Saturday, 20 February 2016

The Great Global Famine - Aftermath to Peak Oil

The Coming Famine

By Peter Goodchild

http://www.survivepeakoil.blogspot.ca/2016/02/the-coming-famine.html



Humanity has struggled to survive through the millennia in terms of Nature's tendency to balance population size with food supply. The same is true now, but population numbers have been soaring for over a century. Oil, the limiting factor, is close to or beyond its peak extraction. Without ample, free-flowing oil, it will not be possible to support a population of several billion for long. Without fossil fuels for fertilizer and pesticides, as well as for cultivating and harvesting, crop yields drop by more than two-thirds (Pimentel, 1984; Pimentel & Hall, 1984; Pimentel & Pimentel, 2007).


Over the next few decades, there will be famine on a scale many times larger than ever before in human history. It is possible, of course, that warfare and plague, for example, will take their toll to a large extent before famine claims its victims. The distinctions, in any case, can never be absolute: often "war + drought = famine" (Devereux, 2000, p. 15), especially in sub-Saharan Africa, but there are several other combinations of factors.




Although, when discussing theories of famine, economists generally use the term "neo-malthusian" in a derogatory manner, the coming famine will be very much a case of an imbalance between population and resources. The ultimate cause will be fossil-fuel depletion, not government policy (as in the days of Stalin or Mao), warfare, ethnic discrimination, bad weather, poor methods of distribution, inadequate transportation, livestock diseases, or any of the other variables that have often turned mere hunger into genuine starvation.



The increase in the world’s population has followed a simple curve: from about 1.7 billion in 1900 to over 7 billion today. A quick glance at a chart of world population growth, on a broader time scale, shows a line that runs almost horizontally for thousands of years, and then makes an almost vertical ascent as it approaches the present. That is not just an amusing curiosity. It is a shocking fact that should have awakened humanity to the realization that something is dreadfully wrong.

Mankind is always prey to its own "exuberance," to use Catton’s term. That has certainly been true of population growth. In many cultures, "Do you have any children?" or, "How many children do you have?" is a form of greeting or civility almost equivalent to "How do you do?" or, "Nice to meet you." World population growth, nevertheless, has always been ecologically hazardous. With every increase in human numbers we are only barely able to keep up with the demand: providing all those people with food and water has not been easy. We are always pushing ourselves to the limits of Earth’s ability to hold us (Catton, 1982).


Even that is an understatement. No matter how much we depleted our resources, there was always the sense that we could somehow "get by." But in the late twentieth century we stopped getting by. It is important to differentiate between production in an "absolute" sense and production "per capita." Although oil production, in "absolute" numbers, kept climbing -- only to decline in the early twenty-first century -- what was ignored was that although that "absolute" production was climbing, the production "per capita" reached its peak in 1979 (BP, annual).

The unequal distribution of resources plays a part. The average inhabitant of the US consumes far more than the average inhabitant of India or China. Nevertheless, if all the world’s resources were evenly distributed, the result would only be universal poverty. It is the totals and the averages of resources that we must deal with in order to determine the totals and averages of results. For example, if all of the world’s arable land were distributed evenly, in the absence of mechanized agriculture each person on the planet would still have an inadequate amount of farmland for survival: distribution would have accomplished very little.

We were always scraping the edges of the earth, but we are now entering a far more dangerous era. The main point to keep in mind is that, throughout the twentieth century, while population was going up, so was oil production. Future excess mortality can therefore be determined -- at least in a rough-and-ready manner -- by the fact that in modern industrial society it is largely the oil supply that determines how many people can be fed.


There is no precise causal relation, of course, between oil production and famine. To suggest such a thing would conflict with other ways of estimating future population. Another figure, closely related, might be the ratio of population to arable land. Even then, the history of famine does not suggest an exact correlation between population and arable land; certainly in the 1950s there were major famines although the world population was only a third of that today. Ó Gráda claims that the worst famines in recent times were actually in countries which rate relatively well in terms of the ratio of population to arable: Angola, Ethiopia, Somalia, Mozambique, Afghanistan, and Sudan. In fact famine, at least up to the present time, seems to have been more related to politics than to arable land or other resources.



