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Peak Oil: The Big Fizzle

General discussions of the systemic, societal and civilisational effects of depletion.

Re: Peak Oil: The Big Fizzle

Unread postby efarmer » Fri 14 Dec 2007, 17:33:04

In reading JD's posts and work as a debunker, I have come to appreciate the huge amount of research and analysis that is represented by the work as a body. To debunk or analyze a subject or a system you have to understand how it currently functions, how it is supposed to or believed to function, and in the process
it is my experience that you also gain insight into how it might function differently or better, and the factors poised to aid or detract from that function as well as the probable timing and scope of such factors.

Bottom line, I am convinced that JD must have come to a set of conclusions and scenarios with regard to resource limits and climate changes of his very own.

So how about it JD, how about stepping away from the debunk flush handle for a moment and giving us a little taste of what must be showing up in your personal conclusions bin from time to time?
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Re: Peak Oil: The Big Fizzle

Unread postby TonyPrep » Sun 16 Dec 2007, 06:23:28

From what I've read of JD's site, the posts are quite superficial. Not in the sense that he hasn't done most of his homework on the "solutions" he proposes, but that he appears to ignore scale. He also assumes that there are enough resources for the solutions he proposes and that those solutions will be adopted in a timely manner, with optimum market efficiency and without side-effects. He doesn't seem to understand how ingrained oil is in every aspect of life (regardless of the proportions of oil) and how ingrained most people's way of life is.

He also doesn't understand that it will only take one limit to be breached, if that limit is vital for our way of life, for our way of life to become untenable.
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Re: Peak Oil: The Big Fizzle

Unread postby xrotaryguy » Sun 16 Dec 2007, 08:01:11

$this->bbcode_second_pass_quote('jbrovont', 'O')il reserves are being drawn down

Which oil reserves are being drawn down? Certainly our federal reserve is not being drawn down are they?

$this->bbcode_second_pass_quote('JohnDenver', 'Y')ou don't think that a certain percentage of people might give in and purchase a scooter, without being forced but by being tempted, by the money?

I'm sure that most city dwellers would rather not ride a scooter for the reson stated below.
Image
We need a better solution than crappy scooters.

$this->bbcode_second_pass_quote('Phebagirl', 'Y')ou think we can all just go back to cute little Victory gardens and feed 300 million people, think again.

I would not be too surprised if some version of this were actually possible. Unfortunately, feeding 6.6 billion is impossible since much of that food relies on the US' industrial agriculture.

$this->bbcode_second_pass_quote('Revi', 'I')t's going to cost some people around a thousand a month just to heat their houses. Where are they going to get it?

Whoa! What kind of house costs $1000 per month to keep warm? Is heating oil really that expensive? Time to get buy a half dozen space heaters. I have lived in Eugene, OR (which does not get as chilly as Maine, but still gets cold enough to make the heating bill go up) and Phoenix, AZ which gets extremely hot in the summer. I always had electric heat in Oregon, and my electric bill never increased more than about $60 during the winder months… unless I had a really lame room mate who though that readjusting all the thermostats in the house to 75 degrees F every day was a good idea. Here in Phoenix, we pay about $60 per month extra in the winter to run the AC. How on earth could anyone's current heating bill be $1000 per month?

I might also point out that when I lived in Eugene, I was fairly poor. I set the thermostat to 59 degrees F for two winters in a row. I could see my breath every time I exhaled. Honestly, it really wasn't that bad. What was bad was how I still wasn't making enough money to heat the house to 59 degrees. Oregon's economy sucks!

$this->bbcode_second_pass_quote('Lanthanide', 'I')f whoever is in charge of Venezuela ramps up the local oil prices to high, no matter how logical and sensible it is, they could end up out of the job, to be replaced by someone else who doesn't give a crap about exporting oil and just wants to keep it for the country itself. If this means the price for oil inside the country go up by only 50% (on 20c) instead of 300%, while the price for exported oil goes up 30% (on $3) - at least Venezuela wouldn't be suffering as much as everyone else.

