Tapping Shale Reserves, US Would Become World's Top Oil Producer By 2017
Hugh Pickens writes "The NY Times reports that according to a report by the International Energy Agency, the U.S. will overtake Saudi Arabia as the world's leading oil producer by about 2017, will become a net oil exporter by 2030, and will become 'all but self-sufficient' in meeting its energy needs in about two decades — a 'dramatic reversal of the trend' in most developed countries. 'The foundations of the global energy systems are shifting,' says Fatih Birol, chief economist at the Paris-based organization, which produces the annual World Energy Outlook. There are several components of the sudden shift in the world's energy supply, but the prime mover is a resurgence of oil and gas production in the United States, particularly the unlocking of new reserves of oil and gas found in shale rock. The widespread adoption of techniques like hydraulic fracturing and horizontal drilling has made those reserves much more accessible, and in the case of natural gas, resulted in a vast glut that has sent prices plunging. The agency's report was generally 'good news' for the United States says Michael A. Levi, senior fellow for energy and environment at the Council on Foreign Relations, because it highlights the nation's new sources of energy but Levi cautions that being self-sufficient does not mean that the country will be insulated from seesawing energy prices, since those oil prices are set by global markets. The message is more sobering for the planet, in terms of climate change. Although natural gas is frequently promoted for being relatively low in carbon emissions compared to oil or coal, the new global energy market could make it harder to prevent dangerous levels of warming (PDF). 'The report confirms that, given the current policies, we will blow past every safe target for emissions,' says Levi. 'This should put to rest the idea that the boom in natural gas will save us from that.'"
The folks over at The Oil Drum aren't quite so optimistic: shale reserves may have an abysmal EROI. And, of course, Global Warming is a liberal myth.
When the partisan political aspect of an issue is already included in the original post.
Bettter to shut down discussions about AGW before they start! It's settled science!
I have mod points. The reign of terror begins now.
Maybe now the US will stop invading every country that has oil reserves.
We've heard it before, and we'll hear it again.
"In 1975 MK Hubbert, a geoscientist working for Shell who had correctly predicted the decline in US oil production, suggested that global supplies could peak in 1995. In 1997 the petroleum geologist Colin Campbell estimated that it would happen before 2010. In 2003 the geophysicist Kenneth Deffeyes said he was "99% confident" that peak oil would occur in 2004. In 2004, the Texas tycoon T Boone Pickens predicted that "never again will we pump more than 82m barrels" per day of liquid fuels. (Average daily supply in May 2012 was 91m.) In 2005 the investment banker Matthew Simmons maintained that "Saudi Arabia ⦠cannot materially grow its oil production". (Since then its output has risen from 9m barrels a day to 10m, and it has another 1.5m in spare capacity.)" (and that's just since 1975).
Personally, if the US has these sorts of reserves, we're idiots to tap them today. Use it as leverage to keep the Saudis pumping THEIR oil at moderate prices, and exhaust the supplies outside the US before touching our own.
-Styopa
"and will become 'all but self-sufficient' in meeting its energy needs in about two decades" for about two decades.
All these arguments fail to account for increasing US oil demand. They invariably keep demand fixed at today's demand. So while the US could "become the world's #1 producer by 2017", by 2020 it would probably be consuming everything it produces and be importing again. Provided China left any oil for anyone else by then...
Seven puppies were harmed during the making of this post.
... it's the refineries. If the US-ians don't build a few of these things they'll still be importing gasoline, keeping the price up. Pumping more oil merely generates revenue for the producers when they sell it on the world market...
Global Warming is a liberal myth.
Ok. So stop being a consumer. It's that simple. Sure, it means paying more and putting up with some things that oil consumers don't have to put up with but if you're so concerned than stop buying what they're selling. If enough people do it and if enough money goes into green tech than you'll be able to end the oil industry.
If you're waiting for the government to hold your hand than you're going to wait a long time before they really abandon the oil culture. By a long time I'm talking generations.
There's your choices. What's your next move? Grumble and accept your fate at the gas pumps or do you become forward thinking and move on from oil? I can tell you where I'd place my bets.
we consume about 18 million bbl/day of petroleum liquids. we produce 8, 3 of which is ethanol, and we're not going to just up and double our ethanol production.
assuming, stupidly, that there's no growth whatsoever in demand over the next 2 decades in the US, or that improvements in efficiency and mileage will counter any growth in overall demand, we're going to add about 13 million bbl/day of tight oil in 20 years?
or is natural gas going to swoop in and run all of our cars by then? this doesn't add up at all.
i understand the ability to top saudi arabia, even for a bit; if we really went nuts ramping up tight oil production we could theoretically cross to number 1. but we'd still be importing a ton of oil.
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Is this the MPAA? Is this the RIAA? Is this the DMCA? I thought it was the USA!
On defense, when you don't have to bomb and/or invade every country that threatens the flow of oil to the USA anymore!
Thanks to the Iraq war, Canadian oil sands, and now the vast reserves of the USA, gas is more expensive but still affordable.
If it suddenly doubled in price, our economy might collapse.
Is it time for us to admit that petrochemical energy is a strategic objective worth considering? I don't like the idea of "wars for oil" any more than you probably do, but if we don't, a lot of people will suffer and have their livelihoods destroyed.
With these wars, the world can have a consistent oil supply at a reasonable-ish price.
Moral uncertainty has arrived. It feels bad. And yet, for now, it makes sense.
