Peak Oil

Geologist Arthur Berman Says ‘Shale Gas is a Commercial Failure in the U.S.’

Richard Ha writes:

Lately we have been hearing that natural gas will save us. But there are other opinions, and the truth probably lies somewhere in between.

• Chesapeake Energy, the largest shale gas producer, is losing billions of dollars. 

• ExxonMobil's CEO Rex Tillerson just announced that all in the gas business were "losing their shirts."

Exxon CEO: 'Losing Our Shirts' on Natural Gas Prices

–Making "no money" on U.S. natural gas

–Prices have fallen below cost of production

–Current prices aren't sustainable

By Jerry A. DiColo and Tom Fowler

NEW YORK–Even energy titan Exxon Mobil Corp. (XOM) is showing signs of strain from low natural gas prices.

On Wednesday Exxon Chief Executive Rex Tillerson broke from the previous company line that it wasn't being hurt by natural gas prices, admitting that the Irving, Texas-based firm is among those hurting from the price slump.

"We are all losing our shirts today." Mr. Tillerson said in a talk before the Council on Foreign Relations in New York City. "We're making no money. It's all in the red."

His comments mark a departure from remarks made earlier this year on how lower natural gas prices hadn't yet hurt the company because of its operational efficiency and low production costs…. Read the rest

Arthur Berman is a geologist who has done extensive research in the area of shale gas production. In Denver, in 2009, I heard him on a panel discussing shale oil at the Association for the Study of Peak Oil (ASPO) conference. What he said made sense to me: It's only logical that natural gas from oil shale tends to decline rapidly, because gas flows more rapidly than oil.

In this YouTube video, Berman states,"To maintain current production, we need to replace one third of the country’s gas wells with new ones each year.”  

He calls shale gas a "commercial failure in the U.S."

 

The price of shale gas is too low because of oversupply. What is the break-even price? When we find that out, we will know a lot more about its sustainability.

Geothermal

County Bill 256 is Premature

2 Comments

Richard Ha writes:

I testified against County Bill 256, draft 2, which alters the geothermal royalty funded-Geothermal Relocation and Community Benefits program, takes away community benefits, and creates a one-mile “buffer zone” around the Puna Geothermal Venture plant.

It passed, though. Now it is up to the Mayor to sign it or not.

This bill is premature. I don’t believe we have come to grips with the facts about the true nature of hydrogen sulfide, and what its dangers are or are not. We need to take a step back and evaluate the issue more thoroughly.

Hawai‘i’s Department of Health (DOH) regulates H2S at “nuisance levels,” which are defined as “what you can smell.” The human nose can pick up the H2S scent at 5 parts per billion or so.

The Office of Occupational Health and Safety Administration (OSHA) regulates Hydrogen Sulfide to “safety levels,” which they define as 10,000 parts per billion. At this level, workers are allowed to work for 8 hours per day, 40 hours per week.

Here are some things to consider:

1) Around the world, several million people every year choose to go to health spas/onsens, where they are exposed to much higher levels of H2S than any member of the public has been exposed to for 99.99% of the time in Puna.

2) Ambient levels of H2S in downtown Rotorua, New Zealand, are routinely 100 times to 1000 times higher than the levels Hawai‘i’s DOH regulates for.

3)  OSHA allows H2S exposure as high as 10,000 parts per billion for eight hour days, five days a week. That’s the equivalent of 2800 ppb continuously over 24 hours, indefinitely. Whereas the long-term, ambient H2S average in Puna, near the geothermal facility, is closer to 2 ppb.

4)  No study done anywhere, ever, has shown that Puna’s exposure levels have ever produced the negative effects that are antecdotally claimed.

5) I’ve been to Iceland and to the Phillipines to see their geothermal operations, and have learned that Hawaii is much, much stricter about regulating Hydrogen Sulfide than those countries are.

Here is the testimony I submitted against County Bill 256, draft 2:

Aloha Chair Yagong:

I recommend that the council vote no to Bill 256, Draft 2 affecting Puna homeowners. Take the time to truly understand the issue. It needs to be scientifically based. The Leilani Estate Board is against this bill. 

The Dept. of Health regulates to a much higher standard than Iceland or the Phillipines. We do not allow open venting.

