Tag Archive | "oil"

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Water, Oil Key Climate Issues in Arab World

Posted on 17 December 2009 by editor

An activist from Arabs Against Oil. Credit:  Claudia Ciobanu/IPS

An activist from Arabs Against Oil. Credit: Claudia Ciobanu/IPS


Terna Gyuse

COPENHAGEN (IPS/TerraViva) – In outlining a position on climate change, the League of Arab States must somehow account for looming problems like water stress – a problem found from Morocco in the west to the Gulf states in the east – and the importance of oil to the economies of many of the league’s members.

Dr Emad Adly, in Copenhagen representing the Arab Network for Environment and Development, says there was a time when countries like Saudi Arabia wouldn’t listen to even a mention of worldwide emissions reductions, for fear it would affect revenues from the sale of fossil fuels. Continue Reading

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Systematic Suppression of Systemic Solutions?

Posted on 11 December 2009 by editor

Credit: Claudius

Credit: Claudius

By Ashok Khosla *

COPENHAGUE (IPS/TerraViva) Systemic failures, such as sudden changes in climate, accelerated loss of biodiversity and rapid growth of poverty and population, can only be solved by systemic solutions that address the deeper, underlying causes of these failures.

Moreover, since many of these problems are inter-related, they generally have to be solved together – where possible – to get maximum all-round benefits at least cost; when necessary, to minimize the likelihood of ameliorating one while worsening the others. Continue Reading

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Chevron and Cultural Genocide in Ecuador

Posted on 10 December 2009 by editor

Credit: Claudius

Credit: Claudius

By Kerry Kennedy, from Lago Agrio, Ecuador *

LAGO AGRIO, Ecuador (IPS/TerraViva) Traces of paradise are still visible. From the air, the rainforest region in northern Ecuador – known as the Oriente – appears as silvery mist and swaths of verdant green.

But beneath the cloud cover and canopy, the jungle is a tangle of oil slicks, festering sludge, and rusted pipeline. Smokestacks sprout from the ground, spewing throat-burning fumes into the air. Wastewater from unlined pits seeps into the groundwater and flows into the rivers and streams. Continue Reading

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OIL: A Market Psychology of Fear?

Posted on 04 December 2009 by editor

Oil_well_public_domainDec7_By Chris Arsenault

VANCOUVER  (IPS/TerraViva) With or without a binding deal at the climate talks in Copenhagen, it seems the world may have to cut its oil consumption, as emerging geological and economic trends limit the availability and affordability of petroleum.
Back in the 1970s, Saudi Arabia’s flamboyant oil minister Sheik Ahmed Zaki Yamani articulated what has become conventional wisdom for policymakers around the planet: ”The Stone Age didn’t end for lack of stone, and the oil age will end long before the world runs out of oil.”

Today, an increasing chorus of voices is challenging that prediction. While the world isn’t running out of oil in any absolute sense, a daunting picture of the availability and thus affordability of supply compared with expected demand increases is beginning to emerge.

“In 2015, the world’s consumption of oil will likely be closing in on 100 million barrels per day, roughly 22 percent higher than the current level – which is a relatively high annual growth for the oil industry,” states a briefing marked “confidential” from Canada’s Royal Canadian Mounted Police (RCMP), obtained by TerraViva through a Freedom of Information Request.

The censored briefings, created in collaboration with other Canadian government agencies, paint a troubling picture of future energy security that has recently been corroborated by other sources.

In 2005, the International Energy Agency (IEA), the Paris-based multinational information centre created after the 1973 energy crisis, predicted that world oil production could rise to 120 million barrels per day by 2030, up from 85 million bpd in 2008.

The IEA “was forced to reduce” its predictions on possible world supply “to 116 million and then 105 million last year,” according to a senior official in the organisation, who spoke with the Guardian newspaper in early November on the condition of anonymity.

The U.S. Department of Energy, through its International Energy Outlook (IEO), has also been quietly scaling down its numbers on possible supply. In 2007, the agency predicted that the world would be able to pump 107.2 million barrels per day in 2030. In summer 2009, it drastically reduced its supply predictions to 93.1 million barrels per day.

In its latest forecast, released Nov. 10, the IEA predicted that world oil supply would hit 105 million barrels per day by 2030. Even with those figures, which many analysts, including some inside the IEA, consider overly optimistic, there is likely to be a shortfall of some 11 million barrels per day by 2030.

“Every year we lose four million barrels a day [of production due to depletion],” said Jeff Rubin, the former chief economist with CIBC World Markets.

“Over the next five years, we are going to have to find 20 million barrels a day of new production, just so that we can [continue to] consume what we consume today,” Rubin told TerraViva in June.

Rubin is a believer in the peak oil theory – the idea that oil production will reach a maximum point and then fall fairly sharply as demand outpaces possible supply.

Gasoline and transportation oil can be manufactured from coal and other petroleum sources, meaning the world will not run out in any absolute sense, but the costs – both economic and environmental – will be far higher than conventional crude.

“Groups and individuals speaking out about forthcoming world oil supply challenges are frequently stereotyped as a fringe element with little knowledge about the oil industry,” said the Sweden-based Association for the Study of Peak Oil and Gas in a Nov. 24 news release. “But their warnings are increasingly supported by some surprising allies: senior petroleum industry officials, consultants and analysts.”

Christophe de Margerie, CEO of Total SA, Europe’s third largest oil company, believes the world will never be able to produce more than 89 million barrels per day.

ConocoPhillips’ chief executive Jim Mulva told a conference in London last month that he doubted producers would be able to meet long-term oil demand. Both oil executives challenged IEA predictions.

The senior IEA official who blew the whistle on the organisation’s tendency to overstate supply says the group is manipulating data in order to placate financial markets.

“Many inside the organisation (IEA) believe that maintaining oil supplies at even 90 million to 95 million barrels a day would be impossible, but there are fears that panic could spread on the financial markets if the figures were brought down further,” a senior IEA official told the Guardian.

According to the confidential RCMP documents, “[censored]… a market psychology of fear will continue to place a ‘geopolitical premium’ on crude oil, keeping prices for oil products higher than market fundamentals alone would dictate.”

It is this fear that the IEA is trying to placate. However, many believe a binding deal at Copenhagen seems like a more reasonable approach to reduce oil dependency than the current policy of fudging the numbers.

(END/2009)

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