* - I don't believe Iraq was about oil per se. It was about keeping the middle east under open market control in order to counter the Russian oil supply, which otherwise would control Europe financially, putting it in the hands of the US's and Europe's traditional opposition. In addition, Iraq was about the principle that if someone hits you hard and hides behind any nation, hit the biggest bad guy who might support them and destroy his ability to protect them, which will make others think twice about supporting them.
I hate whenever i hear people say "Well, if we drilled more we could be self sufficient from foreign oil and have oil prices come down.
NO, it does not happen that way.
The US government does not drill oil. They lease out the mineral rights to companies such as shell, BP and Exxon who extract the oil and then __sell it on the world market__. Let me say that again. The oil goes into a central market and could be shipped anywhere if the costs are right. Just because its produced here does not mean it stays here.
Another example was Norway after Hurricane Katrina. Their oil and gas prices jumped significantly after the hurricane in the gulf, yet they are a major exporter and producer. Why? Because supply went down after the storm, so prices had to go up. It didnt matter that they got all their own oil, the world markets made the prices go up.
This post and a lot of comments make it seem like the oil produced would stay in our country and only used by us. Yea right, it would be sold to the highest bidder on the market, which will probably be China in a couple of years. Meanwhile our country is turned into a wasteland from this and fracking.
...
Personally, if the US has these sorts of reserves, we're idiots to tap them today. Use it as leverage to keep the Saudis pumping THEIR oil at moderate prices, and exhaust the supplies outside the US before touching our own.
Oil is a commodity.
If it's not on the market, it's not on the market.
US: Saudi Arabia, pump more oil and lower your price!
S.A.: Umm, no.
US: OK, well go develop our oil shale!
S.A.: (waiting around, still not pumping, still charging more, still funneling all that money to Islamic fundamentals....)
Umm, yeah. Fail.
The us is swimming in natural gas and oil reserves. BUT.
We should use up everything we can from the rest of the world first while we can afford it.
Don't you play video games? When a resource is limited, use an unlimited resource to trade for the limited resource. And save your own stockpile of the limited resource for the endgame.
The future is comming. And we still need more vespene gas.
"The second thing that nobody thinks very much about is the decline rates shale reservoirs experience. Well, I’ve looked at this. The decline rates are incredibly high. In the Eagleford shale, which is supposed to be the mother of all shale oil plays, the annual decline rate is higher than 42%. They’re going to have to drill hundreds, almost 1000 wells in the Eagleford shale, every year, to keep production flat. Just for one play, we’re talking about $10 or $12 billion a year just to replace supply. I add all these things up and it starts to approach the amount of money needed to bail out the banking industry. Where is that money going to come from? Do you see what I’m saying?"
exactly. even if we were to somehow conserve our way to half our current usage and go full-bore with hydrofracking basins (which wouldn't last long, those basins carry a few billion barrels), we'd still pay through the nose unless we full-on nationalized our oil market and kept it all for ourselves.
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Is this the MPAA? Is this the RIAA? Is this the DMCA? I thought it was the USA!
Any estimates on how much it'll cost to move New York? And Los Angeles? Barcelona? Boston? London? Shanghai? Tokyo? Bangkok? Mumbai? The Netherlands? Sydney? Venice?
I'm glad it'll be your grandchildren footing the bill.
exactly. besides, the worlds economies are already inexorably tied together, but of course its only important to be "independent of foreign oil". what about being impervious to financial problems in europe, for example? (not saying that we dont cause financial problems for anyone else, just an example). well, its wishful thinking i suppose.
'The report confirms that, given the current policies, we will blow past every safe target for emissions,' says Levi. 'This should put to rest the idea that the boom in natural gas will save us from that.'
Wait, what? There is an idea that natural gas will curb CO2 emissions? Natural gas may burn "cleaner" and it may have a slighter higher energy density, but that doesn't change the equation: CH4 + 2 O2 -> CO2 + 2 H2O. Are we really so bereft of a basic grasp of chemistry to think that the CO2 released from natural gas doesn't count?
The link in TFA to The Oil Drum questions the whether shale oil can be competitive because of the costs associated with extraction; basically that the oil is too spread out in the shale. Those costs certainly aren't stopping them from trying. Why not put those resources into carbon-neutral energy generation? Fracking? Sure, let's give it a go, I'm like 85% sure it won't contaminate aquifers or cause earthquakes. Deep-water drilling? Sure, I like a good challenge and there's no chance that we'll wreck an entire ecosystem. Shale oil? There's only one way to find out if it's profitable! Solarthermal, biomass, photovoltaic, wind, tidal energy, geothermal? I don't know... sounds risky... and kinda hard... I'm not so sure I can make money with any of those... and I already picked out the paint for my new horizontal drilling rig.
The agency's report was generally 'good news' for the United States says Michael A. Levi, senior fellow for energy and environment at the Council on Foreign Relations, because it highlights the nation's new sources of energy but Levi cautions that being self-sufficient does not mean that the country will be insulated from seesawing energy prices, since those oil prices are set by global markets
Why exactly do we need to ramp up oil and gas production when the prices are set by an international cartel? We start pumping fossil fuels into the market and Saudi Arabia and Russia just turn down the facet; prices rise and they're making the same money as before by producing less. Yay, it was worth raping the environment to have no impact on energy prices because we're "self-sufficient" now!
