Subscribe: The Oil Drum - Discussions about Energy and Our Future
Added By: Feedage Forager Feedage Grade B rated
Language: English
drum  earth  energy  gas  long  oil drum  oil  people  power  prices  randy  saudi arabia  saudi  site  time  world  years 
Rate this Feed
Rate this feedRate this feedRate this feedRate this feedRate this feed
Rate this feed 1 starRate this feed 2 starRate this feed 3 starRate this feed 4 starRate this feed 5 star

Comments (0)

Feed Details and Statistics Feed Statistics
Preview: The Oil Drum - Discussions about Energy and Our Future

The Oil Drum - Discussions about Energy and Our Future


The Last Post

Sun, 22 Sep 2013 13:34:33 +0000

The Oil Drum (TOD) was an internet energy phenomenon that ran for over eight years from April 2005 to September 2013. The site was founded by Prof. Goose (also known as Professor Kyle Saunders of Colorado State University) and Heading Out (also known as Professor Dave Summers formerly of the Missouri University of Science and Technology). The site took off with the advent of Hurricane Rita in September 2005 and resulted in the first 200+ comment event, indicating that there was demand for a site where concerned citizens could gather round a camp fire to discuss events impacting their energy supplies and ultimately, their well being. In eight years, >960,000 comments have been posted. Two other energy linked disasters, the Deepwater Horizon blowout and the Fukushima Daiichi reactor melt downs would see readership soar to >75,000 unique visits per day. These pages have hosted over 7,500 articles covering every aspect of the global energy system. It was not unusual for a post to attract over 600 comments, many of which were well informed and contained charts and links to other internet sources. The site would become known for a uniquely high level of discourse where armchair analysts of all stripes added their knowledge to threads in a courteous, and ultimately pro-social way that energy experts at hedge funds, corporations or universities might not have the freedom to do. It is this emergent property of smart people sharing knowledge on a critical topic to humanity's future that will be missed. The site was built on twin backbones that would often pull the readership in opposite directions. Drumbeats, edited by Leanan (who remains anonymous to this day) provided daily energy news digest and a forum for debate. And articles, written by a legion of volunteer writers, that strove to provide a more quantitative analysis of global energy supplies and the political, social and economic events that lay behind them. All the content would not have been possible without the tireless efforts of Super G, our site engineer, who maintained and updated software and hardware as the site grew and evolved for over eight years on a voluntary basis. In the course of 2013, a decision was made to archive The Oil Drum and the main purpose of this Last Post is to provide some direction to new and future readers of the vast content it contains. The main contributors are listed below along with links to where their writings can be now be found. If you are looking for content there are two main options. The first is to look for author specific content where clicking on the live hyper linked name of the contributor will take you to a page giving access to all the content produced by that author. The second option is to use the Advanced Search facility at the top left of this page. Simply enter a few key words and this will return a page of the most relevant articles. Editorial board Arthur Berman (aeberman) Arthur E. Berman is a petroleum geologist with 35 years of oil and gas industry experience. He worked 20 years for Amoco (now BP) and 15 years as consulting geologist. He gives keynote addresses for energy conferences, boards of directors and professional societies. He has been interviewed about oil and gas topics on CBS, CNBC, CNN, Platt’s Energy Week, BNN, Bloomberg, Platt’s, Financial Times, The Wall Street Journal, Rolling Stone and The New York Times. He was a managing editor and frequent contributor of, and an associate editor of the AAPG Bulletin. He is a Director of the Association for the Study of Peak Oil, and has served on the boards of directors of The Houston Geological Society and The Society of Independent Professional Earth Scientists. He has published more than 100 articles on petroleum geology. He has done expert witness and research work on several oil and gas trial and utility commission hearings. He has an M.S. (Geology) from the Colorado School of Mines and a B.A. (History) from Amherst College. Nate Hagens is a well-known speaker on the big picture related to[...]

