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Strelnikov_ Donating Member (1000+ posts) Send PM | Profile | Ignore Thu Nov-01-07 09:47 AM
Original message
Total Chief Warns On Oil Output
http://www.ft.com/cms/s/0/b0d83bfa-87df-11dc-9464-0000779fd2ac.html

The world’s capacity to produce oil will fall well short of official forecasts, the chief executive of Total warned on Wednesday. In an unusually stark prediction for the head of one of the world’s biggest oil companies, Christophe de Margerie, CEO of the French group, said it would be difficult to reach even 100m barrels a day.

The International Energy Agency, the rich countries’ watchdog, in its “business as usual” projections, has said oil supply will reach 116m barrels a day by 2030, up from about 85m b/d today. The US government has a similar forecast of 118m b/d in 2030, including a relatively small contribution from biofuels.

Mr de Margerie, however, said while forecasts could always change, “100m barrels per day . . .is now in my view an optimistic case”. He added: “It is not my view: it is the industry view, or the view of those who like to speak clearly, honestly, and not . . .just try to please people.”

. . .

“100 is difficult, because in the 100 you have already additional production in Iraq, in Venezuela, in Nigeria; you have additional production everywhere. And we know that today those developments are not under way,” he said.



IEA Reviews Reliance on USGS Resource Estimates

http://www.davidstrahan.com/blog/?p=69

IEA chief economist Fatih Birol has told lastoilshock.com that the agency will review its use of resource estimates from the United States Geological Survey, in a move that seems certain to prompt a major downward revision of its long term oil production forecast.

Amid a growing consensus that global oil production will peak by around the end of this decade, the International Energy Agency’s forecast that world output will reach 116 million barrels per day in 2030 has looked increasingly isolated, particularly now that its latest Medium Term Oil Market Report - produced by a separate forecasting team - predicts an oil “supply crunch” in 2012.



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gasperc Donating Member (1000+ posts) Send PM | Profile | Ignore Thu Nov-01-07 09:50 AM
Response to Original message
1. So, let's GET OFF OIL instead of this panic bullshit
to con us into accepting $5 gas, and $200/barrel oil.

We the people have way more power than we think, let's start using it.
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Viva_La_Revolution Donating Member (1000+ posts) Send PM | Profile | Ignore Thu Nov-01-07 10:10 AM
Response to Reply #1
2.  the people are not ready to change their whole lifestyle
Alternative energy sources will only provide a fraction of our current use.
The most important things anyone can do is conserve, conserve, conserve. We have to re-learn how to live with-out 90% of the energy we use.
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thunder35 Donating Member (127 posts) Send PM | Profile | Ignore Thu Nov-01-07 10:28 AM
Response to Reply #2
3. quit building in the far out areas
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GliderGuider Donating Member (1000+ posts) Send PM | Profile | Ignore Thu Nov-01-07 10:32 AM
Response to Reply #2
5. I think 90% is a bit extreme.
I've just completed a methodical, though necessarily speculative, projection of global energy supplies, http://www.paulchefurka.ca/WEAP2/WEAP2.html">World Energy to 2050. I conclude that the we'll lose 30% of our total energy by then. The majority of that loss will be oil and natural gas, which combined may decline by 75% or a bit more. Given the added contributions of solar and wind, and the continued performance of coal, hydro and nuclear power, overall energy supplies will decline by only about 30%. Unfortunately, that 30% robs us of most of the transportation and heating fuels we use today.



