EIA
admits that it "reverse-engineers" studies!!
"Wherever men hold unequal power in society, they will
strive to maintain it. They will use whatever means are convenient to that end
and will seek to justify them by the most plausible arguments they are able to
devise." -- Reinhold Neibuhr
The US Energy Information Agency (EIA) admits studies are
"reverse-engineered" in order to keep the liberal economic program
intact!!! See page 221 in http://www.eia.doe.gov/pub/pdf/multi.fuel/038398.pdf "These
adjustments to the USGS [US Geological Survey] and MMS [Materials Management
Service] estimates are based on non-technical considerations that support
domestic supply growth to the levels necessary to meet projected demand
levels." Translation: "We cooked the books to
satisfy our political agenda."
So ask yourself: "How much oil did the EIA need to find in its computer models so that Boeing
could keep selling 747s? How much oil did the EIA need
to find so General Electric could keep selling combustion turbines?
How much oil did the EIA need to find to
keep the oil companies from being nationalized? How much oil did the EIA
need to find so that Islamic militants and
terrorists wouldn't be tempted to use the 'oil weapon'? How much oil did the
EIA need to find so that Canada would keep
sending her dwindling fossil fuels south?"
USGS Assessment 2000 by Richard C.
Duncan [duncanrc@halcyon.com], 02/20/2001 Published on the
http://groups.yahoo.com/group/energyresources
mailing list.
ABSTRACT: This is a review of some of strengths
and weaknesses of the USGS 2000 Report. Briefly put: Despite its shortcomings
(discussed later), IMO, it is an innovative and potentially very useful
document.
OVERVIEW:
I. EIA AEO98 Report: The EIA is the public relations
department of the USDOE and, IMO, it's "Annual Energy Outlook 1998" (AEO98) is,
at best, not a useful document. Per Tom and Jay, "Reverse-engineering" is an
accurate description. No further comment is needed.
II. USGS 2000 Report: A colleague and I recently spent
several weeks reviewing the "USGS World Petroleum Assessment 2000 --
Description and Results" comprising some 32,000 pages and available free (1) on
4 CDs, and (2) on the USGS web site. Fortunately, most of the important
information is contained in about 300 pages. Briefly said: We find USGS 2000
report to be a landmark assessment of the world "Grown Conventional Petroleum
Endowment". Moreover, it contains an innovative new and evolving (but yet
unproven!) method for predicting the 'growth' of undiscovered petroleum fields
and reserves. That said, the USGS 2000 report can be very useful, but it must
be used with care and caution!
This review describes and gives examples of some of the
strengths and weaknesses of the USGS 2000 report. Don't worry about
understanding ALL about the report. Nobody does. In fact, it was done by a
large team of geologists and supported by as many statisticians and
technicians. Moreover, all the basic petroleum data they used, in their own
words, "is proprietary". i.e. We can't even review it.
Definitions: "Grown Conventional Petroleum Endowment (GCPE):
The sum of known petroleum volume (cumulative production plus remaining
reserves), the mean of the undiscovered volume, and additions to reserves by
reserve growth." Also, "BBO" and "Gb" mean the same thing.
The "world petroleum reserves" and the "world undiscovered
petroleum volume" are both "grown" by a "30-Year Growth Multiplier" that is
statistically derived from (sic) the US petroleum production and reserves
historical data. This is both a major strength and THE MAJOR WEAKNESS of the
USGS 2000 report, as discussed below.
DISCUSSION:
The USGS 2000 divides the world into 8 geographic
regions: 1. Former Soviet Union 2. Middle East and North Africa 3.
Asia Pacific 4. Europe 5. North America 6. Central and South
America 7. Sub-Saharan Africa and Antarctica 8. South Asia
Each region is divided into 'Provinces', Provinces are
divided into 'Total Petroleum Systems' (TPS), and the TPS are divided into
'Assessment Units' (AU). The study began in 1995 and was released in 2000 --
hence "USGS 2000". Several databases were used. The USGS 2000 world assessment
did NOT study the United States petroleum system, but it DID include previous
assessments of the US by a USGS report (1995) and a Minerals Management System
report (1996). All USGS production and reserves data are normalized to 1/1/96.
Petroleum geologists (mostly from the USGS, but a few contractors as well)
assessed each AU for the 30-year period from 1995 to 2025. Then, as one USGS
geologist later revealed, "We tossed the assessments over the fence to the
statisticians."
NB: Contributors to USGS 2000 include several respected
petroleum geologists whose names frequently appear (or are mentioned) on this
energy-resources newsgroup. Nonetheless, CARE AND CAUTION is advised in using
the USGS Assessment 2000.
CAUTION #1: SOMETHING TO PLEASE (ALMOST) EVERYBODY
The USGS 2000 divides the petroleum assessments into
'categories of probability': F95, F50 (i.e. median), F5, and Mean (i.e.
arithmetic mean). "F" means fractile, as defined by the USGS: "Probability:
Probability (including both geologic and accessibility probabilities) of at
least one field equal to or greater than the minimum assessed field size.
