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

Discuss research and forecasts regarding hydrocarbon depletion.

Re: IEA: "the era of cheap oil is over"

Postby ROCKMAN » Sun 09 Nov 2008, 10:34:40

Seahorse,

No good guess since the KSA doesn't release the data but a couple of valid points:

It won't start its increased decline rate as dramatically as Cantarell. As I understand Ghawar is made up of several separate but somewhat connected pools in the same reservoir. Thus several different or actually inclined water levels. Makes predictions very complicated.

Also, the N2 coning in Cantarell is a much more dynamic and rapid process then the water coning at Ghawar. But the KSA will certainly see it coming on. They probably catch samples weekly and measure the water cut on each well in the field. This is the only way to accurately map the water encroachment in such a big and complex reservoir.

Just for some magnitude of scale I'll make up some numbers: during month X the decline rate is 1% and has been there for some years. As the water level starts hitting some wells the decline jumps to 2 to 3% at month X+6. At X+12 it could be 4%. But as the water hits more wells at X+18 it might jump to 7 or 8%. At X+ 2 or 3 years it might jump to 10 to 15%. The big problem with trying to make a credible prediction is just the shear size of the field. The production decline probably won't increase as quickly as a smaller and simpler reservoir. On the other hand, a 2 or 3% decline at Ghawar is a huge absolute number compared to just about every other field in the world.
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Re: IEA: "the era of cheap oil is over"

Postby ROCKMAN » Sun 09 Nov 2008, 10:59:44

Starvid,

Both water and gas injection will increase ult recovery in any reservoir but at a wide range mostly dependent upon the nature of the rocks and the physical properties of the oil.

Uniform reservoirs with easily movable oil show the best increase. High permeable reservoirs with oil of low mobility often suffer from ""channeling": instead of the water pushing the oil it slips around the oil and moves quickly towards the producing wells. There are billions of barrels of oil stranded like this around the world. There are some complex methods to try to produce this oil but it’s early and I haven’t had my first coffee yet so I’ll skip those details.

I’m not familiar enough with Cantarell and Ghawar to offer a concise answer but there are some generalities that fit: pressure depletion reservoirs like Cantarell at times only recover 10 to 15% of the oil. The N2 injection may have increased ult recovery several times. That’s why PEMEX built the largest N2 production and injection system in the history of mankind on top of the field. Likewise the KSA may have increased recovery at Ghawar (and its other fields) by 50 to 100% with the water injection effort.

As far as poor application of good techniques I’ve heard stories of such about both fields. You can hurt ult recovery by producing wells to fast. This causes pressure sinks that pull the water/N2 quicker towards the producers and reduces ult recovery though it allows higher flow rates in the short term. For many years I’ve heard expats tell stories of such excessive rates especially in Ghawar. And when this happens much oil is left behind that could have been recovered had rates been produced. A tough call for all producers: make better cash flow in the short run or more over the life of the field.

I do know both PEMEX and the KSA have had some of the best reservoir modeling engineers in the world consult for them. They may not make it public but both have had a pretty good handle on the process. But I suspect both have sacrificed ult recovery by maximizing cash flow. With PEMEX I suspect there has been (and continues today) a huge political battle over that choice.
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Re: IEA's World Energy Report 2008

Postby AirlinePilot » Sun 09 Nov 2008, 12:51:34

$this->bbcode_second_pass_quote('OilFinder2', 'O')h please, spare me. Need I show you the poll I made late last year where the majority of the people on this forum expressed a desire for peak oil to occur soon? Or how about this one where the thread starter wanted it to happen and soon, as did others in the thread.

And you can't possibly say with any seriousness that none of you guys "embrace doom!" :lol: Embracing doom is practically the modus operandi of at least half this forum!! :lol:


You make assumptions based on your opinions and many times you will find that this is a flawed mthodology. Maybe I am in the minority but I truly do not want to see happen what I think is coming. It messes up my life WAY too much.

Your cherry picking data Oil and its evident to many of us. You have to weigh in from both sides and you are not. I'm choosing after many years of watching this, and working in the military and corporate world, to see the failures coming. Failures of planning, outright denial, and the results of greed. You are CHOOSING not to see.

