Showing posts with label Energy. Show all posts
Showing posts with label Energy. Show all posts

16 May 2013

Norman Pagett and Josephine Smit : Grain of Truth

Image from UCL.
Grain of truth:
Our precarious food supply
Global food production has been allowed to fall into the hands of fewer and fewer megacorporations, and their aims are simple: to deliver short-term profits and ultimately to control the entire system of world supply.
By Norman Pagett and Josephine Smit / End of More / May 16, 2013
“A hungry world is a dangerous world. Without food, people have only three options: they riot, they emigrate or they die.” -- Josette Sheeran, World Food Programme
We owe our lives to technology that uses 10 calories of energy in the process of growing food to produce a single calorie of energy in the food we eat.

On average, we need to consume about 2,500 calories a day, so each of us has to find 10 times that amount of energy in order to stay alive. Our existence rests on that fundamental equation. Looked at it in cold print, this might seem irrelevant to our day-to-day lives but it means that global agricultural production and food supply systems are consuming 10 times more energy than they deliver as food.

Few of us ever stop to consider the embodied energy in what we eat. Why would we? Calories have become purely the currency of dietary fads, something to be limited in our constant battle with obesity. We have been well fed for so long that we imagine that supermarket shelves will always be amply stocked to support our affluent comfort. Until now, in the developed world at least, the food production, distribution and supply infrastructure has been able to obtain all the energy it needs, and in ever increasing amounts.

We are far more prosperous than the third world countries that are constantly being brought to the brink of food deprivation or outright starvation. Yet we are only marginally safer. We have a blind faith in our supply systems and expect our food stores to have everything we might want to buy available fresh every day. Remove the certainty of our seven-day-a-week food supplies and supermarkets would be stripped bare within hours.

Our food supply is extremely precarious; it takes very little disturbance to disrupt it severely. During an oil delivery tanker drivers’ strike in the UK in 2001, the government was given the stark warning by a consortium of major retailers that the food chain delivery system carried only three days’ supply. This information was not released to the public at the time.

The fuel supply emergency lasted only a week, but if it had gone on for longer rapidly emptying supermarket shelves would have provided the impetus for food hoarding and panic. This is what happens when there is a temporary break in just one link in the energy chain that supports our highly complex food supply system.

Reduced to its raw essentials, the embodied energy in food represents all the mechanical input of our farming system: the tractors, the fishing boats, and the trucks. It includes the water transported from Portugal disguised as melons, and that air-freighted from Kenya disguised as green beans -- 4 litres of water are needed to grow a single bean stem.

It covers the diesel in the trucks that deliver loads to your supermarket several times a day, fresh and just in time, and it includes the gasoline in your car when you go to collect your weekly groceries. The cumulative energy intrinsic to so many food processes -- growing, packaging, distribution and delivery -- is so cheap in historic terms that most of us could buy sufficient basic food for a week for what we earn in an hour or two, and in many cases far less than that.

Over 50 years, our average food expenditure has dropped from half of our income to around 10% but that is a purchasing total, not the cost of what might be described as essentials. Our food is so cheap that we can afford to buy far in excess of what our bodies need for survival and throw large quantities of it away -- at least a third of the food we buy is wasted.

Cheap food is an illusion; it is put there by energy sources that we have come to regard as inexhaustible. Our collective genius at devising new ways of producing food, faster and in the name of greater efficiency and productivity, has worked so well that we see it as normal. Greater abundance of food has allowed more people to survive, and dramatically increased global population.

It has been estimated that the number of people now alive is more than the entire number of human beings who have ever lived. Some 90% of those people are only here because of our ingenuity at delivering food with that 10:1 calorie factor built into it, together with all the other benefits of cheap fossil fuel energy.

As fossil fuel energy declines, renewable sources will not be able to maintain our complex, energy-intensive food systems in their present form. As a result, we will not be able to feed our present numbers. Our food production level will return to roughly what it was 500 years ago, when one calorie had to be put in as manual labour or animal manure to produce one calorie to eat. By that reckoning, our food supply system will only support one-tenth of us. To put it bluntly, at least 6 billion people won’t have a future.

The energy that goes into making our food is taken from the ground in some form of fossil fuel, and there is no substitute for it. It is not possible to make nitrate fertilizer or a tractor tire from the energy output of a wind turbine or a photovoltaic panel because these agricultural essentials depend on a high volume input of hydrocarbons.

We are pressing ahead with the large-scale manufacture of biofuel because we have convinced ourselves it is a viable alternative, predominantly to liquid hydrocarbon fuel. But a growing consensus of scientific opinion, backed by extensive research, has demonstrated that biofuel is not a practical solution.

It requires vast quantities of land, which we also need for foods, and consumes more energy in production than is obtained by its use. It is at best only marginally better than 1:1. Putting biofuel into a tractor to cultivate crops to make yet more biofuel would only be done by the kind of farmer who was a regular guest at the Mad Hatter’s tea party, unless of course he was being subsidized at the taxpayer’s expense.

This is the logic of what has come to be known as agribusiness. Agribusiness now dominates farming, although its originators have little in common with the land; they in fact began as giant chemical companies. These chemical companies had the resources to initiate development and analysis of fundamental crop science, so that plants could be engineered to suit exact conditions and resist specific pests while at the same time remaining under the patented control of their producers.

The science of agriculture and food production changed forever around the turn of the millennium when the United States Supreme Court judged that a patent could be granted on bioengineered seed. While dairy products, fruit and vegetables may still be wrapped in packaging bearing images of the rosy-cheeked farmer, food production is now an industrial process and inherited farming skills are rapidly being lost.
“Today so few people farm that vital knowledge of how to farm is disappearing." -- Richard Heinberg, "Fifty Million Farmers," 26th annual EF Schumacher lecture, 2006
Big business, in the form of supermarkets and agribusiness, is squeezing out the small farmers on the grounds that their methods are "inefficient" and is pushing down the price of produce to such an extent that local operators are struggling to make a living or are being displaced altogether. Agribusiness supplies supermarkets with consistent product on a massive scale and at a rock-bottom price. The small farmer struggles just to stay in business.

The principles of large-scale industrialized farming, now epitomized by the U.S. mega-farm, are being exported to Europe and elsewhere across the globe. The spread of agribusiness is stripping the world of its family farmers, those who possess skills handed down through generations in tending small parcels of land sustainably.

Today the typical farmer in both the UK and U.S. is likely to be over the age of 55, and UK farmers are leaving the industry at a rate of around a dozen a week. These trends are being repeated across the developed world. In developing countries small farmers are abandoning rural life to take their chances in the city because they can no longer make their living from the land.

This shift is of critical importance because the very infrastructure of farming is being destroyed. The inherited link between mankind and the land that supports him is being broken. Once gone, that link cannot be easily reestablished. Farming knowledge is an instinct passed down through generations; it is not something that can be learned from books.

The Caribbean’s lush islands were once key food producers with Jamaica providing up to 500,000 pounds of rice a year, until agriculture decreased in favour of a more lucrative income from tourism through the latter half of the twentieth century. The prosperity brought by tourism in turn supported increased population numbers, with visitors’ dollars buying rice from Guyana and the U.S. When the prices of basic foodstuffs soared around the world in 2008, the islands found their annual rice bill had risen to $3 billion.

Now they are seeking to revive lost farming skills but have had to turn to other countries for help, with Jamaica asking Guyana to help reestablish rice production. It is not redeveloping the techniques of its own small farmers, and has instead turned to foreign mega-farming operations, welcoming them with open arms and, according to local news reports, preferential treatment.

In microcosm, Jamaica serves as a warning to all of us. We have freely chosen to abandon our understanding of how food is produced, preferring more comfortable jobs that offer transient wealth but no long-term sustenance.

Global food production has been allowed to fall into the hands of fewer and fewer megacorporations, and their aims are simple: to deliver short-term profits and ultimately to control the entire system of world supply.
“The twenty first century is going to have to produce a new diet for people, more sustainably, and in a way that feeds more people more equitably using less land.” -- Tim Lang, Professor of Food Policy, City University, London, 2008
Biofuel production, now inextricably linked with that of food, has given the megacorporations even greater power over our lives. These megacorporations are feeding on government subsidies paid by the taxpayer and given by politicians on the vague promise that in the long term biofuel will become economic to produce, and will replace the conventional oil we need to provide our food by current farming methods.

