As oil and gas exports surge, West Texas becomes the world’s “extraction colony”
texastribune.org
texastribune.org
It’s interesting to see this in the Texas Tribune.
From time to time I have reason to drive through or fly over (I know, hypocrite) West Texas, and passing through the oil fields one can literally watch the world burn. It’s unreal.
Edit: Just a note on the people in the energy industry. They’re good people on balance. I might have come across as incidentally disparaging people in the energy industry. I have many friends and family of friends that have spent their entire career in the industry. It’s like Silicon Valley and tech’s problems. NYC and the financial crisis. Economic and financial incentives supported by cultural norms. In Silicon Valley the confidence that technology will improve our future means sometimes it is developed without pause for impact. In Texas a strong Christian ethos encourages a certain view of “stewardship” of the earth that does not mesh well with the constantly evolving culture of environmentalism. But as people they’re good people.
Watching humans take an entire mountain down rock-by-rock is a humbling experience.
The tar sands come to mind. The entire forest above the sands is literally scraped off the face of the earth, the sands removed, the oil removed from the sands, and then everything aside from the oil is left behind in huge swaths of desolate waste.
Lee Foote, a University of Alberta wetlands ecologist who has worked with the tar sands industry and advised the Alberta government on wetland reclamation policies, agrees that reclamation has so far been done more for public show than to create viable ecosystems.
“The mindset is to throw big dollars at engineering designer wetlands that are green but not nearly as functional as what was there in the past,” says Foote. “The main aim is to get the social license that is needed for these companies to continue operating.”
-- https://e360.yale.edu/features/on_ravaged_tar_sands_lands_bi...
One county in my state even bothers with monitoring, enforcement. Not a single issued citation (fine) was ever collected (during the study period).
Maddening.
I think mining is a necessity to exploit all natural resource opportunities, very similar to how I would view solar and wind installations being built in "nice" areas like off the coast of Massachusetts.
https://www.bloomberg.com/news/articles/2018-11-30/germany-c...
I'm not looking for an answer to this question, as I don't own any coal mines or coal power plants. Just expressing general dissatisfaction with humanity's destructive-but-convenient habits.
Yes, but not for electricity. There isn't a way to make steel at any scale without using coking coal in the furnaces.
At least for Germany (as mentioned by GP), that business will not be around for much longer. Steel from China and India simply is too cheap compared with domestic production. Probably once these two countries get too expensive production will shift over to Africa...
Here's a 2013 article about making steel without coal: https://www.scientificamerican.com/article/cleaner-cheaper-w...
And something from 2018: https://www.technologyreview.com/s/611961/this-mit-spinout-c...
Not proven at scale yet, but it appears to be more promising than many other unsolved climate problems.
Also, natural gas is already being used at scale to make steel, not a complete replacement of coal, but a big reduction.
I've never understood the argument that since [bad thing] happens, [more bad things] are justified. But judge, since nature kills humans all the time you can't possibly charge me with murder...
Also, I'm sure you can make find some negatives in the lithium / PV / wind industries which are so vehemently pushed forward around here.
Changing the argument to the damage caused by lithium mines is just a distraction. My argument isn't against coal, it's against unnecessary evils. It would take a mighty strong mind to honestly argue that solar and wind power is more evil than coal.
I'm going to bow out of this argument now as I'm not actually looking to have my opinion changed to a more pro-coal stance in 2018.
Aren’t humans a part of that nature? Isn’t that what makes us destructive?
Maybe my point is not clear. I’m trying to say that even if we have a choice (or an illusion of it), our nature (and nature itself) has and will drive us to do destructive things.
I’m not suggesting we give up all hope, but it is important to recognize that the beauty of an everlasting mountain is definitely a concept invented by man.
Not permanent. They can be reclaimed, but that usually doesn't happen for many years until after the end of life for the mine.
https://www.nbcnews.com/business/energy/fracking-boom-waste-...
The entire area smells like a diesel truck stop.
Natural gas is so plentiful that spot prices at the West Texas hub turned negative last month. In general they're trading at about half the Louisiana hub.
>One option for Permian operators with too much gas is to light it on fire, a practice known as flaring. Flaring levels reached record highs in the Permian last quarter, when companies burned an average of 407 million cubic feet a day, according to analysis of public data compiled by Rystad Energy, an energy consulting firm.
>The resulting greenhouse-gas emissions are equivalent to the daily exhaust emitted by about 2.7 million cars, according to estimates from the World Bank and Environmental Protection Agency.