Until some large oil-starved and more powerful nation invades and takes the oil for itself.
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Re: Peak Oil: The Big Fizzle

Unread postby JohnDenver » Sun 16 Dec 2007, 12:21:29

$this->bbcode_second_pass_quote('TonyPrep', 'F')rom what I've read of JD's site, the posts are quite superficial. Not in the sense that he hasn't done most of his homework on the "solutions" he proposes, but that he appears to ignore scale.


In my view, the doomer worries about "scale" assume that the post-peak decline in oil/liquids production will be quick. But I haven't seen any hard evidence, or a convincing argument, that the decline will be quick. Yes, a quick decline is *possible*, for any number of reasons. But "it's possible" is the weakest form of prediction. Can you (or anybody) give me a convincing argument why a quick decline in liquids production is *probable*? Not the typical doomer fare like "Cos we're gonna nuke each other, dipshit". I mean some technical reason, actually related to the mechanics of oil production, why oil/liquids production worldwide will quickly collapse.

Oil peaked almost 3 years ago, and it's not declining fast. It's declining at a rate of 1% per year. So, if you're honest with yourself, I think you have to admit that so far, going on 3 years into the post-peak period, I'm right. The decline in oil has been extremely slow. So why are we going to suddenly go over a cliff? Give me the *technical* reason.
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Re: Peak Oil: The Big Fizzle

Unread postby mel1962 » Sun 16 Dec 2007, 12:48:58

I see no Big Fizzle, in fact I see a gather global storm, the biggest impact of peak oil will be on the economy. I myself refuse to ride a scooter and most people like myself will continue to drive cars, maybe they will be run on electricity. Peak Oil is here, how it plays out and how it effects us will depend on future events.

This crisis is not a big fizzle, but rather a snowball rolling down the hill!
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Re: Peak Oil: The Big Fizzle

Unread postby efarmer » Sun 16 Dec 2007, 13:01:53

For many countries, especially Japan, and of course the US at this point, a serious supply disruption means austere consequences with rapid onset, and this has been true for decades. The US ignored this completely and chose to build a suburban sprawl that is only automobile accessible. I expect premium oil to produce low value suburban sprawl real estate immediately in the US. I am still amazed that we as a nation were rudderless and defaulted into the situation. We are just past the peak of oil perhaps, but seem to be very far past the peak of realistic behavior as a nation.

JohnDenver, now you can say that you danced in the PO Holiday Special, Nutcracker Suite.
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Re: Peak Oil: The Big Fizzle

Unread postby Heineken » Sun 16 Dec 2007, 15:44:01

pstarr, unless I'm mistaken, the US was importing oil well before US production peaked. This factor, along with the others you listed, helped buffer the depletion rate here. It gave the US the luxury of not having to produce all it could, all the time.

So you're absolutely right, the US experience is a historical aberration. As today's major producers hit their peak and go into decline, they won't be able to "merge" their exports with imports from elsewhere. They'll have to lateral-drill and water-inject and CO2-inject like crazy . . . and then steer the remaining, low-EROEI proceeds toward domestic use.

The US faces certain oil starvation. God help us . . . and everyone else.
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Re: Peak Oil: The Big Fizzle

Unread postby TheDude » Sun 16 Dec 2007, 17:19:35

From a recent blog entry:

$this->bbcode_second_pass_quote('JD', 'W')henever liquids peak (soon or decades away), the math shows that the overall decline rate will be quite slow -- less than 2% for the first 20 years.
Hubbert Theory says Peak is Slow Squeeze
Read that carefully. It's one of the most important things ever written on peak oil.


It's also by Stuart Staniford, whose theory of a faster decline rate was chastised by JD in his recent comeback. You're not cherry picking his data to come up with the conclusions you want, are you?

Image

Admittedly Stu was wrong about us being down to 74mbd by now, but why are you so confident he'll be right about 1% declines in the long term?

