DrumBeat: September 14, 2006

[Update by Leanan on 09/14/06 at 9:16 AM EDT]

The Wall St. Journal weighs in on the recent Saudi pronouncements: Producers Move to Debunk Gloomy 'Peak Oil' Forecasts

Leading players in the petroleum industry, including Saudi Arabia and Exxon Mobil Corp., are aggressively arguing that plenty of crude oil remains for world consumption, in an effort to counter critics who contend crude output is about to plateau.

That argument, known as the peak-oil theory, has provided intellectual backing for the boom in crude prices and sowed doubts among some policy makers about crude's long-term reliability as an energy source. Such doubts, coupled with concern over sky-high prices, have added impetus to the search for oil substitutes--including in Washington, where President Bush this year declared the U.S. "addicted to oil" and sparked a boom in interest in ethanol.

Some in the industry now are keen to fight the threat posed by such fears.


From EtopiaMedia: Roscoe Bartlett wants the U.S. to move on peak oil


Tom Whipple on Hyping Jack No. 2.


Gulf gusher shows inaction of Congress

The oil industry calls them "elephants" — world-changing discoveries capable of supplying petroleum to consumers for decades. California's Chevron Corp., along with its partners, thinks it has found one in the deep waters of the Gulf of Mexico. If geologists are right, it's the largest U.S. discovery since Alaska's Prudhoe Bay 40 years ago.

Given the federal government's shameful failure to craft a responsible energy policy, the discovery is something of a triumph for U.S. consumers. For openers, it heaps more market reality upon the "peak oil" Chicken Littles who say the world is running out of petroleum, thus requiring fat taxpayer subsidies for alternative fuels to avert international chaos.


Byron King on Jack-2: There's a hole in the bottom of the sea


World has 10-year window to act on climate

A leading U.S. climate researcher said on Wednesday the world has a 10-year window of opportunity to take decisive action on global warming and avert a weather catastrophe.

NASA scientist James Hansen, widely considered the doyen of American climate researchers, said governments must adopt an alternative scenario to keep carbon dioxide emission growth in check and limit the increase in global temperatures to 1 degree Celsius (1.8 degrees Fahrenheit).


Climate Change Poses Disaster Scenario for Miners

LONDON - Flooded railway lines and storms destroying open-pit mines are among the challenges mining firms will face in the future as climate change grips the planet.


Big oil firms tell consumers: use less fuel


China to reduce reliance on oil imports by basing energy supply on coal


Amazonian tribe protests at oil pollution: Indigenous communities of the Peruvian Amazon are stepping up their campaign against oil companies.


U.K.: Mayor's 'cheap oil deal' slammed


Nigeria oil unions stage strike

A three-day strike by Nigerian oil workers has had some impact on production whilst queues are being reported at petrol stations.

Union officials say thousands of oil workers have obeyed the order to stay away from work protesting at insecurity in the oil-producing Niger Delta.


Nigeria oil shortfall expected to last about six months

Nigeria is losing about 872,000 barrels per day in oil production due to unrest and most of the shortfall is expected to last about six months, the west African country's oil minister has said.


New Zealand: the "Alternative Technologies for Living Association" is offering Knowledge to Survive for Households, Small Business

“Developing do-it-yourself knowledge and sharing tools may be essential survival elements for life in New Zealand if serious societal disruption occurs following a ‘dangerous climate change’ event or the ‘peak oil’ impact creates strife” said Mr Paul Bruce, President of the Alternative Technologies for Living Association (ATLA).
A little bit about consumerism:

In what seems like a bit of an over correction since singing the praises of condo flipping and second home buying last year, more stories such as this one about thrift and getting out of debt seem to be popping up in the nation's most popular personal finance magazine.

