The New York Times

June 5, 2010
Imagining Life Without Oil, and Being Ready
By JOHN LELAND

As oil continued to pour into the Gulf of Mexico on a recent Saturday, Jennifer Wilkerson spent three hours on the phone talking about life after petroleum.

For Mrs. Wilkerson, 33, a moderate Democrat from Oakton, Va., who designs computer interfaces, the spill reinforced what she had been obsessing over for more than a year — that oil use was outstripping the world’s supply. She worried about what would come after: maybe food shortages, a collapse of the economy, a breakdown of civil order. Her call was part of a telephone course about how to live through it all.

In bleak times, there is a boom in doom.

Americans have long been fascinated by disaster scenarios, from the population explosion to the cold war to global warming. These days the doomers, as Mrs. Wilkerson jokingly calls herself and likeminded others, have a new focus: peak oil. They argue that oil supplies peaked as early as 2008 and will decline rapidly, taking the economy with them.

Located somewhere between the environmental movement and the bunkered survivalists, the peak oil crowd is small but growing, reaching from health food stores to Congress, where a Democrat and a Republican formed a Congressional Peak Oil Caucus. Read the complete Post.

Published Tue, 06/08/2010 – 07:00
by Post Carbon Institute

In a recent video interview former Shell Oil Company President John Hofmeister let loose the bracing forecast that, if the world economy shows signs of improvement, petroleum “will surpass $100 a barrel either at the end of this year or during the first half of 2011,” with prices “staying in the triple digits until an alternative source of energy begins to replace liquid fuel.”

For careful listeners, an even bigger bombshell came toward the end of the interview: “I think over the next 5 to 10 years we will peak in the production of what’s called conventional or easy oil. . . . We will not in anyway peak relative to the resources left in the earth. But the resources left in the earth will be higher risk and higher cost to produce, which will increase the cost basis on which ultimately gas prices are set.”

So there you have it. Worldwide production of “conventional” oil will peak and drop off frighteningly soon. But, not to worry: “We will not peak relative to the resources left in the earth.”

Huh? Did Hofmeister just endorse the Peak Oil hypothesis, or deny it? And what does he mean by saying that “the resources left in the earth” will not peak? After all, we’re talking about depleting, non-renewable resources here; does Hofmeister intend to imply that there’s more oil in the Earth’s crust today than there was a couple of hundred years ago before we extracted and burned that last trillion barrels? Weird. Read the complete Post.

The National
Tamsin Carlisle
* Last Updated: April 20. 2010 6:08PM UAE / April 20. 2010 2:08PM GMT

The Gas Exporting Countries Forum (GECF), made up of nations controlling 70 per cent of the world’s gas reserves, has dropped an Algerian proposal to cut gas exports, thereby proving it is no “Gas OPEC”.

Instead, ministers from its 11-member states resolved yesterday to push for gas prices to be linked to market prices for crude. Read the complete Post.

By James Howard Kunstler on May 2, 2010 10:46 AM

Senator Levin pretty much had Goldman Sach’s Lloyd Blankfein dead in a casket with that now-notorious email from GS’s head of sales and trading, Tom Montag, describing one of their billion-dollar investment “products” as “one shitty deal.” Levin seemed to delight in crossing the boundary into the realm of the unspeakable, knowing that even the so-called “family” newspapers and cable TV networks would have to report it. And just to make sure nobody missed the point, the senator repeated that phrase at least twenty times before the day was over. It was like the climactic scene in that old Hammer Films classic, The Horror of Dracula, where Professor Van Helsing moves from coffin to coffin pounding stakes through the hearts of Drac and all his fellow bloodsuckers

It’s hardly the climax of our story, though. Ours has barely started. It seems to me lately that the crack-up we’ve entered is liable to play out more gruesomely for our privileged elites than the orgy of bloodletting that attended the French Revolution. That historical moment was a sharp transition between old, settled social relations and the new political realities of imminent industrialization and a rising middle class. The elites in charge of things to that moment, an ossified aristocracy, responded to rising discontent with utter feckless stupidity. To make matters worse, a great many of them were hunkered down in the fantasy-land Royal Palace of Versailles, enjoying what was for practical purposes a non-stop mega house party. They must have thought they were safe twelve miles outside Paris. Read the complete Post.

