Showing posts with label Oil Supply. Show all posts
Showing posts with label Oil Supply. Show all posts

State of Failure

SUBHEAD: How is it in Bashar al-Assad’s interests to provoke a fresh international uproar against him and his regime?

By James Kunstler on 9 April 2018 for Kunstler.com  -
(http://kunstler.com/clusterfuck-nation/state-of-failure/)


Image above: War Criminal Votes. Bachar al-Assad and his wife Asma at a polling place during a recent vote in Damascus, Syria. From (http://www.newindianexpress.com/world/2018/mar/19/syrias-assad-congratulates-vladimir-putin-on-natural-victory-1789486.html).
BEIRUT, Lebanon — Days after President Trump said he wanted to pull the United States out of Syria, Syrian forces hit a suburb of Damascus with bombs that rescue workers said unleashed toxic gas.
Fool me once, shame on you; fool me twice, shame on me, the old saying goes. So, tread carefully through the minefields of propaganda laid for the credulous in such low organs as The New York Times.

There are excellent reasons to suppose that the American Deep State wishes strenuously to keep meddling all around the Middle East.

The record so far shows that the blunt instruments of US strategic policy produce a consistent result: failed states.

Syria was well on its way to that sorry condition — prompted by an inflow of Jihadi maniacs fleeing our previous nation un-building experiment in Iraq — when the Russians stepped in with an arrantly contrary idea: to support the Syrian government.

Of course, the Russians had ulterior motives: a naval base on the Mediterranean, expanded influence in the region, and a Gazprom concession to develop and manage large natural gas fields near the Syrian city of Homs, for export to Europe.

The latter would have competed with America’s client state, Qatar, a leading gas exporter to Europe.

But the US objected to supporting the government of Bashar al-Assad, as it had previously with Saddam Hussein and Muammar Gaddafi, as well as Russia’s presence there in the first place.

So, the US cultivated anti-government forces in the Syrian civil war, a hodgepodge of Islamic psychopaths variously known as ISIS (Islamic State of Iraq and the Levant), Daesh, al-Qaeda, al-Nusra, Ansar al-Din, Jaysh al-Sunna, Nour al-Din al-Zenki, and what-have-you.

As it happened, US policy in Syria after 2013 became an exercise in waffling. It was clear that our support for the forces of Jihad against Assad was turning major Syrian cities into rubble-fields, with masses of civilians caught in the middle and ground up like so much dog food.

President Barack Obama famously drew a line-in-the-sand on the use of chemical weapons. It was well-known that the Syrian army had stockpiles of chemical poisons.

But the US also knew that our Jihadi consorts had plenty of their own. Incidents of chemical atrocities were carried out by… somebody… it was never altogether clear or proven… and Mr. Obama’s line-in-the-sand disappeared under dust-storms of equivocation.

Finally, a joint mission of the United Nations Human Rights Commission (UNHRC) and the Organization for the Prohibition of Chemical Weapons (OPCW) was called in to supervise the destruction of the Syrian government’s chemical weapons, and certified it as accomplished in late 2014.

Yet, poison gas incidents continued — most notoriously in 2017 when President Donald Trump responded to one with a sortie of cruise missiles against a vacant Syrian government airfield.


Image above:  War Criminal Votes. Donald Trump, with his wife Melania, votes for himself at polling place during 2016 Presidential Election. From (https://qz.com/831181/election-2016-how-do-you-write-donald-trump-in-chinese/).

And now another incident in the Damascus suburb of Douma has provoked Mr. Trump to tweetstormed threats of retaliatory violence, just days after he proposed a swift withdrawal from that vexing corner of the world.

Surely by now the American public has developed some immunity to claims of nefarious doings in foreign lands (“weapons of mass destruction,” and all).

The operative sentence in that New York Times report is “…Syrian forces hit a suburb of Damascus with bombs that rescue workers said unleashed toxic gas.”

Yeah, well, how clear is it that the toxic gas was contained in the bombs, or rather that the bombs dropped by the Syrian military blew up a chemical weapon depot controlled by anti-government Jihadis?

Does that hodgepodge of maniacs show any respect for the UN, or the Geneva Convention, or any other agency of international law?

