Helping America Navigate a New Energy Reality

Archive for May, 2009

Obama Tackles the Liquid Fuels Problem

By on 28 May 2009 in Other with 10 Comments
Obama Tackles the Liquid Fuels Problem

Today I’ll try to explain President Obama’s policy for decreasing oil consumption in the United States. Right now the administration has so many balls in the air that it is impossible to make a definite statement about what the effects of their initiatives will be, but a coherent policy is emerging if you gather all the pieces together. I compile a list Obama’s policies at the end of 2nd section below.

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Week of May 25, 2009

1. Last Week 2. Commentary: Drilling with Charlie – Blizzard in the Badlands 3. Quote of the Week 4. Briefs week of May 25, 2009 Commentary: Top Stories from 2008 Read Online Library and PDF Subscribe

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Production and Prices

By on 25 May 2009 in Other with 0 Comments

Oil prices had a bullish week, increasing steadily from $57 a barrel, at one point getting above $62, and then closing at $61.67. Once again the fundamentals of supply and demand had less to do with the price increase than financial considerations. On Monday oil surged in sympathy with a 2.9 percent jump in the […]

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Washington

By on 25 May 2009 in Other with 0 Comments

The nation’s capital had the activity of a three-ring circus last week, with a challenge fired at the Chrysler bankruptcy; a GM bankruptcy in the wings; a cap and trade emissions bill clearing its first legislative hurdle; and the administration announcing a major increase in vehicle fuel standards. While the administration says it is confident […]

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Briefs week of May 25, 2009

By on 25 May 2009 in Peak Oil Review Extra with 1 Comment

Nigeria‘s oil production has fallen to less than half its capacity as fighting escalates in the Niger River delta. The West African nation, formerly the continent’s biggest producer, now pumps about 1.6 million barrels a day, compared with capacity of 3.2 million. (5/23, #1) Mexico said that in the first four months of 2009 the […]

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Quote of the Week

By on 25 May 2009 in Peak Oil Review Extra, quotes with 0 Comments

“It is well-recognized that the main drive of the deepest recession since the Great Depression was the failure of the US and global debt and credit systems. But the surge in commodity prices, notably oil, was a very significant contributing factor.” Daniel Yergin, CEO Cambridge Energy Research Associates

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Commentary: Drilling with Charlie – Blizzard in the Badlands

By on 25 May 2009 in Other with 3 Comments

[Note: a true story from the oil fields. You may have burned some of the associated gasoline.] I am no longer in the directional drilling business due to the industry downturn.  Since many of us will not be returning to the oil fields, those who have this experience will be fewer in number, and the […]

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Mr. Market Gets It Wrong Again

By on 21 May 2009 in Other with 12 Comments
Mr. Market Gets It Wrong Again

Physical traders storing oil will start dumping it back on the market. They will need to dump it all or pile up losses leasing supertankers. The ensuing snowball will cause the oil price to crash. Oil may fall below its February low as today’s distorted $62 price becomes tomorrow’s distorted $25 price. I could be wrong of course. Mr. Market may experience another drug-induced mood swing which reflates the oil price. Naturally it is hard to predict Mr. Market’s future emotional state.

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Peak Oil Notes – May 21, 2009

By on 21 May 2009 in Other with 0 Comments

Prices and production Crude closed on Wednesday at $62.05 a barrel, the highest level in more than six months, after rising $5 in the last three days. Although the US crude inventory dropped by 2.1 million barrels and the Nigerian militants are talking about blocking exports, most of the increase still appears to be related […]

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Week of May 18, 2009

By on 18 May 2009 in Peak Oil Review with 1 Comment
Week of May 18, 2009

1. Production and Prices After rising by $10 a barrel since mid-April, oil prices continued to increase early last week, and at one point touched a six-month high of $60. Just as the equity markets remain largely detached from economic news and focus on hopes for recovery, the oil markets remain largely detached from the […]

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The Great Divide on Energy Policy

At the 2009 Offshore Technology Conference (OTC) in Houston two weeks ago, the top issues revolved around policy questions more than technology, such as drilling the Outer Continental Shelf (OCS) and climate change legislation. I saw little in the way of progress, however. Oil industry representatives pleaded for a transparent and fact-based public dialogue about […]

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Production and Prices

By on 18 May 2009 in Other with 0 Comments

After rising by $10 a barrel since mid-April, oil prices continued to increase early last week, and at one point touched a six-month high of $60. Just as the equity markets remain largely detached from economic news and focus on hopes for recovery, the oil markets remain largely detached from the news of supply and […]