Speaking of a Money Magazine artilce, over at: The Mess That Greenspan Made

God, I hope so.  I was watching CNBC last night On The Money. They had some 'expert' on 'consumers'.  She must have said 'consumer' or some variant about 100 times in refering to us (people).  It was very depressing.  She was positing that dollar stores would have a resurgence now that gas was cheaper and people could drive to the store without spending their last dollar on gas.  Whoopee!  On the other hand, the 'high-end consumer' didn't seem to have been affected by the high gas prices and even notched up their consumption.  All this made her quite gleeful.  She proudly proclaimed that those that predicted that $3 gas might mean consumers wouldn't consume as much were not correct, and the consumers (us) weathered the (temporary) high gas prices quite well.
She was excited because people could now drive to the dollar store without spending their last dollar on gas?!  
I find that statement so sick and hilarious that I'm literally crying.
Well, her main point was for 'investors' to tell them what stocks to buy.  I think the absurdity of discussing the affordability choice of buring middle-eastern oil for motoring or buying some cheap chinese-made plastic items escaped her.  I mainly find it insulting and depressing that instead of valuing civic mindedness or some other virtue, we are now valued only as far as how much we can consume.  Her technical analysis was probably correct.  The dollar store chains genrally have little or no web presence so you have to actually go to the store to consume.  This was another point she made as to why mid and high end conumption was less affected - because you can now consume 24-7 with web-based shopping and have it delivered.
I urge you to read some of Joe's stuff.  He hits it perfectly I believe.

Welcome to Middle-Class Lockdown
Now shut up and buy something

http://www.joebageant.com/joe/2006/02/welcome_to_midd.html

John

I have to say that Bageant is one of my favorite writers on the web.  He's as colorful and entertaining as Kunstler in his own way, but writes with a lot more warmth and sympathy for humanity.
A propos little-noted but very thoughtful writers on the web, another person I have come to have a high regard for is John Michael Greer, at http://thearchdruidreport.blogspot.com/
His regular blogs on Peak Oil and the future destiny of society are moderate in tone, intellectually disciplined, and quite thoughtprovoking.  I highly recommend his stuff, even though I don't share his pagan religious convictions.  
He's the guy who came up with the theory of catabolic collapse.  Which is probably the most doomerish outcome I can imagine.

The sad thing is, I fear he is correct.

You should read some of his more recent posts, Leanan.  If his pessimism was perhaps extreme in the past, it has moderated somewhat lately.  For example, he now thinks that the collapse will be gradual and protracted (rather than sudden and abrupt), spanning many decades, and that this will leave room for those aware of the situation to implement productive measures for what he terms our "predicament."  I wouldn't say that he is without hope for the long-term future by any stretch of the imagination.
He has always thought that way.  That is what catabolic collapse means.

The reason I see that as the most doomerish outcome possible is that it means we do not change our ways.  Instead, we keep trying to do what we are doing, switching to ever poorer sources of energy.  Until all resources and capital are converted to waste, and we simply cannot continue.

The result is a crash to a lower population level and level of complexity than existed before the complex society arose or arrived, because the environment is so poor that it cannot support anything else.

The good news?  I probably won't have to worry about it, since it will take a hundred years or more.  :-/

This is exactly how I feel.  It would be so nice to live in an age of renaissance, even if it had to be preceeded by an abrupt shock.  But, I fear I may live in an age of slow, relentless descent.  
Another drawback of the slow, relentless collapse scenario is that it greatly facilitates denial on the part of Peak Oil-naysayers; an abrupt collapse would at least be strongly convincing.
Regarding the Archdruid Report, I thought his handle was sort of a joke like "Alpha Male Prophet of Doom", but now I see that he is seriously into that stuff.

But I think he's right — we'll have a slow collapse in which our greed and hunger will allow us to consume every frickin' blade of grass.

A rapid collapse and depopulation wouldn't be much fun for us, but would leave our descendants, and the planet, better off a century or two from now.

"our greed"

Many here at TOD argue over whether wars are due to:

  1. competition for resources, or
  2. conflict of ideologies (religions).

They don't consider the possibility that #1 and #2 are subsumed by:
3. empires of the elite bumping into each other.

