14 January 2016, Energy Post, The oil pricequake will doom the global political order. Given the centrality of oil and oil revenues in the global power equation, it is inevitable that depressed oil prices will doom the current global political order, writes Michael T. Klare, a professor of peace and world security studies at Hampshire College. Political turmoil is already raging across the oil heartlands of the planet – and the tremors from the oil pricequake have yet to reach their full magnitude, notes Klare. As 2015 drew to a close, many in the global energy industry were praying that the price of oil would bounce back from the abyss, restoring the petroleum-centric world of the past half-century. All evidence, however, points to a continuing depression in oil prices in 2016 – one that may, in fact, stretch into the 2020s and beyond. Given the centrality of oil (and oil revenues) in the global power equation, this is bound to translate into a profound shakeup in the political order, with petroleum-producing states from Saudi Arabia to Russia losing both prominence and geopolitical clout. To put things in perspective, it was not so long ago – in June 2014, to be exact – that Brent crude, the global benchmark for oil, was selling at $115 per barrel. Energy analysts then generally assumed that the price of oil would remain well over $100 deep into the future, and might gradually rise to even more stratospheric levels. Such predictions inspired the giant energy companies to invest hundreds of billions of dollars in what were then termed “unconventional” reserves: Arctic oil, Canadian tar sands, deep offshore reserves, and dense shale formations. It seemed obvious then that whatever the problems with, and the cost of extracting, such energy reserves, sooner or later handsome profits would be made. It mattered little that the cost of exploiting such reserves might reach $50 or more a barrel. Read More here
Tag Archives: oil
29 December 2015 IACentre, Winner of Project Consored top 25 articles for 2009 – 2010 news stories: Pentagon’s role in global catastrophe. In evaluating the U.N. Climate Change Conference in Copenhagen — with more than 15,000 participants from 192 countries, including more than 100 heads of state, as well as 100,000 demonstrators in the streets — it is important to ask: How is it possible that the worst polluter of carbon dioxide and other toxic emissions on the planet is not a focus of any conference discussion or proposed restrictions? By every measure, the Pentagon is the largest institutional user of petroleum products and energy in general. Yet the Pentagon has a blanket exemption in all international climate agreements.
The Pentagon wars in Iraq and Afghanistan; its secret operations in Pakistan; its equipment on more than 1,000 U.S. bases around the world; its 6,000 facilities in the U.S.; all NATO operations; its aircraft carriers, jet aircraft, weapons testing, training and sales will not be counted against U.S. greenhouse gas limits or included in any count. The Feb. 17, 2007, Energy Bulletin detailed the oil consumption just for the Pentagon’s aircraft, ships, ground vehicles and facilities that made it the single-largest oil consumer in the world. At the time, the U.S. Navy had 285 combat and support ships and around 4,000 operational aircraft. The U.S. Army had 28,000 armored vehicles, 140,000 High-Mobility Multipurpose Wheeled Vehicles, more than 4,000 combat helicopters, several hundred fixed-wing aircraft and 187,493 fleet vehicles. Except for 80 nuclear submarines and aircraft carriers, which spread radioactive pollution, all their other vehicles run on oil. Even according to rankings in the 2006 CIA World Factbook, only 35 countries (out of 210 in the world) consume more oil per day than the Pentagon. Read More here
5 December 2015, The Spectator, An age of climate realism is upon us. At last, cooler heads are prevailing….The Paris meeting is not even attempting to achieve what the 2009 Copenhagen summit failed to do: reach a legally binding treaty on cutting CO2 emissions. Instead, the aim is to replace the legally binding targets of the Kyoto Protocol (which runs out in 2020) with voluntary pledges tailored to the national considerations of individual countries. In short, the Paris climate deal will mean abandoning the notion of making decarbonisation legally binding — at least for the time being. Even so, governments from around the world are keen to sign an agreement that will allow political leaders to declare a victory, and to move on. At the same time, officials readily accept that painful decisions will be kicked into the long grass. Thus, the Paris accord is likely to be a ‘wait and see’ arrangement which, for the next decade at least, suspends any attempt of reaching a binding decarbonisation treaty. Such an outcome will almost certainly trigger a fundamental reassessment of Europe’s go-it-alone-no-matter-what-the-costs decarbonisation policies. Why has it proven impossible for such summits to make the kind of progress that was, until recently, billed as a matter of saving the world? Firstly, policies that commit western governments to unilateral decarbonisation have turned out to be more costly and politically toxic than conventional wisdom proclaimed. Rather than running out of fossil fuels — and thereby making renewable energy more competitive — the US shale revolution and the prospect of its global proliferation has triggered a glut of cheap oil and gas. Fuel prices have fallen and look set to remain low for the foreseeable future. As a result, the bridge to a world powered by renewable energy has become longer rather than shorter. Read More here Note that “the pause” noted in the article is a red herring – read more here
13 November 2015, DeSmog, Obama Administration Approves Pipeline Expansion Set to Feed First Ever Fracked Gas LNG Export Terminal. The Obama Administration has quietly approved expansion of a major pipeline carrying fracked gas destined for the global export market. The Gulf Trace pipeline, owned by The Williams Companies, is set to feed into Cheniere Energy’s Sabine Pass LNG export terminal in Louisiana. As first reported by Reuters, LNG tankers loaded with super-chilled liquefied natural gas obtained viahydraulic fracturing (“fracking”) will set sail for the first time from Sabine Pass in January 2016. In a statement, Williams said it had received approval for Gulf Trace from the U.S. Federal Energy Regulatory Commission (FERC) and had set a date of the first quarter of 2017 for the project to be in service. The statement said Gulf Trace was part of $5.1 billion worth of transmission projects targeting the eastern U.S. Gulf Trace will feed gas obtained from fracking in Pennsylvania’s Marcellus Shale basin to Sabine Pass. Pipeline company giant Energy Transfer Partners (ETP) recently purchased Williams Companies for $32.6 billion. ETP — whose assets include both hotly-contested proposed Dakota Access LLC pipeline and the Trans-Pecos Pipeline — is run byCEO Kelcy Warren, who served as an advisory committee member and donor to former Republican Party presidential candidate Rick Perry. Perry sits on ETP‘s Board of Directors. Sabine Pass LNG Terminal owner Cheniere Energy, the first company in the fracking era to receive an export permit from the Obama Administration back in 2012, also has a politically connected Board of Directors. Among its members is Obama’s former climate czar, Heather Zichal. FERC has come under fire of late for rubber-stamping nearly every project proposal landing on its desk. Read more here