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Matt, you've ignored my email about how you misrepresent thermal depolymerization on your site. We can take it up here if you'd like.
Monte, JohnDenver and I are having a big long argument over whether coal to oil and thermal depolymerization are cheap, effectively scalable technologies that can give 40 mbd replacement by 2020. It's on the thread "Why Oil Alternative Fuels Will Fail." You should swing on over and get in on the action.
Here's a summary:
Based on the fact that 13 mbd production is slated to come online in 2007-8, that oil major ExxonMobil predicts a non-OPEC peak in 2010, that the french energy agency predicts a peak in 2012, and that the Saudis say there is no way they will meet demand in 2020, I'm guessing peak is 2012 or so. Rounded to 2010 to make it easier to work with.
Price will probably go somewhat higher than today, $80-100 barrel. It won't get higher than that because demand won't be there - several sectors of the economy would have to radically reorganize if it got more expensive, and no one can sit on years and years worth of oil because there's nowhere to store it (nor would governments let them). In addition, as I discuss below, there will be enough supply to prevent radical price spikes.
Based on the fact that a majority of insiders predict about a 2-4% decline, decline is set at 3%. Yes, some major fields are declining faster, but 1)some of them will probably be reattacked with tertiary extraction techniques 2)some of them are declining slower (U.S.<2%), and 3)new fields will still be being brought online, counteracting the fastest declining fields.
Based on 85 mbd today and another 13 mbd in 2007-8, we're going to get to at least 100 mbd in 2010. Probably a bit more, I rounded down again.
Monte cites EIA demand estimates of 120 mbd in 2020 by the EIA. I think this is a little high since they expect there will be plenty of oil and people won't find cheaper ways of doing things or even buy slightly more fuel efficient cars (and studies have shown consumer preferences alter radically when price hits $3-4/gallon, as it has in Europe).
I accept his number anyway. Demand in 2020 is 120 mbd, and supply, having declined year on year at 3%, is a bit more than 70 mbd. We need to make up 50 mbd over 10 years or so.
Oil sands and (probably not) shale combine for 5-10 mbd of production. No one's wanted to discuss this figure so far. Thermal depolymerization covers 20 mbd, and coal to oil covers 20 mbd (in reality probably one of these two will "win" the economic war and be used more heavily, but this is just an exercise).
From there, we look at the US specifically to make the numbers a bit easier to handle. We've given the US 1/3 of output capability (it's about 1/4 of the world economy, so this seems conservative). So the US will need 6 mbd from TD and 7 mbd from coal to oil.
Coal to oil: Looks profitable at $40/barrel, so it will be implemented. US has 250 billion tons of reserves. Mines 1 billion tons a year. 1 billion tons of coal, at 70% efficiency, gives 7 mbd oil (see JD's calculations). Nearly all of that 1 billion tons goes to 50% power generation. If gas (cliff in 2025, perhaps?) expands by 10% of power, and nuclear expands 10%, and renewables take up something like 5%, then coal mining needs to expand 40-60% over ten years. It's expanded 47% over the last 25, so this seems reasonable. Total price tag for these plants, including the most expensive power replacement option (all nuclear), has been calculated at $1.25 trillion/decade, or $125 billion/year. See the other thread for raw numbers.
TD: The EROEI of TD is 5.6, not .85 as you state on your site. With free feedstocks production is currently at $60-65/barrel. Price will probably come down with larger plants, but the plants will still be profitable with small plants and today's technology at $80-100/barrel. US has 4 billion tons of agricultural waste and 8 billion tons of industrial waste per year (these numbers won't go down dramatically, because things aren't going to crash, because oil prices will stay moderate). Rounding down, it's about 1 barrel/1 ton of waste, so we'd make about 12 Gby if we converted everything (some waste probably has no hydrocarbon content, but some of it has way more than 1 barrel/ton). We need 6 mbd, or about 2.5 Gby. We can easily cover that. Total cost for these plants has been calculated at $500 billion/decade, or $50 billion a year.
Can we pay $175 billion/year? The global energy industry was $3 trillion last year. That's about $750 billion/US. ExxonMobil alone made $25 billion on revenues of $300 billion, meaning that they personally spent $275 billion, or more than the total cost of these plants. And these plants will be profitable, so they will be funded by private capital. Even public spending of $175 billion/year would not be beyond the pale if it were necessary.
(As an aside, I looked at the steel industry at JD's request and determined that steel shortages for all of this building were highly unlikely - after all we are using steel that otherwise would have been used to build oil rigs or refineries, and steel demand has already peaked in most developed nations).
If we make it to 2020, we have bought more time to develop technology (We can probably buy 5 or even 10 more years with oil production technologies and improved efficiency cars - but you don't want twice the calculations, do you?

). At that point, plug-in hybrids will almost certainly be the standard car type, meaning most people won't burn any oil to commute everyday (indeed, something like 90% of trips are under 5 miles). Getting to a plug-in hybrid that covers 40-80 miles requires very few technological steps and no technological leaps. Since personal transport is almost exactly 2/3 of oil use, that's a huge savings. By 2030, it seems likely we'll either have good battery technology or have fuel cells working.
Electricity, of course, isn't really in play at all since oil is only 3% of our power generation.
Yes, the environment gets screwed in this scenario. Yes, negative cultural factors like suburban sprawl continue to mount unabated. These are bad things. But they are the things we need to focus our energies and efforts on, because oil is not going to bring society down.
1. "Generational" oil war in Iraq
2. A worldwide war on terror that will "last our lifetimes" that just so happpens to take place where lots of oil is
3. Federal government on it's way to bankruptcy (not directly related to peak oil)
4. Slow motion collapse of some of the biggest/most crucial and oil dependent sectors of the US (global) economy: automobile manufacturing and air transport
5. Relentless rise in energy prices.
6. Relentless rise in demand from Chindia
7. Major loss of topsoil and fresh water (both nonrenewable resources, as in we're not making more of either for all intents and purposes)
8. Catastrophic climate change being acknowledged as a major and imminennt (inside of 10-20 years) threat by everybody not currently in a permanent vegatative state.
9. Major possiblity that the Saudi royal family will be overthrown, which will result in one of two possibilities: they hit the button on their "Doomsday Plan" (if Posner is to be believed) or a bunch of people who hate America gain control of a significant portion of the world's oil supply. In either case, we get radical price spikes.
10. Possibliity of Iran being invaded by the US, instability in Venezuela, etc . . .
11. Leadership that is, shall we say, "less than inspiring."
When your "plan" actually starts reversing trends 1-11 in a tangible, discnernable, and readily verifiable fashion, I'll start responding to your emails. In the meantime, there is simply not enough time left for those of us who don't want to be completely 100% screwed by these things to waste debating why or why not thermal depolymerization, plug-in hybrids, and Pazoozoo are going to save our butts.
So while you "plug and play" with your numbers, I'm swinging over to gaim.com to get myself a spinning composter. (Sucker looks ideal for those of us who live in apartments, but I guess that should go in the personal prep sction)