Famine will also cause a lowering of the birth rate (Devereux, 2000; Ó Gráda, 2007, March). This will sometimes happen voluntarily, as people realize they lack the resources to raise children, or it will happen involuntarily when famine and general ill health result in infertility. In most famines the number of deaths from starvation or from starvation-induced disease is very roughly the same as the number of lost or averted births. In Ireland’s nineteenth-century famine, the number of famine deaths was 1.3 million, whereas the number of lost births was 0.4 million. The number of famine deaths during China’s Great Leap Forward (1958-1961), however, was perhaps 30 million, and the number of lost births was perhaps 33 million.

The "normal," non-famine-related, birth and death rates are not a factor in determining the future population figures, since for most of pre-industrial human history the sum of the birth and death rates -- in other words, the growth rate -- has been nearly zero: 2,000 years ago the global population was about 300 million, and it took 1,600 years for the population to double. If not for the problem of resource-depletion, in other words, the future birth rate and death rate would be nearly identical, as they were in pre-industrial times. (And there is no question that the future will mean a return to the "pre-industrial.")


Nevertheless, it will often be hard to separate "famine deaths" from a rather broad category of "other excess deaths." War, disease, and other factors will have unforeseeable effects of their own. Considering the unusual duration of the coming famine, and with Leningrad (Salisbury, 2003) as one of many precursors, cannibalism may be significant; to what extent should this be included in the calculation of "famine deaths"? In any case, it is probably safe to say that an unusually large decline in the population of a country will be the most significant indicator that this predicted famine has in fact arrived.

We must ignore most previous estimates of future population growth. Instead of a steady rise over the course of this century, as generally predicted, there will be a clash of the two giant forces of overpopulation and oil depletion, followed by a precipitous ride into an unknown future.

We are ill-prepared for the next few years. The problem of oil depletion turns out to be something other than a bit of macabre speculation for people of the distant future to deal with, but rather a sudden catastrophe that will only be studied dispassionately long after the event itself has occurred. Doomsday will be upon us before we have time to look at it carefully.

The world has certainly known some terrible famines in the past. In recent centuries, one of the worst was that of North China in 1876-79, when between 9 and 13 million died, but India had a famine at the same time, with perhaps 5 million deaths. The Soviet Union had famine deaths of about 5 million in 1932-34, purely because of misguided political policies. The worst famine in history was that of China’s Great Leap Forward, 1958-61, when perhaps 30 million died, as mentioned above.

A closer analogy to the coming "petroleum famine" may be Ireland’s potato famine of the 1840s, since -- like petroleum -- it was a single commodity that caused such devastation (Woodham-Smith, 1962). The response of the British government at the time can be summarized as a jumble of incompetence, frustration, and indecision, if not outright genocide, and the same may be true of any future responses by government.


As previously mentioned, population is not tied with mathematical precision to oil production; the latter provides only a rough indication of the former. To some extent, people will learn to live with less. Certainly most westerners can cut their living standards considerably and still live healthy lives -- perhaps even healthier, since they would be eating less and walking more. People will also switch to other sources of energy: in particular, firewood can replace fossil fuels for heating, though the amount of wood will not be sufficient for billions of people. All these adjustments will alleviate matters for a while, although the basic problem will remain: that fossil fuels will decline at a much faster rate than any voluntary reduction in births.

The above predictions can be nothing more than approximate, but even the most elaborate mathematics will not entirely help us to deal with the great number of interacting factors. We need to swing toward a more pessimistic figure for humanity’s future if we include the effects of war, disease, and so on. One of the most serious negative factors will be largely sociological: To what extent can the oil industry maintain the advanced technology required for drilling ever-deeper wells in ever-more-remote places, when that industry will be struggling to survive in a milieu of social chaos? Intricate division of labor, large-scale government, and high-level education will no longer exist. 

On the other hand, there are elements of optimism that may need to be plugged in. We must not forget the sheer tenacity of the human species: we are intelligent social creatures living at the top of the food chain, in the manner of wolves, yet we outnumber wolves worldwide by about a million to one; we are as populous as rats or mice. We can outrace a horse over long distances. Even with Stone-Age technology, we can inhabit almost every environment on Earth, even if most of the required survival skills have been forgotten.