The House That Randy Built

Sat, 21 Sep 2013 21:34:37 +0000

One of the nice aspects of the 7+ years I have been involved with The Oil Drum has been attending conferences and meeting with some of my cyber friends, who by and large figure among the nicest bunch of folks I ever met. In 2007 I attended the ASPO meeting in Houston and it was then that I met Randy Udall for the first time. Well you know what some Americans are like - you meet, you chat a while, discover you get along, down a couple of beers and before you know it you are invited to go visit. And so it was with Randy Udall.... The house that Randy built, sunk low in the Colorado terrain, provides shelter from winter storms and from exposure to summer sun. Photovoltaics, solar hot water (on the roof) and a single wood burner (chimney) provides all the energy needs. Three years later, my wife and I had a trip planned to the States to go visit Dave Rutledge (another cyber mate) at his mountain lodge in New Mexico and I thought it would be cool to visit Randy en route. We exchanged a couple of emails, he warned that his wife Leslie was cautious about some of his friends coming to stay and that his son once claimed that the family lived in a "mud hut" and by now I was wondering if this was such a good idea. But plans were made and we went to stay with Randy in Colorado for a couple of days in August 2011; on arrival, any trepidation melted away. A "mud hut", not quite. The stucco exterior finish covers thick foam insulation that in turn covers compressed earth (adobe) blocks. This provides protection from winter cold and summer heat, and thermal inertia from the large temperature swings prevalent in this part of the world. At first sight Randy's house did indeed have the feel of a "mud hut" but upon entering the reality of a beautifully and lovingly crafted passive house unfolded. I was astonished to learn that Randy had designed and built every inch of this house himself, including the manufacture of every compressed earth brick and the hammering in of every nail - in neat serried ranks. I wish I had recorded the vital statistics but the mass of bricks was carefully calculated to provide thermal inertia, keeping the house warm in winter but cool in summer. I was also very surprised to learn that all of the insulation was on the outside of the masonry structure which is the opposite of the way we build our houses in the UK. South-facing windows collect wintertime solar energy and the adobe block walls and brick floors soak up much of that heat energy, keeping the home warm through cold nights. During the summer, just opening the windows at night cools off the massive floors and walls, helping the house stay cool during hot days. Putting the insulation on the outside of the exterior walls is the only way to make this adobe wall strategy work effectively. The house was set low in the terrain, providing protection from winter storms and from the worst excesses of summer heat. Outside you find a large solar PV array, providing a surplus of electricity and solar hot water arrays on the south facing roofs providing all the hot water required and, if my memory serves correctly, some interior heating during winter time. The rather plain exterior gave way, inside, to simple, beautifully crafted, elegance. Every timber cut and every nail hammered by one man. This is a masterpiece that will hopefully endure. Inside, beautiful craftsmanship provides simple but elegant living space to match the view of Mount Sopris that dominated the surrounding landscape. Not many of us leave a lasting legacy. Randy has left memories of a wonderful and thoughtful teacher and a house that will hopefully stand as a testimony to his passion for sustainable living for centuries to come. The view out of the front window wasn't that bad either. Mount Sopris (3,952 m /12,965 ft) offered Randy and his family fantastic walking, climbing and ski mountaineering opportunities. Renewable energy and renewable transport. I am seldom pleased with the pictures I take, but there is something about this one I[...]

