OWOE has pointed out similarities between today’s Big Oil and last millennium’s Big Tobacco several times over the years. In September 2022 we published “Don’t Blame the Suppliers, Unless They Are Big Oil” where we shared articles documenting the efforts of the fossil fuel companies to engage in a public relations campaign to sow doubt in the science of climate change by following the playbook of the tobacco industry. And in August 2023 we published “Big Oil Stuns Again” where we addressed the greenwashing that the oil companies are currently engaged in and speculated that Big Oil’s lack of civic responsibility might become legal liabilities in the future, similar to what happened with the tobacco industry. Recent events have made it even more clear that, yes, Big Oil is following in the footsteps of Big Tobacco and is likely to meet a similar fate.Continue reading Big Oil Is the New Big Tobacco
Venezuela has the largest proven oil reserves in the world, reported at 303 billion barrels in 2019 (BP Statistical Review of World Energy), and yet only produced 723,000 barrels per day (MBPD) in August 2022. In contrast, Saudi Arabia is a close second in total reserves at 298 billion barrels, produced 11 million barrels per day (MBPD) that month. That is, with essentially the same reserves, Saudi Arabia produces over 15 times as much oil. The history behind the collapse of the Venezuelan oil industry is a clear lesson of the failure to understand how to manage a critical natural resource in today’s complex, interdependent world economy. If we turn to Russia, before the invasion of Ukraine it was producing 11.3 MBPD and was the largest exporter of oil to the world’s markets at 7.8 MBPD in December 2021. About 60% of those exports went to European countries. Given the West’s determination to end its dependence on Russian oil coupled with the impact of Western sanctions on Russian finance and industry, it is not hard to see the collapse of the Russian oil industry and a new oil-rich but oil-dysfunctional country ensuing, one which we will start referring to as Eastern Venezuela.Continue reading Coming Soon – Eastern Venezuela
Bill Luyties, OWOE Founder and Technical Editor: Last year OWOE published a blog titled “Don’t Blame the Suppliers. It was intended to help focus the narrative related to climate change from attacks on the supply side of the contributors to climate change, i.e., the big oil companies, to the demand side, i.e., consumers who want big cars and to buy lots of everything. However, since that time I have come across several articles published by the BBC: one published in 2020 titled “How the oil industry made us doubt climate change” and another published earlier this year titled “The audacious PR plot that seeded doubt about climate change“. These articles document the efforts of the fossil fuel companies to engage in a public-relations campaign to sow doubt in the science of climate change by following the playbook of the tobacco industry from several decades earlier. Thus, I would like to update the title of that blog to “Don’t Blame the Suppliers, Unless They Are Big Oil”.Continue reading Don’t Blame the Suppliers, Unless They Are Big Oil
OWOE Staff: It’s a new year, we have a new president and administration, and we have new hope that the plan to vaccinate Americans is going to finally end the pandemic. What we don’t have is new thinking on what this country should be doing for a long term, rational and strategic energy policy. OWOE believes it is the right time to propose a comprehensive energy policy that balances America’s needs with the planet’s needs and is based on sound economics, realistic technology and good common sense. The OWOE energy policy combines several key elements, including: firm commitment to dramatically reduce dependence on fossil fuels in a planned and rational manner, sustainable investment in renewable technologies, and establishment of a North American Energy Alliance (NAEA) between the US and Canada to aggressively develop and globally sell our existing energy resources.Continue reading Time for a New Energy Policy
By OWOE Staff: Happy 2021 dear readers and supporters of OWOE. As everyone is aware, 2020 was a most unfortunate series of events, beginning with the release of a virulent pathogen from China which resulted in a wide range of foreseeable acute and long range economic, social and energy consequences. Thus, OWOE staff are working hard to analyze these consequences to provide meaningful insight about energy matters going forward. We plan a variety of interesting updates to our core energy information, tools and blogs this year and perhaps even a contest involving energy self-sufficiency at the local level. Many of the changes happening in the world of energy are the cumulative results of individual changes in consumption resulting from economic turmoil compounded by inept government policies and continuing industry business practices.Continue reading A Look-back at 2020
Guest blog by S. A. Shelley In the first blog of this series, I summarized the huge energy resources of Canada. In the second blog, I showed how most of those resources have been or are being squandered and how governments with good intentions, at times more often than naught, deliver bad outcomes. While statistically bad outcomes can be unintentional, in Canada a lot of bad outcomes are actually the deterministic result of government strategy. Coupled with the breakdown of the rule of law at the highest levels, Canada is in bad shape. That unfortunately is the very big ugly in Canada. Other factors resulting in Canada’s bad energy situation are the focused actions by small groups of well-funded opponents and the apathy by the populace who have been habituated to the sweet lucre of government largesse. Canadians are generally kind and polite people, but at the governing level, the plotting and duplicities surpass a Shakespearean tragedy. The Russians probably learn by watching what happens in Ottawa.
The biggest warning that I have is that the path that Canada is on will more likely lead to Canada becoming the next Venezuela – corrupt, ineffective and when in trouble, doubling down on failed collectivist ideas, instead of returning to integrity, order and prosperity.Continue reading Canada and Energy: Part 3 – It’s Very Ugly
By W. H. Luyties, editor OWOE. With the election of Donald Trump as president of the US and control of all 3 branches of the government in the hands of Republicans, who have historically been strong supporters of fossil fuel interests, one lightning rod topic has been the push to increase coal and oil production in the US. This has energized both proponents of fossil fuels, who see an opportunity to possibly save their industries (coal) or increase production (petroleum), and opponents, who fear the environmental consequences of such a change. But is this a real threat to the global move away from fossil fuels, or is it simply rhetoric to energize a political base? Continue reading The latest push for fossil fuels – rhetoric or reality? Part 1 – Coal
Guest blog by S. A. Shelley Imagine a future where your choices for purchasing a new car include numerous options for electric vehicles (EV’s) and internal combustion vehicles (ICV’s). But competing with the typical federal or state subsidies for the EV’s are hefty rebate checks from OPEC or Russia for purchasing a fossil fuel burning ICV. That may sound crazy, but in today’s age of large supplies of easily produced shale oil, inexpensive renewable energy options, and changing societal demographics, it’s only a matter of time before the current oil glut results (see EIA figure below) in stranded oil resources that are too expensive to produce for many of the suppliers, drastically reduced supply-side control from oil producers, and a critical need for oil suppliers such as OPEC to find creative ways to stimulate demand.
Last month’s OWOE blog “Did the World Hit Peak Oil in 2015 and Nobody Noticed?” generated some interesting discussion. One follower raised a very good question regarding whether we have compared the fate of the oil industry with the fate of the coal industry in terms of the effect of oil and gas as disruptive technologies. Since it’s been some time since we touched on coal, now is an ideal time to use this question as a lead-in to the broader subject. The simple answer is “yes”, as the relatively recent rapid decline in coal production and usage has been a demand driven phenomenon caused by many of the same issues as we are seeing with coal. If we look only at the US, peak coal occurred in 2008, as illustrated in this figure from the Energy Information Administration (EIA).
On Friday President Obama announced that he had rejected the request from TransCanada to build the Keystone XL oil pipeline which ultimately would have transported 800,000 barrels a day of heavy oil from the Canadian oil sands to the US Gulf Coast refineries. This ended a seven-year review that had become a contentious political issue and symbol of the debate over his climate policies. Continue reading Cancellation of Keystone Pipeline – A win for climate change or misplaced symbolism?