Specifically, we must consider the fact that neither geography nor population is homogeneous. All over the world, there are forgotten pockets of habitable land, much of it abandoned in the modern transition to urbanization, for the ironic reason that city dwellers regarded rural life as too difficult, as they traded their peasant smocks for factory overalls. There are still areas of the planet’s surface that are sparsely occupied although they are habitable or could be made so, to the extent that many rural areas have had a decline in population that is absolute, i.e. not merely relative to another place or time. By careful calculation, therefore, there will be survivors. Over the next few years, human ingenuity must be devoted to an understanding of these geographic and demographic matters, so that at least a few can escape the tribulation. Neither the present nor future generations should have to say,

 "We were never warned." 



Add caption




References:

BP. Global statistical review of world energy. (annual). Retrieved fromhttp://www.bp.com/statisticalreview

Catton, W. R., Jr. (1982). Overshoot: The ecological basis of revolutionary change. Champaign, Illinois: University of Illinois Press.

Devereux, S. (2000). Famine in the twentieth century. IDS Working Paper 105. Retrieved fromhttp://www.sarpn.org.za/documents/d0000076/Devereux.pdf

Ó Gráda, C. (2007, March). Making famine history. Journal of Economic Literature. Retrieved from http://www.ucd.ie/economics/research/papers/2006/WP06.10.pdf

Pimentel, D. (1984). Energy flows in agricultural and natural ecosystems. CIHEAM (International Centre for Advanced Mediterranean Agronomic Studies). Retrieved fromhttp://www.ressources.ciheam.org/om/pdf/s07/c10841.pdf

------, & Hall, C. W., eds. (1984). Food and energy resources. Orlando, Florida: Academic Press.

------, & Pimentel, M. H. (2007). Food, energy, and society. 3rd ed. Boca Raton, Florida: CRC Press.

Salisbury, H. E. (2003). The 900 days: The siege of Leningrad. Cambridge, Massachusetts: Da Capo Press.

Woodham-Smith, C. (1962). The great hunger: Ireland 1845-1849. New York and Evanston: Harper & Row.

Tuesday, 16 February 2016

Big Declines Bakken Production







Bakken December Data, Big Decline


Image result for the bakken

The Bakken and North Dakota tight oil production data is out.

Bakken production was down 28,604 barrels per day to 1,096,044 bpd. All North Dakota was down 29,506 bpd to 1,152,280 bpd.

This is just the last two years of the chart above. It gives a slightly better look at what is happening.
Bakken BPD per Well
Barrels per day per well fell to 106 in the Bakken and to 90 in all North Dakota.

Producing Wells

November 13,100

December 13,119 (preliminary)(all time high was Oct 2015 13,190)
10,756 wells or 82% are now unconventional Bakken–Three forks wells
2,363 wells or 18% produce from legacy conventional pools.
 –
Permitting

November 125 drilling and 0 seismic
December 95 drilling and 0 seismic
January 78 drilling and 0 seismic (all time high was 370 in 10/2012)
 –
ND Sweet Crude Price

November $32.16/barrel
December $27.57/barrel
January $21.13/barrel
Today’s $16.50/barrel
(lowest since February 2002)(all-time high was $136.29 7/3/2008)
 –
Rig Count

November 64
December 64
January 52
Today’s rig count is 41 (lowest since July 2009 when it was 40)(all-time high was 218 on 5/29/2012)
The statewide rig count is down 81% from the high and in the five most active counties rig count is down as follows:
Divide  -85% (high was 3/2013)
Dunn -76% (high was 6/2012)
McKenzie -75% (high was 1/2014)
Mountrail -88% (high was 6/2011)
Williams -90% (high was 10/2014)


  A Final Note :  

The drilling rig count was steady from November to December, fell sharply from December to January, and again into this month. Operators are now even more committed to running fewer rigs as oil prices remain at very low levels. The number of well completions remained steady from 77(final) in November to 76(preliminary) in December. Oil price weakness is now anticipated to last into at least the third quarter of this year and is the main reason for the continued slow-down. There were no significant precipitation events, 5 days with wind speeds in excess of 35 mph (too high for completion work), and 2 days in Williston with temperatures below -10F.

Over 97% of drilling now targets the Bakken and Three Forks formations.
At the end of December there were an estimated 945 wells waiting on completion services 2, 24 less than at the end of November.
Crude oil take away capacity remains dependent on rail deliveries to coastal refineries to remain adequate.

