Iraq crisis: India braces for Rs 20,000 cr hole in budget as oil could rise to $120 per barrel
India’s government sees oil prices going as high as $120 per barrel for three to four months because of fighting in Iraq, potentially driving a hole of at least Rs 20,000 crore ($3.4 billion) in the budget, two government sources told Reuters. “If the oil prices remain high even for 3-4 months around $120 a barrel, it could have a significant impact on the fiscal deficit and economic growth,” a senior Finance Ministry official told Reuters on condition of anonymity.
International Energy Agency Says the Party’s Over
By Richard Heinberg, Postcarbon.org
The International Energy Agency has just released a new special report called “World Energy Investment Outlook” that should send policy makers screaming and running for the exits—if they are willing to read between the lines and view the report in the context of current financial and geopolitical trends. (Editor’s Note: Other reports, especially in the mainstream business press, have claimed the same IEA report as hailing a new era of oil abundance (see link below for an example). Such extremely contradictory views are typical when it comes to the future of oil, and reflect the high stakes involved).
IEA sees shale oil boom spread beyond N.America
By G. Chandrashekhar, The Hindu BusinessLine
Over the next five years, global oil demand growth will slow, OPEC capacity growth will face headwinds and regional imbalances in gasoline and diesel markets will widen, the International Energy Agency (IEA) has said in its annual five-year oil market outlook report released today in Paris. Forecasting that the unconventional supply revolution in the form of shale oil boom currently sweeping North America will expand to other region before the end of the decade, IEA said that in five years, North America will have the capacity to become a net exporter of oil liquids.
A Closer Look at Saudi Arabia
By Ron Patterson, Peakoilbarrel.com
Approximately 60–65% of all Saudi oil produced between 1948 and 2000 came from the Ghawar oil field. Cumulative production until April 2010 has exceeded 65 billion barrels. It was estimated that Ghawar produced about 5 million barrels of oil a day (6.25% of global production) in 2009. Ghawar also produces approximately 2 billion cubic feet of natural gas per day. After 60 years of production, the field is depleted, and so are other leading Saudi oil fields.
The inevitable demise of the fossil fuel empire
By Nafeez Ahmed, the Guardian
Since 2000, the oil industry’s investments have risen by 180% – a threefold increase – but this has translated into a global oil supply increase of just 14%. Two-thirds of this increase has been made-up by unconventional oil and gas. In other words, the primary driver of the cost explosion is the shift to expensive and difficult-to-extract unconventionals due to the peak and plateau in conventional oil production since 2005.
Pentagon preparing for mass civil breakdown
By Nafeez Ahmed, the Guardian
A US Department of Defense (DoD) research programme is funding universities to model the dynamics, risks and tipping points for large-scale civil unrest across the world, under the supervision of various US military agencies. Launched in 2008 – the year of the global banking crisis – the DoD ‘Minerva Research Initiative’ is a multi-million dollar programme designed to develop immediate and long-term “warfighter-relevant insights” for senior officials and decision makers in “the defense policy community,” and to inform policy implemented by “combatant commands.”
China Leads World to Solar Power Record in 2013
By J. Matthew Roney, Earth Policy Institute
China—the leading manufacturer of PV—had until recently installed very little solar power at home. Those days are over. Between 2010 and 2012, China’s PV capacity grew nearly ninefold to 7,000 megawatts. Then in 2013, China added at least 11,300 megawatts, the largest PV addition by any country in a single year. With 18,300 megawatts, China now trails only Germany (at 36,000 megawatts) in overall capacity.
Want to Change the World? Read This First
by Richard Heinberg, Resilience.org
History is often made by strong personalities wielding bold new political, economic, or religious doctrines. Yet any serious effort to understand how and why societies change requires examination not just of leaders and ideas, but also of environmental circumstances (climate, weather, and the presence or absence of water, good soil, and other resources). If you want to change society—or are interested in aiding or evaluating the efforts of others to do so—some understanding of exactly how environmental circumstances affect such efforts could be extremely helpful.