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Hydrocarbon Depletion & the Myth of Alternatives

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

Hydrocarbon Depletion & the Myth of Alternatives

Unread postby Aaron » Wed 25 May 2005, 09:32:49

Oil & Gas Alternatives:

- Conservation
- Efficiency
- Hydrocarbon Substitutes

That's about it.

Much posting recently concerning alternative energy futures... (bigg surprise there) :)

And quite appropriate faced with peak oil.

I've done a great deal of research on oil alternatives myself, and enjoyed reading the findings of our members research.

Among the non-oil technologies being explored, several emerge as promising new ways to meet our planet's energy demands in the future.

Wind/Solar/Hydro/Nuclear/Biofuel/Efficiency

These "known" technologies are certain to contribute to our future energy profile as we march down the slope of Hubbert's Peak.

And a more speculative list of exotic oil alternative sources may indeed deliver on the whispered promises of their supporters.

Much has also been made of comparisons between EROEI calculations in an attempt to estimate where we stand in meeting anticipated depletion of oil & gas resources.

And rightly so...

However,

:) The difficulty I encounter before I ever get to comparative analysis among technologies are the relationships which exist between these technologies & hydrocarbons.

When evaluating alternatives I immediately want to know a couple of basic things.

1) To what extent does relatively cheap hydrocarbon power today subsidize the alternative in question?

2) How do the expected rates of return from investing in alternatives compare to expected oil & gas depletion rates?

Until I answer these 2 basic questions, any comparisons are somewhat meaningless.

I would argue that:

1) Hydrocarbon energy massively subsidizes almost every aspect of our civilization to an extent which will render all known oil alternative technologies hopelessly expensive as oil prices rise.

2) Rapid depletion from half a century of MRE wells will outstrip any potential alternative energy candidates (or indeed any combination) ability to compensate in a meaningful way.

In other words, oil is just such a kick ass source of energy, even our most promising alternatives are an almost irrelevant consideration if we include oil's secret subsidy of these alternatives in the calculation.

And even if we somehow figure out some wonderful new power source today, can we ramp it up to meet the anticipated depletion rates?

And that is I think the ultimate arbitrator of this argument.

How much freakin oil is left?!?!

Until we have reliable info on reserves, we can't know the exact midpoint, or calculate a meaningful depletion rate globally.

I have almost no doubt that every technology I mentioned will indeed become viable sources of energy. But if we believe Simmons & co are correct in predicting rapid declines past midpoint, I can hardly see how it will matter.
The problem is, of course, that not only is economics bankrupt, but it has always been nothing more than politics in disguise... economics is a form of brain damage.

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Re: Hydrocarbon Depletion & the Myth of Alternatives

Unread postby Doly » Wed 25 May 2005, 09:42:58

$this->bbcode_second_pass_quote('Aaron', '
')1) Hydrocarbon energy massively subsidizes almost every aspect of our civilization to an extent which will render all known oil alternative technologies hopelessly expensive as oil prices rise.


Not convinced about this one at all. Why would:
a) Solar
b) Wind
c) Nuclear
d) Biomass
be hopelessly expensive assuming that there is shortage of oil?

Note that I'm saying shortage, not complete lack. I don't expect that we'll run out of plastics in the near future, they'll just be more expensive.
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Re: Hydrocarbon Depletion & the Myth of Alternatives

Unread postby Aaron » Wed 25 May 2005, 10:11:38

$this->bbcode_second_pass_quote('Doly', '')$this->bbcode_second_pass_quote('Aaron', '
')1) Hydrocarbon energy massively subsidizes almost every aspect of our civilization to an extent which will render all known oil alternative technologies hopelessly expensive as oil prices rise.


Not convinced about this one at all. Why would:
a) Solar
b) Wind
c) Nuclear
d) Biomass
be hopelessly expensive assuming that there is shortage of oil?

Note that I'm saying shortage, not complete lack. I don't expect that we'll run out of plastics in the near future, they'll just be more expensive.


Good question...

Anyone care to respond first... I have to get to a meeting. :)
The problem is, of course, that not only is economics bankrupt, but it has always been nothing more than politics in disguise... economics is a form of brain damage.

