Tuesday, April 26, 2005

More Signs of Hubbert Oil Peak


The good news just pours in, doesn't it?

Indonesia denies quitting OPEC

Jakarta, April 26 (Xinhuanet) -- Indonesian Energy and Mineral Resources Minister Purnomo Yusgiantoro here Tuesday denied reports that Indonesia had sent a letter to the OPEC (Organization of Petroleum Exporting Countries) secretariat general to downgrade its status in the organization from member to observer.

"I have checked with the Foreign Affairs Ministry. There has been no such letter (to OPEC)," Purnomo was quoted by the Antara news agency as saying.

The reports said the Foreign Affairs Ministry had made a recommendation on Indonesia's membership in OPEC to free the country from the obligation to pay 1 million US dollars annual membership fee.

In its recommendation, the ministry reportedly provided several options for the government among others to maintain Indonesia's membership in OPEC until it turned into a net importer of oil, which would mean the country could no longer comply with OPEC requirements.

It also recommended the country's withdrawal from OPEC or change of status from member to observer.

A short arcane article. Here is some background: Indonesia is becoming oil importer

Bloomberg news

The country may turn to importing a net 61,000 barrels a day this year from net exports of 27,000 barrels a day in 2004, based on figures in a document prepared for the Energy and Mineral Resources Ministry and obtained by Bloomberg News.

Indonesia has failed since early 2002 to meet its output quota, currently at 1.425 million barrels a day, from the Organization of Petroleum Exporting Countries. An end to Indonesia's status as an oil exporter would threaten its membership of the group, led last year by Indonesia's Oil Minister Purnomo Yusgiantoro.

Global oil prices have reached records because of limited spare output capacity among OPEC's members and increased demand from China, whose imports have risen over the past decade from zero to 41 percent of local consumption. Domestic production has failed to keep pace with demand that more than doubled to about 6.38 million barrels a day in 2004.

This is pretty significant. Indonesia's history should raise more than just my eyebrows:

Indonesian Oil History

Indonesia's oil industry is one of the oldest in the world. Oil in commercial quantities was discovered in northern Sumatra in 1883, leading to the establishment of the Koninklijke Nederlandsche Maatschappij tot Exploitatie van Petroleum-bronnen in NederlandschIndiƫ (Royal Dutch Company for Exploration of Petroleum sources in the Netherlands Indies) in 1890, which was merged in 1907 with the Shell Transport and Trading Company, a British concern that had been drilling in Kalimantan since 1891, to form Royal Dutch Shell. Royal Dutch Shell dominated colonial oil exploration for more than thirty years. By 1911 Royal Dutch Shell operated concessions in Sumatra, Java, and Kalimantan (then called Borneo), and Indonesian oil was almost 4 percent of total world production.

The Saudis admitted today that far from increasing their pumping, they are at their limit.

I lived for a while in the Hohokum reservation in Tucson, Arizona. It pleases me to see this news:

Hohokam flips solar switch

Six Tucson schools will have solar energy systems installed over the next year to both save money on their electrical bills and teach students about renewable energy.

Hohokam Middle School, in the Tucson Unified District, flipped the switch on its new system Wednesday.

"Many students don't know what solar panels look like, which is a travesty given we live in an area where the sun shines year-round," said Hohokam science teacher Ariana Wilder. "We can discuss directly how they'll benefit us in the school."

Mitsubishi Solar Panels...history.
chartSeems their stock has doubled in value in the last 16 months...hmmm.

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