U.S. Oil Production Boom
http://thedianerehmshow.org/shows/2012-11-14/us-oil-production-boom
According to the International Energy Agency U.S. oil and gas production will exceed that of Saudi Arabia in less than seven years. The boom in shale oil extraction is behind this remarkable turnaround. Increased production will spur job growth in some states and will likely lead to an overall improvement in the balance of trade, and it could also set the stage for geopolitical shifts. However, analysts caution the increase won’t usher in the much touted goal of energy independence, nor is it likely to fully cushion us from price volatility. There are environmental concerns as well. Please join us to discuss the implications of stepped up U.S. oil production.
Guests
J. Robinson West
chairman of PFC Energy, an energy consulting firm.
Coral Davenport
energy and environment correspondent for National Journal.
David Goldwyn
president of Goldwyn Global Strategies, and former U.S. State Department special envoy for international energy and assistant secretary of energy.
Michael Brune
executive director of Sierra Club.
Comments
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Fresh drinking water production in the USA will then consequently dip below that of Saudi Arabia. And even with the oil boom we'll still be importing at least a third of what we burn and paying a per gallon price determined by global demand. This is the hottest year ever and chaotic weather has begun, so in 8 years, no food either. Blessed are those who hunger and thirst for righteousness. For they know 99% of oil profits go to the 1%. Pray for decentralized renewable energy, not corporate vampirism.
Who are the guests today? I hope someone talks about the implications for the environment and the climate of this boom.
@Pancake Rankin
I'm a liberal and agree with the Green Party FAR more often than the Republicans when it comes to the environment. But statements like:
"...so in 8 years, no food either. Blessed are those who hunger and thirst for righteousness. For they know 99% of oil profits go to the 1%. Pray for decentralized renewable energy, not corporate vampirism."
These are a bit hyperbolic, are they not? I'm not a fan of oil companies and what they do but I AM a person who loves cars and motorsports. As long as demand continues, so will oil companies continue to do their thing.
I doubt that everyone who would like to see change has decided to drive an all-electric vehicle charged only by solar panels at their home (to say nothing of battery production being horrible for the environment).
Please discuss California's new cap and trade program to reduce carbon emmisions. Auction process starts today.
Please address oil subsidies in detail
Please address oil subsidies in detail
Pancake Rankin wrote:
"This is the hottest year ever"
Utterly false.
"and chaotic weather has begun,"
Also, utterly false.
Eric Zehnder: I have two plug-in Prius's and am ashamed of my energy use.
Do you advocate driving your ATV over the faces of hungry children?
Your present indulgent lifestyle has blinded you to environmental inevitabillities, so that you are" hypobolic" in your pollitics I guess.
Most Greens are not prepared for energy justice.
As long as countries like Saudi Arabia, Venezuala, Iran, Russia, etc., have the largest "proven reserves" of oil, they will hold the advantage in the oil market.
Oil and gas is heavily subsidized by the American government don't let's get hypocritical about cost. Also, even with the estimate of increased production in the U.S. It will not lower the cost to the individual consumer one iota. In fact the history is that the companies will enforce rate hikes in order to pay for the increased production.
Coos Bay, Oregon is one of the most economically depressed cities in our nation. LNG companies promised Coos Bay that the LNG plant and pipeline that will terminate in Coos Bay would IMPORT natural gas, and thus provide much needed industrial jobs here where we need them. Now the truth is out, these companies really planned to EXPORT the gas to Asia. We hated being lied to here in Oregon, and now we face the loss of our lands, the dangers of the natural gas pipeline and terminal with no industrial jobs created here.
kathleen: Yep, compare them to renewable energy incentives.
Too often our tax money finds a route to the wealthiest through corporate welfare. Who can afford a $100K TeslaS, so that they can reap a $7,500 credit from the Feds?
Your guests keep talking about the high costs of renewable energy. The truth is that fossil fuels are already being subsidized and the externalities of pollution (both on public health and climate change) are totally ignored.
I'd like to see a true comparison of the cost of renewable energy vs. fossil fuel energy production with these externalities considered.
Diane, every time a natural gas proponent talks about lower carbon emissions from natural gas as compared to coal, please ask them to address emissions of methane from natural gas production. Methane is a much more powerful greenhouse gas than CO2.
