Daily Caller
The Silly Peak Oil Debate Rages On
From the Daily Caller News Foundation
“What the Outlook underscores is that the fantasy of phasing out oil and gas bears no relation to fact,” said OPEC Secretary General Haitham Al Ghais
Analysts and professionals in the global energy space have long debated the prospects for reaching peak demand for crude oil. It is an issue that has long sparked debate, some of which becomes emotional among highly invested stakeholders on one side or the other.
In recent years, such stakeholders risk developing cases of whiplash when considering the competing perspectives about this “peak oil” matter published by OPEC and the International Energy Agency (IEA).
IEA has spent the last 12 months predicting an earlier advent of the peak oil phenomenon than pretty much any other experts envision, saying it will come about sometime in this decade, no later than 2030. Not surprisingly, the agency’s analysts doubled down on that projection in its most recent monthly Oil Market Report.
In a section titled “When the Music Stops,” the IEA focused on short-term factors like slowing demand growth in China, where oil consumption has declined year-over-year for the past four months. Noting that Chinese demand growth has slowed to an estimated 180,000 barrels per day (bpd) across 2024, the agency leaned on that data point as a reason to lower its estimated global demand growth to 800,000 bpd.
The same section also pointed to the isolated slowing of U.S. gasoline-deliveries growth in June — a factoid that could simply be statistical noise — as support for its annual growth forecast. But a slowdown in crude demand growth is no surprise, given that economic growth has been slowing throughout 2024. This direct cause-and-effect phenomenon has been a consistent aspect of oil markets across history. It is also a short-term factor whose impact will ultimately be diminished by subsequent events.
In contrast, OPEC’s projections over the past year regarding near-term global demand growth and the anticipated peak in oil demand have reached diametrically opposite conclusions. Last summer, the cartel projected global growth in crude demand for 2024 would be a robust 2.25 million bpd. Slowing economic growth has led OPEC’s analysts to lower that initial prediction over the past two months, but only to 2.1 million bpd — more than double that of both IEA and the U.S. Energy Information Administration (EIA).
Where the concept of peak oil demand is concerned, OPEC has held to an even more oil-bullish stance, stating its projections do not see that threshold being reached anytime during its projection timeframe through 2050. In its annual Global Outlook published last week, OPEC sees oil demand growing by that year to 120 million bpd, a rise of 18 million bpd from current levels.
“What the Outlook underscores is that the fantasy of phasing out oil and gas bears no relation to fact,” said OPEC Secretary General Haitham Al Ghais in the forward to the report.
Al Ghais also pointed out the fact that: “Over the past year, there has been further recognition that the world can only phase in new energy sources at scale when they are genuinely ready, economically competitive, acceptable to consumers and with the right infrastructure in place.” This undeniable reality means that projections of oil demand in the transportation sector being crushed by alternatives like EVs and hydrogen cars are almost certainly overly optimistic. The rapidly faltering market demand for EVs strongly supports that likelihood.
Al Ghais also contends that a “realistic view of demand growth expectations necessitates adequate investments in oil and gas, today, tomorrow, and for many decades into the future.” That contention stands in contrast to the IEA report released in May, 2021, in which IEA Director Fatih Birol urged an immediate halt in all new investments in the finding and development of new oil resources in order to fight climate change. By August of that year, Biral was comically urging oil companies to increase their oil production in order to help re-balance an undersupplied global market.
Episodes like that have led many to question whether IEA bases its projections related to oil markets on data or on wishful thinking. The validity of such questions was only reinforced when Birol announced early this year that the agency’s mission was being expanded into outright advocacy for promoting the energy transition.
So, who is right? We’ll find out in 2030, but the smart money is on the group with billions riding on the answer.
David Blackmon is an energy writer and consultant based in Texas. He spent 40 years in the oil and gas business, where he specialized in public policy and communications.
Daily Caller
Former FBI Asst Director Warns Terrorists Are ‘Well Embedded’ In US, Says Alert Should Be ‘Higher’
Chris Swecker on “Anderson Cooper 360” discussing terror threat
From the Daily Caller News Foundation
By Hailey Gomez
Former FBI Assistant Director Chris Swecker warned Friday on CNN that terrorists are “well embedded” within the United States, stating the threat level should be “higher” following an attack in Germany.
A 50-year-old Saudi doctor allegedly drove his car into a crowded Christmas market in Magdeburg, Germany on Friday leaving at least two people dead and nearly 70 injured so far. On “Anderson Cooper 360,” Swecker was asked if he believes there is a potential “threat” to the U.S. as concerns have risen since the “fall of Afghanistan.”
“I think so,” Swecker said. “I mean, we’ve heard FBI Director Chris Wray talk about this in conjunction with the relative ease of getting across the southern border. And, you know, there’s no question that terrorists have come across that border, whether they’re lone terrorists or terrorist cells. And they’re well embedded inside this country.”
