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Peak Oil News Saturday August 12th 2006
ALI SAMSAM BAKHTIARI is a retired "senior energy expert," formerly employed by the National Iranian Oil Co. (NIOC) of Tehran, Iran. He has held a number of important positions with NIOC since 1971. He is currently attached to the director's office in the Corporate Planning Directorate of NIOC, and specializes in questions related to the global oil, gas and petrochemical industries. This alone ought to pique your interest because Bakhtiari has the ear of the most important decision-makers in Iran. What is he telling them?
With billions now contemplating the imminent peak of oil production and the consequent peak of that spike of human population we are all a part of, each day brings a wider, deeper understanding of what life at the peak means. But the incredible energy, the pace and momentum, the creative/destructive power of this moment of maximum human power is water to fish underappreciated.
Last summer, a new gasoline station opened in South Elgin, an old farming village on the Fox River that's now being swallowed by the westward sprawl of Chicago. As service stations go, it's an alpha establishment. A $3 million Marathon outlet with 24 digital pumps, a computerized carwash, a Goodfella's sandwich shop and a convenience store lit up like an operating room, it sells everything from ultra low sulfur diesel to herbal "memory enhancer" to Krispy Kreme doughnuts. Infrared sensors activate the faucets in its immaculate, white-tiled bathrooms. The coffee kiosk's floor is real hardwood.
As "peak oil," the inevitable point of irreversible decline in the availability of the substance to which U.S. President George W. Bush has belated admitted the country is "addicted," surges in public awareness, some U.S. cities are rushing to address it, while others are burying their heads in the oil sands (formerly tar sands) and doing nothing. Portland, Oregon, San Francisco, California, and Salisbury, Maryland, are all moving rapidly to consider the implications for their residents of the "peak oil" phenomenon.
One of the reasons Hitler lost the war is because he ran out of fuel. As Germany had not been bestowed with oil reserves, Hitler was aware of the important part oil would play in his plan for world domination. The eastern front was very much about securing Russia's oil supply.
With crude oil prices at record highs approaching $80 a barrel, the big question locally is what will happen to island gas prices, which already are the highest in the country. In September, when crude oil peaked at just over $70 a barrel following hurricanes in the Gulf Coast, Hawaii's statewide average for regular reached $3.68 a gallon.
If you live around Washington , DC and have much do with the federal government, then you probably read the Post. There are a few exceptions. If you are into finance or securities you reach for the Wall StreetJournal each day. If your politics are more than a few degrees to the right, you are going to be happier with the Washington Times, and if you are a deep thinker, then your day is not complete without the New York Times. As a general rule, however, the tens of thousands who run our nation, or talk frequently to those that do, absorb their world outlook each day from the pages of the Washington Post.
"I was disappointed that the AP article you ran on record-high oil prices ("Record high oil prices bring uncertainty," July 14) did not mention the underlying cause: World oil production is at or near its peak. After a century of increasing oil production, the world has pumped out about half the oil available. Pumping out the rest of the oil takes greater time and energy, so production is likely to level off and decline, now or in the near future. As with any commodity that becomes increasingly scarce, prices are likely to continue rising."
The price of oil was all over the place yesterday. First Brent crude touched a fresh peak of $78.18 a barrel, territory last explored on Friday, as the conflict between Israel and Lebanon escalated. Then the Brent barrel price subsided down towards $76, apparently on the back of a fleeting shaft of better news from the Middle East.
“What do you do when fuel is the price of champagne?” As a writer who focuses much on issues of Peak Oil, I believe that is an interesting way to ask the question. The last time I looked at the price of decent champagne (not even the high-end stuff), it was selling for the likes of $25 per bottle and up, or the equivalent of $125 per gallon. Ouch! So imagine a bottle of champagne with a fuel hose and nozzle running out of it. Try to envision some very pricey stuff bubbling out of the Dom Perignon-style bottle and into the fuel tank."
We're at the point at which even if the alleged "dream" of beauty contestants everywhere, "World Peace," were to come tomorrow, to the Mideast, to Chechnya, to India-Pakistan, everywhere, we'd still be doomed. We're running out of the oil, the drug that's killing us, but we've made no real plans for a survivable "detox." As with everything else, we try not to think about our dwindling supply, or we tell ourselves that "they" (you know, "them," the ones who addicted us in the first place) will come up with a cleaner, safter drug, a "renewable" fix that will keep us high forever.
"Browsing in a bookstore, I came across an intriguing new series: "Penguin Books' Great Ideas." These compact volumes contain excerpts from the world's great philosophers. Sun-tzu, Plato and Rousseau are among those represented. But in the display I looked at, only one title in the series had sold out."
Harper's Magazine's August edition, citing an environmental group called Peak Oil, paints a nightmarish picture of a world without oil. The global economy is in endless decline, cars become luxury items for the rich, suburbanites live in isolation from food and goods, agriculture withers, international trade halts, air-conditioning ends, and extreme political movements emerge to fight to preserve the last resources. People will be forced to gather in small, self-sustaining and defensive communities to survive.
Standing on the steps of City Hall, New College professor Richard Heinberg told a crowd of San Franciscans, "The 21st century will be the decline of fossil fuels." This renowned expert on "peak oil" then headed inside to testify at a hearing convened by Sup. Ross Mirkarimi on the issue.
The combination of strong global demand and worries about supply in the face of geopolitical tensions have seen the oil price spike to record highs. And of course this has seen a continuation of the upward trend in petrol prices. The latest oil price surge has been accompanied by increasing fears that oil will soon run out.
VHeadline.com oil industry commentarist Andrew McKillop writes: One reason the Kyoto Treaty is likely unworkable and will certainly not achieve its claimed original goals of reducing GHG (greenhouse gas) emissions by signing and ratifying states to their 1990 levels by at latest 2012, while increasing ‘green energy’ (renewable energy) production, and sustainable economic development through the CDMs (Clean Development Mechanisms), is the ideological trap of market-only mechanisms.
Americans spend $800 million a day on 20 million barrels of oil, but a leading scholar says there are ways to break that habit. Christopher Flavin of the Worldwatch Institute, an independent environmental-research organization, is scheduled to speak this evening to the Santa Fe Council on International Relations about "American Energy: Breaking Our Addiction to Oil."
"In regard to efforts to deny the reality of Peak Oil, I have previously described what I call the "Iron Triangle," which I define as: (1) most auto, housing and finance companies; (2) most of the mainstream media and (3) most major oil companies, major oil exporters and the energy analysts that work for the major oil companies and major oil exporters."
Most of our modern medical system is oil-dependent, just like the rest of society. Oil has been so cheap for so long that it has become a pervasive presence in health care delivery. This impact is most obvious when one looks at the transport systems required to maintain a health service. Just as suburbia has been subsidised by the endowment of cheap and plentiful oil, modern medical care is predicated on the cheap movement of things and people from one place to another.
"Is it just me or have the vehicle-owning residents of Ottawa resigned themselves to gasoline prices of more than $1 a litre? Gas prices have consistently ranged between $1.06 and $1.10 a litre during the morning rush hours for a month or more. Last year at this time that was reason enough for public lamentation and fist shaking. But this summer driving season, there doesn't seem to be much fuss at all. Nor, from casual observation, does it appear to have reduced the number of vehicles on the road."