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The Weekly Oil & Gas Follies

Apr 20 2014, 10:53am CDT | by

The Weekly Oil and Gas Follies – Volume 42, April 21, 2014 In which we drill down into the @GDBlackmon Twitter feed to briefly chronicle the week’s silliness, shenanigans, fake news and real news...

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14 weeks ago

The Weekly Oil & Gas Follies

Apr 20 2014, 10:53am CDT | by

The Weekly Oil and Gas Follies – Volume 42, April 21, 2014

In which we drill down into the @GDBlackmon Twitter feed to briefly chronicle the week’s silliness, shenanigans, fake news and real news related to the oil and natural gas industry.

 

The radical anti-fracking advocates at the Post Carbon Institute took over leadership on the whole “Peak Oil” argument a few years ago.  Since doing so, they have turned what was at one time a somewhat misguided and short-sighted mathematical endeavor into a full-blown religious cult, in which every data point, regardless of its nature, becomes twisted into a support point for the argument that the dreaded “Peak Oil” – and/or “Peak Gas” depending on what day it is and which side of the bed these activists wake up on – is just around the corner, and nations that depend upon petroleum products for much of their energy mix, i.e., pretty much every nation on the face of the earth, are DOOOOOOMED!

These people are quite verbose, able to whip out 3,000 word diatribes with the snap of a finger.  Here is their latest spin on the same lyrics and tune:  The Gross Society:  Entering an age of Energy Impoverishment.

Note that the Cult’s entire argument in this piece (assuming you have the patience and lack of anything better to do to actually read the whole thing) hinges on acceptance of the assertion that oil prices are somehow today at historic highs.  Think about that for a second:  That assertion is not remotely true in absolute terms, much less in inflation-adjusted terms.

In absolute terms, the price of oil exceeded the current price for WTI by 50% in 2008, rising as high as $147/bbl before suffering a steep decline at the advent of the Great Recession.  But in inflation adjusted terms, there have been many times in the past when the real price of crude oil exceeded the current prices for WTI or Brent crude.  Just off the top of our melon-like head we can tick off 2011 and 1980, to name just a couple of years in addition to 2008.

More to the point, the price of gasoline is really the key statistic that indicates the true cost of petroleum to any country’s economy, and there is literally no case to be made that current gasoline prices are at historically high levels on an inflation-adjusted basis.

Look, nobody with any sense or knowledge on the subject argues with the proposition that oil is a finite resource.  We will indeed reach a “peak” and even run out of recoverable crude oil resources at some point in the distant future.  The question at hand here is when will that point in time take place?  The Peak Oil cult alternately argues that we are on the verge of reaching the “peak”, or have indeed already reached it.  Meanwhile, global crude oil reserves and production continue to steadily rise, and every real expert understands that we are just at the tip of an enormous underground iceberg when it comes to identifying and producing global shale oil reserves.

As for the whole “Energy Impoverishment” argument, it is crucial to remember that the goal of the radical environmentalist movement personified by the Post Carbon Institute activists is to deny nations access to abundant, affordable energy that oil and natural gas provide every day.  Energy impoverishment is in fact what we will all experience if these people ever do achieve their ultimate goal in life.

At the end of the day, “Peak Oil” theory has become nothing but a religious exercise engaged in by environmental radicals, designed solely as an effort to create alarm in the public’s collective mind about continued reliance on crude oil and natural gas as our main source of energy. 

That’s what it is, and if you fall for it, well, shame on you.

 

The Oil Patch Photo of the Week, Courtesy of @GDBlackmon:  Lunch at The Wellhead Café in Artesia NM

 

Noooo…you think?:  Oil Trains Run Because Pipelines Don’t – Some politicians in California, and people like me who live near railroad tracks, are waking up to the fact that four times as much oil was shipped to California by train over the last year than the previous year. Most of it was heading to refineries here in Southern California. As the oil trains have increased, so have complaints and environmental concerns about them.
What is subsidizing Corn Ethanol, Alex?:   The Dumbest Federal Policy You Will Read About Today – If you are like most people, you probably spend a lot of time wondering, “What is the absolutely worst environmental policy on the planet?” And if you are like most people, you probably think it is America’s ethanol policy. So Virginia’s recent decision to subsidize what will be the largest ethanol plant on the East Coast might strike you as doubling down on the dubious./>

Now for Our Totally, Completely, 100% Shamelessly Self-Serving Link of the Week!:  “King Coal” is Dying – Prince Oil & Gas is Next – Several years ago, during a period of time when some in the oil and natural gas industry were engaging various environmentalist organizations in discussions on how to promote and better regulate natural gas as a fuel for power generation, a very wise man took me aside and said, “Don’t kid yourself.  These groups are focused on killing coal right now, but once they’re done with them, they’re coming after us.”  Now that the environmentalist lobby, working in concert with the Environmental Protection Agency – which is largely populated by folks who came out of these same environmental organizations – has almost succeeded in killing the nation’s coal industry for all intents and purposes, it is obvious that truer words were never spoken.  Anyone paying attention to what is happening today in the U.S. energy space can clearly see that the focus of the radical environmental movement is indeed turning very quickly to efforts to do the same with oil and gas.

Count us in:  Why I’m Cheering for Fossil Fuels on Earth Day – On my TV show this week, statistician Bjorn Lomborg points out that “air pollution kills 4.3 million people each year … We need to get a sense of priority.” That deadly air pollution happens because, to keep warm, poor people burn dung in their huts.  Yet, time and again, environmentalists oppose the energy production most likely to make the world cleaner and safer. Instead, they persuade politicians to spend billions of your dollars on symbolism like “renewable” energy.