This headline reads to me like "US Would Become World's Top Phone Booth Producer by 2017." Are we all going to act surprised when that hippie fantasy we call a "green economy" becomes a reality for the EU or China? You know, like we were all shocked that Romney performed exactly as the polls predicted.
Am I missing something here?
Actually, I wrote my thesis on life experience.
To put things very simply, the largest problem is in-ground extraction of heated shale to get liquid causes expansion, making it hard to get to anything underneath (all the fractures and boreholes squeeze shut and the ground can hump up). Digging it up and doing stuff with it that way is like dealing with very very hard coal but with a lot less energy recoverable from it per unit volume, so almost always pointless since there are oil from coal techniques that would probably give you more for the same effort. Thus the depth of the reserves is fairly meaningless if you can only get to the top layer. :)
Enough of that, I need to get some sleep so that I can get up early and not see the sun in the morning
Why can't they just use solar powered drills?
Sig. Sig. Sputnik
I'm not saying I'd recommend that or that it would bring prices down, but the government has more than enough power to make it happen if you buy the right congressmen.
It's all about NET energy. Otherwise, why bother? The total net energy contained by all the oil extracted up until now is MUCH greater than the energy contained in the oil that's left. So whether we've hit peak oil or not is irrelevant. What we're facing is the net energy cliff, at least as far as oil goes. Natural gas is a bright spot, assuming the government's numbers aren't political numbers. If they're real, domestic natural gas represents the equivalent of 44 years worth of oil. In reality, there will be waste and loss, so 30 years is more realistic. Still, anything that extends our energy supply is a good thing.
In the long run, we've got nuclear or nothing if we want to continue to have a large scale industrial civilization.
Please do not read this sig. Thank you.
What I'm seeing here is a lot of people interchanging production with reserves.
It looks like the US wells are pulling the oil out of the ground as fast as they find it boosting production. Whereas the Saudis are trickling out their oil based upon demand and prices. If they went apeshit like the Americans, they'd blow the doors off of the US in terms of production.
It's only American oil and gas wells and coal mines that produce global warming. If the stuff comes out of the ground in Saudi Arabia or Iran it's OK. Just another way to siphon money out of the USA and into the third world.
And he was right, because global oil production peaked in 2008 and we are extracting less now than we did in that year.
What, you meant something different? OK then, write something different instead of attaching whatever bullshit baggage you have to a technical term.
We're freakin' drug addicts :
we need our daily dose, and when our shady dealer doesn't play fair, we look beneath the couch.
We find some dirty old bag of crack, and scream "Yeah! We're saved! We solved our problem once and for all!"
We should all be looking at burning Zombies from now on in. It will become the biggest renewable resource in the near future. If you get the loading mechanism right you can even refuel on the run.
Talking about EROI is about as meaningless as talking about ROI. Nobody cares about ROI in and of itself. You have to add time to the equation. The relevant measures in economy are measures of rate of return on investment. The relevant energy measures will always be measures of rate of energy return on energy investment.
Simple thought experiment: Company A builds a hydroelectric dam that lasts for 120 years and has an EROI of 120. Company B builds wind turbines that last for 25 years and have an EROI of 30. They both invest 1 unit of energy at year one. After 25 years company A has produced a net amount of (-1) + 25 = 24 units of energy. Company B has produced (-1) + 30 = 29 units of energy. The wind turbines are a better investment than the hydro dam from a purely energetic perspective (but not necessarily from an economic perspective).
It gets even worse for the hydro dam when you take into account that it takes as much as 20 years to build it, locking up energy investments for that time, while wind turbines only take a year or so from factory to operation, thus locking up energy for a shorter amount of time. Now I'm not saying that wind turbines are better than hydro dams. The examples could have been about any two technologies. All I'm saying is that EROI is bullshit if you use it without taking time into account.
This means now the US can set about selling off our natural resources to the highest bidder like every other Third World shithole.
You are welcome on my lawn.
Currently petroleum is still relatively inexpensive. Why not keep these supplies untapped and in our back pocket for when there is real demand. Rushing to get at these reserves merely to push down prices slightly or reduce foreign dependency seems foolish.
Furthermore, despite the incessant mantra, the majority of our oil does not come from the Middle East.
According to the Argonne National Laboratory, it takes two barrels of water to produce one barrel of oil shale liquid. A lot of the shale rock is out where water is already being fought over between farmers, cities, and Native Americans.
If Slashdot were chemistry it would look like this:Cadaverine
. The oil goes into a central market and could be shipped anywhere if the costs are right.
That's a myth.
Refineries are generally built to process oil from a particular field, or a particular class of fields. You can't ship tar sands off to a light sweet crude refinery and expect to actually be able to refine them.
It's particularly bad for the heavier ones, like the sands and shales, since each deposit has a different set of impurities, which mean that different catalyst properties are required to avoid poisioning.
Of course, the end products are interchangable: diesel is diesel and Jet A is Jet A. So a failure in one supply means that the price of end producs goes up, so people can charge more for the feedstocks.
SJW n. One who posts facts.
Lots for Americans to celebrate here:
Anything that helps to wean us off Middle Eastern, North African, and Venezuelan oil is a good thing. War, support for nasty dictatorships, terrorism, patrolling the Persian Gulf: it all goes away, or becomes someone else's problem.
Natural gas is a much cleaner way to generate electricity than coal.
Jobs, and lots of them.
Cheap gas = more local chemical and plastics plants, which depend on the stuff.