As I commented earlier, your premise rests almost completely on maybe, might, could, hopefully. Mine rests on those who are willing to see the real trends, and while it still is possible that the folks I choose to believe are wrong, and I freely admit they may be, it sure doesn't appear that way if your honest with what your seeing. I do agree there are true doomers and they cherry pick data also, but its kind of easy to see that too. We have them here and they can be quite shrill, but I'm not one of them.

Your poll is just a humurous diversion on a forum and the folks who are arguing with you here about your corny fantasy most specifically do not embrace doom and do not hate oil. For crying out loud, Im an airline pilot!!! :shock:

If your placing any credibility on a poll in an online forum that's your first clue to how wrong you may be.
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Re: IEA's World Energy Report 2008

Postby copious.abundance » Sun 09 Nov 2008, 21:23:24

$this->bbcode_second_pass_quote('TheDude', '')$this->bbcode_second_pass_quote('OilFinder2', 'G')ive it up:
--> Petrobras CFO: 1M b/d from Tupi 'Not Out of Reach' <--


$this->bbcode_second_pass_quote('', 'W')ood Mackenzie analyst Matthew Shaw recently also said production at Tupi could peak at around 1 million barrels, but expects the field's output to peak only by 2022.

He calls Tupi "one of the most significant oil discoveries in the last 20 years," only surpassed by the 12.9-billion-barrel Kashagan field found in Kazakhstan in 2000.


If the delays are anything like Kashagan you'll see first oil in 2022. Forgot about the multiple phases at Tupi but don't really expect much from them anyway - 30 kb/d Pilot next year, 70 kb/d EPT the year after - then 200 kb/d in 2015. This is all baked into the Megaprojects cake.

"If the delays . . ." You are hoping for delays which you don't even know exist yet! Say, can I borrow that crystal ball which you seem to make extensive use of?

$this->bbcode_second_pass_quote('TheDude', '')$this->bbcode_second_pass_quote('', 'I')ncidentally, another problem with these graphs is the assumed continuation of trends (even if, for the sake of argument, we accept the past discoveries bars as accurate). They simply extrapolate recent trends and continue them on forever.


You call a 40 year trend "recent"? Take a look at my thread on EIA forecasts to see some really sagging forecasts. Why aren't we producing 91 mb/d now? The ROI for E&P is at all time highs.

Another change of topic . . .

The comment of mine you quoted was about discovery sizes over time, but then you have to change the topic to projected oil production rates? Do you have nothing to say in response to the comment, or do you have to incessantly change the subject?

As for the 40-year thing, I've already explained why the recent finds seem smaller. Do I need to explain it again?

But if it makes you happy, yes of course the giant oil fields which were discovered in the Middle East mostly around mid-century are going to bias the chart. So what? If those fields didn't happen to be discovered until, say, the 1980's, the chart would look a lot different.

$this->bbcode_second_pass_quote('TheDude', '')$this->bbcode_second_pass_quote('', ' ')It never occurs to them tthat there might be good, non-geological reasons why discoveries lagged for a few decades (such as, sufficient reserves gained from the 40's-70's era, low prices, etc.). And it also never occurs to them those reasons might not continue forever, and that the recent trends could be broken. But of course, the ASPO and other peakers like those charts because they hate oil (or like doom), so they continue to advertise them.


Like I said the price is right at the moment, and rigs are busy:

Image

The IEA doc addresses recent work:

$this->bbcode_second_pass_quote('', 'T')he volume of oil discovered each year on average has been higher since 2000 than in the 1990s, thanks to increased exploration
activity and improvements in technology, though production continues to outstrip discoveries (despite some big recent finds, such as in deepwater offshore Brazil).


Maybe it's because we're just not finding giant oil fields anymore?