Most of us are just pawns on a chessboard ruled by a short list of Kings. The Kings really don't care whether you suffer or not as you make the "ultimate sacrfice" for King and Country (but actually "Country" is redundant because it also means King as far as the King is concerned.)

Kings use religion as a means of controlling their pawns. In the USA the current religion is called The War on Terra. In other parts of the world the religion is called The War on Infidelism. All that is bullsh*t of course because the pawns are going to get a big fat zero in the end. It's all about the Kings and their greed, not about "our greed".

Bush did win his war on Iraq. He and his buddies got the oil they wanted, and the monies (oops, I mean "honorariums") that flow from it. The fact that so many pawns were sacrificed and continue to be sacrificed for the Noble's Cause is irrelevant. Who gives an eyebrow twinkle for the lower class "them"? They're doing as best as they can for themselves, Dearie --to requote Mamma Bushie's line about the refugees from Hurricane Katrina. Yeah right. "Our" greed.

Since I'm one of those involved in that discussion I want to respond to your characterization. I never said that wars were fought over ideology. I said they were fought over ideas. This distinction is large and important. For example, your conspiracy approach to "Kings" assumes that they stand in some outside neutral ground unimpacted by the culture around them. Such a notion is patent nonsense on the face of it. Essentially, you have adopted a "realist" notion of politics and assumed that there is a power kabal that works only by the rules of that realist notion.

While you might get some where arguing that a realist approach to politics should be adapted by some state or actor, that realism is the only motive is clearly not the case. "Kings" may use religion for all sorts of things, but it would be naive to think that the religious beliefs of these "kings" doesn't influence what they do.

I'm not sure why this "man behind the curtain" view of politics is so popular here (like the apparent belief by some that there's a group of shady characters who meet in a room somewhere and decide what the price of gas should be in order to get a certain member of their group elected), but, jeez, could we build a model of the world that isn't based on spy novel intrique levels of analysis? I may not agree with the materialist interpretations, but at least its an argument based on reason.

While I agree with the general drift of much of what you say, I will say that people do meet behind the curtains to set the stage for electoral victory.  In the case of gasoline prices, the players who screamed that Clinton was releasing oil for the SPR in order to manipulate oil/gasoline prices 6 years ago, are very aware of a) the political importance of gasoline prices, b) repetitive trends in seasonal market prices, and c) of ways to encourage the trend.

Do you honestly believe that persons capable of providing media 'friends' with the identity of intelligence agents are incapable of finding media 'friends' who would welcome talking points about a major oil "discovery", even when the discovery was 2 years old (Jack located the oil, Jack 2 brought some to the surface).  Do you believe them incapable of simultaneously playing to the zionist crowd, while softening their stance vis-a-vis Iran, in order to defuse the geo-political premium affecting the price of oil?
Do you believe them incapable of abandoning Al-Anbar and other areas of Iraq in order to concentrate on the flow of export oil (as well as on providing 'security' in the few tiny parts of Iraq where the media has any presence and from where U.S. electoral opinion might be influenced).

And so we could go on. These are the people who from plans devised in the dark, turned an honorable Secretary of State into a public fool. These are the chicken hawks who turned true patriots and heroes into shirkers and friends of terrorists.  These are the people who systematically work to keep opposition friendly voters from exercising their franchise.

Power is everything to them.  They do not want windfall profit taxes on oil corporations.  They do not want to lose power in KSA to an angry, cheated population. They do not want to pay the cost of confronting climate change. They will do what it takes to win, and in the US, they well know that the price of gasoline is about as significant an issue as any other. So they send out their emmissaries to decry peak oil, repetition and the baldness of the lie being key to its success.  They exaggerate the supply response. They know the herd is made up of cows, not cats.

They do meet behind closed doors and connive to lower the price of gasoline.  That's the nature of "making your own reality".

I just got back from renewing my license plate at the county courthouse.  In the atrium of the building were vendors with tables set up selling cheap jewelry and nicknacks. The funny thing is that one of them had a sign: "Shopping is Therapy".