• Shortfall could reach 10m barrels a day, report says
• Cost of crude oil is predicted to top $100 a barrel

Sunday 11 April 2010

by Terry Macalister

The US military has warned that surplus oil production capacity could disappear within two years and there could be serious shortages by 2015 with a significant economic and political impact.

The energy crisis outlined in a Joint Operating Environment report from the US Joint Forces Command, comes as the price of petrol in Britain reaches record levels and the cost of crude is predicted to soon top $100 a barrel.

“By 2012, surplus oil production capacity could entirely disappear, and as early as 2015, the shortfall in output could reach nearly 10 million barrels per day,” says the report, which has a foreword by a senior commander, General James N Mattis.

It adds: “While it is difficult to predict precisely what economic, political, and strategic effects such a shortfall might produce, it surely would reduce the prospects for growth in both the developing and developed worlds. Such an economic slowdown would exacerbate other unresolved tensions, push fragile and failing states further down the path toward collapse, and perhaps have serious economic impact on both China and India.” Read the complete Post.

By Chris Nelder | Friday, April 2nd, 2010

When I began writing about peak oil professionally in 2006, it was generally considered a tinfoil hat theory. The notion that oil production might peak around 2012 (plus or minus) was only taken seriously by a few analysts who were considered extremely pessimistic.

Official forecasts had no cognizance of it whatsoever. All were confident that oil supply would continue to grow steadily to 130 million barrels per day (mbpd) and beyond, at prices that would be considered astoundingly cheap by today’s standards. Oil companies rarely mentioned peak oil, and when they did, it was in a casually dismissive way.

But as time marched on, the cornucopian arguments fell one by one. My longtime readers have seen the story unfold, but for the benefit of new readers, here’s a quick summary…
Forecasts grew increasingly pessimistic as it became apparent that regular conventional crude supply had peaked at the end of 2004. Even as the biggest oil price spike in history ensued from 2005-2008, crude production remained flat and unresponsive.

OPEC scaled back some of its development plans as costs soared. Non-OPEC production not only failed to deliver any actual increase, but began to decline. Forecasts were revised lower.

Corn ethanol boomed and busted, as it was revealed to be the net energy non-starter that serious analysts always knew it was. It also was suspected of adding pressure to food prices at a most inopportune time.

Unconventional production from oil shale and tar sands failed to grow as expected, as producers shied away from high-cost, low-production projects.

The International Energy Agency (IEA) finally included the depletion of mature fields in its analysis, and became increasingly shrill in its warnings about future supply.

A few current and former oil industry executives began making public statements about the diminishing prospects for new supply, and a few even acknowledged that it would be hard to increase production much beyond current levels.

Then high oil prices proved intolerable to an economy stretched thin by the bursting of the bubbles in the real estate and financial sectors.

Yet official recognition of the peak oil threat remained muted, couched in warnings about “adequate investment” and blithe assertions that demand would soon peak, averting any supply shortage.

All that seems to have changed in the last month. A sudden deluge of reports and summit meetings suggest that the oil industry and energy officials are now taking peak oil very seriously indeed.
UK Task Force on Peak Oil: Shortages by 2015 Read the complete Post.

March 25, 2010
Le Monde, France
L’essence de L’histoire, par Matthieu Auzanneau

a-new-climate-for-energy-eia-2009-conf

The U.S. Department of Energy admits that “a chance exists that we may experience a decline” of world liquid fuels production between 2011 and 2015 “if the investment is not there,” according to an exclusive interview with Glen Sweetnam, main official expert on oil market in the Obama administration.

This warning on oil output issued by Obama’s energy administration comes at a time when world demand for oil is on the rise again, and investments in many drilling projects have been frozen in the aftermath of the tumbling of crude prices and of the financial crisis.

