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Survive Peak Oil: Oil and Gas: How Little Is Left
Survive Peak Oil: Oil and Gas: How Little Is Left.
Tuesday, February 4, 2014
Oil and Gas: How Little Is Left
“If we’re doing things like fracking, it just shows how little is left of all this stuff, and how desperate we are to get at it.” — Anonymous
Global production of conventional oil is past its peak and is now beginning its decline. A mixed bag of unconventional fuels (shale oil, tar-sands oil, natural-gas-liquids, etc.) is keeping the total on a slight rise or a rough plateau.
The hottest discussion in the US over the last few years has involved the fracturing (“fracking”) of shale to extract both oil and gas, but production by this method is already slowing or in decline. The costs of fracking are considerable, and so is the environmental damage.
The price of oil is still about $100 a barrel, far above that of the 1990s, in terms of both nominal and real dollars. The failure of the price to go down is an embarrassment to those who think unconventional oil is really solving any problems. But the high price is due not just to increased demand or to geopolitical risk. It is because of trying to squeeze oil out of places where it makes little sense to be squeezing.
The following data are “annual” and “global” and are from BP’s 2013 report unless described otherwise.
Laherrère: “The plots of these data start flattening in 2005, followed by a bumpy plateau. The post-2010 increase is mainly caused by the increase of liquids from US shale gas and US shale oil.”
Hughes: “. . . Politicians and industry leaders alike now hail ‘one hundred years of gas’ and anticipate the U.S. regaining its crown as the world’s foremost oil producer. . . . The much-heralded reduction of oil imports in the past few years has in fact been just as much a story of reduced consumption, primarily related to the Great Recession, as it has been a story of increased production.”
RATE OF SUPPLY; NET ENERGY
Hughes: “The metric most commonly cited to suggest a new age of fossil fuels is the estimate of in situ unconventional resources and the purported fraction that can be recovered. These estimates are then divided by current consumption rates to produce many decades or centuries of future consumption. In fact, two other metrics are critically important in determining the viability of an energy resource:
“• The rate of energy supply — that is, the rate at which the resource can be produced. A large in situ resource does society little good if it cannot be produced consistently and in large enough quantities. . . . Tar sands . . . have yielded production of less than two percent of world oil requirements.
“• The net energy yield of the resource. . . . The net energy . . . of unconventional resources is generally much lower than for conventional resources. . . .”
GLOBAL OIL PRODUCTION
For conventional oil, the peak annual global production was about 27 billion barrels, or about 73 million barrels per day. The peak date of production was about 2010.
BP shows global oil production still increasing in 2012, although much more slowly than before — an annual increase of about 1 percent between 2002 and 2012, as opposed to about 9 percent annually between 1930 and 2001. Laherrère’s Figure 10, on the other hand, shows an actual peak at 2010. The difference is due to the fact that the BP figures include unconventional oil (shale oil, tar-sands oil, natural-gas-liquids, etc.).
According to most studies, the likely average rate of decline of oil production after the peak date is about 3 or 4 percent, resulting in a fall from peak production to half that amount about 20 years after the peak. However, there is also evidence (Höök et al., June 2009; Simmons, 2006) to suggest that the decline rate might be closer to 6 percent, i.e. reaching the halfway point about 10 years after the peak.
Per capita, the peak date of oil production was 1979, when there were 5.5 barrels of oil per person annually, as opposed to 4.4 in 2012.
Laherrère: “The confidential technical data on [mean values of proven + probable reserves] is only available from expensive and very large scout databases. . . .
“There is a huge difference between the political/financial proved reserves [so-called], and the confidential technical [proven + probable] reserves. Most economists do not believe in peak oil. They rely only on the proved reserves coming from [the Oil and Gas Journal, the US Energy Information Administration], BP and OPEC data, which are wrong; they have no access to the confidential technical data. . . .
“The last [International Energy Agency] forecasts report an increase in oil production from 2012 to 2018 of 8% for Non-OPEC (+30% for the US) and of 7% for OPEC, which is doubtful. . . .”
