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Are we fools? Time to eat some crow?

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

Re: Are we fools? Time to eat some crow?

Unread postby TonyPrep » Tue 21 Oct 2008, 05:37:22

$this->bbcode_second_pass_quote('AgentR', 'W')e produce more than 5 now. Yes there will be a decline of course, the point is, that there will be a very substantial amount of oil produced within the US for a very long time.
Crude oil production is currently at around 4 mbpd, though the recent hurricanes will still be having an effect on production. The US also produces NGL and other liquids, of course, but the 4 mbpd doesn't augur well.

If you think that 4-5 mbpd is the base, consider what the US economy (and resultant society) might look like with only 4-5 mbpd and whether, given that economy and society, those 4-5 mbpd can be maintained for the period you suggest.
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Re: Are we fools? Time to eat some crow?

Unread postby AgentR » Tue 21 Oct 2008, 11:15:40

$this->bbcode_second_pass_quote('TonyPrep', 'w')ith only 4-5 mbpd and whether, given that economy and society, those 4-5 mbpd can be maintained for the period you suggest.


I don't recall saying things would be *nice* in that situation, I pointed out that it provides a baseline minimum.
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Re: Are we fools? Time to eat some crow?

Unread postby AgentR » Tue 21 Oct 2008, 11:40:57

$this->bbcode_second_pass_quote('jupiters_release', 'D')o food and gas shortages, either intermittent or permanent, constitute just "bumpy" or "uncomfortable"? Euphemisms easily stray into cognitive dissonance.


Not euphemisms at all; my sense of scale in terms of good, uncomfortable, and bad, is perhaps a bit different than others. Bad is where thousands lie dead and left to rot in the streets of US cities from malnutrition induced diseases.

Uncomfortable would be no gas for personal transport, greatly reduced economic activity, unemployment, and $40 loaves of bread.

Good is hourly wage earners being able to afford A/C or heat in their apartments.

$this->bbcode_second_pass_quote('', 'Y')ou must disagree with Simmons as well. The_Next_Meltdown?


I disagree about what the inflection point will look like. I think a lot of authors use the hype of a near instant destabilization to sell stuff that appeals to a particular market. Its hard to sell to the Instant Doom crowd when you tell them that part of Doom will be working the same old job for the next twenty years, and that things like disconnecting the A/C or riding a little scooter to work are more probable than the roving Zombie Horde.

Core to their theory is a "shock" that makes the economy fall apart; and yet, our current economic climate is a perfect example of how shock doesn't work like that; instead you get economic recession as an appropriate response to excessive demand, the excessive demand gets dumped, and the system restabilizes; and it could do this for dozens and dozens of cycles on the way down.
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Re: Are we fools? Time to eat some crow?

Unread postby ROCKMAN » Tue 21 Oct 2008, 13:00:49

I agree with your general premise R regarding the plateau. While the production model for PO does have a strong base I don’t see the below ground mechanics having the same impact as the above ground factors. This will sound a little doomerish but it’s difficult to ignore the entire history of mankind. Just a quick review of the 20th century is a good model for how even sophisticated and “advanced” societies do not respond well to serious threats on the economic well being. I think the political/military reaction to the global confrontation of PO will overwhelm whatever non-violent ramifications develop.

Hitler wasn’t given control of Germany because they hated Jews and gypsies. He took advantage of the angry sentiment generated by the global powers abuse of their victory of Germany in WWI. Not a justification from our point of view. But it was from most Hans Six-pack. And the Japanese military gained control over its country political structure in response to direct attacks on its economy (ironically enough by the western embargo of oil, for one example). I know most would argue that such momentous and violent reactions would not happen today in such an “enlightened” world. I lack such confidence.
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Re: Are we fools? Time to eat some crow?

Unread postby TonyPrep » Tue 21 Oct 2008, 14:19:31

$this->bbcode_second_pass_quote('AgentR', '')$this->bbcode_second_pass_quote('TonyPrep', 'w')ith only 4-5 mbpd and whether, given that economy and society, those 4-5 mbpd can be maintained for the period you suggest.