Food security is of little concern to those involved in agribusiness. U.S. giant Cargill delivered a 68% increase in earnings over just three months in 2010, on the back of "crop market volatility," ie, rising prices on the global market. Cargill is a very successful company and its financial performance was good news for the company’s stockholders. But over the same period of time in Mozambique, people at the bottom of the food chain were rioting at the 30% increase in the price of a loaf of bread.

Agribusiness exists to convert the fertility of the land into profit with maximum efficiency. The industry functions on the widely accepted, successful, and profitable laws of business. That may mean forcing food producers into a state of dependence on crops that must be treated with specific weedkiller and grown by increasing applications of fertilizer. Seeds, weedkillers, and fertilizers may have to be obtained from specific sources that further contribute to the profit margins of agribusiness.

In the third world basic farming economies have been devastated by agribusinesses dumping subsidised grain crops on the market at prices below that which indigenous farmers could compete. Their actions effectively forced farmers off the land, leaving the way clear for them to buy vast acreages from governments in order to make still more money from the twin essentials of food and oil.

Highly industrialized farming is stripping the soil of its underlying fertility and water reserves. Food products are ultimately shipped to those countries with the ability to pay the going rate for them.

If we think about these practices we may feel uncomfortable about the methods, but in our immediate short term, agribusiness is delivering what we need: cheap, varied foods of consistent quality.

Food has become currency, not only through the activities of agribusiness but more literally with the rise in prominence and influence of the food speculator. In 2000 the U.S. government changed the business of commodities trading with the introduction of the Commodity Futures Modernization Act. This paved the way for financial institutions that were in no way connected with the business of agriculture to trade in food-based commodities.

Effectively it gave investors the power to manipulate markets, by buying up foodstuffs, exacerbating shortages and as a result inflating prices. As returns from traditional investments have dwindled because of the global economic downturn, putting money into staples like food has appeared a safe and attractive investment. Investors are essentially profiteering at the expense of human hunger, an unacceptable trade that is provoking world-wide food riots as well as global demands for constraints on this kind of speculation.

In the hands of unscrupulous people, food is becoming a means of control. Profits and financial results are now the goals; starvation does not appear on balance sheets.

The rapid transfer of food and energy into the combined asset of money is resulting in supply pressures that are already climbing the ladder of prosperity and will inevitably exacerbate over time. Today it is the world’s poor who are affected, but each successive stratum of society will find itself subject to food stress as the one below falls under the hammer blows of outright starvation.

We can measure poverty or prosperity by the proportion of income that has to be used to obtain what we need for subsistence. Our perceived income, derived from raw energy itself, will buy less and less as even the developed societies of the west have to use a greater proportion of income to obtain the means to eat. We will be subject to the same shortages that drove the underclasses of Mexico City, Lagos, Cairo, or Jakarta to riot in 2008.

Those shortages will take a little longer to reach the food markets of the developed West, but already the poorest are depending on financial support to eat. In the U.S., one in eight citizens relies on the government’s supplemental nutrition assistance program, the politically correct term for food aid, and that number is rising every month. In the UK and most other countries in the EU there is a growing network of food banks to provide people with an essential supplement to state support.
“Part of the reason for the fall in stock levels was simply that global use of grains and oilseeds had overtaken production – a factor that has continued to hold for seven of the eight years since 2000” -- Chatham House, "Feeding the Nine Billion," 2009
There have always been hungry people in the world, although there has in fact been sufficient food to "feed" everyone. But increases in global population, pressures from developing nations for more varied diets, and the destruction of crops through environmental disasters are producing new tensions, and desperate steps to try to ensure security of supply.

The food production shortfall and resulting price spike in 2008 caused 29 countries to ban or restrict exports of staple foods. They had no option but to hoard what they had; there was no concern whatsoever for the condition of those who had not.

Saudi Arabia is now growing a high proportion of its food in Ethiopia using Nile water, while Ethiopia itself has to seek food aid from other regions of the world to feed its own starving people. In Indonesia, palm oil plantations suck water out of what was rainforest so that developed societies can cling on to vain hopes of maintaining a lifestyle of infinite plenty at the expense of others less fortunate. In Brazil, indigenous people are displaced en masse as the rainforest is cleared to make way for cash and energy producing crops.
“Although we believe agriculture has enabled us to lead lives of wealth, health and great longevity, it has in fact been detrimental to the human species.” -- Jared Diamond, Guns, Germs and Steel
As with all species, our strength is drawn from the nourishment we absorb, and our survival depends on continued access to food. Although present levels of production cannot be maintained, let alone increased, we will continue to believe that this is somehow possible and that continual progress and growth form part of our ultimate destiny.

When we finally recognize that commerce and our own communal greed have destroyed our means of survival, we will have no option but to fight for what’s left, using every weapon at our disposal in order to gain advantage for our country, our tribe and ultimately for ourselves.

[Norman Pagett is a UK-based professional technical writer and communicator, working in the engineering, building, transport, environmental, health, and food industries. Josephine Smit is a UK-based journalist specializing in architecture and environmental issues and policy who has freelanced for British newspapers including the Sunday Times.Together they edit and write The End of More.]

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08 November 2011

Mike Ludwig : Thousands Circle White House to Protest Pipeline

Young protesters marched through the streets of Washington, DC, carrying an inflatable "pipeline" as long as a city block. Photo by Mike Ludwig / Truthout.

The pressure is on:
Thousands encircle White House,
tell Obama to reject Keystone pipeline


By Mike Ludwig / Truthout / November 8, 2011
UPDATE: The U.S. government on Thursday delayed approval of a Canada-to-Texas oil pipeline until after the 2012 U.S. election, bowing to pressure from environmentalists and sparing President Barack Obama a damaging split with liberal voters he may need to win reelection. -- Reuters, November 10, 2011
WASHINGTON, DC -- Thousands of people from across the United States and Canada completely encircled the White House grounds on Sunday in a show of collective strength that sent a clear message to President Obama: say no to the proposed Keystone XL pipeline that would pump oil from Canada to the Gulf Coast.

Activists of all ages descended on the White House, including more than 1,000 young people.

After surrounding the White House, a youth-led breakout march snaked through downtown Washington, DC, carrying the momentum of the Occupy movement along with an inflatable black pipeline replica as long as a city block.

At one point, the protesters filled the plaza outside the American Petroleum Institute office and chanted, "we are the 99 percent." The protesters ceremoniously deflated their "pipeline" at the nearby Occupy DC encampment.

The march blocked traffic and drew police, but the protest remained peaceful. No arrests were made in stark contrast to the two-week sit-in at the White House in August where 1,253 anti-pipeline activists were arrested.

The president was playing golf in Virginia during most of the action, but protesters said he should not ignore the sheer numbers of protesters that showed up at his doorstep. Environmentalists and young voters propelled Obama into the White House, and the Keystone XL pipeline is quickly becoming the issue that could unite or divide the president's voter base during the next year.

Oil giant TransCanada proposed the $7 billion dollar, 1,700-mile pipeline, which would pump 830,000 barrels of tar sands oil a day across 14 U.S. states to refineries in Oklahoma and Texas. The Obama administration is facing a year-end deadline to make a final decision on the pipeline, but a State Department official told reporters last week that the decision may slip past the deadline if the administration needs more time to review the department's final report.

In an interview with a Nebraskan television station last week, Obama suggested that he would make the final decision.

"We're really seeing this as a symbolic issue for [Obama] in the next year, and if he makes the right decision on this I think it will invigorate a whole generation of people who were starting to waver on their commitment to him," said Maura Cowley, a youth organizer and the co-director of Energy Action Coalition.

Nikki Luke, a sophomore college student who traveled from Pittsburgh for the protest, said Obama stands to lose much of the support his 2008 campaign enjoyed from student volunteers if he sides with big oil and approves the pipeline.

"I was an intern for Obama in 2008 in Virginia, and I know that I and many of the other people in my office worked for him for environmental reasons, and we will have no reason to do so again in 2012 if he's not going to show us why we voted for him in the first place," Luke said.

The proposed pipeline has given environmentalists of all stripes a reason to take to the streets. Conservationists say extracting oil from the tar sands is a destructive, chemical-heavy process that threatens Canada's boreal forests and native communities. Climate activists want the Obama administration to focus on alterative energy instead of a massive oil infrastructure project. Others say an influx of tar sands oil, which is dirtier than oil from conventional wells, will jeopardize the health of Americans living in the shadow of oil refineries.