US OIL PRODUCTION peaked in 1970 at 9,637 thousand barrels daily, declined in 2008 to 5,000, and rose in 2013 to 6,488.
NATURAL GAS PRODUCTION
GLOBAL GAS PRODUCTION rose from 2,524 billion cubic meters in 2002 to 3,370 billion cubic meters (95 trillion cubic feet) in 2012, an average annual increase of 3%.
Laherrère: “. . . [Global] production will peak around 2020 at more than [100 trillion cubic feet per year].” [emphasis added]
“Outside the US, the potential of shale gas is very uncertain because the ‘Not In My Back Yard’ effect is much stronger when the gas belongs to the country and not to the landowners. . . . Up to now, there is no example of economical shale gas production outside the US. The hype on shale gas will probably fall like the hype on bio-fuels a few years ago. . . .
US GAS PRODUCTION rose from 536 billion cubic meters in 2002 to 681 in 2012, an average annual increase of 2.5%.
Laherrère: “Natural gas production in the US, which peaked in 1970 like oil, is showing a sharp increase since 2005 because of shale gas. In 2011 unconventional gas production ([coal bed methane], tight gas and shale gas . . . .) was higher than conventional gas production . . . .
“This . . . leads to a peak in 2020 at 22 [trillion cubic feet] and the decline thereafter of all natural gas in the US . . . should be quite sharp. [emphasis added] The goal of exporting US liquefied natural gas seems to be based on very optimistic views. . . .
“The gross monthly natural gas production in the US has been flat since October of 2011, after its sharp increase since 2003, with only shale gas production rising. . . .” [emphasis added]
“Some claim that the US can export its shale gas as [liquid natural gas] even though conventional gas . . . is declining fast and will be quite small in just a few years.”
Hughes: “Shale gas production has grown explosively to account for nearly 40 percent of U.S. natural gas production; nevertheless production has been on a plateau since December 2011. . . . The very high decline rates of shale gas wells require continuous inputs of capital — estimated at $42 billion per year. . . . In comparison, the value of shale gas produced in 2012 was just $32.5 billion.”
TIGHT OIL (SHALE OIL) PRODUCTION
Laherrère: “Shale oil is now called light tight oil because the production in Bakken is not from a shale reservoir, but a sandy dolomite reservoir between two shale formations. . . . In Montana, production from Bakken is mainly coming from the stratigraphic field called Elm Coulee, which is decline since 2008. In North Dakota, production from Bakken has sharply increased.”
Hughes: “Tight oil production has grown impressively and now makes up about 20 percent of U.S. oil production. . . .More than 80 percent of tight oil production is from two unique plays: the Bakken in North Dakota and Montana and the Eagle Ford in southern Texas. . . . Tight oil plays are characterized by high decline rates. . . . Tight oil production is projected to grow substantially from current levels to a peak in 2017. . . . [emphasis added]
TAR-SANDS OIL PRODUCTION
Hughes: “Tar sands oil is primarily imported to the U.S. from Canada. . . It is low-net-energy oil, requiring very high levels of capital inputs (with some estimates of over $100 per barrel required for mining with upgrading in Canada). . . . The economics of much of the vast purported remaining extractable resources are increasingly questionable. . . .
NATURAL GAS PLANT LIQUIDS (NGPL) PRODUCTION
Laherrère: “World NGPL production . . . may peak in 2030 at over 11 [million barrels per day]. . . .”
OTHER RESOURCES
Hughes: “Other unconventional fossil fuel resources, such as oil shale [kerogen], coalbed methane, gas hydrates, and Arctic oil and gas — as well as technologies like coal- and gas-to-liquids, and in situ coal gasification — are also sometimes proclaimed to be the next great energy hope. But each of these is likely to be a small player. . . .
“Deepwater oil and gas production . . . would expand access to only relatively minor additional resources.”
CONCLUSIONS
Laherrère: “Peak oil deniers claim that peak oil is an unscientific theory, ignoring that peak oil has actually happened in several countries like France, UK, Norway. They confuse proved reserves with the [proven + probable] mean reserves. . . . It seems that world oil (all liquids) production will peak before 2020. . . The dream of the US becoming independent seems to be based on resources, but not on reserves.”
