Friday Open Thread

Thread away.

[editor's note, by Yankee] You know it can't be good when you find out about something because of a blog post entitled "I could feel Yankee's head exploding as I watched it". Tonight, 20/20 had a "special" called "Myths, Lies and Downright Stupidity" (brought to us by that paragon of journalistic integrity, John Stossel). Myth #10 is "Are we really running out of oil or are we just lazy in our gathering methods?". If you have it in you, you can watch the webcast.

So we've been in the $70s for a while now. Has it become "normal" yet? People seem to get used to everything (sadly - I wish they'd react faster)...
It occurred to me last week $70 is the new $50.  We can now hear stories of plunging prices when it goes from $72.5 to $71.
With the price of a barrel over $70, we are now exporting over a Billion dollars per day for oil.  Wow!
Yes $70 is the new $50, no more remarks on it on the radio, etc.   - except if it goes down a buck we'll hear about oil prices "plunging".

I was hanging out at the Barefoot Coffee Roastery or some damn name, in San Jose (which means probably Santa Clara) and it's next to a Bed Bath & Beyond, (f*ck yeah!) and the impatient SUV mommas going in and out and having near-misses with each other made for a pretty hilarious show.

I wouldn't call a micro-car which is not street-legal, holds one small-framed person and averages 18 MPH anything but a curiosity.  I could do better than that with deep-cycle batteries and a hub motor or two.
I already do better. I call my super-fuel efficient vehicle
a "bicycle". I'm gonna get around to trademarking that name
someday. And unlike that 8,000 mpg hat-box, the bicycle will
travel uphill as well.

I'd love to see the 8,000 mpg vehicle survive a snowy winter
and a blazing hot summer. No AC or heat, cramped up in a tiny
box. Good luck.

We need a new mindset, not an unpleasant little box in which to
squeeze our bodies. Take that cage and shove it.

The laws have to change. We have to start by dropping the concept of "street legal".

We shouldn't have to license a canoe. (at least in my state)

You get the picture.

The picture I get is one of mad-max style vehicles without
any exhaust controls spewing tons of blue/black smoke into
the atmosphere. I like controls on what motorized vehicles
can be driven on a road.

I have to agree though that a human powered vehicle, such
as a canoe, should not require a license.

I think they require a license to make them more difficult to steal.
not only are they spewing crap they coded the page that makes it a pain to go back a page on their site..
The New York Times has a story today that starts with an anecdote about a housekeeper at a Miami hotel who has a 60-mile commute to work that she makes with a Toyota 4Runner. She can't afford to drive anywhere on weekends because her fillup costs $60, and she needs that money for the commute.
As many drivers struggle to cope with soaring fuel prices, working-class people like Ms. Lopez who commute long distances to their jobs are suffering the most. In many cases, they had moved far away from major metropolitan areas to be able to afford decent houses. Now, paradoxically, the cost of gas is making the distance prohibitively expensive.
Paradoxically? How is that a paradox? People have been using cheap fuel to get to cheap land ever since the dawn of suburbia. Now that gasoline is expensive, the whole thing is expensive. It seems pretty straightforward to me.
Definition of Paradox:
NOUN:

  1. A seemingly contradictory statement that may nonetheless be true: the paradox that standing is more tiring than walking.
  2. One exhibiting inexplicable or contradictory aspects: "The silence of midnight, to speak truly, though apparently a paradox, rung in my ears" (Mary Shelley).
  3. An assertion that is essentially self-contradictory, though based on a valid deduction from acceptable premises.
  4. A statement contrary to received opinion.

Yeah, I don't see a paradox - more like short-sighted planning that ended up being penny-wise and pound foolish.

Maybe "an expensive commute" it is a statement contrary to received opinion - or I should say, was.
Guy says oil is incredibly abundant throughout the planet but a war in the mideast could cause it to go to $500 a barrel.... now that's a paradox.
People have been using cheap fuel to get to cheap land ever since the dawn of suburbia. Now that gasoline is expensive, the whole thing is expensive.

