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Uses and Costs of Substituting Natural Gas

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

Re: US Has Almost 100-Year Supply of Natural Gas

Postby TonyPrep » Sun 20 Dec 2009, 15:56:27

$this->bbcode_second_pass_quote('shortonsense', 'I')n either case, the graphs strike me as clear. Unconventionals have completely reversed the US production decline some years ago, and have been upward trending for better than 2 decades now on such gas.
Yes, the graphs are clear. The supply of gas to the end user has not yet fully recovered to the peak of over 30 years ago and, given the decline for much of this year, may never recover to that peak.

You're right that wellhead production of gas has recovered but that is definitely not the whole story. It's not just the flared off gas (which shouldn't be dismissed - why flare it off if you can sell it?), but all the other operational uses and cleaning that result in much less gas getting to the end consumer than was produced at the wellhead. That is the reality; it's not just some accounting trick.

After the low hanging fruit is picked, the net energy return gets less and less, and it gets harder to increase the usable supply.
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Re: US Has Almost 100-Year Supply of Natural Gas

Postby shortonsense » Sun 20 Dec 2009, 17:10:42

$this->bbcode_second_pass_quote('TonyPrep', '')$this->bbcode_second_pass_quote('shortonsense', 'I')n either case, the graphs strike me as clear. Unconventionals have completely reversed the US production decline some years ago, and have been upward trending for better than 2 decades now on such gas.
Yes, the graphs are clear. The supply of gas to the end user has not yet fully recovered to the peak of over 30 years ago and, given the decline for much of this year, may never recover to that peak.


You mean, "Yes, the graphs are clear. The supply of produced gas in America has fully recovered to the peak of over 30 years ago and, given the astronomical speed with which shale production can be ramped up to meet expected demand increases, and the size estimates of the resource involved, easily allays fears of shortage any time in the next 50 years."

Amazing what differing conclusions can be drawn from the same graphs.

In either case, so much for bell shaped curves or what unconventionals can't do, that rampup since the mid to late 80's is probably all unconventional.....2 decades of production increases, and only brought to an end because they did their job so well they crashed the price.

$this->bbcode_second_pass_quote('TonyPrep', '
')After the low hanging fruit is picked, the net energy return gets less and less, and it gets harder to increase the usable supply.


Net energy is, as mentioned previously, a criteria ignored by those doing the actual production of natural gas in America. Maybe after the next 100 years of supply winds down, our grandchildren can discuss changing the rules of economic development of natural gas to incorporate some pie-in-the-sky EROEI shenanigans, but the current rules certainly aren't changing in our lifetimes, if only because of the obviously economical nature of available resource. Tony, this stuff is EVERYWHERE in America, have you seen some of Oil's maps?
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Re: US Has Almost 100-Year Supply of Natural Gas

Postby TonyPrep » Mon 21 Dec 2009, 04:18:00

$this->bbcode_second_pass_quote('shortonsense', 'T')he supply of produced gas in America has fully recovered to the peak of over 30 years ago
Nope. Not the supply. For example, if gas is flared off, that doesn't get added to supply. If cleaning removes some of the gas, that removed gas doesn't get added to the supply. If some of the gas is returned to the production process, in order to produce more, then that operationally used gas doesn't become part of the supply. So, no, I meant what I meant. To put it in the way you did would be a lie and I'm not prone to such lies.

Supply has also trended down since March, so that previous peak may never be exceeded.$this->bbcode_second_pass_quote('shortonsense', 'A')mazing what differing conclusions can be drawn from the same graphs.
Indeed it is. A graph that shows actual supply not recovering to the previous peak can be interpreted by some as the actual supply having recovered to the previous peak. That is truly amazing.$this->bbcode_second_pass_quote('shortonsense', 'N')et energy is, as mentioned previously, a criteria ignored by those doing the actual production of natural gas in America.
I didn't say it wasn't. I was talking about the supply of gas to the end user.
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Re: US Has Almost 100-Year Supply of Natural Gas

Postby shortonsense » Mon 21 Dec 2009, 10:08:05

$this->bbcode_second_pass_quote('TonyPrep', '')$this->bbcode_second_pass_quote('shortonsense', 'T')he supply of produced gas in America has fully recovered to the peak of over 30 years ago
Nope. Not the supply. For example, if gas is flared off, that doesn't get added to supply.


