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A bleak picture as oil production slides

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

Re: A bleak picture as oil production slides

Unread postby hardtootell-2 » Mon 05 Oct 2009, 01:24:47

While I agree that moderates do have a lot of legitimate perspectives, there are too many wild cards that could be dealt. The geopolitical and economic risks have not been effectively mitigated and IMHO will come into play, perhaps soon- no one knows.
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Re: A bleak picture as oil production slides

Unread postby thuja » Mon 05 Oct 2009, 01:33:44

A moderate here does not mean no doom-

It just does not mean insta-mega-doom. Those guys need to recede to the far background in my opinion. The Roccmans, etc. Thank God he's gone. He owned this site when oil pushed 150/barrel. Haven't seen him for a while and good riddance- gives this place a bad name.

Hate to say it but MonteQuest was theintellectual force behind insta-mega-doom and rallied quite a few troops behind him and most of y'all are still here.

How about just descending into good old fashioned penury and drudgery. Is that too much for a moderate to ask?

Do 5 billion people really have to die in the next few years to satisfy this clouded bunch of ignorami who took over this site with their misguided rantings...
No Soup for You!!
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Re: A bleak picture as oil production slides

Unread postby Plantagenet » Mon 05 Oct 2009, 01:43:10

$this->bbcode_second_pass_quote('shortonsense', 'T')he world was supposed to end with the peak...


Actually no. The peak is the maximum level of production of oil. Things are good at the peak.

The problem comes when oil production declines after the peak. Latest estimates are that global oil production might decline anywhere from 3-5% or more per year.
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Re: A bleak picture as oil production slides

Unread postby Sixstrings » Mon 05 Oct 2009, 01:45:21

$this->bbcode_second_pass_quote('mos6507', 'W')hen I went to the Boston Peak Oil site I contacted one of the members here to see if he/she wanted to get involved in a local Transition initiative. That member told me he/she was unemployed and too busy looking for new work.

If peakers are too consumed with navigating through the credit crisis then how can we expect anyone else to be interested?


I dunno, maybe you'll know we've passed peak when peak oilers no longer care about peak oil because they're too busy trying to survive?
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Re: A bleak picture as oil production slides

Unread postby Plantagenet » Mon 05 Oct 2009, 01:56:13

$this->bbcode_second_pass_quote('mos6507', '
')If peakers are too consumed with navigating through the credit crisis then how can we expect anyone else to be interested?


I predict that when supply tightens and oil prices spike up again people and governments will be very interested indeed.

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Re: A bleak picture as oil production slides

Unread postby mos6507 » Mon 05 Oct 2009, 02:09:51

I predict in the next price spike we'll see the return of "drill baby drill" and continued blame on speculators, greedy oil companies not working hard enough, rogue states who won't give us their oil, etc...

I don't know what it's going to take to get people to believe in geological limits, but never underestimate people's ability to rationalize the data to mean whatever they want it to mean.

I mean, we still to this day have a highly vocal blogosphere of global warming deniers. They may have largely shifted from "nothing's wrong" to "it's not our fault so let's not do anything", but they are still denying.

I have no doubt there will still be deniers blaming "librulz" when we're stuck eating soylent green.
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Re: A bleak picture as oil production slides

Unread postby TWilliam » Mon 05 Oct 2009, 02:13:43

$this->bbcode_second_pass_quote('AirlinePilot', 'G')ood post mos.

I tend to agree with some of what your saying and I 'get" how it sure seems that its taking quite a while for things to get ugly. I'd submit we are all in the 'boiling frog" pot right now. We are living it. Its not dire or serious yet but that's because a lot of us understand that it will take time for the downward spiral to accelerate. I don't hold out a lot of hope at this point since I believe personally that we are past the point of mitigation. I do believe that its going to be bad, but in a Long Emergency way, rather than some swift Mad Max scenario.

Remember also that as we move forward the past becomes clearer. Yes a lot of doomer calls have been made and proven wrong. But we are getting a better handle on things with time and more focus from more people who are concerned about the problems. I sense we are at or very near the peak and it will take a few years before the true effects are felt. Until then the latest crisis is a more important and pressing issue so Po takes a back seat. I don't think we'll have to wait very long for another bout of energy related problems to come along and remind us what a huge issue passing the Peak of World Oil production will be.

I've noticed that the concept of systemic inertia (and its relevance to both the corny and uber-doomer sides of the debate) seems foreign to most folks...
"It means buckle your seatbelt, Dorothy, because Kansas? Is goin' bye-bye... "
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Re: A bleak picture as oil production slides

Unread postby IslandCrow » Mon 05 Oct 2009, 04:05:35

Thanks mos for that write-up and the link to the Oildrum article.

