Peak Everything

From a conversation with the Claverton Energy Research Group over the leak of a German military study into Peak Oil :-

http://www.spiegel.de/international/germany/0,1518,715138,00.html

“09/01/2010 : ‘Peak Oil’ and the German Government : Military Study Warns of a Potentially Drastic Oil Crisis : By Stefan Schultz…”

Hi Clavertonians,

My view on Peak Oil is that it is the tip of the iceberg – and I know that’s a totally inappropriate metaphor.

The art of petrogeology dictates that right on the heels of Peak Oil is Peak Natural Gas, and there is strong evidence for Peak Coal. In the US for example, I understand there is very little good hard anthracite left.

My position is that – since the “conventional” Fossil Fuels are depleting, there are strong moves towards the “unconventionals”, the shale gas, the deepwater oil, the smoky “half peat”, the Lake Baikal hydrates, the frozen subsea wastes of the Arctic [don't forget the Tar Sands !] and so on. People argue for “stop-gap” energy resources, but they carry with them huge risks not only to the Climate, but also the the Economy with the step-change in EROI/EROEI [Energy Return on Energy Invested - that is - how much energy do you need as input to get energy as output] and the “clean-up” costs.

My take on this is that pretending that Peak Conventionals doesn’t exist leaves a veil in front of most peoples’ minds – they believe in the Power of Technology to supply all their Fossil Fuel needs, now and into the future – it’s just that the actual location and form and dirtiness of these new resources will be different than in the past.

And here’s the rub – we need to encourage people to think about the “alternatives”, or rather, the “solutions”.

The only way forward is Renewable, Sustainable Energy resources, because of Peak Oil, Peak Natural Gas and so on, and if people do not learn about that, they will not understand the privation for most people that will surely come with Peak Conventionals.

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Rethink Fossil Fuels

We all love the inputs, but what about the outputs ?

Fossil Fuels have been providing an easy life and easy pickings for the citizens and enterprises of the industrialised world for some time.

People love their jet-fuelled lives. One man will move one kilometre from his home to a restaurant in two and a half metric tonnes of steel and glass believing he is admired for his larger-than-car-sized car. He will wear sunshades, and oil-slicked hair (if he has any) and sport a tan from his recent holiday over the ocean. A life of glory and feeling good about himself.

But what about the emissions ? What, indeed, about the environmental devastation at the places the Fossil Fuels (and metal and glass) were mined and refined and manufactured ?

What do we leave behind ?

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Come On Over For Lunch

Shock ! Horror ! Major Climate Change Scientist spotted at Climate Camp…ah, but which one… ? How to distinguish one dressed-down, unwashed individual with dishevelled locks from any another ?

Any sign of Climate Change sceptic-denier Andrew Montford, as affectionately known as “Bishop Hill” ? Can’t make him out, but he might have responded to the banner appeal to “Come On Over for Lunch”. You never know. That might be him chopping potatoes, right in the thick of it.

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Climate Change Denial, Everywhere

Here follows an extract of a conversation I have had with members of the Claverton Energy Research Forum, which I have cut-and-paste into a more easy-to-read fashion below the fold :-

http://groups.google.co.uk/group/energy-discussion-group/browse_thread/thread/68f666ff4f69599b/59dfb3351bb432ec?q=abbess&lnk=ol&

http://groups.google.co.uk/group/energy-discussion-group/browse_thread/thread/68f666ff4f69599b/bfec36913d002b91?lnk=gst&q=abbess#bfec36913d002b91

As you can see, there are Climate Change sceptic-deniers everywhere, even in the most knowledgeable and respectable circles.

Countering Climate Change denial from so-called “sceptics” takes a lot of time and energy, and is a bump-in-the-road nuisance/irritation distraction from the main priority for human civilisation, which is how to stop being addicted to Fossil Fuels.

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Judith Curry : Carbon Lockdown

Dr Judith Curry insists, quite correctly, that we should take uncertainties into account when deciding Climate Change policy.

Yet I think our respective positions probably strongly differ on which way we weight the uncertainties.