>Texas has thus far allowed companies to flare freely. As of the end of November, state regulators hadn't denied a single permit request in more than five years, records show. But flaring isn’t always an option. Companies might not have the needed equipment set up in areas affected by pipeline outages. They also might have to pay landowners royalty payments for the gas they burn. And flaring gas on the spot means drillers miss out on more valuable products that come out of the ground with it, such as ethane, propane and butane, which are often processed out later.
You know, it sounds scary, but there are more than 1 billion cars in the world[1], so it's a bit of a drop in the bucket. Still a shame to be so wasteful though.
1. https://www.wardsauto.com/news-analysis/world-vehicle-popula...
What is worse than burning off fuel / wasting the energy and releasing the carbon? Releasing the methane directly which has a GHG effect 15-35 times worse than C02.
Oh, so you are going to legislate that all of the gas is captured, transported and moved to market and then used in all instances? Now your legislation just got SUPER expensive and SUPER complicated. And/or a bunch of rigs would just not be built, given that in so many instances gases are co-existing with the liquid which is the target resource.
Realistically, legislating a carbon tax and a removal of direct and indirect subsidies would not just be significantly cheaper, but also much more simple and way more politically palatable. (but as we can see, still very difficult and non-trivial).
Yeah, that's a feature not a bug. Carbon-taxing the methane flaring would be a decent compromise to start with though, but I'm not sure whether it would be pricey enough to make a difference and (as you point out) it's quite easy to evade when flaring gas at the point of production.
It's also a strangely non-joined-up market when one set of people are performing fracking specifically to get at the gas and another set of people are flaring it as a worthless byproduct. Perhaps there should be a moratorium on gas exploration until it's not worthless?
(A key point to remember in exploration: just because it's there doesn't mean it has to be extracted now. Obviously the individual firm is going to want to do it immediately, but for the planet as a whole or even the individual extracting country the priority is not the same)
I'm ok with American extraction because I think it's preferable to the two other options I see: 1. keep giving mountains of money to horrific regimes like Saudi Arabia and Russia or 2. halt the global economy until renewables are to scale.
https://en.m.wikipedia.org/wiki/Petroleum_refining_in_the_Un...
Here’s some background: https://www.houstonchronicle.com/business/energy/article/Ref...
Ubtil 2016, it was illegal to export American crude. So the idea that West Texas Intermediate Crude is being exported because refineries can’t handle it is false, unless we are talking about the past two years: in 2014, where did all of that crude go? It was being refined.
As the US is a net petroleum exporter, the idea that “blood oil” is a significant part of the American fuel supply is false. Canada exports dramatically more oil to the US than Saudi Arabia. The main reason that West Texas Intermediate trades at a discount wasn’t because of refining capacity, but because of the lack of pipelines to move the stuff.
this is the hypocrisy that gets me. christian stewardship should be at the forefront of environmentalism, culture wars be damned, not being dragged along gnawing and gnashing.
edit: hypocisy infects all of us, but christian hypocrisy really burns. rather than stiving for betterment while tolerating imperfection, as jesus taught, the general pretense is to cast a blind eye to all kinds of moral failings while acting as if everything is rosy. it's like sitting on a high horse covered in poop.
There’s no room for stewardship in any real sense. It’s cash in before it gets shut down.
> ...stiving for betterment while tolerating imperfection, as jesus taught...
And on a particular point, Jesus never taught that in those words. It might be a fair inference and application, but "how would Jesus vote" is a tricky argument to make. Especially considering that the U.S. has a representative democracy and not a direct democracy. Would Jesus vote for candidate A who favors a carbon tax and opposes ICE? Or candidate B who opposes late term abortion and wants better support for adoptive parents?
Well, that might be the options in the Democrat primary, but what about the Republican positions?
i grew up in both the evangelical and catholic traditions. there were some great people, but the hypocrisy of the many was unbearable.
On TV here comes another car commercial. The disconnect is amazing. This shit needs to stop TODAY, if there's to be any hope of stopping or even slowing the catastrophe already in motion. But "good people" are not getting it. Certain other people work overtime to make sure they don't get it. And of course cutting them in on the spoils (a.k.a. "issuing them a paycheck") raises their mental barriers against getting it. Insert Upton Sinclair quote here.... "It is difficult to get a man to understand bla bla bla."