I find myself in the "End of Growth Group", and in Thuja's terms am a 'moderate'. One of the earlier articles that struck a deep impression on me was from ASPO, where it outlined stages of reaction. At the time I started working on changes for a PO world I felt that some of the time lines were a little pessimistic but in my planning I took them as 'taget dates'. I am glad to say that thinks have not been as bad as the worse case with the early stages taking a bit longer than outlined below.

The value of this is that it gave me a framework (or outline) of how I might plan, but I do not have to follow it as prophecy - actually I review it periodically and adjust my expected time frame against projects I am working on (eg paying of the mortgage, better house insulation).


From ASPO newsletter 52 (http://www.peakoil.net), downloaded 2005

$this->bbcode_second_pass_quote('', '5')30 Reacting to terminal illness
Brian Regan makes a telling comparison, commenting as follows:

It has occurred to me that Elisabeth Kübler-Ross' "grief cycle," initially discovered by her as the typical path of a patient’s reaction to the unwelcome news of terminal illness, might also be applied to the end of cheap, suitable oil. I am listing it here, with my own guesses (in parentheses) about the reactions to peak oil, and some conjectures respecting the time frames of such reactions. I think it sums up much that has been written about the future effects of the phenomenon.

Shock Stage
Initial paralysis at hearing the bad news. (Inability to relate the prospect of growth cessation to anything in past experience.) ca. 2000

Denial Stage
Trying to avoid the inevitable. (Rigid refusal to accept the outlandish notion that cheap oil of the right kind will end soon.) 2000-2007

Anger Stage
Frustrated outpouring of bottled-up emotion. (Outrage at "Big Oil," Saudi Arabia, China, government taxation, etc.) 2005-2009

Bargaining Stage
Seeking in vain for a way out. ("Throw the bums out" by electing new leaders, heavy investing in expensive alternatives, calls for "science" to save us, expecting a deus ex machina.) 2008-2012

Depression Stage
Final realization of the inevitable. (Even flat-earth economists surrender, presidential politicians state facts publicly, businesses begin collapsing in droves, return of the Great Depression foretokens collapse.) 2011-2015

Testing Stage
Seeking realistic solutions. (National impoverishment forces abandonment of socialist policies and international development aid, various alternative-energy schemes tested and most abandoned, local farming grows, large cities wither, beginnings of martial law to keep order, interregional conflicts.) 2013-2025

Acceptance Stage
Finally finding the way forward. (War, collapse.) 2018-2075
We should teach our children the 4-Rs: Reduce, Reuse, Recycle and Rejoice.
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Re: A bleak picture as oil production slides

Unread postby Tanada » Mon 05 Oct 2009, 07:43:28

$this->bbcode_second_pass_quote('pstarr', 'D')uring a cheap energy regime political and economic factors play the greatest role in primary (oil field) energy production. It matters little whether the Spindletop gusher has an eroei of 100:1 or 50:1. Most of the resulting fuel makes it to the consumer.

However as energy becomes more difficult to extract, more of the final product, (i.e. refined gasoline and diesel) must be returned to the production system as an energy cost of doing business. So for example, the sizable energy investment required of an unconventional fuel like tar sands (it has an eroie of only around 6:1) becomes a critical bit of information that should guide profit expectations and investment. In this case 16% of the production is essentially lost to the heavy mining equipment, natural gas upgrading and water processing and renders economics (if not the horrendous environmental consequences) difficult at best. Hence the essentially stagnant production profile out of Alberta.


Firstly most people would consider 6:1 return excellent in almost any field of investing, you make it sound like the end of the world. Truthfully I don't see EROEI becoming much of an issue until it falls below the 2:1 rate, and even then if a non fossil energy source like Wind or Nuclear is used to provide the input it is going to stay profitable for the money people who invest and keep things moving.

Secondly THAI and its advanced versions have a much better EROEI than the method you site of digging up the sand, hauling it around and processing it, and almost all of the energy input for THAI comes from the bitumen itself. So long as the technology remains in place THAI will be the wave growing in size in all the "tar" sands around the world, and also in heavy oil fields like those in Venezuela.

Thirdly people seem IMO to be missing the real point. So world demand dropped from 82 Mbbl/d to 77 Mbbl/d due to the recession. What does that gain us, really? Saving 5 Mbbl/d and consuming 77 means we extend world oil supplies 15 days every year the recession lasts. Gosh that is such a lode off my mind! Worse then that with the lower profit coming in the national oil companies are not investing in more production, so if the economy ever picks back up or we confirmedly go over the peak supplies are going to get very tight very quickly in international oil markets.
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To strive, to seek, to find, and not to yield.
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Re: A bleak picture as oil production slides

Unread postby mos6507 » Mon 05 Oct 2009, 08:59:13

$this->bbcode_second_pass_quote('Tanada', '
')So world demand dropped from 82 Mbbl/d to 77 Mbbl/d due to the recession. What does that gain us, really? Saving 5 Mbbl/d and consuming 77 means we extend world oil supplies 15 days every year the recession lasts.