Twenty (Important) Concepts I Wasn't Taught in Business School - Part I

Fri, 20 Sep 2013 04:27:53 +0000

Twenty-one years ago I received an MBA with Honors from the University of Chicago. The world became my oyster. Or so it seemed. For many years I achieved status in the metrics popular in our day ~ large paychecks, nice cars, travel to exotic places, girlfriend(s), novelty, and perhaps most importantly, respect for being a 'successful' member of society. But it turns out my financial career, shortlived as it was, occurred at the tail end of an era ~ where financial markers would increasingly decouple from the reality they were created to represent. My skill of being able to create more digits out of some digits, (or at least being able to sell that likelihood), allowed me to succeed in a "turbo" financial system that would moonshot over the next 20 years. For a short time I was in the 1% (and still am relative to 'all humans who have ever lived'). Being in the 1% afforded me an opportunity to dig a little deeper in what was really going on (because I quit, and had time to read and think about things for 10 years). It turns out the logic underpinning the financial system, and therefore my career, was based on some core flawed assumptions that had 'worked' in the short run but have since become outdated, putting societies at significant risks. Around 30% of matriculating undergraduate college students today choose a business major, yet 'doing business' without knowledge of biology, ecology, and physics entirely circumvents first principles of how our world really works ~ my too long but also too short summary of the important things I wasn't taught in business school is below. The Blind men and the Elephant, by Rudyard Kipling Business as usual as we know it, with economics as its guide and financial metrics as its scorecard, is in its death throes. The below essay is going to appear critical of finance and the nations (world's) business schools. But it is too, critical, of our entire educational system. However, physicists, plumbers and plowmen do not have the same pull with respect to our cultural goals and narrative that financial folk do - as such an examination of the central assumptions driving society is long overdue. But before I point out what I didn't learn in MBA school, I want to be fair - I did learn things of ‘value’ for the waters I would swim in the future: statistics, regression, how to professionally present and to facilitate meetings, and some useful marketing concepts. Of course, like any 20 something student, 1/2 of the value of graduate school is learning to interact with the group of people that will be your peers, and the relationships and contacts that develop. Plus the placement office was very helpful in getting us jobs as well. The culture at Salomon Brothers impressed me the most and I landed in their Private Investment Department, where we were basically stockbrokers for the uber-rich - as a trainee I wasn't allowed to call on anyone worth less than $50 million (in 1993). After Salomon shut our department down I went to a similar job at Lehman Brothers. At Lehman I increasingly felt like a high paid car salesmen and after 2 years quit to go work for a client, develop trading algorithms on commodities and eventually started my own small fund. But increasingly, instead of trading or trying to grow my business I found myself reading about oil, history, evolution and ecological issues. It really bothered me that 'externalities' were not priced into our goods or profits. One day, on a hike, it struck me that what I was doing felt spiritually hollow and despite it ‘paying the bills’ I began to realize I was more interested in learning about how the world worked and maybe doing something about improving it. In 2002 I gave my clients their money back, embarked on basically a 2 year hiking trip with my dog, and a car full of books. Eventually I would obtain a PhD in Natural Resources, but like many of you my real degree was obtained on this site, interacting with the many and varied people I met and continu[...]

So, What Are You Doing?

Thu, 19 Sep 2013 04:17:50 +0000

It's September and we still have 7 more 'final' posts in the queue (myself, Joules, Jerome, Jason, Art, Dave Murphy, and Euan...) and will run them every 2 days until finished. Leanan will post a final Drumbeat later this week where people can leave website links contact details, etc.

For 8 years we read about what people think about energy related themes. I thought it would be a good idea to use this thread to highlight what people are actually doing in their lives given the knowledge they've gleaned from studying this topic, which really is more of a study of the future of society.

What do TOD members plan to do in the future? Herding goats, fixing potholes, creating web sites, switching careers, etc? I'll go first. Feel free to use my template or just inform others what you're doing. This might be interesting thread to check back on in a few/many years.....(Please no posting of energy charts etc. and let's not respond to others in this thread, just a long list of what people are doing w/ their time).

Ere we scatter to the ether, please share, anonymously or otherwise : what are people doing?