ImageImage

ImageImage

Courtesy of that renowned oil hater Matt Simmons, from his paper THE WORLD’S GIANT OILFIELDS. Feel free to punch this up with current production. Only individual new field to bust 1 mb/d will be Khurais - discovered 51 years ago.
Yeah, Matt Simmons. We know how accurate his forecasts have been, lol! But I don't suppose he's been paying attention to my thread.
Stuff for doomers to contemplate:
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's World Energy Report 2008

Postby copious.abundance » Sun 09 Nov 2008, 21:28:44

$this->bbcode_second_pass_quote('AirlinePilot', ' ')If your placing any credibility on a poll in an online forum that's your first clue to how wrong you may be.

You're right AP, most peak oilers love oil, joyously celebrate every new giant oil discovery, are thrilled at technological increases which enable us to extract ever more oil from the world's oil fields, and jump in joy every time world oil production increases!

:lol: :lol:
Stuff for doomers to contemplate:
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's World Energy Report 2008

Postby GoghGoner » Sun 09 Nov 2008, 23:06:17

$this->bbcode_second_pass_quote('Tanada', '[')
Question, how are 'unconventional' oil fields and production plotted on this graph? If they are not both plotted then the graph is faulty, if they are both plotted however where are the Athabasca and Orinoco belt bitumen sands? Both represent tremendous potential reserves and both are currently being produced at a low rate.


Since the graph is titled "Conventional" I am going to say that unconventional sources are not esitmated. Reasons not to care about oil sands are low energy return, high cost, and low potential (so far). 2008 is showing a net decline in oil sand production -- after 40 years or so of production experience that is pretty hopeless.
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Re: IEA's World Energy Report 2008

Postby Homesteader » Mon 10 Nov 2008, 00:23:47

$this->bbcode_second_pass_quote('AirlinePilot', '')$this->bbcode_second_pass_quote('OilFinder2', 'O')h please, spare me. Need I show you the poll I made late last year where the majority of the people on this forum expressed a desire for peak oil to occur soon? Or how about this one where the thread starter wanted it to happen and soon, as did others in the thread.

And you can't possibly say with any seriousness that none of you guys "embrace doom!" :lol: Embracing doom is practically the modus operandi of at least half this forum!! :lol:


You make assumptions based on your opinions and many times you will find that this is a flawed mthodology. Maybe I am in the minority but I truly do not want to see happen what I think is coming. It messes up my life WAY too much.

Your cherry picking data Oil and its evident to many of us. You have to weigh in from both sides and you are not. I'm choosing after many years of watching this, and working in the military and corporate world, to see the failures coming. Failures of planning, outright denial, and the results of greed. You are CHOOSING not to see.

As I commented earlier, your premise rests almost completely on maybe, might, could, hopefully. Mine rests on those who are willing to see the real trends, and while it still is possible that the folks I choose to believe are wrong, and I freely admit they may be, it sure doesn't appear that way if your honest with what your seeing. I do agree there are true doomers and they cherry pick data also, but its kind of easy to see that too. We have them here and they can be quite shrill, but I'm not one of them.

Your poll is just a humurous diversion on a forum and the folks who are arguing with you here about your corny fantasy most specifically do not embrace doom and do not hate oil. For crying out loud, Im an airline pilot!!! :shock:

If your placing any credibility on a poll in an online forum that's your first clue to how wrong you may be.


+1
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Re: IEA's World Energy Report 2008

Postby TheDude » Mon 10 Nov 2008, 03:56:13

Regarding how fields are discovered, you might want to read about what Laherre terms the "Creaming Curve," that the largest fields are found first. That is , if you want to widen your knowledge a little, his conclusions run contrary to what you believe. One look at that rotary rig count graph should tell you that drillers haven't been sitting on their hands all this time, yet few big land based fields have shown up. Also with modern techniques like 4D seismic we likely have a much better idea initially of what a reservoir contains, contrary to your supposition that the OOIP would grow over time as knowledge of what a field contains is assessed.

I mentioned Kashagan for a good reason, it's a telling example of problems facing the future of production - such a huge field taking (at current projection) 13 years to be developed says a lot about the industry at the moment. Imagine wildcatters sitting on the East Texas until 1943. I'm much more interested in the concerns facing us than the soundness of Campbell's methodology for some graph, which of course isn't the focus of this thread, but oh well.