There have been 14 reported oil spills along the existing Keystone pipeline system, and opponents say a major spill on the transcontinental line could poison farmland and the Ogallala aquifer.

Young protesters stood wide-eyed as a star-studded cast of speakers addressed the crowd during an initial rally. Co-authors and activists Naomi Klein and Bill McKibben, founder of the of climate action site 350.org, were joined by Native American activist Tom Poor Bear, actor Mark Ruffalo, Sojourners founder Jim Wallis, and several others.

Rep. Steve Cohen (D-Tennessee) told protesters that the Keystone XL pipeline is out of the hands of Congress and the decision rests "squarely on the president's shoulders."

"It's not a protest against the president," Cohen told Truthout. "This is a protest against a decision."

Bruce Boettcher, a rancher from Nebraska, spoke on behalf of the ranchers and landowners who have become red-state allies of the environmentalists opposing the pipeline. Ranchers are facing the threat of losing land to eminent domain and worry that a potential spill could poison farmland and the Ogallala aquifer, a massive underground source of fresh water for millions living in America's central plains.

"Eminent domain or otherwise, we will stand firm and strong upon the sandy soil of the Nebraska sand hills and the Ogallala aquifer to protect it," Boettcher said. "We the American people do not need to sacrifice our land and water for TransCanada's bottom line."

Legislators in Nebraska have introduced five bills that would help the state regulated pipeline activities, including one bill that would give a panel and the governor authority over eminent domain claims.

Obama is not only under pressure from protesters and environmental groups. A Canadian official has warned that, if the Obama administration refuses to approve the pipeline, Canada will ramp up efforts to sell its oil to other countries, possibly in Asia, according to Reuters.

TransCanada and supporters of the project say it will decrease America's dependence on oil from unfriendly countries and create thousands of jobs.

With unemployment at the top of the national agenda, some observers expect the Keystone XL controversy to pit two key factions of Obama's voter base, labor unions and environmentalists, against each other.

A Cornell Global Labor Institute report released in September, however, shows that only $3 billion to $4 billion of the $7 billion that would be spent on the project will be spent in the U.S., and TransCanada's claim that the project would create 20,000 jobs is "unsubstantiated." The report also found that most jobs would be temporary and go to non-local and out-of-state workers.

[Mike Ludwig is a reporter for Truthout, where this article first appeared.]

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08 June 2011

Roger Baker : Playing 'Peak-a-Boo' With the Earth

Cartoon by Andrew Weldon / The Age / National Museum of Australia-Canberra.

Coming soon:
Peak oil, peak driving, peak cars
Part I: Fuel prices and the global oil supply
By Roger Baker / The Rag Blog / June 8, 2011

In recent years, we are used to hearing something about oil in the news nearly every day. With rising fuel prices at the gas pump acting as a constant reminder, it is getting harder for the public to deny that the United States is in big energy trouble.

I have written three essays to explain our current situation, with a focus on transportation. This first one explains the global oil supply situation that has been causing fuel prices to go back up.


This will be followed by an essay documenting and explaining the basic shifts in driving and transportation behavior that are already well under way. It is indeed quite possible that the total vehicle miles driven in the United States has already peaked in 2007. Barring something unanticipated, we should plan to drive less, pay more, and begin to envy those with good transit service.

A third essay will focus on the efforts of the "Texas road lobby" to block transportation reform that might move Texas away from the sunbelt syndrome, a mode of growth highly dependent on cars, trucks, and roads to serve suburban sprawl development. When such groups fight progress or change, the skillful use of misleading data always helps. As does a new state leadership unwilling to acknowledge global warming.

Since there is a lot of money involved, and since this is Texas, we now see a new statewide network of Texas road promoters. In Texas, the road builders and their allies are thriving -- actually manage to increase their funding at the expense of competing priorities like health care and education.

The road goes on forever, and the party never ends. At least not while the Texas road lobby has its way. -- RB



The big picture: The global supply of cheap oil is mostly gone

The USA has, in effect, squandered the decades since the energy crisis of the 1970s in denial of its growing dependence on cheap imported oil. The USA gambled its economic future on the expectation of an eternally abundant supply of liquid fuels needed to power its unusually oil-dependent, low-density suburban lifestyle.

The U.S. energy crisis of the 1970's was temporarily abated by new Alaskan oil production, and by agreements with the Saudis and other OPEC producers. Market access to cheap OPEC oil was then promised forever, in return for unlimited access to Middle East oil reserves, and for U.S. military protection of the status quo.

Now that the cheap conventional petroleum of our past is in global decline, as reflected in its erratic but stubbornly rising price, keeping the U.S. transportation system functioning as usual is a continuing struggle. Over 95% of the world's transportation runs on oil-based fuel or its liquid equivalent; essentially all the world's ships and planes and trucks, and most trains, run on conventional hydrocarbon fuels.

Producing the remaining supply of more expensive nonconventional oil requires that the biggest private companies like BP have to work a lot harder, by going far offshore, by using lower quality sour or heavy oil, or by mining tar sands, etc.

Since most of the richest geological oil deposits have already been located and largely produced, we're finally getting down to the dregs. Global demand must increasingly be met by these "non-conventional" oil sources, where the energy return on our energy investment from drilling, etc., is much lower than before; perhaps only three-to-one rather than the previous twenty-to-one.

Given the new global oil supply situation, and with especially serious economic and transportation implications for the car-dependent U.S., it is past time to do something. The real issue is how hard we hit the wall as fuel prices keep on rising.

Cartoon by Polyp / UK.


Oil sets a limit on economic recovery

Oil reached its all-time high of $147 per barrel in mid-2008. Since then, the global supply hasn't gone up much, but demand has shrunk with the recession, and the price has decreased. With a global recovery, a recurrence of another oil price spike is now well underway, to be followed shortly by a second stage of global recession, a continuation or second phase of the Great Recession of 2008.

This time around, after a lot of previous destruction of soft global demand, and due to rapid oil demand growth in China, we should anticipate that oil demand and oil prices will not fall to such a degree as they did in the recession of 2009.

During the entire period from 2005 to the present, the global production of conventional oil has been relatively constant, with oil prices rising and falling with the strength of the dollar and global demand. Global oil demand has been steadily rising during the last year, running up against global production a second time, as reflected in its rising price.

Since about June 2010, we have seen a slow acceleration in price, to the point that Brent crude (the best global price to watch) now sells at about $117 per barrel. Assuming the global economy falls back into recession, oil may get a little cheaper in dollar price, but it will probably keep getting less affordable.

Energy analyst Tom Whipple explains the same situation this way:
There are only a limited number of ways that the current economic recession and the looming prospects of a final decline in oil production can play out. None of these will permit much of an economic revival. The global financial crisis as presently understood is clearly too firmly rooted to be fixed by government bailouts and stimulus packages. The recession will only deepen for the foreseeable future, and the massive deficit financing by the United States and many other countries cannot go on much longer. Although China, with its large reserves of foreign currency, may be able to continue underwriting stimulus packages longer than other countries, it too will succumb to the lack of exports, the need to import energy, and other looming problems

Oil-related thinking and politics at the national level

For anyone living in the U.S., it's easy to see that we are a car dependent nation. Oil addiction implies a corresponding car addiction. President George W. Bush first used the distressing "A" word toward the end of his term. Obama has now been warning us of the same thing for almost two years, and again last year during the BP spill.

Recently, Obama has proposed a national U.S. goal of reducing oil imports by a third, by 2025. In his words,
The Federal Government operates the largest fleet of light duty vehicles in America. We owe a responsibility to American citizens to lead by example and contribute to meeting our national goals of reducing oil imports by one-third by 2025 and putting one million advanced vehicles on the road by 2015.
This slow pace of of breaking our oil habit, offered here as a top national goal, is one way of admitting that our imported oil dependency will be extremely hard to break.

Along with the difficulty of reducing our import habit through painful economic restructuring over time, a domestic culture of denial persists, giving way to frustration and anger. We like to blame big oil companies like Exxon for holding back on production, or for causing high gasoline prices in some other way that they could easily reverse. It would be better to focus on the long term structural oil dependence of our society that these major producers have encouraged for decades, and which is arguably their major corporate sin.

Of course Republicans like to blame Obama for not encouraging more domestic drilling to hold down our driving costs. The reality is that no possible domestic energy policy can make much difference any more. Adding any plausible amount of new American production can scarcely sway the price on the huge global oil market. The guys still drilling in Texas or the Gulf are not likely to give us much of a price break since they can sell it to Europe for even more.

