80% is a big cut in shale gas…! (page 1 )
Follow-up on Texas from last week. (page 2 )
The $2 gasoline promise. (page 3 )
One billion served. (page 3 )
12 years to first oil production. (page 4 )
There will be no Master Resource Report published September 2nd.
I am taking the Labor Day Weekend off. If there is any important news it will be posted on the web page only.
Energy and Economic Growth
So can the world continue on its path of growth if the primary energy flows from fossil fuels plateau and ultimately decline?
There is little question that China has been a major driver of global growth over the last decade. But how much of this growth has been driven by its exported imbedded energy that is cheaper than its OECD competitors? In addition how much have the OECD consumers been able to hitch a ride on the imbedded energy subsidy outsourced to developing countries like China and India? What happens when that subsidy is removed as the cost of energy climbs?
The following excerpt from the executive summary of a paper produced by the Institute for Integrated Economic Research gives a hint of an answer. Nate Hagen discussed the report on The Oil Drum this week .
“China procures more than 90% of its energy from oil, natural gas and coal. It operates with a much lower energy cost vis-à-vis OECD countries (3-4 cents/kWh of industrial electricity in China vs. 6-11 ct/kWh in most OECD countries). This advantage is driven by a number of factors, but the most important is the predominance of coal in China’s electricity mix, which can be expoloited at low cost. This advantage is further enhanced by lower labour cost and different environmental standards in mining and power generation. Without the use of coal-based electricity, China’s significant competitive advantage would shrink, removing an important driver of its recent growth.”
The full report on “Low Carbon and Economic Growth” is available by clicking this link. (PDF)