The minute good people realize they're screwing over other good people, they might actually find it unpalatable to do the work (or buy the product). Either that or they're not such good people. But they don't always have a choice, right? At least that's what good people say who want to absolve good people. Gotta pay the rent, right? Well that's what my landlord says anyway. Gotta keep driving to work to pay the rent, right? Well that's what 80% of Houstonians and 85% of Detroiters say... but 70% of Portlanders agree too. (Everybody's a liberal as long as it doesn't mean getting off your ass.) Maybe people just naturally exploit and screw each other to profit themselves, and all morality is just an idealistic and optimistic overlay. Maybe people in general just aren't that "good." Maybe it'll be better after a bunch of us die the hell off. I need a drink.
Most of my friends are in their late 20s/early 30s though, so maybe that makes a difference. I could see older folks who grew up when oil was king maybe being opposed to solar/wind. But even then, now that I think about it, one of my friend's grandparents (who are from West Texas) were very thankful for the wind industry and the money it brought to their town (it got brought up because we made a remark about how there seemed to be endless wind turbines in every direction on the drive through W Texas to visit them).
I just browsed through a few polls and based on them, it seems you must be really unlucky to encounter so many people unwilling to discuss renewables. According to these polls [1][2][3][4], 80%+ of Texans support renewable/clean energy.
I'd be interested to hear more about what types of conversations you try to have and who (age range, industry) you interact with when you find these people. It surprises me that this has been your experience, especially in Austin of all places.
1: https://www.citizen.org/may-11-texas-poll-shows-citizens-wan...
2: https://www.wsj.com/articles/which-state-is-a-big-renewable-...
3: https://www.texastribune.org/2016/05/04/survey-texans-suppor...
4: https://www.nytimes.com/2017/06/06/climate/renewable-energy-...
Not sure what point I’m trying to make here, just adding more context. Reality is that while many Texans may answer a survey asking if we should move away from fossil fuel dependence in a positive way, for most conservatives in the state I’d be surprised if it was anywhere near their chief concern when voting and would likely actively vote against it if the platform they are voting for meets their primary concerns. Thankfully, their chief concern is usually money/economy and Texas is a state that can be that can be very effective at migrating to energy alternatives in an economically beneficial way thanks to 300+ days of sunlight a year in most regions and large flat windy expanse from central Texas to Big Bend and up the padhandle.
Would just add that there is another level of complexity here. While fracking and the shale revolution do present a huge environmental problem, it’s advancement in the last 5-10 years does provide the US an extremely valuable foreign policy tool in removing the necessity of energy reliance on the Middle East whenever we want. I hope the state continues to move forward with renewables but fossil fuels, specifically in the Permian basin, is here to stay for a long time even if the state goes 100% renewable. It’s now a national security and economic priority in an age when American/Middle East relations are waning and American retrenchment from traditional allies is increasing.
Beauty is in the eye of the beholder though. I remember people complaining about 2 massive cooling towers in the centre of Sheffield being torn down.
I'd be interested in what wind turbines say to you that lead you to call them ugly.
It depends on the density. Once they clutter everything visible below 100 ft, it's pretty hard to see beauty: https://www.pentaxforums.com/forums/12-post-your-photos/2128...
I did a google image search for that location and the other images didn't seem so bad (to me).
Is the uglyness an inherent feature of the scale. Or a feature of poor design?
Some appear to have white nacelles and black towers.
I volunteered at Audubon for years. Love both birds and windmills.
For instance, only 4% of global oil output is used in plastics. The vast majority is used in transportation and heating. Plastics, unlike transportation fuels, can also be recycled.
It's not oil or no oil. It's putting in place the systems and policies to responsibly end our reliance on oil and coal before we cause even more damage to our climate.
IPCC made a report on what that would entail stating basically that even with an overnight abolishment it cannot be reached. But that if we assume it feasible to use afforestation and other techniques to extract CO2 from the atmosphere in the future we might have chance to reach that target for 2100 given we stop using fossil fuels by 2030.
Given the scale of the transition necessary, overnight or 11-years is more or less the same time frame
Edit: Great TED-talk on the scale of what’s needed https://youtu.be/E0W1ZZYIV8o
First, that attitude makes you, your family, and your friends more susceptible to propaganda from pro-fossil fuel interests. You're more apt to believe crazy stuff like we'd have to stop using plastic or that nuclear would have to also go away. You're more apt to doubt the science behind climate change. You're more apt to be mislead on the economics or feasibility of renewables.
