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High Oil Prices here to stay

tom k&e said:
Oil will never run out - it will just become very, very expensive as supplies decrease, which will make it useless as an energy source.

But as I have already pointed out twice on this thread, we are not running out of petroleum, but in fact running into an abundance of the stuff. Proven oil reserves have doubled over the last 25 years from 645 billion barrels in 1980 to 1.28 trillion barrels today.


worldoilprod.gif


http://www.eia.doe.gov/emeu/cabs/nonopec.html

Also, once oil uses more energy to extract than it produces, it wont be much use as fuel...

This is a logical tautology which assumes as true what you ought to be trying to prove, namely, that oil is in fact becoming harder to extract because it is supposedly running out - which it is not.
 
bigfish said:
But as I have already pointed out twice on this thread, we are not running out of petroleum, but in fact running into an abundance of the stuff. Proven oil reserves have doubled over the last 25 years from 645 billion barrels in 1980 to 1.28 trillion barrels today.

This is a logical tautology which assumes as true what you ought to be trying to prove, namely, that oil is in fact becoming harder to extract because it is supposedly running out - which it is not.

I wasn't trying to argue with you, but hey if you want a fight...

Hardly anyone in the real world believes the abiogenic theory of oil production. It was supported by lunatics like Joe Vialls and hardly anyone else.

Proven oil reserves have increased because petroleum geology has become more advanced. If oil was being magically produced at a rate of 30bb/annum as you seem to be implying, there would be reserves in the quintillions of barrels from this happening for the last few billion years.

I don't think oil is going to become expensive or hard to extract any time soon. But eventually it will happen
 
bigfish said:
If we are running out of oil, as you seem to be suggesting here, then why are worldwide oil reserves at historically high levels?

Ah, that would be the mystery OPEC reserves that were all discovered simultaneously? Must be the geography of the middle east, right. Except Venezuela jumped too. Ok, must have been new technology. But why no jump outside OPEC?

r7resjump.gif


(They did this again recently, but I can't find a graph)

And why havn't we found more oil per year than we used per year since 1985?
 
Rich Lyon said:
Bigfish is presenting a confused argument (and may well just be confused). There may be grounds for discrediting Campbell and Leherre. But not by highlighting their "intimate" links to the oil industry, in who's interest it is to argue precisely the opposite argument to theirs...

The confusion is all yours I'm afraid RL. Central to Economics today is the assumption of scarcity. Neo-classical economists, however, like to distinguish between relative and absolute scarcity. The first is really a short-term problem, whereas the second is a much longer-term problem which, depending on the nature of the goods involved, could even represent a dilemma for the future survival of mankind on Earth.

In this context, the debate on oil origins and oil reserves should not be confused with the present situation of high prices for crude. This has undoubtedly been aided (or perhaps even justified) by fears stirred up about growing energy scarcities, but it has not been caused by such fears. The world has been moving in recessionary direction since the mid-1990s. In such situations in the past, the most powerful economic agents were those most able to preserve their incomes. However, it should be noted here that recessions, or depressions, are not due to increased scarcity but to over-abundance. While scarcity may result, thanks to the closure of companies faced by ruin, this ruin is the product of over-production. The big oil cartel is a principal component of the power system that obtains in the world today, and because it is so big and powerful it is able to force oil production down, thereby raising prices. It may also be the case (as frequently noted in the financial press) that rising oil prices deepen recessionary situations. But cause them? The economic crisis that began to develop in the 1990s was not due to overproduction in any particular branch of industrial activity, but is a general phenomenon that has affected most (if not all) areas of economic life, due to over-production.

Big Oil is part of the oligarchic organization of the Earth’s resources (human and natural) and therefore, it is not simply a handful of large companies, but a key part of a power network that embraces the world and which has the capacity to guide national and worldwide policies that aim to protect and perpetuate its interests. Thus the interests of this hub of Capital can be presented as the national interest, the interest of democracy, mankind, or the world. In this context the coincidence of different problems in Iraq, Russia and Venezuela (and elsewhere) contributing to the current fall in crude supplies is very interesting. Meanwhile, the other factor behind the high price of oil, the rise in demand, may be traced back to U.S. (worldwide) economic policy, including its present war policy. Prices, it should be noted, are expected to go on rising as long as the shortage in refining capacity is not tackled. This can be described therefore as an example of relative scarcity, but it has nothing to do with a supposed catastrophic, long-term, depletion of crude oil reserves.


