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THE International Energy Agency (IEA) Thread pt 2 (merged) A

Discuss research and forecasts regarding hydrocarbon depletion.

Re: IEA: Production up 890,000 bbl in July to 87.8 million b

Postby copious.abundance » Tue 12 Aug 2008, 22:28:51

Incidentally, not only was oil consumption in Germany flat from 1991 to 2001, coal consumption in Germany actually declined during the same time.

Image

Consumption of natural gas in Germany did rise during this time (~2.7 tcf to ~ 3.2 tcf), but IIRC, most electricity in Germany is still generated by coal.

Image

And yet, as I said, Germany's economy grew 38% during this time.

No, increased fossil fuel consumption is not a prerequisite for economic growth.
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Re: IEA: Production up 890,000 bbl in July to 87.8 million b

Postby copious.abundance » Tue 12 Aug 2008, 22:42:27

$this->bbcode_second_pass_quote('pstarr', 'G')ermany like America has it's good manufactured in China, Malaysia, Singapore, Mexico, El Salvador.

Try comparing their energy use with GDP. I'll bet you get different results :razz:

Germany has a higher industrial output per capita than China, Malaysia, Singapore, Mexico and El Savador.

The per capita industrial output of China is $2,554.
The per capita industrial output of Germany is $9,893.

I can provide the detailed calculations if you want.

And if Germany blows away China in industrial output per capita, it would blow away Malaysia, Singapore, Mexico and El Salvador even more.

So your implication that Germany can grow its economy without using more fossil fuels because they don't manufacture much there does not particularly hold up to the evidence.
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Re: IEA: Production up 890,000 bbl in July to 87.8 million b

Postby copious.abundance » Tue 12 Aug 2008, 22:55:17

$this->bbcode_second_pass_quote('pstarr', 'P')er capita industrial output is a measure of market value, not product mass, volume, density, weight, or energy consumption. The Germans make 1 million Mercedes. The Chinese 1 billion bicycles. I wonder which has more value? Which uses more energy to produce?

The 1 million Mercedes almost certainly beat the 1 billion bicycles in all categories.

And yet . . . German oil consumption remains flat, their coal consumption has fallen, though their natural gas consumption has risen.

So I'm not sure what your point was.
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Re: IEA: Production up 890,000 bbl in July to 87.8 million b

Postby bkwillia » Tue 12 Aug 2008, 23:27:31

German fuel and energy taxes are among the highest in the world. It is no accident that oil demand has fallen. That their GDP has risen is a function of Germany's hard workings and innovative population.

While you you see that high taxes can reduce oil consumption, the reverse is also true. Fuel subsidies and price caps will increase demand. Obviously it is the balance of these two forces in the developing and developed world that matters, not the consumption patterns of the most energy conscious nations.

Nations like the US or Japan could introduce high fuel taxes like Germany and cut huge demand, but this would just accelerate what peak oil is already doing to these economies. This is not politically viable and the reverse is more likely to happen. Both presidential candidtates want to cut gasoline price with various interventions.

The main reason Germany is so far ahead of the game it that it has very little fossile fuel resource and depends on Russia for imports. Germany already went to war for oil, so they know they have to prepare for peak oil as it will hit them harder that most countries.

Getting back to the topic of this thread, the IEA indicates that supply has grown by 1% after prices rose 100% year over year. This is barely statistically relevant as a supply response. Show me the yearly data at the end of 2008 and then we can talk about supply growth.
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Re: IEA: Production up 890,000 bbl in July to 87.8 million b

Postby s0ul5 » Wed 13 Aug 2008, 01:44:43

$this->bbcode_second_pass_quote('OilFinder2', 'S')o no, economic growth is not "dependant on further demand and growth in supply of cheap, plentiful fossil fuels." There are many other examples of this in addition to Germany.


Consider the following:

Germany GDP:
70% service
29% industry
1% agriculture

China GDP:
39% service
49% industry
12% agriculture

Don't you think the large service sector is the reason behind Germany's GDP versus oil consumption.

And vision-master, shame on you for giving up that easily. If you don't have anything to throw back at OilFinder, you should agree with him.
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Re: IEA: Production up 890,000 bbl in July to 87.8 million b

Postby copious.abundance » Wed 13 Aug 2008, 02:48:11

$this->bbcode_second_pass_quote('s0ul5', '')$this->bbcode_second_pass_quote('OilFinder2', 'S')o no, economic growth is not "dependant on further demand and growth in supply of cheap, plentiful fossil fuels." There are many other examples of this in addition to Germany.