Energy exports help our balance of trade.
It helps prove that private sector ingenuity and enterprise are still a good thing. The government has had little or nothing to do with this, other than throw obstacles in their path.
There's no proven ecological harm from fracking, and if there will be, solutions can surely be found. For example, tainted water supplies can be prevented by keeping the wells correctly sealed.
it's = "it is"; its = possessive. E.g., it's flapping its wings.
Actually, taxing exports requires a Constitutional amendment.
Because that's how this world will move forward. Squeeze every drop of oil from anywhere you can until there's nothing left, then look around wide-eyed after the damage is done and blame others for a lack of foresight.
*Big Sigh*
The US will never be an exporter of Oil. The reason that the US is such a massive 'importer' of oil is that the US is just about the only place left with refineries. Everyone ships their crude to the US to get it refined. If the US started exporting oil, the people they'd exported it to would just have to ship it straight back to the US for processing.
That is the reason why the US is the worlds largest importer of oil, while simultaneously being the largest exporter of petroleum.
The whole 'dependency on foreign oil' thing is a load of bollocks, and I was saddened to hear Obama perpetuate the myths and wooly thinking in his recent speech.
Fine. Here's how you solve your 'dependency' on foreign oil, close your refineries. Yes, it'll do billions of dollars of damage to your economy, because you're not earning money from refining the world's oil anymore, but I'm sure someone else will be willing to 'take one for the team' and pick up where you left off.
Oh, those nutty "environmentalists" in that "current administration" - what hijinks will they come up with next?
Here in reality, nobody loves oil more than an incumbent politician - of either major party. Perhaps you haven't noticed that being covered on Faux News, so I'll give you a few key quotes:
"here's what I've done since I've been president. We have increased oil production to the highest levels in 16 years. Natural gas production is the highest it's been in decades. We have seen increases in coal production and coal employment." -- Barack Obama, 2012-10-16
"I'm all for pipelines. I'm all for oil production." --Barack Obama, 2nd presidential debate
Now, I know that all the Birthers and Teabaggers who believe that the President is a "Seekret MOOSLIM!" automatically turn anything he says inside-out, but there are some simple, irreducible facts. First, the oil will run out, and second, nobody in power has any viable plan for dealing with that. Including Barack Obama, who loves the dirty energy industry payola at least as much as any Republican. Mitt Romney closed down coal plants, while Obama has been seizing inactive oil leases (some of them deep under the sea) and re-leasing them to companies who promise to develop them. But if Romney had actually taken office, you can bet he'd do the same about-face that Obama did, and suddenly become a good chum of the Texas oil industry.
Every US President since Reagan has been a promoter of dirty, unsustainable energy production, and that's just plan fact. Your persecution fantasies about super-powerful "greens" are just that, fantasies. Greens are powerless, as proven by the fact that the majority of Americans want clean power and what their government is giving them is the same old same old.
Government of people, for the people, by the people has perished from this Earth.
There are various quality of oil grade, and the energy required to produce them. We long finished to find new sweet crude easily refinable source. We have switched to exploiting in the last decade low grade quality crude. And now we are speaking of exploiting very bad quality crude (if i dare name it that way) shale which take a lot of energy to generate few oil (still energy positive). We have reached the bottom of the bottom. There hasn't been new source discovered in what, a decade ? The peak oil finding field has long passed behind us, and now we are in the peak oil production , sure we are finding way to exploit very bad quality crude, but make no mistake , the sweet crude of 70 years ago has no comparison to the shitty shale. Next might be methane hydrate if somebody trust themselves to that. But we are at peak oil.
The oil goes into a central market and could be shipped anywhere if the costs are right.
What are you talking about? There's no central market for oil. And that's because shipping costs aren't "right". Sure, there's only so far the North American markets (there are several, such as West Texas crude, Alberta crude, New York Harbor regular gasoline, etc) can diverge from the rest of the world before it's more profitable to ship elsewhere. But higher local production does results in some noticeable degree of cheaper local oil.
Second, exporting oil does help with balance of trade which is a remarkably large outflow of wealth from the US. Keep in mind that oil consumption is a large part of the reason that the US has a huge trade deficit in the first place and the usual reason people complain about not being self-sufficient.
You assume they'll label it as a tax. While we might call it a tax, they'll call it the Bald Eagle Investment Bureau for Environmental Restoration Act.
I'm saying that the very same people who bitch about some endangered fly being harmed by an oil rig don't seem to mind when something they like is built on the same spot.
You will be able to find some wacko that reifies your pre-existing beliefs. Then you can think of /all/ environmentalists as a bunch of wacko hypocrites, and indulge in sick fantasies about how environmentalists really kill people with their stupidity.
And then you feel you know something, and therefore don't need to learn anything about what mainstream environmentalists actually think, and what mainstream science actually says, and also some of the successes of the environmental movement.
Buddhists call this protecting your ignorance.
Like all pain, suffering is a signal that something isn't right
Figures that this would get coverage, but none of the analysis that shows how full of crap this report is. The US production of *crude oil* is only about 6.2 mmb/day - substantially lower than the ~10mmb/day produced by the Saudis. The IEA has included Natural Gas Liquids (NGL) in their numbers to magically claim the significant increase in US production. Given that the US consumes about 17-18 mmb/day of crude oil, it would take nothing less than a seismic shift in either production or consumption to achieve 'self sufficiency'. Not to completely downplay the significance - we are indeed awash in far more natural gas products than in the recent past and that shouldn't be missed. However, there is a lot of evidence that the depletion curves of the shale plays are not favorable, so extrapolating what is occurring now out 10-15 years is a fools game. In other words, this is basically a PR piece designed to assure investors that the oil industry is 'A-OK' - no need to worry and keep pouring the money in. Taking it as actually reflecting anything about reality would be a mistake.