He appears to be exhibiting the classic symptoms of someone struggling with an "out of context problem" i.e. one that is so far out of our capacity to process, or with such unpalatable implications, that any alternative possibility (no matter how improbable) will do! And he can't be blamed for that.

Oh really Doctor?
 
bigfish said:
The confusion is all yours I'm afraid RL. Central to Economics today is the assumption of scarcity. Neo-classical economists, however, like to distinguish between relative and absolute scarcity. The first is really a short-term problem, whereas the second is a much longer-term problem which, depending on the nature of the goods involved, could even represent a dilemma for the future survival of mankind on Earth.
Well, seeing as you're an abiotic oil believer, oil will always be relatively scarce for you - so that's to be expected
Thus the interests of this hub of Capital can be presented as the national interest, the interest of democracy, mankind, or the world.
As Big as Big Oil is, the rest of the world's economy is Bigger. When the entire world economy is dependant on cheap, easy energy, then high oil prices hurt it.
the other factor behind the high price of oil, the rise in demand, may be traced back to U.S. (worldwide) economic policy, including its present war policy. Prices, it should be noted, are expected to go on rising as long as the shortage in refining capacity is not tackled. This can be described therefore as an example of relative scarcity, but it has nothing to do with a supposed catastrophic, long-term, depletion of crude oil reserves.

I thought the rise in demand was mainly caused by the rapid urbanisation and industrialisation of India, China etc. The current spike is partly caused by a lack of refineries (for the heavier oils that are now more common, as the light sweet stuff is in decline), but as long as there is a finite amount of oil on the planet, the peak will happen, and it will be a long drawn-out catastrophe. It won't feel like one - each year will be a bit tougher than the year before, but it will go on and on.
 
Crispy said:
Ah, that would be the mystery OPEC reserves that were all discovered simultaneously? Must be the geography of the middle east, right. Except Venezuela jumped too. Ok, must have been new technology. But why no jump outside OPEC?

r7resjump.gif

Where are the numbers for the FSU, the second biggest producer in the world?
 
Crispy said:
Well, seeing as you're an abiotic oil believer, oil will always be relatively scarce for you - so that's to be expected

My belief that petroleum is abiotic in origin and is therefore renewable, is based solidly on available scientific evidence. On the other hand, your belief that petroleum is biotic in origin and is therefore finite, is a logical tautology that assumes an unproven 18th century hypothesis as being true when, in fact, it has been thoroughly repudiated. This is especially clear in the domain of chemistry, where the idea being assiduously promoted by the supporters of the "peak oil" hypothesis - that the presence of "biomarkers" clearly establish its provence - is comprehensively debunked as an intellectual fraud.

See for example: Dismissal of the Claims of a Biological Connection for Natural Petroleum http://www.gasresources.net/DisposalBioClaims.htm

"The “porphyrin evidence” claims were destroyed by the investigations of carbonaceous meteorites approximately thirty years ago, and are well known throughout the community of scientists working in the field of petroleum. Every compound designated as a “biomarker,” and not otherwise identified as a contaminant, has been either observed in the fluids extracted from the interiors of meteorites, or synthesized in laboratories under conditions comparable to the crust of the Earth, - or both.

Such scientific facts, and the general knowledge of same, not withstanding, every textbook published in the English language purportedly dealing with the subject of petroleum geology, including the ones cited above, continues to repeat the old discredited claims that the presence of (abiotic) porphyrins in natural petroleum provide evidence for its origin from biological matter.15-17 Such assertions, thirty years after having been demonstrated scientifically insupportable, must be acknowledged to be intellectual fraud, pure and simple."

As Big as Big Oil is, the rest of the world's economy is Bigger. When the entire world economy is dependant on cheap, easy energy, then high oil prices hurt it.