And one can only hope that 'rural' land becomes far cheaper.

Like $500 and acre VS $7000 an acre for the same land.

I just saw this at the gym.  If it is any consolation, my head exploded as well.
Luckily you keep that spare in the jar nearby.
Actually, I have people who follow me around collecting the pieces...

(These explosions seem to be occurring a little more frequently than I'd like to admit of late...snicker)

The part that blew my mind the most was how it was so exactly what Kunstler has been predicting for years. There's like a one-year time lag between what Kunstler predicts will happen and what the Times reports is actually happening. From CFN of April 4, 2005:
the whole nation -- including many enviro-progressives, by the way -- have bought into the notion that, whatever else reality offers, we are entitled to a life of easy motoring and Ditech Miracle Mortgages, and an awful lot of people are going to lose their personal revenue streams when that illusion falls away.
From The NYT, today:
The increase in gas prices comes at a time when many Americans of modest means are already finding themselves squeezed by increased insurance costs, wages that have not kept pace with inflation, and the rising pressure of adjustable rate mortgages.
well, ms-nbc did keep plugging their "most forwarded" video yesterday morning ... holding it out before each commercial to keep viewers in their seats.

it was a video on bicycle commuting, companies offering bicycle commuting rewards ($100/month, that buys a nice bike), and cities getting on board.

it think it's a win that this was on cable news, and even more that they thought it was a high-value teaser.

IMO, this is more evidence of the "Iron Triangle" at work.  

The housing/auto/finance industries want to keep selling and financing large homes and autos.

The MSM wants to keep selling advertising for large homes/autos/loans.

(Some) major oil companies, major exporters and energy analysts provide the intellectual ammunition--in support of the concept of infinite growth against a finite resource base.  

BTW, did you notice that whenever the cornucopians talk about the tar sands, they talk about reserves, and not production rates.  It's a good bet that there will be a lot of MSM references to the Stossel segment.

So, who do Americans prefer to listen to--Peter Huber, who says go ahead and buy the SUV and large home and continue with your commute, or people that tell Americans  to cut back, live below their means, and live very simply?

Boone Pickens, who has been deadly accurate regarding oil prices, gave a speech in Dallas this week.  He said that he was a "Peaker," but he was not giving a Peak Oil speech.  As I expected, the MSM ignored the speech, which was a sellout.

Instead of covering the speech, the Dallas Morning News the next morning had excerpts of an interview the former chief economist for ExxonMobil, who professed "amazement" that oil prices were still so high.  She opined that it was just a matter of time until oil prices fell sharply.

On some level, one actually has to have some sympathy for Americans' outrage over gasoline prices.  If we have infinite oil reserves, then high gasoline prices must be the result of a conspiracy.  

I don't see much of a difference between most of the MSM (regarding Peak Oil) and Enron executives (regarding their business plan).  In both cases, their business model is and was dependent on deceiving the American people regarding the truth.

Is there a place to see a transcript of Boone Picken's speech? He's generally very realistic and has a good read on the situation, although fro a consevative prospective.
In addition to saying oil will hit $80 before $60 this past week, a recent new story quoted him as follows:

May 3, 2006
Energy tycoon Pickens says to expect $4 a gallon soon
Don Mecoy
The Daily Oklahoman

May 3--Boone Pickens, who has made millions predicting energy prices, said American consumers shouldn't expect to see cheaper gasoline anytime soon, and shortly could be paying quite a bit more.

"We're going to see $4 gasoline this summer," Pickens said. And motorists likely never will pay less than $2 for a gallon of gasoline, the Texas energy investor said.

Pickens, an Oklahoma native who founded Mesa Petroleum in 1956 and now runs energy investment funds, appeared at a luncheon Tuesday before business leaders to discuss the energy industry's support of fine arts.