The Dept. of Health says that there are no health safety issues with PGV. It regulates to “nuisance” standards. This standard is an order of magnitude greater than “health safety” standards. 

H2S generally results from two main sources–organic material from bacterial action and chemically from interaction of magmatic material. Tens of thousands of oil and gas wells on the mainland deal with H2S everyday.

The bacteria that generates H2S also  live in the gut of humans. The human nose can pick up H2S to 5 parts per billion–the same level that the Dept of Health regulates to. 

There have been testimony that people have become dizzy and disoriented and that animals have been affected. But, at levels this low, it is difficult to identify exactly where the H2S originated. I believe that we need to take a step back and look at this very methodically.

Sincerely,

Richard Ha
Hamakua Springs

Contest

CONTEST! Write a Caption & Win a Prize

Richard Ha writes:

It’s another caption contest! (Here’s a link to the winners of our last caption contest.)

Pigs

I took this photo yesterday, when I had to stop for a family of four pigs crossing the road in Hilo. I think they were going to a picnic in the mac nut fields.

Write a caption for this photo and send it to “leslie@leslielang.com.” Leslie, who helps with this blog, will judge the contest in order to keep things impartial. So you can enter even if you are friends or family of mine, and I will only step in if there’s a tie and we need a tie-breaker.

The winner can come by the farm for some fresh Hamakua Springs veggies, if they live locally. If you win but live at a distance, you might have to just bask in the glory from afar.

Pleae submit your entries by midnight HST on Monday, June 25, 2012. We’ll announce the winner here soon after that.

And have fun! We look forward to hearing what you come up with

Government

Thanks to Governor & Legislators for Signing Local Farming Bills

Richard Ha writes:

If the farmers make money, the farmers will farm.

Mahalo to Governor Abercrombie, Senator Donovan Dela Cruz, Agriculture Chairpersons Senator Nishihara and Representative Tsuji, and to legislators who recognize that farmers have to make money in order to keep farming.

From Big Island Video News:

Hawaii Governor signs local farming bills, includes puuhonua

June 17, 2012 | Government & Politics, State News

FRIDAY, July 15, 2012 – Governor Neil Abercrombie today signed a number of measures into law including two bills that are aimed to benefit local farmers who want to sell their products and/or establish agricultural-based commercial operations.

Senate Bill 2375 authorizes agricultural-based commercial operations in agricultural districts which will increase our farmers’ability to sell their products and promote food sustainability for the islands. Senate Bill 2646 is intended to promote and support diversified agriculture by exempting certain nonresidential agricultural buildings that are on commercial farms from county building permit requirements.

“To truly support our local farmers we must empower them,”said Governor Abercrombie. “These measures not only provide for that to take place but it also promotes diversified agriculture. I want to thank the Legislature for recognizing the importance of helping our farmers.”

Senator Donovan Dela Cruz who introduced SB 2375 stated, “Farmers are being forced to diversify their products in order to make ends meet while continuing to provide local food for the community. This bill allows for additional opportunities for them to create revenue.”

Read the rest of the article, including several other ag-related measures Governor Abercrombie signed into law.

Travel

A Friend’s Blog: Ethiopia & Simple Pleasures

I know Shara Enay from when she was a writer for Hawaii Business magazine, and I knew from the start that she was a special person.

She decided to go to Ethiopia to help the children there and has an amazing experience there, which she’s written about on her blog. This post was written as she prepared to leave Ethiopia:

When I decided to return to Ethiopia to work with orphans, I knew I was setting myself up for a broken heart. Six months ago, I stepped off of an Ethiopian Airlines flight terrified, unsure of myself and not knowing if I would last even six weeks, but hopeful that I could make a difference in other people’s lives. This experience wasn’t easy: Some days were awesome and some were down right awful, but it was life changing. I am leaving Ethiopia with a very heavy heart – again – because I will miss the wonderful people I’ve met throughout this journey, but, this time, I am departing with a sense of pride and achievement. I am not just content with the way things unfolded; I’m happy.

