DrumBeat: December 17, 2006

[Update by Leanan on 12/17/06 at 8:56 AM EDT]

Slow Going for Alt Vehicles

According to the EIA, hybrids will constitute 10 percent of new light-duty vehicles by 2030, and the same amount (2 million per year) will be flex fuel vehicles. In both cases those numbers indicate slow growth that won't do much to reduce vehicles emissions or petroleum consumption. The number of diesel vehicles sold will increase to 1.2 million annually.

Even though the fuel cell car has received the most hype and funding of any of the Bush Administration initiatives for alternative propulsion, the EIA says the combined market share of fuel cell, natural gas, and electric vehicles will be just 8 percent in 2030.

Energy supplies: Abundant - and off-limits

At least part of the solution to high oil and natural gas prices lies right under our feet, but Congress has failed to change the laws and regulations that keep this domestic energy locked up.


New Zealand: The politics of energy

Even if you don't believe in climate change, believe in the energy crunch. The days of cheap, easy, secure energy supplies are over for the world. That's a massive challenge to NZ industry. Large chunks of it have depended for generations on abundant, cheap power to process low-value commodities.


Shell exec makes case for market decisions

Shell Oil Co. President John Hofmeister has led his company to 16 U.S. cities this year as part of a 50-city tour at a time of high oil-company profits and relatively high prices at the pump.

The tour, which could take as long as two years, is a way for Shell to listen to Americans' concerns about the industry, he said. And the talks give Shell a chance to talk about why it believes it should be able to drill offshore in areas that are now off limits.


Iran offers to share nuke know-how with neighbors

TEHRAN, Iran - President Mahmoud Ahmadinejad said Saturday his country was ready to transfer nuclear technology to neighboring countries, nearly a week after Arab states on the Persian Gulf announced plans to consider a joint nuclear program.


China looks to develop more domestic energy sources

BEIJING - China will look to develop domestic sources of energy in the years ahead, with conservation at the heart of the energy agenda, said Ma Kai, chairman of the National Development and Reform Commission.


India, China sign key MoU on oil & gas exploration

Beijing: India and China today further cemented their friendship and strategic ties by inking a major pact envisaging joint exploration, production and acquisition of oil assets in third countries which could substantially reduce their energy costs.


Saudi Government goes ahead with oil refinery at Jizan with private participation

Saudi Aramco will supply the refinery with crude through a tanker, as experts consider that building a pipeline from oil wells to the refinery is not economical. The refinery aims at serving foreign clients in Europe, the United States and Asia by supplying products of high specifications.


Russian oil output up 2.2%, export down 0.5% in first 10 months of 2006


Carmakers fight global warming lawsuit

SACRAMENTO, Calif. - The six largest automakers asked a federal judge to toss out a lawsuit by California that accuses them of harming human health and the environment by producing vehicles that contribute to global warming.


Climate change melts Kilimanjaro's snows

The total loss of ice masses ringing Africa's three highest peaks, projected by scientists to happen sometime in the next two to five decades, fits a global pattern playing out in South America's Andes Mountains, in Europe's Alps, in the Himalayas and beyond.

Almost every one of more than 300 large glaciers studied worldwide is in retreat, international glaciologists reported in October in the journal Geophysical Research Letters. This is "essentially a response to post-1970 global warming," they said.


Renewable Energy in America, Part 1: A Changing Climate

Broadbased - from the grass roots up - calls have been building for the U.S. to focus efforts and resources on the development of renewable energy sources and infrastructure, following the latest steep and sustained run-up in petroleum and fossil fuel prices.


Bay Localize & Green Roofs: An Interview with Ingrid Severson - transcript and podcast.

This is in response to global warming and peak oil. I don't know if people know what peak oil is, but it is basically just the phenomenon that refers to petroleum depletion. It has massive impacts on the economy and the stability of our resources, etc. It affects the whole world. We're working on a local level which is why we're called Bay Localize because we are striving to bring production of our goods and services more on a local level within the Bay Area.


