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Visit Michael (Astronomy.FM)'s column >>

MICHAEL (ASTRONOMY.FM)

Articles Posted: 4  Links Seeded: 7
Member Since: 6/2010  Last Seen: 5/16/2012

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We've hit "peak oil"; now comes permanent price volatility

Seeded on Thu Jan 26, 2012 11:10 AM EST
Read ArticleArticle Source: Ars Technica
energy, oil, coal, nature, environment, alternative-energy, peak-oil, david-king, james-murray
Seeded by Michael (Astronomy.FM)
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Since 2005, the global production of oil has remained relatively flat, peaking in 2008 and declining since, even as demand for petroleum has continued to increase. The result has been wild fluctuations in the price of oil as small changes in demand set off large shocks in the system. 

In today's issue of Nature, two authors (the University of Washington's James Murray and Oxford's David King) argue that this sort of volatility will be all we can expect from here on out—and we're likely to face it with other fossil fuels, as well.

The Nature article is behind a paywall, but I found a nice summary on Ars Technica.

The concern is not only with oil:

US coal production peaked in 2002, and the global peak has been predicted to hit as soon as 2025. The last time global coal reserves were evaluated, in 2005, the total was cut by more than half compared to previous estimates. Fracking has boosted the production of natural gas dramatically, but even here the authors find some reasons for concern. Recent reports suggest that shale gas reserves have been overestimated, and many fields that have been in production for a while have experienced large declines in production.

Now is the time to wean ourselves off of our addiction to fossil fuel.  We need alternatives, ASAP.

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  • Michael (Astronomy.FM)'s Column, All of Newsvine
  • Groups: Energyvine
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  • Public Discussion (37)
Michael (Astronomy.FM)

We don't need more trouble like this:

What are the consequences of being stuck at or near peak oil? The authors have produced a graph showing that, while supply is elastic enough to meet demand, prices stay stable. Once demand consistently exceeds supply, prices swing wildly. Murray and King term this a "phase transition" and suggest we'll be in the volatile phase from here on out.

That has some pretty significant consequences. Of the 11 recessions the US has experienced since World War II, 10 have been preceded by a sudden change in oil prices. The US isn't alone, either. Italy's entire trade deficit, which has contributed to its financial troubles, can be accounted for by the rise in imported oil. The world, it seems, has allowed its economies to become entirely dependent upon fossil fuels. "If oil production can't grow, the implication is that the economy can't grow either," the authors write. "This is such a frightening prospect that many have simply avoided considering it."

  • 4 votes
#1 - Thu Jan 26, 2012 11:12 AM EST
Mitchell-512733

Nuclear (fission now, fusion when available) and solar/PV, my friend.

  • 3 votes
#1.1 - Thu Jan 26, 2012 2:40 PM EST
Michael (Astronomy.FM)

Those choices, and more.

The solution is "all the above".

The problem - fuel for transportation.

  • 4 votes
#1.2 - Thu Jan 26, 2012 3:28 PM EST
Mitchell-512733

True, it'll be a few different sources, but it's those 2 that will matter most in the next 50-100 years. Well should matter most, I fear nuclear won't increase any. If the polywell fusion design pans out, that's where you will see a dramatic shift. It's a rather elegant solution that could be deployed as local power stations for a distributed grid since construction of plants should be rather low cost.

Fuel for transportation is easy, Bio-diesel. With diesel engines being as good as they are now, there's now reason why there shouldn't be a massive switch from gasoline to diesel. Many other nations are already doing it. Between that and EV, you're good to go.

Mitchell (who likes to oversimplify things at times)

  • 3 votes
#1.3 - Thu Jan 26, 2012 6:27 PM EST
nonStitiousZealot

#1.2 ,

The problem - fuel for transportation.

Exactly .

  • 3 votes
#1.4 - Fri Jan 27, 2012 12:40 AM EST
Tim S.-560036

The problem - fuel for transportation.

There are many solutions for this. For "short" distance vehicles battery packs are fine. For longer drives and heavier loads we can still take advantage of the better efficiency of electric motors but use fuel cells to power them instead of batteries as the main power source. The fuels for this fuel cell, they are essentially flex fuel vehicles, can come from splitting water with solar and wind power and from pyrolysis of biomass. The pyrolysis process can use any organic material including wood, grass, garbage, sewage, manure, etc. and produces a mixture of natural gas and liquid hydrocarbons ranging from gasoline to diesel fuel. All of these can be used in a solid oxide fuel cell without refining.