I strongly favour the Precautionary Principle, implemented Early, making it the “Early Precautionary Principle”.

One of the reasons I come down on this end of the spectrum of possible responses to uncertainties is that there are quite a spectrum of unknowns that form the pillars of those uncertainties.

After all, if we don’t know a term in an equation, how can we possibly calculate anything meaningful with any kind of confidence ?

How can anybody feel safe and secure not knowing for certain what the actual equilibrium Climate Sensitivity amounts to ? The response of the Earth’s Climate system to extra airborne Carbon Dioxide-forced temperature rise is a number that is becoming firmer, but there are error bars. Surely this points to conservatism in emissions ?

Moreover, we could be well advised to cut back on Fossil Fuel burning not just to protect the Climate, but to save the Economy. How can we pursue our normal everyday Carbon-emitting lives not knowing how much Fossil Fuel there is left in the ground that can be inexpensively mined ?

How can we know the order of magnitude of Fossil Fuels left to extract ? And how can we know what kind of impact this will have on the Climate ?

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Unqualified Opinion (1) : Dan Gardner

There are several journalists out there who simply can’t cope with the real risks posed by dangerous Climate Change.

Following a rather reasonable, rational article by Louise Grey, Tom Chivers gave the “loaded dice” metaphor to straighten her up on language :-

http://www.telegraph.co.uk/news/worldnews/asia/pakistan/7937269/Pakistan-floods-Climate-change-experts-say-global-warming-could-be-the-cause.html

“Pakistan floods: Climate change experts say global warming could be the cause : The world weather crisis that is causing floods in Pakistan, wildfires in Russia and landslides in China is evidence that global warming predictions are correct, according to climate change experts. : By Louise Gray, Environment Correspondent : Published: 10 Aug 2010 : Almost 14 million people have been affected by the torrential rains in Pakistan, making it a more serious humanitarian disaster than the South Asian tsunami and recent earthquakes in Kashmir and Haiti combined. The disaster was driven by a ‘supercharged jet stream’ that has also caused floods in China and a prolonged heatwave in Russia. It comes after flash floods in France and Eastern Europe killed more than 30 people over the summer. Experts from the United Nations (UN) and universities around the world said the recent “extreme weather events” prove global warming is already happening. Jean-Pascal van Ypersele, vice-president of the body set up by the UN to monitor global warming, the Intergovernmental Panel on Climate Change (IPCC), said the ‘dramatic’ weather patterns are consistent with changes in the climate caused by mankind. “These are events which reproduce and intensify in a climate disturbed by greenhouse gas pollution,” he said. “Extreme events are one of the ways in which climatic changes become dramatically visible.”…”

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Death by Hot Tub

It’s been a bad month or so for ignominious ends in unusually hot and sticky conditions : drunk Russians drowning as they try to cool off from a once-in-a-thousand-year heatwave centred on Moscow; hundreds of Chinese swept away; a Darwin award surely going to the man who died whilst participating in the World Sauna Championships, thousands of Pakistanis snatched by flood waters, and then there’s poor Matthew Simmons, leader of the Peak Oilers, bursting his aorta in a private spa :-

http://www.telegraph.co.uk/news/worldnews/europe/russia/7891040/Drunk-Russians-drowning-due-to-heat-wave.html

http://www.mirror.co.uk/news/top-stories/2010/08/10/sauna-championships-tragedy-the-weird-and-frankly-lethal-lengths-people-go-just-to-win-a-contest-115875-22476900/

http://blogs.ft.com/energy-source/2010/08/09/controversial-peak-oilist-matthew-simmons-dies/

http://www.bloomberg.com/news/2010-08-09/matthew-simmons-investment-banker-peak-oil-theory-advocate-dies-at-67.html

http://blogs.wsj.com/deals/2010/08/09/without-matt-simmons-has-peak-oil-well-peaked/

