It's Back.
May. 5th, 2018 10:10 pm
I don't know how many of my readers have been keeping track of the price of oil, but -- ahem -- it's rising again. West Texas Intermediate (WTI), one of the two standard benchmark grades of crude oil, ended the day a little below $70 a barrel; Brent -- the other standard benchmark -- was just below $75 a barrel. Just a few years ago they bottomed out in the low $40s. Now some thoughtful observers are starting to warn of an imminent oil shock. It's hard to tell at this point whether the price of oil will keep going up until it cracks $100 a barrel and once again starts drawing blood from the world's economy, or whether we'll see another downward lurch before the next oil price spike. My guess is that we're nearing the next spike. The gimmicks that kept petroleum prices under control for a while -- frantic extraction of shale oil and tar sands, on the one hand, and economic policies that suppressed demand by forcing a growing fraction of people in the industrial world into poverty, on the other -- were never more than temporary kluges; they postponed the problem while doing nothing to fix it and, inevitably, made the final consequences worse.
The predicament we're in isn't hard to understand. The Earth is a sphere, and therefore contains a finite amount of fossil fuels; we're drawing down that stock of fossil fuels at a breakneck pace; most of the good stuff -- light sweet crude, anthracite coal, and so on -- was extracted and burned a long time ago; and now we're trying to keep the global industrial system running on low-grade fuels that are increasingly costly to extract and yield less and less energy. Renewable resources can't meet more than a small fraction of the demand -- despite whopping government subsidies in many nations, renewables account for only 9% of energy production worldwide, and 7% of that consists of hydroelectric; wind, solar, and all the other renewable resources produce a fraction of one per cent each.
The solution isn't hard to understand, either. We have to reduce our consumption of energy, and the products of energy, to levels that can be supported indefinitely by renewable resources -- let's say, 10% of current energy consumption. "We," furthermore, means you, personally, and me, and everyone else. The only choice we have is whether we do this deliberately, or whether shortages, soaring prices, and economic dysfunction do it for us.
You've heard this before, dear reader. I've talked about it at length since the early days of my old blog, The Archdruid Report. The only thing that's changed since then is that billions more barrels of oil from our planet's dwindling supplies have been extracted and burnt. There may be another round of short-term fixes that will push off the day of reckoning a little further...or there may not. What will you do?
Car culture
Date: 2018-05-06 05:03 am (UTC)Re: Car culture
Date: 2018-05-06 05:08 pm (UTC)Re: Car culture
From: (Anonymous) - Date: 2018-05-06 05:17 pm (UTC) - Expand(no subject)
Date: 2018-05-06 10:38 am (UTC)What am I going to do about it? Move up my schedule of collapsing now, and avoiding the rush. I'll probably be relocating for work soon, and will be looking to live within walking distance of a grocery store and possibly work (or working from home), and near a bus line. When I moved to the Portland area four years ago, I thought it'd be nice to travel to Hawaii and Alaska from here - I don't need to do that, as the Columbia River Gorge is pretty sweet. I've got a motorcycle and a car, and don't need both, though it rains here a lot and I love the bike. Ugh.
I plan to support public policies promoting (sensible) public transportation, sustainable and lower energy food production, consumption taxes on Humvees, and education methods promoting good math and basic science skills to be used for improving critical thinking by everyone as we make choices ahead, and maybe head off a bit, a fraction, a tiny morsel of the pain.
There is awareness of this predicament by many, but as you've mentioned in the past, the necessary sacrifices to our current lifestyles to meet the 10% target for energy use is easier said than done. I may get into contingency planning, depending on the next job I land, as without a doubt there are crises ahead, of which we (as in society in general) are woefully unprepared. There are some sensible ways to mitigate some aspects of the decline, though it's become more obvious we're gonna hit the iceberg.
I don't feel nearly as much like Chicken Little as I used to....
(no subject)
Date: 2018-05-06 05:10 pm (UTC)(no subject)
From: (Anonymous) - Date: 2018-05-09 10:08 pm (UTC) - ExpandUrgh...
Date: 2018-05-06 10:52 am (UTC)The infrastructure of daily life in the UK (outside the cities) is so built on the car that it feels like an impossible choice. My wife and I are experimenting with it. I went to the hospital (15miles away) by bus and not only does it take a few hours (and connections) it also costs a chunk. But it is doable! The terrible thing is, the traffic was horrendous and it was full of cars with one person in them - creeping along. While the bus was empty, except for the one full of hyper school kids. How did we get it so wrong?
I think the bigger changes will be driven by finances - when the costs just get too high for car ownership/travel.