Strife in several oil-producing nations could constrict supplies and send prices soaring, Pickens said. Meanwhile, there is little that could boost supplies and cut prices, he said.

I didn't notice any mention of Morales and Chavez at the EU energy conference today here at TOD, tho' it was up on my Google news first thing..  As the two leaders apparently preached to 'the club' about restarting socialism in their countries, there was some rhetoric about 'Populism' that I don't think I get all the meaning of..  is it more or less a euphemism for Socialism/Communism at this point, or is it enough to say that the EU leaders are quite openly poo-poohing any semblance of 'worrying about the polls' from the general public, as they protect the status-quo (and good luck with that)

"The Mexican President Vicente Fox said that the populism in Latin America is "one of the big obstacles to growth and development", offering people "false" hopes of escaping poverty.

"And the European Commission President Jose Manuel Barroso said that "we are a Europe against populist tendencies."

"Behind the scenes diplomats were working to try to defuse the crisis over energy in Latin Amercia, where European firms including British Gas, British Petroleum and Spain's Repsol have massive investments.

http://news.independent.co.uk/europe/article364641.ece

How do y'all see this playing out?  I can't see the G7 letting this stand, tho' I'm not against it personally..
(The "8th G" would be Russia, right?)

Step 1
The third world dictatorship (any one of the last three hundred or so) sells a national resource or bond issue to a European fence, usually a bank.
Step 2
The third world dictatorship steals the money and deposits it in a European bank. At first British, then Swiss or Luxemburg or Liechtenstein, now a colony like the Cayman Islands.
Step 3
A new government takes over and nationalises the resource or defaults on the bonds, and the US makes getting more "foreign aid" or "military assistance" contingent on repayment of the bonds or privitisation of the resource, or attacks the third world country.

But now the US is broke and out of troops. Bolivia is not going to repay the bond issue and is going to nationalise the resource. It won't be the last third world country to do this.

The Mexican President Vicente Fox said that the populism in Latin America is "one of the big obstacles to growth and development", offering people "false" hopes of escaping poverty.

Bah. This from a leader who has escaped exactly the same populist movements by virtue of being able to allow 10-12 million workers to head north into the US. Remittances from workers in the US to Mexico now exceed the revenue that Mexico recieves for its oil exports to the US.

Those same remittances are now Mexico's leading source of revenue.
STOSSEL But people are our greatest wealth. More people is a good thing. .....and....MYTH: DDT causes all kinds of cancers, and nearly wiped out every bird in the world. TRUTH: DDT saves lives.

oy vey! comment on this stuff?....well i did find some stuff on ethanol-corn, if we haven't beaten this topic to death.. in business week online is an article on ethanol production boosting corn prices in th u.s., in which i found this tidbit
The amount of corn used to make ethanol should increase by 34 percent over last year's use to 2.15 billion bushels, the department said Friday in its monthly crop report.

....o.k. that's interesting...but how much does that 2.15 billion bushels represent?..so i found this info on the daily futures.com website:
Production is expected to total 10.550 billion bushels with 11.645 billion bushels of total use.

....so, we're using ~20% of the corn crop already to produce ethanol, and we're growing usage at 34% a year. and of course we're only using the most marginal land to do it,not!... now that's scarier than john stossel.
John Stossel has no validity in my mind.  

In my Macroeconomics class senior year of high school, the teacher played a recorded special episode of 20/20 by Stossel along the lines of Greed is Good (I would like to mention, btw, that this teacher, who'd spoke of his support of IP, broke several IP laws by doing this.)  Stossel rants on and on about how greed drives the economy towards innovation, growth, etc, which is for the most part true, but he fell completely to the "growth is eternal" mindset and forgot the endgame, which is unlimited competition for the Earth's very limited resources.  In forgetting this, he completely ignored the Tragedy of the Commons, which is for me basis of my resistance  to pursuing greed as a good human virtue.  I'm also willing to admit, however, that in very heated competition, I'd want to secure the most resources as I could for myself and my family.  