I don't recall saying things would be *nice* in that situation, I pointed out that it provides a baseline minimum.
Indeed. And I was pointing out that the notion that the US will maintain a steady 4-5 mbpd for several decades is a bit too optimistic, in a society and economy that has come down from consuming 20 mbpd and still has a growing population. There are also doubts at being able to maintain that fairly high extraction rate due to geological constraints.

However, provided there is is not a global economic collapse, I don't think the US will need to get by on so little. That's a big proviso, though.
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Re: Are we fools? Time to eat some crow?

Unread postby TonyPrep » Tue 21 Oct 2008, 14:29:07

$this->bbcode_second_pass_quote('ROCKMAN', 'I') know most would argue that such momentous and violent reactions would not happen today in such an “enlightened” world. I lack such confidence.
I tend to agree. But I also tend to think that there would be a reluctance to behave in that way, which might delay any such reactions for longer than might have been the case a century ago.

However, I note that the UK quickly invoked terrorism laws against Iceland, when that country was simply trying to avoid a financial meltdown. Maybe your lack of confidence is well founded.
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Re: Are we fools? Time to eat some crow?

Unread postby AgentR » Tue 21 Oct 2008, 14:41:10

$this->bbcode_second_pass_quote('ROCKMAN', 's')ocieties do not respond well to serious threats on the economic well being. I think the political/military reaction to the global confrontation of PO will overwhelm whatever non-violent ramifications develop.

I don't recall excluding violent ramifications. Resource wars are to be expected. The civilian population of a country can still have shelter, food, and a bit of juice to run the A/C while engaging in resource wars to secure their fuel supplies; and that 5 mbbl is more than adequate to support military expeditions towards that goal.

nb: in my 5, I'm rolling up all sources of liquid fuel, both positive and negative EROEI sources; as long as its goopy and burns, it counts.
$this->bbcode_second_pass_quote('', 'H')itler wasn’t given control of Germany because they hated Jews and gypsies....

Interwebs alert!! arrggg, Hitler's been invoked.

Still, Hitler could have held on to Germany for a very long time had he been a bit more sane, and not insisted on actual territorial acquisition.

In addition, I don't for a moment exclude the possibility of a leftist dictatorship forming in the US within a few decades; but within the context of Peak Oil and simple survival, such a result would not fall anywhere near what I think of as "bad". Annoying and repulsive, certainly.
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Re: Are we fools? Time to eat some crow?

Unread postby ROCKMAN » Tue 21 Oct 2008, 14:55:38

Tony,

I guess it boils down to the fact that our individual expectations stem from one's own personal experiences. I don't have to read about the transformation of human nature under stress 60 or 70 years ago. I've seen it first hand in much more recent times. If one has never really seen rapid and extreme degradation of morality and compassion when a group is subjected to severe hardship, the transformation might shock them. We're lucky, in one sense, to not be accustomed to such turmoil here in the USA as are folks in some other parts of the world. But it also leaves us unprepared to see such possibilities in ourselves. And when the SHTF it will be easy for folks, in the middle of perhaps the worst suffering they have ever endured, to not see the psychology of the moment developing.
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Re: Are we fools? Time to eat some crow?

Unread postby ROCKMAN » Tue 21 Oct 2008, 15:12:03

I wasn’t really challenging any of your points R. I see matters similar to you. It was just a side comment of sorts...just in a rather dark mood today.

In fact, I’m always amazed when it becomes clear that some folks forget that the USA is one of the largest crude producers in the world. If we had developed a true sense of conservation 30 or 40 years ago I suspect many of our current problems would not exist. We would still have to deal with PO eventually but perhaps it would have been from a position of power and not self pitying helplessness. We’re really in much better shape then the EU IMO. They may be more efficient in the energy consumption but it’s also becoming clear their future energy supplies will be controlled by Russia to the point where compliance with Soviet policies will no longer be optional.