Glen Sweetnam, director of the International, Economic and Greenhouse Gas division of the Energy Information Administration at the DoE, does not say that investments will not be “there”. Yet the answer to the issue of knowing when, where and in which quantities additional sources of oil should be put on-stream remains widely “unidentified” in the eyes of the most prominent official analyst on energy inside the Obama administration. The DoE dismisses the “peak oil” theory, which assumes that world crude oil production should irreversibly decrease in a nearby future, in want of suffisant fresh oil reserves yet to be exploited. The Obama administration of Energy supports the alternative hypothesis of an “undulating plateau” . Lauren Mayne, responsible for liquid fuel prospects at the DoE, explains : “Once maximum world oil production is reached, that level will be approximately maintained for several years thereafter, creating an undulating plateau. After this plateau period, production will experience a decline.” Read the complete Post.

Deniers are dancing on the graves of their reputations, to say nothing of reality itself. But Earth will still get the last laugh on all of them, and us for that matter.

By Scott Thill, AlterNet
Posted on March 21, 2010

And if the ground’s not cold/Everything is gonna burn/We’ll all take turns/I’ll get mine too. — Pixies, “Monkey Gone to Heaven.”

Bad news. Thanks to perfectly timed, premeditated reality assassinations like so-called ClimateGate, nearly half of Americans may now believe that the various threats of climate change are exaggerated. That’s the highest quotient ever since polling on the issue commenced. But there is good news: They’re on the wrong side of history and science, and Earth will still get the last laugh on all of them, and us for that matter.

Welcome to our existential nightmare. From rising seas and runaway droughts and storms to the outer limits of dystopian catastrophes like the fart apocalypse — I’ll explain later — our planet has no shortage of ways to bitch-slap us back into our dangerous reality, whether we want it to or not.

Of course, we could stave off some of the more egregious probabilities of extinction, if we acted now to limit global warming’s inexorable rise to 2 degrees. But that means a determined destruction of the status quo, and that’s always messy for those who like things just the way they are, thank you very much. But they’ll still get theirs. How? Let us count the ways. Read the complete Post.

By Richard Heinberg
20 March, 2010
National Post
CounterCurrents.org

The “Peak Oil” concept — that the world’s petroleum-production rate will soon reach its maximum and commence an inevitable decline, with negative economic consequences — has been around in scientifically articulated form at least since 1998; long enough to see it confirmed in significant ways.

The rate of discovery of new oilfields has been falling since 1964. The biggest find in recent years is Tupi, in Brazilian waters, which is claimed to hold five-to-eight billion barrels of oil; but that’s only enough to slake the world’s thirst for 60 to 90 days. Most producing nations are past their domestic peaks and are experiencing slowing output, despite every effort to maintain flow rates. Read the complete Post.

March 19, 2010
By JAD MOUAWAD

Last summer, Saudi Arabia put the final bolt in its largest oil expansion project ever, opening a new field capable of pumping 1.2 million barrels a day — more than the entire production of Texas. The field, called Khurais, was part of an ambitious $60 billion program to increase the kingdom’s production to meet growing energy needs.

It turns out the timing could not have been worse for Saudi Arabia.

Only two years ago, consumers were clamoring for more supplies, OPEC producers were straining to increase their output, and prices were rising to record levels. But now, for the first time in more than a decade, the world has more oil than it needs.

As demand slumped because of the global recession, Saudi Arabia was forced to shut about a quarter of its production. After raising its capacity to 12.5 million barrels a day, Saudi Arabia is now pumping about 8.5 million barrels a day, its lowest level since the early 1990s.

“2009 was painful for us as it was for everybody else,” said Khalid A. al-Falih, the president and chief executive of Saudi Aramco, the kingdom’s state-owned oil giant, and a company veteran who was promoted to the top post at the beginning of last year. “We experienced the same cash flow constraints that everybody did. But we adjusted quickly and, certainly, everything that was strategic to us was not touched.”

The recession also precipitated a milestone for Saudi Arabia and the global energy market. While China’s successful economic policies paved the way for a quick rebound there, the recession caused a deeper slowdown in the United States, slashing oil consumption by 10 percent from its 2005-7 peak. As a result, Saudi Arabia exported more oil to China than to the United States last year. Read the complete Post.