“AUGUST 9, 2010 : Without Matt Simmons: Has Peak Oil, Well, Peaked? : By Michael Corkery : Matt Simmons, the maverick investment banker who championed the concept of peak oil, died of a heart attack in a hot tub in Maine. He was 67. Simmons is best known for raising the alarm, in books, in lectures, television interviews and to anyone who would listen, that the world’s oil reserves had peaked. The concept of “peak oil” wasn’t new when Simmons wrote Twilight in the Desert: The Coming Saudi Oil Shock and the World Economy, in 2005. In fact, peak oil was first posited by a geophysicist named M. King Hubbert in the 1950s who predicted that world oil supply would peak in 1995. But Simmons helped to being the theory to the mass media, after traveling to Saudi Arabia in 2003 to research that nation’s secretive data on oil reserves, or the amount of oil able to be pumped out of the ground. His book became an instant classic among conspiracy theorists…”

Hey ! Don’t disrespect the dead ! He made a very valid contribution to the world’s understanding that the Fossil Fuel free ride won’t last forever, and is, in fact, stopping short as I write…

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“Kill Kill Kill This”

http://www.youtube.com/watch?v=TINzvWrtjYI

http://www.youtube.com/watch?v=lyutuErxPo8

Carol Browner, Director of the White House Office of Energy and Climate Change Policy in the United States of America, has been all over the Media, announcing the policy to “kill kill kill this” BP nightmare story, telling the world that a turning milestone point has been reached :-

http://www.noaanews.noaa.gov/stories2010/PDFs/OilBudget_description_%2083final.pdf

Have they decided that BP have been punished enough now for the Gulf of Mexico oil gusher, and the reputation of the company needs to be rehabilitated sharply in order to protect the Economy ?

I made the mistake of taking in a BBC TV news bulletin on the matter. I heard several talking heads say it’s “good news” that roughly three quarters of the accountable oil from the spill has “disappeared” :-

http://www.bbc.co.uk/news/world-us-canada-10870159

Breaking this story is “good news” for the stability of pension funds, maybe. But what is the real extent of the real damage to the real world, the world of oceans and fish and plankton ? Will the world be watching as the researchers scavenge data and clues to the marine ecotastrophe that is still unfolding ?

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Natural Gaza (3)

Video Credit : PressTV : January 2009

Timeline in the last week :-

1. Something happens to provoke some persons as yet unidentified in Gaza.
2. Some persons as yet unidentified may or may not have fired a Grad missile from the Gaza Strip towards the Israeli town of Sderot.
3. The Israeli Defense Force act “in retaliation” and bomb three locations in Gaza, killing at least one person and wounding eight.
4. Some persons as yet unidentified may or may not have fired a Qassam rocket from the Gaza Strip towards Ashkelon.

You may be forgiven for thinking this is all about simple tactical weaponry exchange, embedded cultural or religious hatred, or revenge attacks.

But you’d be wrong.

This escalation in violence is merely part of what looks very strongly like an ongoing strategy to keep Gaza from economic development, by preventing them from exploiting their largest natural resource – offshore sub-marine Natural Gas.

I am going to give you my first attempt at some history on this matter. I make any and every apology if I have got something wrong. Please correct me by comments below the post.

I have not even started to attempt to address the hypocrisy of the United Kingdom and the United States of America effectively giving weapons to Israel via a system of direct and indirect aid. All that is brilliantly covered by Robert Fisk, so I don’t need to :-

http://www.independent.co.uk/opinion/commentators/fisk/robert-fisk-israel-has-crept-into-the-eu-without-anyone-noticing-2040066.html

Gaza is being locked down under a “resource curse” – the Gazans are being forcefully detained in an open air concentration camp with scant resources, when all the time, just off-shore are enough hydrocarbons to make them all very wealthy. Many Gazans are succumbing to starvation of the body and mind, and many are unwell and have to endure appalling deprivation.

I should expect that the “final solution”, whatever that will be, will be announced by Israel in the next few years, unless the international community wakes up to the obvious risks that Gaza faces, and does something decisive about it.