Sure its part of supply....its part of the flared supply. Its part of the lineless supplied, its part of the compression supply. Limiting your definition of supply to "only gas delivered to an industrial or residential burner tip" is not the total supply.

And I'm not sure it matters....one number is higher than the last peak, one slightly lower. Good enough for hobbyist work, lets not forget Tony, NEITHER of those graphs are possible according to peak theory.

$this->bbcode_second_pass_quote('TonyPrep', '
')$this->bbcode_second_pass_quote('shortonsense', 'N')et energy is, as mentioned previously, a criteria ignored by those doing the actual production of natural gas in America.
I didn't say it wasn't. I was talking about the supply of gas to the end user.


Yeah, they don't care about EROEI either, they care about natural gas arriving at their furnace.
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Re: US Has Almost 100-Year Supply of Natural Gas

Postby mcgowanjm » Mon 21 Dec 2009, 12:25:39

$this->bbcode_second_pass_quote('shortonsense', '
')Sure its part of supply....its part of the flared supply. Its part of the lineless supplied, its part of the compression supply. Limiting your definition of supply to "only gas delivered to an industrial or residential burner tip" is not the total supply.


$this->bbcode_second_pass_quote('shortonsense', '
')And I'm not sure it matters....one number is higher than the last peak, one slightly lower. Good enough for hobbyist work, lets not forget Tony, NEITHER of those graphs are possible according to peak theory.


The total supply is irrelevant to drillers. They want their
fixed costs back in three years. And that depends on the price
of the day. Below $6.75, not doable. See EROEI for details.

$this->bbcode_second_pass_quote('TonyPrep', '
')$this->bbcode_second_pass_quote('shortonsense', 'N')et energy is, as mentioned previously, a criteria ignored by those doing the actual production of natural gas in America.
I didn't say it wasn't. I was talking about the supply of gas to the end user.


Yeah, they don't care about EROEI either, they care about natural gas arriving at their furnace.[/quote]

And yes, you're right here. Americans don't care about EROEI,
but wonder why they have no health insurance and their
mortgage is doubling next month.
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Re: US Has Almost 100-Year Supply of Natural Gas

Postby shortonsense » Mon 21 Dec 2009, 15:07:23

$this->bbcode_second_pass_quote('mcgowanjm', '
')The total supply is irrelevant to drillers. They want their
fixed costs back in three years.


Please reference your appropriate industry experience which allows you to make this statement.

Prudhoe Bays discovery well was in 1968. The field first produced in 1978.

Could you please explain, in light of your statement, why they decided to EVER produce a field which certainly, under NO circumstances, meets your 3 year criteria. Could it be because...no such criteria exists?

$this->bbcode_second_pass_quote('mcgowanjm', '
')And yes, you're right here. Americans don't care about EROEI,
but wonder why they have no health insurance and their
mortgage is doubling next month.


Good thing mortgages and health insurance are not the topic of the thread.
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Re: US Has Almost 100-Year Supply of Natural Gas

Postby shortonsense » Mon 21 Dec 2009, 15:21:47

$this->bbcode_second_pass_quote('pstarr', 'P')eaking natural resources display similar production curves, whether it be phosphate, natural gas, liquid petroleum, etc. a consequence of similar dynamics.


Please defend this statement in light of production rates of oil and natural gas in the United States. One peaked, and declined. One peaked, and declined....and began a multi decade rate increase to peak yet again.

I am assuming that when you say "similar", you mean something within the realm of our current reality of course.

$this->bbcode_second_pass_quote('pstarr', '
')The low-hanging fruit has been picked. The rest might as well rot on the ground or burn up the pretty sky.


The rest? Prudhoe Bay has never been low hanging fruit, and it has certainly been picked. The Orinoco heavy oil is low hanging fruit, and for its size, has not been picked at all. Are there any other incorrect generalizations I can help you clear up?
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Re: US Has Almost 100-Year Supply of Natural Gas

Postby TonyPrep » Mon 21 Dec 2009, 16:11:37

$this->bbcode_second_pass_quote('shortonsense', 'N')EITHER of those graphs are possible according to peak theory.
That's your belief, and an odd one at that. I've never thought that extraction of finite resources would exactly fit a smooth idealised curve, and I doubt even Hubbert thought that.
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Re: US Has Almost 100-Year Supply of Natural Gas

Postby TonyPrep » Mon 21 Dec 2009, 16:17:51

This forum was so much more adult like for a couple of weeks, with no (or very few) snide remarks and attempted put-downs.