Simmons's paper was published in 2000, and is simply an accounting rather than some sort of ideological piece.
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Re: IEA's World Energy Report 2008

Postby Tanada » Mon 10 Nov 2008, 07:28:06

$this->bbcode_second_pass_quote('GoghGoner', '')$this->bbcode_second_pass_quote('Tanada', '[')
Question, how are 'unconventional' oil fields and production plotted on this graph? If they are not both plotted then the graph is faulty, if they are both plotted however where are the Athabasca and Orinoco belt bitumen sands? Both represent tremendous potential reserves and both are currently being produced at a low rate.


Since the graph is titled "Conventional" I am going to say that unconventional sources are not esitmated. Reasons not to care about oil sands are low energy return, high cost, and low potential (so far). 2008 is showing a net decline in oil sand production -- after 40 years or so of production experience that is pretty hopeless.


The problem with saying unconventional are not counted is my issue for a simple reason, based on the production curve the Canadian oilsands and all sorts of other smaller unconventional sources are added into curve. Oilsands from Canada contribute on the close order of half a billion barrels to that yearly total. At least it appears that way to me, the graph was not designed for fine detail and I am interpolating the visual as closely as I can. IIRC conventional peaked back in 2002 so the graph should show a plateau starting then instead of three years later if it only shows conventional production.
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Re: IEA's World Energy Report 2008

Postby JustaGirl » Tue 11 Nov 2008, 20:31:12

World needs four new Saudi Arabias, warns IEA

From the article..


$this->bbcode_second_pass_quote('', 'F')resh sources of oil equivalent to the output of four Saudi Arabias will have to be found simply to maintain present levels of supply by 2030, one of the world's leading energy experts has said.


So we still have 22 years, relax! /sarcasm


$this->bbcode_second_pass_quote('', 'I')n today's report, the IEA predicts that global oil production will increase from 85million barrels per day to 106million by 2030.

However, the bulk of this increase would need to come from costly unconventional fuels, such as liquefied natural gas, and the processing of bitumen-rich oil sands from northern Canada into synthetic crude.


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Re: IEA's World Energy Report 2008

Postby SweetSmellofMoney » Tue 11 Nov 2008, 23:29:08

I suppose it really is kind of irrelevant considering that within a 5 year time frame crude from the most part will have become obsolete as a fuel source.

Even as I watch the hype over crude demand and production reductions they to have become nothing more than hype by the Oligarcy Wizards of Oil!

Everyone in the know understands that Crude whether DME CME etc ... means little but that crude will continue to trend lower as demand and fears of proiduction cuts lead technologies to develope other means of alternative energy ie... Wind, Solar, Hydro etc...

We in fact may ind that OPEC likewise will become obsolete and a breakup will become a certain result.

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Re: IEA's World Energy Report 2008

Postby TonyPrep » Wed 12 Nov 2008, 04:02:43

$this->bbcode_second_pass_quote('VMarcHart', '')$this->bbcode_second_pass_quote('', '.')..enough to supply the world with oil for over 40 years at current rates of consumption.
No one is questioning that. There's enough oil to probably supply the world for 80 years. The big questions are, #1 at what price?, #2 who's going to control that last barrel?, and #3 then what after the last barrel?
You missed another big question, one which most certainly does cast doubt on such claims. Is it likely that production could stay at 85 mbpd for 40 years? If the IEA don't think it likely, the statement they made is completely and utterly pointless. One of the key issues is production rate, not some made up figure of current production over an estimate of reserves.

I'm amazed that anyone with a modicum of intelligence (such as IEA personnel) include such garbage in a serious report.
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Re: IEA's World Energy Report 2008

Postby TonyPrep » Wed 12 Nov 2008, 04:05:45

$this->bbcode_second_pass_quote('OilFinder2', 'B')lah blah blah.
I think Pilot's point is that you often invoke mights and maybes in an attempt to convince yourself that there is no problem with oil discovery or production.