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They Shall Beat Their Destroyers Into Marine Turbines

OK, so it’s a ham paraphrase on a Biblical quotation, but as the world loses its appetite for big military assault (particularly for no discernible just reason), we could see more weapons manufacturers turn their metal-working skills over to the production of Renewable Energy :-

http://www.guardian.co.uk/environment/2010/jul/25/bae-green-energy-project

“BAE to assist green energy project : Britain’s biggest arms manufacturer will contribute its marine engineering expertise to a wave-power project off Orkney : Terry Macalister, guardian.co.uk, Sunday 25 July 2010″

Isaiah 2:4 (New International Version) : “He will judge between the nations and will settle disputes for many peoples. They will beat their swords into plowshares and their spears into pruning hooks. Nation will not take up sword against nation, nor will they train for war anymore.”

The great energy revival could contribute to world peace, after the fading of a Century of competition and conflict over Fossil Fuel resources.

BP Tony Hayward’s Marching Orders

Did he jump, or was he swamped ?

And is he really leaving, or is he being hounded out by propaganda ?

The reports of his demise may be premature, but the clock is probably ticking on his tenure anyway.

You know as soon as the board of a company, or a central government expresses “full support” for an executive or a minister, their job is at risk.

At least BP didn’t have to invent a scandal about his private life to get shot of him, like the (I think, despicable) way they ousted John Browne, the “sun king”.

http://www.bbc.co.uk/news/business-10753573

“25 July 2010 : BP chief Tony Hayward ‘negotiating exit deal’ : Mr Hayward has been with the company for 28 years BP’s chief executive Tony Hayward has been negotiating the terms of his exit, with a formal announcement likely within 24 hours, the BBC has learned. Mr Hayward has been widely criticised over the Gulf of Mexico oil spill. An official statement issued by BP in response said he had the “full support of the board and senior management”. BBC business editor Robert Peston says Mr Hayward is likely to be replaced by his American colleague, Bob Dudley, who is in charge of the clean-up operation…”

Is Bob Dudley a fan of solar and wind power ? Only asking…

And will a change of figurehead on the prow stop the BP vessel sinking ?

Australia’s Non-Green Stimulus

Back in the heady, long-gone days of 2009, The Oil Drum web log hosted a discussion about Australia being highly vulnerable to oil shortages :-

http://www.theoildrum.com/node/5477

“Aleklett: Australia highly vulnerable to oil shortages : June 11, 2009 : ASPO International president, Professor Kjell Aleklett of the Global Energy Systems group at Uppsala University has been in Australia over the past week, presenting lectures in Adelaide and Sydney on peak oil…warned that Australia will be one of the first countries hit hard by oil shortages as oil production peaks within the next three years. Kjell Aleklett, a physicist from Uppsala University in Sweden, says Australia’s relatively underdeveloped public transport system leaves the country more vulnerable to a downturn in energy production. “Australia is very sensitive to such developments,” Professor Aleklett told the Herald. “Much of your industry and transit is dependent on oil, and supplies will decline.” Professor Aleklett addressed the NSW [New South Wales] electric car task force and the Federal Government’s Bureau of Infrastructure, Transport and Regional Economics yesterday…”

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The Plan for Iran

With extra economic sanctions imposed against Iran, and a rise in diplomatically expressed disapproval, recent political engagement from the international community is beginning to take on a decidedly sabre-rattling flavour.

The United States of America, and its allies and press-ganged collaborators, may not wage an actual military assault on Iran, but they may be staging another kind of rout – with the aim of securing Fossil Fuel energy supplies for the industrialised West.

Iran’s “public face” people have still not learned that the Western media are prone to pursuing irritating, provocative lines of enquiry, in order to elicit a scandalous response, in order to back up the “axis of evil” view of the world.

The responses given in the interview at the top of this post show how Iran walks into the trap so easily. Iran cannot correct world opinion, regardless of the logic they use, when world opinion on Iran is so blatantly manipulated by those who manage the Western media.

But there’s more going on here than just media corruption and the demonisation of Iran.

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The Rehabilitation of BP : Solar Shares

Here’s a plan to save BP CEO Tony Hayward’s job.

Why not bring in a special new executive at BP’s London Headquarters, maybe ex-CEO of BP, Lord John Browne of Madingley, who was rather green, really, or that other Anthony, the ex-Prime Minister Tony Blair, and make them responsible for expanding an entirely new share offering in Solar Power.