Second, that attitude makes you think we're not in a rush, so we can afford to wait until things are figured out more. It makes you think that we have to figure out storage for wind and solar and airplanes, even though we don't have to worry about that until we reach much higher levels of penetration than we currently have (and we're already making good progress nonetheless). It makes you think that we'd fall into chaos if we use less natural gas and oil, even though it's going to be a gradual transition and will be replaced with equal or better alternatives.
Unfortunately, because of previous neutral attitudes like yours, we're now in a goddamn race for our lives as the nightmares of climate change are starting to happen (how many Americans died in Puerto Rico? California's wildfires? etc.). Nature doesn't give a fuck. It's too late to be neutral anymore.
So from one Texas energy worker to another, I beg you to stop being neutral. Unlike most other people, you actually have domain expertise to have a substantial impact fighting climate change. Remaining neutral when you work in energy is just making everyone else's lives worse.
can pretty much expect something completely biased coming, but will wait and see.
> "being neutral about fossil fuels is just as bad as being pro fossil fuels"
Yup, here is you sure are about to spout off nothing but propaganda now.
> "nuclear would have to also go away"
liberals hate nuclear. In fact one of the primary purposes of the Simpsons was to raise awareness (propaganda) about how bad nuclear is.
> "we're now in a goddamn race for our lives as the nightmares of climate "
no we are not. 8.2 feet by the end of 2100 is it? the end of the ice age saw sea levels rise almost a thousand feet. Australia use to be connected to Papua New Guinea. its not ideal, but its not a race for our lives nightmare. I have pretty bad nightmares. The vast majority of all human beings will have died of old age by then. Open google maps, look outside your city limits. Earth is alive. This is not ideal, but saying things like race for our lives nightmare only makes it hard to take you seriously.
> "how many Americans died in Puerto Rico? California's wildfires?"
California has ALWAYS HAD WILDFIRES. Red Wood trees have EVOLVED to only be able to reproduce with them - so they kinda probably happened. a lot. In fact, the west is so dry, its the only place on the planet cactus evolved. its that dry. it always has been that dry.
> "It's too late to be neutral anymore."
Again alarmest attitude. but not surprised coming from someone who's job depends upon it.
> "Unlike most other people, you actually have domain expertise"
Then maybe you should respect that they have opinions founded in fact, instead of assuming they must be crazy-brainwashed for not believing what you believe.
Do you refuse to fly if you are "against fossil fuels"? What makes you against fossil fuels vs being neutral if you have a stance where you believe externalities should be taxed but that outright bans are too destructive?
I consider pro carbon-tax to be a neutral position. I consider "anti fossil fuels" a position of wanting to ban it regardless of externalities being priced in.
>First, that attitude makes you, your family, and your friends more susceptible to propaganda from pro-fossil fuel interests.
No, being incapable of critical thought makes you susceptible to propaganda.
> Do you refuse to fly if you are "against fossil fuels"?
This is a false equivalence. Being an fossil consumer is very very different from directly working in the fossil industry. Consumers will use whatever is most convenient or available. It's up to the industry to come up with feasible alternatives, and air travel will be some of the last fossil usage to transition. You picked the hardest end of the scale to setup a straw man. Why not ask "Do you ask your utility if there's a 100% clean energy option?" That's on the lower end of the energy transition difficulty curve for consumers, but it's still not relevant to the argument I was making (working in the old energy industry).
> What makes you against fossil fuels vs being neutral if you have a stance where you believe externalities should be taxed but that outright bans are too destructive? I consider pro carbon-tax to be a neutral position. I consider "anti fossil fuels" a position of wanting to ban it regardless of externalities being priced in.
It seems you and I have wildly different opinions about what constitutes neutral vs anti, and I worry that your definition is mostly informed by pro-fossil interests. Anti-fossil people aren't zealots or a cult. I'm only anti-fossil because of the reason you stated for being neutral: externalities are not being priced in. If they were, I wouldn't be anti-fossil.
Millions of other workers in clean energy and climate science have the same attitude as me. We're only in this fight because fossil fuels are killing people, so we're stepping up to help stop that. If fossil fuels weren't so destructive (e.g. carbon taxes offset the damages), we could all go do something else.
> No, being incapable of critical thought makes you susceptible to propaganda.
I seems like this is another argument assuming anti-fossil people are zealots incapable of critical thought. Having a position on a topic does not mean you have stopped thinking critically. Often, it means you have already thought critically and have decided on your opinion, and that you simply haven't come across a convincing enough argument to move you away from your current position.