Yes, that's right. But control over a substantial proportion of the world's oil is in the hands of the big oil cartel which, in turn, is backed up by the USuk military machine. See the recent invasion of the Persian Gulf for a classic example of what I am talking about.

I thought the rise in demand was mainly caused by the rapid urbanisation and industrialisation of India, China etc.

Yes, but as China and India rapidly industrialize in the East, places like the US and Britain deindustrialize in the West.

The current spike is partly caused by a lack of refineries (for the heavier oils that are now more common, as the light sweet stuff is in decline), but as long as there is a finite amount of oil on the planet, the peak will happen, and it will be a long drawn-out catastrophe. It won't feel like one - each year will be a bit tougher than the year before, but it will go on and on.

But oil is not finite. Once again, you position rests entirely on an inculcated logical tautology that you present as a fact.
 
bigfish said:
See for example: Dismissal of the Claims of a Biological Connection for Natural Petroleum http://www.gasresources.net/DisposalBioClaims.htm

Ok, reading this now. Don't suppose you've got a link to a "Proof For" paper in favour of the abiotic hypothesis? This is a "Proof Against" the biotic hypothesis, which is interesting, but we have to be careful about using proof against one hypothesis to "proove" another.

--

Ok, so far they've proved (pretty much to my satisfaction) that the porphyrins in oil can also be found in meteorites. They have not ruled out a biotic origin, just stated that there is more than one possible source. Therefore they have brought down this evidence to a lower level of importance.

--

Ah, same goes for the odd-even carbon imbalance

--

Hmm, well that's intriguing - and my mind is still open, but I couldn't find the 'Later article' mentioned at he end which would tell me how oil is created.

Oh, and oil doesn't have to be finite for there to be a peak, it just has to be created at a slower rate than the rate we use it up.
 
Only have to stay alive a few more years to see bigfish do a U-turn.

I mean I assume that when the oil situation gets so bad that UK & US interests suffer in a bad, visible and huge manner, the hypothesis that its just corporations profiteering will vanish.

I mean when things get so bad that stability of the system through which both corporations and governments sutain their grip starts to crumble, it would be insane to assume that governments would allow the situation to continue.

Unfortunately I suppose there are a number of scenerios in which this reality-check could be delayed for years or even decades. If the crisis is managed globally by the military of strong countries, US & UK could maintain their energy lifestyles for years as other countries lose all access to compensate for oil production declines. Or if there is a recession the shortage of energy will be masked/delayed, and you can carry on wibbling about abiotic oil for years to come. Or maybe something else like bird flu will come along and reduce population and thus energy usage in dramatic ways that have the effect of delaying the final oil supply crunch, buy another decade or so of surplus oil capacity like the events of the 70's did.
 
BF: My belief that petroleum is abiotic in origin and is therefore renewable, is based solidly on available scientific evidence. On the other hand, your belief that petroleum is biotic in origin and is therefore finite, is a logical tautology that assumes an unproven 18th century hypothesis as being true when, in fact, it has been thoroughly repudiated.

Eh?

So, to recap. In order to sustain your theory, you require it to be simultaneously true that:

(1) There exists a global conspiracy of oil companies which, despite the dependency of their share price on their prowess at increasing their hydrocarbon reserves, and the risk to their business model that inflated prices leads to the development of substitutable energy technologies, collude to conceal the reserves at their disposal and inflate the cost of oil.

(2) There exists a theory of perpetual hydrocarbon production (a.k.a. "abiotic"), despite there being for each posited example plausible alternative explanations which must be excluded from the "proof" for it to survive scrutiny.

You'll forgive us, I'm sure, for pointing out that any argument that rests on a combination of conspiracy theory and cargo cult science is always going to be accused of violating the principle of never making more assumptions than the minimum needed to explain the observable facts ...
 
Rich Lyon said:
<snip> Hydrocarbon reserves are now, in the main, inaccessible (to Western Governments), diminishing, and contested. The danger is not of permanently high oil prices. The danger is the collapse of the way of life we recognise as "civilisation". Our civilisation has been hard-wired around the unique characteristics of hydrocarbons - millions of years of solar energy have been released in 130 years - there is no other energy source that can be extracted, transported, stored and converted into energy with such convenience and efficiency.