And I also agree about Hitler – had he been patient and developed resources in a timely manner we might all be speaking German today. And depending upon how you interpret history, crude oil shortages were a critical factor in his failure. Rather ironic given where we may be heading at the moment.
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Re: Are we fools? Time to eat some crow?

Unread postby kublikhan » Tue 21 Oct 2008, 15:22:34

$this->bbcode_second_pass_quote('shortonsense', '')$this->bbcode_second_pass_quote('kublikhan', 'I')t should help slow rising natural gas costs in the rest of the US. Colorado residents are going to see an end to the era of ultra cheap natural gas they got used to however.
I've been paying close attention to my utility billed natural gas costs for better than a decade now....what era of ultra cheap natural gas are you talking about? The late 90's?
Is your experience in Colorado different from the millions of other XCEL customers here in Colorado who missed this gift of "ultra cheap" natural gas? Maybe you buy directly on the spot market? I know most of us here in the state actually don't...we pay what the utility charges, and that hasn't been "ultra low" since years before this website fired up, so I figure maybe you are talking about like some OTHER era? :shock:

I was referring to the fact that Colorado residents have been paying much less for natural gas then the rest of the country and the new pipeline should help even out prices. The natural gas prices in Ohio(where the pipeline ends) are 50% higher than in Colorado. Check it out:
Image
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Re: Are we fools? Time to eat some crow?

Unread postby TonyPrep » Tue 21 Oct 2008, 16:01:11

$this->bbcode_second_pass_quote('AgentR', 'a')nd that 5 mbbl is more than adequate to support military expeditions towards that goal.
When looked at in isolation, that's true. In a country that is having to get by with 25% of its usual allowance, would society allow much of that to be squandered on ultimately fruitless military excursions?

Possibly, sadly.
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Re: Are we fools? Time to eat some crow?

Unread postby kublikhan » Tue 21 Oct 2008, 16:01:32

The data in that map is a bit old. Here is some more recent numbers. Colorado really does have cheaper gas compared to the rest of the country:

Residential Natural gas prices, Jul 2008.
Figures in dollars per Thousand Cubic Feet:

Colorado: 15.24
Ohio: 21.53
Illinois: 22.13
US: 20.19
US Natural Gas Prices
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Re: Are we fools? Time to eat some crow?

Unread postby ROCKMAN » Tue 21 Oct 2008, 16:13:29

Tony,

"Fruitless military excursions?" Perhaps. But what if Americans felt it was a path to returning to the life of plenty (oil)? And a self justified life at that. That's the delusion of righteousness I was referring to earlier. Despite all the pissing and moaning from some folks we are still a super power when it comes to resources...at least in the short to medium run. Combine our resources with a good bit of energy fat we could cut out of society if need be and we're not really in bad shape for a short while.
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Re: Are we fools? Time to eat some crow?

Unread postby Plantagenet » Tue 21 Oct 2008, 16:25:50

Image[/quote]

The very low gas prices shown for Alaska are misleading, as only the Anchorage area has access to cheap natural gas from the Cook Inlet area (and that is running out). The rest of the state has very high energy prices.

There are huge natural gas resources on the North Slope, but these will require construction of a new pipeline. Gov. Palin signed a deal last year with a pipeline company who will build the pipeline to bring gas from Alaska to the central USA, but who knows what will happen now with the economic crisis.
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Re: Are we fools? Time to eat some crow?

Unread postby AgentR » Tue 21 Oct 2008, 17:48:45

$this->bbcode_second_pass_quote('TonyPrep', '')$this->bbcode_second_pass_quote('AgentR', 'a')nd that 5 mbbl is more than adequate to support military expeditions towards that goal.
When looked at in isolation, that's true. In a country that is having to get by with 25% of its usual allowance, would society allow much of that to be squandered on ultimately fruitless military excursions?
Possibly, sadly.


