Is the U.S. Awash in Decades Worth of Cheap, Abundant Natural Gas and Oil?
We are about to be deluged with news reports that the U.S. is suddenly awash in decades worth of cheap, abundant supplies of natural gas and oil. Why? Because the U.S. Energy Information Administration (EIA) has recently released a preview of their 2014 forecasts in which they predict energy trends within the U.S. through 2040.
The EIA (the official statistical gurus of the U.S. Department of Energy) release a similar report each year—and these are eagerly awaited by energy wonks like myself and breathlessly reported upon by any journalist who loves to read an “official government report” and parrot it as if it were news.
The problem is—these projections are without fail wrong.
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If you look back over previous EIA forecasts, they are remarkable in one respect. Their projections are historically well off the mark. Perhaps even more remarkable is that the media each year report these projections as if they were handed down from Mount Sinai.
So what does the EIA predict is in store for us now?
2014 EIA Forecast Highlights
The 2014 forecast predicts that"
"Growing domestic production of natural gas and crude oil continues to reshape the U.S. energy economy, with crude oil production approaching the historical high achieved in 1970 of 9.6 million barrels per day."
U.S. natural gas production, according to the EIA, will grow 56 percent over the projected period (through 2040). Good news for the oil and natural gas industry.
But what about U.S. energy consumption? Here are the projections (in percent of total consumed):
The predictions show that largely things will remain as they are. It seems that EIA officials have a fairly easy task. Simply look at the data from the past two years, and say that these trends will continue for the next 30 years or so. This is a pattern seen in each annual report.
But, unfortunately for these statisticians, while things are happening over here—other things are happening over there. Imagine in 1975 trying to predict the anticipated sales of typewriters for the next 30 years. Imagine back in 1910 trying to project the sales of horse buggies until 1940. Even the best analysis of historic data is not going to change the fact that the underlying technologies are dramatically changing.
The people creating these reports seem blind to the mega-trends that are reshaping the world's energy landscape. And some of their projections simply boggle the mind. How, for example, can they project that nuclear energy output will remain the same for the next 30 years when a nuclear power plant has a life expectancy of 40 years, no new power plants have been built in the US since 1979 (35 years), – and no new power plants are likely to be built during the next 30 years.
So how well has this forecasting process has worked in the past. As an illustration—let's examine what the EIA Annual Energy Outlook 2006 predicted would happen over the coming several decades...
2006 EIA Energy Forecast
"the average world crude oil price continues to rise through 2006 and then declines to $46.90 per barrel in 2014 as new supplies enter the market. It will then rise slowly to $54.08 per barrel in 2025."
In the two years following this EIA projection, the price of crude oil rose to $140 per barrel ... the most dramatic increase in history. Nary a word about this coming upheaval in the forecast. Crude oil prices did then in fact decline. They are now at $94.80 per barrel (as of January 21, 2014).
And what about domestic crude oil production? Well, the EIA predicted it would grow slightly, then fall off fairly dramatically. In 2004, the US was producing 5.42 million barrels of crude oil per day. The 2006 report noted production would increase to 5.84 million barrels per day in 2015, then fall off.
The latest figures reported (2012) indicate domestic oil production was in fact 6.48 million barrels per day. EIA now projects production will rise to 9.4 billion barrels per day. The question is—were they wrong then, or wrong now?
"improvements in expected mine productivity … leads to a gradual decline in the average mine mouth coal price, to approximately $20.00 per ton in 2021.” EIA also predicted that U.S. coal production would increase and that coal would continue to dominate electrical production in the US for decades to come.
In 2006, the average mine mouth price of U.S. coal was $25.16 per short ton. By 2013 the average mine mouth price had risen to around $60 per short ton, 300% of the projection. Domestic coal production declined, rather than increased as predicted.
With the exception of renewable energy, no industry sector has been more volatile in recent years than natural gas. For years the price had hovered at between $4.50 to $5.50 per thousand cubic feet (mcf). The EIA projected more of the same. EIA predicted that prices would be relatively stable, within this historic range until 2030. Domestic production would increase a bit—from 18.52 trillion cubic feet per year in 2003 to about 20.44 trillion cubic feet in 2015.
They were once again, very very wrong. Prices spiked almost as soon as the ink dried on the 2006 report (to more than $14 per mcf in 2008), then plummeted, to under $2 per mcf in 2012. The term fracking entered our vocabulary and domestic production spiked to nearly 30 trillion cubic feet in 2012.
