Report authors: Luís de Sousa and Euan Mearns

Part 3 of IEA WEO 2008 analyzes the expected impact of fossil fuel combustion upon climate change.

Page 382: As emissions of greenhouse gases build up in the atmosphere faster than natural processes can remove them, their concentrations rise. The Reference Scenario puts us on a path to doubling the aggregate concentration in CO2 equivalent terms by the end of this century, entailing an eventual global average temperature increase up to 6 ºC.

Rather surprisingly, IEA WEO 2008 does not provide any data on fossil fuel reserves and production forecasts to 2100 to back up this claim. Instead, it chooses to rely upon fossil fuel reserve figures underlying the Intergovernmental Panel on Climate Change (IPCC) models. Furthermore, using MAGICC (climate temperature model), and the default climate sensitivity constants, we are unable to reproduce the outcome of as much as a 6 ºC increase.

Using a CO2 emissions scenario based on our 2008 Olduvai Assessment combined with MAGICC, we estimate that global average temperatures may peak at around 1.6ºC above 1990 values toward the end of this century. Other climate models may produce temperature outcomes higher or lower than this.

On 5th December 2007 Fatih Birol, Chief Economist and Head of the Economic Analysis Division of the International Energy Agency (IEA) gave a presentation in London at the Shell Centre, hosted by the British Institute of Energy Economics (BIEE). Mike Pepler attended the meeting and took the following notes (his personal comments are in italics):

Introduction

·         We are on the eve of a new world energy order.

·         On the supply side, we have oil production outside the core OPEC countries reaching a peak, which is not good news for the International Oil Companies (IOCs). The National Oil Companies (NOCs) will determine future oil supply.

·         On the demand side, China and India are transforming global energy markets through their sheer size and rate of economic growth.

·         Between now and 2030, China and India will account for 70% of new global oil demand, and 80% of new coal demand.

The key objective in the face of climate change is to reduce the atmospheric concentration of carbon dioxide from the combustion of fossil fuel. Certainly there are other aspects, it would be useful not to cut down forests for example and there are other greenhouse gasses but as this is The Oil Drum we’ll focus on fossil fuels and CO2.

The entire debate when it comes to fossil fuels and climate change is focused on demand, the consumption of fossil fuels and the resultant emissions. This is not the only approach. Here I propose an alternative approach that totally ignores emissions but instead focuses on the extraction of fossil fuels from the ground.

This is an update to an article of mine that was originally published in The Age back in March this year.

On the 15th March, the Esso/BHP Billiton Bass Strait joint venture asked the Minister for Planning whether a new gas conditioning plant at Longford requires an Environmental Effects Statement. The State Government's new guidelines for assessing projects with significant carbon dioxide (CO2) emissions were about to get their first big test.

The gas conditioning plant is required to treat new production from the Kipper gas field. The downside is that it would emit a million tonnes of CO2 every year. While not quite in the same league as a coal-fired power station, this is not the right approach to achieving urgent CO2 reductions.