REFERENCES AND FURTHER READING
BP. (2013). Global statistical review of world energy. Retrieved fromhttp://www.bp.com/statisticalreview
Heinberg, R. (2013). Snake oil: How fracking’s false promise of plenty imperils our future. Santa Rosa, California: Post Carbon Institute.
Höök, M., Hirsch, R., & Aleklett, K. (2009, June). Giant oil field decline rates and their influence on world oil production. Energy Policy, Volume 37, Issue 6, pp. 2262-72. Retrieved fromhttp://dx.doi.org/10.1016/j.enpol.2009.02.020
Hughes, J. D. (2013, Feb.) Drill, baby, drill; Can unconventional fuels usher in a new era of energy abundance? Executive Summary. Post Carbon Institute. Retrieved fromhttp://www.postcarbon.org/reports/DBD-report-FINAL.pdf
Klare, M.T. (2012).The race for what’s left: The scramble for the world’s last resources. New York: Picador.
Laherrère, J. H. (2013, July 16). World oil and gas production forecasts up to 2100. The Oil Drum. Retrieved from www.theoildrum.com/node/10009
Simmons, M. R. (2006). Twilight in the desert: The coming Saudi oil shock and the world economy. Hoboken, New Jersey: John Wiley & Sons.
It’s Revocation or Revolution | project chesapeake
It’s Revocation or Revolution | project chesapeake.
By: Tom Chatham
The core of all the financial and moral damage done to the U.S. over the past few decades can be traced back to the abuse of federal powers by government officials at all levels. Government has slowly usurped the constitution by adding and interpreting powers it never had. The lack of education by recent generations has allowed this transformation to occur right in plain sight with little or no outcry. The government has enabled this complicity by the population by literally buying it. The sale of freedom and personal rights was never so cheaply bought.
The money changers and printers of false prosperity have stolen the physical wealth of the nation for decades and the end is in sight. The wealth many think they have will soon be revealed for the illusion it is. The savings of a nation have already been looted and now resides in the possession of others. The destruction of financial records and savings accounts will be the conclusion of this grand show of manipulation and outright theft.
The result will be unmitigated chaos and destruction as a nation of soft malcontents loses all of the distractions that keep them quiet and controlled. The masses will suddenly rush into the streets to acquire the things they need and no longer can afford. The final act of treason will be the elimination of the constitution and its protections as government seizes total control under the guise of saving the nation from itself. Most of the people will fall to their knees and hail it as a great event as government assumes the role of caring uncle.
A ruling body, regardless of the type , only has the power allowed to it by the people under its control. Even the threat of force will only carry a tyranny so far. When the people finally say no more, that effectively begins the reduction of the rulers ability to fully control a nation. Control is only possible when the majority comply and the rest can be coerced by the amount of force available to the ruler.
In the case of the U.S. the people must first come to the revelation that they have the power to revoke government power just by saying no. When the populace decides to revoke the legislative power granted to the federal government the federal power will then be limited to the amount of physical force it can project on the population. The current buildup of federal agencies is clearly a sign the federals know this eventuality will soon come to pass and they are preparing for it. If the people speak out in a unified voice before the preparations are complete the federals will have limited options. If the people do not voice their opinions in time there will only be one option left to them to restore the constitutional protections that is their birthright.
Unfortunately, the current disposition of the masses indicate that any collective act against government overreach is unlikely until it is too late leaving the final option to be utilized.
If revolution comes it will be born in the dark of night with a crash of the door as federals attempt to force their way into your home. Those that present the greatest threat to federal authority will be the first on the battlefield as they awake to the sound of a thundering hoard bearing down on them as they attempt to protect their families. These first few martars will be the alarm that activates the prepared masses for a long and bloody revolt.
The federals will likely take down the communications ability of the masses prior to military engagement to prevent the dissemination of information over long distances. Any type of grid failure or EMP type attack should be viewed as just such a signal to act.
