NONRENEWABLE RESOURCES: Energy analyst predicts that oil could reach $300 in ten years. Can the GOP’s energy policy meet our future energy needs?

Images via Grant Neufeld and pshab on Flickr.

How will the future economy of the United States respond to rising oil prices or to $300-a-barrel oil? Under the Obama Administration and a Democratic majority, we’ve seen the federal government attempt to stimulate renewable energy by investing into it, by contributing to energy-storage technology, and by recognizing the utility of alternative-fuel vehicles.

Despite fossil fuels contributing to climate change, national security concerns, and the pollution of the human environment, the GOP embraces an economy dependent on dirty, nonrenewable fossil fuels. Fossil fuels may seem cheap, but they’re not. The cheap cost of fossil fuels, paid at the pump for example, doesn’t reflect the true cost of fossil fuels, because the price at the pump doesn’t include costs that are a consequence of the negative externalities associated with burning fossil fuels. For example, it has been estimated by numerous studies that the negative externalities associated with burning fossil fuels cost governments and the public billions of dollars each year. This means that while fossil-fuel companies receive record profits, they’re not responsible for the consequences of doing dirty business or for the billions of dollars that governments and the public are forced to pick up. Additionally, the fossil-fuel industry receives government subsidies to pollute the human environment. These fossil-fuel subsidies must be eliminated to “enhance energy security, reduce emissions of greenhouse gases and air pollution, and bring economic benefits.”

Given the facts and consequences associated with a fossil fuel-based economy, it would seem that a prudent and progressive energy policy shouldn’t be a partisan issue, but the Republican Party isn’t exactly known for pushing clean, sustainable, or rational energy policy reforms. For example, the Republican Party’s energy policy focuses on “lifting restrictions on ANWR, the Outer Continental Shelf, and oil shale in the Mountain West.” Also, the Republican Party claims that “revenue generated by the sale of leases will be invested in renewable and alternative sources of energy.” However, what will the United States utilize after these nonrenewable resources are exhausted? Why drill here, drill now when these minerals are sold on an international market, so why is it necessary to invade protected wilderness areas to extract minerals, which aren’t necessarily consumed domestically. Also, considering greenhouse gases, global warming, and climate change, why is it necessary to add even more trapped carbon dioxide — a greenhouse gas — into the atmosphere? Basically, the short-term benefits of extracting and using these minerals are outweighed by the long-term damage caused by climate change and a failure to implement a prudent or sustainable energy policy.

Furthermore, the Republican Party believes that “the best way for utility companies to reduce carbon emissions is to increase their supply of nuclear energy.” However, nuclear power isn’t cheap, and the costs associated with constructing new nuclear power plants have skyrocketed. There are also substantial costs associated with decommissioning nuclear power plants (“it may cost $300 million or more to shut down and decommission a plant“). Other negatives associated with nuclear power production include the fact that the nuclear power industry depends solely on a nonrenewable energy source, and there’s the well-known problem of storing nuclear waste. Also, “the process of thermoelectric generation from fossil fuels such as coal, oil, and natural gas, as well as nuclear power, is water intensive. In fact, each kWh generated requires on average approximately 25 gallons of water to produce.” Therefore, drought could force nuclear power plants to shut down. What’s more, there are past and present safety concerns with nuclear power production. Recently, the nuclear power industry has been plagued by safety problems at the Vermont Yankee Nuclear Power Plant. Certainly, if the costs associated with decommissioning nuclear power plants, with the management of nuclear power plants, and with the disposal of nuclear waste are considered, then both solar and wind power are substantially cheaper than nuclear power.

The GOP’s talking points on energy also claim that Democrats tax energy, but the GOP makes no mention of the tax incentives and tax credits spurred under the Democratic majority and under the Obama Administration. Consequently, the Republican Party merely politicizes and trivializes the issue of energy. Why can’t the Republican Party aggressively pursue the development of renewables? Portugal is doing it. Denmark is doing it. Iceland is doing it. Even China understands the utility of developing its renewable energy sources.

Additionally, being a conservative political party, there are energy conservation strategies that the Republican Party should show open and strong support for but don’t. For example, there are the ideas of retrofitting buildings to conserve energy, adopting greener building standards to conserve energy, or even promoting the smart grid revolution to conserve energy. Also, instead of attacking it, the Republican Party should show strong support for science in order to spur innovation and technological development to meet our energy needs.