Mexican declines are being offset by increases in Canada - i.e., tar. Tar will likely run into a wall soon - declines in NG or freshwater, or Albertans just becoming disgusted with the stuff and putting a lid on any more expansion. In the Western China oil shale: World's biggest? thread Oil-Finder pointed me to this EB story on a huge Canadian gas find: Shell makes massive natural gas discovery. 800 bcf of gas, and seems to be in production, too. I checked it out, haven't gotten back all the details but this seems to be simply part of continuing NA declines in gas - doesn't even register a blip on EIA graphs.

$this->bbcode_second_pass_quote('', 'A')ccording to EIA’s Annual Energy Outlook 2007 , both Canadian natural gas production and exports are expected to decline in the coming years, with net exports to the United States forecasted to reach 1.2 Tcf in 2030, or 22 percent of net U.S. natural gas imports.


I also point out that the glacial fields supplying the Athabasca River are shrinking. Oil-Finder suggests they tap the freshwater lakes to the east of the sands, which would involve dredging 10 mile canals - that'd be a tall order politically, to say nothing of the money involved.
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Re: Peak Oil: The Big Fizzle

Unread postby TonyPrep » Sun 16 Dec 2007, 17:40:57

$this->bbcode_second_pass_quote('JohnDenver', 'I')n my view, the doomer worries about "scale" assume that the post-peak decline in oil/liquids production will be quick.
Well, that's not my view. Scale is simply an examination of the amount of energy we use now, with economic and population growth added in (so that some percentage growth is needed each and every year). Aside from occasional efficiency drives, the scale of energy we need to substitute for the energy dense sources of oil, then gas, then coal is almost mind boggling. Of course, there is a lot of "waste", but our economies rely on that waste. Even if the decline is slow (perhaps an undulating downslope with occasional, but lower, upturns), it is this scale of energy substitution that you never sem to address.$this->bbcode_second_pass_quote('JohnDenver', 'C')an you (or anybody) give me a convincing argument why a quick decline in liquids production is *probable*?
As explained, this is not necessary for the problem of scale.

Scale also applies to the resources needed to implement potential alternatives.
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Re: Peak Oil: The Big Fizzle

Unread postby JohnDenver » Sun 16 Dec 2007, 21:17:33

$this->bbcode_second_pass_quote('TonyPrep', 't')he scale of energy we need to substitute for the energy dense sources of oil, then gas, then coal is almost mind boggling [...] Even if the decline is slow (perhaps an undulating downslope with occasional, but lower, upturns), it is this scale of energy substitution that you never sem to address.


I address it often: If the decline is slow, substitution will start from a small base, but will grow exponentially, and the substitution will be completed over a long period of time. As you know, exponential growth is an amazing thing, and can grow very large, given *time*.

You're falsely exaggerating the seriousness of the immediate problem when you lump oil, gas and coal together. We don't need to substitute the entire amount of all of them all at the same time. In fact, for quite a long time, gas+coal (among nuclear and other things) will be used to substitute for oil. The immediate task (assuming a slow decline) is to substitute a 1-2% per annum decline in oil production. And we've been accomplishing that task just fine for the last 2.5 years, as the stats show.

Your talk about the scale of oil, gas and coal is just a red herring. Essentially, you are arguing like this:

1) We use mindboggling amounts of oil, gas and coal
2) Therefore we can't divert 1-2% per annum of oil use over to other power sources like electricity (generated by nuclear, wind, solar, coal, NG, tar sands, oilshale etc.)

There's no connection between 1) and 2). Can you please explain to me more clearly why 1) implies 2)?
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Re: Peak Oil: The Big Fizzle

Unread postby JohnDenver » Sun 16 Dec 2007, 21:41:38

$this->bbcode_second_pass_quote('TheDude', 'F')rom a recent blog entry:

$this->bbcode_second_pass_quote('JD', 'W')henever liquids peak (soon or decades away), the math shows that the overall decline rate will be quite slow -- less than 2% for the first 20 years.
Hubbert Theory says Peak is Slow Squeeze
Read that carefully. It's one of the most important things ever written on peak oil.


It's also by Stuart Staniford, whose theory of a faster decline rate was chastised by JD in his recent comeback. You're not cherry picking his data to come up with the conclusions you want, are you?


