Stories tagged with "china"

From ASPO-USA to MinExpo - a Study in Contrasts

It seems as though I have inhabited two different worlds in the past 24 hours. I went from the relatively small (500 folk) meeting in Sacramento where Peak Oil is viewed as imminent, to the halls of the Convention Center in Las Vegas, where the Quadrennial MinExpo is showcasing the latest machines to over 41,000 folk involved in the Mining Industry. It overflows that very large (600,000 sq. ft) building and extends out into the parking lot. Here, with an industry in considerable profit, the displays were large and much more optimistic than I have seen them in previous years. The two meetings were, however, joined by a common complaint that the human resource, the engineers and scientists needed by both communities, are in critically short supply.

Wandering the booths, with only one day to catch all the new and different products, I did come across a couple of items that are, I believe, worth a brief comment before I write a concluding post to wrap ASPO-USA 4. In that post, I will give some of my own interpretation of the conference.

Of pipelines and the future

Gail’s recent post on the fragility of the US distribution system and the shortages that will be imposed by refinery outages, is a reminder of our dependence on pipelines for supply. The dependence is not just in the US, though the debate over the reality of a new gas pipeline from Alaska to the lower 48 rumbles along as a part of the election debate.

Most of Europe also depends on pipelines, particularly natural gas ones, and it is because of that that I am going to take a somewhat nervous stance and disagree with a recent article by Jerome. Some considerable time ago we swopped comments about the likelihood of different pipelines being laid to exploit the natural gas in Turkmenistan, and so from that point, this post is an admission that his opinion at the time (that many of these pipes wouldn't happen) was correct. However part of the reason for this is the less than benevolent role that I see Russia is playing, and this is my disagreement with him.

My concern is emphasized by the difference in objectives of two recent trips around the periphery of Russia. First there was the trip by the Russian President, who, with Gazprom CEO Alexei Miller, toured oil and gas supplying countries such as Turkmenistan, Azerbaijan and Kazahkstan in July. Out of that came both an agreement for Russia to buy Turkmen gas but also for Gazprom to invest in the Turkmen gas infrastructure. (Quotes under fold)

A Pretty Stunning Graph of World Cement Production (and China is Certainly Using It)

Annual production of cement by country in billions of metric tons. Click to expand. Source: USGS 2006 report (PDF) and the USGS 2008 report (PDF).

Cement is mainly used to make concrete, and is sort of the "active ingredient" in concrete - it is combined with sand and gravel in roughly fixed proportions. So cement production can be considered a rough proxy for the total amount of construction going on in a country.

This post updates Stuart's post about this two years ago (and yes, it's still a graph that will blow you away!) with two more years of USGS cement data, 2006 and 2007. The growth in China, from 1 GT to 1.3 GT in two years is mindboggling, even India and Russia are interesting...and there's more to think about under the fold.

edited to add: As a couple of folks pointed out--I have interchanged "production" and "usage" in this post incorrectly--however, China's 2007 cement exports were only 33 million tons out of 1.3 billion tons produced. So, at least for China, production is a good proxy for demand/consumption. My apologies for the mistake.

The Coal Crunch is Materializing

In recent days a series of media articles surfaced pointing to a concerning situation in China. The New Scientist reported:

At the end of a cold and stormy winter, the country has just 12 days of coal reserves at most power stations. Some provinces, including Hebei, bordering Beijing, have less than a week's coal left. This is a record low, the state electricity regulatory commission revealed on Tuesday.

The rising fortunes of coal - perhaps

A week or so ago I wrote about the power supply debate going on in New England, with the controversy over the wind farm to be sited in the waters off Cape Cod. In that post I commented on the fact that, in response to an energy shortage that had appeared in 2004, the area had ensured additional supplies of LNG, and had converted some power stations so that, instead of relying on natural gas, they could also burn oil. The advantage of oil in this particular case is that it is somewhat more easily stored and thus is accessible when the gas lines are not available.

However I skated around the issue as to what would happen if there were neither oil nor gas available. This is not, unfortunately, a theoretical exercise. Chris Skrebowski has projected a supply shortfall by 2012. Yet already in India power plants are being idled because they cannot get enough LNG. And as for the supplies of oil, the likelihood of us being past peak by 2012 is increasingly real. So, that being the case, where can one look for alternate fuel. As articles in the New York Times and in the Washington Post have noted, for most of the rest of the world the short-term answer would appear to be from coal.

