."

But other than that, you can take the forecast to the bank.

I am reposting this comment as I don't think many caught it the first time around. (Roger Conner the exception)  Could be the late hour for the overlook.

Finally got home and dug out my old copy of "Energy Future" by Robert Stobaugh and Daniel Yergin.  I thought you would be interested in the final paragraph from the second chapter titled "After the Peak: The Threat of Hostile Oil"  And yes they are talking about peak oil production of the U.S.:

"Americans should not delude themselves into thinking there is some huge hidden reservoir of domestic oil that will free them from the heavy cost of imported oil. Of course measures should be taken to encourage domestic oil production.   But the handwriting is clear.  To the extent that any solution at all exists to the problem posed by the peaking of U.S. oil production and the   high level of imports, it will be found in energy sources other than oil."

This is from the 1983 version. Apparently Daniel Yergin has known for quite some time about the reality of the concept of Peak Oil.  Although the chapter was written by his associate Robert Stobaugh, the work was written as a collaboration.   Perhaps it was the stand that he took in the early 80's that has tempered his view of following the price collapse of 1986.

ahhh, Meals On Wheels what a fine program! Started out by Greatest Generation types who were used to volunteering in the Depression and WWII, carried on them and by Boomers who inherited some of the ideas of community and volunteerism..... now as the Boomers get sick and die off, well, goodbye meals on wheels, is probably what will happen.

Growing up in the Hungry 1970s, I never saw volunteerism. Anyone who volunteered to do something for free had either eaten well that day, in which case they kept quiet about it, or was a SUCKER, another type who did not survive. Looking out for No. 1 and those very closest to you was the order of the day: Sheer survival.

Those younger than I are used to an even more dog-eat-dog ethos.

I just can't see anyone under the age of 45 driving or volunteering for Fools, er, Meals On Wheels.

Hello TODers,

Someone repost this early on tomorrow's Drumbeat if I am sleeping too late.

http://www.latimes.com/business/la-fi-mexcolatax12dec12,0,5548785.story?coll=la-home-headlines
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MEXICO CITY -- Mexico is trying to make up for a projected shortfall in oil revenue by raising taxes on other quick-fix liquids: colas and carbonated drinks...

The nation's major oil field, Cantarell, is declining rapidly because of age. Production is down nearly 15% through the first 10 months of the year -- more than twice the rate of decline predicted by Pemex officials last year. The company's worst-case projections show production plummeting to about 520,000 barrels a day by the end of 2008 -- a nearly 70% freefall from October's average output of 1.65 million barrels a day.
--------------------------------
Bob Shaw in Phx,Az  Are Humans Smarter than Yeast?

"Exxon has updated their report, The Outlook for Energy: A View to 2030 (PDF). Also, they are having a web cast on it tomorrow"

TrendLines Dec 1st Update of the Peak Oil Depletion Scenarios included the Peak Date (2030), Peak Rate (115-mbd) & Plateau of this new ExxonMobil Outlook:   http://trendlines.ca/economic.htm