Oil has become more expensive globally, due to supply and demand in the world oil market -- of which the USA is now only about 20%. We might like to blame oil speculators for the oil price bubbles, but they are not a major factor on their own; they can't move the markets for very long without support from real market supply and demand forces.

The true adequacy of supply is revealed when and if tankers full of Arab oil arrive from the Middle East to undercut the speculative portion of demand. Even speculators have to sell the oil they buy, and they didn't get to be important players by making stupid bets.

Cartoon by Bromi / Mindfully.org.


European thinking about the oil supply problem


The International Energy Agency -- the top energy adviser to Europe -- now concedes that global conventional oil production, the ordinary oil you drill for on land, peaked about 2005 and is now in decline. The end of the cheap oil is automatically shifting the market toward more expensive and lower quality oil.

In fact, the IEA is now pleading with the OPEC cartel to raise its oil production enough to prevent a renewed economic crisis. The IEA can see what is happening. Faced with stagnating global oil production and the inability of low grade Saudi oil to make up for Libyan sweet crude losses, the IEA is asking OPEC to increase its oil exports -- enough to keep the global economy from slipping back into recession:
In an unusual development, last week the IEA’s governing board called on oil producers to increase their output to "help avoid the negative global economic consequences which a further sharp market tightening could cause." The Agency’s position is in stark contrast to that of OPEC, and in particular the Saudis, who maintain that the oil markets are adequately supplied and that there is no need for a production increase at this time.

The statement released by the IEA cited a “clear, urgent need for additional supplies." This time around the IEA seems to be taking the lead in warning that ever since the Saudis pulled back from replacing the lost Libyan exports last month, global demand for oil has been exceeding supply with the difference coming out of stocks.
With respect to world oil supply problems, many experts are now conceding that the days of cheap oil, and cheap driving, are over. The British are starting to face up to their own serious and rapidly worsening energy import problem, which parallels U.S. oil dependency in many respects, though it is not as severe.

By the time the general public understands the problem well enough to trouble the politicians, the situation it will be terribly difficult to deal with because of the long advance time needed to make an economic transition. We saw this during the long energy crisis of the 1970s.
The Hirsch report, published in 2005, concluded that to avoid major disruptions, we need to plan 20 years before the arrival of the oil peak, and that we just don’t have.

The key role of Saudi oil

The Saudis by themselves, by means of their unmatched reserve production capacity, and with their almost 9 million barrels a day in oil exports, or about 10% of the world supply, are the key oil export source. The world has relied on them since the 1970s -- to keep the world oil price as low and stable as it is now. Any big loss in Saudi exports, perhaps through spreading "Arab Spring" political instability, would rapidly plunge the world into a global depression.

Since they have already produced their best and cheapest oil, the Saudis are having to produce heavier and more sour crude oil, which is harder to refine. The Saudis are now struggling to maintain even their current level of oil exports to hold down the world price.
"The easy oil is coming to an end," says Alex Munton, a Middle East analyst for the Scottish energy consulting firm Wood Mackenzie. The major oil fields in the Gulf region, he says, have pumped more than half their oil -- the point at which production traditionally begins to decline.

The U.S. Energy Information Administration said earlier this month that world-wide oil consumption would hit a record 88 million barrels a day this year. Turmoil in Libya, combined with slowing production growth in Western countries, will keep supplies tight, boosting prices, the federal agency said. It projects oil prices will average $103 a barrel this year, up 30% from last year, and will be even higher next year.
Meanwhile, there is a growing suspicion that OPEC is holding back on oil production to keep prices high:
There appeared to be signs of growing panic behind the latest declaration from the International Energy Agency. The statement calls on oil producing countries to increase production and reduce costs in order to avert economic crisis. To date Opec members have been insisting that the market is well supplied and that prices are being driven by speculation. Saudi Arabia actually reduced production substantially in April on claimed lack of demand.

However, it is becoming clear that high oil prices are currently attractive to Opec leaders confronted with social unrest as it allows them to increase subsidies and other financial transfers to their populations.
It is mainly the unverified claim of Saudi oil reserve production capacity that the world has been depending on to keep global transportation costs affordable. Thus any move to raise oil prices by withholding production would be bad news. From an economic point of view, $90 oil acts like a new universal tax that puts a floor under the costs of all globally traded goods and commodities.

As the Saudi oil gets harder to produce, the scale of new capital investments needed to keep up production from the aging Saudi fields apparently establishes a new price floor of about $91 per barrel on their oil.
Saudi seen needing $91 oil to fund gov't spending plans
Bloomberg, arabianbusiness.com, 13 May 2011:

Saudi Arabia, the world's largest crude exporter, needs oil to trade at about $91 a barrel this year to cover the cost of government programmes, according to the Centre for Global Energy Studies. The country has "ratcheted up" spending and requires high prices to maintain the commitments, CGES chief economist Leo Drollas said on Friday at the Platts Crude Oil Markets conference in London
Cartoon by Ed Stein / ASPO-USA.


The latest oil production numbers

The latest world oil production figures show that global oil production has fallen back from a recent high of about 88 to about 87.5 million barrels per day. Nobody can say for sure yet if this is the peak, but these latest global oil production figures are only slightly above the previous global production peak of 2008, when global production reached about 87 million barrels per day, and the price hit $147 a barrel.

Is there any relief from high fuel prices on the horizon? Frankly no. The world economy has now recovered to the previous peak of global trade in 2008, just before the "Great Recession." With trade recovery comes a parallel recovery in demand for oil. Lacking any fuel alternative, an expansion of global trade implies a proportional expansion of the supply of fuel needed to move the traded goods.

If global oil (or other liquid fuel) production doesn't increase, then global trade cannot expand (barring perhaps a global readoption of sailing ships, etc). Since trade has recovered, oil has to expand in step, or market demand will raise global oil prices high enough to kill the recovery, as it did in 2008.

There is speculation that global trade has managed to recover (to the degree that it already has) only by tapping into the stockpiles of oil reserves already on hand. Unless world oil production increases to its previous peak of about 88 million barrels per day, something has got to give before too long, likely by the end of this year.


How soon till we hit the peak oil price wall?

How soon before things suddenly get a whole lot worse, as opposed to gradually worse? Probably by sometime in 2012, oil prices will spike high enough to shut down the U.S. economy and send it into recession again. This may be happening already. If you think times are hard now, expect worse next year. Here are some specifics offered by Martenson in this snip from his longer essay, well worth reading to fully appreciate the gravity of the current global oil supply situation.
How the major economies can continue proceeding with a business-as-usual mindset given the oil data is really quite a mystery to me, but that’s just how things happen to be at the moment. At any rate, with Brent crude oil having lofted over $100/bbl at the beginning of February and remained above that big, round number for four months now, we are already in the middle of a price shock. It may not be a perfect repeat of the circumstances of the 2008 oil shock, but it's close enough that the risk of an economic contraction, at least for the weaker economies, is not unthinkable here. Japan, now in recession and 100% dependent on oil imports, comes to mind.

Looking at the new data and reading even minimally between the lines of recent International Energy Agency (IEA) statements, I am now ready to move my "Peak Oil is a statistically unavoidable fact" event to sometime in 2012, which tightens my prediction from the prior range of 2012-2013.

Upon this recognition, the next shock will drive oil to new heights that are currently unimaginable for most. First, $200/bbl will be breached, then $300, and then more. And these are in current dollar terms; any additional dollar weakness will simply be additive to the actual quoted price. By this I mean that if oil were to trade at $200 but the dollar lost one half of its value along the way, then oil would be priced at $400.
As we now see here, the U.S. economy does appear to be headed down into a double dip recession, with private job creation in serious decline. What bank wants to lend into a faltering recovery, involving a consumer population greatly burdened by existing mortgage debt, high unemployment, and rising food and fuel prices? The biggest banks can do better investing in profitable deals backed up by U.S. government guarantees:
There’s no money going to the private sector. There are no loans, no leases, no venture capital, no anything. It’s another day in the United Socialist States of America, where bankers are paid well for borrowing at 0.25% from the government and lending at 0.5% to the government.

Risk-taking? Never heard of it! Why should anyone take risk, when you can get a tax-advantaged 7.4% yield on the preferred securities of banks who are too big to fail? And why should the banks take risk when they can make a decent living doing nothing?.
If there is no economic recovery and no relief from high oil prices either, it means working longer hours and cutting discretionary spending elsewhere to just support our car habit -- no matter what our dollars are finally worth next year.

