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Wry Heat - by Jonathan DuHamel

Posts Tagged ‘Energy’

Book Review: Energy, Convenient Solutions by Howard Johnson

Sunday, April 24th, 2011

Howard Johnson, a chemical engineer, provides a comprehensive review of energy systems. He looks at the totality of energy sources, from animal dung to nuclear fusion, and examines the production, transmission, and use of energy, and the pros and cons of each.

The book is about ideas and solutions to our energy problems. “Any solution or group of solutions will be based on total energy systems. The systems involved include power-grid stations, transmission lines, fuel procurement and manufacture, waste disposal, local power generators, vehicles and vehicle power systems, transportation and distribution systems for fuels, and maintenance and repair facilities.”

Johnson laments that we don’t develop more of our own domestic resources. “America has a virtual sea of oil within its borders and around its shores. Thanks to what I believe to be misdirected effort to influence elected officials by some overzealous environmentalists, the most accessible of our known oil fields are off limits to American oil companies.” At the same time, he proposes to transition away from our use of fossil fuels for transportation and electrical power. This reduction in fossil fuel use is not because of any concern over carbon dioxide emissions, rather, Johnson resents our having to give our dollars to unfriendly or despotic foreign countries. He has a section devoted to the global warming issue.

To transition away from fossil fuels, Johnson advocates more use of biofuels, made from non-food sources, and use of geothermal energy. He explains each in detail.

Johnson has a chapter on politics and expresses some well-placed cynicism. “The reality of politics and political ideologies means that many politicians and bureaucrats, who know virtually nothing about energy, energy systems, and the economics of energy, will be making many of the decisions on what systems we use, the vehicles we drive, and how we create and pay for the new infrastructure.”

All in all, this book is a good primer for anyone wanting to learn about energy systems, their potentials and problems.

The book is published by Senesis Word Publishing and is available from Amazon.

Gasoline Prices and the Obama Energy Policy

Friday, March 4th, 2011

When President Obama took office, the national average gasoline price was $1.83 per gallon according to the Energy Information Administration. As of this writing, the national average gasoline price is $3.39 per gallon. There are many factors that determine the price of gasoline, not the least of which is turmoil in the Middle East. The price depends on supply and demand and upon the expectations of supply and demand.

I don’t know if the Obama administration is simply clueless on energy, or if there is a determined ideological effort to cripple fossil fuel supplies in order to promote renewable energy, but the effect of administration policy is to discourage and hinder domestic production of fossil fuels.

In September, 2008, soon to be Energy Secretary Steven Chu told the Wall Street Journal, “Somehow we have to figure out how to boost the price of gasoline to the levels in Europe.” Gas prices in Europe averaged about $8 a gallon at the time.

Contrary to administration rhetoric that the U.S. should become more energy independent, administration policy seems to be directed to do all it can to stifle domestic production.

Following the Deepwater Horizon accident in the Gulf of Mexico, the administration imposed a drilling moratorium. That moratorium was lifted last October, but in fact still remains in force. The Interior Department has approved just one drilling application although more than 100 are pending. A federal judge ordered that the de facto moratorium be lifted but the administration has ignored that order. In fact, in early February, the federal judge held the Interior Department in contemp of court for dismissively ignoring his ruling to cease the drilling moratorium which the judge had previously struck down as “arbitrary and capricious.” Ironically, the de facto moratorium of Gulf drilling will deprive the federal government of $1.35 billion in royalties this year.

According to the Heritage Foundation, “Obama also reversed an earlier decision by his administration to open access to coastal waters for exploration, instead placing a seven-year ban on drilling in the Atlantic and Pacific Coasts and Eastern Gulf of Mexico as part of the government’s 2012-2017 Outer Continental Shelf Program.”

 The U.S. has abundant resources of oil and natural gas in shale deposits. According to the U.S. Geological Survey the U.S. holds more than half of the world’s oil shale resources. The largest known deposits of oil shale are located in a 16,000-square mile area in the Green River formation in Colorado, Utah and Wyoming. The USGS’s most recent estimates (April, 2009) show the region may hold more than 1.5 trillion barrels of oil – six times Saudi Arabia’s proven resources, and enough to provide the United States with energy for the next 200 years. But Obama’s Interior Department is reversing Bush-era policy by delaying leases saying they need to take a “fresh look” at the situation.

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

The EPA has added costly new regulations to refineries over concern with global warming. The EPA is also denying approval of the Keystone pipeline which would increase the amount of oil the U.S. receives from Canada by over a million barrels per day.

If all this were not enough, the Interior Department has instituted a new “wild lands” policy that will bypass Congress in establishment of wilderness areas which will further delay and restrict access to our mineral resources.

The next time you fill your car with gasoline, don’t blame the oil companies for the high prices, the fault lies squarely with Obama’s energy policy.

Peak Oil Prognosticators at it again and are wrong again

Tuesday, November 9th, 2010

A new study from the University of California (Davis) proclaims: “New forecast warns oil will run dry before substitutes roll out.”

The press release begins: “At the current pace of research and development, global oil will run out 90 years before replacement technologies are ready, says a new University of California, Davis, study based on stock market expectations. The forecast was published online November 8 in the journal Environmental Science & Technology. It is based on the theory that long-term investors are good predictors of whether and when new energy technologies will become commonplace.”

Really? Might not geology have something to do with it? Predictions that we will run out of oil have been made almost since oil was first produced in the U.S. in 1859 in Pennsylvania.

The Energy Information Administration shows that world petroleum reserves in 1980 were put at 642 billion barrels. In 2010, EIA puts world reserves at 1,354 billion barrels. How can reserves more than double in the last 30 years in spite of the increasing consumption?

The fallacy in all these doomsday predictions is that they don’t appreciate the difference between how much of a resource actually exists, versus the term “known” or “proven” reserves. The term “known reserves” is a purely economic and legal construct, which has nothing to do with how much petroleum is on the planet. “Known reserves” are that part of the total resource which have been precisely measured by extensive drilling and other means, and are “proven” to be economically recoverable with present technology. It costs money to make these measurements; exploration companies have little incentive to get too far ahead because of the expense. Every year, for at least the past 100 years, published accounts of oil reserves have stated that we have just 10- to 30-years supply left.

This situation applies equally well to other mineral commodities. For instance, in 1950 the proven reserves of copper represented a 42-year supply. Although copper consumption quintupled since then, we currently have proven reserves representing at least a 50-year supply. The concept applies also to the estimated resource base itself. For copper in 1950, the estimated resource base was 100 million tons. Since then we have produced about 338 million tons and our current estimated resource base stands at 650 million tons. In other words, technology, good geologists, and the market always find more resources or suitable substitutes.

The UC study also ignores the fact that new discoveries are being made of new off-shore resources, tar sands, and shale oil and gas, and the fact that transportation fuels can be made from our vast resources of coal.

And how well did all those investors predict the sub-prime crisis?