Tag Archives: Gail Tverberg

Geothermal: Another Leg to our Economic Stool

Richard Ha writes:

This is an interview with Gail Tverberg, conducted by Justin and Seth of the Extraenvironmentalist.com in Montreal. She discusses how running short of cheap-to-extract oil affects the economy. It's about 13 minutes long.

Hawai‘i relies on oil for 90 percent of its energy usage. It is very dangerous.

We do have a way to protect ourselves, though, and that is geothermal. We are very fortunate: Very few people in the world have this opportunity.

Geothermal can provide another leg to our economic stool. But we do need everyone’s help to figure out how we can do this.

We don't want Hawai‘i to be the canary in the coal mine (where the canary dies). Instead, we want Hawaii to see a bright sunny morning where the canary sings. 

Gail Tverberg on 2011 World Oil Production Data

A few years ago, Gail Tverberg gave a presentation here on the Big Island to the Kanaka Council. Her view of the world energy situation caused a split in its membership – some of them are now pro-geothermal, and some are still against.

The pro-geothermal group agrees with Gail that one day “the boat not going come.” Meaning that one day, all things that have oil embedded will be too expensive for the common people to afford. To people with this view, geothermal is a gift from our volcano goddess Pele.

Gail is a mathematician and former insurance actuary. She quit her job pricing risk for the insurance industry to take on a higher calling – to inform people about the implications of the world’s oil supply not keeping up with demand.

There is a parable illustrating the need for empirical evidence. It concerns scholars vigorously debating the number of teeth in a horse’s mouth. A naive young man suggests that they might resolve the question by looking in the horse’s mouth and counting them. The scholars are horrified at this outrageous suggestion. 

The common folk – the rubbah slippah folks, as I call them – have counted the teeth in the horse’s mouth, and they know that the era of cheap oil is over. In their view, a hot water heater provides a luxury sponge bath, and a clothes dryer is a luxury clothesline. The electric grid is essential for the hospital, for childbirth support, life support, analysis, computers. It doesn’t take them 10 minutes to understand that cheap, proven and no greenhouse gas emissions is good. And that geothermal is cheap and proven technology.

The price of oil was $25 per barrel in 2000, then doubled to $50 per barrel and in 2011 doubled yet again to $100 per barrel. If the price of oil, electricity and water follow the same doubling pattern, we can expect today’s $300 monthly electricity bill to rise toward $600 by 2016 and $1,200 by 2022.

But there is a great upside. If we stabilize our electricity rates by using geothermal as our primary base power, then as the price of oil continues to rise we will become more competitive to the rest of the world. And our standard of living will rise.

We need compassionate, decisive leaders who will take all of us to a safer place. Not, no can. CAN!

From Gail Tverberg’s blog Our Finite World:

What the new 2011 EIA oil supply data shows

Posted on April 9, 2012

The US Energy Information Administration (EIA) recently released full-year 2011 world oil production data. In this post, I would like show some graphs of recent data, and provide some views as to where this leads with respect to future production…. Read the rest

Tverberg: ‘Businessweek Gets It Wrong’

Here is a link to an article by Gail Tverberg. As I’ve said before, I cannot find fault with Gail’s analyses.

Businessweek Gets it Wrong—Everything You Know About Peak Oil is ‘Not’ Wrong

Posted on February 6, 2012  
On January 26, Bloomberg Businessweek printed an editorial by Charles Kenney titled, “Everything You Know About Peak Oil Is Wrong.” This editorial reflects several common misunderstandings.

According to Kenney:

Titled Limits to Growth, their report suggested the world was heading toward economic collapse as it exhausted the natural resources, such as oil and copper, required for economic production. The report forecast that the world would run out of new gold in 2001 and petroleum by 2022, at the latest.

Limits to Growth gives a table that might be interpreted to show that oil and gold new extraction will be exhausted by the dates indicated. The book is careful to explain that the situation is more complicated, though.

I agree that it is about the cost of oil and its consequences. I try to find workarounds that can help us here in Hawai‘i. Geothermal is one of those workarounds.

More from Gail Tverberg’s article:

…With high oil prices, people cut back on discretionary goods, resulting in layoffs among people who work in those industries. For example, fewer people have jobs in vacation industries (for example, in Greece and Spain) if oil prices are high. This leads to recession and debt defaults. If one country defaults, ripple effects can spread to banks around the world.

Our economy has a high level of debt. We need economic growth in order to repay that debt with interest. If oil supply remains flat, or worse yet, falls, it will be difficult to produce the level of economic growth needed to prevent debt defaults.

2011 Peak Oil Conference, Part 3: Energy Return on Energy Invested

I was Hawai‘i County’s representative to the 2011 Association for the Study of Peak Oil conference in Washington, D.C., which just concluded.

This was the fourth time I’ve attended the conference. After my first ASPO conference it hit me: I learned too much! It became my kuleana.

This is the third in a series of posts about information gleaned from this year’s conference. Note that everything I’m writing about is based on numbers, not my opinions. I am relaying information from very credible people who have gone through the peer review process and been vetted.

Energy Return on Energy invested (EROI or EROEI)

In a sentence, the definition of EROI: “The energy it takes to get energy – minus the energy it takes to get food – equals our lifestyle.”