Consider the following:

Germany GDP:
70% service
29% industry
1% agriculture

China GDP:
39% service
49% industry
12% agriculture

Don't you think the large service sector is the reason behind Germany's GDP versus oil consumption.

Obviously that is a major reason - if not the major reason.

But the question was whether or not an economy can grow without increasing consumption of fossil fuels. Does it matter whether that growth comes from growth in the service sector, or growth from the industrial sector?

No, it does not matter. Either way, it's still economic growth.

At some point in time, China's economy will become as dominated by services as is Germany's economy, and then they, too, will be able to grow their economy without increasing fossil fuel consumption. When that happens, just as happened in Germany, they will still have an industrial sector, it will just be more efficient (including energy-efficient) than it is now, so they will even be able to increase industrial output without an increase in fossil fuel consumption.

And yes, industrial output in Germany has increased while fossil fuel consumption has been flat.

Click here for chart: German industrial output

Here's a more recent chart showing German oil consumption.

German oil consumption
Image
Source

Notice that during 2006-2007 when the German industrial production index rose from 110 to about 123, German oil consumption tanked.

Even total electricity consumption didn't rise all that much in Germany from 1991 to 2001, during that time when their economy grew 38%.
Click here for chart
Same source as above.
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http://peakoil.com/forums/post1193930.html#p1193930
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Re: IEA: Production up 890,000 bbl in July to 87.8 million b

Postby mos6507 » Wed 13 Aug 2008, 02:55:17

$this->bbcode_second_pass_quote('OilFinder2', '
')At some point in time, China's economy will become as dominated by services as is Germany's economy


IEA production up or not, long term there isn't enough oil left for China to go through the complete industrialization transition. That train is coming off its tracks sooner or later.
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Re: IEA: Production up 890,000 bbl in July to 87.8 million b

Postby copious.abundance » Wed 13 Aug 2008, 02:56:50

$this->bbcode_second_pass_quote('mos6507', 'I')EA production up or not, long term there isn't enough oil left for China to go through the complete industrialization transition. That train is coming off its tracks sooner or later.

We shall see. :twisted:
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http://peakoil.com/forums/post1190117.html#p1190117
http://peakoil.com/forums/post1193930.html#p1193930
http://peakoil.com/forums/post1206767.html#p1206767
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Re: IEA: Production up 890,000 bbl in July to 87.8 million b

Postby Plantagenet » Wed 13 Aug 2008, 03:00:17

$this->bbcode_second_pass_quote('bkwillia', '
')The main reason Germany is so far ahead of the game it that it has very little fossile fuel resource and depends on Russia for imports.


Being dependent on Russia for your fossil fuel resources does not put Germany "ahead of the game." It just means Germany has little alternative but to kowtow when the Russians raise prices and make political demands. :)
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Re: IEA: Production up 890,000 bbl in July to 87.8 million b

Postby mos6507 » Wed 13 Aug 2008, 03:47:20

$this->bbcode_second_pass_quote('Plantagenet', '
')Being dependent on Russia for your fossil fuel resources does not put Germany "ahead of the game." It just means Germany has little alternative but to kowtow when the Russians raise prices and make political demands. :)


But at least they have an energy strategy (like making a zillion solar panels). Maybe it won't help that much, but it's better than the US which is doing next to nothing.
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Re: IEA: Production up 890,000 bbl in July to 87.8 million b

Postby Daniel_Plainview » Wed 13 Aug 2008, 04:22:42

$this->bbcode_second_pass_quote('Cashmere', 'I')t's all about the crude oil.
Watch crude. Crude is at 74. Same number as it was in 05.

When crude starts falling off, it's game over, regardless of the rest of the "liquid fuels" contingent.


Yes, except that I would clarify that it's "game over" when global crude supply falls off irreversibly and/or sharply. And you are also correct that the only way to compare apples-to-apples is to focus on global crude oil supplies, not total liquid fuels.
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Re: IEA: Production up 890,000 bbl in July to 87.8 million b

Postby s0ul5 » Wed 13 Aug 2008, 05:49:35

$this->bbcode_second_pass_quote('OilFinder2', 'B')ut the question was whether or not an economy can grow without increasing consumption of fossil fuels. Does it matter whether that growth comes from growth in the service sector, or growth from the industrial sector?