I'm anti-fossil because I've reached the conclusion that fossil fuels are becoming more and more destructive for society, so we should make strides to curtail their usage. There's totally a chance that something could come along to alter my conclusion, but it hasn't happened yet.
This resonates with me. I was an activist for ~10 years (for a different issue). Me and every activist I met stepped up because of the need (vs innate interest). Personally, I would have rather been doing pretty much anything else.
Thank you for stepping up.
Because the status quo is that fossil fuels are allowed without the externalities being taxed. A position that moves towards less fossil fuel use is anti-fossil fuel, although less so than one that desires an outright ban.
Anecdotal weather-related disasters aren't an argument for climate change, let alone hydrocarbon-based energy generation having a negative net effect on humanity.
Graph: https://www.ipcc.ch/site/assets/uploads/sites/2/2018/10/SPM3...
Report: https://www.ipcc.ch/sr15/
News: https://www.nytimes.com/2018/10/07/climate/ipcc-climate-repo...
This is the carbon emission reduction curve we have to hit if we want to hit our Paris Agreement targets. That's a pretty steep drop off if you ask me, and certainly falls into the category of a "race for your lives".
Do you disagree? Please provide sources that we aren't in such a rush to curtail fossil emissions (because there's mountains of science saying we are).
> It gives you the appearance of a paranoid alarmist.
How can I be paranoid if the science backs me up? However, I do think being an alarmist is appropriate for the situation. If that graph isn't a mash-the-big-red-button moment, I don't know what would be.
But, you may say, a lot of people will die from climate change. (And a lot definitely die from pollution.) A lot die from malaria, too, but we don't have a "race for our lives" on that one. Cynically, most people don't consider a bunch of other people dying as a "race for our lives".
(We did more or less have a "race for our lives" on AIDS, though. It seems that we start to care when it's hitting closer to home, and we think that it could be us. That's the problem with your argument. You haven't shown people enough evidence that they think it will be them dying, so they don't think it's "a race for our lives".)
Going above Paris gets into the "there be dragons" realm of human survival. The Pentagon is predicting mass migrations, wars, famine, and economic implosion[1]. I feel like that certainly constitutes "race for our lives" level of rhetoric.
Usually, when someone balks at strong rhetoric on climate change they are (1) unaware of the scale and severity of the problem or (2) don't see those affected as within their "our" definition (e.g. it will happen to other people, not my people). The former is slowly being solved through increased education and awareness, the later will likely always be present due to human tribalism and racism.
As far as the malaria theory, it's a very different strategy when you are actively causing the problem you are trying to solve. It's as if we are repeatedly shooting ourselves in the foot, then some of us say we should stop, then you say why are you so focused on the foot-shooting vs cancer killing us. One is an immediately addressable problem caused by ourselves, one is a natural threat that is not under our direct and immediate control (thus takes much longer to understand and solve).
[1]: https://www.nytimes.com/2014/10/14/us/pentagon-says-global-w...
If it's a thousand (or maybe even a million), we're already there just with air pollution. Forget CO2, particulates are already that level of catastrophe.
For just CO2 or global warming, there are projections (or, less charitably, guesses) about how much CO2 will lead to how much warming, which will lead to how many deaths. Pick your level of what constitutes a catastrophe to you, and then pick which projections you find most believable. For actual answers rather than projections, we'll have to wait until after it happens (at which point it's a bit late to try to do anything about it).
But my point was, there's different levels that are "catastrophic", depending on your definition of catastrophe. There is no one answer to the question.
Knufen minimized diafygi's position (acting extreme, paranoid alarmist). So now I want to know what Knufen considers worth his/her concern.
But if you insist on getting Knufen's definition of catastrophe, you should also get diafygi's, since diafygi posted the claim that we're arguing about in this sub-thread.
how many Americans died in Puerto Rico?
A couple of orders of magnitude fewer than in Galveston in 1900.The existence of category 4/5 hurricanes in 1900 can't really be used to deny global warming if that's what you're after.
I am not pro or anti gas, oil, or wind. The primary difference is that wind is linked to the grid. Its not a package available for export. Oil and gas are chemically stable (roughly speaking, non-degrading) liquids that can be transferred anywhere. This makes fossil fuels ideal for export where wind is not, but damn there is a lot of investment in wind energy generation.
