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Fellow Americans we must stop investing in roads, highways and parking lots. The automobile must go the way of the horse as an antiquated way of getting around. Find a better way now, before desperation forces us to do so. Let's lead the world to a better future, not follow the status quo into pollution and sprawl. I worked in the oil and gas exploration and production industry for 25 years. Few citizens fully understand the scope of the current oil and gas production infrastructure in this country. There are tens, if not hundreds of thousands of oil and gas wells across this country all pumping oil and gas continuously around the clock. Pipelines criss-cross the sea bottom and the landscape carrying millions of gallons of fuel, yet the domestic production meets only a fraction of the current demand for the products. No amount of domestic drilling can meet the country's demand. This world must change its energy infrastructure and transportation systems, and America should lead the way.

Fellow Americans we must stop investing in roads, highways and parking lots. The automobile must go the way of the horse as an antiquated way of getting around. Find a better way now, before desperation forces us to do so. Let's lead the world to a better future, not follow the status quo into pollution and sprawl. I worked in the oil and gas exploration and production industry for 25 years. Few citizens fully understand the scope of the current oil and gas production infrastructure in this country. There are tens, if not hundreds of thousands of oil and gas wells across this country all pumping oil and gas continuously around the clock. Pipelines criss-cross the sea bottom and the landscape carrying millions of gallons of fuel, yet the domestic production meets only a fraction of the current demand for the products. No amount of domestic drilling can meet the country's demand. This world must change its energy infrastructure and transportation systems, and America should lead the way.

Hurricane IKE seems to be a spent force now and the impact it has had on Texas oil refineries is staring to become apparent. Jim Brown at Right Side Advisers reports that there may be some petrol shortages as a result - Hurricane Hangover, Shortages Ahead. Ike's sudden left turn just before it made landfall meant that the 13 refineries in Houston escaped the brunt of the hurricane's force. All are reporting they sustained no material damage and will begin the restart process as soon as power is restored. That could be a week to ten days before power is stable and another 2-3 days to restart. This suggests there could be a serious problem for refined products like gasoline and diesel. ... Drivers across the southwest were already facing long lines and prices higher by as much as 25 cents a gallon in some states. Federal officials are preparing for a prolonged disruption in fuel supplies. According to EIA data gasoline inventories the week Gustav hit were at the lowest level since 2000 at 187.9 million barrels or 21 days of supply. Much of that inventory is required just to keep the pipeline full and cannot be used. Pipelines only run when they are full. There are thousands of pumps along the way that require product in order to run. If allowed to run dry the pipeline would cease to function and require a lengthy restart period. Basically product only flows out when new product is pushed in thousands of miles away.

Generating electricity by burning coal is responsible for about half of an estimated $120 billion in yearly costs from early deaths and health damages to thousands of Americans from the use of fossil fuels, a federal advisory group said Monday. A one-year study by the National Research Council looked at many costs of energy production and the use of fossil fuels that aren't reflected in the price of energy. The $120 billion sum was the cost to human health from U.S. electricity production, transportation and heating in 2005, the latest year with full data. The report also looks at other hidden costs from climate change, hazardous air pollutants such as mercury, harm to ecosystems and risks to national security, but it doesn't put a dollar value on them.

Generating electricity by burning coal is responsible for about half of an estimated $120 billion in yearly costs from early deaths and health damages to thousands of Americans from the use of fossil fuels, a federal advisory group said Monday. A one-year study by the National Research Council looked at many costs of energy production and the use of fossil fuels that aren't reflected in the price of energy. The $120 billion sum was the cost to human health from U.S. electricity production, transportation and heating in 2005, the latest year with full data. The report also looks at other hidden costs from climate change, hazardous air pollutants such as mercury, harm to ecosystems and risks to national security, but it doesn't put a dollar value on them.

True to their word, the 2008 World Energy Outlook represents a significant development by the International Energy Agency (IEA) in the philosophy and methodology of their oil supply forecasts. The report attempts a bottom-up model of the world's oil production potential and even revises down estimates previously taken at face value from the United States Geological Survey (USGS). The tone of the report has also changed dramatically, with an urgent call for investment in additional oil projects to avoid production shortfalls by 2015. Despite those significant changes, the report still relies on inflated estimates of reserves from OPEC countries, overplays the contribution of reserves growth due to technology and predicts the reversal of a decades long trend of declining oil discoveries. These are the real factors that will send oil production into decline, but at least now we have some numbers we can discuss and analyze instead of a decade of blind faith in oil market economics.

Humanity is sitting on a railroad track, and a train is speeding toward us. The name of that train is global oil shortages. But, let's start at the beginning. Oil was discovered in 1859 in the United States. However, we did not appreciate its many uses, so production and consumption began slowly. During the years between World War I and World War II we learned of its many uses, but only in the last few decades have we built our dependency on oil. Now, all our clothes, food, transportation, construction depend on petrochemicals. As the oil production/consumption line has risen, the food production line has followed and also the global population line.