Next time: Peak Driving and Peak Cars.

[Roger Baker is a long time transportation-oriented environmental activist, an amateur energy-oriented economist, an amateur scientist and science writer, and a founding member of and an advisor to the Association for the Study of Peak Oil-USA. He is active in the Green Party and the ACLU, and is a director of the Save Our Springs Association and the Save Barton Creek Association. Mostly he enjoys being an irreverent policy wonk and writing irreverent wonkish articles for The Rag Blog. Read more articles by Roger Baker on The Rag Blog.]

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02 May 2011

Harvey Wasserman : After Fukushima: A Nuclear Industry Meltdown?

A home in Glen Rose, Texas, with the Comanche Peak nuclear power plant hovering behind. Photo from the Fort Worth Star-Telegram.

After the Fukushima nightmare:
Will the nuclear power industry melt down?


By Harvey Wasserman / The Rag Blog / May 2, 2011
"There's never been a death because of radiation... in a civilian nuclear power plant... In Texas, if there's any kind of a serious earthquake or natural disaster, I want to be in the control room at Comanche Peak [Nuclear Power Plant] because that is the absolute safest place to be." -- Texas Congressman Joe Barton, April 6, 2011
In the wake of the apocalyptic nightmare at Fukushima, the multi-trillion-dollar global nuclear power industry is looking over the abyss at a long-overdue extinction.

But the issue is far from decided. Japan's horrifying catastrophe has sent the industry's spin machine into overdrive. We've been shown the script of what reactor-backers -- hell-bent on minimizing the dangers of this unprecedented disaster -- are willing to say and do to save themselves.

It is not a pretty picture. It focuses on the assertion that there are safe doses of radiation, and that atomic energy has harmed few, if any. Three Mile Island "hurt no one." There were few casualties at Chernobyl. And Fukushima's long-term damage will be minimal.

Atomic apologists argue that only nuclear power can fill our long-term "base load," that renewables are of no real consequence, and our choice is between more nukes and more coal.

Yet the nuclear industry faces significant hurdles in cost and construction lead time, two inescapable factors that are on the brink of killing atomic electricity-generation.

The end is not guaranteed. New reactor construction cannot proceed in the United States without huge federal handouts. There are no private sources willing to fund additional U.S. projects. Wall Street has only been keen on atomic energy when subsidies and ironclad guarantees have been available.

No reactor ordered in this country since 1974 has been completed. In that year, Richard Nixon promised 1,000 atomic reactors licensed to operate by the year 2000. Today there are 104.

There are many reasons those 896 reactors went missing. Number one is the fact that the No Nukes movement stopped the industry from gouging from the government the trillion or more dollars it would have taken to build that fleet.

Local and national public opposition slowed and canceled many projects and created a political atmosphere in which it is impossible for the industry to do what was done in France. There the industry established a radioactive form of national socialism. It is amusing to watch American "free-market advocates" go rhapsodic about the French nuclear industry, when in fact it is owned, insured, operated, monitored, and regulated by the government.

Here the government doesn't own the reactors, but it does own their liabilities. When atomic power was introduced, utilities refused to invest unless Congress would insulate them from the damage caused by an accident. So the Price-Anderson Act of 1957 required reactor owners to establish a pay-out pool of $540 million: the industry's liability for an accident whose potential was estimated to be capable of destroying a land mass the size of Pennsylvania.

The protection has been periodically renewed by Congress. Today the pool has grown to $12.6 billion. As Fukushima has demonstrated, that's a fraction of the potential damage from a disaster at one or more American reactors. Preliminary estimates of the cost for radioactive cleanup at Fukushima mean little, in part because they're intertwined with destruction from quake and tsunami.

And the accident is far from over. Radioactive emissions seem to be worsening, and five weeks after the earthquake the level of radioactive iodine 131 was 6,500 times the legal limit in the Pacific waters near the plant. Should such fallout occur from a U.S. reactor, beyond the $12.6 billion pool, liability would rest with the victims and the taxpayers.

Without government cash to build reactors that would produce electricity once billed as "too cheap to meter," the industry has stalled. In recent months, even before Fukushima, local voters have begun to force the shutdown of operating reactors.

In Vermont, Governor Peter Shumlin was elected on a pledge to shut the Yankee reactor. A deal cut by its owner, Entergy, and the state legislature requires official approval for operations beyond March 2012. In New York, newly elected Governor Andrew Cuomo is focused on shutting down Indian Point, 35 miles north of Manhattan.

But as fans of monster movies know, there comes a moment when the beast has been slain, all are celebrating... and then... BAM! It comes back to life.

That resurrection has come to be known as the "nuclear renaissance," which again rests on federal handouts. The Bush administration provided $18.5 billion in loan guarantees to underwrite the beginning of a new generation of reactors. In 2007, with former Senator Pete Domenici (R-NM), the "senator from nuclear power," the industry attempted to get $50 billion in additional loan guarantees.

But a grassroots movement arose with help from a NukeFree.org effort, led by singers Bonnie Raitt, Jackson Browne, and Graham Nash. With a website, a YouTube video, a petition drive that gathered 120,000 signatures, and a lobby day in October 2007, Domenici's $50 billion proposal was defeated.

In 2008, 2009, 2010 and thus far in 2011, similar efforts by the industry to grab federal money have been denied, which is remarkable because, as reported by an investigative team at American University, proponents of reactors have spent some $645 million in the last decade lobbying Congress for more subsidies. For an underfunded grassroots movement to beat a campaign that spent on average $65 million a year (excluding what was spent on media) is miraculous.

Two major factors have contributed.

One is the soaring cost of the reactors. Three years ago, cost projections for a new reactor were as low as $2 billion to $3 billion. Today, with barely a shovel having been turned, they are in the range of $10 billion to $11 billion, and moving relentlessly and rapidly higher. Design and safety considerations coming out of Fukushima are sure to send that figure up even more. A Texas project that was to be bankrolled by the Japanese almost certainly won't happen now.

The scientific staff at the Nuclear Regulatory Agency -- a captive regulatory agency whose budget is provided by the industry -- has raised concerns about new designs undergoing constant and often confusing changes proposed by the utilities building the plants, which also increases costs.

The other major factor that helped defeat the loan guarantees is the plunging cost of renewables. When the No Nukes movement began, reactor opponents were forced to argue that "sometime in the future" such green technologies as wind, solar, tidal, geothermal, ocean thermal, and biofuels would be cost competitive.

That time has come. The solartopian vision of a green-powered Earth has, in the last few years, become economically viable within a free-market model. With photovoltaic cells leading the way, and wind power following close behind, the projected price for green-generated electricity has fallen into the range of nuclear power and has drawn closer to coal.

A constant stream of technological breakthroughs in renewables and energy efficiency shows every sign of continuing to accelerate past the tipping point, where what has until now been known as "alternative" technology takes over the mainstream.

With that has come a green industry with political clout of its own, in both lobbying power and job creation. For every month that passes without new reactors coming on line, the renewable-energy lobby gains an increasing ability to flex its muscles in Congress and the marketplace.

Will these factors be sufficient to prevent a renaissance capable of reviving the nuclear industry?

The nuclear renaissance got its most recent big break in 2010, when Barack Obama put up $8.33 billion in loan guarantees for two reactors in Georgia -- the first money from the $18.5 billion set aside by Bush to actually go to a reactor project. (Another plant is in the works in South Carolina.)

Serious legal and technical issues have been raised about the loan guarantees. That did not stop Obama from staging a news event to announce the first new reactor projects to break ground in decades. State regulators are forcing ratepayers to fund construction. If the reactors never generate a kilowatt of electricity, the public will still foot the bill.


Waste not

The public always foots the bill. After half a century and more than $10 billion, the Yucca Mountain Nuclear Waste Repository in Nevada has failed, for technical and political reasons. Consequently, more than 60,000 tons of high-level radioactive waste is stored at reactor sites across the U.S. None of the world's reactor operators have a safe solution for storage of the most lethal substance ever created by human beings. Almost all of it sits onsite, alongside more than 430 reactors worldwide.

But Fukushima has belied the industry line that in the absence of permanent sites waste can be safely stored onsite. Onsite storage of high-level waste in spent-fuel pools at each of six stricken Fukushima reactors, plus a seventh common pool, has created a fiery nightmare.