As an additional matter of perspective I live very close to one of the largest oil refineries in the world, which is really close to one of the largest petroleum export harbors in the world. I am currently living in Kuwait. I really don't see anything here that would classify as a petroleum culture.
Of course we won't.
We will run out of oil that is worth extracting, because the cost to extract the next unit will exceed the value provided.
> people are only able to consume it at a measurable declining pace
The pace of global oil consumption has been increasing for a long time, other than a brief period of decline in the late 1970s to early 1980s.
> I bet demand will almost completely fall off long before we get anywhere close to running out.
Over the long term, consumption is going up as are real prices (though the price trend is noisier than consumption.) There's not really consistent with demand declining at all, much ledd heading to the point of completely falling off.
Instead, it shows demand increasing faster than supply.
* https://www.weforum.org/agenda/2015/07/the-surprising-declin...
* http://www.energytrendsinsider.com/2014/07/10/world-sets-new...
I'm guessing you added this to avoid inevitable flames.
I don't think its hypocritical though. We all live in a world where fossil fuels are dominant. Its reasonable to fight to lower emissions while still emitting yourself (within reason).
If you make it so that only the whitest of the white says anything, no one will.
First, all the fracking in Texas is fueled by cheap interest rates and private equity. The industry as a whole is losing money -- to the tune of $600 billion since 2007. And when investors (I'm looking at you pension funds) finally realize that there is no path to making these companies profitable, especially when the decline rate on their wells is 70% in the first year, they will stop pouring money in. A lot of companies will vanish when this happens.
Second, the media loves to play up the notion of "energy independence" and headlines of the United States producing more than Russia/Saudi Arabia, but neglects to understand the differentials in crude quality. The US (especially Texas) is producing light oil, which increasingly is not wanted in the industry. The refineries in the US have consumed all they can and are increasingly in need of heavier oil to mix with, hence why you see the US exporting our oil and importing oil from Saudi Arabia and elsewhere. When exports have been maxed out and foreign buyers slow their purchases these companies will have nowhere to send their oil and will need to slow drilling.
As for the crude quality, this seems like an ideal synergy with heavy oil sourced from the Alberta tar sands, and yet another good reason for constructing the Kinder-Morgan pipeline to make importing it cheaper and more environmentally friendly. People will probably jump all over me for saying that - but the alternative is not leaving it in the ground, the alternative is Diesel powered trains, which are just riskier, costlier, and worse for the environment. This is one of the few (only?) Obama-era decisions that Trump has rolled back where I actually think he did the right thing.
The Canadian situation is unfortunate. Collectively, it represents so much lost revenue for them. Setting aside the environmental issues and inefficiencies with shipping by rail and truck, companies are having to sell their oil at a steep discount to what they could otherwise be getting.
I find that highly improbable. They would have run out of cash long ago. Or if they were super-rich from money earned elsewhere, then they would be smart enough to not throw it away like that.
Another key point you neglect is that the efficiency of fracking keeps improving, so it can turn a profit at ever lower prices.
https://www.nytimes.com/2018/09/01/opinion/the-next-financia...
http://ieefa.org/ieefa-u-s-more-red-flags-on-fracking-focuse...
The technology improvements (namely horizontal drilling) have just allowed the companies to suck more oil out faster. It hasn't changed the economics of it. Particularly because you're dealing with an expendable resource and to move on to the next well requires further capital investment.
Here is a great (recent) podcast that discusses exactly what I'm talking about:
https://www.bloomberg.com/news/audio/2018-12-13/bethany-mcle...
Many did run out of cash in the last downturn. Those that survived did so by
a) external funding (that can dry up quickly) - debt and equity offerings b) high-grading their drilling inventory, only drilling the very best locations, boasting efficiency-improvements (and collecting more money) c) real technical improvements that are far from enough to be cash-flow positive long term
The efficiency is not improving as much as they make you think. It even declines when they stop drilling their best wells. They reduced their costs substantially in the downturn because they gobbled up fire-sale equiqment from bankrupt competitors, squeezed service margins etc.
All that will be gone at some point. Interest rates rise. Best wells will be drilled. Acres in the permian are damn expensive now. Service companies need to raise prices.
The 70%yoy decline rates are absolutely terrible. They will keep growing a few years, but after that they will have to drill so damn much in worse spots than now, that many will crash down quickly. Losing 70% of producing assets every year is just terrible and puts you to the full market forces. There is pretty much no way to stop drilling because that would decimate your company by 5-6% every month. So drill baby, drill!