  • 3 votes
#1.5 - Fri Jan 27, 2012 2:39 AM EST
rwalker-2504195

I think what Michael may be looking for are immediate answers. Every car on the road today can be switched to burn natural gas or liquid propane. The cost of the conversion is probably going to come in under $3,000 per vehicle, depending on the size of the tank and what type of fuel system the car has. If we start converting them now, anddemanding alternatives to be offered we will be in better shape when we start to run out of cheap oil. Another solution is ethanol. The Brazilians have perfected the system. The only thing they are doing wrong is clear cutting huge swaths of rain forest to grow enough sugarcane. Science is working on methods to produce fuel from grass cuttings and twigs i.e. lawn refuse. We are borrowing technology from termites to breed or engineer microbes that efficiently break down cellulose into more usable fuels.

In the meantime, we need to be working on battery power for battery electric vehicles (we are). We need to work on more efficient solar technology (we are). We need to manufacture cheaper more reliable wind generation techniques (we are). But most importantly, we need to increase the efficiency of what we have (we are, but not nearly enough). Mainly our buildings, but secondly in transportation.

There are any number of patches and solutions out there. We have the technology. I put it upon the powers that be to stop the selfish greed that is holding us back as a species. If they don't on their own, the public will take it, and not very nicely if history is an indicator.

  • 2 votes
#1.6 - Thu Feb 2, 2012 4:30 PM EST
rwalker-2504195

#1.5 Tim, I agree. I think that we will see fuel cells come into their own soon. We can generate massive amounts of power using fuel cells from our waste sewer water in every city and town in the US. I think one thing in the Battery Electric Vehicle that is missing is a universal battery pack. The infrastructure is already in place for every fuel stop in the country to be charging a rack of interchangable battery packs for cars. All we would have to do is unplug the charged pack, take the one out of our car, and replace it with a fresh one. We would probably have to hire attendants to do this because of the weight of the packs.

  • 2 votes
#1.7 - Thu Feb 2, 2012 4:39 PM EST
nonStitiousZealot

I think one thing in the Battery Electric Vehicle that is missing is a universal battery pack.

That would be a valuable boost to the widespread deployment . But 1st they need to develop the technology some more .

  • 4 votes
#1.8 - Thu Feb 2, 2012 5:07 PM EST
rwalker-2504195

#1.8

Yar matey that they do. We are getting close though. The new Tesla S premium model has a 300 mile range. That is usable! The car starts at $49,000 after the quite large government rebate. Considering a Ford Focus electric starts at $39,000, and only has 100 mile range, the Tesla is lightyears ahead of the game.

  • 3 votes
#1.9 - Thu Feb 2, 2012 5:39 PM EST
nonStitiousZealot

The Tesla corp really has solved most of the problems which plagued earlier e-cars . The only things they haven't addressed are charge time and price .

  • 4 votes
#1.10 - Thu Feb 2, 2012 6:00 PM EST
Michael (Astronomy.FM)

One nice feature of natural gas - I could fill up right at home!

There is a reason why we are addicted to gasoline for our cars; there is a lot of energy in a gallon of fuel (noticeable when compared to ethanol, say), and it's so easy to transport and work with.

It does the job.

Swappable battery packs are the way to go for long-distance trips with an electric car.

  • 4 votes
#1.11 - Thu Feb 2, 2012 7:07 PM EST
Tim S.-560036

Science is working on methods to produce fuel from grass cuttings and twigs i.e. lawn refuse.

Wrong. Science is not looking for this. The reason science is not looking for this is that science discovered this years ago and it has been going on for hundreds of millions of years. What is happening is corporations looking for ways to patent these processes so they can control them and thereby the price and supply.

Methanogenic bacteria have existed for hundreds of millions of years. All we have to do is build the composting equipment to collect the methane. Pyrolysis is the process that made our fossil fuels. We know how to do it, but it is general knowledge and can not be patented and monopolized so we don't pursue it. And neither of these require the use of food crops. They operate off of any organic material including our waste streams.

This would also create thousands to a million local jobs all across the country in every community growing, harvesting, transporting, prepping, and processing the biomass fuel. This biomass comes from wood, grass, sewage, manure, trash, lawns clippings and debris, etc. And it is a source of income for landowners that have idle acreage.

  • 2 votes
#1.12 - Thu Feb 2, 2012 7:38 PM EST
rwalker-2504195

Tim, I didn't know that corporate greed was hold back the methanogenic bacteria fuel generation. What a shame. When will people realize that not everything that is worth doing has to be freaking profitable. The really sad thing is that they can still make money on it, but they want ALL THE MONEY. Unforgivable, unacceptable, and absurd. They need to be put in their place.

  • 3 votes
#1.13 - Fri Feb 3, 2012 4:53 PM EST
Tim S.-560036

Yup, they can't patent it, they don't pursue it.