The revocation of federal power at the state or county level is the only option to rebuke the federal position of lawlessness in a peaceful way. As a last line of defense, county governments revoking federal authority in their jurisdictions must be able to project sufficient force to back up their actions. A sufficient number of county governments revoking federal power will form the nucleus of a future resistance that will either grow to overwhelm federal control or succumb to federal forces and never rise again. The more territory a resistance element holds, the more federal forces it will take to subdue that area. The only way to remove federal control permanently is to force them to use more forces than they have, depleting their pool of manpower while eventually removing corrupt officials from office.
The tea party has noble goals but the attempt to replace federal officials is a futile gesture at this point. The federal levers of control have already been bought and paid for by those that are truly in control. The best that true patriots can do is to take back the nation one county at a time by installing a constitutional sheriff and county officials in local elections. Once enough counties are controlled the state level can be pursued. The majority of the population that sold itself into serfdom will resist any changes until they suffer sufficient pain and deprivation to make them want a change. This is the battle patriots are now fighting with various levels of success.
There is always a peaceful way to resolve most situations but that window is rapidly closing. Bismark may have been right. The great questions of the day will be answered not with speeches or majority votes, but by blood and iron.
The World Complex: A system doomed to fail
The World Complex: A system doomed to fail.
A system doomed to fail
The second are systems which are characterized by disorganized complexity. These may consist of huge numbers of agents or variables, and their interactions cannot be described by simple equations; yet the overall system is well-described statistically through averages and can be described as being stochastic. Such systems are typically characterized by a stable equilibrium, provided there are no external shocks to the system. They are incapable of generating internal shocks or surprises. For example, you might consider the distribution of air molecules in a room. You may not be able to predict the motion of any particular air molecule, but you can be reasonable certain that the global population won’t do anything unexpected (like all move into one side of the room leaving a vacuum on the other side).
The third type of system is characterized by organized complexity. As the systems above, one may consist of many variables or agents, each of which is simple, but the system’s behaviour does not lend itself to statistical description because instead of the activities of each component dissolving into a background equilibrium, large-scale (even global scale) structure “emerges” instead of seething chaos. Along with these “emergent properties”, common features of such a system include multiple equilibria, adaptive behaviour, and feedbacks. There is no simple way to describe its behaviour, as much of the system’s history is bound up in its behaviour (what economists call “long memory”).
Complex systems, for all their unpredictability are remarkably resilient. The resilience arises from the way in which this type of system interacts with its environment–through the individual actions of its simple components, the system is able to gather information about its environment and modify its operations to adapt. Yet this adaptation and evolution all occur in the absence of central control.
The above descriptions–and characterizations of three types of systems–go back to 1948. Unfortunately it appears that Dr. Weaver was too optimistic when he recommended science develop an understanding of the third type of system “over the next 50 years”. Here we are 65 years later and we have made only basic improvements in our understanding of such systems.
What has gone wrong? I think it is partly due to the limitations of the Newtonian paradigm on which science has rested over the past few hundred years.
Back to Weaver. He asks,
How can currency be wisely and effectively stabilized? To what extent is it safe to depend on the free interplay of such forces as supply and demand? To what extent must systems of economic control be employed to prevent the wide swings from prosperity to depression? These are also obviously complex problems, and they too involve analyzing systems which are organic wholes, with their parts in close interrelation.
The Fed has answered.
Sixty-five years ago, economics was known to be a complex, organized system. Yet today, the Fed continues to set policy as if the economy were a stochastic system that could be sledgehammered into whatever equilibrium state is deemed politically expedient. I would further argue that the Fed has not managed to succeed even in hammering the economy into a desirable equilibrium, but rather has mastered the ability to create artificial statistics to “justify” its actions.
The system is doomed to fail, because the resilience of natural complex systems requires freedom of action for its individual components. We do not observe resilient complex systems with central control. Yet central control is the dominant ideology of our present political and economic systems. Total control, with a vanishingly thin veneer of democracy, ephemeral as the morning dew.