However, you openly admit that you have no affection for proactive strategies to deal with limits, so it's unlikely you would ever advocate such.
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Re: IEA's World Energy Report 2008

Postby TonyPrep » Wed 12 Nov 2008, 04:18:47

$this->bbcode_second_pass_quote('Tanada', 'Q')uestion, how are 'unconventional' oil fields and production plotted on this graph? If they are not both plotted then the graph is faulty, if they are both plotted however where are the Athabasca and Orinoco belt bitumen sands? Both represent tremendous potential reserves and both are currently being produced at a low rate.
I think including unconventionals would make the graph confusing. The oil sands is a case in point. I can't remember how many hundreds of billions of barrels of OOIP there are, or how much is produceable, but if it is only produceable at 2 mbpd or 3 mbpd, it wouldn't be useful to include it in a graph of this kind, where the oil has a relatively high EROEI and is being used like there is no limit. If biofuels, for example, were included, it might give a false picture if half the "liquid" is consumed in the production of that liquid and how would you estimate the OOIP?
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Re: IEA's World Energy Report 2008

Postby TonyPrep » Wed 12 Nov 2008, 04:23:54

$this->bbcode_second_pass_quote('OilFinder2', '')$this->bbcode_second_pass_quote('TheDude', '')$this->bbcode_second_pass_quote('OilFinder2', 'G')ive it up:
--> Petrobras CFO: 1M b/d from Tupi 'Not Out of Reach' <--


$this->bbcode_second_pass_quote('', 'W')ood Mackenzie analyst Matthew Shaw recently also said production at Tupi could peak at around 1 million barrels, but expects the field's output to peak only by 2022.

He calls Tupi "one of the most significant oil discoveries in the last 20 years," only surpassed by the 12.9-billion-barrel Kashagan field found in Kazakhstan in 2000.


If the delays are anything like Kashagan you'll see first oil in 2022. Forgot about the multiple phases at Tupi but don't really expect much from them anyway - 30 kb/d Pilot next year, 70 kb/d EPT the year after - then 200 kb/d in 2015. This is all baked into the Megaprojects cake.

"If the delays . . ." You are hoping for delays which you don't even know exist yet! Say, can I borrow that crystal ball which you seem to make extensive use of?
Oh boy, first you quote some optimistic forecast for company production from the Chief Financial Officer of that company as though it is fact, and then chastise Dude for offering alternative views?

Do you actually read what you're writing?
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Re: IEA's World Energy Report 2008

Postby TonyPrep » Wed 12 Nov 2008, 04:26:34

$this->bbcode_second_pass_quote('OilFinder2', '')$this->bbcode_second_pass_quote('AirlinePilot', ' ')If your placing any credibility on a poll in an online forum that's your first clue to how wrong you may be.

You're right AP, most peak oilers love oil, joyously celebrate every new giant oil discovery, are thrilled at technological increases which enable us to extract ever more oil from the world's oil fields, and jump in joy every time world oil production increases!
OF2, you mistake a recognition of limits and a desire to address those limits for hate of oil. I know you don't want to address limits, so I guess this won't make much sense to you.
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Re: IEA's World Energy Report 2008

Postby ReverseEngineer » Wed 12 Nov 2008, 04:39:44

This particular debate is out of my depth for the most part, but I have a question to ask the participants.

Lets take it as likely that you won't see huge new oil fields developed, for any numebr of reasons already detailed here. However, is it not possible that stepwise demand destruction goes along at such a pace as to keep what is available and pumping in equilibrium for some time to come? Must we ABSOLUTELY postulate continuing demand increase?

It seems evident from the global economic slowdown that the demand for Oil is decreasing, to such a point in order to prop up the price, OPEC has to CUT production. NObody here I think would contend that with such cuts we can maintain our present standards of living, but heck if as a result of this everyone just cuts by half the amount of oil they are using, it should bring some balance to the system for a while at least.

So much oil usage has been sheer waste. It does not have to continue that way, either through government intervention or through the sheer pressures of the market, oil demand is being destroyed right now, and it will take a good while before it gets upped again. Assuming you let all the US Auto Makers go bankrupt, good grief the amount of oil you would NOT use in the production of automobiles is incredible. All oil leftover then to keep tractors running, and the nuber of trucks on the road and the railroads extant could keep moving the goods around for another 10 years anyhow. My own car is 20 years old, and probably good for another 5 if I keep it maintained.

