Showing posts with label peak oil. Show all posts
Showing posts with label peak oil. Show all posts

Monday, September 13, 2010

Which is worse BP oil or BP dispersants?



The chemicals BP has relied on to break up the steady flow of leaking oil from deep below the Gulf of Mexico could create a new set of environmental problems.

Even if the materials, called dispersants, are effective, BP has already bought up more than a third of the world’s supply. Dispersing the oil is considered one of the best ways to protect birds and keep the slick from making landfall. But the dispersants contain harmful toxins of their own and can concentrate leftover oil toxins in the water, where they can kill fish and migrate great distances.

The exact makeup of the dispersants is kept secret under competitive trade laws, but a worker safety sheet for one product, called Corexit, says it includes 2-butoxyethanol, a compound associated with headaches, vomiting and reproductive problems at high doses.

“There is a chemical toxicity to the dispersant compound that in many ways is worse than oil,” said Richard Charter, a foremost expert on marine biology and oil spills who is a senior policy advisor for Marine Programs for Defenders of Wildlife and is chairman of the Gulf of the Farallones National Marine Sanctuary Advisory Council. “It’s a trade-off – you’re damned if you do, damned if you don’t -- of trying to minimize the damage coming to shore, but in so doing you may be more seriously damaging the ecosystem offshore.”

BP did not respond to requests for comment for this article.

Dispersants are mixtures of solvents, surfactants and other additives that break up the surface tension of an oil slick and make oil more soluble in water, according to a paper published by the National Academy of Sciences. They are spread over or in the water in very low concentration – a single gallon may cover several acres.

Once they are dispersed, the tiny droplets of oil are more likely to sink or remain suspended in deep water rather than floating to the surface and collecting in a continuous slick. Dispersed oil can spread quickly in three directions instead of two and is more easily dissipated by waves and turbulence that break it up further and help many of its most toxic hydrocarbons evaporate.

But the dispersed oil can also collect on the seabed, where it becomes food for microscopic organisms at the bottom of the food chain and eventually winds up in shellfish and other organisms. The evaporation process can also concentrate the toxic compounds left behind, particularly oil-derived compounds called polycyclic aromatic hydrocarbons, or PAHs.

Studies if oil dispersal have found that the chemicals used can accumulate in shellfish and other organisms.According to a 2005 National Academy of Sciences report, the dispersants and the oil they leave behind can kill fish eggs. A study of oil dispersal in Coos Bay, Ore. found that PAH accumulated in mussels, the Academy’s paper noted. Another study examining fish health after the Exxon Valdez spill in Alaska in 1989 found that PAHs affected the developing hearts of Pacific herring and pink salmon embryos. The research suggests the dispersal of the oil that’s leaking in the Gulf could affect the seafood industry there.

“One of the most difficult decisions that oil spill responders and natural resource managers face during a spill is evaluating the trade-offs associated with dispersant use,” said the Academy report, titled Oil Spill Dispersants, Efficacy and Effects. “There is insufficient understanding of the fate of dispersed oil in aquatic ecosystems.”

A version of Corexit was widely used after the 1989 Exxon Valdez spill and, according to a literature review performed by the group the Alaska Community Action on Toxics, was later linked with health impacts in people including respiratory, nervous system, liver, kidney and blood disorders. But the Academy report makes clear that the dispersants used today are less toxic than those used a decade ago.

“There is a certain amount of toxicity,” said Robin Rorick, director of marine and security operations at the American Petroleum Institute. “We view dispersant use as a tool in a toolbox. It’s a function of conducting a net environmental benefit analysis and determining the best bang for your buck.”

Charter, the marine expert, cautioned the dispersants should be carefully considered for the right reasons.

“Right now there is a headlong rush to get this oil out of sight out of mind,” Charter said. “You can throw every resource we have at this spill. You can call out the Marine Corps and the National Guard. This is so big that it is unlikely that any amount of response is going to make much of a dent in the impacts. It’s going to be mostly watching it happen.”

Ryan Knutson contributed to this report. The above was published originally by ProPublica. (Hat tip to Jennifer).

Thursday, July 15, 2010

Peak Oil



Energy is best defined as the “capacity to do work”; there cannot be life without it. That is simply what is meant by saying that life on planet earth will come to an end when the sun becomes so hot in a billion years or so that water on earth would evaporate and life on its surface will become impossible. Meanwhile the energy flows from the sun to the plants that sustain herbivores that in turn are eaten by carnivores and then at the top of this food pyramid the omnivores. This was the case for 100’s of millions of years. A most significant change started with the industrial revolution and it is still going on unabated, the use of machines powered by various forms of terrestrial energy. All machines are in essence dependent on coal, oil or electricity which is produced in most cases from fossil fuels.