Charles Hall, David Murphy and others, who have done peer-reviewed analyses of the concept of EROI, argue that organisms, organizations and civilizations must generate surplus energy in order to survive. A mother cheetah must be able to chase down rabbits and gazelles, miss a few, feed the kids and still have enough energy to run down more or else the species goes extinct. Ancient civilizations followed this principle.

This is Charley Hall, the father of EROI, on the left.

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Awhile ago, I read through his paper “What is the Minimum EROI that a Sustainable Society Must Have?, which he authored with Stephen Balogh and David Murphy, and I immediately got it. At the conference, I asked Charley to autograph a copy of it for me.

I was sitting right next to him and asked him how come there are no analyses for “hot” geothermal, like we have in Hawai‘i and Iceland. His answer was that we are a tiny part of the world solution. I guess so – we are only 2 million out of 7 billion people that are so lucky.

If it takes more energy to get the energy (as in some biofuels), then someone needs to explain to regular folks why we would do that. Otherwise, we start thinking about Easter Island.

Can we pay back our debts if the economy cannot grow? It is clear that the economy cannot stand a triple digit oil price. We have been using twice as much oil as we have been finding for more than 20 years now.

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And it is becoming more difficult and, consequently, more expensive to develop new sources. It seems reasonable to assume that oil prices will rise and fall with demand. But the prices will tend to keep rising as the population’s demand rises and as old fields naturally decline.

And doesn’t modern economic theory assume continuous growth? But growth stops when oil reaches triple digits per barrel. Are we facing the end of growth? It is prudent that we plan for the worse and hope for the best.

Both Gail Tverberg and Jeff Rubin write blogs about this (both their blogs are always available by clicking in the side bar at right).

Here I am with Gail. I cannot refute her arguments, so I spend all my time figuring out workarounds. That’s why I push geothermal so hard. It’s the bridge that will enables other renewables to cross.

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Hawaii Pacific University (HPU) in Honolulu is sponsoring a talk about the end of growth by Richard Heinberg on November  9th. Heinberg is a Senior Fellow-in-Residence at Post Carbon Institute, a nonprofit organization dedicated to “building more resilient, sustainable, and equitable communities.”

This is Richard Heinberg on the left.

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This series of posts about my trip to the 2011 Association for the Study of Peak Oil (ASPO) continues. Read Part 4 here.

Go back to Part 1 and Part 2.

Gail Tverberg on Egypt & Middle East

I find Gail Tverberg to be the most levelheaded commentator about our world energy situation.

This blog post of hers includes an audio clip about the factors at play in Egypt and the Middle East right now.

Egypt’s Problems – Robert Knight interviews Gail Tverberg

A few days, ago, Robert Knight of WBIA public radio in New York City interviewed me about the problems in Egypt. The interview touched a little on Libya’s problems as well. I am not certain of when the interview actually aired. He asked me about a number of issues, including peak oil.

I thought a few readers might be interested. This is a link to the MP3 recording. It is about a half-hour in length. Read the rest

Gail Tverberg & Peak Oil

Gail Tverberg wrote this article for Oil and Gas magazine:

It seems to me that the current recession is very much energy-related, and is likely to continue. The recession is occurring because the current US “system” (individual homes, private cars, many imports) was built for cheap ($20 barrel) oil and gas, and cannot function well using expensive oil and gas.

She notes that people’s income are relatively fixed and any increase in energy costs is not good for the economy. This means that expensive energy will hurt us, while cheaper energy will help us. If people no more money, they cannot go to the stores.

Geothermal gives us a way out.

When energy matters came to my attention several years ago, Gail’s writings stood out. They are clear, simple and easy to understand. Gail has a mathematical background. She worked as an actuary, advising the insurance industry on risk and reward matters.

Later, I found out that most Peak Oil staffers are international and nationally recognized experts in the oil and gas industry, or experts in other relevant fields. They know what they are talking about. I respect simple competency.

When I went to the first Association for the Study of Peak Oil conference in October 2007, in Houston, I made sure to go up and introduce myself to Gail.

As soon as I came back, I suggested to Betsy Cole of the Kohala Center that they do an energy conference. It took place in June 2007 at the Hilo Hawaiian, and Gail was the featured speaker.

After the conference I spent three days taking Gail and her family sightseeing. Peak Oil was on both of our minds and we spent quite a bit of the time talking about the ramifications.

Although masked by the present recession, the same forces of declining oil supplies are still at work two and a half years later. Many folks from Hawai‘i responded to her post on the Big Island. It is true that we are very much aware of what is going on.

Back then I called Kale Gumapac, alaka‘i of the Kanaka Council, and told him that I could arrange for the Kanaka Council to hear Gail’s talk free of charge. He told me that his people would feel awkward among the “shiny shoe” crowd*.

So instead I made arrangements for Gail to see them at the Lili‘uokalani Children’s Center. Though the Kanaka Council members were at an important County Council hearing, they all went over to hear Gail speak.

It was remarkable how Gail’s message resonated. For them, it was not a matter of “if the boat not going come.” It was a matter of when.

During the talk and after, they  treated Gail as a kupuna. It was remarkable to see.

* This is where the phrase “rubbah slippah crowd” came from.