PowerDown

Forum for general discussion of Peak Oil / Oil depletion; also covering related subjects

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martinezhockley
Posts: 19
Joined: 24 Nov 2005, 11:09
Location: Spain

PowerDown

Post by martinezhockley »

I'm enjoying the exchanges here, it shows a lot of basic good aspects of 'us' human beings. I've also started telling people about Peak Oil and was disappointed my letter to the press was not published. But I realise I have to keep at it. I've been composing an email to an official body here called (roughly) the Department for Energy Conservation after a weak article in Saturday's press about how Spain has to economise on energy consumption- without mentioning oil depletion!
I haven't read many books on this topic, haven't read Kunstler's long emergency for e.g but am currently reading (in small doses, it's frightening and depressing) Richard heinberg's latest "Powerdown" and I recommend The Party's Over for his clarity and balance. Must go and compose another "letter to the Times" equivalent....
beev
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Joined: 24 Nov 2005, 11:09
Location: Edinburgh, Scotland
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Post by beev »

Is it fair to say that - from a politician's point of view - making a noise about oil depletion is equivalent to a slap in the face to the OPEC cats who currently provide it?

Or perhaps - regardless of manners - it is expected that much talk of oil depletion will lead to more rapidly rising prices and thus hinder the development of alternatives?
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skeptik
Posts: 2969
Joined: 24 Nov 2005, 11:09
Location: Costa Geriatrica, Spain

Post by skeptik »

beev wrote: Or perhaps - regardless of manners - it is expected that much talk of oil depletion will lead to more rapidly rising prices and thus hinder the development of alternatives?
Just the opposite, I think.

Although oil is a component in the initial capital cost of installing alternative energy systems, such as wind and solar electric, the availabilty of cheap oil products has hindered the adoption of these alternatives.

If oil stays above $60 renewable energy companies are going to love it. Existing windfarms outcompete hydrocarbons for electricity production at that price.

the effect is already being seen in the stock market. Share prices of companies involved in wind generation have tracked the rise in oil price.

If you can factor rising oil, gas and electricity prices into the equation, renewables become all the more attractive, as the number of years to payback the initial investment is reduced. And unlike crude oil, the price of the wind never goes up...
MacG
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Joined: 24 Nov 2005, 11:09
Location: Scandinavia

Post by MacG »

skeptik wrote:And unlike crude oil, the price of the wind never goes up...
Well, not the wind, but the means to capture the wind have a relation to oil. Mainly steel, copper, concrete and aluminium -which are needed to build a windmill- have relations to oil. Existing turbines built with cheap oil will do just fine the first 10-20 years after peak -after which maintenance will be an issue- but the cost to build new ones will increase somewhat, thus distorting the equations a bit.
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