Let them wear hats

It made me realize where we were as a country. After all, if installing a programmable thermostat was supposed to be the best way to become more energy efficient and here we had cut our bill by 20% by uninstalling one, that means that we are using way more energy than really needed and are not paying attention to energy use at all.


Colorado: Democrats lay out energy bills

Democratic lawmakers will introduce a slew of bills in the 2007 General Assembly to propel Colorado into becoming the "renewable energy capital of the world."


The top gift for science geeks: It's a nuclear-powered toy. Really.

   The EIA is about as big a waste of taxpayer dollars that exists in the US government. Their projections have more to do with the fantasies of the lobbyists than the facts. I'd guess that their projections of the growth of hybrid cars reflects their projections of a $40/bbl stable fuel price for internal combustion engines.
the whole freakin government is a waste of taxpayers dollars (or more like it taxpayer debt)   well a waste except for the part about "provide the common defense, promate the general welfare and secure the blessings of life, liberty and the pursuit of happiness"    (i may have made part of that up)
This may be why when/if TSHTF, local government entities may be what matters most in our everyday lives.  The ineffective behemoth of our "federal" government will NOT take care of us.  It will be too busy fighting the world and it's own citizens.
Have you every been involved with the local government?  I actually think the level of corruption is worse than at the state and federal level.

My Dad spent 10 years as a member of the town council and my uncle was a county commissioner.

Shit constantly happened that NEVER made it into the papers.  Town secretary caught embezzling from the treasury three times in a row (embezzled the 2nd and 3rd times to pay back what he stole the first time).   Politically connected people didn't have to pay taxes or sewage bills.   The police chief was a drunk who was kicked off the state police, and ended up breaking into his mistresses house then held her and her mother at gun point.  All this from a town so small it didn't have a stop light.

Zoning changes were very blatantly  for sale.   At one point a couple of county commissioners emptied the treasury into there own pockets by manipulating contracts and padding the payrolls.  In the end they bankrupted the country then got jobs with the state government.

Do not expect any help from your local government.  

(This occurred Pennsylvania if anyone is interested)

I think it depends...I have been involved in some local government activities and come away pleased.  I have heard of stories like yours as well.  All I was really trying to relay to folks is that we have a better chance of making a difference at the local level in getting them to respond to something than the federal these days.  Sometimes successful, sometimes not.
I think local government is corrupt as hell too.  It's just as bad if not worse in a larger city.  People are given jobs through blatant cronyism, whatever their qualifications.  If anything it is worse than on a State or Federal level because there is little or no scrutiny on that level.  
Actually, the part that promotes the common defence is doing so well lately either.  Talk about your fraud, waste, and abuse.
I meant "isn't" doing so well.
invading a sovereign nation looking for wmds does not qualify as "poviding the common defense"    that comes under the title " promoting the corporate welfare"
"the heritage foundation"   roflmao  
China expected to import 140 mln tons of crude oil
BEIJING, Dec. 16 (Xinhua) -- China's crude oil imports are expected to reach 140 million tons in 2006, up 10.2 percent on last year, according to the Ministry of Commerce (MOC).

    Liang Shuhe, deputy director with the Foreign Trade Department of the MOC, said that China's demand for crude oil would total about 290 million tons this year, of which 48 percent were imports.

    According to Liang, China's total output of crude oil is expected to reach 183 million tons in 2006, with 7.40 million tons for exports.

    Liang said the fast growth of the economy has forced China to depend more and more on imports because of the limited domestic production, predicting that the steady increase in imports was likely to continue.

    Statistics from the MOC show that China's crude oil imports increased by 14.1 percent in the first ten months of this year to reach 120 million tons.

    The Chinese government removed tariffs on oil imports in November and opened its domestic oil market to foreign companies in December to cut the cost of oil imports.

From whose hide will this oil come?  Haven't we just about bled the oil turnip from the poor countries?  At what point does this come out of the richer countries like the U.S.  Assuming we've already peaked, isn't this a good time to invest in oil futures?  
With it's further considered that exports from both the two leading oil exporters (Russia and Saudi Arabia) are dropping, as well as continued demand growth from India and Far East countries, one wonders just how much poorer countries can offset China's huge oil demands.