Turkmenistan learns a lesson

There has been the occasional story popping up in Drumbeat over this past week or so about the severe winter and gas shortages in Iran, and their resulting cut in supplies to Turkey. The Iranian domestic shortage was supposed to be made up from Turkmenistan. Unfortunately the shortfall from Iran to Turkey was supposed to be made up by increased supplies from Russia, but those also are falling short. About a year ago we saw some of the same discussion about supplies from Turkmenistan, through Russia, to Europe, with shortfalls and price increases – particularly relating to the gas supplies to Ukraine, through which the pipelines flow. At the end of that discussion the Turkmen got an increase in the price of their gas. It is therefore not surprising to see that Turkmenistan is seeking to double the price it gets from Iran.

Houston ASPO Day 2 part 2

This is the last of the posts that deal with the content of the ASPO Conference last week in Houston. I will have my usual personal closing review tomorrow. As I hope you will gather, it was full of information and somewhat intense. And that did not include talking to folk in the breaks, which expanded a lot on what was being said in the papers. So if you want to think of this as the first commercial for next years meeting (which will be in California) then you’re right again. And just to remind you, the earlier posts were a report on the Workshop day, the first morning report, the rest of Thursday, and then Friday morning. A quick thanks to all, and it was more fun than I had even hoped to meet so many of the TOD folk, as well as so many others – thank you all, and of course, a much bigger thank you to the organizers for putting this on. The result, gentle folk, was well worth the effort.

We rejoin the meeting just as we sat down to lunch, and a talk by Houston Mayor Bill White who has the enviable distinction of having Matt Simmons as the Treasurer of his Campaign Committee. He acknowledged Matt as a prophet (with all that usually brings). He sees the current situation as one that comes down to a race between depletion and technology. It is not possible to give a political speech and create more oil fields. It is not possible by giving a political speech to create a hydrogen economy either immediately or in the practical future. It is not possible by giving a political speech to over-ride the laws of physics.

ODAC Newsletter, Saturday 20 October

Topics include:

Economy – UK and Europe; Geopolitics - Caspian; Coal / China / Kyoto Protocol; Natural Gas - Iran; Russia - Wheat Exports; ASPO-USA P.O. Conf. – Media Response; Economy - USA

An insight on US strategic thinking - why so much cowering fear?

Earlier last week, I wrote a diary (What the west means and what roles NATO plays therein) that used a recent Financial Times editorial as a springboard for a discussion on what the "West" was, and what the use of NATO was - questions that  left-of-center Europeans tend to see quite differently from most Americans, including left-of-center ones.

The editorial, by a well-respected British pundit, was insightful and interesting, and led me to conclude what many on the European Tribune have long suspected: that NATO is simply an instrument for Europe to support US strategic priorities, and that the "West" exists only when Europe (and in particular France) aligns itself unconditionally on US positions. The UK, as per that senior British commentator, has as its main role that of disrupting and dividing Europe when it is insufficiently respectful of US interests.

Since I'm French, you may be tempted to conclude that this is just sour grapes by a citizen of a supposedly declining country; however, what I found more interesting in that article was the dominant tone of fear - about the west being under siege, and needing security against various threats - in the form of coordinated military power and little else. It was a narrow, downcast, closed vision of the world, with little about values, progress or hope.

The comment thread is worth reading too, and one of the last comments, by Loefing, pointed me to another article on the same topic, this time by a graduate of the US Naval War College, Tony Corn. The article, (The Revolution in Transatlantic Affairs, has the same dominant tone of fear, but a much more detailed examination of the world. Given the credentials of its author, it is likely to have serious influence on the thinking of the strategists in the Pentagon, and it is thus worth deconstructing.

...To Grandmother's House We Go: Peak Oil Is Here

This is a guest post by Glenn Morton, a geophysicist in the oil industry. For Kerr-McGee Oil and Gas Corp., Glenn served as Geophysical Mgr Gulf of Mexico, Geophysical Mgr for the North Sea, Dir. of Technology and as Exploration Director of China. Currently he is an independent consulting geophysicist, and you might know him as seismobob.

I have intentionally paraphrased this wonderful Christmas song because it has much to say about the future after peak oil which I am now ready to say has already happened. As energy declines, we will indeed go to our grandmother's house--one without electricity and running water, sewer or septic and deep, mechanically pumped water wells. At least that was MY grandmother's house. She lived on the Kansas prairies of the 1890s. In the 1960s I asked my grandmother what the greatest invention of her life had been. She said electricity because before they had lights, everyone went to bed shortly after sun down because it was simply too dark to do to much. There was no air conditioning, so the summers were very hot. In the winter, trips to the outhouse were cold (and brutally awakening if during the middle of the night). While she had wood where she lived, about 100 miles west of her home, people had to burn dung as is done in Tibet today. See the picture below of the dung plastered against the house. When one wants to cook, one retrieves a patty.

Without cheap energy, we go back to my grandmother's house or one quite like it...