Comments on: The First Signs of “Peak Gas”?

By: A to Z Energy ETF » Blog Archive » DrumBeat: June 7, 2008

A to Z Energy ETF » Blog Archive » DrumBeat: June 7, 2008 — Mon, 09 Jun 2008 05:21:55 +0000

[...] The First Signs of “Peak Gas”? Consumers the world over are beginning to protest at the huge gasoline prices they are paying at the pump. But whilst the world goes crazy over the oil prices, there are worrying signs about what is happening in the gas market that could also spell disaster. [...]

By: Blorf

Blorf — Sat, 07 Jun 2008 22:45:17 +0000

Your figures are wrong. From the IEA supply and demand charts you link to:

1Q 2008 demand: 86.6 mb/d
1Q 2008 supply: 87.2 mb/d

By: Karen

Karen — Sat, 07 Jun 2008 11:07:50 +0000

Peak oil, peak gas - at the end of the day it will be the ordinary consumer trying to make a living and raise a family who will suffer most. I learned about peak oil in school (Australia) in 1971. What have our world governments been doing for the past four decades? Hang your heads in shame all of you for your collective neglect of the world’s peoples. And you have called yourselves leaders? I think not.

By: Another Anonymous

Another Anonymous — Sat, 07 Jun 2008 10:56:53 +0000

Agree with anonymous, where is the discussion of peak gas?
This is a much more serious issue for North America then peak oil. We grow much of our food and heat 75% of our homes and businesses with natural gas. Some scores of new gas fueled power plants are being built at the tune of 8 trillion CCF per day. We have little alternative. The liquification of NG gives us LNG and allows it to be transported across oceans, but it uses 35% of the energy content to cool it to -235 degrees F. while changing the BTU content of the end product.
Once it is re-gasified at our ports(only 4 exist and they represent a whole host of other problems) the gas must be carefully mixed in with existing natural gas so as to not throw off the BTU content per cubic foot. (1050 normally)
We are already seeing issues with many furnaces overheating, they all need to be adjusted down to handle the existing incoming pressures and BTU content, any upscaling to more LNG use will push us into wide spread service failure mode of many heating systems.
Look at your NG bill, while your usage compared to last year may not have increased much your cost sure has. In 2008 alone the cost on the mercantile exchange has gone from about 8 dollars to 12 dollars, (per Mcf ..?..)
Are there issues with peak gas? Some say so, The CIA world fact book (search online you’ll find it) says the the world has about 60 years of NG left but if you do the math for North America comparing proven reserves versus consumption, one gets only 9 years for North America. And those numbers have not been updated in several years, but that is what I consider a good source. Given that numbers are often overstated and that it does not factor in Canada’s oil sands project or all the new US NG powerplants I would say the it is a conservative estimate. Folks peak gas is a real serious issue. If you live North of the Mason Dixon line consider an alternative source for heating your house and consider planting a victory garden, rediscover how to can and pickle and brine if you care about your family and your community, don’t panic, we can survive, and maybe even come out of this with stronger more caring communities, don’t panic and buy guns, instead buy shovels and seeds and wood stoves (or electric heating systems). Good Luck to all

By: Anonymous

Anonymous — Sat, 07 Jun 2008 08:21:00 +0000

Gee, if your title is “Peak Gas”, discuss peak gas! A sentence is not enough.

By: Joe

Joe — Sat, 07 Jun 2008 06:05:13 +0000

It seems to me that there is a thin line separating what we term “investment” from “speculation.” So far, I see a lot of calls for controlling speculation but no definitions of what “speculation” really is. Without a clear definition, which would also help decide whether it was good, bad, or neutral to the business cycle, there is no point in attacking this activity.

My own understanding is that one of the differences between speculation and investments is the time factor: speculators are merely short-term investors. How short term - there is no absolute rule since all investments differ.

In the wild west there were oil, gold, and even water speculators. They were simply investors with shorter time horizons than today’s pension fund investors. What if someone buys shares of a new company to hold for the long term, feeling certain its growth will be positive in the long run, but soon discovers a lot of competitors entering the industry. What if they heard that one of the company’s patents got rejected? And what if the investor changed his mind and quickly sold his stock holdings in the company? Was he a speculator or an investor?

In my opinion if we conclude that a speculator is no more than a type of investor, then we should quickly forget trying to regulate “speculation.” For without investments, and investor/speculators, the flow of funds, knowledge, and resources could dry up and everyone loses.

Joe

By: The First Signs of “Peak Gas”? | Mining Exploration Investment News

The First Signs of “Peak Gas”? | Mining Exploration Investment News — Sat, 07 Jun 2008 03:44:29 +0000

[...] The bottom line is that demand is now outstripping supply, giving credence to the peak oil pundits that the days of cheap oil over, and the global economy could be heading for a nasty shock. This article taken from rinf.com [...]