When speaking about costs of power generation, why doesnt Mr Brun mention the costs associated with fossil fuels which our current economic model assigns no cost? Air and water pollution foremost among them. If there were ECONOMIC costs (best imposed through a carbon tax), wind and solar energy would make much more economic sense. It amazes me when people act as if there is no cost borne by society due to fossil fuel extraction and use.
We can not have this conversation without acknowledging the big picture that if we continue to extract oil and gas as we are, that the environmental effects will cost us in increased adverse environmental effects (including more natural gas drilling caused earthquakes and loss of habitat and biodiversity, etc -- not glamorous, but certainly the big picture long term) and related health care costs in the long run. Who says that the rest of the "developing" world should follow in our footsteps. As a "world leader" is it not in our best interest to better ourselves and the world by demanding more for ourselves? Surely we can put our country to work developing beyond oil and gas (as we extract and use them currently) and teach the world to have a secure future on all fronts (economic, energy, health, etc). There are efficient examples of efficient mixes out there. Just look at the development outside of Abu Dhabi that even uses ancient techniques (Arabian wind tower) to drive wind through the city to cool it. The ridiculous amounts of revenue that the oil and gas companies make could be invested (along with other private and public investments) into these very basic techniques and very advanced ones to really transform the world in more positive ways. Sigh. I would like to see more vision and less greed in the overall management plan for our country and the world.
I think that it is time to reframe the conversation around energy use to focus it on non-climate related issues. In my opinion it would be easier to build consensus around renewable energies if we did so to address national security issues, economy issues, and strengthen our position by not relying on others. While it is hard to convince some that fossil fuels damage the environment, the ability to accomplish amazing things through national ingenuity and be self reliant have traditionally been values central to who we are as a people.
Coal fired plants have been delaying & bewailing changing and scrubbing their stacks for 50 years, and 'building data' to criticize all attemps to incentivize them on behalf of anyone but their corporate payroll.
However, rental properties are never addressed in energy relief except thru 'energy share', which people can donate to and get a tax write-off for contributing, which subtracts from our tax income, and the poor have to jump thru hoops and bow and scrape in gratefulness for the 'help. Yet, in Norfolk, on a foggy fall morning, you can walk thru my neighborhood and see houses where the steam is pouring out the chimney, and you might think 'meth house' or 'growing marijuana,' or even 'a cloud generator, but in reality it is just Norfolk's rental housing, those that have been being rented for years, and have had no upgrading. Right next door you can see a normal updated house. So walk the street and pick out the rental property in Norfolk. You see fuel going out the roof, the kids miserable and unable to study, and the 'home owners' walking by and saying 'how disgusting' renter's are, and not welcome in the civic leagues. So, find energy by not wasting it, and building capacity for more generation.
Landlords receipts for upgrading property should be verified since they get tax write-off for their 'expenses', but does the receipt match the rental address, or the landlord's own residence. I am just asking....
Gas prices in US low now but not when linked to international market like is the case with oil. Also wind and solar offers a long term and therefore valuable hedge against the price of fossil fuels.
Using renewables will lower mfg and other businesses costs over the long term. While natural gas may be needed for backup (grid tied) until battery technology improves, businesses using solar/wind energy means they have only an initial expense in purchasing the panels or wind generator. Over time this is paid off, and the business will have no energy bill for the power produced and used for decades. This is potentially a huge benefit over the long term. (Wind generators will require occasional maintenance, but solar panels almost always work for years beyond the stated life....) It also gives the business more financial security over the long term.
Also, the world was becoming a bit concerned about 'peak oil', which is now not a problem. Why not talk about regulating how quickly we use the new resources available to us? If we use renewables as much as possible, we extend the number of decades that we can use the gas/oil as a backup. Once it's gone, it's gone. Presumably the human race will still be here. In a similar manner to how fish stocks are managed to ensure that fisherman don't fish themselves out of a job, gas/oil could be managed also for future generations. Use solar during the day and the grid at night, for example. Oil and gas have received subsidies for decades - put the amount into renewables that has been put into gas/oil and renewable technology will advance
Working more towards low energy appliances, energy efficiant, and sustainable housing would greatly reduce the power requirements thus making renewable energies more viable.
Of course I'd have to expect a representative if the oil and gas company to denigrate the role of renewable energy because it would break the monopoly of the fossil fuel energy companies in the U.S. Also,even though apparently domestically produced energy can't be exported, doesn't any oil produced have to go into the global market?