As long as the people/countries/nationals that have been appropriately vilified are dieing in significant numbers; society will lap it up, and the ultimate fruitfulness becomes only marginally relevant in terms of support. A society in deprivation is easily motivated by nationalism.

Iraq is a perfect example of what a FRUITFUL excursion looks like; defeat of an appropriately vilified leadership, followed by lots of hand-wringing, lots of whining, violence everywhere, and oil traded in dollars.

Ask yourselves, how many people even have the phrase "permanent US bases in Iraq" in their heads anymore. Most don't care or even WANT to know. Those that do care are either on the fringe anti-war movement, or understand and support a resource war when they see a successful one and don't want to stir the pot back up again.

Vietnam OTOH, was fruitLESS because it was fought over a political disagreement, with no US national or resource interest of note.
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Re: Are we fools? Time to eat some crow?

Unread postby jupiters_release » Tue 21 Oct 2008, 18:02:09

$this->bbcode_second_pass_quote('AgentR', '')$this->bbcode_second_pass_quote('jupiters_release', 'D')o food and gas shortages, either intermittent or permanent, constitute just "bumpy" or "uncomfortable"? Euphemisms easily stray into cognitive dissonance.
Not euphemisms at all; my sense of scale in terms of good, uncomfortable, and bad, is perhaps a bit different than others. Bad is where thousands lie dead and left to rot in the streets of US cities from malnutrition induced diseases.
Uncomfortable would be no gas for personal transport, greatly reduced economic activity, unemployment, and $40 loaves of bread.

No gas and $40 bread is basically minutes away from your definition of bad. Semantic straw man.
$this->bbcode_second_pass_quote('AgentR', '')$this->bbcode_second_pass_quote('jupiters_release', 'Y')ou must disagree with Simmons as well. The_Next_Meltdown?
I disagree about what the inflection point will look like. I think a lot of authors use the hype of a near instant destabilization to sell stuff that appeals to a particular market. Its hard to sell to the Instant Doom crowd when you tell them that part of Doom will be working the same old job for the next twenty years, and that things like disconnecting the A/C or riding a little scooter to work are more probable than the roving Zombie Horde.

What Simmons is "hyping" means TEOTWAWKI and obviously the end of Simmons & Company International, which if the system did hold up has nothing to gain from the advice he's giving on MSM interviews to grow food locally and live in small villages.

Cognitive dissonance all the way, not that it's your fault.
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Re: Are we fools? Time to eat some crow?

Unread postby shortonsense » Tue 21 Oct 2008, 23:57:47

$this->bbcode_second_pass_quote('kublikhan', 'I') was referring to the fact that Colorado residents have been paying much less for natural gas then the rest of the country and the new pipeline should help even out prices. The natural gas prices in Ohio(where the pipeline ends) are 50% higher than in Colorado. Check it out:
Image

Nice chart. So, because we pay less than Ohio..in Colorado...where we have like real snow and cold weather and stuff, and probably use more, that is somehow an era of "ultra cheap"?

Nah, I ain't buying. Is our gas cheaper? Sure, but slightly cheaper isn't "ultra", and with spot prices being much less than residential I'm not sure there isn't a huge component of utility "gimme's" involved.

Any graph for pricing differentials based on regulatory and transportation issues involved? That would also explain the entire higher priced corridor from the GOM to Ohio. Thats where the big pipelines running NE go.
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Re: Are we fools? Time to eat some crow?