Investors would be encouraged to explicitly finance new solar projects around the world by buying “solar shares” in the company, who make a priority of environmental matters, as we all know.

The British Government could offer extensive tax breaks, declining to tax revenues from solar electricity in the same way that BPs’ Oil and Gas sales are tapped for a percentage slice to help the public purse.

And there you could have it, bish bash bosh.

And while you’re at it, rename the company “Beautiful Photonenergy”.

The world could forget about the Gulf of Mexico plumes and seepages and we could all, together, forge a clean, smooth new Low Carbon, Low Dirt world.

Iranian Seismic Subsea Surprise

Image Credit : Google Maps. Point A shows the location of the Natural Gas discovery announced 5th July 2010. Point B shows the point at which the yacht “The Kingdom of Bahrain” was seized by Iranian Authorities in late November 2009

Iran has been playing a game of gentle brinkmanship with the major military powers over its nuclear ambitions for the last few years. Its civilian nuclear ambitions, that is.

The United Nations Security Council imposed a new bag of sanctions against Iran in June, and since then various Iranian aircraft have been refused refuelling by that paragon of commercial virtue BP, amongst other things :-

http://www.guardian.co.uk/world/2010/jun/09/iran-sanctions-united-nations-nuclear

http://www.telegraph.co.uk/finance/newsbysector/epic/bpdot/7873654/BP-stops-refuelling-Iranian-passenger-planes.html

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The Worst Is Yet To Come

The Transnational Institute are carrying a story warning of further oil industry nightmare scenarios :-

http://www.tni.org/article/bp-style-extreme-energy-nightmares-come-four-scenarios-next-energy-mega-disaster

“BP-Style Extreme Energy Nightmares to Come: Four Scenarios for the Next Energy Mega-Disaster…Michael Klare : The Huffington Post : July 2010 : The BP Gulf oil spill is not an anomaly but the result of industry-wide recklessness, as companies employ more and more risky methods to reach inaccessible reserves as the conventional ones run dry. On June 15th, in their testimony before the House Energy and Commerce Committee, the chief executives of America’s leading oil companies argued that BP’s Deepwater Horizon disaster in the Gulf of Mexico was an aberration – something that would not have occurred with proper corporate oversight and will not happen again once proper safeguards are put in place. This is fallacious, if not an outright lie. The Deep Horizon explosion was the inevitable result of a relentless effort to extract oil from ever deeper and more hazardous locations. In fact, as long as the industry continues its relentless, reckless pursuit of “extreme energy” – oil, natural gas, coal, and uranium obtained from geologically, environmentally, and politically unsafe areas – more such calamities are destined to occur…Until then, prepare yourselves. The disaster in the Gulf is no anomaly. It’s an arrow pointing toward future nightmares. [ Michael Klare is a professor of Peace and World Security Studies at Hampshire University, a renowned analyst on oil politics and US defence policy and was TNI's first Phd graduate when TNI used to run an academic programme through a virtual US university. ]”

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BP North Africa Mystery

Reflection Eternal “Ballad of the Black Gold” from Sam Ellison on Vimeo.

“…Democratic senators from New York and New Jersey are now calling on BP to suspend drilling operations in Libya’s Gulf of Sidra until an investigation can be completed into whether the company pushed for the release of a convicted terrorist in order to seal a major oil deal. Robert Menendez (D-NJ) decried the release last August of Lockerbie bomber Abdelbaset al-Megrahi a “moral outrage” at a press conference on Wednesday. Megrahi is the only person who has been convicted of the Pan Am Flight 103 bombing that killed 270 people in 1988. BP has admitted that it lobbied for a prisoner exchange—they have just not said which prisoners. Now Menendez and three other senators have called on the State Department and the British government to investigate precisely what role BP may have played in negotiating his release, as the company has since admitted that they pushed for a prisoner transfer to help ensure the $900 million oil deal went through. In recent weeks, one of the doctors who gave the dire prognosis for Megrahi that led to his release from a Scottish prison has come forward to say that the Libyan government paid him to make that determination. He now says Megrahi may live for another 10 years, and there are rumors that he has secured a book deal. “If BP is found to have gained access to Libyan oil reserves by using a mass murderer as a bargaining chip, then make no mistake, any money it makes off that oil is blood money,” said Menendez…”