The Exponential Legacy of Al Bartlett

Thu, 12 Sep 2013 18:32:54 +0000

Dr. Albert Allen Bartlett, emeritus professor of physics at the University of Colorado, died September 7, 2013 at the age of 90. It is coincidental that, in the year that he "officially" retired from teaching (1988), I first heard his famous lecture Arithmetic, Population, and Energy (although I don't recall if that was the title at the time). I was in my last year in graduate school, and his talk was one of the keynote presentations (or perhaps during dinner) for a scientific conference. It was seemingly out of place given that the subject of the meeting was surface chemistry and physics, but it most certainly became stuck somewhere in my mind for reasons other than its novelty. Most scientists are transfixed on interesting scientific details, some with relevance to technological problems, and perhaps buzz-worthy enough to attract funding. There has never been much money in solving problems with no real technological solution. I became reacquainted with this talk in 2006, probably via a link on The Oil Drum. TOD was by its nature dealing with limits to growth (of oil, if nothing else), and over the last few years, we have discussed the various ways in which we could perhaps keep the oil flowing or replace it with something else. Perhaps the implications of exponential growth was kept in the back room somewhere, like an embarrassing relative, while the latest "game changing" solution was bandied about. But we need to continually remind ourselves that, while important, finding the next energy source or improving efficiencies the keep the economy growing are not long-term solutions for a finite planet. Below are some more reflections on Prof. Bartlett's legacy, from ASPO-USA (where he had long been on the advisory board) and from the University of Colorado. Albert A. Bartlett: Ode to a Gentle Giant Dr. Albert Allen Bartlett enjoyed 90 years of rich life on this earth; moreover, thousands of people have enjoyed and been touched by Al's life. He is of course most widely known as a tireless, eloquent, and supremely caring voice for charting a sustainable path for humanity. With seemingly endless determination, he applied his training in math and physics and skills as a master teacher to focus attention on a simple but paramount idea--on a finite planet, "growth" is unsustainable. "Sustainable growth is an oxymoron", is how Al is sometimes quoted. His most reknowned quote, however, is "the greatest shortcoming of the human race is our inability to understand the exponential function"--referring to the accelerating rate exhibited by anything growing as a constant percentage increase. Al developed a now-famous lecture that illustrated the power and importance of this mathematical phenonomenon, and reportedly delivered that lecture more than 1700 times over the following decades. That one man would be compelled to devote much of his career to the understanding of a basic, unassailable fact of life speaks volumes about the world we live in, as well as Al's great character. ASPO-USA is proud to have had Al as a longstanding member of our advisory board, and I was exceptionally fortunate to be acquainted with him in his latter years. While the nature of our relationship was professional, what I will always remember is the warmth, humility, and quiet joy that he brought to his work and his relationships with his colleagues and students. For those that dare to concern themselves with the monumental issues that concerned Al, there is a risk of gloominess creeping into our outlook on life and humanity. Al is a beautiful reminder that need not be the case. The note that Al wrote to us after he visited his doctor was filled with the peace and happiness of a man who had understood long ago what was important in life and had lived his own life accordingly. We should all be so blessed, and some of us were also blessed to know Al. In honor to Al, inspired and informed by his life and his friendship, we re-c[...]

Of Milk Cows and Saudi Arabia

Tue, 10 Sep 2013 13:59:27 +0000

Under the desert in eastern Saudi Arabia lies Ghawar, the largest oil field in the world. It has been famously productive, with a per-well flow rate of thousands of barrels per day, owing to a combination of efficient water injection, good rock permeability, and other factors. At its best, it set the standard for easy oil. The first wells were drilled with rather rudimentary equipment hauled across the desert sands, and the oil would flow out at ten thousand barrels per day. It was, in a sense, a giant udder. And the world milked it hard for awhile. However, this article isn't just about a metaphor; it is also about cows, the Holsteins of Haradh. But in the end, I will circle back to the present and future of Saudi oil production. I registered on The Oil Drum over seven years ago, and one of the subjects that fascinated me was the oil fields of Saudi Arabia. There was much discussion about the largest of these, Ghawar, and whether it might soon go into steep decline - taking the world with it. About that time, an application called Google Earth added some features which enabled users to mark up the globe with their own placemarks and such, and I set out to find Ghawar (or at least its footprints) in the vast sandscape that is the Eastern Province. Starting with published maps which could be overlaid atop the satellite imagery in Google Earth, I found some initial wells...and then a lot more...and kept going. An article authored by Saudi Aramco engineers showed well locations in northern Ghawar, and I noticed that many wells which I found yet were not on the map. I deduced that these were wells drilled after the map was drawn, and their locations seems to indicate intensive drilling in the center of the field, which was previously bereft of wells. I began publishing some of these findings on the blog Satellite o'er the Desert and was invited to contribute to The Oil Drum. In my Google Earth-enabled virtual travels around Saudi Arabia looking for oil wells and such, I have come upon many strange sights. Some of these are of natural origin yet can only be appreciated from a satellite's perspective, as is the case for this tidal pool located near a gas oil separation plant for the Safaniya oil field: Figure 1. My favorite Google Earth view, near Safaniyah oil field, Saudi Arabia There are many crop circles scattered about eastern Saudi Arabia -- by which I mean circles of crops watered by central pivot irrigation (as opposed to circles of crops flattened by aliens). A line of such circles cuts across the southern tip of the Ghawar field, seemingly following the course of a dry river bed. Figure 2. Irrigation along the southern fringe of the Ghawar Oil Field, Saudi Arabia. Arrows indicate location of features of interest. Located on this line, just to the west of the field periphery, are three rather symmetrical structures: Figure 3. Symmetrical objects of interest near Ghawar oil field. Each of these is about 250 meters in radius. It took me awhile to discover what these were, as at the time, crowdsourced mapping was just getting started. It so happens that they are part of a huge integrated dairy operation, one of the largest in the world. Fodder crops are grown in nearby circles, cows are milked with state of the art equipment, and the milk is packaged and/or processed into cheese and other products before being shipped. All of this happens in the northernmost fringe of the Rub' al Khali desert, one of the most inhospitable places on earth. Start here to browse around Saudi Arabia's Dairyland on your own using Google Maps. Turning Black Gold Into White Milk Here is a glossy PR video describing the operations: Although the original intent was to locally breed cows more suited to the Saudi climate, it seems they had to import them. Here is another video describing the transport of cows from Australia. A bit different than a Texas [...]