The EIA now projects that natural gas production will continue to grow dramatically for the next 25 years. But has this industry really transformed itself so dramatically in just eight years? Again, were they wrong then or wrong now?
But it seems that nowhere does the EIA have a harder time getting a fix on things than within the renewable energy industry. Today they grudgingly admit that renewables will play a role in the future. In fact, they have even gone so far as to predict (in their 2013 report) that “The share of U.S. electricity generation from renewable energy grows from 13 percent in 2011 to 16 percent in 2040”
In fact the share of U.S. electricity generated from renewables actually was 16 percent (15.9 percent, but let's not quibble) within 12 months of this projection, not 27 years. Clearly they had not learned from their 2006 projection when they announced that “Total renewable generation … is expected to grow 1.7 percent per year.”
They predicted that electricity generated from non hydro renewables (primarily wind, solar and biofuels) “increases by 95 percent, from 2.2 percent of total generation in 2004 to 4.3 percent in 2030.” By 2013, however, non hydro renewable had already grown to provide about 7.5 percent of all US electrical generation—and were growing faster than any other energy segment.
In the weeks and months to come, we will be barraged with news reports quoting the soon-to-be released 2014 EIA report. These will be reported as pristine facts, backed by the full faith and credit of the US government.
We will be told that the U.S. possesses nearly unlimited and inexpensive natural gas reserves.
We will be told that the U.S. will produce so much domestic oil that we soon may, once again, become an exporter of energy.
We will be told that shipments of coal will soon be heading in great barges to fuel the growth of China.
We will be told, over and over, that “the Sun doesn't always shine and the wind doesn't always blow,” so renewables can and will play only an insignificant role in our energy future.
And once again—these predictions will be very very wrong.
Visit EcoWatch’s ENERGY page for more related news on this topic.
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Putin's Daughter Among Vaccinated<p>The Russian leader also said that one of his daughters has already been inoculated and is feeling well.</p><p>"One of my daughters got vaccinated, so in this sense, she took part in the testing," Putin said.</p><p>After the first vaccine shot, his daughter experienced a slight fever, 38 degrees Celsius (100.4°F). Her temperature came down to just slightly above normal the next day. </p><p>"After the second shot, she had a slight fever again, and then everything was fine. She is feeling well and has a high antibody count," Putin said. </p><p>He didn't specify which of his two daughters, Maria or Katerina, received the vaccine.</p><p>Russian health authorities have said that medical workers, teachers and other risk groups will be the first to receive shots of the vaccine.</p>
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By Arkilaus Kladit
My name is Arkilaus Kladit. I'm from the Knasaimos-Tehit tribe in South Sorong Regency, West Papua Province, Indonesia. For decades my tribe has been fighting to protect our forests from outsiders who want to log it or clear it for palm oil. For my people, the forest is our mother and our best friend. Everything we need to survive comes from the forest: food, medicines, building materials, and there are many sacred sites in the forest.
Map of the Knasaimos traditional lands.
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Overthinkers are people who are buried in their own obsessive thoughts. Imagine being in a large maze where each turn leads into an even deeper and knottier tangle of catastrophic, distressing events — that is what it feels like to them when they think about the issues that confront them.
