Tag Archives: Natural Gas

Cutting Edge Info on Peak Oil: Here, Now & in November

Richard Ha writes:

Five Association for the Study of Peak Oil (ASPO) annual conferences later, it’s very clear to me that the information I learn at the conferences is cutting edge. It’s consistently two or more years before what the experts there are talking about shows up in the mainstream news.

From the first ASPO conference I attended, I noticed there were stock traders in the audience. I asked them why there were there, and one told me it was so he could make better investment decisions.

The oil decline situation is much more serious than people realize, and I highly recommend that anyone who wants to be on the cutting edge of knowledge attend the next ASPO conference. It is usually held around the end of November.

I also recommend you visit the ASPO-TV site and take in some of the videos there.

Robert Rapier gave this interesting talk at ASPO last year, which may be of interest to folks who have more than just a passing interest in energy issues.

Robert Rapier – Navigating a New Energy Reality from Peak Oil TV on Vimeo.

Robert, who presented at the conference the last two years, lives
in Waimea now, where he moved to take the job of Chief Technology Officer for Merica International.

He has written a book, Power Plays: Energy Options in the Age of Peak Oil:

In Power Plays: Energy Options in the Age of Peak Oil, energy expert Robert Rapier helps readers sort through energy hype, doom and gloom, and misinformation to understand what really matters in energy, and how it impacts individuals, investors, businesspeople, and policy makers worldwide. The book
covers the overall global energy situation, the particular risks for the U.S. with its present energy mix, the energy outlook for the developed world and emerging economies like China and India, what peak oil really means, and the present and likely future of natural gas, coal, oil, nuclear power, and alternative energy sources. 



The book also addresses common misconceptions. For instance, most readers are likely unaware that the U.S. is the third-largest oil producer in the world. Or that Canada leads the U.S. in per capita oil consumption. It will also highlight interesting facts—for example, China has solved part of its energy challenge by
mandating solar hot water systems in all new construction. Most
importantly, the book will provide specific energy insights unavailable elsewhere and help individuals and business planners chart future actions and decisions. 

In a recent blog entry, Robert talks about why rising natural gas prices will affect the biofuel industry (natural gas is a cost component of the biofuel industry).

He once told me that if a biofuel project has a negative energy balance, it would never be cheaper than oil.

He is highly technically qualified and has a knack of making difficult issues and conclusions easy to understand. I highly recommend both his book and blog.

Industrial Production Returning to U.S.; Will Stabilize Food Prices

Richard Ha writes:

The natural gas boom is starting to bring industrial production back to the U.S. This is going to stabilize food prices.

Products made from cheap natural gas, such as nitrogen fertilizer, plastics and other agricultural inputs, will stabilize. Then, as we start to close down oil-fired plants on the Big Island and replace the present liquid fuel with lower cost alternatives, local farmers' refrigeration chain costs and local food manufacturing costs will start to become more competitive with food imported from the mainland.

Consumers will have more discretionary income to support local farmers. As we all know, food security involves farmers farming, and if farmers make money, the farmers will farm.

From The Washington Post:

The new boom: Shale gas fueling an American industrial revival

Orascom chose Wever, Iowa, over Illinois because part of its investment will be funded by a tax-exempt bond. The Iowa Economic Development Authority approved an incentive package that is expected to provide tax relief “in the order of $100 million,” the company said.

Royal Dutch Shell has unveiled plans for a $2 billion petrochemical plant northwest of Pittsburgh, where it can use natural gas supplies from the state’s enormous Marcellus shale formation. It chose Pennsylvania despite being wooed by Ohio and West Virginia.

The broader effect

The economic growth from natural gas abundance extends to companies providing supplies to the drilling boom.

On Oct. 1, Honeywell announced that it paid $525 million for a 70 percent stake in Thomas Russell, a privately held provider of technology and equipment for natural gas processing and treatment. With the acquisition, Honeywell will offer technologies and products that allow producers of shale and conventional natural gas to remove contaminants from natural gas and recover high-value natural gas liquids used for petrochemicals and fuel….

Read the rest