oil

Saudi Arabia and oil

I recently found a pretty good NYT Magazine article on oil production. It's definitely worth a read, if for no other reason than as a reminder of how much things have changed since the article was written in 2005. For example, on page 1 comes the quaint statement:

If consumption begins to exceed production by even a small amount, the price of a barrel of oil could soar to triple-digit levels.

Yes ... yes it could. Here's another one:

USA Today: oil prices drive up asphalt costs, derail road maintenance

For decades, public cash has gushed into building infrastructure designed to get us around in those little (or not-so-little) privatized pods. Indeed, the mobilization to create and maintain our road and highway network probably counts as our greatest public achievement of the last half-century. Meanwhile, while the highway rode high, our rail-transportation network crashed. Attacked […]

Opening ANWR cuts gas prices $0.02 in 2025

In the climate and energy debate, conservatives continue to argue that the only solution to high gasoline prices is drill, drill, drill, especially in the Arctic National Wildlife Refuge. This argument is false, false, false.

The Administration's own Energy Information Administration found differently in a 2004 Congressionally-requested "Analysis of Oil and Gas Production in ANWR" (see "Note to Bush, media: Opening ANWR cuts gas prices one cent in 2025"). I pointed out then that the 2004 analysis was based on low oil prices, and that higher oil prices would raise the savings.

A May 2008 re-analysis [PDF] by EIA, "Analysis of Crude Oil Production in the Arctic National Wildlife Refuge," in fact found this:

Rail and the coming changes in transport

National Train Day was marked this year on May 10, so it's not too incredibly late to mention two new books of note: John Stilgoe's Train Time: Railroads and the Imminent Reshaping of the United States Landscape that came out in the fall says that rail is "an economic and cultural tsunami about to transform the United States." Maybe that's a little grand, but rail is definitely on the ascendancy, since it can move people and freight at a fraction of the energy usage vs. petroleum.

Also, Radio Ecoshock's March 28 edition of its useful weekly podcast had a recording (skip to minute 11 for the presentation) by authors Richard Gilbert and Anthony Perl at the launch event for their new book Transport Revolutions: Moving People and Freight without Oil. They are forecasting a grid-tied and electrified (increasingly from renewables) rail system among four revolutions coming in transport:

Airlines, cargo ships increasingly desperate due to rising fuel costs

Globalization was built on cheap oil. As that era draws to a close, so will the current phase of global integration, whether Thomas Friedman, Wal-Mart, and all those involved in intercontinental trade like it or not.

The current transportation infrastructure is based on cars, trucks, airplanes, and cargo ships, which together consume about 70 percent of the gasoline used in the United States. While the greatest focus has been on cars, trucking and airline companies are facing collapse.

The International Air Transport Association just published a new report in which they call the situation of many airlines "desperate." According to The N.Y. Times:

If price of oil, which is now just below $130 a barrel, averages $107 over 2008, the aviation industry would lose $2.3 billion for the year, the chief executive of the group, Giovanni Bisignani, said. Should it hold at $135 a barrel for the rest of the year, the industry will lose $6.1 billion.

U.S. driving down 11 billion miles in March, the sharpest drop in history

Price does matter. So does public perception of likely future prices. As it becomes increasingly clear that high gasoline prices are not a fluke, Americans are adjusting their driving habits.

March 2008 saw "the sharpest yearly drop for any month in FHWA history" of total vehicle miles traveled (aka VMT) according to the Federal Highway Administration's monthly report on "Traffic Volume Trends" [PDF].

In March 2008, Americans drove 246 billion milles, compared to 257 billion in March 2007. Indeed, the March 2008 figure is lower than the March 2004 figure. To see just how remarkable that is, look at the annual vehicle-distance traveled data (in billions of miles) since 1983 (this is a moving 12-month total):

Stratfor breaks it down

Interesting stuff over on Stratfor about the “Geopolitics of $130 oil.” The short story is: The U.S. is hit, but not too hard, given its transition from manufacturing to services. China gets the worst of it by far — it lives by manufacturing but it’s forced to hold prices down to avoid unrest, so it’s […]

Gingrich mounts campaign to support domestic oil drilling

"Green conservative" and We campaign spokesman Newt Gingrich is mounting a new campaign: "Drill Here, Drill Now, Pay Less." His promise is that (blocking Lieberman-Warner and) opening up drilling off the coasts, in the Gulf of Mexico, in northern Alaska, and in the Rockies (for oil shale) would lower gas prices. Now, for one thing […]

Time to kick the oil habit

This is the latest in a series on why it is important to push hard for climate legislation this year.

Over the past few months, I've made the case for passing climate legislation in 2008: We don't want to squander the current momentum, we simply can't afford to wait, and while we do, we only prolong a dangerous catch-22.

Now we're finally on the doorstep of Senate action on a comprehensive climate change bill. Floor debate over the Climate Security Act (S. 3036) will begin Monday, June 2.

If opponents of meaningful action have their way, the debate will be nothing more than a short, partisan fight over gas prices. You can already hear the predictable scare tactics: "Why would we want to raise gas prices now, when working Americans are already suffering at the pump?"

That's a phony argument -- but it brings me to another reason for passing a climate bill in 2008: It's time to kick our oil habit, and the best way to do that is with a cap-and-trade policy that reduces our dependence on fossil fuels.

Gas prices are at a record high because of growing demand from China and other developing nations. That's not going to change. The only solution is to end our addiction to oil.