Re: the current viability of wind energy.
This mornings local Johnstown Pa newspaper reports that the local wind turbine mfg (the Spanish company Gamesa) will layoff 50% as federal tax credit/subsidy is set to expire Jan 1st.
As an aside, during the initial economic crash Gamesa was given 22 million dollars from the initial federal response money.
Im not opposed to the govt getting an industry up, but in tough times the public may think otherwise.
Also, regarding wind power in Germany. The towers are ubuquitous. Too a degree, which i feel, would not be tolerated in the US. Their presence, however, should not be taken as a sign of a public wholly in support. They are also considered there as eye sores by many. The public grumbles but ultimately and begrudgingly accepts them as an imperfect necessity whose contribution to the country's security exceeds any undesirable facets.
Need to recognize the tradeoff between water and fossil fuel extraction. Please add to your reference list.
Recent GAO report:
http://www.gao.gov/products/GAO-12-880
Improved energy and water planning will require better coordination among federal agencies and other stakeholders. GAO’s work has demonstrated that energy and water planning are generally “stove-piped,” with decisions about one resource made without considering impacts to the other resource. . . For example, in the Energy Policy Act of 2005, Congress directed the Department of Energy (DOE) to establish a federal program to address the energy-water nexus, but DOE has not done so.
Diane,
Part of the problem is the fully burdened costs of fuel and the energy produced from it. It is my understanding that we DO NOT pay for long term costs of waste storage of coal ash or spent nuclear fuel. So isn't aren't cheap cost per kilowatt for coal and nuclear power artificially low? It promotes nightmarish scenarions in the very long run considering the problems with these types of waste.
Speaking as a developer of solar, biomass, and biogas renewable projects, the low cost of natural gas has just cut the legs out from under our financial viability: just last week Progress Energy and soon Duke Energy, the largest utility, has requested a cut in its "avoided cost" from 7 cents/KWh to 5 cents/KWh. Solar and biomass has come down so much over the last 4 years that we were able to make 7 cents work. 5 cents wont work. I anticipate the collapse of the renewable energy industry in NC, the Southeast, and possibly the country. And this is a new clean tech industry that has seen 12% annual growth during the past 4 years. Natural gas is allowing the utilities to drop their prices so low that renewables, even with the current incentives, will not be able to compete.
Please ask them to speak to pumping up lakes at some elevation above a town or energy user as a kind of "gravity water battery" to use excess renewable energy to pump the water up. Then when you need more energy BACK, let the water back down through hydro generators. No chemicals needed for batteries, no special research in storage of hydrogen or fusion or advanced batteries, no precious or rare earth metals. The water never wears out, its always water and gravity never wears out. It always works the same for... ever.
Also please ask about using "Hot Rock (enhanced) Geothermal" to tap the average temperature of the earth at 3km of 700* F to run a steam turbine from the earth's heat in the core!
See:
http://en.wikipedia.org/wiki/Geothermal_electricity
I'd like the panel to comment on the social ramifications of massive fast-paced growth in small communities who do not have the infrastructure or public service staffing to keep up with the demands of their new reality of being a boom town. I'm specifically familiar with Stanley, ND between Williston and Minot in the Bakken. Drug and alcohol abuse is rampant among oil workers, crime has exploded. The murder of a small town Montana teacher out for a run was committed by men associated with North Dakota oil field work.
Thank GOD the Sierra Club man is on their to set the record straight.
"Meanwhile, activists on the Canadian side have robbed the administration of the only real argument for proceeding with Keystone: They’ve rallied to effectively stop construction of the proposed Northern Gateway pipeline from Alberta to the British Columbia coast, meaning that the tar sands tycoons can’t simply send their oil off to China by some other route."
Bill McKibben.
Please go to Sunday's rally.
Most of the conversation about this new "boom," and energy issues in general seems terribly short-sighted.
Taking middle-of-the-pack estimates of how much gas and oil there is in these new, hard-to-extract formations, there's only enough supply for something on the order of a decade or two of total U.S. consumption.
Say we drill, mine, frack these until everything relatively easily accessible is gone. We will have further juiced the atmosphere with all that entails, diverted funds and resources away from conservation and sustainable solutions, all while a few profiteers pocket the windfall.
There are better things to do with petroleum and gas than burn it. We'll realize this when it's too late.