No, I'm comparing his theories against reality, so we can see which ones are right, and which ones are wrong. That's the way science works. All scientists are wrong sometimes and right sometimes.

$this->bbcode_second_pass_quote('', 'A')dmittedly Stu was wrong about us being down to 74mbd by now, but why are you so confident he'll be right about 1% declines in the long term?


Yes, Stuart was operating with a false assumption, and he graciously admitted it when it was pointed out to him. I'm confident about the 1% argument because:

1) The math is based on Hubbert Theory; it's convincing.
2) The predictions for the UK and US match reality.
3) Assuming that world oil production peaked in May 2005, oil has been declining at a rate of 1%, as the theory predicts.

All the empirical evidence seems to support Stuart's theory. Do you have a good argument for not believing it? Any empirical evidence which refutes it? I'd love to hear it if you do.
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Re: Peak Oil: The Big Fizzle

Unread postby Tyler_JC » Sun 16 Dec 2007, 22:11:53

Just a few statistics to remember.

32% of new US energy production capacity came from renewable sources in 2006, excluding nukes and hydro.

19% of new US electricity production in 2006 was wind power.

As for Europe, oil consumption is down dramatically since its 1970s peak, despite population and economic growth.

Image

Italy, France, and Germany use half the energy that America does per capita despite having essentially the same standard of living and arguably a higher quality of life.

And EU policy is moving in the right direction. Given enough discomfort, Americans will follow suit.

This stuff isn't impossible and it is happening right now. Everything looks like doom when you stare at a 3% demand growth curve running off into infinity but that's not how the world works.

Demand growth will slow and renewable energy supplies will continue marching upward as consumer swap from liquid to electric transport.

Peak Oil will be a massive social, economic, and political disruption but it won't be the end of civilization.

The green bar is the current % of energy that comes from a renewable source, the white bar represents the 2010 objective.

Image
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Re: Peak Oil: The Big Fizzle

Unread postby efarmer » Sun 16 Dec 2007, 23:16:38

I often reach the place where I run out of mental capacity and patience, and perspective, and therefore hope, to see any solutions, to the big bag of dicks (a Missouri centric term) that faces us in the onset of resource limits and climate changes coupled with human unconsciousness. And then I get great hope in the fact that I ain't the sharpest tool in the shed, and that no matter what else fails, I will put my faith in the scientific principles,
stop sitting on the pitty pot until I have three or more red rings on my fanny coupled with tingling legs, and open myself up to the fact that collectively we are smarter and more resilent than we are as individuals. Kudos to you all for great debate, and in my opinion, this thread is somewhat like a light bulb arguing with itself about which part is the filament, and which part is unnecesary and could be discarded.
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Re: Peak Oil: The Big Fizzle

Unread postby Heineken » Sun 16 Dec 2007, 23:35:56

$this->bbcode_second_pass_quote('Tyler_JC', 'J')ust a few statistics to remember.

32% of new US energy production capacity came from renewable sources in 2006, excluding nukes and hydro.

19% of new US electricity production in 2006 was wind power.

As for Europe, oil consumption is down dramatically since its 1970s peak, despite population and economic growth.


I highlighted the key word in your first two statistics, Tyler. The percentages of the total remain, and will remain, rather trifling.

Is oil consumption really down dramatically in Europe, or has it simply shifted some of that consumption elsewhere? I.e., to the countries it imports manufactured goods from. Thus, China, India, etc., are burning the oil to produce goods that Europe would otherwise burn to produce them on its own.

It's a shell game.

Europe is a poor model for North America in this analysis, in any case. I've lived in both places and can tell you that they are completely different animals.

For many vital products and services there are simply no substitutes for oil and natural gas.

Finally, there's pstarr's signature. Who knows how much fossil-fuel use is "hidden" in the production and maintenance of "renewable" infrastructure?
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Re: Peak Oil: The Big Fizzle

Unread postby JohnDenver » Mon 17 Dec 2007, 01:00:49

$this->bbcode_second_pass_quote('Heineken', 'T')hus, China, India, etc., are burning the oil to produce goods that Europe would otherwise burn to produce them on its own.