The drop in oil price associated with anticipation of lifting sanctions on Iran and a weaker economy in China is expected to lead to further cuts in the drilling rig count. Utilization rate for rigs capable of 20,000+ feet is about 30% and for shallow well rigs (7,000 feet or less) about 20%.
Drilling permit activity declined November to December then fell further in January as operators continue to position themselves for low 2016 price scenarios. Operators have a significant permit inventory should a return to the drilling price point occur in the next 12 months.




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Friday, 12 February 2016

Peak Civilization?

Peak  Oil, Peak Everything 
By Peter Goodchild



http://www.survivepeakoil.blogspot.ca/2016/02/peak-oil-peak-everything.html

Perhaps the most common response to the peak-oil problem is: "The oil isn't going to disappear overnight. We have a century to prepare." Unfortunately, the fact that the decline in oil is a curve, not a vertical line, makes it difficult to comprehend. What matters is that the serious damage will have been done long before we get to those tiny remaining drops. That damage started around 1970, and it was not confined to oil.


Also, there are "curves within curves," so to speak. "Peak oil" in an ABSOLUTE sense was around 2010, but "peak oil" PER CAPITA was 1979, when there were 5.5 barrels of oil per person annually. According to UN estimates (admittedly quite uncertain), the world's population will rise to about 8 billion or more in 2030, whereas a look at the usual (or, at least, realistic) estimates for oil production show a decline to about 15 billion barrels in 2030, giving us a "per capita" figure of less than 2 barrels. That figure will not constitute an "on/off" situation, but by that year 2030 the human race should probably say goodbye to the Oil Economy.


It is not only oil, but in fact the entire North American economy that has followed something like a bell curve. In many ways it was not 2010, or any other year in the early 21st century, but the year 1970, that was the Peak, the Big Peak of Everything. Backward or forward on that curve, we see a dirty, noisy, crowded world. Right on that Peak, we see the Golden Age -- Beatlemania, "sex, drugs, and rock 'n' roll," Easy Street. As Dickens might say, "It was the best of times, it was the worst of times." The gap between the rich and the poor was not so bad in those days, whereas according to the US Census Bureau the mean income of the richest 5 percent of American families began to skyrocket shortly before 1970. In the year 1968, there was the Tet offensive, the turning point of the Vietnam War -- from an American military point of view, the downturn. In the year 1969, there was the first moon landing -- "the Space Age" began, although within a few years the expression (like "the Atomic Age") would be just an embarrassment.

The above-mentioned statement, "We have a century to prepare," also raises the question: Who is the "we" here? All human beings? A small group of dedicated survivalists? If the answer is the former, then the statement is false: humanity, as a whole, never makes any decisions. The human race, taken in its entirety, simply does not behave in such a sophisticated manner; the human race much prefers ignorance, superstition, cruelty, and intolerance. Robert Kaplan's book The Ends of the Earth is one of many texts that elucidate the harsh reality of human nature.

What about the coming several decades? Of course, a great deal depends on which time period one is discussing: the world of 2100 will be very different from the world of 2030. The question of slow versus fast collapse will also have a big effect on future scenarios. But if we look at tangible events of the last hundred years, two possible conceptions of the future stand out most clearly. These have best been illustrated by novelists (although not with peak oil as the setting) rather than by sociologists.

Image result for oil production 2100

The first is that of a slow slide into an impoverished police state, as illustrated by George Orwell’s 1984. In this scenario, government does not disappear. It is here to curse us forever. We may be poor and living in chaos, but we will live in relentless drudgery. This is roughly the same scenario as that of the Great Depression of the 1930s.

The second is that of a nuclear war that throws humanity back into a quasi-medieval world, as in Walter M. Miller, Jr., A Canticle for Leibowitz. In the fight for the remaining resources, civilization is largely destroyed. Such a scenario is just as plausible as that of George Orwell.


All civilizations grow too large to support themselves, and their leaders have little foresight. These civilizations then collapse and are buried in the sand. The same will happen to American civilization, but human shortsightedness prevents us from seeing it as only one among many. The USA, in other words, is seen as "civilization" in a generic sense, when it is really just one single civilization in a quantifiable sense. Unlike that of ancient Egypt, however, it is not likely to have a lifespan of three thousand years. Nor is it likely that another will take its place.