The answer, I suspect, is when the book is closed on the 2006 year, we will find world oil and product inventories less than in 2005.  This will also be very true in the US - despite the strong contrary impression given by the media.  As of last week, 12/08/2006, US oil/product inventories were only 4 million barrels ahead of last year.

And that clearly explains how global oil inventories are near their all time highs.
The IEA reports a 41 million drop in world inventories in October - well before the typical seasonal winter fall.  In addition, the EIA has US inventories dropping significantly in November.

Next time I will only respond if you document your position first.

Out of several billion barrels in inventory.  And that drop was precisely what OPEC wanted when they cut their production by 1.2 million bpd.  If anything though, it shows they only needed to cut production by about 600,000 bpd to bring the market into balance.
Charles forgot to mention the rest of the paragraph.  Nov 30th inventories were at 54 days vs 53 on that date last year.
And just think, this is all in light of the fact that we apparently experienced dramatic reduction in exports around the world, as WT has been saying these last few months.  That or all the post peak production countries have had a miraculous turnaround this year! <chortle>
Wasn't it shown here that net exports from exporting nations are declining.
China can only import more if someone is losing the bidding wars.
Or there is oil stored somewhere "off the books" that is being sold.
Is "losing the bidding wars" at all different from "conservation"?
Except in Africa conservation means

  1. You are unable to run the generators at the hospital.
  2. You can't afford cooking fuel
  3. You can't afford gasoline to run your farm

etc etc

Soccer moms are using the fuel that poor African are "conserving"

My question was partially rhetorical and I don't disagree with you. I do think that we at TOD have a tendency to create these value-laden words, such as "bidding contest", which in my mind obscure, rather than clarify, meaning.

I also dislike the frequent comments here that say the solution is "conservation", without any thought or plan for what it entails.  In response, I have noted before that I think that price is by far the strongest driver for conservation. Legislative and voluntary conservation do suffer somewhat from Jevon's Paradox, which in the context of abundance weaken conservation as it just shifts demand to others.

So in this regard, true conservation is going to come from those most sensitive to price. I'm not saying it is good, just that it is.

I am not entirely convinced that the poorest will bear the brunt of "conservation" in volume terms, although it is likely to be the most painful for them.

Two countries in our part of the world, South Korea and Thailand have the most imported oil intensive economies in the world (oil imports to GDP approached 10%). I would expect that in economic terms, the overall populations of these countries will also be hit hard. Soccer moms, poor commuters, and others with the ability to reduce their oil consumption in the US and other rich countries will probably cut the highest volume, but may barely notice.

I do think my point remains true. That a "bidding contest" is the single most effective means through which conservation will occur.

I am not entirely convinced that the poorest will bear the brunt of "conservation" in volume terms, although it is likely to be the most painful for them.

Two countries in our part of the world, South Korea and Thailand have the most imported oil intensive economies in the world (oil imports to GDP approached 10%). I would expect that in economic terms, the overall populations of these countries will also be hit hard. Soccer moms, poor commuters, and others with the ability to reduce their oil consumption in the US and other rich countries will probably cut the highest volume, but may barely notice.

I do think my point remains true. That a "bidding contest" is the single most effective means through which conservation will occur. And there will be no large scale conservation without people paying more for fuel and gaining less of its benefits, especially the poor.

Jevon's paradox is not valid when a cartel will withhold poduciton when price declines.
I agree. I did say "in the context of abundance". It does not apply so well in the context of scarcity, delibrate or otherwise.

So 10 percent of new light-duty vehicles, and the same amount (2 million per year), will be flex fuel vehicles by 2030. Fascinating!

The Asian Development Bank believes that there may be 15 times as many cars in 30 years' time in China (a total of 190 million) and 13 times as many in India. I guess no one from the ADB looks at this site.

If the EIA is bad, it does not make the ADB any less unreal.