If you are saying demand destruction wasn't that big, then shouldn't we be seeing oil hover around $100-125/bbl? It's my opinion that the current oil price, since it's been around this range for some time now, generally reflects supply and demand. So you can infer from that, that the runup last year WAS in fact largely speculation-driven as the fateful 60-minutes piece said.

If that's the case, then it wipes away the majority of peak oil analysis that was put forward during the runup as inaccurate and alarmist.

What it also means is that another superspike will (regulations withstanding) also be speculator-driven and not sustainable. The actual averaged oil price will therefore go up more gradually.
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Re: A bleak picture as oil production slides

Unread postby shortonsense » Mon 05 Oct 2009, 09:09:15

$this->bbcode_second_pass_quote('mos6507', '
')But after last year I have really turned the corner with my peak oil guru worship. I don't necessarily take any Oil Drum analysis, Energy Bulletin blog, etc... as gospel.

I would advise everyone to temper their tendency to rally around some kind of group-think narrative about how and when this is going to play out.


Good synopsis Mos, quite excellent.
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Re: A bleak picture as oil production slides

Unread postby shortonsense » Mon 05 Oct 2009, 09:15:54

$this->bbcode_second_pass_quote('pstarr', '')$this->bbcode_second_pass_quote('shortonsense', '
')Crude oil was more expensive in 1900 than it was in 1930. Are you honestly trying to claim that Spindletop, born into a more expensive oil era than East Texas, was an impossibility because of this EROEI nonsense, and those oil boys were just too stupid to notice? Because I can assure you, both were developed, regardless of EROEI at the time, and regardless of their relative difference in real prices of crude at the time.
Spindletop Expensive? By what measure? I'm quite certain that petroleum was less than $70/barrel then.


How many years have you been posting while ignoring enough of the basics that you aren't even familiar with the basic references?

Spindletop and the Lucas gusher happened in about 1901. East Texas was discovered in about 1930. Crude oil when the Lucas gusher happened, in 2003 dollars, was $25/bbl. In 1930, when East Texas was discovered, it was half that. Ref: Hirsch 2005 DOE report. Crude was expensive in 1900 compared to 1930, and EROEI was irrelevant during both time periods.
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Re: A bleak picture as oil production slides

Unread postby shortonsense » Mon 05 Oct 2009, 09:18:26

$this->bbcode_second_pass_quote('mos6507', '
')So now we're at a point in time when The Oil Drum is even thinking about calling it quits.


A quote from them.


"Finally, I think 'Peak Oil' has eponymously outlived its usefulness. Too many now associate doom, gloom and fundamentalism when they hear those 2 words."

"Fundamentalism" being a critical word in that sentence, and quite revealing about the religious aspects of the groupthink involved.

I think when Robert R. recently posted about how the crackpots have taken over is another reasonable point as well.
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Re: A bleak picture as oil production slides

Unread postby shortonsense » Mon 05 Oct 2009, 09:19:59

$this->bbcode_second_pass_quote('AirlinePilot', '
') This is really getting old Short. Do you honestly believe that any of us who understand what PO means give you any credibility whatsoever?

Your a joke.


And yet Mos, in his summary, did a quite reasonable job of showing WHY such things, when thought about in an objective manner, really matter.
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Re: A bleak picture as oil production slides

Unread postby shortonsense » Mon 05 Oct 2009, 09:22:49

$this->bbcode_second_pass_quote('Plantagenet', '')$this->bbcode_second_pass_quote('shortonsense', 'T')he world was supposed to end with the peak...


Actually no. The peak is the maximum level of production of oil. Things are good at the peak.

The problem comes when oil production declines after the peak. Latest estimates are that global oil production might decline anywhere from 3-5% or more per year.


Some would disagree. Note that Lundberg claims the timeframe these shortages and global gridlock will happen in is measured in DAYS.

http://www.bluegreenearth.us/archive/ar ... -2005.html
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Re: A bleak picture as oil production slides

Unread postby Maddog78 » Mon 05 Oct 2009, 09:38:39

$this->bbcode_second_pass_quote('pstarr', '')$this->bbcode_second_pass_quote('shortonsense', '')$this->bbcode_second_pass_quote('pstarr', '')$this->bbcode_second_pass_quote('shortonsense', ' ')MadDog has already verified for us its consideration in relation to the modern oil and gas business.
This is not true.