Got to fill that void somehow...

excerpt of lyrics from the song "Egypt" by Tuxedomoon

When the going gets tough
The tough goes shopping
To buy something a little nothing
To fill up the hole in his heart
To buy something a little nothing
To fill up the hole in his heart

As an occassional consumer, I don't feel particularly triumphant about this latest "discovery", especially because I consider myself just a tad bit more multi dimensional than the MSM business press would consider me to be.

Even if it were true that Jack would actually make one wit of difference in the reality of peak oil, it is obviously too much to expect these one dimensional business publications to consider other issues besides whether or not we will have enough gas for our easy motoring, planet destroying life style.

It would be nice if they would refer to us as "citizens" once in a while.  But we're just baby birds to them.
Google hits for "consumer": 577,000,000.
Google hits for "citizen": 164,000,000.
Ratio about 3.5 to 1.
Sad...
the cult of consumption will consume their way to prosperity     buy   consume    marry and reproduce     do not question authority     move to the burbs   drive an suv    buy consume...........consume ................
Thank you very much for this post Odograph.  As REM said, This One Goes Out to the One(s) I Love.  

I never knew the meaning of Ostricism until I started "down sizing" my life 5 years ago.

http://money.cnn.com/magazines/moneymag/moneymag_archive/2006/08/01/8382230/index.htm

"The Edels' austerity exasperates some friends--a few colleagues think they're downright nuts--and it has at times strained their own relationship. And then there are the children:... "

I look forward to the day when we are in full swing back towards the Thrift end of the spectrum culturally, and away from this Gluttony end of the spectrum.  I love talking to elderly Survivors of the Great Depression - the only people who seem to understand the concept of Thrift and are capable of distinguishing between Needs and Wants.  They do Not turn hostile at the thought of Thriftful living and usually have GREAT stories to share that both uplift and prove practical.

I think its too much television isolating us from talkin to others and reading reasonable stuff. The founding fathers opf this country practiced thrift. Poor Richard (Ben Franklin) said a'penny saved is a penny earned." Thanks for being a good example!
too much television

Amen. Saltpeter for the mind (not all of it - lots of shades of grey, but man is that advertising stuff effective!).

And thank you oilmanbob, but I don't think I really qualify as a good example yet.  Maybe a good example of a slo-mo car wreck ;)

(and thank you to all editors, secretaries etc for not pointing out my mispelling of ostracism - I think the current posture of almost everyone I know so resembles the bird I confused the spelling... "head in sand, ass in air, pants down - hmmm," says Mutha Nature).

Oh, in Spain we have been educated by grandparents that went through a Civil War and a postwar blockade and attempt at autarky. You ate the whole plate and you turned the lights off when you exited the room.
I love it. It went from "Finish your plate or you'll go hungry!" to " Finish your plate, there are starving people in this world honey ;)."  

And now we stoop to multiple custom made menus for each little cherub when they balk at "what's for supper."  Multiple take outs, and so much ends up as worm food. But, as they say in poker - "The Worm will turn."  

It sounds like most of our First World grandparents have a lot in common with many 2nd and 3rd world peoples now.

And with our kids and grandkids.  

"Your fat king and your lean beggar is but variable service - two dishes, but to one table. That's the end."
The Elder's "bottom line" listing seems to be missing a few items.  No depreciation for their $30k of cars?  Where is the $6500 they pay in social security taxes?  Also, how can I get their income tax rate... I make only somewhat more than they do and pay more like $40,000 in federal, state, and local taxes.

What would be the effect if everyone in the USA were driving 25 y/o diesel cars and 2-stroke mopeds as well as heating with wood, pumping out 5 kids, and paying almost no taxes?

well i think those crafty politicians would tax the hell out of those diesel cars, wood and mopeds. With incentives and tax breaks to buy the newest and greatest vehicles. And they'd drop all tax breaks for having kids.