Paul Chefurka

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Viva_La_Revolution Donating Member (1000+ posts) Send PM | Profile | Ignore Thu Nov-01-07 04:23 PM
Response to Reply #5
6. I'll give it a read,
but when you factor in infrastructure decay and possible migration patterns caused by climate change, I'd be VERY surprised if we managed to have access to 20% of the power we're used to by 2025.
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Maven Donating Member (1000+ posts) Send PM | Profile | Ignore Thu Nov-01-07 10:36 PM
Response to Reply #5
9. Excellent read, but I have one question
Edited on Thu Nov-01-07 10:37 PM by Harvey Korman
You acknowledge in the article that "the rising cost of oil and gas may drive the cost of industrial production of all kinds up sharply before wind power has achieved a significant presence." This is obviously true of all alternative energy sources which require building up of infrastructure--oil and gas is still necessary to cultivate materials and to build and deliver equipment, which inevitably breaks down and requires further fuel inputs to maintain. My question is, to what extent is this factor taken into account in the actual model? Are the figures used to project growth of wind power and other renewables based solely on current trends, i.e., growth in the context of abundant oil and gas? If so, the 30% figure seems a little bit optimistic to me.
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GliderGuider Donating Member (1000+ posts) Send PM | Profile | Ignore Fri Nov-02-07 12:22 AM
Response to Reply #9
10. Projecting the growth of renewables is a tricky business, all right. (plus a bit of bed-time sci fi)
I tried to observe two criteria in my projections in that article.

The first was to keep my personal biases out of them insofar as possible. That meant using one of three approaches: use other experts' work that reflected some degree of consensus (which I did with oil and coal, and with some hand tailoring for gas and hydro); use numerical results from the literature with little change to their trends (the approach I used for nuclear power); and pure mathematical projections, which I did for renewables.

The second criterion was to be as optimistic as seemed reasonable. I wanted to be optimistic so as not to be easily accused of having a "doomer" bias that would invalidate the analysis from the outset. However, I didn't want to be so optimistic that I could be accused of biasing the outcome strongly in favour of one energy source or another.

The way I met these criteria for solar and wind was through a careful choice of the mathematical trend lines I used to extrapolate the historical production data. I wanted to find curves that fit the existing data very closely, but didn't just shoot off into the ozone after a few years. I wanted curves that would end up with a value at 2050 that passed a "reasonable man" test (would a reasonable man think they looked about right?) without me having to do anything beyond choosing the curve.

I found that Excel's polynomial extrapolations had the right look and feel, and fit the data very well. I did have a long argument with a proponent of solar power who was reviewing the document. He insisted that an exponential curve was more appropriate, even though it showed that solar power would be generating 100 times more than all the world's current energy by 2050 - hardly reasonable. I was unwilling to add in the arbitrary limit it would have required, so I stuck with the polynomial. The choice of a second order for wind and a third order for solar was based solely on how well each curve fit, and whether the result seemed prudently optimist.

So, the direct answer to your question is, each source was treated in isolation and the limitations imposed by declining oil and gas were not factored in, in the interests of optimism. It's the same reason I used the UN population figures rather than building in energy and environmental limits as I had in a previous article.

I plan to use the model in this article as the cornerstone for what I'm ultimately shooting for: a step-by-step narrative of how I think things are going to unfold over the next four or five decades. For the model to serve that purpose, it had to start with as few of my own assumptions as possible. The assumptions will get added in one at a time as I develop the story-line. Each chapter will build on the previous one and rely on the reader accepting the assumptions used to build it. So the base had to be clean.

Over the last few years I have very developed strong and pessimistic opinions about how things are going to unfold, which is why I'm trying to be extra-cautious in doing the analysis. For instance I think the effects of small but sharp disruptions in the world energy supply (short oil supply disruptions and electrical grid crashes in various places) will trigger cascades of failures in our civilization due to its lack of resilience.

Just for kicks, here's how I really, in my heart of hearts, suspect things will go:

A Tale Told by an Idiot, Full of Sound and Fury, Signifying Nothing

1. In five years or so a sharp drop in world oil exports (the "net oil export crisis") will coincide with a destabilization the world's debt structure to trigger a global depression.

2. In ten years, dropping oil supplies (the onset of the real post-peak slide) will prevent recovery and will deepen the depression.

3. This is also when the decline of the industrial and transportation infrastructure will start to interfere with the build-out of nuclear, solar and wind power. That will continue to get worse over the following decades.