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Unread postby linlithgowoil » Wed 25 May 2005, 10:32:58

im not so sure prices will go all that high for alternative energy, beyond a certain point no one can afford it and the price falls again.

same with oil - i doubt oil will ever go much higher than $100 a barrel, ever. $100 a barrel oil is pretty expensive, especially if you are in recession/depression.

$1 a barrel is pretty expensive if you have zero excess money after buying food.
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Re: Hydrocarbon Depletion & the Myth of Alternatives

Unread postby aahala » Wed 25 May 2005, 11:40:36

$this->bbcode_second_pass_quote('Aaron', '
')1) To what extent does relatively cheap hydrocarbon power today subsidize the alternative in question?



I'm not sure I know what you mean.

If you're referring to cheap hydrocarbon input to implement
additional quantities of more expensive alternative energy, it's a negative subsidy not a positive one, because it means cheap hydrocarbons are
being used to produce more expensive alternatives. That is, hydrocarbons
would be even less expensive if used directly and more efficiently than
indirectly thru alternatives.
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Unread postby Ludi » Wed 25 May 2005, 11:47:34

Alternative energy, subsidized by cheap oil, is already expensive and not affordable for many of us. How will it become more affordable if cheap oil isn't available for its manufacture?
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Unread postby Ebyss » Wed 25 May 2005, 12:06:24

$this->bbcode_second_pass_quote('Ludi', 'A')lternative energy, subsidized by cheap oil, is already expensive and not affordable for many of us. How will it become more affordable if cheap oil isn't available for its manufacture?


To be honest the only way I can see this happening is if the government subsidises the manufacture or purchase of these products. Either by rationing oil and giving it only to those who really need it (doctors, hospitals, public transport, alternative energy manufacturers, agriculture etc etc), or by giving grants and tax relief to manufacturers so they can bring prices down. Will it happen in time? Will it be enough? I doubt it. I hope I'm wrong.
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Unread postby NonToxic » Wed 25 May 2005, 12:09:12

$this->bbcode_second_pass_quote('Ludi', 'A')lternative energy, subsidized by cheap oil, is already expensive and not affordable for many of us. How will it become more affordable if cheap oil isn't available for its manufacture?


I think you should change you wording from "not affordable for many of us" to "not affordable for most of us".

Priced a home solar system lately? I have, for a good sized system to run my (modest) home the way it is run right now is going to cost around $50k.

Oh, and I agree fully. It's only going to increase in price while most incomes will not follow fast enough.
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Unread postby aahala » Wed 25 May 2005, 12:35:29

$this->bbcode_second_pass_quote('Ludi', 'A')lternative energy, subsidized by cheap oil, is already expensive and not affordable for many of us. How will it become more affordable if cheap oil isn't available for its manufacture?


The hope is, and there's some reason to believe it, is that alternative
energy is on the left hand side of the learning curve and well below
the optimal size of firm/size of industry. As we move up these curves,
the improvements in price will trump any increase in carbon fuel inputs.

This line of reasoning doesn't mean alternatives will ever be cheaper
than existing carbon prices, but they may become significantly cheaper
than they are now and eventually below the then existing carbon prices.

A historical example - wind electricity prices has fallen about 80% or
more since the 80s, and in the better locations in the US, is below the
current cost of producing electricity using NG.
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Unread postby Egon_1 » Wed 25 May 2005, 12:49:29

$this->bbcode_second_pass_quote('', 'A')aron wrote:

1) Hydrocarbon energy massively subsidizes almost every aspect of our civilization to an extent which will render all known oil alternative technologies hopelessly expensive as oil prices rise.

Doly wrote:

Not convinced about this one at all. Why would:
a) Solar
b) Wind
c) Nuclear
d) Biomass
be hopelessly expensive assuming that there is shortage of oil?

Note that I'm saying shortage, not complete lack. I don't expect that we'll run out of plastics in the near future, they'll just be more expensive.