It represents a Single Point of Failure for us - every other energy system relies on a hydrocarbon platform. You can't manufacture wind turbines using wind energy. You can't realise biofuel crop yields using biofuel fertilisers, pesticides and irrigation power systems. The "hydrogen economy" is a delusion.

Our towns and manufacturing systems are predicated on the presumption of ubiquitous transport, and there is no means of sustaining that transport system at lower fuel power densities. Our financial systems are no longer connected to a hard currency base because of unsustainable growth brought on by "free" energy", and will collapse.

Complex systems (like our civilisation) don't "wind down". Power outages, food supply failures and warfare will cause parts to fail, and once failed, will be impossible to restart. The 2004 large-scale failure of the power grid in the US, and the gas supply crisis in the UK this Winter, are both early examples evidence of what will become an escalating series of emergencies leading to widespread political, financial and social breakdown.

The pre-hydrocarbon population of the Earth was around 1 billion. The current population of the Earth is around 6.5 billion. The 5.5 billion net are surplus to the base carrying capacity, sustained only through the availability of hydrocarbon, and destined to die off as it runs out.

Where are they? Look at a satellite picture of the Earth at night. The bright bits are where the dead people will be ...
A couple of points in response to this.

I think it's quite important to consider the transition period between a fossil fuel based system and one that has no signifiant quantities of fossil fuels. I keep bringing up Cuba during the Special Period as an interesting test case, because they lost most of their oil, pesticide and fertiliser inputs almost overnight and still found ways to cope. In the case of peak oil, the transition is likely to take place over a considerably longer period. So I don't think it's right to assume we're all automatically fucked. A great deal depends on just how the transition is managed, and on what political and economic forces are in play.

Peak oil is by no means the only, or even the most serious problem. I'd put soil erosion somewhat higher on the list (at least in global terms, it's a bit less pronounced with our heavy soils in the UK) because there is no doubt that it is happening right now, nor is there any real doubt about the horrific rates of loss we're experiencing. What's particularly worrying is that it interacts strongly with oil based agriculture and that serious oil price rises and shortages tend to exacerbate the problems caused by erosion. Ultimately, losing the ability to use oil to compensate through imports, means you tend towards becoming stuck with the land you're actually living on and having to live within the outputs that it can produce. That means you have competition between food, energy and habitation in terms of how that land is being used.

For example, let's take the UK. We presently have about one acre of land per capita. To sustain our present lifestyle with no oil, using that land as it currently is, we'd need about seven acres per human, for crops, pasture and energy systems. (estimates are from Pimentel: "Food, Energy and Society")

That's a limit case however, assuming no oil, but also assuming no further loss of arable land to various forms of industrial degradation, no change in population and no severe climate change impacts, nuclear industry accidents etc. In practice, what we'd actually experiene is a transition over a number of decades during which time all of those things may happen. We can also probably do quite a bit better than 7 acres per capita if we reduce consumption and exercise our ingenuity in other ways.

In terms of population, while I think bigfish is being a prat again, I do think that one should be extremely careful when discussing how population comes into this question.
This arithmetic mentality which disregards the social context of demographics is incredibly short-sighted. Once we accept without any reflection or criticism that we live in a "grow-or-die" capitalistic society in which accumulation is literally a law of economic survival and competition is the motor of "progress," anything we have to say about population is basically meaningless. The biosphere will eventually be destroyed whether five billion or fifty million live on the planet. Competing firms in a "dog-eat-dog" market must outproduce each other if they are to remain in existence.
source

Taking these things into account, I think that the right approach is to start putting in place alternatives that can function in the absence of both oil and capitalism, with the intent of expanding them rapidly when the wheels start falling off the present global system. Otherwise, the only solutions are likely to be ones created by and for capitalism, which to my mind are no solutions.

Here's a model I like as the starting point for creating those alternatives.

Fields, Factories and Workshops
 
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