How much difference does Technology actually make? For example KSA closed their first oil field, Dammam, decades ago because production had fallen to uneconomic levels. A few years ago they decided to rework the field using new techniques like horizontal drilling to get more of the OIP (original oil in place) out because technology and higher price make doing so a paying proposition.
But how much more oil will they ultimately recover from the field? How much could they have recovered using the old techniques if they had simply decided to convert the field over to a stripper well system like so many USA fields and kept just pumping it out slowly as OIP migrated through the reservoir rocks to the well bores?
30 years ago Mobil management literally beat the fear of PO (reserve replacement problem) into us on a regular basis
the current chatter about “US energy independence” only reinforces that pessimism.
Which is why we’ve never drilled nor ever will drill the fractured shale plays.
Rather than replacing renewables, the Citi analysts suggest that the shale gas industry will actually be dependent on the broader deployment of wind and solar for its future. That’s because gas will be priced out of the conventional market in the short term, but will then be required to fill in the gaps as wind and solar are deployed more widely, and coal generation is shut down.
Renewables, meanwhile, are steadily, predictably heading down the cost curve toward “grid parity,” that moment when they are competitive with coal and natural gas without subsidies. Residential solar is already there in many places:
In many countries — Germany, Spain, Portugal, Australia, and the South-West of the US — residential-scale solar has already reached ‘grid-parity’ with average residential electricity prices. In other countries grid-parity is not far away; we forecast that grid-parity will be attained by Japan in 2014-2016, South Korea in 2016-2020, and by the UK in 2018-2021.
Utility-scale solar won’t be far behind:
On our analysis utility-scale solar power will gain competitiveness with gas-fired power in the medium term in many regions, even if gas prices stay low. For regions with solar insolation of 1900 kWh/kW/year — as in the South-West US or Saudi Arabia — utility scale solar is already cheaper than gas-fired power at a natural gas price of $15/MMBtu, and by 2020 for a gas price of ~$6-8/MMBtu.
And wind power is competitive in a growing number of places as well:
Wind power is significantly cheaper than solar power, and in most countries wind delivers electricity at a far lower cost than the residential electricity price. On the utility scale, wind power is already competitive with gas-fired power in many regions. In the US, for example, wind power would be cheaper than gas-fired power at a natural gas price of under ~$6/MMBtu.
Many of the places where renewables are developing quickly are places where shale gas is expensive and will be slow to penetrate. This chart, which estimates when grid parity will arrive in various countries, is information-dense but worth examining closely:
Biofuel prices are anticipated to drop even further in coming years. A recent report by the Department of Energy’s Biomass Program (seen below) anticipates that the cost of producing biofuels could drop as low as $2.32 per gallon by 2017. In comparison, the US Energy Information Administration forecasts that the production cost of motor gasoline will be $3.65 per gallon by 2017 (both figures are not-weighed for inflation). Although these figures are subject to great variation by many confounding variables, it is probable that biofuels will be cost competitive within the decade.
Graeme wrote:I disagree. It's abundantly clear that fossil fuels will not be available after 2020. I also know that that it is possible to switch by then. I think quite a lot of people are aware of this so the change may be faster than you think. Both of us can observe the changes over the next decade to see who is right.
ROCKMAN wrote:Graeme - "It's abundantly clear that fossil fuels will not be available after 2020". I can't be reading you correctly: do you believe we'll have no fossil fuels being produced in just 7 years? Dang...I might just fight my MS long enough to make you eat them words, cowboy!. LOL.
Yes...many things are possible. And many of those are improbable. And that's why they have horse races...to settle the questions.
Look at the data in the figure above, kindly provided by Emilio Martines, member of ASPO-Italy. The growth of photovoltaic and wind energy has been impressively fast during the past 2-3 decades. The log scale evidences the exponential growth of both technologies. There are no signs of slowdown, so far, despite recessions and the bad state of the economy. According to the graph, wind power grows of a factor 10 in less than 10 years, PV power takes little more than 5 years. At these rates, both wind and PC could reach the goal of one installed terawatt (TW) each around 2020.
ennui2 wrote:Graeme is not a doomer. He's a technofix optimist who is pushing a narrative of "the stone age didn't end because of a lack of stones".
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