BAU now. :-(
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Re: US Has Almost 100-Year Supply of Natural Gas

Postby shortonsense » Mon 21 Dec 2009, 20:21:33

$this->bbcode_second_pass_quote('TonyPrep', 'T')his forum was so much more adult like for a couple of weeks, with no (or very few) snide remarks and attempted put-downs.

BAU now. :-(


I am confused. Tony, if I insisted on a regular basis that 2+2=5, is there some forum etiquette that says it is a snide remark to point out otherwise? If I insisted that all Doomers were dieoff cheerleaders looking for an excuse to gun down their neighbor and steal his daughter for their post peak fantasy harem, is it unreasonable for one of the power-downers to note that such a broad generalization is ridiculous?

I certainly put down no one, but if people wish to claim some divine knowledge of industry practice, it seems reasonable to ask for a reference as to where such knowledge has been obtained. Or, if someone makes a generalization and claims that easy pickings are all that gets produced, is it snide to mention the obvious, i.e. that Prudhoe Bay is a fine example which disproves the concept?

I suppose if group harmony is the only consideration, we should immediately institute a LATOC type censorship rule and ban all people and posts who or which question any of the central tenets of our particular peak oil mythology. We would need to decide on which tenets we wish to incorporate into our sect of peak oil of course, but I would abide by the rules the same as everyone else.
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Re: US Has Almost 100-Year Supply of Natural Gas

Postby shortonsense » Mon 21 Dec 2009, 20:24:15

$this->bbcode_second_pass_quote('TonyPrep', '')$this->bbcode_second_pass_quote('shortonsense', 'N')EITHER of those graphs are possible according to peak theory.
That's your belief, and an odd one at that. I've never thought that extraction of finite resources would exactly fit a smooth idealised curve, and I doubt even Hubbert thought that.


Are you aware of any of Hubberts work where he envisioned, wrote about, commented on or derived an equation for a bimodal distribution to describe the production rate of any finite resource? I certainly am not familiar with any such work and would be grateful if you could provide such a reference, it would perhaps solve some of the issues presented in my "Shorts Argument Thread" as well.
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Re: US Has Almost 100-Year Supply of Natural Gas

Postby TonyPrep » Mon 21 Dec 2009, 23:39:04

$this->bbcode_second_pass_quote('shortonsense', 'N')EITHER of those graphs are possible according to peak theory.
I don't know what you think "peak theory" is but your comment is utterly pointless as I doubt anyone here assumes a smooth curve up or down.
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Re: US Has Almost 100-Year Supply of Natural Gas

Postby shortonsense » Tue 22 Dec 2009, 00:06:36

$this->bbcode_second_pass_quote('TonyPrep', '')$this->bbcode_second_pass_quote('shortonsense', 'N')EITHER of those graphs are possible according to peak theory.
I don't know what you think "peak theory" is but your comment is utterly pointless as I doubt anyone here assumes a smooth curve up or down.


I was trying to be specific. Do you have any pertinent references from Hubbert suggesting that he thought a multi peak profile was appropriate for any resource, anywhere, at any time?

I have no doubt that any given profile isn't guarenteed to be "smooth" however you might define that, but the natural gas production profile in the US has nothing to do with smooth, or not smooth, but multi peaked.

And as I have explained in the argument thread, it is critically important to the topic, versus "utterly pointless". But we can talk about that in the appropriate thread if you wish.

Here the topic is the 100 years of natural gas we have in America. How's New Zealand? You guys have a decent 100 year supply socked away like we do?
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Re: US Has Almost 100-Year Supply of Natural Gas

Postby TonyPrep » Tue 22 Dec 2009, 00:33:25

$this->bbcode_second_pass_quote('shortonsense', 'I') suppose if group harmony is the only consideration
It was never the consideration. There were plenty of disagreements in the previous two weeks. But it was still a very civilized discussion.

It was good while it lasted.
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Re: US Has Almost 100-Year Supply of Natural Gas

Postby jedrider » Tue 22 Dec 2009, 00:47:08

We have possibly 100 years supply of Natural Gas at current consumption levels!

