Posts Tagged ‘fossil fuels’
A Decade of Oil Prices: The Rise & Fall – January 1999 to December 2008
Posted by: Karl Ramjohn
Following on the earlier (and ongoing) discussions on the the price of oil over the past few years, here is an interesting summary and analysis by Prof. Chris Rhodes of the trends in the price of oil over the past 10 years.
–> Energy Balance: A Recent History of Oil Prices.
In January 1999 the price of a barrel of oil reached a low point of $16 when Iraq increased its oil production at the time of the Asian Financial Crisis when demand for oil fell. Prices then increased rapidly, reaching $35 in September 2000, and after a temporary fall reached $40-50 by September 2004. Crude oil prices surged to a record high above $60 in June 2005, and by early August 2005 hit $65 as consumer demand was maintained. In September 2007, the price of US crude oil broke the $80 barrier. In October 2007 a barrel of US light crude oil exceeded $90 for the first time, due to a combination of tensions in eastern Turkey and a fall in the value of the US dollar. The next psychological watershed of $100 was briefly breached in early 2008, but the price fell again until the end of February after which it remained and rose well above this new setting. Then a visible ramping effect became evident and so the price exceeded $110 on March 12, 2008; $125 on May 9, 2008; $130 on May 21, 2008, $140 on June 26, 2008 and $145 on July 3, 2008. The record was reached on July 3, 2008 at $147.27 as a consequence of geopolitical tensions over Iranian missile tests.
The above data stress the point that the price of oil is highly sensitive to the world political situation and to a general sense of confidence, including that in the stock markets. When the $147 barrel appeared, it did appear there would be no stopping the escalating price of oil, and that by December 2008 a barrel of oil might cost around $150 or more, amid speculation that by the end of 2009, it would be nearer $200. However, oil prices declined by more than $20 over the next two weeks in July 2008, and seemed to stabilise at near $125 a barrel on July 24, 2008. A forcing factor came into play, which was that the very high price of oil had changed people’s behaviour and they were now driving less with a reduced demand for oil. Oil prices then dipped further, reaching $112 a barrel, on August 11, 2008.
On September 15 the $100 psychological barrier was again broken, but in reverse, when the price fell below $100 for the first time in seven months. On October 11 there occurred a massive crash in the value of global equities, with a barrel of oil falling by 10% to $77.70. In consequence of further economic slowdown the price continued to slide and today (December 4, 2008 ) it is trading at around $45 a barrel. Rather than the $200 predicted last summer some analysts are now predicting a $20 barrel sometime during 2009. I must stress, however, that even if this does happen it will be a short-lived event, because the facts of geological limits to production, increased production costs to obtain more difficultly recovered oil and that demand is still rising (demand is simply rising less steeply during this economic recession, but it is still in the ascendant).
“Spatial Footprint” Challenges of Solar Energy Use
Submitted by: Karl Ramjohn
Solar energy can be utilized in either passive or active systems. Passive systems do not contain any internal energy sources, and can be used for direct heating (e.g. solar dryers, water heaters, etc.) or day-time lighting (e.g. “green” office buildings). Photovoltaic devices are an example of active systems based on semiconductor technology, often using silicon (an indirect semiconductor).
The advantages of using solar radiation are well established and often cited – such as their ability (with proper design) to lower energy costs, reduce emissions and other environmental pollution, thereby initiating the process of competitively replacing hydrocarbon use, and thus contributing to sustainable development.
Solar energy approaches are also frequently suggested as a sustainable solution in less-developed countries in the tropical environment, on the assumption of having less seasonal variation in day-length and more hours of direct sunlight each day (i.e., usually a higher intensity and longer duration of incident solar radiation each day). The fuel medium (solar radiation) is also an “open-access” resource (no direct user cost). The overall decline in the operational costs seen over the past 35+ years is also typically acknowledged.
However, one major challenge remains with regard to conversion to solar energy use – their spatial footprint (land use requirement) in the event that larger scale utilization is proven feasible. In particular, for the use of flat-plate collectors or PV systems in tropical environments, this becomes an issue.
The primary reason is that to optimize the use of solar radiation, the panels (or plates) need to be sloped so as to correspond to the latitude of the specific area of the Earth, hence taking up more horizontal space in the tropics. If we take the example of an island in the middle-tropics such Trinidad & Tobago, implementation will require the slope of the panels to be 10 degrees (corresponding to latitude) for the same technology that may be placed at an angle of 40 degrees in countries within temperate regions. The implication is that the area set aside for power generation (or other solar energy use) will no longer be available for other land uses (such as agriculture) and this may be a significant limiting factor, especially in the case of small-island developing states. After all, any large-scale conversion will require much more than a rooftop, and island geography often restricts the feasibility of wind energy.
Some recent discussions aimed at solving or mitigating these potential challenges to sustainable energy:
http://cr4.globalspec.com/thread/20329
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