http://motherjones.com/mojo/2010/07/senators-want-bp-halt-libya-drilling

http://www.grinzo.com/energy/index.php/2010/07/14/did-bp-aid-a-terrorist/

James Delingpole Has Kittens

Poor, dear James Delingpole has been passing kitten-sized anxieties and angry thoughts again; fear and accusations all completely unfounded :-

http://blogs.telegraph.co.uk/news/jamesdelingpole/100046150/how-come-we-now-have-to-go-to-the-chinese-for-the-truth-about-global-warming/

A number of indignant inaccuracies and strident claims I will pass over, but here are a few I think I shall contest. Just to show that I do bother to read his work (even if I smirk about it most of the time).

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Fiat Lux, Fiat Solar

Video Credit : Journeyman Pictures

Big green energy news of the month : President Barack Obama of the United States of America has announced direct investment into solar :-

http://climateprogress.org/2010/07/04/obama-solar-pv-csp/

http://www.guardian.co.uk/business/2010/jul/04/obama-hands-solar-firms-2bn

Let there be light in the soul, and solar energy in the land.

This looks like a tipping point. Let’s flip some more trip switches in our personal networks and get the oil-producing bloc in the Middle East to see the value of going wind and solar (instead of expensive, risky Nuclear) :-

http://www.arabianbusiness.com/591358-qatar-awaits-new-solar-wind-tech-before-investment

http://www.uaeinteract.com

http://www.gizmag.com/shams-1-concentrated-solar-power-plant/15389/picture/116110/

“The largest concentrated solar power (CSP) plant in the Middle East is to be built in Madinat Zayed, approximately 120 km (75 miles) southwest of Abu Dhabi in the United Arab Emirates (UAE). When it becomes operational in 2012, the plant, dubbed Shams 1, will feature some 6,300,000 square-feet of solar parabolic collectors, cover 741 acres of desert and will produce enough electricity to power 62,000 households.”

What ? That soon ?

What We Have Here Is A Failure To Regulate

Video Credit : Gasland the Movie

The ever-vigilant and fair Rowena Mason at the Daily Telegraph dives deep into the Shale Gas (Gas Shale) story with a piece featuring a trailer for the new Gasland film :-

http://blogs.telegraph.co.uk/finance/rowenamason/100006602/shale-gas-pollution-fears-leave-americans-with-another-energy-headache/

“Shale gas pollution fears leave Americans with another energy headache : By Rowena Mason Energy Last updated: June 23rd, 2010 : Still politically scorched from BP’s giant Gulf of Mexico spill, it couldn’t be a worse time for America’s oil giants to find themselves roasting in another environmental firestorm. But new flames of controversy are on the horizon – in fact, literally emanating from the drinking water of US citizens living near so-called “shale gas” fields. A controversial documentary, Gaslands, which was aired on television channel HBO this week, shows one Colorado homeowner bending over his tap, holding a lighter with outstretched arm and igniting his chemical-laden water…”

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Obama : Tough on Grime

Image Credit : McClatchy

Tough on grime; tough on the causes of grime.

American President Barack Obama declares that as regards environmental pollution, “we shall fight them on the beaches”.

http://www.whitehouse.gov/the-press-office/remarks-president-nation-bp-oil-spill

“Already, this oil spill is the worst environmental disaster America has ever faced. And unlike an earthquake or a hurricane, it’s not a single event that does its damage in a matter of minutes or days. The millions of gallons of oil that have spilled into the Gulf of Mexico are more like an epidemic, one that we will be fighting for months and even years.”

“But make no mistake: We will fight this spill with everything we’ve got for as long as it takes. We will make BP pay for the damage their company has caused. And we will do whatever’s necessary to help the Gulf Coast and its people recover from this tragedy.”