According to the EIA, hybrids will constitute 10 percent of new light-duty vehicles by 2030.
Are these moving vehicles or do they include vehicles left on the side of the road?
I wouldn't worry much about these statistics. They fall under the category "640kB should be enough for everyone" and we know how that played out. In any case... it does not matter, much. 50+% fuel savings can be achieved without any wonder-technology simply by building smaller cars better suited to the problem at hand: to get Dad to work, Mom to the grocery store and the kids to school. Except in tv ads neither task requires trucks which could transport concrete for a medium sized home improvement project or expedition class rovers whcih could drive across the Himalayas.

The good folks of the EIA also do not understand that most people think with their geek-gland and thus what starts out as a novelty (hybrids) can become the standard within rather short time. I-Pod anyone? Toyota, on the other hand, understands that quite well... look at their efforts to offer a hybrid version of mainstream cars like the Camry.

Smaller cars? OMFG!! Do you hate America? Are you on the side of the terrorists? Watch your step, Big Brother is watching you.
The EIA projection is ridiculous.  How accurately could the current overabundence of SUVs have been predicted in 1980?  They are projecting so far out that it's basically just guessing.  
While Colorado is becoming the "renewable energy capital of the world", there was not one word on conservation in the linked article. Also, while they are talking about increasing their renewable portfolio to 20%, they are doing nothing to reduce overall demand. Overall demand will swamp renewables meaning that energy from fossil fuels will increase. As I wrote my legistlator, the percentage of renewables don't mean a great deal if we continue to build coal fired plants and do nothing to address energy consumption in those parts of the different sectors which have nothing to do with electricity.

Part of this mix will be ethanol.  Even assuming a positive return on energy, one shouldn't apply the total gross energy returned in attempting to calculate the 20% renewable energy contribution.

Colorado cannot claim to be at the forefront unless they set specific caps on greenhouse emissions with a plan to reduce them starting now and at least through 2050. Otherwise, it is the usual lip service.  Those legislators, both local and national, that I write to, either provide me info on positions that are irrelevant to the issue at hand or don't respond at all knowing they don't have any good answers.

As I think too many people missed this yesterday:

It seems that Bush has gotten through the most critical three and four letter agencies, and is now all the way down the list to the USGS:

The White House has begun implementing a new policy toward the U.S. Geological Survey, in which all scientific papers and other public documents by USGS scientists must be screened for content. The USGS communications office must now be 'alerted about information products containing high-visibility topics or topics of a policy-sensitive nature.' Subjects fitting this description might include global warming, or research on the effects of oil drilling in the Alaska National Wildlife Reserve.
I ran that on Thursday.  It was the top story most of the day in Thursday's DrumBeat, and I believe was re-posted by someone else on Friday.  That's probably why there was little response to your post.
Ahh... sorry.
My brother-N-law is a geologist with the USGS and he was complaining about this in 2001.  This is not new it has been policy for years.

matt

Interesting.  What does your BIL think about peak oil, and the USGS reserves estimates?
I had a long conversation with him in June about this stuff....he says obviously there is a limited amount but the HL is a model not scripture.  He also said he thinks politics and economics will screw up most predictions especially long term ones.

As for the reserve estimates he has never commented to me on that but I'll email him.

matt

"The low-energy beta radiation from tritium cannot penetrate human skin, so tritium is only dangerous if inhaled or ingested. Its low energy also creates difficulty detecting tritium labelled compounds except by using liquid scintillation counting.

"Like hydrogen, tritium is difficult to confine; rubber, plastic, and some kinds of steel are all somewhat permeable. This has raised concerns that if tritium is used in quantity, in particular for fusion reactors, it may contribute to radioactive contamination, although its short half-life should prevent any significant accumulation in the atmosphere.

http://en.wikipedia.org/wiki/Tritium

Two hydrogen atoms meet. One says "I've lost my electron," The other says "Are you sure?" The first replies "Yes, I'm positive."

Tritium is hydrogen!
You might have trouble getting those sent through US customs, though. IIRC there is a regulation disallowing the use of radioisotopes for "frivolous purposes" or some wording like that.