IEA Sankey Diagrams

Sun, 08 Sep 2013 03:05:10 +0000

The International Energy Agency has taken its share of abuse from The Oil Drum over the years for its rather optimistic forecasts. But it deserves a hearty shout-out for an invaluable resource it has on its web site: Interactive Sankey Diagrams for the World.


Sankey Diagram showing world energy flows (Click for larger view)

As long as you understand what a Sankey Diagram is, not much more introduction is needed here. You can look at individual countries, consumption patterns as well as production, and more. Click on individual flows and graph over time.


World energy use for steel production (Click for larger view)

One curiosity, though:

The world oil imports (2295) and oil exports (2218) don't match in the top graphic. "Statistical difference"?

As with data from the BP Statistical Review series, there might be occasional quibbles with the numbers. Also, I've seen prettier Sankeys. But if you've been wondering what to do with all of your time after The Oil Drum goes on hiatus, there you go.


My Last Campfire Post

Sat, 07 Sep 2013 04:13:30 +0000

I checked my user profile for this site and discovered that as of today I have been a member for 7 years and 37 weeks. Wow! So much has happened to me and my family over those years and a lot of it was shared on The Oil Drum. For reasons I’ll explain, I haven’t been around much lately. My most recent article was over three years ago. My first writings for The Oil Drum were over six years ago as guest posts through Nate Hagens, and then as a staff contributor for the “Campfire” section of the site. I am not an energy expert so my role wasn’t about modeling depletion or providing context to the energy news of the week. What I did was consider the broader relationships between energy, resources and society, and explore the implications of more expensive and less energy to our consumer-oriented economy and culture. The most complete and succinct example of this role is probably my “Beware the Hungry Ghosts” piece, which includes this passage: Several religious traditions describe what are termed “hungry ghosts.” These sad beings have insatiable appetites, with tiny mouths and huge stomachs. Modern society creates hungry ghosts among the living. We “have” more than ever, but are constantly bombarded with messages that it is never enough. The poor go to dollar stores, the middle class spend hours at Bed Bath and Beyond, the rich buy ever larger yachts, and city planners are always looking for more land and water in which to expand their urban sphere. Wants have become indistinguishable from needs. I anxiously walk among our nation of hungry ghosts, asking myself what these addicts will do when they can't get their fix? What many of us found at The Oil Drum was a place to share our anxieties with those who share our anxieties. I am not being dismissive of this at all! Many here have points of view that place us outside of conventional wisdom, and this can be socially difficult. Where else can we go to have conversations that may be impolite, misunderstood and dismissed by the hungry ghosts we live among? A fine example of thinking profoundly differently is in Kurt Cobb’s essay “Upside Down Economics” in which he gives a visual representation of U.S. GDP from the perspective of an Ecological Economist: Figure 1 Many of my articles framed topics from an Ecological Economics perspective, where the economy is a subsidiary of the planet and functions by extracting resources and depositing wastes. Essential resources like energy, mineral ores, food and fiber can only be easily ignored when they are inexpensive to buy and reliably available. Many of us are alarmed because we see existential threats to the bottom of a top heavy pyramid and would like those situated higher up to pay attention and look below. At the bottom of Cobb’s chart you see the economic sector “Agriculture & Forestry.” That is where I currently work, and where much of my writing here was about. I didn’t just explore the food growing sector, but also the so-called Food System, that includes transportation, processing and warehousing, retailing and end-use. Classic statistics discussed, and that devoted readers of The Oil Drum can probably rattle off at any cocktail party, include: The U.S. Food System consumes several fossil fuel calories for each food calorie eaten. The typical grocery store has about three days supply of goods on its shelves. Each U.S. farmer (plus machines with fuel) feeds 100 people. Figure 2. Graphic used in the post “Ecological Economics and the Food System” Two additional posts, “Save it for the Combine” and “Energy Descent and Agricultural Population” perhaps best capture the sense of the transformative change fossil fuels made in agricultural production and labor inputs, and offer some perspectives on adaptation to lower fossil fuel availability. Figure 3. The percent ag[...]

