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One of my favorite things is to connect two major news stories, each of which is credible on its own, but one of which cancels the other. One of my least favorite things is the shoddy journalism that goes into one of the stories. So today is the best of days, and the worst of days.
Story number one is alarming on its face, and at that somewhat understates the danger: “Alaska: One of the World’s Largest Pipelines Threatened by Thawing Permafrost,” blares one of the many headlines seen around the world. The fact is, the pipeline is doomed. On the other hand, it’s not going to matter very much.
The problem is that the relentlessly rising temperatures in the north are melting the permafrost on which a good deal of the pipeline rests. One area in particular — an 800-foot section on a slope that is the subject of this story — has begun to slide, twisting the pipeline’s structural supports and threatening a rupture. Engineers are trying to refrigerate the permafrost in this particular area with 100 devices called thermosyphons approved two years ago because — dwell on this a moment — the engineers knew this was going to happen. (Can you say “desperation?”) But they have only now begun to install them. Now that the ground is actually in motion.
Given the inevitable, continued rise in temperatures for the foreseeable future, a failure of the pipeline, sooner or later, is certain. The second story, appearing at about the same time but certainly not in the same publications, explains why I don’t care, and you shouldn’t either.
The Alaska Pipeline may be one of the world’s largest, but it is no longer one of the world’s most important. Story Number Two, put out by our own federal government’s Energy Information Agency, bears the headline: Oil production in Alaska reaches lowest level in more than 40 years. From its peak of two million barrels a day in the late 1980s, the state’s production has fallen below half a million barrels per day.
As a result, the Alaska Pipeline is a shadow of its former self, carrying one-quarter of the oil it transmitted 25 years ago. In winter, the pipeline must move at least 350,000 gallons per day or the oil slows down, cools down and congeals. In other words, it stops. So here we have a massive, 800-mile-long industrial installation that requires more and more spending, for pumps, heaters and ground refrigeration (!) to continue to move less and less oil. How’s that for a business plan.
But, like so many of the industrial merry-go-rounds on which we whirl, nobody can get off this one. The state of Alaska has few other sources of income, it does not levy a personal income tax or a sale tax. Revenues from the oil and gas industry not only fund two-thirds of the state’s annual budget, but generate a dividend check every year for every resident. That dividend check is getting smaller every year, and every year there is less revenue for the state, and the words “income tax” are heard more frequently these days in the cold Alaska winds — and in the Alaska legislature. But resistance is fierce, and it seems certain that, rather than do what must be done, Alaska will ride the merry-go-round until the merry-go-round stops.
Which it will soon, of course. But here’s why this will not be the disaster for the country that ill-informed journalists assume. Today Alaska provides just four per cent of the crude oil consumed by the United States. Its loss will wound, but will certainly not kill.
” … a massive, 800-mile-long industrial installation that requires more and more spending, for pumps, heaters and ground refrigeration (!) … ”
A worthy exclamation point. Immediately reminded me of the pride Vince Lombardi took in the heating coils installed underneath Lambeau Field to unfreeze the Frozen Tundra; but in reverse, so to speak.
Fortunately for Vince, they didn’t work on a late December day in ’67, and the rest is history.
Excellent read. I wonder what the former leader of the former petro-state,* Sarah Palin, is doing these days.
*Former petro-state. Got a lot of those these days.
2nd paragraph, “and at that somewhat”, redundant at.
“rather than do what must be done” – depopulate?
You have stated a minimum flow to keep the oil moving. I wonder what the minimum flow / price is, to keep it profitable. Would the Fed-Gov step in when it is loss making? And high oil prices destroy the economy, 2008 again.
Absence of State income tax – this is (somewhat) offset against Federal Income Taxes. For the ‘payer’ its a wash. For the State, they have painted themselves into a corner. Cost of living is already high in Alaska, practically everything is imported, over great distances.
South Africa – verge of civil war.
Germany & Belgium – killer floods.
Florida – building collapse.
The world – 2 weeks to flatten the curve !!!
Interesting times, getting a little too interesting.
Must not forget the recent ‘heat dome’, all-time record setting temperatures, with record setting deltas, at an unusually early point in the summer. Followed by literal cremation for the town of Lytton, British Columbia, Canada.
Another example of the declining net energy return on fossil fuels. Thermosyphons, which require energy to operate, need to be installed to keep the permafrost cold in order for the shrinking amount of crude oil to keep flowing through the pipeline.
“…and the climate has become our enemy…”
When I wrote this in a comment on your last blog, I was engaging in a bit of hyperbole, as is my wont. World events of the past several days have convinced me otherwise — not an overstatement after all.