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Nigeria

By on 18 May 2009 in Peak Oil Review Extra with 0 Comments
Nigeria

A few years ago when the oil supply situation was much tighter, every militant attack on an oil facility in the Niger Delta triggered an immediate jump in oil prices. However, ever since world oil supplies began outrunning demand last fall and OPEC began massive production cuts, nobody outside of the Nigerians and their contractors […]

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IEA Lowers Demand

By on 18 May 2009 in Peak Oil Review Extra with 0 Comments

As a leading compiler of information relating to oil, the release of the IEA’s Oil Market Report around the middle of each month always draws much attention.  This month the Agency concludes that it does not see any sign of a recovery in demand and that the oil market fundamentals remain weak.  Demand for 2009 […]

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A Changing LNG Story

By on 18 May 2009 in Peak Oil Review Extra with 0 Comments

On April 27th natural gas prices fell to a recent low of $3.25 /Mcf but have since rebounded to the vicinity of $4.  The demand for natural gas, which has been falling lately in step with falling US industrial production, is the main reason for the decline. This decline in demand and the buildup of […]

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Briefs

By on 18 May 2009 in Peak Oil Review Extra with 0 Comments

Saudi Aramco produced 8.9 million b/d of crude oil on average last year, up from 8.5 million barrels a day in 2007, according to its 2008 annual report posted Wednesday. Reserves of crude and condensate remained unchanged at 259.9 billion barrels. (5/13, #9) Saudi Arabia needs to rein in fast-growing power demand-up 5.6 percent per […]

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Quote of the Week

By on 18 May 2009 in Peak Oil Review Extra, quotes with 0 Comments

“When I became president, the average gas mileage on a car was 12 miles per gallon, and we had mandated, by the time I went out of office, 27.5 miles per gallon. But President Reagan and others didn’t think that was important, and so it was frittered away.” — Jimmy Carter, former U.S. President, testifying […]

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The Reign Of Error

By on 14 May 2009 in Other with 8 Comments
The Reign Of Error

I would be crazy to get involved in this dispute, so I won’t, and besides 1) I’m not up on these issues; and 2) I don’t think Cap & Trade as opposed to a Carbon Tax matters one bit, which is why I’m not up on these issues. However, the Romm versus Hansen dispute does deserve comment because it directly addresses the question of how much CO2 in the atmosphere constitutes dangerous human interference with the Earth’s benign Holocene climate. But first I need to explain why Cap & Trade doesn’t matter.

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Week of May 11, 2009

By on 11 May 2009 in Other with 0 Comments

1. Last Week 2. Some Economic Implications of Peak Oil 3. Quote of the Week 4. Briefs May 11, 2009 Commentary: Top Stories from 2008 Read Online Library and PDF Subscribe

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Production and Prices

By on 11 May 2009 in Peak Oil Review Extra with 0 Comments

Oil prices closed at a six-month high of $58.63 on Friday, capping a week of steady gains. The price surge continues to be tied to investor hopes that economic growth will resume in the second half of the year. Information suggesting that the rate of economic decline is slowing has added to the “accumulating evidence” […]

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Venezuela

By on 11 May 2009 in Peak Oil Review Extra with 0 Comments

Tensions between the Chavez government and the oil service industry have been on the rise for many months over PdVSA’s failure to pay service companies. The total now owed to the companies is said to be over $14 billion. Last week matters came to a head when several firms threatened or actually ceased operations. These […]

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EU Gas Deal

By on 11 May 2009 in Peak Oil Review Extra with 0 Comments

In recent years, the EU has become increasingly concerned about its precarious energy situation. Disputes between Russia and Ukraine have resulted in reduction of the flow of gas from Russia to the West; North Sea gas fields are going into decline; and there are concerns that Russia’s Gazprom is not making sufficient investments to insure […]

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The Message Sinks In

By on 11 May 2009 in Peak Oil Review Extra with 0 Comments

Last week, the Raymond James & Associates firm of financial advisors published a report discussing the possibility that world oil production has already peaked. The event was noted by no less an authority than the Wall Street Journal environmental blog who facetiously counseled that we should all brush off our survivalist manuals and prepare for […]

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Briefs May 11, 2009

By on 11 May 2009 in Other with 0 Comments

         Chevron Corp. said its $4.7 billion Tahiti field in the Gulf of Mexico began pumping crude yesterday, almost two years after faulty parts delayed the project.  The field, located 190 miles from New Orleans in 4,100 feet of water, is expected to produce 125,000 barrels of oil a day when output peaks. […]

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Quote of the Week

By on 11 May 2009 in Peak Oil Review Extra, quotes with 0 Comments

“Shale plays represent a disturbing tendency in the E&P business away from critical thinking. The belief in reward without risk is irrational. Failure to acknowledge the marginal economics of the play is bewildering. Unless opinion leaders confront the underlying economic and geological risks of these plays, I fear that a financial crisis may develop that […]

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