I agree. This is the lesson to be learned from Age of Empires. The last man standing is the one with remaining natural resources. You gather the remote stuff first and when it's all gone then you mine your local reserves. OTOH if the US soon becomes the largest producer while it's already the largest consumer, that doesn't say much about availability for the rest of the world.
The age of petroleum, ushered in by the gusher in Titusville Pennsylvania in 1860s, will end with more than half the oil still left in the ground. Oil prices are very unlikely to top 120$ a barrel for sustained periods of time. It might spike to 150$, but will quickly drop back. Shale oil, tar sands oil, oil from coal, etc are all profitable at prices about 100$ a barrel. Solar and wind beat fossil fuels when oil goes above 100$ a barrel.
The only huge problem is energy consumed at fixed points (homes, offices, factories) can be switched to alternative energy relatively easy. But the transportation sector (gasoline for cars, diesel for heavy vehicles, kerosene for aviation) is very heavily dependent on oil. They don't switch to alternative energy easily. But new technologies are emerging. But as the oil price goes up, things will start to change. 90% of the cars are driven less than 60 miles a day. Trucks can stretch the diesel by switching to more efficient diesel-electrics, CNG/LPG and other forms of fossil fuels that are not from Arabia. Arab oil is managed by the big oil companies who know all this. They keep the price to maximize profits without giving a toe hold for the alternative technologies. So it is very unlikely they will let the price spike much above 120$ a barrel. But all their manipulation will just delay the inevitable.
We will leave most of the coal, natural gas and crude oil, in the ground.
sed -e 's/Chuck Norris/Rajnikant/g' joke > fact
Correct! Let's follow it a little further, where are those companies even based?
BP = BRITTISH Petrolium
Shell is a US based subsidiary of the non US based Royal Dutch Shell
Exon is US based
How's 1 out of 3?
The proposed plan would fence off a majority of the initial blueprint laid out in the final days of the George W. Bush administration. It faces a 30-day protest period and a 60-day process to ensure it is consistent with local and state policies. After that, the department would render a decision for implementation.
“This proposal will place further limitations on the exploration and development of our country’s natural resources and is yet another example of how this administration continues to stand in the way of North American energy independence," Rep. Ed Whitfield (R-Ky.), the chairman of House Energy and Commerce's subcommittee on Energy and Power, said in a statement to The Hill.
Considering the techniques have been linked to some odd seismic activity as of late ( notably earthquakes in regions that don't normally see them ) I would think we might be rather well off in the Oil business as long as we don't crack the damn continent in half trying to get to it :D
Ok, we have a lot of oil and gas. So why not make it illegal to sell in the international markets? Keeping it all for home use would increase our economic strength enormously. Selling it to nations that will simply use it to make products and sell those products inside the US sounds like bad business to me.
US-ians in fact export gasoline now because we currently have excess refining capacity.
Although in 2010, we net imported about 269K barrels of gasoline, today (2012) we net export about 439K barrels of gasoline.
Why?
Because USA refiners on the Gulf coas are now playing a profit arbitrage "trick". They are sourcing some of their oil from the US over land (basically at west-texas intermediary crude prices), and selling the refined products (gasoline, diesel), as if they were based on Brent Crude oil (the benchmark crude oil price for refineries that source to the USA via gulf coast ports). WTI is currently about $15/barrel cheaper than Brent.
This gives the gulf-coast refineries a huge incentive to be at full production sourcing WTI-oil as they are making more profit per barrel now relative to the offshore refinery competitors (that mostly need to pay the benchmark Brent Crude oil prices for their sources unless they also have cheaper internal sources to draw on). Also since gasoline usage is down (thanks to great recession) these things flipped the US to being a net exporter of gasoline.
Things are never as they always were...
you gotta have a steady local source of energy, but to dominate, you have to claim the far away fields before the others
Look at this paper:
http://www.circleofblue.org/waternews/wp-content/uploads/2010/08/oilshale-assessment-2010-for-water.pdf
You can calculate EROI for two reason: one is cost, the other is greenhouse gas emissions.
For the first, that's a calculation energy companies do in order to see whether it is profitable and competitive, and you can bet that it is. That means the EROI on shale oil can't be too far from the EROI on regular oil because otherwise it wouldn't be profitable to extract it..
To calculate greenhouse gas emissions, you need to include "self energy" as a cost. But EROI-with-self-energy is a poor measure there because big differences in EROI translate into only small differences in carbon emissions. An EROI of 1:1 emits less than twice as much carbon as an EROI of 40:1. A better measure is carbon emitted per unit energy.
To break this down for you, there are three categories of people: (1) people who deny global warming, (2) people who don't give a f*ck, and (3) people who want to do something about it. If you look at it, you'll find that most people who oppose (3) are in category (2) not category (1).
The issue with oil consumption is a root cause for the pipeline. I understand folks need to use oil. However, the more important issue to me is where the pipeline runs.
