The Dutch love affair with natural gas: A cautionary tale for the United States?

The story sounds familiar. For decades oil and natural gas drilling have been proceeding and creating prosperity for those involved. At some point significant earthquakes occur in areas where they were formerly very rare or nonexistent. Those quakes are linked to oil and gas drilling and production. The industry denies the link.

The quakes continue, get worse and finally get strong enough to do damage.

To those living in the United States, this reads like stories coming out of the fracking boom in states that include Oklahoma, Texas, Ohio, Kansas and Arkansas. To those living in Europe, it's the story coming out of The Netherlands, home to the Groningen Gas Field, one of the largest natural gas finds ever.

The Groningen field has been both a blessing and a curse for the Dutch. Since its discovery in 1959 the Dutch have reaped huge financial benefits from having their own secure and abundant source of natural gas. Beyond that, the country has until recently been a major exporter of natural gas to its European neighbors.

Taking a short break - no post this week

I'm taking a short break and expect to post again on Sunday, February 26.

Does the Australian LNG export experience foreshadow soaring U.S. natural gas prices?

Two times last winter Australians living in the country's eastern region paid more than twice as much for natural gas as did Japanese customers taking delivery of liquefied natural gas (LNG) from the same region. (Australia has three separate natural gas pipeline networks which create three domestic natural gas markets, Eastern, Northern and Western.)

The price spikes had eastern natural gas users, particularly business users, hopping mad about what they perceive as foolish energy policy. That policy, they say, gives away Australian energy resources at bargain prices to foreign countries while making domestic industries that are reliant on those resources less competitive because of high energy costs. In addition, the new volatility in gas prices makes planning difficult and expansion financially risky.

The dust-up in Australia has some people thinking that the same thing could happen in the United States, something I pointed out in 2013. In the United States the Federal Energy Regulatory Commission has approved natural gas export terminals with a capacity of 17 billion cubic feet (bcf) per day. That represents 19 percent of current U.S. natural gas production. If all terminals for which applications are pending or expected are included, the number goes up to 42 bcf per day or about 47 percent of current production. Only one U.S. export facility is currently in operation in the lower 48 states. Another facility in Alaska has been exporting LNG to Asia since 1969.

Risk, double-edged swords and imagining the worst

A friend of mine recently said that intellectual honesty often requires imagining the worst. Of course, in the study of climate change and natural resources one needs only to read the analyses of scientists to imagine the worst.

Imagining the worst is not necessarily the same as believing the worst is inevitable or even likely. It can be merely a standard part of both scenario and emergency planning. Of course, imagining the worst can also be a double-edged sword with a sinister edge, sometimes eliciting Richard Hofstadter's paranoid style of politics.

When we imagine the worst concerning our political opponents or our enemies (sadly often placed into the same category), this is merely a reflex designed to justify our own hatreds and also a tool for broadly smearing those with whom we disagree. Clearly, this is not the same as seeking out solid evidence and using logic to construct a worst-case scenario.

In scenario planning the whole point is to consider seriously a range of possible outcomes and formulate plans for dealing with those outcomes. For example, the U.S. Energy Information Administration (EIA) reference case for world oil production (defined as crude oil and lease condensate) shows it rising from about 76 million barrels per day (mbpd) in 2012 to 99.5 mbpd in 2040. The low production case is 92 mbpd and the high production case is almost 103 mbpd.

Trump's wall and the imaginary lines we draw

There was quick reaction to President Donald Trump's announcement last week that he plans to follow through on his campaign pledge to build a wall on the U.S.-Mexican border. Conservative and liberal commentators alike were channeling their inner Robert Frost, referencing his poem "Mending Walls" that starts "Something there is that doesn't love a wall" and contains the well-known proverb, "Good fences make good neighbors."

It is worth remembering that this border is an imaginary line we draw ourselves. It's true that the Rio Grande separates Texas and Mexico. But much of the rest of the border is dirt. The only way to see the border is to draw a line.