As in many previous such incidents, we don’t know who was responsible — though there is plenty of reason to believe that parties within the US establishment are against Mr. Trump’s idea of getting the hell out of that place, and might cook up a convenient reason to prevent it.

Lastly, how is it in Bashar al-Assad’s interests to provoke a fresh international uproar against him and his regime? I’d say it is not the least in his interest, since he is on the verge of putting an end to the awful conflict. He may not be a model of rectitude by Western standards, but he’s not a mental defective.

And he has very able Russian support advising him in what has been so far a long and difficult effort to prevent his state from failing — or being failed for him.

[IB Publisher's note: We have been at war in the Middle East since 2001 and at war in Syria since 2013. As Americans we are now in a state of perpetual war in that region that accelerates ecosystem collapse and permanent climate change and mass exodus. Next stop Iran!]

See also:
Ea O Ka Aina: Syriasly! 4/2/18
Ea O Ka Aina: US shoots down Syrian jet 6/19/17
Ea O Ka Aina: Australia suspends Syria overflights 6/ 20/17
Ea O Ka Aina: Syria poison gas story unravels 4/18/17
Ea O Ka Aina: Source of Sarin gas attack faked? 4/14/17
Ea O Ka Aina: US has used DU in Syria 2/19/17
Ea O Ka Aina: Ms Gabbard goes to Syria 1/29/17
Ea O Ka Aina: Trump amps up war in Syria 1/29/17
Ea O Ka Aina: US shoots down Syrian drone 1/20/17
Ea O Ka Aina: Need for New Syria Policy 12/19/16
Ea O Ka Aina: To prevent still worse in Syria 10/4/16
Ea O Ka Aina: WWIII has begun in Syria 9/23/16
Ea O Ka Aina: Skidding towards Syrian War 6/19/16
Ea O Ka Aina: Hillary and the Syrian Bloodbath 2/15/16
Ea O Ka Aina: Road to World War III 2/14/16
Ea O Ka Aina: Don't Bomb Syria 11/28/15
Ea O Ka Aina: Ten reasons not to overthrow Syria 11/23/15
Ea O Ka Aina: Tulsi Gabbard on Syria 11/1/15
Ea O Ka Aina: Michele won't go to Syria 9/10/13
Ea O Ka Aina: Pentagon's Syrian Blackout 6/6/13
Ea O Ka Aina: Syria a preview of 2030 6/2/13
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Getting Past Trump

SUBHEAD: Instead of spreading democracy, we were more concerned with protecting our global oil supplies.

By Richard Heinberg on 7 March 2017 in Resilience - 
(http://www.resilience.org/stories/2018-03-07/getting-past-trump-this-is-how-democracies-die-part-1/)


Image above: "Democracy Now!.. Later" illustration. From original article.

Donald Trump’s 13-month tenure (so far) as president of the United States has been an exhausting sprint for onlookers concerned about the state of the global ecosystem and the fate of industrial civilization.

Nearly every day begins with a new outrage — whether Trump’s gutting of the Environmental Protection Agency, his announcement of the US exit from the Paris climate accord, his selling off of national parks, his opening of coastal waters for offshore drilling, his easing of regulations on fracking, or his seeking subsidies for coal mining and coal power plants.

 Among my environmentalist friends and colleagues, “Trump fatigue” is a real and common ailment.

But much the same could be said for millions of citizens who are only peripherally interested in environmental issues.

They awake each morning to read about the Stormy Daniels scandal, the Rob Porter scandal, the Anthony Scaramucci hiring/firing scandal, the Mike Flynn scandal, the James Comey firing scandal, the Tom Price scandal, the White House nepotism and security clearance scandal. The list could go on and on; who can possibly keep up?

The Tweeter-in-chief is monopolizing attention at a moment in history when there are plenty of other things we really should be attending to, including climate change, resource depletion, plastic pollution in the oceans, mass species extinction, the fate of US labor unions, racial and social injustice, and worsening economic inequality.

These are the sorts of unaddressed problems that could cause even history’s “greatest” civilization to crack up.