  • 2 votes
#1.14 - Sat Feb 4, 2012 2:43 AM EST
rwalker-2504195

Another thing we could be doing is changing our thought process on hybrid vehicles. Make them work like freight trains. Hook a very small diesel motor up to a generator, not to the drive train. The little motor can sit and charge your battery while you work, or you could plug it in. The battery and the electric motor are the only things that need to be strong enough to push the car at highway speeds. But, I suppose if you made the diesel motor strong enough to generate the power to run the car at reasonable speeds you could increase the range dramatically, so maybe offer a couple of different sized motors depending on the customers' use.

Ultracapacitors are awesome to reclaim breaking energy as well

  • 2 votes
#1.15 - Sat Feb 4, 2012 11:22 AM EST
Tim S.-560036

Place a relatively small motor on each wheel, say 10 hp (7.355 kW) each. That is a maximum of 40 hp (29.42 kW) of power for acceleration. But during cruising only one motor needs to and only enough to maintain speed. To run all 4 motors at full power for 6 seconds would use 0.05 kWh of energy. Then the other motors shut down one at a time to reach cruising conditions. This energy is supplied by both batteries and the engine. Once down to one motor, the engine recharges the battery, as does the breaking in stop and go traffic. A 5 kW generator should be capable of supplying the energy necessary for powering this type of vehicle with a battery pack that is capable of powering the vehicle for 30 seconds at max load, by itself.

This also gives an all wheel drive capacity to the vehicle by monitoring the relative rotation of the 4 wheels and applying poser to the motors that are not turning.

  • 3 votes
#1.16 - Sat Feb 4, 2012 3:38 PM EST
Michael (Astronomy.FM)

rwalker, your comment on making cars work more like freight trains reminded me of this story:

"'Road train' technology trials get rolling"
http://www.bbc.co.uk/news/technology-12215915

I spend a fair amount of time doing long-distance driving; hopping on the expressway and driving until either the tank is empty or the bladder is full. This type of system would be wonderful for that type of trip.

  • 3 votes
#1.17 - Sat Feb 4, 2012 4:47 PM EST
Reply
Buddha-Dude

And being from Canada, I must apologize for the Oil Sands, its totally messing up the environment

  • 2 votes
Reply#2 - Thu Jan 26, 2012 3:27 PM EST
Michael (Astronomy.FM)

Darn those Canadians! ;-p

Seriously, Canada is the best neighbour that anyone could ask for.

  • 5 votes
#2.1 - Thu Jan 26, 2012 3:29 PM EST
Mitchell-512733

Seriously, Canada is the best neighbour that anyone could ask for.

If is wasn't for all those Canadians up there.... ;-)

J/K, I have a few friends from up north and have met quite a few. Not a bad bunch of people.

Mitchell

  • 3 votes
#2.2 - Thu Jan 26, 2012 6:14 PM EST
Michael (Astronomy.FM)

I live 13 miles north of Canada.

  • 3 votes
#2.3 - Thu Jan 26, 2012 7:19 PM EST
Mitchell-512733

*laughs* you darn Michigan people. :-)

  • 2 votes
#2.4 - Thu Jan 26, 2012 8:59 PM EST
rwalker-2504195

Michael, living that far north is what you get for being a star dust addict.

  • 2 votes
#2.5 - Thu Feb 2, 2012 4:33 PM EST
Reply
Monkey@Keyboard

Great Article. Thanks!

  • 2 votes
Reply#3 - Wed Feb 1, 2012 4:40 PM EST
nonStitiousZealot

Since we have reached peak oil , it is becoming critical that we find new sources of energy . Here is some news about a new design of nuclear reactor which is being built .

  • 3 votes
Reply#4 - Thu Feb 16, 2012 11:59 PM EST
Tim S.-560036

Right the solution to the global energy problem is nuclear. I can see it now, installing nuclear reactors in Myanmar, Somalia, Iran, Afghanistan, Venezuela, etc. What could possibly go wrong with making sure they have access to large quantities of radioactive materials?

  • 2 votes
#4.1 - Fri Feb 17, 2012 1:14 AM EST
nonStitiousZealot

Personally I wouldn't install nukes in any of those countries . However Iran seems to be installing its own . How do you propose to stop them ?

  • 3 votes
#4.2 - Fri Feb 17, 2012 1:30 AM EST
Tim S.-560036

So what is your idea of addressing their energy needs? It really doesn't do us any good to replace our dependency on fossil fuels to turn around and force developing nations to use them and dump the pollutants into the atmosphere and water we all share.