Given the Party’s energy policy positions, the new Republican majority in the House of Representatives threatens to stifle the progress made by the Democratic majority by resurrecting an energy policy focused too much on fossil fuels. For example, Representative Joe Barton, a Republican from Texas and BP apologist, is supposedly a contender for the chairmanship of the Energy and Commerce Committee. Another contender for the chairmanship of the Energy and Commerce Committee is John Shimkus, a Republican from Illinois. Shimkus is a climate-change denier, and once declared that “global warming isn’t something to worry about because God said he wouldn’t destroy the Earth after Noah’s flood.”

To summarize, the Republican energy policy lacks innovation and forward-thinking, and their energy policy merely utilizes old ideas, which don’t promote energy security. To put it another way, the Republican Party’s answer to our current energy crisis is to stick their heads in the sand. Also, the failure of the Republican Party to embrace prudent energy policies is the failure to recognize the connection between population growth, rising energy demand, natural resource unavailability, and rising energy and mineral prices. More on the future price of oil via Peak Oil News and Message Boards:

Ludwig: What is your oil price outlook as this whole new world order begins to take shape?

Maxwell: The supply and demand of oil in the world today are pretty close to each other, and there shouldn’t be too much deviation in 2010 and 2011. We think prices will stay within a band roughly between $67-$87 a barrel. When it gets up toward $87, it seems to retreat, and when it gets down toward $67, it seems to take off again. That’s because supply and demand are in rough balance.

But as the economic recovery continues, as more people use oil because there are more people in the world, and China and India continue to progress with rapid expansion of cars and the roads they are offering their people, demand for oil will continue to climb between 1 and 1.5 percent per year. That, combined with the depletion of these mature oil fields we’ve talked about, will bring us to a plateau by 2015-2017, where the rising production of newer oil fields will equal the falling production of old fields.

At that stage, prices will break through this $87 boundary—in about 2013, I’m thinking. And by 2015 we’ll be up to around $130-$150 a barrel. And then by 2020, when we have 1.5 percent increases in demand each year and 0.5 percent declines on the downside, then we’ll really be in a fix. At that time, I’m looking at $300 a barrel in money of the day. But remember, by then we will have the full effects of inflation over the prior 10 years, so it would probably be something like $200 a barrel in today’s terms, but it will have a nominal price of about $300 a barrel.

POLLUTION: BP dispersants “causing sickness”

Image via Jennifer Aitken

BP used at least “1.9 million gallons of widely banned toxic dispersants” to treat the 4.9 million barrels of oil that leaked into the Gulf of Mexico from the Deepwater Horizon drilling-rig disaster, and the consequences of treating the oil with dispersants has the potential to make both people and wildlife sick. Via Dahr Jamail at Aljazeera.net:

Naman, who works at the Analytical Chemical Testing Lab in Mobile, Alabama, has been carrying out studies to search for the chemical markers of the dispersants BP used to both sink and break up its oil.

According to Naman, poly-aromatic hydrocarbons (PAHs) from this toxic mix are making people sick. PAHs contain compounds that have been identified as carcinogenic, mutagenic, and teratogenic.

Fisherman across the four states most heavily affected by the oil disaster - Louisiana, Mississippi, Alabama, and Florida - have reported seeing BP spray dispersants from aircraft and boats offshore.

“The dispersants are being added to the water and are causing chemical compounds to become water soluble, which is then given off into the air, so it is coming down as rain, in addition to being in the water and beaches of these areas of the Gulf,” Naman added.

“I’m scared of what I’m finding. These cyclic compounds intermingle with the Corexit [dispersants] and generate other cyclic compounds that aren’t good. Many have double bonds, and many are on the EPA’s danger list. This is an unprecedented environmental catastrophe.”

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Gruesome symptoms

“I started to vomit brown, and my pee was brown also,” Matsler, a Vietnam veteran who lives in Dauphin Island, said. “I kept that up all day. Then I had a night of sweating and non-stop diarrhea unlike anything I’ve ever experienced.”

He was also suffering from skin rashes, nausea, and a sore throat.

At roughly the same time Matsler was exposed, local television station WKRG News 5 took a water sample from his area to test for dispersants. The sample literally exploded when it was mixed with an organic solvent separating the oil from the water.

Naman, the chemist who analyzed the sample, said: “We think that it most likely happened due to the presence of either methanol or methane gas or the presence of the dispersant Corexit.”

“I’m still feeling terrible,” Matsler told Al Jazeera recently. “I’m about to go to the doctor again right now. I’m short of breathe, the diarrhea has been real bad, I still have discoloration in my urine, and the day before yesterday, I was coughing up white foam with brown spots in it.”