Animals don't really respect borders the way we'd like them to. The jaguars, gray wolves and ocelots which depend on ranges that cross the U.S.-Mexican border don't see it. Humans can detect the human signs of a border. But they tend to think about how to get across it rather than how to stay on one side. Even East Berliners in the days of the famously lethal Berlin Wall found ways to get across to West Berlin. They went up, around, under and through it again and again.

Which species are we sure we can survive without?

As a new administration takes over in Washington, both houses of Congress and the presidency will be in the hands of one party. As it turns out, that party, the Republicans, want to curtail the protections of the Endangered Species Act (ESA). Many Republicans complain that the act hinders ranching, logging, oil and gas exploration and water projects.

The key question they are not asking is this: Which species are we sure we can survive without? More on that later.

The act has in practice been used "for control of the land," says one congressman, and not for the rehabilitation of species. His statement stems from a misunderstanding about what it takes to revive an endangered species, namely habitat. That means the land, air, water and other species (plant and/or animal) which any particular species depends on in order to survive.

First, it's important to understand how humans and, in fact, all organisms obtain the resources they need. There are basically two strategies, takeover and drawdown. Takeover simply refers to taking over the habitat of other species to extract resources.

Neoliberals know the price of everything and the value of nothing

My father likes to say that some people know the price of everything and the value of nothing. The same could be said of the neoliberals of the world, who--in case you missed my previous piece--are now transcendent in most policy circles across the world.

To review, the neoliberal agenda is one of deregulation, unfettered trade, fiscal austerity (with the attendant reduction in social programs), privatization and tax reduction. Fundamental to the neoliberal ideology is that government regulation and planning of economic activity are inherently flawed and cannot bring about the desired ends of efficiency, prosperity and social harmony.

Instead, price is the great and sufficient transmitter of information across the economy and across society at large. Price is the best barometer for all decisions. Hence, the emphasis on privatizing almost everything in society including education and health care.

Neoliberals believe that voting with your money is at least, if not more important, than voting in elections in a free society. The freer the market, the more choices consumers will have, and the more competitive the market, the better the quality will be.

To confront power, one must first name it: Neoliberalism and the sustainability crisis

Recently, Wisconsin Gov. Scott Walker ordered references to human-caused climate change be deleted from the state Deparment of Natural Resources website. Scientific findings concerning the natural world have become an embarrassment for the neoliberal world view. The answer in this case seems to be to delete them.

But what is the neoliberal world view and why is it important to understand? Paraphrasing theologian Walter Wink British writer George Monbiot explains that in order to confront power, one must first name it. The power Monbiot has in mind is the power of those enacting the neoliberal agenda. He explained in a talk last year that this ideology is embraced by leaders of both the political right and left throughout much of the world.

More disturbing is that few people are aware of this fact, and fewer still can define what neoliberalism is. It's important to understand that this ideology animates much of the governing class on the planet. It's important because this ideology almost completely opposes doing anything serious about climate change or any of the other environmental and social ills which afflict us.

The 100 percent renewable energy future: The good news and the bad news

Authors Richard Heinberg and David Fridley in their recent book Our Renewable Future make the case for a society that runs on 100 percent renewable energy. But they don't pull any punches, giving us both the good news and the bad news.

Okay, here's the good news: A 100 percent renewable energy society is well within our technical capability, and we've taken some important steps already. Now, here's the bad news: The 100 percent renewable energy society is inevitable whether we plan for it or not.

I know the bad news perhaps sounds like good news, but it's not. The bad news may make it seem as if all we have to do is sit back while solar, wind, geothermal, hydroelectric, biomass and other forms of renewable energy are deployed at an ever faster pace. But, what the bad news really implies is that if this deployment process isn't coupled with strenuous efforts to decrease our fossil-fuel energy use dramatically, we may find ourselves in a dystopian energy-starved world with a chaotic climate, a world that little resembles the one we live in now.

Here's the problem as the authors explain it toward the end of the book: "Sound national and international climate policies are crucial: without them, it will be impossible to organize a transition away from fossil fuels and toward renewable energy that is orderly enough to maintain industrial civilization, while speedy enough to avert catastrophic ecosystem collapse."

Happy Holidays--No post this week

I'm taking a holiday break and expect to post again on Sunday, January 1.