Seems like they always follow the money, cuz they are bought and paid for by the corporations.
Just my opinion!

http://news.yahoo.com/s/afp/20060913/ts_alt_afp/usattackseurope

WASHINGTON (AFP) - Former US secretary of state Henry Kissinger warned that Europe and the United States must unite to head off a "war of civilizations" arising from a nuclear-armed Middle East.

I find it interesting that our former US Sec is now leading the call to disarm Iranian nuclear ambitions.  I think he's got a preminiton, but it's a little fuzzy.  There will be war of the civilizations but I don't think it's going to be so much over Nukes.

Will be?  One might argue that it started when we installed the secular Shah.  Then we got called a great satan.  Then we got mad about that and backed Sadaam.  Then ....

Cycles of escalation.

(and ideas about breaking the cycle will be greatly appreciated)

Or perhaps its started when Richard gathered his knights together and decided to "liberate" Jerusalem.

This is an extremely old conflict and not one likely to be resolved by some politicians negotiating some agreement. Until neither side feels as though its very existence is threatened by the other, we are unlikely to see any progress. This is, as far as I'm concerned, the focal point of the problem - the western process of globalization has been so effective that it threatens to eliminate all other forms of social organization. This is not just a state v. state issue, but western forms of business, education, etc. are all supplanting the forms created by other cultures. The islamic world is experiencing it just as others are. The main difference is that the culture their is strong enough to provide ideas and institutions that "fight" back.

Wars are over natural resources. These are the start of the energy wars.  It's all about the oil.
Wars are over ideas. If I have tons of coconuts, but use them for nothing and you use them for everything, there is no conflict - have at 'em. Now, if I add on the notion that you can have 'em but you can't come onto my island, then we have a new source of conflict. Is that over resources? The coming wars are only about oil in the sense that its the cheap form of energy. What the coming wars are really about is the way a globalized society is to be organized (or if we ever really reach full global integration). If we did not have the sort of consumption/growth based society that we do in the west (with the US being the standard bearer) than there would not be any future wars - at least not over these issues.

To say that "Wars are over natural resources. These are the start of the energy wars.  It's all about the oil." is to accept that the current organization of society in the west is the only possible one. It accepts the values of the current society in the west.

We organize our societies in certain ways, global or otherwise, in order to have the best possible access to resources. Ideas and forms of organization are merely the means to an end.

No, wars are always over natural resources.

Provided or course you accept the notion that women are natural resources.

You have, my friend, put the cart before the horse. There could not possibly be any primordial condition that would allow us to organize our societies in any particular way. Societal construction is always additive and reactive. In the best of circumstances it can also be anticipatory, but that does not change the additive and reactive portions.

The greek preoccupation with war over women would seem to be some romanticized longing for older tribal customs in where women were "stolen" from a competing tribe. This rarely was connected with real violence, but a highly stylized way of bringing wives into the tribe from a different gene pool. Often the women were privy to the "kidnapping" prior to the event and were specifically targeted due to relations with a particular man. Remember, too, that in many of these cultures (talking prehistory Mediterranean and Europe) the further back you go, the more likely that they were matriarchal in organization (patrilocal in residence) and that these "kidnappings" would be organized before hand.

I'm too lazy to go dig it up right now, but I've heard that bride-napping has made a comeback in central Asia since the collapse of the S.U.

Wait a minute, you turn it all around. it's your cart and your horse, mr. short term memory, you started out about ideas and organizations, when I was perfectly happy just to feed and f..k.
And if I'm hungry and/or I ain't getting laid, I'm going to come and f..king take yours, if she's not too ugly. I'll organize after I'm done. Or not.
Okay, buddy, now you've had it. Once I get done burning your fields, I'm gonna turn your whole family into slaves. The sons go to the galleys. The daughters to the farm. We'll just have to see about your wife. And you're going to have to watch it all!

On the up - you are correct in that I should have been more clear - the additive and reaction comment should have made it explicit that they were additive and reactive to the social organization that already exists.