I'm not sure if I get where you are coming from. Why not electric powered trains? (and in the near future electric cars, etc.)
But even if you solve that, it's not going to be as efficient or safe as a pipeline.
A similar problem exist with the petroleum economy vs climate change.
And a third case is that the residents near the oil filed bear the burden while the benefits, both huge and trivial, are gained by individuals far away.
Each of which would be addressed if the distribution of power were different.
In e.g. Italy, where the taxation is especially heavy when oil prices halved gasoline went down 30% at best.
As flawed as it is, give me democracy.
A third, preferable alternative is that wolfs and lambs alike get to decide over their own bodies and their own affairs.
Lambs exercising their 2nd Amendment rights?
Then they wouldn’t have a say.
Then they can run themselves. That's sort of the concept of a Democracy.
America is far from a democracy considering only the wealthy are able to actually run as candidates.
Most political races don't have many more voters than the average class president election. And a lot of those positions have a lot of power.
Wouldn't a simpler explanation be that the more popular choice won i.e. overall, the people of the city decided that the benefits outweighed the harm? And as more evidence of harm is accumulated, I'm sure their views on regulation will change. But I think it's unhealthy to imply that when "our side" loses, then the results are not legitimate, but when "our side" wins, only then is it "democracy in action", "will of the people" etc
West Texas oil is making US more secure and access to cheap energy will not only make things better in Texas, but Mexico is going build on this supply of NG.
West Texas is extraction colony, for America. The rest of the world is buying because it is sweet as hell and produced in most stable region on the planet.
I’n not on a side on this issue.
However it’s also obvious that running for office isn’t free and that often elections are decided on the basis of who can buy the most publicity.
A random person standing against petrochemical interests is clearly at a massive disadvantage.
The central complaint almost seems to be that it's getting exported, rather than getting used domestically.
And as a non American I'm struggling to understand the lack of environmental opposition. Is the article biased, or does environmentalism not exist in Texas?
Finally speaking as someone from the UK. This is scary. Theres been an ongoing battle over fracking, with the first well drilled this year. Hopefully we have better standards in place.
[1] https://media.treehugger.com/assets/images/2011/10/mercury-e...
[2] http://scorecard.goodguide.com/env-releases/state.tcl?fips_s...
Texas is a single state with 4 times the land mass of the entire UK. Do the people Glasgow stop what they are doing, take vacation time and go to protest a new Tesco building over a historical site in London? Likewise people in Houston have little reason and large costs to fight something happening 500 miles away. Nor do they have anything to say about or vote to cast in (almost) any elections that would have (directly) altered policy in the area, which is again, 500 miles(800km) away.
I don't know the ideology of the newspaper, I don't know the local politics. Which is why I asked the question.
No offense was intended.
Once a whole nation state depends on extraction, they usually lose other forms of economic activity. This is usually called "Dutch Disease" for historical reasons. But what happens when a small region within a country becomes entirely dependent on resource extraction?
Unfortunately, West Texas doesn’t have a permanent fund for its residents' current and future oil-industry-driven needs and to even out the boom-bust cycle. Midland and Odessa are cities that only became cities once oil was discovered out there in the 20s. Before, they were little towns. So there wasn’t a ton of economic activity out there before oil - just a railroad interchange, mostly for shipping cattle, I think.
I remember seeing a half-built skyscraper in Midland while visiting relatives there in the late 90s, a leftover of the 80s bust that drove the S&L crisis.
Weep over the rainforests. Weep over the wetlands. Heck, you can even weep over the drained swamps. But, spare your tears for West Texas... there is NOTHING you could do to that terrain or ecosystem that wouldn't be an improvement over the wasteland that it now is.
Once the number of LNG liquefaction plants in North America more than doubles, NG will be worth collecting for export to markets that pay more than domestic buyers.
https://en.wikipedia.org/wiki/List_of_LNG_terminals#North_Am...
The oil market is much more globalized than NG.
There's wind power, which has been doing well and probably will continue to.
And there's agriculture on irrigated land, which isn't a new thing but never went away. The US is the world's top exporter of cotton, Texas produces more cotton than any other state, and West Texas is the center of that production. (See https://en.wikipedia.org/wiki/Cotton_production_in_the_Unite... and http://cotton.tamu.edu/funfacts.html .)
You’re making up an argument I didn’t make.
That's not even mentioning that we are only one valid solid-state battery breakthrough from making large vehicles electric too.