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BP : Too Big To Fail ?

Phew ! That’s a relief ! The American President Barack Obama has personally spoken to British Prime Minister David Cameron apparently to reassure him he meant no harm to the reputation of Britain by blaming BP for the Gulf of Mexico oil spill :-

http://www.guardian.co.uk/environment/2010/jun/13/gulf-oil-spill

I should hope not ! BP stopped being “British” Petroleum some time ago. Forty percent of BP’s business is in the United States :-

http://www.guardian.co.uk/commentisfree/cifamerica/2010/jun/10/us-bloodlust-bp-oil-spill

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BP : Oily Hands On The Arts

PLEASE IGNORE ADVERTISEMENT AT START OF VIDEO

The Gulf of Mexico just now is no oil painting, and it’s costing BP in share price and reputation.

Just how much do BP care about Nature, about life, about humanity ? The answer can be found, perhaps, in their liberal sponsorship of the Arts :-

http://www.britishmuseum.org

Criticised by some as a blatant attempt to court public favour and tacit acceptance, BP have continued to financially support the Tate Britain gallery :-

http://www.bp.com/sectiongenericarticle.do?categoryId=9026067&contentId=7048078

It is a statement of the most culturally sensitive kind. Yet, the key question in my mind is : will they be able to continue to afford this, what with their excessive liabilities in the Gulf of Mexico ?

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Bringing Perspective

Bringing Perspective

Is BP plc a Sustainable Business ?

An assessment of BP plc’s performance in relation to their climate change impact, and their approach towards ensuring both environmental sustainability and corporate survival.

by Jo Abbess
29 April 2010

INTRODUCTION

The Research Question

This piece of research seeks to assess how BP plc is making adaptations in its corporate strategy, in view of the risks to its operations posed by Climate Change policy, and in the context of Peak Oil production and the subsequent inevitable Peak in Natural Gas.

Theories and Propositions

The author of this research has the view that over the course of the next 50 years, due to limits on supplies of good quality fossil fuels, and to avoid the risks of dangerous climate change from global warming, the world economy must de-carbonise, and entirely replace its sources of energy and fuel with low carbon alternatives.

According to this projection, any company that wishes to remain in business should begin their process of total decarbonisation immediately, and will be expected to show evidence for their intentions and procedures for change. This is likely to be particularly difficult for Oil and Gas companies, as their core business is based on energy and fuel resources that must be entirely replaced.

The 50 year timeframe may be beyond the thinking of most political analysts, but is relevant to pension funds, annuity providers and insurance companies. Investors are likely to become more interested in determining the carbon “liabilities” of fossil fuel stocks and shares, and take a risk-averse approach to future stakes in Oil, Gas, Coal and other high carbon fuels.

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The Price of Carbon

The Price of Carbon

by Jo Abbess
20 April 2010

1.   Introduction

Policy strategy for controlling risky excess atmospheric greenhouse gas (Gowdy, 2008, Sect. 4; McKibben, 2007, Ch. 1, pp. 19-20; Solomon et al., 2009; Tickell, 2008, Ch. 6, pp. 205-208) mostly derives from the notion that carbon dioxide emissions should be charged for, in order to prevent future emissions; similar to treatment for environmental pollutants (Giddens, 2009, Ch. 6, pp. 149-155; Gore, 2009, Ch. 15 “The True Cost of Carbon”; Pigou, 1932; Tickell, 2008, Ch.4, Box 4.1, pp. 112-116). Underscoring this idea is the evidence that fines, taxes and fees modify behaviour, reigning in the marginal social cost of “externalities” through financial disincentive (Baumol, 1972; Sandmo, 2009; Tol, 2008). However this approach may not enable the high-value, long-term investment required for decarbonisation, which needs adjustments to the economy at scale (CAT, 2010; Hepburn and Stern, 2008, pp. 39-40, Sect. (ii) “The Consequences of Non-marginality”; MacKay, 2008, Ch. 19; Tickell, 2008, Ch. 2, pp. 40-41). Read the rest of this entry »