Virtually all factories nowadays run on electricity, not oil. What specific goods are you referring to that are produced by burning oil?
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Re: Peak Oil: The Big Fizzle

Unread postby SchroedingersCat » Mon 17 Dec 2007, 02:05:09

Well let's see: about 1/2 of a barrel of oil is gasoline. The rest is diesel, kerosene, LPG, bunker oil, asphalt, etc. Basically all things that are necessary to producing stuff. Especially in producer nations. You need an amazing infrastructure to produce and deliver all the products that modern western society has become dependent on.

In the past decade the price of oil has gone up four fold. That means that the price of shipping things has gone up at least as much. Plus the various inputs which have been made more expensive.

Oil is an input to almost every aspect of modern society. Perhaps more modern countries don't rely upon oil for the direct production of electricity, but electricity is only one input to the industrial chain.
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Re: Peak Oil: The Big Fizzle

Unread postby TheDude » Mon 17 Dec 2007, 02:20:41

$this->bbcode_second_pass_quote('Tyler_JC', 'J')ust a few statistics to remember.

32% of new US energy production capacity came from renewable sources in 2006, excluding nukes and hydro.

19% of new US electricity production in 2006 was wind power.


Think we've seen this one:

Image

Are we past a million AFVs in the US yet? And the only truly long solutions for me are EVs, the smallest contributor here.

From the EIA.

$this->bbcode_second_pass_quote('', 'T')his stuff isn't impossible and it is happening right now. Everything looks like doom when you stare at a 3% demand growth curve running off into infinity but that's not how the world works.

Demand growth will slow and renewable energy supplies will continue marching upward as consumer swap from liquid to electric transport.


For electricity it's this NG problem that worries me most now. As you know NG wells don't decline, they crash, sometimes as much as 60%/year. And the only way NA has kept up with demand is by drilling like mad.

LNG ain't gonna happen much from the looks of things, due to political intractability. They've fought tooth and nail against building a terminal on the lower Columbia River. So in essence we're on our own.

I'm cheering for runaway growth in wind and solar though. Wouldn't be adverse to the odd nuke, too.
Thanks for that chart, Tyler - interesting stuff at the EC site.

$this->bbcode_second_pass_quote('JohnDenver', 'A')ll the empirical evidence seems to support Stuart's theory. Do you have a good argument for not believing it? Any empirical evidence which refutes it? I'd love to hear it if you do.


Dunno about that but in 282. LAHERRERE: LIQUIDS WILL PEAK AROUND 2020 you stated:

$this->bbcode_second_pass_quote('', 'A')nd, for all you Hubbert-Linearization true-believers, here's Laherrere's new liquids linearization. Note how the linearization goes haywire after 2003. We were all set to hit 2250, and then Bing! the unexpected happens, and now we're heading for 3000 -- maybe even 4000. Which just goes to show how completely worthless HL is as a predictive technique.


Image

Jeez, there's a million alternative models. Like the NG we've been drilling like mad for oil, and some of these big finds have been de facto duds so far - too deep like Jack 2, too much H2S like Kashagan. Then there's political spanners in the works - have you read Blood and Oil? Klare barely mentions geological limits at all, political ones do just fine! He's on board with us Peakers now, too.
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Re: Peak Oil: The Big Fizzle

Unread postby Tyler_JC » Mon 17 Dec 2007, 03:45:52

Image

This is a chart of US energy demand over the next 50 years (assuming no increases in efficiency or conversation and a continuation of modern consumption growth patterns).

The rapidly accelerating line is the amount of power produced by renewable energy.

The growth rate starts off at the current 21.6% and decelerates at a rate of .5% a year until it levels off at 4% annual growth in order to adjust for the law of diminishing returns.

The gap is the need for non-renewable (nuclear, coal, or NG) energy. Mind you, we only need to increase the nonrenewable production for another decade before increased supplies of renewables exceed new demand. After 2016, we start cutting non-renewables out of the energy diet.

By about ~2046, just in time to hit the zero carbon emissions by 2050 deadline, renewable supply exceeds total demand.
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