Re: Peak OilTim Kreitz wrote:
> On May 21, 11:24 pm, Timberwoof <timberwoof.s...@infernosoft,com >
> wrote:
>> Basically, they're fucked. They will eventually have to scrap their
>> fatmobiles.
>
> Some food for thought on the peak oil myth by Irwin Stelzer:
>
> Another myth: we are running out of oil. According to
> WorldPublicOpinion.org "majorities in 15 of the 16 nations surveyed
> around the world think that oil is running out. . . . Only 22 percent
> on average believe that 'enough oil will be found so that it can
> remain a primary source of energy for the foreseeable future'." Those
> majorities who think we are running out of oil include 76 percent of
> the American citizens polled. Luckily, they are wrong.
>
> Production of oil is being constrained by several forces, none of them
> due to God's failure to put enough of the black gold under our feet.
> Several countries that are important sources of supply are in
> political turmoil, and unable to bring to market the oil they are
> currently capable of producing. Think Nigeria, where security problems
> have shut down about 20 percent of the nation's 2.5 million barrels of
> capacity, and discouraged new investment, and Iraq, where political
> paralysis and terrorists have kept production at less than half of its
> potential. Other countries will not develop the reserves of oil known
> to lie under their territories.
>
> Russia has made it clear that foreigners who invest in its oil
> industry might be playing a game with Vladimir Putin known as heads I
> win, tails you lose. Find nothing and you lose your money; find
> substantial reserves and the state squeezes you until your
> shareholders' pips squeak. Only companies at least 51 percent owned by
> Russians--read FOPs, Friends of Putin--are allowed to look for oil in
> the new, difficult areas in which it is to be found. Little surprise
> that Russian oil output dropped in the first quarter of this year.
>
> Mexico's President Felipe Calderon wants to revive Petroleos de Mexico
> (Pemex), the world's third-largest oil producer, by contracting with
> foreign companies to introduce modern methods of extracting more from
> existing fields and finding new ones. But legislation is stalled by
> left-wingers who have seized and are sleeping at podiums in both house
> of congress.
>
> Saudi Arabia's royal family has announced that it will not expand
> capacity. Abdullah Jum'ah, CEO of the kingdom's oil company, says that
> high prices don't mean the world needs more oil because such market
> signals are "imperfect," and Ali Naimi, the kingdom's energy minister,
> has announced that there are no plans to embark on a new round of
> expansion. The oil is there, but with current production yielding
> about $120 per barrel, there is no incentive to find more, especially
> since new production might drive down prices as demand for oil from
> the slowing American economy drops.
>
> Venezuela's oil industry can only be described as a mess. President
> Hugo Chávez's cronies are inadequate substitutes for the technicians
> they have replaced, so production is falling, while foreign investors
> are reluctant to trust hundreds of millions in exploration dollars to
> a regime that treats contracts as the first step in a negotiation.
>
> Here in America, Congress alternates between calls for "energy
> independence" and refusals to allow drilling in what it considers
> environmentally sensitive areas in Alaska and offshore California and
> Florida. There's more, but you get the idea. There is a lot of oil out
> there to be found and produced, not even including the vast reserves
> in Canada's tar sands. We might have reached the age of peak panic
> about oil supplies, but not of peak oil.
>
> One thing we think we know about the oil business is correct. High oil
> prices and the greenhouse gasses produced by using oil have important
> geopolitical consequences. These $100+ prices have led to a massive
> flow of wealth, and hence power, from consuming to producing
> countries. If oil were still priced at $20 or even $40 per barrel
> Russia would not have the wherewithal to revert to its bullying
> foreign policy, and America's banks would not be going hats-in-hand to
> Arab capitals in search of new capital. If gasoline prices had not
> closed in on $4 per gallon in the United States, thousands of SUVs and
> small trucks would not be sitting, unsold and unloved, on dealers'
> lots. If oil had not pierced the $100 per barrel level, and was not
> seen as a pollutant, the current enthusiasm for super-expensive
> nuclear power would not have reached a fever pitch.
Everything else I can agree with, but nuclear power? They are not in the
same category; they're not on the same playing field even. Implying that
oil has any influence on the acceptance of nuclear power is unfounded.
Nuclear power is a Good Thing, by the way.
> And if oil did not
> produce so-called greenhouse gasses when propelling cars and heating
> homes, there would be no massive subsidies for ethanol production,
> acreage would not be diverted from growing food to growing fuel, and
> the current run-up in food prices would be less steep, and food riots
> would not be breaking out around the world.
>
> So oil indeed matters. But not in the ways we most often think.
>
> Cheers,
> Tim Kreitz
> 2004 ZRX1200R
> 2003 ZX7R
> DoD #2184
> http :// www .timkreitz,com