To get back to answering Doly's question:

Think about the oil use in: mining/processing the raw materials, transporting the raw materials, the manufacturing process, packaging, distribution, not to mention everything related to those things, and I think it becomes clear that oil is subsidizing just about everything we do.
The big question is just how much, and what alternatives to that subsidizing will come into play in the future.
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Unread postby nero » Wed 25 May 2005, 13:55:34

$this->bbcode_second_pass_quote('', 'T')hink about the oil use in: mining/processing the raw materials, transporting the raw materials, the manufacturing process, packaging, distribution, not to mention everything related to those things, and I think it becomes clear that oil is subsidizing just about everything we do.
The big question is just how much, and what alternatives to that subsidizing will come into play in the future.


I don't exactly understand the oil subsidy argument. Sure a liquid fuel is very useful in mining and processing but these operations are paying the current market price for these fuels how exactly is that a subsidy? If you simply mean that when the price of liquid fuels go up the price of mining and processing also goes up, I would agree with you but that isn't a subsidy. A subsidy is where the profits from one activity are used to sustain another activity. If the mining and processing plants were receiving oil at below market prices that would be a subsidy but since they are paying a fair market price for their fuels where is the subsidy?

I think there is an overall "subsidy" to society provided by cheap oil that indirectly helps all economic activities by providing cheap power, but since it is spread around the economy it "subsidizes" all energy intensive activities including the petroleum industry. As this "subsidy" is removed everything gets more expensive, that is pretty obvious. But this is IMO a missuse of the term "subsidy".
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Unread postby khebab » Wed 25 May 2005, 13:57:46

$this->bbcode_second_pass_quote('Ludi', 'A')lternative energy, subsidized by cheap oil, is already expensive and not affordable for many of us. How will it become more affordable if cheap oil isn't available for its manufacture?

I agree, we should have made the transition toward alternatives decades ago when oil was dirt cheap, long before the production plateau.

Now, we have a huge infrastructure totaly hydrocarbon dependant to maintain and make the transition toward new energy sources in the same time. In Canada, for instance, roads an highways have to be remade every three or five years because of the huge temperature shifts we have here. This process is highly energy intensive and requires access to fossil fuels.
Last edited by khebab on Wed 25 May 2005, 14:08:51, edited 1 time in total.
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Unread postby heyhoser » Wed 25 May 2005, 14:04:56

$this->bbcode_second_pass_quote('NonToxic', '')$this->bbcode_second_pass_quote('Ludi', 'A')lternative energy, subsidized by cheap oil, is already expensive and not affordable for many of us. How will it become more affordable if cheap oil isn't available for its manufacture?


I think you should change you wording from "not affordable for many of us" to "not affordable for most of us".

Priced a home solar system lately? I have, for a good sized system to run my (modest) home the way it is run right now is going to cost around $50k.

Oh, and I agree fully. It's only going to increase in price while most incomes will not follow fast enough.


Great comments, guys. I love the people on this board that talk about how we can just switch to alternatives. Phew! Thank goodness I'm in a postition to buy a brand new fuel-efficient car next year. Also, my town will have no problem affording the implementation of localized renewable energy sources (I mean, we've got enough money for ten times our schools budget). And the solar panels, pshaw, everyone's going to be buying them so the price will have to drop to make them affordable. And luckily, all the auto workers in the area will be able to get new jobs in the new energy-development grid.

Right....
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Unread postby heyhoser » Wed 25 May 2005, 14:06:38

$this->bbcode_second_pass_quote('khebab', 'N')ow, we have a huge infrastructure totaly hydrocarbon dependant to maintain and make the transition toward new energy sources in the same time. In Canada, for instance, roads an highways have to be remade every three or five years because of the huge temperature shifts we have here. This process is highly energy intensive and requires access to fossil fuels.


We won't need highways post PO. All of our biodiesel vehicles will be able to hover.
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Unread postby Ludi » Wed 25 May 2005, 14:25:57

$this->bbcode_second_pass_quote('NonToxic', 'I') think you should change you wording from "not affordable for many of us" to "not affordable for most of us".


I agree, it's quite ludicrously expensive.
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Unread postby MicroHydro » Wed 25 May 2005, 14:45:22

There is no avoiding the world economic depression, and the end of the "American Way of Life", and some increased level of dieoff from war/disease/famine beyond that what is already happening.

Having said that, in theory, once the dust settles, a new sustainable civilization could be built on wind. Turbines now have an EROEI of 35. They are mainly made of aluminum. Aluminum making mainly requires electricity, which existing turbines can make. In theory bauxite could be mined with (unfree?) human labor and transported to the ore refinery in sailing ships if necessary.