MadDog has ventured his professional opinion on the metric used to judge which projects should be done, and EROEI was not included. You have been asked to provide your professional experience on the same topic, and never said a word. Have you suddenly gone out and acquired some oil and gas experience to refute what a professional in the field has already provided? :roll:
This is an appeal to authority and not an argument. I have no idea what MadDog's professional credentials are. Do you? How are they specifically relevant to discussions of peak-oil mitigation?


This shit again. I really don't feel like repeating myself over and over again on this so another quick sum up.
Try and get the best grip you can on all the economic variables.
If it can make money the project goes ahead. I have never heard EROEI mentioned in a project planning meeting, quarterly budget review meeting or hell, even around the coffee pot for that matter.
I'll tell you what, if I ever hear someone mention it in the office, be it a junior engineer or the v.p. of exploration, I'll be sure to let you know here.
I'm not going to ever mention it first. Don't want to be laughed out of the room. :-D
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Re: A bleak picture as oil production slides

Unread postby SeaGypsy » Mon 05 Oct 2009, 09:47:43

$this->bbcode_second_pass_quote('shortonsense', '')$this->bbcode_second_pass_quote('mos6507', '
')So now we're at a point in time when The Oil Drum is even thinking about calling it quits.


A quote from them.


"Finally, I think 'Peak Oil' has eponymously outlived its usefulness. Too many now associate doom, gloom and fundamentalism when they hear those 2 words."

"Fundamentalism" being a critical word in that sentence, and quite revealing about the religious aspects of the groupthink involved.

I think when Robert R. recently posted about how the crackpots have taken over is another reasonable point as well.


Intellectually pissweak article about brand popularity. The truth has ups and downs in the polls but remains the truth. Moss has been trying to disconnect current market reality and the bank colapse from P.O. for quite a while. Maybe TOD has been listening? Anyway a lot of us here think that's crap and there is a direct and obvious link between peak oil, peak pricing, peak growth and peak debt. If TOD want to pussy fart around after being screwed over by a bunch of PC jerks, it's just another Greenpeace kind of hippy revenue raising to support wilderness warriors kind of thing. If that's what they think the value of peak oil is they can rack off and let the adults continue the discussion.
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Re: A bleak picture as oil production slides

Unread postby Pops » Mon 05 Oct 2009, 10:34:26

Thanks for the link to the Oil Drum.

I'm kind of surprised people think expensive energy is not really so much of a problem as is a bad economy. What was it hey thought made talking about "constrained" supplies important?

"Peak Oil" has always been about the economy.
$this->bbcode_second_pass_quote('5 years, 6 months and 2 days ago Pops', 'I') don’t believe there will be an oil “crash” soon, but there certainly could be an economic crash as the cost of oil and virtually everything else begins its inevitable rise. That is the wild card; how long do we have to prepare before the cost of preparing is out of reach or the necessities unavailable?

I think it was in my first post here I stated I thought the "Peak" would someday be seen as the time from '98-'08 and that talk of the "if and when" wasn't as much my focus as the What Next.

The current economic situation is the more about habits gained with the help of cheap energy for a couple of decades but if you think the additional $1,800 or whatever the number, spent last year by J6P on energy, plus all the other end products impacted by the Commodity Bubble aren't a big factor I think you are wrong.

Regardless, the result is the same, the U6 unemployment rate is 17% and doesn't look to be improving much anytime soon. For the many who are looking for some way to come up with next months grocery money the last thing they want to think about is that their line of work might just be at a dead end.

But that was my point 5 years ago.
The legitimate object of government, is to do for a community of people, whatever they need to have done, but can not do, at all, or can not, so well do, for themselves -- in their separate, and individual capacities.
-- Abraham Lincoln, Fragment on Government (July 1, 1854)
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Re: A bleak picture as oil production slides

Unread postby mcgowanjm » Mon 05 Oct 2009, 10:49:18

$this->bbcode_second_pass_quote('', 'I')ntellectually pissweak article about brand popularity. The truth has ups and downs in the polls but remains the truth. Moss has been trying to disconnect current market reality and the bank colapse from P.O. for quite a while. Maybe TOD has been listening? Anyway a lot of us here think that's crap and there is a direct and obvious link between peak oil, peak pricing, peak growth and peak debt. If TOD want to pussy fart around after being screwed over by a bunch of PC jerks, it's just another Greenpeace kind of hippy revenue raising to support wilderness warriors kind of thing. If that's what they think the value of peak oil is they can rack off and let the adults continue the discussion.


I'm tellin' ya. TOD wanted to hear nothing I had to say.

Like this:

Cantarell has dropped to 500,000 bpd. That's a loss of
2 MMBD in 4 years.
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