4. The decline of gas supplies in 15 years will hit the world's fertilizer market with skyrocketing prices. This will trigger a decline in crop yields in the developing world (they have little discretionary income to reallocate for agriculture).

5. In twenty years the effects of Climate Chaos will become severe, amplifying the effects of the fertilizer and agri-fuel crisis. Famines will be in full bloom in Africa and Asia. Food and fuel riots become commonplace, resource wars break out in the affected regions, and floods of economic migrations will reach Biblical proportions.

6. At about the same time the continuing global depression will combine with the final crash of oil exports to create the conditions for a series of very intense regional wars. The likely participants will be everybody with nukes except maybe South Africa. I doubt it will turn into a classic global holocaust, but it will wreck many parts of the world.

7. In 30 years everyone that's left will be hunkered down in small isolated communities, trying to remember how to farm by hand and store food over the winter with no refrigerators. There will be about four billion of us by then, and our numbers will be dropping fast.

So you can see why I might want to keep my opinions out of my objective analysis. What I'm hoping is that as I build the chain of cause and effect one link at a time it leads ineluctably away from my worst fears. That would be a wonderful outcome, so I'm going to build that chain as objectively as I possibly can.

Paul Chefurka
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bhikkhu Donating Member (1000+ posts) Send PM | Profile | Ignore Sat Nov-03-07 02:29 AM
Response to Reply #10
14. k&r, and thanks
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NickB79 Donating Member (1000+ posts) Send PM | Profile | Ignore Sat Nov-03-07 03:39 AM
Response to Reply #10
15. Man, I hope we still have 5 years before the depression sets in
Edited on Sat Nov-03-07 03:45 AM by NickB79
I can be completely debt-free one year from now while doing some prep for Peak Oil (mainly helping my father improve the family farm), and after that will have much more available cash to speed up my preparation plans.

As sad as it is, your post actually gave me some hope that I'll have enough time to prepare.
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Subdivisions Donating Member (1000+ posts) Send PM | Profile | Ignore Thu Nov-01-07 10:16 PM
Response to Reply #1
8. To "con" us? Are you insane?
Look at this chart:



Note if you will the countrys that have already peaked. This graph incorporates actual production data. You can clearly see the countries that have already peaked are in DECLINE. Extrapolate out to the entire planet and you have what we call PEAK OIL.
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LynzM Donating Member (1000+ posts) Send PM | Profile | Ignore Fri Nov-02-07 08:44 AM
Response to Reply #8
11. That is one heck of a scary graph.
I've never seen that graph before, but it ought to get spread around far and wide... :scared:
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GliderGuider Donating Member (1000+ posts) Send PM | Profile | Ignore Fri Nov-02-07 08:53 AM
Response to Reply #11
12. It's a recent graph from the Energy Watch Group's Peak Oil report
It's the very best report on Peak Oil I've seen - thorough, intensely analytical and very, very honest. You can get the Executive Summary here and the full report here here (PDF warnings for both).
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Subdivisions Donating Member (1000+ posts) Send PM | Profile | Ignore Fri Nov-02-07 12:53 PM
Response to Reply #12
13. Thanks, GG! I shoulda put those links in but I was knee-jerking
and in a hurry as I had to leave.

That graph is all anyone needs to see, who can understand it, to know that this civilization is in BIG,

BIG

TROUBLE!



And still, no one wants to hear it.

Oh well.
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Javaman Donating Member (1000+ posts) Send PM | Profile | Ignore Thu Nov-01-07 10:32 AM
Response to Original message
4. Until the government puts forth a realistic energy plan to deal with
oil vanishing, humans will continue on their merry way until forced to change or have run out of go go juice.
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Subdivisions Donating Member (1000+ posts) Send PM | Profile | Ignore Thu Nov-01-07 10:11 PM
Response to Original message
7. Calling HypnoToad --- Heads up! You chided me on this
very subject http://www.democraticunderground.com/discuss/duboard.php?az=show_topic&forum=389&topic_id=2169004#2169675">the other day.

So, Toad, please tell me that the CEO of Total is a tinfoilhatter.

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