The Economic and Political Consequences of the Last 10 Years of Renewable Energy Development

Thu, 05 Sep 2013 13:22:51 +0000

I've been privileged to be an editor of TOD over the past several years, and am glad to have been invited to do a final post as the site moves to an archive status. When I started writing about energy on the blogs in 2003/2004, I was writing mostly about Russia, gas pipelines and gas geopolitics. There were so many conspiracy theories abounding on topics like the Turkmenistan-Afghanistan-Pakistan pipeline or (a bit later) Russia vs Ukraine pipeline conflicts that I felt the need to put out a different version, given that I knew the inside story on many of these issues - and that got me invited to contribute these to TOD as well. In the meantime, my job (which was, and - full disclosure - remains, to finance energy projects) slowed moved from oil&gas work to power sector transactions and, increasingly, to renewable sector deals, and I started writing about the wind business, in my mind from the perspective of a banker wanting to make sure that these projects could be paid back over periods of 15 or 20 years. While my work is now almost exclusively focused on offshore wind in Northern Europe, I still do not consider myself a 'wind shill'... but it does give me a different perspective on the debates currently going on about energy policy in various places, and on the changes to the power sector caused (among others, by renewables) that are underpinning such debates, and I thought it would be a useful complement, together with Big Gav's overview of the clean energy sector, to the other articles more traditionally focused on the oil&gas side of things. I'll focus on Germany, where the transformation has been most advanced (and even has brought a new word to us: the Energiewende), and where the consequences of high renewable penetration are most visible. A lot of rather unusual things have been happening in the Germany power sector lately, from negative prices, to utilities closing down brand new power plants and, naturally, a ferocious debate as to whether to cut support for renewable energy (as has already been done in Spain). I've long described renewable energy producers as a price takers (i.e., they don't influence market prices in the short term and have to "take" market prices as set by other factors, unless shielded by specific regulatory regimes), but we are getting to the point, in a number of places, and in Germany in particular, where the penetration of renewable energy is such that it has a real macroeconomic impact on the prices of electricity, both at the wholesale and the retail levels, and thus on the way power markets run, and on the politics surrounding them. There's the additional factor that apparent spending on renewables is targeted by governments at a time of austerity in Europe, egged on by hardly disinterested utilities. It is worth going through what's been happening in some detail. :: :: In the good old days, wholesale prices of power followed the price of natural gas, as gas-fired plants are the producer of the marginal kWh most of the time. This is still the case in the USA, and it looks like this: Source: neutroneconomy Retail prices tend to follow the average wholesale cost, plus a slice for distribution costs and taxes which can vary quite wildly from country to country: Source: eurostat But we've seen prices diverging across markets over the past two years, as shown in the following graphs: gas prices diverging sharply across continents (notably as a result of the gas shale developments in the US and increased demand for gas in Japan following the Fukushima disaster, while European prices remain largely indexed to oil): Source: Fidelity wholesale power prices diverging from gas prices: Source: Die Welt, via gwpf Note: the lines above represent long term break-even prices for, from the bottom, nuclear power plants, coal-fired plants and[...]