As for Matsler’s physical reaction to his exposure, Hugh Kaufman, an EPA whistleblower and analyst, has reported this of the effects of the toxic dispersants:

“We have dolphins that are hemorrhaging. People who work near it are hemorrhaging internally. And that’s what dispersants are supposed to do…”

By the middle of last summer, the Alabama Department of Public Health said that 56 people in Mobile and Baldwin counties had sought treatment for what they believed were oil disaster-related illnesses.

“The dispersants used in BP’s draconian experiment contain solvents such as petroleum distillates and 2-butoxyethanol,” Dr. Riki Ott, a toxicologist, marine biologist, and Exxon Valdez survivor, told Al Jazeera.

“Solvents dissolve oil, grease, and rubber,” she continued, “Spill responders have told me that the hard rubber impellors in their engines and the soft rubber bushings on their outboard motor pumps are falling apart and need frequent replacement.”

“Given this evidence, it should be no surprise that solvents are also notoriously toxic to people, something the medical community has long known,” Dr. Ott added.

“In ‘Generations at Risk’, medical doctor Ted Schettler and others warn that solvents can rapidly enter the human body. They evaporate in air and are easily inhaled, they penetrate skin easily, and they cross the placenta into fetuses. For example, 2- butoxyethanol (in Corexit) is a human health hazard substance; it is a fetal toxin and it breaks down blood cells, causing blood and kidney disorders.”

Pathways of exposure to the dispersants are inhalation, ingestion, skin, and eye contact. Health impacts include headaches, vomiting, diarrhea, abdominal pains, chest pains, respiratory system damage, skin sensitization, hypertension, central nervous system depression, neurotoxic effects, genetic mutations, cardiac arrhythmia, and cardiovascular damage.

Even the federal government has taken precautions for its employees. US military officials decided to reroute training flights in the Gulf region in order to avoid oil and dispersant tainted-areas.

Corexit 9527 is some nasty stuff. Via Wikipedia:

Corexit 9527, considered by the EPA to be an acute health hazard, is stated by its manufacturer to be potentially harmful to red blood cells, the kidneys and the liver, and may irritate eyes and skin.[14][24] The chemical 2-butoxyethanol, found in Corexit 9527, was identified as having caused lasting health problems in workers involved in the cleanup of the Exxon Valdez oil spill.[25] According to the Alaska Community Action on Toxics, the use of Corexit during the Exxon Valdez oil spill caused people “respiratory, nervous system, liver, kidney and blood disorders”.[16] Like 9527, 9500 can cause hemolysis (rupture of blood cells) and may also cause internal bleeding.[4]

According to the EPA, Corexit is more toxic than dispersants made by several competitors and less effective in handling southern Louisiana crude.[26] On May 20, 2010, the EPA ordered BP to look for less toxic alternatives to Corexit, and later ordered BP to stop spraying dispersants, but BP responded that it thought that Corexit was the best alternative and continued to spray it.[3]

Reportedly Corexit may be toxic to marine life and helps keep spilled oil submerged. There is concern that the quantities used in the Gulf will create ‘unprecedented underwater damage to organisms.’[27] Nalco spokesman Charlie Pajor said that oil mixed with Corexit is “more toxic to marine life, but less toxic to life along the shore and animals at the surface” because the dispersant allows the oil to stay submerged below the surface of the water.[28] Corexit 9500 causes oil to form into small droplets in the water; fish may be harmed when they eat these droplets.[4] According to its Material safety data sheet, Corexit may also bioaccumulate, remaining in the flesh and building up over time.[29] Thus predators who eat smaller fish with the toxin in their systems may end up with much higher levels in their flesh.[4]

A “presidential commission tasked with investigating the causes of the Deepwater Horizon accident” has determined that there wasn’t enough scientific evidence to guide governmental agencies in making their decisions to use dispersants. Via Science Now:

According to the working paper, a lack of studies on dispersant toxicity meant that the Coast Guard’s Thad Allen, EPA’s Lisa Jackson, and NOAA’s Jane Lubchenco were “seriously handicapped” when deciding whether the chemicals should be used. “Because federal agencies had failed to plan adequately, they did not possess the scientific information that officials most certainly would have wanted to guide their choices.” But the paper concludes that their decision to use dispersants was reasonable under the circumstances, noting that the trio quickly consulted with a group of 50 experts. So far, the use of dispersants appears to have had greater benefit than cost.

The appeal of dispersants is that they break up oil into small droplets, which are less harmful to birds and other wildlife. The droplets are also thought to break down faster. And releasing dispersants at the gushing wellhead was intended to help protect workers on the surface by reducing the amount of oil and associated volatile organic compounds. The problem was the lack of adequate toxicity data on the dispersants themselves. Officials didn’t know the possible impacts on marine life, given the hundreds of thousands of gallons being used over several months (more than 2.5 million in all). They also didn’t know the relative toxicity of the various dispersants.