Results are fully risked estimates. ... F95 represents a 95 percent chance of
at least the amount tabulated. Other fractiles are are defined similarly."
EXAMPLE #1:
The Executive Summary (ES), Table 1, "World Level Summary
[including the US] of Petroleum Estimates for Undiscovered Conventional
Petroleum and Reserve Growth for Oil, Gas, and Natural Gas Liquids (NGL),"
lists the following world total "Grown Conventional Oil Endowment (GCOE)" in
billion barrels (Gb): TOTAL GCOE at F95 = (approx.) 2,000 Gb TOTAL GCOE
at F50 = (approx.) 2,700 Gb TOTAL GCOE at F5 = (approx.) 4,900 Gb TOTAL
GCOE Mean = (approx.) 3,000 Gb
The values of the world GCOE (above) range from 2,000 Gb for
F95 to 4,900 Gb for F5. Moreover, because the world oil production in 1995 was
24.7 Gb and the cumulative production at end-1995 was 539 Gb, this suggested to
many, IMO, that that we had a fat cushion somewhere between 1,461 Gb and 4,361
Gb for future production, i.e. GCOE/Prod = 59 to 177 years before the world
would "run out of oil". (Kind of like the ubiquitous, but misleading, P/R
ratio.) If true, then there was/is plenty of time for the scientists and
engineers to discover and tap vast amounts of positive 'net energy' (EROEI)
from e.g. 'oil shale', methane hydrates, deuterium-helium.3 fusion, and the
quantum vacuum. Thus the USGS 2000 report, IMO, is likely to mislead all
those people who don't dig deeper.
CAUTION #2: GROWING PETROLEUM RESERVES (ON PAPER)
BACKGROUND:
Four previous USGS assessments were made, but each contained
only a SINGLE CATEGORY for "Undiscovered Conventional Oil Resources". USGS 2000
Table RV-1, "Summary of Previous USGS World Petroleum Assessments (which
include the United States)" gives the following previous USGS assessments of
the mean "Total Oil Resources". The "Effective Date of Assessment" is shown
first followed by "Total Oil Resources" in billions of barrels (BBO):
1/1/81: 1,719 BBO. 1/1/85: 1,744 BBO. 1/1/90: 2,171 BBO.
1/1/93: 2,273 BBO.
But then the SINGLE CATEGORY of "Undiscovered Conventional
Resources" (see above) was expanded the USGS 2000 report into TWO CATEGORIES,
namely "Undiscovered Conventional" AND "Reserve Growth (Conventional)" as given
in Table 1 of the Executive Summary (chapter ES). As a result, the USGS 1/1/93
value of 2,273 BBO (listed above) "grew" to a whopping (sic) 3,021 BBO in the
USGS 2000 report.
So how did this happen? The key concepts are "growth",
"grown" and "adjusted upward". Three definitions will be useful (there are many
more in the USGS 2000 Glossary, chapter GL). "Grown Conventional Petroleum
Endowment (GCPE): This was previously defined. "Grown Petroleum Volume:
Known petroleum adjusted upward to account for future reserve growth. For this
assessment, 30 years of reserve growth is considered." "Known Petroleum
Volume: The sum of cumulative production and remaining reserves as reported in
the databases used in this assessment."
EXAMPLE #2:
The USGS report dated 1/1/93 (see Table RV-1, USGS 2000)
lists world mean "Undiscovered Conventional Oil Resources" at 471 BBO (i.e. ONE
CATEGORY ONLY). In contrast, the USGS 2000 (Table 1, Executive Summary, ES)
lists world mean "Undiscovered" at 1,251 BBO (sic) comprising the following TWO
CATEGORIES: (1) "Undiscovered Conventional" = 649 BBO, and (2) "Reserve growth
(conventional)" = 612 BBO, wherein 649 + 612 = 1,261 BBO. An increase (i.e.
"growth") of (sic) 780 BBO between the USGS 1/1/93 report and the USGS 2000
report (i.e. 780 = 1,251 - 471).
In this example #2 I'll only only show how the "Reserve
Growth (conventional)" of 612 BBO (above) was calculated in the USGS 2000
report for the world (excluding the US) by the following formula:
Reserve Growth (conventional) = (Known Petroleum Volume) *
(30-Year Growth Multiplier) = ( 859 + 539 ) * (0.44) = 612 BBO (neglect
rounding)
The Known Petroleum Volume (above) comes from Table 1,
chapter ES. The 30-Year Growth Multiplier (above) comes from Table RGApp-1 and
Figure RG-1.