Rising North Sea oil production was a significant factor in keeping oil prices under control in the 1970s, 80s and 90s. Production peaked at 6.4 million barrels per day in 2000 and since then, declining North Sea Oil production is one significant reason that oil prices are now rising exponentially.

An update on the latest production numbers from the EIA along with graphs/charts of different oil production forecasts.

In 2000 a Saudi oil geologist named Sadad I. Al Husseini made a startling discovery. Husseini, then head of exploration and production for the state-owned oil company, Saudi Aramco, had long been skeptical of the oil industry's upbeat forecasts for future production. Since the mid-1990s he had been studying data from the 250 or so major oil fields that produce most of the world's oil. He looked at how much crude remained in each one and how rapidly it was being depleted, then added all the new fields that oil companies hoped to bring on line in coming decades. When he tallied the numbers, Husseini says he realized that many oil experts "were either misreading the global reserves and oil-production data or obfuscating it."

Back in September, the City of Houston agreed to buy all the solar power from a proposed NRG $40-million solar plant on a 25-year power purchase agreement, or PPA. The deal called for NRG to foot the bill for the plant, and the city to pay for the power at a rate of 8.2 cents per kilowatt-hour for the first year. What this meant, in real-world terms, was that NRG would supplant some of the solar output with power from other plants, giving the city an effective rate of 8.2 cents, though the agreement overall calls for Houston to pay 19.8 cents per kilowatt-hour. If built, the 10-megawatt solar plant would have been the biggest in the state, providing up to 1.5 percent of the city's electrical needs at a locked-in price on 90 percent of production - a fixed rate that would have served the city well if Reliant Energy raised its rates due to rising costs of oil, gas or coal. Reliant Energy's generation mix is 39.8 percent, followed by natural gas at 23 percent and coal at 22.5 percent - the former two prices likely to rise as the recession eases and tension over Middle East oil prices and production rises.

Back in September, the City of Houston agreed to buy all the solar power from a proposed NRG $40-million solar plant on a 25-year power purchase agreement, or PPA. The deal called for NRG to foot the bill for the plant, and the city to pay for the power at a rate of 8.2 cents per kilowatt-hour for the first year. What this meant, in real-world terms, was that NRG would supplant some of the solar output with power from other plants, giving the city an effective rate of 8.2 cents, though the agreement overall calls for Houston to pay 19.8 cents per kilowatt-hour. If built, the 10-megawatt solar plant would have been the biggest in the state, providing up to 1.5 percent of the city's electrical needs at a locked-in price on 90 percent of production - a fixed rate that would have served the city well if Reliant Energy raised its rates due to rising costs of oil, gas or coal. Reliant Energy's generation mix is 39.8 percent, followed by natural gas at 23 percent and coal at 22.5 percent - the former two prices likely to rise as the recession eases and tension over Middle East oil prices and production rises.

The efficiency and eco-credentials of solid fuel fires have seen such products witness a recent increase in popularity driven in part by the soaring cost of other forms of energy. solid fuel appliances increase in popularity Writing in the Guardian, Andrew Martin stated that while it is necessary to burn smokeless solid fuel, except in the case of where approved appliances are used, these products can offer a carbon neutral solution to heating. Mr Martin stated that wood used as a fuel is carbon neutral because the carbon dioxide that is emitted is captured by the growth of the tree.

Vote to pass a bill that extends energy efficiency tax credits, as well as various individual and business tax credits. Official Title of Legislation: HR 7060: To amend the Internal Revenue Code of 1986 to provide incentives for energy production and conservation, to extend certain expiring provisions, to provide individual income tax relief, and for other purposes. Highlights: - Extends tax credits for wind facilities until January 1, 2010, and credits for qualified biomass, geothermal or solar, small irrigation power, landfill gas, trash combustion, hydropower, and marine and hydrokinetic renewable energy facilities until October 1, 2011 (Sec. 101, 102). - Extends residential energy efficient property credits for solar electric, solar water heating, and fuel cell property expenditures until December 31, 2016 (Sec. 104). - Extends the residential energy efficient property credit allowable against the alternative minimum tax to the taxable year starting in 2007 (Sec. 104). - Reduces the maximum income tax deduction allowed for domestic production of oil and gas (Sec. 401). - Extends the business research credit through December 31, 2009 (Sec. 221). - Extends tax deductions for college tuition payments through the taxable year ending December 31, 2009 (Sec. 202). - Allows a base credit of $3,000 for plug-in electric motor vehicles, with up to an additional $2,000 for vehicles drawing propulsion energy from a battery of 5 or more kilowatt hours of capacity (Sec. 124). - Encourages bicycle commuting by allowing tax-free reimbursements to cover expenses such as the purchase of a bicycle and maintenance if the bicycle is regularly used to travel between the employee's residence and place of employment (Sec. 126). - Extends the Federal Unemployment Tax Act surtax that employers pay with respect to individuals they employ through 2010 (Sec. 404). - Extends tax credits for solar energy property until January 1, 2017 and credits for fuel cell and microturbine pr

When OPEC meet on 17th December, how will they go about deciding the size of the inevitable production cuts? All OPEC states want the oil price to rise from current $44 / bbl (WTI). Some states will also be concerned that the price target is affordable by their OECD customers. But set against a backdrop of global economic turmoil and volatility in all markets, how do they judge the size of the production cut required to deliver the target price? Saudi Arabia is reported to favor a price of $75 / bbl, just short of the cost of new marginal supply in the OECD. Achieving this price in the medium term would keep OPEC in the driving seat. This short post is intended to be a discussion thread. Below the fold, I outline one radical idea for OPEC to achieve their goal in the short term.

