DrumBeat: July 11, 2006

[Update by Leanan on 07/11/06 at 9:34 AM EDT]

"We in OPEC do not subscribe to the peak-oil theory." They just need transparency from consumers.

Oil cartel OPEC scolded consuming nations on Tuesday for forcing it to spend billions on spare crude production capacity while sending confusing policy signals on future demand.

The Organization of the Petroleum Exporting Countries has an estimated 100 exploration and production projects with investment in the region of $100-billion to meet rising demand, but justifying spare capacity to calm oil market nerves was difficult, said acting secretary general Mohammed Barkindo.

Ethanol is not a cure-all for U.S. energy woes
As far as alternative fuels are concerned, biodiesel from soybeans is the better choice compared with corn-produced ethanol, University of Minnesota researchers concluded in an analysis Monday.

But "neither can replace much petroleum without impacting food supplies," the researchers concluded in the paper published in the Proceedings of the National Academy of Sciences.

And prices for edible oils are already rising.

Politics Of the Pipelines: U.S. Seeks Ways to Route Natural Gas Around Russia.

IEA Calls on China to Rein in Electricity Use

Peak uranium? (PDF)

... Assuming world nuclear generating capacity remains at 2005 levels, after about 2016 the mean grade of uranium ore will fall significantly from today's levels, and even more so after 2034. After about 60 years the world nuclear power system will fall off the 'Energy Cliff' - meaning that the nuclear system will consume as much energy as can be generated from the uranium fuel. Whether large and new uranium ore deposits will be found or not is unknown.

Robert Feldman gives us The bad, worse and awful news for energy prices. Actually, the news is not that awful from his view. He thinks it's just a supply lag problem, like the "hog cycle" of the '30s.

Venezuela struggles to plug natural gas deficit

"All these gas pipeline projects are strange, because Venezuela does not have enough gas (production) to fill them," said Miguel Octavio, an analyst with Caracas-based brokerage BBO Servicios Financieros.

Oil Prices: How High Can They Go?

More on our crumbling highway infrastructure: So Many Cars, So Little Money

Every dime of California's $116-billion plan to shore up levees, schools and other eroding facilities could be spent on the state's overtaxed transportation system.

And it still wouldn't be enough.

Now it's time to panic: Climate change threatens wineries.
Climate warming could spell disaster for much of the multibillion-dollar U.S. wine industry. Areas suitable for growing premium wine grapes could be reduced by 50 percent — and possibly as much as 81 percent — by the end of this century, according to a study Monday in Proceedings of the National Academy of Sciences.
[Update by Leanan on 07/11/06 at 12:58 PM EDT]

$70 oil: Get used to it

"Price is causing some substitutions, but in my opinion it's not enough, " said Peter Tertzakian, chief energy economist for ARC Financial and author of the book A Thousand Barrels a Second.