Ruminating<p>According to the late Susan Nolen-Hoeksema, a professor of psychology at Yale University, <a href="https://www.ncbi.nlm.nih.gov/pmc/articles/PMC5796420/" target="_blank">ruminating</a> involves replaying a problem over and over in your mind. We ruminate by obsessing over our thoughts and thinking repetitively about various aspects of a past situation.</p><p>It usually involves regret, self-loathing and self-blaming. Rumination is associated with the development of depression, anxiety and eating disorders. </p><p>People prone to such patterns of thought may, for example, overanalyze every single detail of a relationship that breaks up. They often blame themselves for what has happened and are overcome with regret, with typical thoughts being: </p><p>- I should have been more patient and more supportive. </p><p>- I have lost the most perfect partner ever. </p><p>- No one will love me again.</p>
Worrying<p>Worrying is wanting to predict the future. It involves negative thoughts about things that might and might not happen.</p><p>- They'll not like me in the interview; they'll not give me the job. </p><p>- I haven't heard back from other employers. How long will I be unemployed?</p><p>These thoughts are energy-draining and distressing. They could happen to anyone under stress. But when you reach the point where your thoughts and worrying are preventing you from doing what you want to do — from living your life to the fullest — then you should take action.</p>
Catch Yourself Overthinking<p>Reuben Berger, a psychotherapist at the university hospital in the western German city of Bonn, recommends several practical steps that you could employ in your daily routine when you catch yourself worrying or ruminating.</p><p>One effective remedy, says Berger, is the <a href="https://www.uofmhealth.org/health-library/uf9938" target="_blank">thought-stopping technique.</a></p><p>"When the negative thoughts come or ruminations start, you say to yourself: 'Stop!,'" he says, adding that it is more effective when you actually say the word out loud.</p><p>He even recommends having a rubber band around your wrist to ping against yourself while saying the word. Adding a visual component by imagining a stop sign also makes the technique more powerful, he says.</p><p>The main idea here is conditioning yourself to stop the loop of worrying (making future predictions) or rumination (obsessing over past events).</p><p>Berger says the technique could take up to two weeks to take effect and that it needs to be practiced every day. "Consistency is very important," he says. </p>
Thoughts Are Just Thoughts<p>Another way of dealing with negative thoughts often used in modern therapy is realizing that thoughts aren't facts, says Berger.</p><p>He says it is important when we think something to ask: Is that real? Did that really happen? What is the worst thing that could happen?</p><p>Flight anxiety is one example where untrue thoughts are accepted as facts. Although air travel is the safest way to get around, people suffering from fear of flying accept their thoughts and fears as reality, then act upon them by refusing to fly.</p>
Mindfulness<p>Berger also recommends the use of mindfulness techniques, in which attention is paid to experiences in the moment without judging them, as a way of reducing worrying.</p><p>"Mindfulness helps you to distance yourself from your thoughts and to be more present in the moment," he says.</p><p><a href="https://www.ncbi.nlm.nih.gov/pmc/articles/PMC3432145/#R2" target="_blank">Several studies</a> have shown that mindfulness has a positive impact on reducing stress-related behaviors such as rumination and worrying, as focusing on the moment makes anxiety about other problems impossible.</p><p>Mindfulness can be practiced during routine activities by paying attention to your body and your surroundings. For instance, when you leave for work in the morning, you can focus on sensing the breeze, listen attentively to birds, feel the gravel under your feet and monitor your breath. </p>
Trick Your Brain Into Happiness<p>People plagued by obsessive thoughts do not always choose healthy ways like mindfulness to distract from them, however.</p><p> Dr. Edward Selby, a psychologist at Florida state university, has shown in a study that people try to avoid rumination by engaging in a range of uncontrolled behaviors, such as binge eating and substance abuse.</p><p>But he says that a much better way to overcome such distress is by distraction and shifting attention away from problems that are obsessing us.</p><p>There are many activities that can be used to distract from rumination, he says, and people should choose the one that works best for them. Here are some examples:</p><p>- Listen to music</p><p>- Read a book</p><p>- Take a hot shower</p><p>- Dance or exercise </p><p>- Talk to a friend (not about the problem)</p><p>- Watch a movie</p><p>- Mindfulness meditation</p>
Changing the Perception of Events<p>The way people perceive a situation largely influences their emotions and behavior. It is not the situation itself that determines how they feel, but rather the way they interpret it.</p><p>Reframing negative thoughts can lead to positive emotions and, subsequently, healthier behaviors — including a reduction in damaging overthinking and worrying.</p><p>Cognitive behavioral therapy (CBT) is currently a gold standard in psychotherapy. CBT aims to change the way people think and act. It largely involves challenging unhelpful beliefs or attitudes such as overgeneralization — thinking "I always fail at public speaking" when you have had one bad experience in front of an audience, for example — or "catastrophization," i.e., imagining the worst possible outcome to a situation. </p><p>A psychotherapist can teach people how to implement such thought-changing techniques into their lives. Techniques vary depending on their issues and goals.</p>
Solutions Are at Hand<p>Try to find ways of avoiding worrying, rumination and overthinking that make you feel most comfortable.</p><p>Incorporating any routine in your life when you're stressed isn't an easy task, but you can do it! If you feel overwhelmed, you can always seek professional help. </p><p><em>If you are suffering from serious emotional strain or suicidal thoughts, do not hesitate to seek professional help. You can find information on where to find such help, no matter where you live in the world, <a href="https://www.befrienders.org/" target="_blank">at this website.</a></em></p>
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