In practice, one aluminum smelter has already located in Iceland with a dedicated hydropower source of electricity. Also, for a long time there will be plenty of scrap aluminum from all the airliners that will be sitting on the ground. There is no way that wind can save the current level of civilization, but there is no way that the whole planet is going back to the stone age either. Feudalism and slavery, yes, total abandonment of metallurgy and electricity, no. Strongmen will arise that will use the power of the gun to make sure that some infrastructure keeps going.
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Re: Hydrocarbon Depletion & the Myth of Alternatives

Unread postby FatherOfTwo » Wed 25 May 2005, 14:51:32

$this->bbcode_second_pass_quote('nero', 'I') think there is an overall "subsidy" to society provided by cheap oil that indirectly helps all economic activities by providing cheap power, but since it is spread around the economy it "subsidizes" all energy intensive activities including the petroleum industry. As this "subsidy" is removed everything gets more expensive, that is pretty obvious. But this is IMO a missuse of the term "subsidy".


I agree, so maybe Aaron’s first question
$this->bbcode_second_pass_quote('Aaron', '1')) To what extent does relatively cheap hydrocarbon power today subsidize the alternative in question?



would be better phrased:

1) At what point does cost of the initial manufacture of an alternate become high enough so as to negate it as being a feasible alternative for the general public?

Answering 1) is not easy, because the definition of “feasible alternative” can mean many things, it all depends on what the general public is prepared to accept.


And
$this->bbcode_second_pass_quote('Aaron', ' ')2) Rapid depletion from half a century of MRE wells will outstrip any potential alternative energy candidates (or indeed any combination) ability to compensate in a meaningful way.


seems likely (at this point in the game). Again the question is a matter of magnitude. Will it be (*for the general public*) an annoyance (mosquito bite), disruption (broken limb), severe disruption (lost limb) or catastrophic (terminal illness).

$this->bbcode_second_pass_quote('Aaron', 'I') have almost no doubt that every technology I mentioned will indeed become viable sources of energy. But if we believe Simmons & co are correct in predicting rapid declines past midpoint, I can hardly see how it will matter.


So I think Aaron feels it'll be either a lost limb or terminal illness for the general public. I think the jury is out. Purely from an energy use standpoint, there is a lot of waste that can be trimmed, allowing significant amounts of oil to be dedicated to the production of alternates. Of course, whether or not this kind of initative will be undertaken by the ruling elite is the million dollar question. The longer we wait the more we slide down the severity scale, the worse the resource wars will be, the lesser our chances of coming out of this in survivable shape.
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Unread postby FatherOfTwo » Wed 25 May 2005, 14:53:36

$this->bbcode_second_pass_quote('Ludi', '')$this->bbcode_second_pass_quote('NonToxic', 'I') think you should change you wording from "not affordable for many of us" to "not affordable for most of us".


I agree, it's quite ludicrously expensive.


I disagree. It isn't expensive enough
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Unread postby Ludi » Wed 25 May 2005, 15:05:30

$this->bbcode_second_pass_quote('FatherOfTwo', '')$this->bbcode_second_pass_quote('Ludi', '')$this->bbcode_second_pass_quote('NonToxic', 'I') think you should change you wording from "not affordable for many of us" to "not affordable for most of us".


I agree, it's quite ludicrously expensive.


I disagree. It isn't expensive enough


What the hey? I can only afford enough PV to run a few lightbulbs and maybe a super-efficient freezer. Whadya mean it "isn't expensive enough?" Not expensive enough for what?

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Unread postby Ebyss » Wed 25 May 2005, 15:14:50

I thought when Aaron said :

$this->bbcode_second_pass_quote('', '1')) To what extent does relatively cheap hydrocarbon power today subsidize the alternative in question?


he was talking about input of oil, and not any financial subsidies or costs. I took it to mean, "how much oil do we need to create those alternatives?", as in, how much oil is needed to manufacture a solar panel, or a wind turbine.. and to transport them to their intended destination etc etc. You can't have these alternatives on a large scale without oil.

Aaron, please feel free to correct me if I'm wrong here, I may have misinterpreted your question.
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