But the conversation never seems to get past Trump, who obdurately obstructs action on these issues while commanding everyone’s constant adoring or horrified attention through divisive words and actions.

Naturally, many people are speculating about how the Trump nightmare might end. Two possibilities include Democrats obtaining majorities in Congress in the 2018 elections and initiating impeachment proceedings, or a presidential resignation following indictments of staff and family.

But Trump may not be dislodged so easily: A war or terrorist incident could give him the pretext to at least partly shut down the apparatus of democracy (including the Mueller investigation).

An Italian friend reminds me that Trump shares many characteristics with Silvio Berlusconi — who, despite frequent scandals, has managed to dominate national politics in Italy for nearly 20 years.

While I’m not prepared to make a prediction about Trump’s fate (there are just too many variables and unknowns), I have come to an unpleasant conclusion: While Trump will certainly be gone at some point — whether next month or years from now — we’re never going to return to the pre-Trump status quo.

The system is irremediably broken. Trump is both a symptom and an agent of that brokenness. What we can do is begin to reconnoiter and assess our new, unstable, still-emerging reality.

To even begin to understand this new reality, it is first essential to recognize its context. The United States, and industrial societies generally, are approaching the end of a decades-long fiesta of rapid economic and population growth founded upon cheap fossil energy.

I’ve discussed this grand trajectory in several books, notably The Party’s Over and The End of Growth, so it’s unnecessary to go into much detail here, except to note that absolute production figures for oil, coal and natural gas (which have been rising in recent years) are less crucial than the accelerating decline in the amount of energy that society receives in return for each unit of energy it invests in procuring more energy.

This erosion of energy return on energy investment is unavoidable, given the method by which fossil fuels are harvested, with low-hanging fruit always being picked first.

Energy is the prime mover of civilization; therefore, as net energy declines, so does society’s capacity to build complex infrastructure, and increase production and consumption.

Everyone feels this diminishing systemic dynamism, but — since surprisingly few people pay attention to slow but decisive shifts in our energy economy — almost nobody understands it, including the most exalted economists.

So, feeling symptoms of malaise but unable to diagnose the cause, most people are driven simply to find someone to blame — whether Wall Street bankers, immigrants, international competitors (for the US, that would include China), “lazy” poor people, entrenched Washington lobbyists and bureaucrats, or “socialists” in the mainstream media.

The waning of the world’s energy return on investment isn’t a sudden development. Our energy regime grew, matured and weakened in stages. Back in the years when it was “great,” the US was the engine of the global fossil fuel power train.

Prior to World War II, it was the world’s top producer and exporter of petroleum; it was also the foremost producer of coal and natural gas. But that gradually changed.

In the 1970s, US oil and gas production began to decline (this was decades before the fracking boom — a subject to which we’ll return shortly); the nation was already importing more and more of its energy supplies.

In the 1980s, globalization began, and the amount of debt in the US economy started growing much faster than the economy itself. Real (inflation-adjusted) incomes of most US workers stagnated or declined.

Debt was effectively being used to purchase the services that energy provides, with the understanding that payment would be made later with interest.

The use of debt to mask flagging economic momentum is an old trick, and — as economists and historians have discovered — it works for only a relatively short time before precipitating financial collapse.

Parenthetically, some readers may be wondering whether renewable energy might shift the curve of falling energy profitability. Unfortunately, the energy return on energy invested for solar and wind energy systems, once energy storage to make up for intermittency is included, is probably no higher than that of shale gas or tight oil:

The energy return from commercial photovoltaic panels is estimated at 10:1 in most US locations (without factoring the energy cost of batteries), whereas during much of the 20th century, oil provided a 50:1 energy payback or better.

Further, according to one recent study, installation rates for renewable energy would need to be roughly 10-times current rates in order to accomplish the transition to solar and wind before fossil fuel depletion and climate change undermine the current global industrial system.

By the first decade of the new millennium, it was clear to quickly growing ideological groups on the further ends of the political spectrum that the US was headed off the rails.

An insulated and arrogant foreign policy establishment in Washington was initiating costly, disastrous, illegal and unwinnable wars in Afghanistan and Iraq (with later detours to Libya and Syria).