The global economy consumes about 500 Quadrillion BTU’s each year and this level of consumption is projected to rise at about 1.4% every year for the next 20 years. Over 86% of all this energy comes from the three major fossil fuels of oil, coal and natural gas. All other forms combined (nuclear, hydro, biomass and all other renewable) account for less than 14% of energy consumption.

Oil supplies the largest proportion of energy in our industrial society and its role is looked upon as being the most crucial for civilization, so much so that a few are already predicting collapse of society as we know it when oil becomes scarce. Peak oil is the term used to describe what some of the best known geologists argue is inevitable. Peak is the point in time when the world would have used half of all the available oil reserves in the world. Whether we have passed the peak as of 2008 or whether we are to pass it in the next couple of years or even decade is not materially important. What is significant is that many, but not all, geologists, energy traders, oil company executives, academicians, environmentalists and common citizens have adopted the new paradigm of peak oil.

Even if we are to leave the issue of climate change aside for the purposes of this post yet it is clear that peak oil is a game changer. The world oil production is about 86-87 million barrels a day and the prestigious and mainstream IEA, International Energy Agency, projects the need for over 110 million barrels each day by 2030. If the world is already at peak then where is the additional oil going to come from? A quick survey of plans by the major oil companies of the world shows clearly that we are digging deeper and in more difficult terrain than we ever did simply because the low hanging fruits have already been picked, so to speak.

There are at least two important implications associated with peak oil. (1) The less the availability of conventional oil then the greater is the incentive to exploit the non conventional oil reserves like Venezuela’s heavy oil, Canada’s tar sands and eventually Colorado’s shale. Each of the above produces oil but at a much greater cost. (2) As conventional oil becomes less abundant; we have already lifted half of all the oil reserves; then again the energy return on investment ; EROI; will decrease and continue decreasing to the point whereby it would require more energy to lift a barrel than the energy embodied in that barrel.

The implications of the above two facts that result from peak oil are very clear. As the world demand for energy increases and the supplies cannot keep pace the resulting imbalances will play havoc with the price of oil. We have already witnessed what a slight shortage could do in 2008 when the price per barrel rose parabolic ally to over $140. Under the scenario of peak oil towards the end of this decade that previous price will be appreciably overshot. There are some who project a price of over $300 per barrel given the tight market conditions predicted by peak oilers.

Arab countries can very easily be producing about 30 million barrels of oil each day by 2020 if Iraq is to achieve its planned goal of 8 million barrels per day. Furthermore it would be easy to project exports of about 22 million barrels each day. If the above scenario is to play out and if the resulting economic crisis does not lead to the use of military force then the Arab oil exporters can expect an annual cash flow of over $1 Trillion. Could peak oil, a major challenge for most of the world be exceptionally beneficial to the Arab countries? And if so are they ready to absorb such flows of funds in order not to clog the international flow of funds.

Sunday, October 25, 2009

Biophysical Economics



The following is the coverage that appeared in the NYT of the conference on Biophysical Economics that I attended last week end at ESF.



The New York Times
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October 23, 2009
New School of Thought Brings Energy to 'the Dismal Science'
By NATHANIAL GRONEWOLD of Greenwire

SYRACUSE, N.Y. -- The financial crisis and subsequent global recession have led to much soul-searching among economists, the vast majority of whom never saw it coming. But were their assumptions and models wrong only because of minor errors or because today's dominant economic thinking violates the laws of physics?

A small but growing group of academics believe the latter is true, and they are out to prove it. These thinkers say that the neoclassical mantra of constant economic growth is ignoring the world's diminishing supply of energy at humanity's peril, failing to take account of the principle of net energy return on investment. They hope that a set of theories they call "biophysical economics" will improve upon neoclassical theory, or even replace it altogether.

But even this nascent field finds itself divided, as evidenced by the vigorous and candid back-and-forth debate last week over where to go next. One camp says its models prove the world is headed toward a dramatic economic collapse as energy scarcity takes hold, while another camp believes there is still time to turn the ship around. Still, all biophysical economists see only very bleak prospects for the future of modern civilization, putting a whole new spin on the phrase "the dismal science."

Last week, about 50 scholars in economics, ecology, engineering and other fields met at the State University of New York's College of Environmental Science and Forestry for their second annual conference on biophysical economics. The new field shares features with ecological economics, a much more established discipline with conferences boasting hundreds of attendees, but the relatively smaller number of practitioners of biophysical economics believe theirs is a much more fundamental and truer form of economic reasoning.