So we do not really NEED to use the oil the same way, and though standards of living will be depressed and lots of new toys will not be produced, is it not possible that the powerdown motivates a new way of organizing society, around a more local and sustainable model? Why is this "impossible"?

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Re: IEA's World Energy Report 2008

Postby TheDude » Wed 12 Nov 2008, 05:11:23

$this->bbcode_second_pass_quote('SweetSmellofMoney', 'I') suppose it really is kind of irrelevant considering that within a 5 year time frame crude from the most part will have become obsolete as a fuel source.


I agree. Most of us will be walking. :razz:

By 2013 PHEV production may be up to 500k units/year, assuming GE is still solvent to produce the Volt. In the US alone you have 95 million solo driving commuters to provide for; Prius sales are down 4.3% this year. Automakers aren't going to crank out 20 million PHEVs for 5 years in the US, for one thing max auto sales total have never exceeded 18 million in a year. 2008 looks to be 13-14 million.

$this->bbcode_second_pass_quote('ReverseEngineer', 'S')o we do not really NEED to use the oil the same way, and though standards of living will be depressed and lots of new toys will not be produced, is it not possible that the powerdown motivates a new way of organizing society, around a more local and sustainable model? Why is this "impossible"?


Isn't. Conservation and rationing could save millions of barrels. Big spanner in the works of course is the economic displacement that occurs when so much discretionary driving ends; example I use with people is the zitfarms selling corn dogs in a mall's food mart. Who's going to drive to malls anymore, much less spend excess money while they're there? Buses go to these places as well but the added time in using MT will deter those who have little time to spare owing to family obligations and the like. People will pull through but so much service economy employment will fizzle out; this recession is chewing that up already with oil at major lows.
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Re: IEA's World Energy Report 2008

Postby ZombieMalthus » Wed 12 Nov 2008, 05:42:18

$this->bbcode_second_pass_quote('ReverseEngineer', '
')So we do not really NEED to use the oil the same way, and though standards of living will be depressed and lots of new toys will not be produced, is it not possible that the powerdown motivates a new way of organizing society, around a more local and sustainable model? Why is this "impossible"?


I don't think people spontaneously evolving to a sustainable society is impossible, but why would they want to? People need to be motivated to give up niceties. One example that comes to mind is WWII, where people did without so the war could be fought, but, well... that was a world war.

I would say the scenario you're describing is some sort of slow crash. Basically you're asking people to be content with lower economic output, job losses, etc.

To look at one aspect of your scenario: if GM *does* go into bankruptcy, common-wisdom has it that millions of jobs will be lost. That's a lot of anxious people looking for a job, and eventually anxious people become angry and start to protest, etc.

China has had some experience with this:

$this->bbcode_second_pass_quote('', 'C')hongqing is the world's fastest growing conurbation and has been the site of violence before. In November 2005, police put 20 strikers in hospital while breaking up protest against lay-offs by 10,000 workers from a state steel factory. In 2004 there was massive rioting after massive job losses were caused by the Three Gorges dam project.


China is not the U.S., though, so I'd imagine it'd take longer for the pot to boil here.

So if this IS a step-wise decline from here on out (not saying this is the one yet), then that's basically the beginning of the end. We'll either have a slow crash or a fast crash depending on how people respond.

As bad as the economy seems right now, I'd guess we'd coast for a while with business-as-usual. Probably see some flash-in-the-pan technological breakthroughs that are initially exciting, but don't scale and so are quickly forgotten.
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IEA World Energy Outlook 2008

Postby MrMambo » Wed 12 Nov 2008, 05:52:20

Today is the day many of us have been waiting for.

Will IEA present a 10% decline - rate of current oilfields?

If so they can say whatever else they want to sweeten it and make us focus on the demand destruction rather than imminent dramatic falls in oil production. But if they stick with the 10% decline-rate then the writing is on the wall.

The report will be available at their website today, either for money or for free:

http://www.iea.org/
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MrMambo
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