Our Money’s on Chuck:  Chuck Norris, Jared Leto Battle Over Keystone – “On one side you have people whose living is made from notoriety and on the other you have supporters of KXL who have taken a stand because they believe it is the right thing to do for their labor union or their constituents or the community,” said R.C. Hammond, a spokesman for the Consumer Energy Alliance, an industry-backed group whose members include Exxon Mobil Corp. Asked to name celebrities on his side, Hammond said in an e-mail that investors Warren Buffett and T. Boone Pickens favor Keystone, as does action-movie star Chuck Norris.

Biofuels are the “Fuel of the Future”….and always will be:  Dual Turning Points for Biofuels – But even as Abengoa and other companies prepare to produce significant amounts of cellulosic ethanol, using corn stalks and wheat straw as opposed to corn itself, the appetite for such fuels seems to be diminishing.  The market is saturated with ethanol from corn. The automobile and oil industries are resisting efforts to increase the amount of ethanol blended into gasoline. And now the Environmental Protection Agency is considering reducing the amount of advanced biofuels required for blending into vehicle fuels this year by more than 40 percent below the original target in the Energy Independence and Security Act of 2007.

Some Quick Hits:

True:  Global Warming’s Upside Down Narrative

Cool:  Marcus Hook Refinery Gets Makeover as Natural Gas Hub

Obviously:  Proof that the Feds are Stalling Oil & Gas on Federal Lands

 

That’s it for now – Have a Happy Easter!

Follow me on Twitter at @GDBlackmon

 
Update
10

7 weeks ago

RM47mil KWSG contributions still unclaimed

Jun 9 2014 7:54am CDT | Source: Business Times Malaysia

KUALA LUMPUR: About RM47 million of contributions in the Teachers Provident Fund (KWSG) still remain unclaimed, the Dewan Rakyat was told toda ...
Source: Business Times Malaysia   Full article at: Business Times Malaysia
 

 
Update
9

7 weeks ago

Gold shop lost almost RM1mil

Jun 9 2014 3:50am CDT | Source: Business Times Malaysia

KANGAR: A gold shop owner lost almost RM1 million after after the safe on in his shop was br ...
Source: Business Times Malaysia   Full article at: Business Times Malaysia
 

 
Update
8

7 weeks ago

Motion to debate MAS losses in Dewan Rakyat rejected

Jun 9 2014 3:39am CDT | Source: Business Times Malaysia

KUALA LUMPUR: AN emergency motion to debate the losses incurred by Malaysia Airlines last year, amounting to RM1.2 billion was rejected by the Dewan Rakyat ...
Source: Business Times Malaysia   Full article at: Business Times Malaysia
 

 
Update
7

7 weeks ago

MH370 Tragedy: Hisham: RM27.6 mil spent on 1st phase of SAR

Jun 9 2014 2:11am CDT | Source: Business Times Malaysia

KUALA LUMPUR: Malaysia spent some RM27.6 million in its first phase of the search operations for missing Malaysia Airline flight MH370, said Acting Transport Minister, ...
Source: Business Times Malaysia   Full article at: Business Times Malaysia
 

 
Update
6

7 weeks ago

9.1m litres of diesel seized in a month

Jun 8 2014 1:11am CDT | Source: Business Times Malaysia

PUTRAJAYA: The Domestic Trade, Cooperatives, and Consumerism ministry has seized some 9.1 million litres of diesel and property worth RM58 million since mounting ‘Operasi Diesel Se ...
Source: Business Times Malaysia   Full article at: Business Times Malaysia
 

 
Update
5

8 weeks ago

Girl, 9, awarded RM2.78m compensation for medical negligence

Jun 6 2014 4:56am CDT | Source: Business Times Malaysia

KUALA LUMPUR: A nine-year-old girl who suffered brain damage during her birth at a government hospital was awarded over RM2. ...
Source: Business Times Malaysia   Full article at: Business Times Malaysia
 

 
Update
4

8 weeks ago

Malaysia's total trade in April up 12pc

Jun 5 2014 11:52pm CDT | Source: Business Times Malaysia

KUALA LUMPUR: Malaysia's total trade in April 2014 rose by 12 per cent from a year ago to RM123.86 billion due to growing trading activities, International Trade and Industry Minister Datuk Seri Mus ...
Source: Business Times Malaysia   Full article at: Business Times Malaysia
 

 
Update
3

8 weeks ago

Works Ministry to spend RM20m for upgrading works at 50 accident black spots

Jun 4 2014 11:35pm CDT | Source: Business Times Malaysia

JOHOR BARU: The Works Ministry will implement upgrading works at 50 accident prone locations in the country that have been identified this year involving an allocation of RM20 milli ...
Source: Business Times Malaysia   Full article at: Business Times Malaysia
 

 
Update
2

8 weeks ago

Najib launches loan scheme for Ramadan traders

Jun 4 2014 10:24pm CDT | Source: Business Times Malaysia

PUTRAJAYA: Prime Minister Datuk Seri Najib Razak today launches RM45 million Ramadan Bazaar Scheme 201 ...
Source: Business Times Malaysia   Full article at: Business Times Malaysia
 

 
Update
1

8 weeks ago

Residents bring up objection against Kidex to Suhakam

Jun 4 2014 4:49am CDT | Source: Business Times Malaysia

PETALING JAYA: A group of 20 Petaling Jaya residents held a meeting with the Human Rights Commission of Malaysia (Suhakam) over their objection against the proposed RM2.2 billion Kinrara Damansara ...
Source: Business Times Malaysia   Full article at: Business Times Malaysia
 

 

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