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Title: from Texas_Engineer, posting at The Oil Drum
Source: drumbeat, December 26, 2011
URL Source: http://www.theoildrum.com/node/8766/860272
Published: Dec 26, 2011
Author: texas engineer
Post Date: 2011-12-26 18:29:06 by lead.and.lag
Keywords: None
Views: 1251
Comments: 87

Human beings are not creatures of facts and logic - they are people who live in stories. This is not new - it has always been that way. We have certain collective narratives that almost everyone automatically accept without further thought. It is how we make sense of the world. These narratives keep us sane by allowing us to filter out the hurricane of information swirling around us daily and making some sense of it. The current narrative that most people subscribe to is that economic growth will eventually return or we have plenty of oil but the government is not letting is drill for it.

For that reason I am not convinced that you will ever convince the average citizen (not a technical person) by showing them data. I am a data person and I have tried it with my family and their eyes glaze over.

So I think you can only change people's views is by constantly telling them a different story - one that is consistent with their current experience. It worked pretty well with my family. A story something like this:

If peak oil is a possibility - what would it be like? Well for starters the peak oil story is not about potential oil under the ground. That oil is irrelevant because it cannot be used. Peak oil is only about one thing - the ongoing flow rate of oil into the economy. For all of the last century and up until about 2005 that flow rate grew steadily. But that flow rate pretty much came to a halt in about 2005 and for the last half decade could not grow. And as you would expect the global oil price started to rise. That's what happens when supply cannot keep up with demand. Economists told us not to worry - Mr. Market would immediately react with increased supplies, reducing price - but it did not happen.

The global oil price (Brent Crude) is now consistently above $100 per barrel after staying below $20 for most of the last century. This is what peak oil is like. This is what peak oil was predicted to be like. High energy prices eat away at the economy by pouring sand into the gears of the economy. Every country in the world tried to compensate for this slowdown by increasing debt. The world is now ludicrously broke - with no chance of paying off this debt bubble. This is peak oil - it is not about resources under the ground - it is about oil production rate - and high oil prices. Don't tell me peak oil cannot happen - it is happening.

I have personally found that my family is stumped when I present this story in this way. They don't have an answer. But the story caused a few of them to ask to see some data. Then I showed them the data. Now they are worried and they hate me :-)

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Begin Trace Mode for Comment # 86.

#3. To: all (#0)

That oil is irrelevant because it cannot be used. Peak oil is only about one thing - the ongoing flow rate of oil into the economy. For all of the last century and up until about 2005 that flow rate grew steadily. But that flow rate pretty much came to a halt in about 2005 and for the last half decade could not grow. And as you would expect the global oil price started to rise. That's what happens when supply cannot keep up with demand.

"Peak Oil" is a bs theory used by people with a vested interest to keep oil and gas prices high. Do you recall the so-called "gas shortage" of the early 70's? I do and I remember it well. Long lines of people waiting for gas and actually getting into fights over it. And for what? I told people at the time that it was a scam by the oil companies and when they got the price where they wanted it--which at that time was about one "dollar" a gallon--the gas would flow freely again and you wouldn't hear any more bs about any "shortage." Exactly what happened. There is plenty of oil and gas and lots of it here in the US.

James Deffenbach  posted on  2011-12-26   19:00:42 ET  Reply   Untrace   Trace   Private Reply  


#81. To: James Deffenbach (#3)

My friend, when Mr. Gno it all asks questions like "why were oil prices so low for so long?

what changed?

whatever changed, why did it change?"

you can surprise him with this anecdote:

An oil rich prince made regular visits to his favorite New York bank to accompany his mammoth wealth deposits and to allow his wives to go shopping for personal items to keep the flame of passion burning when each of them overnighted with their husband.

With each visit the prince would direct his bankers and investors to send massive sums into various accounts and investments, and then he'd ask for a bag of silver dollars to take home for his children who loved to play with them.

Then, suddenly and without warning he was told that he could no longer receive silver dollars from the bank or exchange his freshly printed federal reserve frauds ($=Ø) on par for silver.

This prince was from a tribe that had long held a deep mistrust of usurers, particularly those immigrants in the West who were known to be "true to their natures".

Within about 30 months or so after the prince returned home the evening news reported gun play in gas lines as customers with V8s and dual carbs began running out of fuel before reaching the pumps. And OPEC raised the price of oil again and again to reflect the falling value of the "unmunny" used to purchase their wonderful, "light, sweet crude."

The price stability for "most of the twentieth century" was a direct result of the fact that central bankers could not print silver dollars. And the rest is prologue.

The Bretton Woods system that had guaranteed a worldwide demand for dollars and stable oil prices from 1944 until the "shootouts at gas guzzler corral" in 1973 wasn't such a swell deal "for them dam Arabs" anymore. They were swapping a valuable, tangible commodity for a bunch of political hot air, like "The value of our money is based on the strength of our confidence in it and faith in The US Government. (everybody sing, "GOD BLESS AMERICA, LAND THAT I LOVE....")

Nixon's fiat decrees (direct orders from his bosses in the crushed velvet chairs) to take us off the gold standard in 1968 and to never again redeem frauds (Ø) for silver dollars in 1971 is the reason why the price of oil pole vaulted to a dizzying height. After all, oil extracting countries had every right to protect their profit margins, and they couldn't sell THEIR OIL Frog Francs or Kraut Marks or Limey Pounds. (Saddam did that and he was hanged as "an enemy of the world". And rumor has it (if I can get it started) that the US Govt is taking secret bids on gallows construction to include specialized camera mounts and angles for Hugo Chavez for the same crime against the Tikkum Olam people who only want to save the world with their blessed paper munny and digital units)

If oil is an important enough resource for us to bomb nations and depose foreign leaders, then why isn't it nationalized to prevent Big Oil from crippling our entire economy in their quest for obscene profits? Why not guarantee a strong economy and then subsidize big oil like the dairy industry?

