The Oil Drum

Today's SMH has a prominent article on the impact of rising petrol prices on Sydney suburbs featuring a study by Peter Rickwood of UTS (one of Garry Glazebrook's students (pdf) by the look of it). ASPO Australia's David Bell gets a mention too.

There is a good graphic accompanying the article (Update: 3 images now included) which shows the sensitivity to petrol prices (in terms of proportion of gross income) across the metropolitan area under 2 scenarios - $1.50 a litre petrol and $2.00 a litre petrol. Under the second scenario most of western Sydney will be devoting more than 6% of their income to fuel consumption.

The results look somewhat similar to the charts in the Griffith University report on Oil Vulnerability in Australian Cities from a couple of years ago.

Image 1 - % of household income at $1.50 per litre

A related personal impact story looks at the impact of fuel prices and lack of public transport on one western Sydney family - though their refusal to share vehicles and large petrol guzzling cars do reduce the amount of sympathy generated somewhat...

Another week, another record.

Closing price for Tapis this week: US$131.43 (A$139.56) per barrel.

This is a guest post by Phoenix, an engineer working in the energy sector, and a friend of mine for well over 3 decades.

In January 2006 Phoenix emailed me a spreadsheet that predicted an oil price of $100/barrel by 2008, followed by an ongoing geometric rise in oil prices. I remember immediately phoning him to point out that the scenario was impossible because it is unsustainable - $100/barrel would cause economic havoc comparable to the oil shock of the 1970s and if a geometric price progression followed, then no economic recovery would be possible and... well, I recall using the phrase “rioting in the streets inside of 18 months”.

As we know, oil hit $100 in January 2008 and kept climbing, surpassing even Phoenix’s predictions. So when Phoenix offered to explain the model that generated those numbers, I leapt at the opportunity. Here is the story of how Phoenix became Peak Oil aware and generated his Price Calculator.

Click to Enlarge

This is a guest post by Aaron Newton, who is working with coauthor Sharon Astyk on the forthcoming book, A Nation of Farmers. Aaron contributes at Groovy Green; he also blogs at Powering Down. Aaron is a land planner and garden farmer in suburban North Carolina, seeking ways to transform the current course of human land use development in an effort to prepare for the effects of global oil production peak and its outcome on automotive suburban America.

The notion of our standard work week here in America has remained largely the same since 1938. That was the year the Fair Labor Standards Act was passed, standardizing the eight hour work day and the 40 hour work week. Each Monday, Tuesday, Wednesday, Thursday and Friday workers all over the country wake up, get dressed, eat breakfast and go to work. But the notion that the majority of the workforce should keep these hours is based on nothing more than an idea put forth but the Federal government almost 70 years ago. To be sure it was an improvement in the lives of many Americans who were at the time forced to work 10+ hours a day, sometimes 6 days of the week. So a 40 hour work week was seen as an upgrade in the lives of many of U.S. citizens. 8 is a nice round number; one third of each 24 hour day. In theory it leaves 8 hours for sleep and 8 hours for other activities like eating, bathing, raising children and enjoying life. But the notion that we should work for 5 of these days in a row before taking 2 for ourselves is, as best I can tell, rather arbitrary.

The idea of a shorter work week is not a new one to anyone old enough to have lived through the energy shocks of the 1970's. It should be fairly obvious to anyone interested in conserving oil that reducing the number of daily commutes per week would reduce the overall demand for oil. There are about 133 million workers in America. Around 80% of them get to work by driving alone in a car. The average commute covers about 16 miles each way.

So let's stop and do some math...and I'll try to argue for 16 reasons why a four day work week is a good idea.

Make sure to check out our Grangemouth/Forties poll--use this thread as the comment thread for it.

Latest:
• Grangemouth oil refinery is shutdown.
• The Forties Pipeline is shutdown
• Over 60 North Sea oil and gas fields are shutdown.
• About 700,000 bpd oil production lost costing £40 million / day @ $110 per barrel
• About 70 million cubic meters natural gas production lost per day costing £42 million / day @ 60 p / therm
• BP, Shell, Exxon-Mobil, BG Group, Conoco-Philips, Chevron-Texaco, Total, Marathon, Tallisman, Nexen, Venture, Dana and many more companies affected
• Global energy prices rise
• Rural Scottish economy hit hardest by fuel shortages
• Risk level is raised throughout the system
• Worker's grievance is unresolved
• Population calm, politicians panic, fuel rationing looms?

It's hard for oil not to be in the news at the moment, but we haven't seen coverage like this very often. This article by Jad Mouawad is from the New York Times, but today it was published as a full page feature in the The Age Business section in Melbourne:

If you think the oil situation is bad, worse is to come

To many experts, the steadily rising price underscored longer-term fears about a system that has supplied cheap oil for more than a century.

Another day, another record.

The price of rice is going gangbusters too - I'm seeing stories about rationing in US stores now as well, not just in Asia...

[update 5 by Euan, 23 April]

Latest from the BBC (Wednesday evening)

BBC Scotland understands operators Ineos and the Unite union have failed to agree a halt to an impending strike by workers at the Grangemouth plant.

It therefore looks like Ineos will have to proceed with closing the plant which they say will take 4 weeks to restart. We'll be back with a fresh thread in a couple of hours.

[update 4 by Euan, 23 April]

Latest from the BBC (Wednesday pm) with a fine video:

As the hours tick by the likelihood of widespread disruption looks increasingly likely

The price of Tapis broke through the US$115 barrier in Singapore today, so you can expect to see petrol prices on the rise again soon.