Well, if true, that is nice but hardly sufficient as if our society cannot think more than 100 years ahead! Oh, you are going to tell me that no one thinks that far ahead anymore. True.

Anyway, replacing significant portions of coal use with natural gas to reduce greenhouse gases would be a good thing to do. Public transportation based upon natural gas must be practical at some point.

So much for 100 years. All this will do is make us want to prolong the oversumption party a little bit longer.
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Re: US Has Almost 100-Year Supply of Natural Gas

Postby shortonsense » Tue 22 Dec 2009, 00:53:44

$this->bbcode_second_pass_quote('jedrider', 'W')e have possibly 100 years supply of Natural Gas at current consumption levels!

Well, if true, that is nice but hardly sufficient as if our society cannot think more than 100 years ahead! Oh, you are going to tell me that no one thinks that far ahead anymore. True.

Anyway, replacing significant portions of coal use with natural gas to reduce greenhouse gases would be a good thing to do. Public transportation based upon natural gas must be practical at some point.

So much for 100 years. All this will do is make us want to prolong the oversumption party a little bit longer.


Natural gas powered public transport is already quite visible where I live, they run the buses on it. I wish I could acquire one of the Honda Civic GX's in my area, but they are not common. I plan on either the Leaf, Volt or the next gen Prius as my means of ratcheting down my dependence on liquid fuels in the next year or two.

I think those who have said that a peak oil solution is no particular technology or fuel have it right, the means of transport in any given area will rely on what works best. The shorter range electrics and hybrids will work for a majority of urban and suburbanites, but liquid fuels will continue to be hard to beat in more remote areas.
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Re: US Has Almost 100-Year Supply of Natural Gas

Postby TonyPrep » Tue 22 Dec 2009, 05:02:30

$this->bbcode_second_pass_quote('shortonsense', 'I') have no doubt that any given profile isn't guarenteed to be "smooth" however you might define that, but the natural gas production profile in the US has nothing to do with smooth, or not smooth, but multi peaked.
Any data that represents real world extraction will have multiple peaks. The only non-smooth prediction of the future that I've seen is from CERA, which claims to know how oil production will vary from year to year, over the next 30 or 40 years. Future graphs tend to be smooth, showing a general trend. Historical graphs will exhibit multiple peaks (i.e. points that stick up from the surrounding data points).

I'm not denying that US natural dry gas production got close to its 1970's peak, in March this year and exhibited a long upward trend to get there, but I doubt that any "peak theory" would prohibit multiple peaks, hence my comment that your comment was completely pointless. It was no doubt made to be mocking of others.
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Re: US Has Almost 100-Year Supply of Natural Gas

Postby shortonsense » Tue 22 Dec 2009, 10:03:38

$this->bbcode_second_pass_quote('TonyPrep', '')$this->bbcode_second_pass_quote('shortonsense', 'I') have no doubt that any given profile isn't guarenteed to be "smooth" however you might define that, but the natural gas production profile in the US has nothing to do with smooth, or not smooth, but multi peaked.
Any data that represents real world extraction will have multiple peaks.


Let alone Hubbert never saying this, do you have any reference where anyone else has claimed that a multi modal profile is the expected result of production of a finite resource?

$this->bbcode_second_pass_quote('TonyPrep', '
')I'm not denying that US natural dry gas production got close to its 1970's peak, in March this year and exhibited a long upward trend to get there, but I doubt that any "peak theory" would prohibit multiple peaks, hence my comment that your comment was completely pointless. It was no doubt made to be mocking of others.


Then you misunderstand my intent. I simply want to know where the originator of the theory said anything remotely resembling what you are claiming in his stead.

Hubbert said natural gas production in the US would peak back in the 70's. It did. Hubbert did not say that the production decline would be reversed a decade later to achieve, or nearly achieve, a peak of the same size as the original nearly 40 years after the first one. It strikes me that this claim would literally stand the peak oil theory on its head by doing away with the very relevance of any peak, at any time, being meaningful.

If multi modal peaks are expected, as you appear to be claiming, then peak conventional in 2005 or peak all liquids in 2008 is completely irrelevant, we can just wait around another decade, or two, or three, or four, until the next one arrives, and continue happily on our way to ever higher production rates.
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