Government and private debt was accumulating to truly frightening levels, with entitlements like Social Security and Medicare on track to boost government deficits exponentially in decades ahead. Rates of annual GDP growth were slowly but surely dwindling.

Levels of economic inequality were approaching those of the fabled Gilded Age, when Marxists and anarchists riled the disgruntled masses. The nation’s manufacturing base continued to erode due to globalization.

Massive industrial and transport infrastructure, built mostly during the high-energy decades of the mid-to-late 20th century, was aging and rusting. Following the Vietnam War and the collapse of the Soviet Union, it became harder to feel pride in being an American.

Instead of bringing democracy to the world, we were more concerned with protecting our access to global oil supplies, distracting ourselves with comic book hero movies and exporting a culture of celebrity worship.

An empire, built on the extraction of nonrenewable energy resources and on domination of world trade, was losing its grip.

Understandably, blame for unmet expectations fell largely upon elites — whether in government, the media, academia, the financial sector, science or the arts. But resentment toward immigrants and other easily scapegoated minority groups was also increasing in some quarters.

Enter Donald J. Trump, real estate developer and reality-television star. According to later reporting by Michael Wolff and others, Trump — who lacked experience in electoral politics — had no realistic expectation of winning the presidential race of 2016; he mainly hoped to increase his visibility and the value of his brand.

This meant he was free to say anything, however politically incorrect or factually erroneous, to rouse his audiences.

Trump, with help from self-styled political theorist Steve Bannon, promised to destroy the “administrative state” — the human bureaucracy and mass of regulations that propped up the failing status quo.
  • He would “shake things up” by shredding global trade agreements and renegotiating bilateral trade treaties to the US’s advantage.
  • He would radically reduce taxes.
  • He would rebuild the nation’s fraying infrastructure.
  • He would reduce both undocumented and documented immigration.
  • He would prevent the US from getting involved in more needless, costly wars.
  • He would “drain the swamp” in Washington, DC. And by doing these things, he would “Make America Great Again.”
When, to nearly everyone’s surprise (reportedly including his own), Trump won the presidency, he found himself in a tough spot: His team did not include enough competent people to fill newly emptied positions in the various agencies of the executive branch of government.

The few available personnel consisted mostly of ideologues, hangers-on and fellow grifters — often evincing as little relevant job experience as Trump himself — as well as people avowedly dedicated to the destruction of the agencies to which they would be appointed.

Over time, the new president and his team generated more and more dysfunction, resulting in a string of firings and resignations. As government, it was a trainwreck; but as reality TV, it was as riveting.

Meanwhile, the status of the nation’s all-important energy economy was more hidden from view than ever due to the temporary spectacle of soaring US oil and gas production from fracking. Rates of domestic shale gas and tight oil production were soaring, leading the new president to speak of US “energy dominance.”

But companies specializing in producing these fuels were — and are — doing so at an overall financial loss, propped up by cheap debt and investor hype. Their inability to turn a profit is a clear symptom of eroding energy return on investment, but is rarely understood as such.

Inevitably, as interest rates rise and investors start demanding returns, the fracking bubble will pop even more quickly than it inflated.

What Trump has done politically is somewhat analogous to the country’s fracking frenzy. He spoke a politically forbidden truth — that the United States is headed toward the graveyard of empires; he then promised a return to “greatness.”

But just as fracking has failed to reverse the nation’s slide toward energy bankruptcy, Trump’s means of reviving its greatness (a budget-busting tax cut and divisive rhetoric) have only accelerated the US’s nosedive into economic, moral, social and political ruin.

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The oil industry's soft underbelly

SUBHEAD: The upcoming Seneca Collapse will be demand side, and not supply side driven.

By Ugo Bardi on 19 November 2017 for Cassandra's Legacy -
(http://cassandralegacy.blogspot.com/2017/11/the-soft-belly-of-oil-industry-upcoming.html)


Image above: "Seneca Cliff? What Seneca Cliff?" scene from 1991 movie "Thelma and Louise" From (http://thesenecatrap.blogspot.com/2017/05/seneca-cliff-what-seneca-cliff.html).