Spent rods were exposed to air, allowing zirconium alloy cladding to ignite, releasing huge quantities of radiation while endangering the complex cooling systems on which the entire facility depends.

When the quake destroyed critical pump and piping networks, water from the tsunami created short circuits and ruined electrical systems.

Hydrogen explosions at two or more of the reactors may have compromised containment domes, while a crack in at least one reactor pressure vessel indicates a dangerous level of damage to the structures meant to keep the cores intact.

Meanwhile, some of the spent fuel rods sit five stories in the air. They were put there largely to make it easier to move used rods out of the core and directly into the elevated pools. But given the damage done by the quake, tsunami and mechanical failures inside the plants, getting cooling water to them has proven extremely difficult. Some of the rods might have fallen into melting reactor cores. The disaster defies description and won't be fully understood for decades.

Yet the industry continues to blame its waste problem on opponents they claim have prevented a viable disposal site from being established, not only in the U.S., but in every country where reactors operate.

Fukushima has also raised the specter of an airborne stream of radiation killing people all over the world. This includes the United States, where fallout was detected on the West Coast within days of the disaster in Japan, followed by reports of iodine 131 in milk and water from Maine to Florida. Cesium has been found on vegetables in Vermont, though it's unclear whether it came from Fukushima or the nearby Yankee reactor, a Fukushima clone that opponents in Vermont are desperately trying to shut.

On April 12, the Japanese government reclassified the Fukushima crisis to Level 7, in a general category with the 1986 Chernobyl disaster, while reassuring the public that most of the airborne radiation has been blown "out to sea."

There was no sea at Chernobyl, where the heaviest radioactive contamination quickly settled on areas in Ukraine, Belarus, and Russia. The public debate continues regarding the number of Chernobyl fatalities. Last year, three Russian scientists published a book based on a broad literature survey. They reported that by the early years of this century, 985,000 Chernobyl downwinders died as a result of the accident -- a number far higher than any previous estimates.


The peaceful atom

Commentator and author Ann Coulter might tell a national TV audience that radiation can actually be good for you, and that small doses can actually improve your health and that of your children. But scientists such as Dr. Karl Z. Morgan and Dr. John Gofman, highly regarded pioneers in the study of radiation health physics, long ago established that there is no identifiable safe dose of radiation. That there is no established threshold below which exposure to x-rays, gamma rays, and alpha or beta emissions is "safe" has been accepted in the radiation health physics field since its inception.

In an effort to deny this reality, the industry and its apologists have discounted health impacts from of the Fukushima fallout in the United States. Typical was Matthew Herper in a Forbes blog, who assured readers that there would be minimal health danger from Fukushima "even if things go horribly wrong." The line that no dangerous doses of radiation have reached the U.S. has become an article of faith among major media from CNN to NPR.

Yet difficult to ignore is the presence of four California reactors that sit near major earthquake faults, in tsunami zones. The two reactors on the beach at San Onofre are far closer to San Diego and Los Angeles than Fukushima is to Tokyo. Two more at Diablo Canyon, near San Luis Obispo, are within a mile of a newly discovered fault line, and considerably less than that from the shore. Had the Fukushima quake hit either of those sites, southern and central California would be in evacuation mode, and our nation would be blanketed in lethal fallout.

With reactors like Indian Point and San Onofre hauntingly close to major population centers, with some two dozen U.S. plants identical in design to Fukushima, and with still more on or near earthquake faults, industry backers are working to convince the public that however dangerous their nukes might be, coal is worse. Global warming, they say, favors nuclear because it's "carbon free."

Both technologies are doomed by cost, supply, and their impact on the environment and human health.

Our survival ultimately depends on burying fossil fuels -- and more immediately, the "Peaceful Atom" that has given us Three Mile Island, Chernobyl, Fukushima, and other accidents that will inevitably follow.

Thus far, Barack Obama has been the industry's best ally. Early into the Fukushima accident -- long before it was clear what would happen -- he assured the public that there was nothing to worry about here, and that he would continue to push for more reactors. The administration also has failed to establish a national monitoring network that could inform the public about where the radiation is and what individuals might do to protect themselves and their families.

Obama's non-response may date back to his early days as a state senator, when he allied himself with the Illinois-based Exelon, America's biggest private nuke owner. The president's career is rooted in the 11 reactors that ring Chicago. The consulting firm founded by his chief campaign strategist David Axelrod, who would later become a senior White House advisor, represented Exelon.

Obama's former White House chief of staff Rahm Emanuel (now mayor-elect of Chicago) put together investment packages for Exelon's Illinois plants when he worked as an investment banker. And Exelon CEO John Rowe has been a longtime financial backer of the president.

A critical moment is coming soon, when Obama goes to Congress to request an additional $36 billion in loan guarantees for new nukes in his 2012 budget.

With them, America's atomic industry has a chance to build a few more reactors. Without them, a green-powered Earth is within our grasp.

(As we go to press Entergy has filed a complaint in U.S. District Court in Vermont attempting to prevent the state from forcing the Vermont Yankee nuclear power plant to cease operation on March 21, 2012.)

[Harvey Wasserman edits the NukeFree.org website. His most recent book is Solartopia! Our Green-Powered Earth. This article was also published at the Washington Spectator. Read more of Harvey Wasserman's writing on The Rag Blog.]

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17 March 2011

Harvey Wasserman : End Nuclear Power Before It Ends Us

Environmental activists, wearing ghost masks to symbolize victims of a nuclear meltdown, demonstrate near the Presidential Palace in Manila, Philippines, Tuesday March 15, 2011. Photo from AP.

End nuclear power before it ends us
For 25 years the nuclear industry has told us Chernobyl wasn't relevant because it was Soviet technology. Such an accident 'could not happen here.'
By Harvey Wasserman / The Rag Blog / March 17, 2011

The Japanese people are now paying a horrific price for the impossible dream of the "Peaceful Atom." For a half-century they have been told that what's happening now at Fukushima would never occur.

Our hearts and souls must first and foremost go out to them. As fellow humans, we must do everything in our power to ease their wounds, their terrible losses and their unimaginable grief.

We are also obliged -- for all our sakes -- to make sure this never happens again.

In 1980, I reported from central Pennsylvania on what happened to people there after the accident at Three Mile Island a year before.

I interviewed scores of conservative middle Americans who were suffering and dying from a wide range of radiation-related diseases. Lives and families were destroyed in an awful plague of unimaginable cruelty. The phrase "no one died at Three Mile Island" is one of the worst lies human beings have ever told.

In 1996, 10 years after Chernobyl, I attended a conference in Kiev commemorating the tenth anniversary of that disaster. Now, another 15 years later, a definitive study has been published indicating a death toll as high as 985,000... so far.

Today we are in the midst of a disaster with no end in sight. At least four reactors are on fire. The utility has pulled all workers from the site, but may now be sending some back in.

The workers who do this are incomparably brave. They remind us, tragically, of some 800,000 Chernobyl "Liquidators." These were Soviet draftees who were sent into that seething ruin for 60 or 90 seconds each to quickly perform some menial task and then run out.

When I first read that number -- 800,000 -- I thought it was a typographical error. But after attending that 1996 conference in Kiev, I spoke in the Russian city of Kaliningrad and met with dozens of these Chernobyl veterans. They tearfully assured me it was accurate. They were angry beyond all measure. They had been promised they would not encounter health problems. But now they were dying in droves.

How many will die at Fukushima we will never know. Never have we faced the prospect of multiple meltdowns, four or more, each with its own potential for gargantuan emissions beyond measure.

If this were happening at just one reactor, it would be cause for worldwide alarm.

One of the units has been powered by Mixed Oxide Fuel. This MOX brew has been heralded as a "swords into ploughshares" breakthrough. It took radioactive materials from old nuclear bombs and turned them into "peaceful" fuel.

It seemed like a neat idea. The benefits to the industry's image were obvious. But they were warned repeatedly that this would introduce plutonium into the burn chain, with a wide range of serious repercussions.

Among them was the fact that an accident would spew the deadliest substance ever known into the atmosphere. If breathed in, the tiniest unseen, untasted particle of plutonium can cause a lethal case of lung cancer.

But like so many other warnings, the industry ignored its grassroots critics. Now we all pay the price.

For 25 years the nuclear industry has told us Chernobyl wasn't relevant because it was Soviet technology. Such an accident "could not happen here."