The original construction plans call for going through one of the largest aquifers in the midwest. The Ogallala Aquifer powers most of the agriculture in the midwest. If that aquifer gets polluted, some of the best farm land in the world would have to be irrigated by something else OTHER than that water source. After moving the original pipeline by request of the Obama administration, there are still reservations by environmentalists and geologists.
http://www.washingtonpost.com/national/health-science/keystone-xl-pipeline-may-threaten-aquifer-that-irrigates-much-of-the-central-us/2012/08/06/7bf0215c-d4db-11e1-a9e3-c5249ea531ca_story.html seems like a good summation.
Restricting exportation entirely, however, does not; we do that already for, e.g., ITAR.
I think everyone is missing the point. We don't need oil (or any alternative e.g. hydrogen, electric, nuclear etc.) if we don't need cars.
80% of the U.S. developments were built in the last 50 years. That's about how long we have been totally dependent on oil for. The suburban experiment is called he suburban experiment for a reason. Nobody knows how long it will last, 50 more years possibly? I sure hope not. I see a large movement of people who are sick of being stuck in traffic each day, and all of the ills which it creates who would rather be living in real neigborhoods within walking distance of necessities or at the very least, walking distance of public transit. People always go on expensive trips to Europe and then are depressed for months when they return to their dull suburbs, wondering why America can't at least look nice. It really confuses people, but the problem is just 50 years of bad design practices with absolutely no concern for human beings. I highly recommend reading some Howard Kunstler before spending tons of money on an electric car you may regret purchasing.
I think everyone can appreciate how sensible this is.
We still have oil energy for what looks like at least another decade, so we need to get our act together in this time.
Germany has made strides toward this goal.
Story about shale oil and production.
Endless arguments about Jews and Arabs.
Geeks are the lowest form of human scum.
To break this down for you, there are three categories of people:
Wait, what? Not two? I'm used to there being two. Or 10.
(1) people who deny global warming, (2) people who don't give a f*ck, and (3) people who want to do something about it.
Ooo! I'm in that second category! IPCC models themselves could not calculate the number of fucks I fail to give!
If you look at it, you'll find that most people who oppose (3) are in category (2) not category (1).
Huh? I don't oppose anyone. Cite? Did you model this? Did you take negative feedback into account? What part of not giving a fuck are you not getting? Maybe we need category (4) black hearted misanthropes who laugh at the self inflicted misery of humanity. Who other than deluded ideologues who believe in some fairy tale worthiness of mankind give a shit anymore?
Right now we import 45% of our petroleum. Adding 1.5 million barrels of production to regain worlds largest producer status would cut this to 30%. Optimistic projections are that further production increases plus conservation plus green energy might make US energy independent around 2030.
The unratified Kyoto carbon emission treaty stipulates cutting carbon emission to 5% below 1990 levels. Right now we have turned back the clock to 1992 levels. This was primarily due the Great Recession cutting energy consumption plus converting about a quarter of coal electricity to natural gas. Another large chuck of electricity generation will be converted to natural gas the rest of this decade. Combined with Bush/Obama energy efficiency laws, the US will reach the Kyoto limits before the end of the decade.
Similar cause, different fuels.
So now don't use those resources in the shale. Instead, keep buying 'cheap' oil from the mid-east and such. Use up their reserves and then we'll have world domination! Evil-Cackle!
>>Of course, the end products are interchangable: diesel is diesel and Jet A is Jet A.
Unless you live in California. :p
http://en.wikipedia.org/wiki/Energy_use_in_California#Petroleum
Levi cautions that being self-sufficient does not mean that the country will be insulated from seesawing energy prices, since those oil prices are set by global markets
This is why a number of nation states, companies, and organizations promote conflict in the Middle East and vastly exaggerate the threats present there. "Instability in the Middle East" has for decades been the prime justification of high oil prices. Not "increased demand by China and India," which do not correlate with spot oil prices, nor "The Summer Driving Season," nor any of the several other horse-shit justifications that are trotted out one after another with admirable regularity. It is a sucker's game, and we are the suckers.
Nuclear is eeeeevil, so it can't be a part of the solution, even if it is safe and effective. So those environmentalists are part of their own problem.
Yet that is *exactly* what is happening with the construction of the Keystone XL; Canadian tar, piped to Houston refineries.
"Construction of this pipeline will lower gas prices for the US consumer!"
Sorry; I meant the refined products will mostly end up aboard the supertankers sitting next door to the refineries so oil companies make more money selling it on the international market instead.
Funny how that last bit never gets talked about...
No. That's not going to happen.
Obama et al. waited till three days after the election to obviate two thirds of all western tar sands and shale. The US has been and will remain completely hostile to all such development.
Energy poverty. You voted for it.
An article I read about Canada's efforts to mine their oil sands basically showed, as far as I can tell, that they have created a massive sewer pit. A beautiful part of the world has been destroyed, along with the homes of people who once lived there, not to mention the animal life.
While it can be shown that there are safe ways to extract oil from sands and shale, it has also been shown that companies put little emphasis on safety and the environment. They cut corners in every way possible in order to increase their profit margin. After the inevitable happens, they point the finger elsewhere. Our laws encourage this behavior.
. The oil goes into a central market and could be shipped anywhere if the costs are right.
That's a myth.
Refineries are generally built to process oil from a particular field, or a particular class of fields. You can't ship tar sands off to a light sweet crude refinery and expect to actually be able to refine them.