WATCH:
“I’ve worked terrorist cases. Hezbollah has always had a presence here. They raise funds here, and they can always be called into action as an active terrorist cell,” Swecker added. “So I think the alert here, especially around Christmas time, is elevated. It probably ought to be higher than what it is right now, because I mentioned that complacency earlier. And I fear that complacency as someone who has a background in this field.”
Concerns over the Biden-Harris administration’s handling of the U.S. southern border have raised questions over the vetting process of illegal immigrants entering the country.
On Tuesday United States Border Patrol (USPB) Chief Jason Owens announced in a social post that an unidentified South African national who was “suspected of terror” was arrested in Brooklyn, N.Y. The illegal immigrant had originally been detained in Texas for criminal trespassing but was released due to the “information available at the time.”
In August an estimated 99 individuals on the U.S. terrorist watch list had been released into the country after crossing through the southern border, according to a congressional report. The report found that between fiscal years 2021 and 2023 USBP agents encountered more than 250 illegal migrants on the terrorist watchlist, with nearly 100 of those individuals being later released into the U.S. by the Department of Homeland Security.
Daily Caller
LNG Farce Sums Up Four Years Of Ridiculous Biden Energy Policy
From the Daily Caller News Foundation
By David Blackmon
That is what happens when “science” isn’t science at all and energy reality is ignored in favor of the prevailing narratives of the political left.
As Congress struggled with yet another chaotic episode of negotiations over another catastrophic continuing resolution, all I could think was how wonderful it would be for everyone if they just shut the government down and brought an end to the Biden administration and its incredibly braindead and destructive energy-policy farce a month early.
What a blessing it would be for the country if President Joe Biden’s Environmental Protection Agency (EPA) were forced to stop “throwing gold bars off the Titanic” 30 days ahead of schedule. What a merry Christmas we could have if we never had to hear silly talking points based on pseudoscience from the likes of Biden’s climate policy adviser John Podesta or Energy Secretary Jennifer Granholm or Biden himself (read, as always, from his ever-present TelePrompTer) again!
What a shame it has been that the rest of us have been forced to take such unserious people seriously for the last four years solely because they had assumed power over the rest of us. As Jerry Garcia and the Grateful Dead spent decades singing: “What a long, strange trip it’s been.”
Speaking of Granholm, she put the perfect coda to this administration’s seemingly endless series of policy scams this week by playing cynical political games with what was advertised as a serious study. It was ostensibly a study so vitally important that it mandated the suspension of permitting for one of the country’s great growth industries while we breathlessly awaited its publication for most of a year.
That, of course, was the Department of Energy’s (DOE) study related to the economic and environmental impacts of continued growth of the U.S. liquified natural gas (LNG) export industry. We were told in January by both Granholm and Biden that the need to conduct this study was so urgent, that it was entirely necessary to suspend permitting for new LNG export infrastructure until it was completed.
The grand plan was transparent: implement the “pause” based on a highly suspect LNG emissions draft study by researchers at Cornell University, and then publish an impactful DOE study that could be used by a President Kamala Harris to implement a permanent ban on new export facilities. It no doubt seemed foolproof at the Biden White House, but schemes like this never turn out to be anywhere near that.
First, the scientific basis for implementing the pause to begin with fell apart when the authors of the draft Cornell study were forced to radically lower their emissions estimates in the final product published in September.
And then, the DOE study findings turned out to be a mixed bag proving no real danger in allowing the industry to resume its growth path.
Faced with a completed study whose findings essentially amount to a big bag of nothing, Granholm decided she could not simply publish it and let it stand on its own merits. Instead, someone at DOE decided it would be a great idea to leak a three-page letter to the New York Times 24 hours before publication of the study in an obvious attempt to punch up the findings.
The problem with Granholm’s letter was, as the Wall Street Journal’s editorial board put it Thursday, “the study’s facts are at war with her conclusions.” After ticking off a list of ways in which Granholm’s letter exaggerates and misleads about the study’s actual findings, the Journal’s editorial added, “Our sources say the Biden National Security Council and career officials at Energy’s National Laboratories disagree with Ms. Granholm’s conclusions.”
There can be little doubt that this reality would have held little sway in a Kamala Harris presidency. Granholm’s and Podesta’s talking points would have almost certainly resulted in making the permitting “pause” a permanent feature of U.S. energy policy. That is what happens when “science” isn’t science at all and energy reality is ignored in favor of the prevailing narratives of the political left.
What a blessing it would have been to put an end to this form of policy madness a month ahead of time. January 20 surely cannot come soon enough.
David Blackmon is an energy writer and consultant based in Texas. He spent 40 years in the oil and gas business, where he specialized in public policy and communications.
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