Energy Bulletin's Bart Anderson has an interview in, of all places, a French cyberpunk journal - The future is Amish, not Mad Max: interview with Bart Anderson of EB. Laurent Courau: Your site puts forward the concept of "peak oil." Could you begin by reviewing this essential point for the readers of La Spirale? Bart Anderson: There is a limited amount of petroleum in the earth. After the easy deposits have been exploited, we go after deposits that are more difficult and expensive to develop (e.g. tar sands, deepwater and arctic oil). At a certain point - peak oil - the amount of oil produced reaches a maximum. Afterwards, less and less oil is produced. In this way oil production follows a more-or-less bell-shaped curve, Hubbert's Curve. The curve takes its name from the Shell Oil geoscientist, M. King Hubbert, who presented the idea in 1956 and predicted the peaking of U.S. oil production, which occurred in 1970.

How important is it to eat organic? Is it a fad, a craze or is it a warning against chemical fertilizers and GMO crops, which will help protect the next generation? Organic farming is natural farming, that means no chemical fertilisers, no genetic modification for either food crops or feed crops. Commercial farming pushing demand for agricultural produce forced a shift towards chemical fertilisers and farming methods to maximise output, for maximum profit, unaware of the significantly unnatural processes being used can be harmful. At the consumer level organic produce is a relatively new phenomena. On the supermarket shelves we are finding products labelled 'organic', most of us think it means 'natural' or 'cruelty free'. When you buy organic you are buying a green product . That means methods such as green fertilisers, crop rotation and biological pest controls are used instead of toxic chemical fertilisers and genetically modified organisms which are harmful to the land. Organic farming composes about 2% of all farming on the planet.

Using fully stock production gasoline engine powered vehicles, with engine modifications limited only to changes in fuel mixture and ignition timing, Shell Oil Company served host to an open competition in automobile efficiency. The fruit of their forum was sweet indeed as a two-door, full-sized production car was able to drive off with the prize by achieving 376.59 miles in normal driving conditions using a single gallon of fuel. A more heavily modified vehicle was able to achieve over 1140 miles on a single gallon of fuel. Results like these are truly astounding and beg the question: Are we really getting all we can in efficiency from auto makers?

The Financial Times has leaked the results of the International Energy Agency's long-awaited study of the depletion profiles of the world's 400 largest oilfields, indicating that, "Without extra investment to raise production, the natural annual rate of output decline is 9.1 per cent." This is a stunning figure. Considering regular crude oil only, this means that 6.825 million barrels a day of new production capacity must come on line each year just to keep up with the aggregate natural decline rate in existing oilfields. That's a new Saudi Arabia every 18 months.

On this basis, we estimate that the average observed decline rate worldwide is 6.7%. Were that rate applied to 2007 crude oil production the annual loss of output would be 4.7mmbpd.

The Economist has a look at some of the factors affecting oil production, warning "Oil prices have plunged. Another spike may be on its way" - Well prepared. WITH the price of crude mired at half the peak of $147 it reached in July, this may seem like an odd time to invest in oil wells. Despite trimming its output along with other members of the Organisation of the Petroleum Exporting Countries (OPEC) in an effort to prop up prices, that is just what the United Arab Emirates plans to do. Short-term price movements, its oil minister insists, should not distract from the world's enduring thirst for oil. Indeed the collapse of oil prices, one of the few reasons around for economic cheer, may be setting the stage for another spike. Just now oilmen are focused on the rapidly slowing demand for their product. Since early October, reckons the boss of BP, a big oil firm, America's consumption of crude has fallen by perhaps 2m barrels a day, or about a tenth. Sales of cars in America fell even more steeply last month-by 32%. There is also gloomy news from emerging markets, which have been the driving force in the oil markets of late. Demand for oil is growing much more slowly in China and India, for example, and car sales are down in both countries. There is even talk of global oil demand falling next year, for the first time since 1991.

A subsidy represents a transfer of Federal Government resources to the buyer or seller of a good or service that has the effect of reducing the price paid, increasing the price received, or reducing the cost of production of the good or service. Put simply, the Federal Government promotes targeted energy outcomes, such as production of a specific fuel or promotion of conservation and energy efficiency by energy consumers through incentives such as tax credits, grants, and low interest loans.