One BIG "elephant in the ointment" is that the 30-Year
Growth Multipliers for world oil (and gas and NGL) are all derived from the US
Lower-48 petroleum production data. Then the Growth Multipliers are applied in
one-final-fell-swoop to the WHOLE WORLD, as shown in the above example. (Shades
of Zapp [or was it McKelvey? ca. 1955] who extrapolated the Texas oil
production data to the entire US onshore Lower-48 and came up with an EUR of
about 600 BBO -- wherein it now appears to be only about 200 BBO.) The USGS is
well aware of this, and other, shortcomings with this initial attempt to
forecast world petroleum growth --
"The forecast of world potential reserve growth described
here is considered to be preliminary. Much work remains to be done on the
subject of world potential reserve growth. The present study is an attempt to
provide a numerical hypothesis for world potential reserve growth that is
valuable in itself, and will perhaps act as a stimulus for discussion and
research aimed at reducing the uncertainty of world reserve-growth estimates."
(USGS 2000, RG-4)
BOTTOM LINE: The USGS 2000 report, IMO, is an
innovative and valuable contribution to world petroleum forecasting. As the
methodology for assessing and "growing fields and reserves" evolves, the
uncertainty will be reduced, and the estimates for the world Grown Conventional
Oil Endowment will converge somewhere between 2000 and 2200 BBO (i.e. near the
F95 estimate in the USGS 2000 report). The peak of world oil production is
within sight.
END NOTES: 1. As far as I know, Colin J Campbell
months ago was first to observe that the USGS 2000 F95 values for the volume of
world conventional oil are realistic. 2. More recently, Jay Hanson
suggested the importance of taking a close look at North American natural gas
(NG) supplies. This has now been done and will be reported in a separate
email. Rich Duncan, 2-20-01

EIA
admits that it "reverse-engineers" studies!!
The US Energy Information Agency (EIA) admits
studies are "reverse-engineered" in order to keep the liberal
economic program intact!!! See page 221 in http://www.eia.doe.gov/pub/pdf/multi.fuel/038398.pdf "These
adjustments to the USGS [US Geological Survey] and MMS [Materials Management
Service] estimates are based on non-technical considerations that support
domestic supply growth to the levels necessary to meet projected demand
levels." Translation: "We cooked the books to
satisfy our political agenda." So ask yourself: "How much oil did
the EIA need to find in its computer models
so that Boeing could keep selling 747s? How much oil did the EIA need
to find so General Electric could keep selling combustion turbines?
How much oil did the EIA need to find to
keep the oil companies from being nationalized? How much oil did the EIA
need to find so that Islamic militants and
terrorists wouldn't be tempted to use the 'oil weapon'? How much oil did the
EIA need to find so that Canada would keep
sending her dwindling fossil fuels south?"
What's a liberal? See
http://www.globalexchange.org/economy/econ101/neoliberalDefined.html See
the politics of economic liberalism at
http://arts.adelaide.edu.au/person/DHart/ClassicalLiberalism/IHS/KeyLiberalIdeas.html
Energy Synopsis at:
http://dieoff.com/synopsis.htm Abstract:
Petroleum geologists have known for 50 years that global oil production would
"peak" and begin its inevitable decline within a decade of the year 2000.
Moreover, no renewable energy systems have the potential to generate more than
a tiny fraction of the power now being generated by fossil fuels. In short, the
end of oil signals the end of civilization, as we had known it. See the
details at: http://dieoff.com/synopsis.htm
Why does your
government lie to you?
THE POLITICS OF LYING: Implications for Democracy, by
Lionel Cliffe, Maureen Ramsay, Dave Bartlett; St. Martin's Press, 2000
http://www.amazon.com/exec/obidos/ASIN/0312231393/brainfood.a
"All this was inspired by the principle -- which is quite
true in itself -- that in the big lie there is always a certain force of
credibility; because the broad masses of a nation are always more easily
corrupted in the deeper strata of their emotional nature than consciously or
voluntarily, and thus in the primitive simplicity of their minds they more
readily fall victims to the big lie than the small lie, since they themselves
often tell small lies in little matters but would be ashamed to resort to
large-scale falsehoods. It would never come into their heads to fabricate
colossal untruths, and they would not believe that others could have the
impudence to distort the truth so infamously. Even though the facts which prove
this to be so may be brought clearly to their minds, they will still doubt and
waver and will continue to think that there may be some other explanation. For
the grossly impudent lie always leaves traces behind it, even after it has been
nailed down, a fact which is known to all expert liars in this world and to all
who conspire together in the art of lying. These people know only too well how
to use falsehood for the basest purposes." -- Adolf Hitler
"Wherever men hold
unequal power in society, they will strive to maintain it. They will use
whatever means are convenient to that end and will seek to justify them by the
most plausible arguments they are able to devise." -- Reinhold Neibuhr
"Ever since its inception, US government has been the
plaything of the rich. In short, we now have the best government money can buy.
But now that the country is facing a crisis of unprecedented proportions, we
actually need a government that can think and act on behalf of the common good.
What a mess... " Jay -- 2-26-01 |