It's particularly bad for the heavier ones, like the sands and shales, since each deposit has a different set of impurities, which mean that different catalyst properties are required to avoid poisioning.
Wasting five mod points to call bullshit...
And yet we have the petroleum industry and their government lackeys falling all over themselves to get that pipeline built, so they can, what? That's right, carry all that oil down to the gulf coast where it can be refined and/or exported. Nice try
Why did it leak out so much oil? Because it took so long to plug it.
Why did it take so long to plug it? Because it was so deep.
Why was it so deep? Because environmentalists got shallow coastal drilling banned back in the early 80s.
This really shouldn't suprise anyone. For most of the history of Oil Production, the USA has been the world's largest producer. We only lost the title in the 70's (I was a kid, so yes, I remember us being the largest before). We never left the top three, and the Saudi's never outproduced us by a large percentage.
I even remember back in the 70's being told that we had so much shale that we could easily keep leading the world, but it would probably stay put until we figured out a way to get it more cheaply, or the prices raised a fair amont.
Both have happened, so here we are.
Actually, taxing exports requires a Constitutional amendment.
Bullshit. You never actually read the Constitution, did you? Where did you get the idea that taxes need a constitutional amendment?
Free Martian Whores!
Israel did not ask to be attacked by their neighbors in 48, 68, and 73.
'68?
Did you perhaps mean 1967?
You know... as in the War of Attrition, which was continuance of the Six-Day War, which was started by Israel, in which they've taken a shitload of land, from Jordan, Syria and Egypt - causing the War of Attrition AND the Yom Kippur War of 1973?
Also, you ARE aware that the attack of 1948 started as a civil war, arising from Jewish-Arab conflicts from way back when the region was under the British rule?
The Jews did not ask to be labeled "Apes" and "Pigs" in the 7th century Mein Kampf read every day by Muslims worldwide.
Whoa, whoa, whoa, whoa Nelly!
Did you actually read that line in Qur'an somewhere?
Cause... For one thing, that language there sounds A LOT like some claims I've seen in some "educational videos" about Jews.
Only, the claim was how Jewish holy scripture claims that all non-Jews were cattle etc.
And the video originated from a site where people have a strange fetish for Gothic Script fonts and Hugo Boss clothing.
Naturally, Googling for those passages I found no such claims in actual Jewish scripture (sorry, don't recall what part of Tanakh was misquoted), and where there was SOME similarity to the claims in the video it was stretched and distorted beyond recognition so it would fit that Gothic Script mold.
For the other thing...
Applying the same principle to your statement and Qur'an, again... I found no such quote.
Searching for Jews, there appear to be some lines mentioning Jews in various brackets, which may sound inflammatory if one goes there looking for a fight - until you click on the full text and find no mention of Jews in the actual text.
It's almost as if someone was INTERPRETING JEWS into those lines, in a rather informatory way.
Like when they were designing the site. Hmm...
And what's even funnier, all those lines found there that do mention Jews specifically, are from contemporary translations.
20th century and newer. Hmm...
THERE IS a mention of apes and pigs though.
Say, "O People of the Scripture, do you resent us except [for the fact] that we have believed in Allah and what was revealed to us and what was revealed before and because most of you are defiantly disobedient?"
Say, "Shall I inform you of [what is] worse than that as penalty from Allah ? [It is that of] those whom Allah has cursed and with whom He became angry and made of them apes and pigs and slaves of Taghut. Those are worse in position and further astray from the sound way."
Now... one might bend and stretch those words and say that they refer to Jews and Jews alone and that they are being called "apes and pigs".
Or... One might take it at face value and say that those lines recognize prior scripture (Jewish and Christian), addresses those followers of such scripture who have something against Muslims solely on account of them being Muslim, and then slyly evokes Pascal's Wager against those haters - cause we all know how god is known for doing nasty shit to non-believers.
Just because two people are fighting and have been at it for a long time does not mean both sides are guilty. Sometimes there is an aggressor and a victim.
If the conflict lasts for two or more generations, and there are people from those generations killed fighting on both sides - yes, they are both guilty.
It no longer matters who started it first.
All it matters is who will have the balls to end it peacefully instead of making the next generation a slave of conflict started generations ago.
Mit der Dummheit kämpfen Götter selbst vergebens
By moving our new commercial vehicles and large passenger vehicles to Nat Gas, we can drop the oil imports within 5 years. That was the intention of the Nat Gas Act. sadly, it was killed by idiots that only back oil. With gas/diesel, you have no economical alternative. Even at $150/bl, the ONLY bio-fuel that can compete would be Joules Energy. Yet, we have loads of idiots calling for us to stay with Oil.
But small electric cars combined with Nat Gas larger vehicles that are then switched to serial hybrids using Nat Gas, will bring us Independence quickly. After all, it is the gal of oil that you do not need that is the easiest to solve.
I prefer the "u" in honour as it seems to be missing these days.
Have you ever stopped to consider the possibility that you might be the one who is wrong? Arrogance plus ignorance is a bad combination.
Yes, it stays here, except in special circumstances where the producers have good reason to request and are granted an export license.
http://cfr.vlex.com/vid/754-2-crude-oil-19634635
The US market was the one feeling the pressure from losing that capacity, causing prices to rise. World markets need not apply...
Slashdot gets worse every day... Pipedot: News for nerds, without the corporate slant
Actually, if we quit using just oil for transportation, we will be self sufficient quickly. The reason is that we will become net exporters, not importers. That makes us self sufficient.