Well, BIG MOO is an influential lobby but unlike Big Oil, Dairy's bib overall-clad lobbyists never had enough cheese to buy a majority of congress. And BIG OIL will gouge hard until technology inevitably replaces fossil fuels. It's just a matter of time before someone they dare not assassinate goes on TV and makes the announcement that there's no longer any need to frack people in the butt or drill Mother Earth to death. So, Big Oil's really terrified of the water engine.

And, why would EXXON deny Peak Oil? because the boss of bosses does not want to explain why they aren't frantically leading the research for alternate energy technology (can you picture the commercials at halftime of lab coated eggheads with safety glasses and hard hats pouring over graphs and blue flame-emitting experiments as promised in the 2008 article below?) As you know they're trying to turn the simple technology of separating hydrogen from water into a complicated Rube Goldberg technology that will require our continued and perpetual slavery to fueling stations. Until then "fossil fuels are doing fine, folks."

And last, here's the pinnacle of what my good friend the late Dr. Roy Salls termed, "Methodological Mouthtalk":

Rockefeller vs. ExxonMobil

Peak Oil: A Turning Point for Big Oil

By Chris Nelder

Wednesday, May 7th, 2008

Last Thursday, in my second appearance on Fox Business, Neil Cavuto asked me whether or not I thought it was a good idea to tax the "windfall" profits of Big Oil, and let Congress spend them on alternative energy.

I said no: "The profits that big oil might make at this point I don't think are necessarily off the table in terms of being available to invest in the technologies of energy of the future. I think instead of taxing income and profits, we ought to be looking at ways to incentivize the fuels of the future." ("Methodological Mouthtalk"-puppy)

Who is the "we" he's referring to? As a "self-taught energy expert, energy analyst, journalist and investor" Chris Nelder seems to be speaking for BIG OIL and the peepul. And he SEEMS to be saying that we the people shouldn't tax "windfall profits" and that we the people should guarantee BIG OIL'S future as our first priority, and then out of sheer gratitude for the profits we the people didn't tax, we the oil companies' stockholders will see to it that we the BIG OIL R&D eggheads and we the people's financial analysts will solve the puzzle of how to "incentivize the fuels of the future."

_Continued at link

(COUGH COUGH-bull doody-HD)

_________________________________________________

I laff to keep from crying, folks.

(I)ncentivize (sic) for Big Oil to build a minimum of 20,000 fueling stations and support infrastructure including acquisition of pricey, custom rolling stock for fuel delivery and support, and of course the first ten trillion units of hydrogen fuel delivered will have to repay the investment and make stockholders rich beyond their wildest orgasmic expectations. Needless to say, the new fuel can't be too efficient and the engines that burn it had better require lots of maintenance, and have a life span of no more than 10 years.

"Sleep, baby sleep no danger will linger, we know that BIG OIL won't give us the finger..."

(thanx to Tom Lehrer)

HOUNDDAWG  posted on  2011-12-27   6:25:05 ET  Reply   Untrace   Trace   Private Reply  


#86. To: HOUNDDAWG (#81)

My friend, when Mr. Gno it all asks questions like "why were oil prices so low for so long?

The aforementioned "Gno it all" has a comfy home inside my clown filter. Did you notice I addressed my comment to "all" rather than to the aforementioned scoundrel? Yes, I knew about Nixon and the whys and wherefores of the Arabs increasing, or seemingly increasing, the price of oil. And I knew it was because they could no longer get anything tangible for their oil other than promises backed by faith in a government which had shown them--and those of us who were paying any attention--that their faith in the government, if they had any, was not justified.

I used to know a man who drove a gas tanker for a living but who was also a preacher. We called him Preacher Bill and he was a nice guy and an honest guy. I asked him one day if he thought there was really any shortage of gas or if the oil companies were lying about it to raise prices. He told me that the storage tanks where he filled up his tanker were all full but they were not allowed to haul but a certain amount. My family had a station and at a time when we could have used a couple of loads a week we could only get one. And the reason was to create a "shortage," at least to make people think there was one, so that they could increase the prices and people would be happy to pay higher prices, or at least not go and hang them. My dad used to say that the only shortage there was was in our tanks and that there was no reason for it. What we thought was that the people who ran the oil companies, rather than lying about non-existent shortages, should just raise the price to what they wanted and be done with it. But I guess it suited them more to lie about it.

James Deffenbach  posted on  2011-12-27   10:32:19 ET  Reply   Untrace   Trace   Private Reply  


Replies to Comment # 86.

#87. To: James Deffenbach (#86) (Edited)

My dad used to say that the only shortage there was was in our tanks and that there was no reason for it

assuming for the sake of argument that your dad and preacher bill were right about the shortages being artificial during the oil embargoes...

you got to admit that there's always a good reason for the israeli american propaganda apparatus to vilify arabs and big oil.

since big oil fell into line with the israeli americans, the need to vilify big oil has decreased, but the need to vilify arabs remains. that's why we're bombing arabs and afghans and libyans, and not bombing exxon headquarters in irving, texas.

of course, there would never have been any oil embargoes had the US not been protecting its masters in israel.

israel was a bad idea from the start, and as the destruction and ill will accumulate, israel is becoming a worse idea every day.

lead.and.lag  posted on  2011-12-27 10:42:02 ET  Reply   Untrace   Trace   Private Reply  


End Trace Mode for Comment # 86.

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