  • 2 votes
#4.3 - Fri Feb 17, 2012 2:10 AM EST
nonStitiousZealot

1] The US uses the most energy of any country . Any reduction we can make is going to have the largest effect
on global usage . I wouldn't be surprised that together the US and China use something like half of the global energy . [But I'm not sure what the number is .]
2] We aren't forcing anything on those nations . When something comes up later on then it would be made available .
3] Here is another more detailed link about this topic :
Notice that the conclusion is :
"Stop wrangling over global warming and instead reduce fossil-fuel use for the sake of the global economy."
In other words , put the concerns about carbon emissions on the shelf and focus on finding more energy .

  • 3 votes
#4.4 - Fri Feb 17, 2012 2:29 AM EST
Tim S.-560036

"Stop wrangling over global warming and instead reduce fossil-fuel use for the sake of the global economy."
In other words , put the concerns about carbon emissions on the shelf and focus on finding more energy .

This we agree on. We only differ in were that energy is available from and the externalities of each. To me the externalities of nuclear are too high and that makes it a bad economic investment. Especially when we have the technology to not need it today. Between solar and wind in a distributed model we have enough to meet half to all of our current primary energy consumption in this country. 600 sq ft of solar and a 10 kW wind turbine on every home and 3600 sqft of solar and a 10 kW wind turbine on 115,000,000 commercial buildings could produce all the energy we consume. This is the low estimate given not every day is sunny from 10am to 4pm or has a 10 mph wind or greater constantly. But it does illustrate that it is doable.

Conservation efforts could reduce our consumption from 1/3 to 1/2 without a change in quality of life. This would mean the installations I describe above would only have to average 1/2 to 2/3 of their rate generation capacity. And we have the storage technology with water electrolysis and fuel cells to smooth out instantaneous variance in supply and demand. These storage facilities can be installed at the municipal level for quick response to local variations. And this system minimizes transmission distances and losses.

  • 3 votes
#4.5 - Sat Feb 18, 2012 12:17 AM EST
nonStitiousZealot

Conservation efforts could reduce our consumption from 1/3 to 1/2 without a change in quality of life.

I'm all for a lot more conservation efforts . It seems that those who are opposed to conservation lack the cooperative citizenship that is needed . I have met such folks online and they are very insistent about their
rights to be gas hogs . It seems to be almost entirely about their large over-powered cars than anything else ...

  • 2 votes
#4.6 - Sat Feb 18, 2012 1:55 AM EST
Tim S.-560036

What gets me the most about them is the contradictory nature of their complaints about energy prices and their total lack of acting in their own self interest. Cutting their energy costs doesn't even have to include cooperative citizenship. It saves them money in their own pocket. I just fail to see the reason for the opposition from a rationale perspective.

That doesn't mean I don't get the financial issues. Coming up with $10,000 to $25,000 to convert to ground assisted heat pumps is a major hurdle for most people. I understand that. But in the long view it makes perfect personal economic sense. And when the personal benefits of individuals are averaged together it makes state and national economic sense. This is where the cooperative citizenship comes in, IMO.

By chipping in together to speed up these improvements, everyone benefits. A more stable energy supply benefits each individual and business. A better business environment improves employment and wages and profits. I am at a loss as to the source of the opposition to a coherent energy policy that improves energy supply and pricing stability.

As I know you are. How do we get through to the majority on this common point even if there are variations on how to best achieve this goal? The goal should at least be widely supported.

  • 3 votes
#4.7 - Sat Feb 18, 2012 1:57 PM EST
nonStitiousZealot

How do we get through to the majority on this common point

I have tried suggesting that their gas usage is supporting Arab terrorists . Sometimes that seems to dent their armor a little .

  • 4 votes
#4.8 - Sat Feb 18, 2012 2:21 PM EST
Michael (Astronomy.FM)

I think most of my gas purchases actually go to support Canadian terrorists, eh?

  • 3 votes
#4.9 - Sat Feb 18, 2012 2:40 PM EST
Tim S.-560036

I have tried suggesting that their gas usage is supporting Arab terrorists . Sometimes that seems to dent their armor a little .

I think another approach we should use in addition is the teaching of externalities in business, accounting, poli sci, etc. People have to be aware that not all costs are currently included in our pricing practices. If there ere one change I could make by waving my hand, this would be it, the inclusion of externalities into the free market price of all goods and services.

I know it is hard to determine them to an exact figure. I would be satisfied with using the average value. This would at least be a move in the right direction.

  • 3 votes
#4.10 - Sat Feb 18, 2012 3:25 PM EST
nonStitiousZealot

Michael A ,

*snort*

  • 2 votes
#4.11 - Sat Feb 18, 2012 3:32 PM EST
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