I prefer the "u" in honour as it seems to be missing these days.
The headline is based on the latest IEA (International Energy Agency) forecast called the "2012 World Energy Outlook"
Follow the link to a graph of what is being forecast and to the report in question:
http://earlywarn.blogspot.fr/2012/11/iea-us-to-be-worlds-largest-oil-producer.html
Look at the graph: conventional oil and natgas are in decline.
Note the super optimistic growth assumptions for unconventional gas and oil.
What is the methodology behind this extrapolation? That's the question people should be asking themselves.
Natgas price is at historic lows. Low prices mean small profits mean decreasing investment.
These days the unconventional gas industry is facing something of a bust:
http://www.nytimes.com/2012/10/21/business/energy-environment/in-a-natural-gas-glut-big-winners-and-losers.html?pagewanted=all&_r=0
How well does that fit with the optimistic growth scenario?
Also, the IEA does not exactly have a sterling reputation for balanced impartial forecasts:
http://www.guardian.co.uk/environment/2009/nov/09/peak-oil-international-energy-agency
Just because something is a headline, doesn't mean it's true. Time will tell, of course.
This is complete and utter crap. The notion that we'll be completely self sufficient is nothing but a pipe dream. Particularly the part about it happening by 2017 - a mere 4 years away. Do these idiots think all auto manufacturers can retool all cars to run on shale gas? That's a completely different set of complex hydrocarbons than what makes gasoline. More over, as the Oil Drum points out, the energy return on energy invested in shale gas is very poor. Furthermore, the amount of waste water generated and fresh water needed is staggering and we'll have a massive ground-water pollution problem to deal with. Getting the shale gas is only profitable when the price is high. If shale gas drilling goes wild and everybody does it, like the good capitalists Americans are, then the price goes down and it ain't worth spit any more. Also, if production of shale gas goes high, then middle eastern oil prices drop, making that an attractive option, thereby causing the price of shale oil to drop. The idiots dreaming this garbage up are stuck in microeconomics. The world doesn't work like that, and the self-sufficiency argument is thrown out the window when exposed to the light of day of macroeconomics and globalization.
Yes oil is sold in dollars. It doesn't mean that the price is tied to domestic consumption or domestic production. Oil is traded in dollars because the US dollar is the world's "reserve currency." All commodities are traded in dollars. The US dollar spends everywhere. It is the most tradeable currency. This is why the federal government can borrow $1.3T per year and pay a near 0% interest rate. This is also why we can't return to the Gold Standard. We would tank the world economy as prices for everything in every country are reset.
Getting back to oil. Higher output does not mean lower prices per barrel or lower gas prices. If we have difficulty moving that oil from well to refinery or from well to port (for oversears sale), our production increases won't matter. Shale oil also has a higher cost-per-barrel than a barrel of Saudi light-sweet-crude. Shale oil is also more expensive to refine. The economies of scale - the reducion in price paid for by early adopters - aren't there (yet). It can happen over time, but the alternative costs are ALSO dropping. China is making solar cheap. Natural gas is uncoupled from oil and the cost CAN beat gasoline and diesel on price. It won't happen tomorrow, or even in the next four years, but it is happening.
So don't worry about shale oil. If the middle east blows up or when Iran starts threatening its neighbors with nuclear weapons China and Europe will come to the US (and Canada) for oil. This could work out in our favor. We have a lot of debt, a debt-funded social safety net, and more off-book public debt than any politician wants to admit. We're gonna need trillions over the next 20 years just to remain in place. Shale oil and natural gas might just save our butts and prevent a Soviet-style collapse
Only the dead have seen the end of War. - Plato
Wrong; the main thing holding back use of alternative energy is the ability and need to store and transport it, much more difficult to do (sometimes impossible) with current and near-future technology. The wind doesn't always blow, the sun isn't always shining, etc. Geothermal is probably the most reliable, but not readily available everywhere. Big hurdles to jump before fossils can be replaced.
http://kualla-kualla.blogspot.com/2012/11/duh-simple-energy-solution.html
A good article to read on that blog site that talks about ways to at least lower costs of oil and a good idea about utilizing new energy technologies faster than what these patent holders are doing so.
Shale extraction techniques are pure poison for water tables everywhere. The US may well find it had loads of fossil fuels for a time....and ever higher rates of cancer for which no one else held accountable...(as usual). The sheeple had better wake up soon or their kids (and their kids...and their kids) will be dying thanks to the oil addiction of the present generations.
Only boring people are ever bored.
Look at some of these states they've allowed fracking in. What does it do? CAUSES EARTHQUAKES.
. The oil goes into a central market and could be shipped anywhere if the costs are right.
That's a myth.
Refineries are generally built to process oil from a particular field, or a particular class of fields. You can't ship tar sands off to a light sweet crude refinery and expect to actually be able to refine them.
It's particularly bad for the heavier ones, like the sands and shales, since each deposit has a different set of impurities, which mean that different catalyst properties are required to avoid poisioning.
Of course, the end products are interchangable: diesel is diesel and Jet A is Jet A. So a failure in one supply means that the price of end producs goes up, so people can charge more for the feedstocks.
If you change the word 'oil' to 'gas' though, he's right. http://content.usatoday.com/communities/ondeadline/post/2012/02/us-exported-more-gasoline-than-imported-last-year/1