Increasing American exports hurts countries that depend on energy exports. America can manage both with and without exports, but other countries can not.
The next step in my mind is increasing non-oil American energy and exporting even more oil, this would further destabilize those oil-dependent countries (most of whom are not friends of the US).
[1] https://www.reuters.com/article/us-cuba-economy/reality-bite...
Imagine a scenario where the US pumps more oil than we can use - prices would crash (until enough non-profitable production shuts down). Instead we sell the oil, and prices remain higher.
They don't go extra high mind you, it's more of a stabilizing influence, keeping prices inline with global prices instead of being extra low in the US, because obviously on a global scale more oil pumped by the US means lower prices (since there's more oil), and oil production is shut down in other parts of the world.
Of course that would be foolish, they need to import things in return. Similarly, the US is benefiting from importing goods that are cheaper than they otherwise would be, because it's exporting more oil and lowering the market price.
If there were free energy there people would start energy intensive industry, over time enough demand would go up enough to balance out supply.
That's basically what happens in Iceland with alumunium, or Canada with Hydro-Quebec. You can check out their economies to see real-world examples.
How is that any relevant on how Quebec doesn't want to have pipelines?
Then why are gasoline prices nearly 9% lower than they were last year this time? [1] That's 9% directly into American's pocketbooks.
The glut I'm speaking of is the one in the world markets.
If US producers have a bigger market, they will produce more oil, which results in, well, more oil.
More oil produced from the US will require less oil produced from elsewhere to balance (in the world markets), or there will be a glut.
This should make the world marginally better for human rights and marginally worse for climate change.
Disclaimer: I'm just some programmer who reads the web too much.
Contrast this with a classical democracy, where the support base is the general population, and the treasury is made possible by the increased productivity of an educated populace who have access to infrastructure that supports their economic activity. In that instance, it is, broadly speaking, the health of the populace that feeds the health of the state.
I bring this contrast up at this time for two reasons. First, in the present case of an extraction colony existing inside a U.S. state, we can find a coherent theory of the difference between Republican/Conservative policies, such as states rights, authoritarianism, veneration of the mythology of the (by definition unempowered) individual, and left policies (I leave out Democrats, our centrist party): The former policies are tailored to preserve capital concentrations, favor extractive economic activity, curb controls on pollution, and suppress unions, all with the all-too-easy resort to violence (or it's equivalent, the all-too-common occurrence of looking the other way). The latter policies, from the left, are the opposite, intended to protect the (in fact) powerless and to broaden economic benefit, often through redistribution. Republicanism in this country, allied with business, exists in order to set up and protect banana republics at the state level.
Second, we can point to other trends that are worrying in the U.S. For example, infrastructure decay should be seen as a lagging indicator of the economic vitality of a democratic nation; if the benefit of infrastructure accrues indirectly to the ruling class through the productivity of the working classes, then it (infrastructure) will be maintained. After that benefit has gone away (say after manufacturing, technology, and information jobs have moved overseas) the infrastructure can be allowed to decay, as other economic systems arise to extract what's left. Unfortunately, what's left is the remaining savings of the working classes. Think ad revenue for eyeballs, opaque healthcare markets and lack of medical accountability to generate and capitalize on health calamity, cornered apartment markets to extract rent, isolated extraction economies like Dakota shale and the Permian basin, farmland, and so on. No longer relevant to the productivity of a nation, the citizen becomes, at best, a resource; at worst, a burden.
Anyhow, for the reasons above, I find the presence of these extractive economies inside the U.S. worrying, more so if they are increasing. The dynamics of power, namely wealth extraction in order to pay supporters, do not bode well if it really has come to this.
I'm trying to apply this reasoning to a different place (Los Angeles), but it doesn't seem to fit. Trucks, owned by the ruling class (i.e. shareholders of trucking companies) depend directly on those roads to make money. But the infrastructure is decaying anyway.
The mid-20th century was a bizarre anomaly brought on by a number of non-repeatable factors, most notably WW2, the arms race, and Jim Crow, where we accidentally had broad-based economic growth that included a (almost totally white portion of the) working class. For centuries before that, the entire economic purpose of America was to be a literal extraction colony.
The infrastructure needed to run the wealth pumps (for example, the pipelines needed to pump crude from the Permian to the Gulf, or the West Coast ports needed to import Chinese-made dollar store tchotchkes) will not decay, but things like public transit, water treatment, and midcentury highway tunnels will probably get worse, at least outside elite enclaves like New York and San Francisco.