The commission staff members also concluded that the lack of planning led to delays in response; according to interviews with Coast Guard responders, EPA field staff hadn’t been delegated the authority to grant permission for dispersants to be used and were inexperienced with dispersants, thus delaying the response. The Coast Guard sources also felt that “EPA scientists with such experience were not being adequately consulted in EPA’s decision-making process.”

PEAK OIL: How much oil is left?

Infographic by Carrentals – Peak Oil Consumption

FISHERIES: Fishers claim crabs contaminated by oil pollution

Video: Seafood dealer says load of crabs “contaminated with oil”

In addition to claims that their crab catch was contaminated from oil pollution, fishers claim that government scientists failed to collect samples of their catch. More via WALB-TV:

Fishermen in coastal Louisiana say hundreds of crabs caught near Saint Bernard Parish were full of oil, rendering their day’s catch useless. Now they’re calling for testing to see if those crabs were contaminated from BP oil.

Tuesday was supposed to be a very productive day for B&K Crabbing, but when one of the fishermen brought his catch back to the dock, seafood dealer Kevin Heier says he knew something wasn’t right.

“We dumped them in ice water, picked the box up, dumped them on the table, and the smell like to knocked us down,” Heier said. “[We] emptied the box of crabs and the water that was coming off the crabs on the table was just like a sheen.”

Heier believes the crabs were contaminated with oil.

“It’s something I’ve never seen before in my life,” Heier said. “I was in total shock. Mr. Bruce, he’s 70 years old, he’s been doing this for 60 years, something he’s never seen either.”

Dealers Bruce Guerra and Heier immediately realized no one would want to buy their catch. Their next move was trying to contact Wildlife and Fisheries.

“We got a biologist that was supposed to come here, about an hour passed and he never showed up,” Heier said. “So we called the biologist and said ‘What happened?’ and he said ‘My superior stopped me from coming.’”

More than 24 hours later, Heier says the catch can’t be tested because the crabs have all died. Crabbers will have to return and try for another harvest from the same area. Ideally, some of the crabs will live long enough to serve as viable samples.

“We’ve got to get to the bottom line and find out the root cause of this, what’s the problem,” Heier said. “It’s like we can’t get help from nobody.”

Guerra added, “It ain’t over with. Just like BP, Alaska, 17 years this went on. They’re here four and a half months and want to pull out, you know, like nothing’s wrong.”

The oil spill isn’t finished, and it’s effects will continue for years. The image below shows one of three fish kills reported from Plaquemines Parish. At first glance, the image looks like an old road, but “it’s a Louisiana waterway, [and] its surface [is] completely covered with dead sea life — a mishmash of species of fish, crabs, stingray and eel.” Some claim that the fish kill isn’t connected to the oil spill, but fishers argue that these type of fish kills are unprecedented.

Video: Thousands More Dead Fish Turn Up in La. Waters

CONSERVATION: Hunters, rich conservationists, and local farmers can help protect Africa’s wildlife

[N]o matter how fecund nature is, humans are more so. With Africa’s human population set to double to 2 billion by 2050, new thinking is needed to preserve the continent’s remaining biodiversity.

Image: In order to protect the last remaining northern white rhinos (Ceratotherium simum cottoni) from poachers, conservationists must keep their horns filed down. Although “a slight recovery was recorded in 2003[,] when 30 [northern white rhinos] were counted[,] . . . by 2006 only four were left.” After the rhino’s last known stronghold—the Garamba National Park in the Democratic Republic of Congo—succumb to war and civil unrest, the remaining northern white rhinos haven’t been seen since. The individual below represents captive individuals that were translocated to Ol Pejeta in order to improve their fecundity. Image via Wikipedia

The Economist has an interesting piece on how economics can be a major driver of species extinctions—particularly when demand and value are high for animals or certain type of animal parts (e.g., poaching for medicinal purposes or poaching live specimens for the pet trade). The article begins by giving a somber assessment of the northern white rhino.
Certainly, if economics can destroy nature, then economics can also be used to save nature. For example, hunting is “a potential bonanza for local communities.” Therefore, as a product of that idea, the authors mention that anti-hunting efforts may hurt conservation efforts. The article also highlights another problem facing conservation efforts—human expansion—and briefly mentions how culture can be a factor in accelerating biodiversity loss, which is an interesting idea.