But today it's the Japanese. If anything, they are better at operating nuclear reactors than the Americans. Japanese companies own the Westinghouse nuclear division, whose basic design is in place throughout France. Japanese companies also own the GE nuclear division. Among others, 23 of their U.S. reactors are extremely close or virtually identical in design to Fukushima I, now on fire.

Jeffrey Immelt, head of GE, is one of the many heavy corporate hitters now advising Barack Obama. Obama says (so far) that he has no intention of changing course in nuclear policy. That apparently includes a $36 billion new reactor loan guarantee giveaway in the 2012 budget. Energy Secretary Steven Chu has made clear he considers the situation at U.S. reactors very different from those in Japan. Essentially, he says, "it can't happen here."

Chu and others keep saying that our choice is between nukes and coal, that atomic energy somehow mitigates global warming. This is an important sticking point for millions of concerned citizens, and an important and righteous legion of great activists, who see climate chaos as the ultimate threat.

But especially in light of what's happening now, it's based on a non-choice. Nukes are slow to build, soaring in cost, and clearly have their own emissions, waste, and safety problems. The ancillary costs of coal and oil are soaring out of reach in terms of environmental, health, and other negative economic impacts. The "bridging fuel" of gas also faces ever-higher hurdles, especially when it comes to fracking and other unsustainable extraction technologies.

The real choice we face is between all fossil and nuclear fuels, which must be done away with, as opposed to a true green mix of clean alternatives. These safe, sustainable technologies now, in fact, occupy the mainstream.

By all serious calculation, solar is demonstrably cheaper, cleaner, quicker to build, and infinitely safer than nukes. Wind, tidal, ocean thermal, geothermal, wave, sustainable biofuels (NOT from corn or soy), increased efficiency, revived mass transit -- all have their drawbacks here and there. But as a carefully engineered whole, they promise the balanced Solartopian supply we need to move into a future that can be both prosperous and appropriate to our survival on this planet.

As we see now all too clearly, atomic technology is at war with our Earth's ecosystems. Its centralized, heavily capitalized corporate nature puts democracy itself on the brink. In the long run, it contradicts the human imperative to survive.

Today we have four reactors on the coast of California that could easily have been ripped apart by a 9.0 Richter earthquake. Had this last seismic hit been taken on this side of the Pacific, we would be watching nightly reports about the horrific death toll in San Luis Obispo and the catastrophic loss of the irreplaceable food supply from the Central Valley, and learned calculations about the forced evacuations of Los Angeles and San Diego.

There are nearly 450 atomic reactors worldwide. There are 104 here in the U.S.

Faced with enormous public demonstrations, the Prime Minister of Germany has ordered their older reactors shut. At the very least this administration should follow suit.

The Chinese and Indians, the biggest potential buyers of new reactors, are said to be "rethinking" their energy choices.

As a species, we are crying in agony, to the depths of our souls, from compassion and from fear.

But above all, the most devastating thing about the catastrophe at Fukushima is not what's happening there now.

It's that until all the world's reactors are shut, even worse is virtually certain to happen again. All too soon.

[Harvey Wasserman edits the NukeFree.org website, and is author of Solartopia! Our Green-Powered Earth. This article was also posted to BuzzFlash at Truthout.]

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27 September 2010

Harvey Wasserman : 'Pebble Bed' Nuke Bites the Dust

The "Pebble Bed" design. Graphic from Anthonares.

No go for 'Pebble Bed' nukes:
South Africa ditches much-hyped technology


By Harvey Wasserman / The Rag Blog / September 27, 2010

As the "reactor renaissance" desperately demands new billions from a lame duck Congress, one of its shining stars has dropped dead. Other much-hyped "new generation" plans may soon die with it.

For years "expert" reactor backers have touted the "Pebble Bed" design as an "inherently safe" alternative to traditional domed light water models. Now its South African developers say they're done pouring money into it.

The Pebble Bed's big idea was to create a critical mass of uranium particles coated with silicon carbide and encased in graphite. These intensely radioactive "pebbles" would seethe in a passive container, cooled by helium. Without the need for a containment dome, the super-heated mass would produce both heat and electricity. Touted as needing no back-up emergency systems to prevent a major disaster, the plan was to mass-produce these "smaller, simpler" reactors for use throughout the industrial world.

Pebble Bed technology originated in Germany. But it was adopted and developed by the government of South Africa. For some it was a source of pride that a "developing" nation had become a significant player in the so-called nuclear renaissance.

But the South African government has now cut off funding for the project. Public Enterprises Minister Barbara Hogan has told the National Assembly that "sobering realities" included the lack of a working demonstration model, the lack of customers, the lack of a major investment partner, and the impending demand for $4.2 billion in new investment capital. As deadlines consistently slipped, Westinghouse withdrew from the project in May.

South African officials say the U.S. and China are still working on the technology. But economic realities make any tangible future Pebble Bed as a major source of new energy largely imaginary. Critics also worry that without a containment dome, the pebble beds would be vulnerable to small groups of terrorists with simple shell-lobbing mortars. And that critical metal components would not perform as needed under the intense stresses of heat and radiation.

The death of the Pebble Bed has considerable significance. For nearly two decades reactor backers have counted it in the imaginary fleet of new generation reactors coming to save us. Its alleged bright future would make it just one of the many new nuclear technologies that would render solar and wind energy unnecessary.

This anti-green arsenal has also included fast breeder reactors, which would magically create new fuel from used fuel. Canada's heavy water CanDu. Thorium reactors, which would burn a radioactive element other than uranium. Fusion reactors, which would mimic the gargantuan power of the sun. The AP 1000, new from Westinghouse. The European (or Evolutionary) Power Reactor, new from France's Areva. And a whole fleet of "Fourth Generation" designs which are unproven and often wildly impractical.

Like older proposed projects such as nuclear-powered aircraft, homes built of uranium, and nuclear-tipped anti-ballistic missiles, all have run afoul of reality. None offer a realistic solution to the problems of waste or terrorism, not to mention cost, heat emissions, and greenhouse gas production in all but the fission/fusion portion of the process. The first big breeder, Fermi I, nearly exploded in Monroe, Michigan, in 1966, threatening to irradiate the entire Great Lakes region. Today's models are extremely dangerous, dirty, and have been widely rejected outside France and Japan, where they barely operate.

Canada has been unable to find buyers for its CanDu design, and has put its own Atomic Energy of Canada, Ltd., up for sale. Thorium reactors are unproven, with no prototypes. Fusion reactors are periodically hyped and always "20 years away." The AP1000 and EPR face major regulatory, safety and financial hurdles.

Meanwhile a "Fourth Generation" of proposed reactors is theoretical and all over the map. As Michael Mariotte of the Nuclear Information & Resource Service puts it: "The Pebble Bed has failed for the same reason all the other new reactor designs ultimately will fail: they are too expensive compared to the competition. Renewables and energy efficiency are cheap and getting cheaper; nuclear is expensive and getting more so."

Sensing an unending march of hotly hyped but feeble headed new design failures, the U.S. industry is now pushing hard to get its aging fleet -- originally designed to operate 30 to 40 years -- licensed to run for 60 to 80 years. But not one of 104 U.S. reactors has a containment dome designed to withstand a serious jet crash. Reactor builders now say they'll put stronger domes on the new models, but prefer not to discuss cost or logistical realities.

The Pebble Bed's backers could not find private investors, and the South African government finally got tired of footing the bill. If/when that happens here -- and the sooner the better -- the Solartopian technologies of true green power and efficiency will finally get their day.

Then the "too cheap to meter" six-decade Peaceful Atom fantasy, with its fast breeding corps of failed new designs, can take its final rest in the very dead pebble bed.

[Harvey Wasserman's Solartopia! Our Green-Powered Earth is at www.solartopia.org along with Pete Seeger's "Song for Solartopia!" He edits the NukeFree.org website and is senior editor of www.FreePress.org.]

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13 September 2010

Harvey Wasserman : Big Hurt Hits 'Nuclear Renaissance'

Plant Vogle, nuclear power plant in Burke County, Georgia: $108 million in overcharges -- and counting. Image from Georgia Country Blog.

Lab report:
Is the 'nuclear renaissance' dead yet?


By Harvey Wasserman / The Rag Blog / September 13, 2010

America's much hyped "reactor renaissance" is facing a quadruple bypass. In actual new construction, proposed projects, and overseas sales, soaring costs are killing new nukes. And the old ones are leaking like Dark Age relics teetering on the brink of disaster.