…I’ve met some of the most honest, compassionate, generous, genuine people here; people I will be honored to call lifelong friends. Since most Ethiopians don’t possess a lot of material wealth, they find happiness in simple pleasures, such as eating dinner with family and friends, watching a football match with coworkers, or helping their neighbors with home projects. They still pick up the phone and call people just to say “hello” and it’s common for them to drop by a friend’s house unannounced for coffee if they happen to be in the neighborhood. In a place where poverty is so widespread and there isn’t a lot to see or do, people and relationships become your first priority – exactly the way it should be.

Read more of her blog posts here.

I am impressed with her. “If you neva go, you could not eva say you went. You the best,” I commented on her Facebook page.

Have a look at her blog. This experience has helped her to rediscover some of the most important things about life, and it’s a good reminder for us all.

Aquaponics, Bananas, Hamakua Coast, Hydroponics, Lettuce, Peak Oil, Sustainability, Taro/Poi, Water, Where We Live

Conversations With My Mom

4 Comments

Richard Ha writes:

I took Mom to Hamakua Springs to get a few tilapia for her dinner.

Mom1

While we were there, we looked at some of the things we have going on.

Corn field

Corn
 
Corn field
Hamakua Springs bananas
 
Corn field
Hydroponic lettuce, with special procedures to control slugs
 

Corn field

Sweet potatoes

Corn field

Zucchini

One thing that strikes me is how much water we have running through our 600-acre farm. We must maximize its usage.

Reservoir

Water Supply will build a new reservoir adjacent to this one and bring electricity right through the farm to the new well, which is right behind this reservoir

I really want to raise tilapia when the price of oil goes so high that bringing it in from Asia is prohibitive.

Tilapia for mom

Tilapia for Mom. These are the small ones, to fry crispy.

And, while doing that, we want to demonstrate how Hawaiians were self-sufficient in ancient days.

Then while we are at it, we want to reforest the streams with ‘ohi‘a, koa, bamboo, kukui, hapu‘u, etc.

  1. Also, how about aquaponics with tilapia and taro?
  2. How about a certified kitchen to make lomi salmon, poi and other things where we and other farmers can add value?
  3. What about classes for at-risk students?
  4. Maybe a permanent imu.
  5. Events set around food?
  6. How about showing how food was produced then and now – ancient and modern?

Mom and I always have these kinds of conversations. I like it.

Geothermal, Philippines

Report on Delegation to Ormoc City, Philippines

In late March, I went to the Philippines with a County of Hawai‘i delegation.

The visit, which cost less than $30,000, was worth every penny. I give Mayor Kenoi credit for having the foresight and determination to move Hawai‘i Island toward energy self-sufficiency.

Here’s the Report on the Hawai‘i County Economic Development Mission to Ormoc City, Republic of the Philippines:

March 22, 2012 – March 29, 2012
A delegation representing the County of Hawai‘i, leaders in Hawai‘i Island’s agriculture and energy industries, and the University of Hawai‘i at Hilo, traveled to Leyte Island in the Republic of the Philippines on an eight day mission to achieve three primary objectives:
  1. Sister City reciprocal visit and official signing ceremony with Ormoc City officials. 
  2. Economic development fact finding tour of Leyte’s extensive geothermal energy generation facilities.
  3. Economic development fact finding tour of Visayas State University agriculture programs and area farms to observe how the industry advances regional food sustainability.

 Read the report here.

Geothermal

What Would It Be Like if We Switched to Geothermal?

Richard Ha writes:

What will happen to Big Island agriculture if we start replacing oil-fired electricity generators with geothermal electricity?

Food security involves farmers farming. If the farmers make money, the farmers will farm.

If we start using geothermal electricity, the "cold chain," the temperature control aspect of food production, will cost less. This starts with cooling at the farm and includes cooling at the wholesaler/distributor, cooling at the retail stores and cooling at the home.

Local produce will start to be closer in price to imported produce. Consumers will have more money in their pockets, so they will be able to support local agriculture.

Electricity on the Big Island has always been 25 percent more expensive than on O‘ahu. What if our electricity cost were lower, due to geothermal?

Value-added products manufactured on the Big Island would become competitive in the O‘ahu market. Having more income streams is beneficial to farmers. 

Cheap, stable geothermal electricity will help local farmers make money. And, as we know, if the farmer makes money, the farmer will farm.