Dear colleagues, we are having an interesting discussion on how to stop climate change and I think I could add some thoughts of mine on the basis of my recent work that I published in the form of the book titled "The Seneca Effect".

The problem we have been discussing is how to limit emissions and we saw that it needs to be done fast and even drastically if we want to avoid the worse effects of climate change. Obviously, it is not easy. (image from Skeptical Science)

Most of what has been said today was based on a "top-down" approach, which I may also describe as supply-limiting. That is, we are speaking of a carbon tax, of emission limits, and the like; measures that governments should take in order to limit the production of fossil fuels. I don't have to tell you that it is an effort that has been ongoing for several years and yet emissions keep growing. It doesn't seem to work

So, can we take the opposite approach? That is, look at the demand side in a "bottom-up" approach?

To discuss this point, let me introduce the concept of the "Seneca Effect" or the "Seneca Cliff." Here is the shape of the Seneca curve.

You know that I use the term of "Seneca Effect" taking inspiration from something that the Roman philosopher Seneca said long ago; "growth is sluggish but ruin is rapid". And you see how the curve looks like the projections for emission reductions we have been seeing here.

So, the question is, what causes the collapse we see in the Seneca Curve in complex systems?

Well, we can use system dynamics to model the collapse and we know it is not a "top-down" effect, nobody from outside forces the system to collapse. It is a very general phenomenon caused by the interactions of the various elements that compose the system which cooperate to bring it down. And that's a trick that can be exploited: as I say in my book, "The Seneca Effect", collapse is not a bug, it is a feature.

Let me see to explain it using the oil industry as an example: see the figure drawn on the board.

Now, you see the segmented line I drew, it keeps going up. It is what the oil companies expect for the future. Their projections, by Exxon for instance, say this: given sufficient investments, we can keep growing the oil production for a number of years, maybe a decade or more.

That's what they have been doing; despite various dire warnings, the oil industry has been able to keep production growing. It is true that conventional oil ("crude") peaked at some moment between 2005 and 2010, but it didn't really decline. Then, the production of "all liquids" kept growing by exploiting other sources such as shale oil.

Of course, the problem is that if the industry continues to make an all-out effort to increase, or at least maintain, production, all we were saying about the need of reducing emissions goes out of the smokestack. Forget about keeping warming below 2 degrees. It would be a disaster.

But look at the Seneca curve in the graph. It would generate more or less the kind of rapidly declining production curve we need for our future survival

The oil industry doesn't predict anything like that, but it is vulnerable, very vulnerable. The industry has a "soft belly:" the collapse of the demand. That is, we don't need governments to enact draconian regulations: if the market for a product disappears, then the industry producing it will disappear. Can it happen? Yes, it can.

The key point of the oil industry's vulnerability is in the need of large investments to keep the whole thing moving. Facing increasing production costs, they have been able to survive by growing and exploiting economies of scale. This has been possible because investors thought they were investing in a growing industry.

But things have been changing and the market of the oil industry is at risk. Consider that typically a good 50% of the oil industry production is gasoline. To this, you may add about 20% of diesel fuel and the result is that some 70% of the output of the industry is for internal combustion engines used for transportation.

So far, this has been a growing market, but the electric transportation revolution is coming, and not just that. There is a whole systemic change under the concept of "Transportation as a Service" (TAAS). The combination of the diffusion of electric vehicles and the optimization of the system may rapidly reduce the demand for gasoline and diesel fuel.

We don't need a large reduction in the demand for transportation fuels to generate a spiral of decline for the oil industry.

Less demand means less production, less production means the loss of economies of scale, and the loss of the economies of scale means higher costs that translate into higher prices which also depress the demand. And so it goes until it reaches the bottom.

As Lucius Annaeus Seneca said, long ago, "ruin is rapid". And the ruin of the oil industry is not a bad thing for the earth's ecosystem and for us all.

See also:
The Seneca Effect book published
(http://thesenecatrap.blogspot.com/2017/08/the-seneca-effect-published.html/)

Ea O Ka Aina: Can airlines be saved? 11/1/17
Ea O Ka Aina: American way of life is negotiable 5/31/17
Ea O Ka Aina: Ecovillage Rescuing Los Angeles 3/27/17

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