As renewables plummet in cost, and private financing stays nil, the nuclear industry is desperate to gouge billions from Congress for loan guarantees to build new reactors. Thus far, citizen activism has stopped them. But the industry is pouring all it has into this fall's short session, yet again demanding massive new subsides to stay on life support.

Here's a lab report:
  • Soaring costs at Vogtle, the U.S.'s one active new reactor project, have stuck Georgia ratepayers with $108 million in unplanned overcharges... and that's just for starters at a site where actual construction has barely begun. Georgia's PUC now says it will hike rates by nearly 3 times the original $1.30/month promised when it first agreed to soak ratepayers for the plant -- in advance. This new hike was opposed by the PUC's own staff, which blasted the whole deal for being shrouded in secrecy.

    Currently calculated to cost a sure-to-soar $14.5 billion, the Vogtle project got $8.33 billion in federal loan guarantees from Obama in February. Citizen/taxpayer groups have since sued to see the details, which the administration is keeping secret.
Such soaring rates and slipping schedules defined the first generation of "too cheap to meter" reactors, which almost without exception came in years late and billions over budget. Costs of the two original Vogtle reactors jumped by 1,263% -- from an original $660 million budget to nearly $9 billion -- forcing up statewide rates more than 12%. Construction was promised for seven years, but actually took 16.

The French giant AREVA's "new generation" projects in Finland and Flamanville, France, have also soared hugely over budget and behind schedule. So there's every indication the new generation of reactors will be as catastrophically behind schedule and over budget as the first.
  • John Rowe, the CEO of Exelon, America's top reactor owner (17 in 3 states), says low gas prices could delay construction of new merchant nukes in the U.S. by a "decade, maybe two." Merchant power plants sell electricity into open competitive markets. Because atomic energy can't compete with natural gas or renewables and efficiency, Exelon has withdrawn its application to build two reactors in Victoria County, Texas. "We haven't totally abandoned" the project, says Rowe. But "it's very unlikely we would do it for a long time."

  • American reactor component makers are angry with India for passing new law requiring the industry to assume substantial liability for a catastrophe they might cause. The horrifying aftermath of Bhopal, where Union Carbide killed thousands of local citizens with a lethal gas emission for which they have not been held fully accountable, still weighs heavily in India.

    But the atomic industry will not tread where it's held liable for the true costs of its potential disasters. In the U.S., liability is capped at around $11 billion, even though the financial damage from a full-scale catastrophe could easily soar into the trillions. Minimum estimates from the 1986 Chernobyl disaster, which occurred in a remote, impoverished area, have exceeded $500 billion. By recent estimates the death toll is 985,000 and still counting.

    On behalf of U.S. corporations, the Obama Administration is demanding the Indian liability requirements be lifted. Especially in the wake of BP's Deepwater Horizon catastrophe in the Gulf of Mexico, it is a stunning admission that even after 50 years, reactor technology cannot be held accountable for its technical vulnerabilities, here or abroad

  • America's aging fleet of first generation reactors is leaking profusely. Indian Point, north of Manhattan, has suffered seven unplanned shut-downs in two years. In recent months serious emissions of tritium and other radioactive substances into the air and water have been found at Vermont Yankee, Indian Point, New Jersey's Oyster Creek, and many more.

    Ohio's infamous Davis-Besse, where boric acid ate virtually all the way through a reactor pressure vessel, has sprung some two dozen leaks which cannot be explained by its owner, First Energy. In Vermont, leaks from pipes the operators said did not exist have seeped contaminated water into the Connecticut River. As reactor owners petition to extend operating licenses for decades to come, the rickety, embrittled old plants become increasingly dangerous.
According to official records, the nuclear industry has spent at least $645 million in the past decade lobbying for taxpayer handouts. It got $18.5 billion in loan guarantees from the Bush Administration in 2005. Obama has asked for some $36 billion more. But so far a national grassroots movement has kept that from happening. The industry is demanding more from Congress, and will continue to do so as long as legislators need cash to run their campaigns.

But it is now clearer than ever that atomic energy cannot compete, that new construction means new rate hikes, that delays and cost overruns will always outstrip the industry's initial public assurances, and that after a half-century this technology still can't face the prospect of full liability for the disasters it might impose... or even for the "minor" radiation it constantly emits.

Will this will finally kill the much hyped "renaissance" of a Dark Age technology defined by quadruple failures in human health, global ecology, sound finance, and shaky performance?

That will depend on the power of citizen activism. Nuclear power can't survive without protection from accident liability. Nor can new plants be built without huge public subsidies.

The longer those are stopped, the more likely a Solartopian transition to the only sources that can sustain us: increased efficiency and the green-powered birth of the Age of Renewables.

[Harvey Wasserman's Solartopia! Our Green-Powered Earth is at www.solartopia.org, along with Pete Seeger's "Song for Solartopia" on YouTube.

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04 May 2010

A Triple Curse : The Corporate Climate Bill

Image from Climatico.

Devil's brew:
Curse of the climate bill


By Harvey Wasserman / The Rag Blog / May 4, 2010

Legend says curses come in threes. Let's pray that doesn't happen with the unholy trinity of the Corporate Climate Bill

It demands drilling for oil, digging for coal, and big money for new nukes. How such a devil's brew could help save the Earth conjures a corporate cynicism beyond the scope of the human mind and soul.

It all now bears a special curse. It was meant for Earth Day. Then it slipped to the April 26 Chernobyl anniversary. But co-sponsor Lindsay Graham (R-SC) pitched a fit over immigration and pulled his support.

As did Earth herself. Just prior, more than two dozen hill country miners were killed in a veritable Three Mile Island of black carbon. This entirely avoidable accident was built on years of sloppy denial by King Coal and the tacit assent of pliant regulators. With mountains of offal being pitched into rivers and streams, and underground hell holes filled with gas and soot, coal has been slaughtering people and eco-systems here for more than a century. Now, as at TMI, the death has become visible.

Meanwhile, the undersea gusher destroying the Gulf of Mexico may soon pour up the east coast. Like Chernobyl, it defies comprehension.

As the Soviets denied it, Chernobyl gushed radiation that killed some 985,000 people. Based on more than 5,000 studies, a definitive assessment has been authored by three Russian scientists, issued by the New York Academy of Sciences, that should serve as the ultimate warning against atomic energy.

But the third leg of the Climate Bill trifecta has -- thankfully -- yet to kick in. Like coal and oil, America's 104 licensed nuclear plants are a catastrophe in progress. They all leak lethal radiation on a regular basis. Their wastes are unmanageable. They emit greenhouses gases in their vital fuel cycle. They pump untold quantities of heat into the air and water. They are sitting ducks for terror and error.

Our aging fleet of rickety reactors continually flirts with disaster. Many are on or near active earthquake faults. Turkey Point, in south Florida, was directly hit by Hurricane Andrew. Ohio's Davis-Besse came within a fraction of an inch of a breach of its inner containment. A new inspection has shown more than 2 dozen potentially critical new flaws there.

New York's Indian Point and New Jersey's Oyster Creek, along with their radioactive siblings, are super-heating the rivers, lakes, bays and oceans on which they sit. Embrittlement, decaying hardware and an overall aging process have this country riding the radioactive brink every moment.

On September 11, 2001, terrorists flew directly over the Indian Point reactors on their way to the World Trade Center.

America's reactors constitute less than a quarter of those operating worldwide. Despite their inability to get private financing or liability insurance, the Obama Climate Bill is larded with billions in handouts for new reactor construction. Yet the first reactor design proposed (for Georgia) has been strongly criticized by the Nuclear Regulatory Commission, and a key financing scheme has been voided by the courts.

Only one Climate Bill can solve our energy crisis -- a Solartopian program for converting the entire economy to renewables, conservation, and efficiency. It would fly in the face of the corporate destroyers who are behind the current Climate Bill. But these are technologies that actually work, that pay, that create jobs and prosperity, and that will preserve rather than destroy our sacred Earth.

The atomic shoe could be dropping as you read this. It is a catastrophe we cannot afford -- ecologically, financially, economically, spiritually.

These old reactors must shut before they irradiate the apocalyptic footsteps of their fossil fueled brethren.

The Curse of the Climate Bill is upon us. Let's transform it to something truly green before it kills again.

[Harvey Wasserman's Solartopia! Our Green-Powered Earth, is at www.harveywasserman.com . He is senior advisor to Greenpeace USA and senior editor of www.freepress.org, where this was also published.]

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