"Real economics is the study of how people transform nature to meet their needs," said Charles Hall, professor of systems ecology at SUNY-ESF and organizer of both gatherings in Syracuse. "Neoclassical economics is inconsistent with the laws of thermodynamics."

Like Hall, many biophysical economic thinkers are trained in ecology and evolutionary biology, fields that do well at breaking down the natural world into a few fundamental laws and rules, just like physicists do. Though not all proponents of the new energy-centric academic study have been formally trained in economics, scholars coming in from other fields, especially ecology, say their skills allow them to see the global economy in a way that mainstream economists ignore.

Central to their argument is an understanding that the survival of all living creatures is limited by the concept of energy return on investment (EROI): that any living thing or living societies can survive only so long as they are capable of getting more net energy from any activity than they expend during the performance of that activity.

For instance, if a squirrel burns energy eating nuts, those nuts had better give the squirrel more energy back then it expended, or the squirrel will inevitably die. It is a rule that lies at the core of studying animal and plant behavior, and human society should be looked at no differently, as even technologically complex societies are still governed by EROI.

"The basic issue is very fundamental: Why should economics be a social science, because it's about stuff?" Hall said.

'Peak oil' embraced

The modern biophysical economics movement may be relatively young, but the ideas at its roots are not.

In 1926, Frederick Soddy, a chemist who was awarded the Nobel Prize just a few weeks before, published "Wealth, Virtual Wealth and Debt," one of the first books to argue that energy should lie at the heart of economics and not supply-demand curves.

Soddy also criticized traditional monetary policy theories for seemingly ignoring the fact that "real wealth" is derived from using energy to transform physical objects, and that these physical objects are inescapably subject to the laws of entropy, or inevitable decline and disintegration.

The sharpest difference between biophysical economics and the more widely held "Chicago School" approach is that biophysical economists readily accept the peak oil hypothesis: that society is fast approaching the point where global oil production will peak and then steadily decline.

The United States is held as the prime example. Though the United States is still the world's third-largest producer of oil, its oil production stopped growing more than a decade ago and has flatlined or steadily fallen ever since. Other once-robust oil-producing countries have experienced similar production curves.

But the more important indicator, biophysical economists say, is the fact that the U.S. oil industry's energy return on investment has been steadily sliding since the beginning of the century.

Through analyzing historical production data, experts say the petroleum sector's EROI in this country was about 100-to-1 in 1930, meaning one had to burn approximately 1 barrel of oil's worth of energy to get 100 barrels out of the ground. By the 1990s, it is thought, that number slid to less than 36-to-1, and further down to 19-to-1 by 2006.

"If you go from using a 20-to-1 energy return fuel down to a 3-to-1 fuel, economic collapse is guaranteed," as nothing is left for other economic activity, said Nate Hagens, editor of the popular peak oil blog "The Oil Drum."

"The main problem with neoclassical economics is that it treats energy as the same as any other commodity input into the production function," Hagens said. "They parse it into dollar terms and treat it the same as they would mittens or earmuffs or eggs ... but without energy, you can't have any of that other stuff."

Nor is conservation or energy efficiency the answer. In his presentation, Henshaw noted that the International Energy Agency's own data show that energy use is doubling every 37 years or so, while energy productivity takes about 56 years to double.

In fact, the small world of biophysical economists seems to agree that energy and resource conservation is pointless in the economic system as it is now construed, contrary to what one might expect. Such efforts are noteworthy as it buys the world a bit more time, but the destination is inevitably the same -- a gallon of gasoline not burned by an American will be burned by someone else anyway.

Other peaks?

Though not as closely studied, biophysical economists theorize that the peak oil phenomenon holds true for all non-renewable resources, especially energy commodities. Proponents of the field say they are moving closer to understanding "peak gas" and "peak coal." Consumption of many of the world's most valuable minerals could likewise see those resources nearing exhaustion, as well, they say.

And no amount of technology can fix the problem. Hagens points out that oil extraction has evolved by leaps and bounds since the early 1900s, and yet companies must expend much more energy to get less and less oil than they did back then.

"It isn't that there's no technology," Hall said. "The question is, technology is in a race with depletion, and that's a whole different concept. And we think that we can show empirically that depletion is winning, because the energy return on investment keeps dropping for gas and oil."

The most pessimistic of the biophysical economics camp sees the oil-fueled world economy grinding to a halt soon, possibly within 10 years. They are all working to get the message out, but not all of them believe their peers in other professions will listen.

"Of course I'm trying to send a message," said Joseph Tainter, chairman of Utah State University's Department of Environment and Society. "I just don't expect there's anyone out there to receive it."