I don't argue this. What I do argue is that the world in general could achieve that kind of economy. ->

$this->bbcode_second_pass_quote('OilFinder2', 'W')hen that happens, just as happened in Germany, they will still have an industrial sector, it will just be more efficient (including energy-efficient) than it is now, so they will even be able to increase industrial output without an increase in fossil fuel consumption.


My point is that even if Germany's oil consumption is down, it's total consumption of energy is pretty much flat. That energy still has to come from somewhere. Even Germany still imports most of it. And any country on it's way to even this efficiency has to build an energy infrastructure that requires finite raw materials. Also, the same applies to industrial output, increasing or flat. Peak Oil only starts with oil.
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Re: IEA: Production up 890,000 bbl in July to 87.8 million b

Postby dorlomin » Wed 13 Aug 2008, 06:49:55

The very fact Oil Finder2 chooses Germany from the 80s to now tells you he does not want to show you an honest assement.

:)

He does like his little games...

Hmmm so any prizes for any political changes in that time in Germany that may have had an imact on industry? Anyone in the class... hint 1989.... Oh ok Ill give it away. Germany reunified and a marxist economy was combined with a most successful liberal market economy.

$this->bbcode_second_pass_quote('', 'G')ermany is the seventh largest coal producer in the world. In 2004, it produced 232.7 million short tons (Mmst), of which the large majority was lignite. The country operates ten mines, employing some 45,000 people. However, German coal production has declined rapidly since reunification in 1989-1990; in 1990, West and East Germany produced a combined 513.7 Mmst of coal. The closure of older, inefficient mines in the former East Germany has been the principle cause of this decline. Currently, over one-half of Germany’s lignite production occurs in the Rhineland region in the western part of the country.


Incdently NEVER trust graphs and quotes without links to the source. It often suggest a games afoot.

http://www.eia.doe.gov/emeu/cabs/Germany/Full.html

So all those coal savings.... how much of it comes from changes in the type of coal mined, the closure of out of date rolling mills and chemical factories, improvements in grid distribution efficiency and a host of other changes in the transfer from Marxism to liberal market economics and western enviromental standars?


Kinda hard to tell, isnt it. And that is the doubt and obstification OilFinder2 wants to spread.

And offcourse German machine tools and high end electronics are rather likely to take alot less energy per $ than sweat shop produced barbie dolls and spanners. But we cant have an economy without spanners even if its not the germans making the bulk of them. (they do make a damned fine spanner).

Image from the eia page.

Hmmmmm seems Germany has not cut back on electricity production. *scratches chin*

So when we can perhaps look at countries not making huge improvements from moving from Marxism then we can have another wee chat about energy and GDP.
Last edited by dorlomin on Wed 13 Aug 2008, 18:01:56, edited 1 time in total.
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Re: IEA: Production up 890,000 bbl in July to 87.8 million b

Postby Chuckmak » Wed 13 Aug 2008, 11:15:31

$this->bbcode_second_pass_quote('mos6507', '')$this->bbcode_second_pass_quote('Plantagenet', 'B')eing dependent on Russia for your fossil fuel resources does not put Germany "ahead of the game." It just means Germany has little alternative but to kowtow when the Russians raise prices and make political demands.
But at least they have an energy strategy (like making a zillion solar panels). Maybe it won't help that much, but it's better than the US which is doing next to nothing.

Pretty much.
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Re: IEA: Production up 890,000 bbl in July to 87.8 million b

Postby r101958 » Wed 13 Aug 2008, 16:48:18

An interesting exchange indeed! We might want to point out that a good portion of any growth in Germany's economy is dependant on our excessive consumption here in America. One wonders how much growth they'll see this year.
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Re: IEA: Production up 890,000 bbl in July to 87.8 million b

Postby MD » Wed 13 Aug 2008, 16:50:17

It's about freakin' time we got some production increase with all the capital that's been flowing into the energy sector over the last four years!

Yeesh!
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Re: IEA: Production up 890,000 bbl in July to 87.8 million b

Postby dorlomin » Wed 13 Aug 2008, 17:58:47

. did not mean to do that: oops
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