Unread postby kublikhan » Wed 22 Oct 2008, 15:58:11

$this->bbcode_second_pass_quote('shortonsense', 'N')ice chart. So....because we pay less than Ohio..in Colorado...where we have like real snow and cold weather and stuff, and probably use more, that is somehow an era of "ultra cheap"?
My "ultra cheap" comment was in response to this:

$this->bbcode_second_pass_quote('', 'L')ast fall, gas suppliers competing to stuff excess production into constrained pipeline systems drove spot prices to a laughably low 5 cents for 1,000 cubic feet of gas. That's the equivalent of a nickel to heat a typical house for two winter days.
"A lot of producers didn't think it was funny," said Porter Bennett, president and chief executive for energy analysts Bentek Energy LLC. "They were actually paying somebody to take it." Storing gas or turning off wells isn't always practical.
Yet for consumers across much of the West, where natural gas historically has been cheap and plentiful, the party is almost over, and it may have ended with that final discount splurge. The first of a handful of major new pipelines originating in the Rocky Mountains is starting to siphon away the bounty, promising lower prices for other regions. "If you don't care about the rest of the country, it's not such a good thing," Bennett said in Golden, Colo. "We kind of get screwed in the deal.

I consider 5 cents for 2 days of heat ultra cheap. You mentioned you closely watch your gas bill and did not notice any dip in price. Maybe the comment was from a different area then where you live in? Maybe it was only a brief dip and spot prices quickly recovered the next day, so any cheaper bill that day would be quickly overwhelmed by the other 29 days of the month. Maybe you only really crank the heater in winter and don't pay much attention to the bill in fall? I don't really know.

$this->bbcode_second_pass_quote('shortonsense', 'N')ah...I ain't buying. Is our gas cheaper? Sure....but slightly cheaper isn't "ultra", and with spot prices being much less than residential I'm not sure there isn't a huge component of utility "gimme's" involved.
You have a point that a brief period of cheap gas does not make a trend, and also that if one person is paying for expensive gas, and if another is paying twice as much, the first person is not getting an "ultra cheap" rate. But slightly cheaper? I would not go that far. Some of the different prices range from less than $10 for gas to more than $20, a difference of over 100%. Even in the regions we are talking about, the difference is almost 50%, still not "slight".

Perhaps my comment would have been better phrased like this:
"Colorado residents will soon face paying rates closer to the national average for natural gas."
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Re: Are we fools? Time to eat some crow?

Unread postby shortonsense » Wed 22 Oct 2008, 18:56:38

$this->bbcode_second_pass_quote('kublikhan', 'I') consider 5 cents for 2 days of heat ultra cheap. You mentioned you closely watch your gas bill and did not notice any dip in price. Maybe the comment was from a different area then where you live in? Maybe it was only a brief dip and spot prices quickly recovered the next day, so any cheaper bill that day would be quickly overwhelmed by the other 29 days of the month. Maybe you only really crank the heater in winter and don't pay much attention to the bill in fall? I don't really know.

Do you get a gas bill from a public utility? Their instant advantage during spot market trading does not make it to a customers bills...they simply decide they deserve more profit that month.
The spot market for electricity does the same thing, are you aware of the swing margins on say a 5 minute basis in the northeast on any given hot day? It certainly doesn't mean a customer is getting a bill for $10/kwh any more than natural gas customers in Colorado are paying $0.05/therm or mcf.
$this->bbcode_second_pass_quote('kublikhan', 'P')erhaps my comment would have been better phrased like this: "Colorado residents will soon face paying rates closer to the national average for natural gas."

I could buy that. Its what the utility has been telling us, every season now, for years. I've got 30% higher electric rates in the past year to prove it, as well as higher natural gas prices since at least 2005.
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Re: Are we fools? Time to eat some crow?

Unread postby kublikhan » Wed 12 Nov 2008, 15:49:59

$this->bbcode_second_pass_quote('ROCKMAN', 'G')ood luck with the COE permit K. A few years ago I watched an operator wait 1 year to get a COE permit to bury a 3" salt water line 2' down where it crossed a 46" water line buried 12 feet down. Guess they just wanted to be very sure.
Prophetic words of wisdom. More delays securing permits:
$this->bbcode_second_pass_quote('', 't')he start-up date on the 683-mile eastern portion of the pipeline was been delayed by five months until November 2009 because of delays in winning regulatory approvals and permits
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