To save species, particularly in Africa, the authors don’t necessarily promote the fortress model towards conservation, but they offer several alternative ideas that seem to have success or potential for success. For example, (1) conservationists should place value on biodiversity; (2) the management of Africa’s national parks should be modernized; (3) the privatization of land through wealthy conservationists, local communities (i.e., community-based conservation), or organizations, with access to adequate resources (e.g., monetary, indigenous knowledge, international donors), may be successful at conserving wildlife and landscapes; (4) employing “‘non-use’ earnings, where large numbers of people around the world pay small sums to buy shares in African biodiversity not to use it, but simply because they believe its protection is important to the planet, may achieve conservation goals; (5) addressing social issues such as poverty, illiteracy, and alcoholism can reduce pressure on natural resources; and (6) “looking at wildlife, rather than shooting it” can be a model for successful conservation. Of course, the idea of sustainability looms over all of these ideas.

There’s another issue at play, and it’s more of a philosophical consideration, but it raises important questions nonetheless. Even if hunting, or any other type of wildlife management scheme can successfully boost wildlife numbers or achieve conservation goals, then humans are undoubtedly creating nature or merely socially constructing nature. Consequently, we’re not saving the wilderness as it’s typically idealized in our minds or the first nature before humans (it’s impossible to know what that exactly looks like). We’re either saving what we think nature and wilderness should be or we’re shaping nature, wilderness, landscapes, or ecosystems to better fit our agenda. Essentially, the ideas we determine are fit to achieve conservation goals will paint the picture of nature or have a direct impact on the “natural” landscape. Perhaps, chewing over the idea of a socially constructed nature when considering conservation goals is meaningless, since nature has been, and will continue to be, socially constructed. Via The Economist (emphasis added):

ONLY eight specimens of the northern white rhino are left alive on the planet, and they are all in captivity. The handful that remained in the wild in Congo have not been seen in years; they are almost certainly dead. A final effort to save the sub-species earlier this year saw four northern whites shipped from a zoo in the Czech Republic to the Ol Pejeta conservancy on the Laikipia reserve in Kenya.

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[T]he chances of saving the northern white are remote. Short of re-engineering it from frozen samples in the future, the best hope of preserving its genetic stock is to breed the last individuals with southern whites. That means the end of a creature that has probably been distinct for a million years. Indeed, the decline of the African rhino—which includes the black rhino as well as the white—is among the sorriest and most instructive tales in conservation.

When President Theodore Roosevelt came to east Africa in 1909 an estimated 300,000 rhinos roamed the region. Now there are perhaps 2,000. The problem is not that the rhinos are half-blind, lumbering, and often infertile—which they are. It is economic: the ornamental and medicinal value of rhino horn makes it hard for the rhino to pay its way alive.

The value of rhino horn in China, ounce for ounce, is higher than gold. It is likely to keep rising with an ageing population; in Chinese medicine the horn is ground into a powder to alleviate fevers and pain, particularly for terminally ill patients. With more Chinese contractors working in Africa, the risk of poaching seems to have increased. Market forces are insistent. Even at Ol Pejeta, which is protected by electric fences and armed guards, the horns of the four northern whites have had to be filed down to limit the risk of poaching. An inside job at one private ranch in Kenya last Christmas saw a rhino killed and its horns hacked off. The Kenya Wildlife Service later tracked down the culprits and recovered the horns, along with $8,500 in cash the poachers had been paid, with the balance payable on delivery. Sold in 10g increments in Guangzhou, the seven kilos of horn would be worth $250,000.

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Some countries have had success with hunting. Namibia, for instance, has increased the absolute numbers of its game animals by allowing oryx, hartebeest, kudu and springbok to be hunted and harvested as high-protein low-fat meat for regional supermarkets. Peter Lindsey of the University of Pretoria argues that animal-rights groups are denying Africa the wise use of its elephants—whose ivory is a resource, in his view, because elephants’ fertility suggests it could be harvested sustainably. He reckons trophy-hunting in Africa is worth $200m a year: a potential bonanza for local communities.

But animal-rights organisations like the Born Free Foundation object to hunting on ethical grounds. They argue that many hunters who start with gazelles end up going after predators, often illegally. And the money does not reach the locals: much of what is generated is taken offshore. The debate is bitter. The pro-hunting lobby complains that animal-righters have a lot of money to splash around, and are even writing legislation in several African countries in return for donations to government wildlife services. Hunters say their activities complement tourism: their clients are happy to stay in shabby, dusty places as long as they get their kill. But the bloodthirsty history of big-game hunting in Africa means that hunters still need to show that they have an economic value.