Anyway, yea..  Stossel is very agitating.

What about his comments on flood insurance?

http://abcnews.go.com/Business/Insurance/story?id=94181

Via
http://www.google.com/search?ie=UTF8&q=John+Stossel+flood+insurance

you get

http://www.reclaimdemocracy.org/articles_2004/millionaire_welfare_queen_stossel.html

"Editor's note: John Stossel? The corporate PR flak masquerading as a journalist?!  That was my first reaction when a reader sent us this article as a suggested "editor's pick." After reading it, we've got to credit Stossel for openly admitting his participation in one of our country's lesser-known tax scams."

(educational use which is not for profit and does not affect the market for a work probably falls under Fair Use.)
this gets me so steamed...for those of you unfamiliar with the u.s. mid-west, if you click on the marginal link above, you can see the corn producing areas.southern minnesota,iowa,illinois, indiana,western ohio....this is our best farmland...deep soils, lots of moisture,temperate climate,hot,humid summers,long growing season...and increasingly used to grow a crop that has a marginally positive EROEI...and this is the best we can come up with to solve our energy problems.....step on it sidney!, i'm late for yoga!
Should Brazil and the US from a single country ?

It has been widely noted that the energy return on corn is negative while that of sugar cane is positive unfortunalty the climate of the United States is not e  to the growth of sugar cane a solution is to burn the large amounts of coal reserves until the climate becomes semi-tropical in most of the US thus allowing the growth of sugar cane within the us.

And alternative would be to tie the US deeply to our South American neigbhors notatable brazil to create a huge self sufficient economy.

Unifiying Brazil and the US makes for a increadibly dynamic and intresting 21'th century country.

Not to mention that Brazilian chicks are smoking hot.  ...and it would bode very well for our chances in the World Cup.  

Win-Win!

hey...how about samba and carnaval?..win-win-win-win
My wife (www.danialves.com) tell's me that the US has already made attempts in the past to trade area and land of Brazil for loans.  Thank you God this was declined.  Brazilian people on the whole are very mellow, I would'nt want to change this character for any amount of money.  
This didn't make my head explode, though it did tingle a bit --

Here in NZ, Channel Three ran a poll of 1000 people.  45% said they planned to change their driving habits because of high petrol prices.  The story was framed by a couple who gave up their car and took the bus or walked or rode everywhere.   A number of statistics were brandished, some of them quite encouraging.  Looks like the people are starting to get it.

BUT...

The government, which funds roading (road building, expansion, and maintenance) from petrol taxes, is planning to shift funds from the current budget to cover the shortfall in roading projects because of decreased driving.

So, no matter whether people use the roads, the government will continue to fund them.

And to the extent that asphalt is made from oil, the costs of road maintenance and expansion will go up as the price of oil goes up.
Nope, asphalt is the bottom fraction of oil. The heavier the oil (I simplify), the more asphalt. We have plenty of tar sands.
That depends. More and more refineries are installing cokers, which will eliminate the asphalt. The asphalt market is already beginning to tighten up a bit.

RR

Sorry, this is a little off topic but it's something I've been thinking about recently.
If TSHTF how possible will it be to maintain the internet, and for how long?
The internet seems to me to be one of the greatest achievements of this era and allows me to learn about peak oil here in Japan and is an amazing resource for learning about sustainability, composting, organic farming, natural medicine and pretty much everything else.  The internet seems to me like something that would become even more valuable as we face some sort of power down.
Unfortunately the Internet relies on huge telcos for it's existence and a massive infrastructure, not to mention large amounts of electricity.  On a local scale we can do a lot to mitigate the likely consequences of peak oil - another poster mentioned ELP, Economise, localise, produce.  But can anything be done to maintain our connections to the outside World or will we be thrust back to the dark ages and ignorance of the what goes on outside of our local areas?