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Thursday, 11 February 2016

EIA's Predictions Questionable - OPEC Call is the Fudge Number!






Just How Accurate Are The EIA’s Predictions?

  
  • Mahjoub Mohamed Salih, WNN news


The EIA recently published the February edition of their Short-Term Energy Outlook. If you follow this month to month, and we do, you will notice their prognostications change a little every month. And over several months those small changes can add up to some rather dramatic changes. Nevertheless, below are several charts with their current oil production projections.
The EIA STEO only gives monthly data for total liquids. All C+C data is quarterly and annually. The monthly projected data begins in February 2016. Projections for quarterly and annual data begins January 2016.
ST Non-OPEC Liquids
The EIA says Non-OPEC total liquids dropped .5 million barrels per day in December and another .36 mbd in January. But then, other than another short drop in the first quarter of 2017, they see things leveling out for the next two years.
ST World Liquids
For the total world, the EIA expects far better production numbers than just for Non-OPEC. They expect new highs to be reached in 2016 and again in 2017.
ST US Liquids
They see US total liquids dropping in 2016 then they begin a slow rise through 2017, but not overtaking the peak in 2015.
ST Russia Liquids
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Apparently the EIA thinks Russia has had it. They see a drop in December 2016 then a huge drop in January  2017. We have no idea why. However the scale here makes the decline seem greater than it really is. From January 2015 to December 2017 the decline is only 400,000 barrels per day.
ST Eurasia Liquids

Adding the other FSU nations to the mix, mostly Azerbaijan and Kazakhstan, only exacerbates the decline, making it half a million bpd between January 2015 and December 2017.
ST Non-OPEC C+C A

Looking at just Crude + Condensate you get a better picture of what the EIA really expects in the next two years.  They expect Non-OPEC C+C to drop 580,000 bpd in 2016 and another 170,000 bpd in 2017 for a total of 750,000 bpd over the two years.
ST OPEC Total Liquids A
They are expecting far better things out of OPEC's gang.  They have the OPEC gangs total liquids up 1,010,000 barrels per day in 2016 and another 870,000 bpd in 2017. They do not project OPEC C+C.
But taking a closer look at their US Projections:
ST US C+C A
The EIA expects US C+C to drop 740,000 barrels per day in 2016 and another 230,000 bpd in 2017 for a total decline over two years of 970,000 barrels per day. 
ST US Liquids A  
However they have US total liquids faring much better then just C+C. They have total liquids declining by only 490,000 barrels per day in 2016 and increasing by 100,000 bpd in 2017.
ST US Other Liquids A
What this means is that US “Other Liquids”, that is NGLs, biofuels and refinery process gain must show a very impressive gains while everything else is going to pot. They show other liquids increasing by 250,000 bpd in 2016 and another 330,000 bpd in 2017. 
Most of this increase has to come from NGLs as biofuels are only a minor input and refinery process gain pretty much follows C+C consumption. But…
ST US Other Liquids % Increase 
Using their projections for Dry Gas production we find that gas production increased more than other liquids increased in 2015. However they say gas production will increase by only .4 percent in 2016 while other liquids increase by 4.6 percent, and a similar story in 2017 though not quite as dramatic.
Bottom line: We find the EIA’s past production data very accurate. However their projections appear to be pretty lame. This observation is proven out by the fact that those projections are constantly changing. Also, those “Other Liquids” projections seem to make no sense whatsoever. It appears to be mostly a fudge.  
Image result for yogi bear
But the very biggest problem with the EIA’s projections are with OPEC. That is because it is not a projection at all but an estimate of what will be needed to meet world demand. That is they estimate Non-OPEC production, then they estimate world demand, and the difference between the two will be the “Call on OPEC”. That is, they will simply expect OPEC to make up the difference, whatever that difference may be.
Lately, however, OPEC seems to be producing a lot more than their call asked them to. That is, they appear to be ignoring their call. And they will likely do likewise when they are expected to produce more to meet demand. They are all currently producing flat out and if there is a call on them to produce more, it will very likely go unanswered. 
WE thus  expect the “Call on OPEC” is a running joke between OPEC nations.

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