Category Archives: Fossil Fuels

Canada and Energy: Part 3 – It’s Very Ugly

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

The latest push for fossil fuels – rhetoric or reality? Part 1 – Coal

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

OPEC Supply Cuts Will Accelerate Decline in Oil Demand

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.

Source: EAI Dec 2016

Continue reading OPEC Supply Cuts Will Accelerate Decline in Oil Demand

Peak Oil vs Peak Coal

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).

US Quarterly Coal Production
US Quarterly Coal Production

Continue reading Peak Oil vs Peak Coal

Cancellation of Keystone Pipeline – A win for climate change or misplaced symbolism?

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?

MIT Plan for Action on Climate Change

On October 21st the Massachusetts Institute of Technology (MIT) issued its Plan for Action on Climate Change. This document was the culmination of a year of discussions within the MIT community on the risks of climate change and the role that MIT should play as a leader on climate sciences and energy innovation. MIT’s position is that overwhelming evidence shows that the world is warmer than it was in the pre-industrial age, and that present-day climate change is due to human activity, in particular the emission of greenhouse gasses. MIT supports the 2C Challenge which aims to limit warming to 2 degrees Celsius above pre-industrial levels and sees the need for a world-wide, aggressive but pragmatic transition plan to achieve a zero-carbon energy system. Continue reading MIT Plan for Action on Climate Change