And I think these are smaller impacts of fuel use than the cost of transport of most of our goods and production of our food. We will be priced into a sustainable way of life. Unfortunately, costs of living and fuel are a political nightmare, so I can't see it happening in time. Meanwhile, the councils are cutting local services and reducing buses - all in the name of saving money - putting costs back on the consumer - who either pay more or miss out.
So after i read a post of yours last month, my wife and I are now looking at a cycling holiday instead of the common weekend city break - you know you can get return flights to cities in Europe for sometimes under £30! So actually the sustainable option is for the privileged who can either afford a train or can take the time. I know these aren't big problems, but at the moment, we are encouraged to drive/fly by huge subsidies and "economic necessity"... It's really tough to make another choice, but we are doing it slowly.
I wonder if part of the issue is that there is also a philosophical/psychological element? It seems our culture now so celebrates the whims of the individual above all else that we can find it "life-threatening" if we can't get what we want. If that is so, isn't that what needs to change rather than focusing on sustainable behaviours? What do you think? If so, how might we go about that? I know this is a central theme of ADR, but I'm thinking psychologically as well.
I can feel my own contentment with my surroundings growing through walks in nature and possibly the CGD work I'm doing, (And my need for consumtion reducing...). But, i am privileged enough to have the time & space for these things. Many don't. And I'm still along way from 10% energy use! Ye gads, I'm vexxed and a little overwhelmed when I read articles like this. What next?
Re: Urgh...
Date: 2018-05-06 05:12 pm (UTC)Re: Urgh...
From: (Anonymous) - Date: 2018-05-06 11:48 pm (UTC) - ExpandRe: Urgh...
From:Re: Urgh...
From: (Anonymous) - Date: 2018-05-08 03:03 pm (UTC) - ExpandGlobal problem.
Date: 2018-05-06 12:14 pm (UTC)The unfortunate reality is that even if the West went out of its way to deliberately reduce energy consumption, the rest of the world probably would not follow along.
In places like China and India, life is materially a lot more comfortable for many people than it was even ten years ago, to say nothing of the differences in standard of living between the generations. Mobile phones, automobiles, washing machines, 24/7 electricity, air conditioning, etc, are new and offer social status. Environmental concerns are almost always directed to the government. "They need to deal with this!"
India has the most polluted cities in the world (well beyond China). The air in Delhi is so toxic it is vomit-inducing (I experienced it personally), but there are billboards announcing how X amount of kilometers of paved roads were constructed in the last few years. They tell the farmers in Punjab to stop burning their fields, but everyday new cars hit the roads and factories go online to get that 7~10% annual growth.
I am pessimistic. People will tolerate toxic air, soil and water so long as they have new kitchen counters and smartphones, even when their kids are struggling to breath due to asthma brought on by pollution.
Jeffrey
Re: Global problem.
Date: 2018-05-06 05:12 pm (UTC)Re: Global problem.
From:Re: Global problem.
From: (Anonymous) - Date: 2018-05-07 07:43 pm (UTC) - Expandpeak oil vindicated
Date: 2018-05-06 12:32 pm (UTC)My strategy has been to live in the best-planned neighbourhood in the city (virtually every product and service one could want [excepting a book store, of course – it is, after all, suburbia] is within a 10-15 minute walk of my front door. Also, being more active in the community (volunteering at community garden) and commuting less to work. House is energy efficient and small. Even have a Green Wizard “plan B” going in case an oil spike triggers an economic depression and pulls my employer down with it. Are my plans sufficient? Only time will tell!
Ron M
Re: peak oil vindicated
Date: 2018-05-06 05:17 pm (UTC)Re: peak oil vindicated
From: (Anonymous) - Date: 2018-05-07 07:46 pm (UTC) - ExpandTime for action is now
Date: 2018-05-06 01:58 pm (UTC)Re: Time for action is now
Date: 2018-05-06 05:18 pm (UTC)Re: Time for action is now
From: (Anonymous) - Date: 2018-05-06 07:25 pm (UTC) - Expandwhat-could-have-been
Date: 2018-05-06 02:34 pm (UTC)Re: what-could-have-been
Date: 2018-05-06 05:18 pm (UTC)Re: what-could-have-been
From:Re: what-could-have-been
From:Re: what-could-have-been
From:Re: what-could-have-been
From:Re: what-could-have-been
From: (Anonymous) - Date: 2018-05-09 05:12 pm (UTC) - Expand(no subject)
Date: 2018-05-06 02:35 pm (UTC)How close do you think we are to the end of business as usual?
Will J
(no subject)
Date: 2018-05-06 05:24 pm (UTC)(no subject)
From: (Anonymous) - Date: 2018-05-07 12:23 am (UTC) - Expand(no subject)
From:(no subject)
From: (Anonymous) - Date: 2018-05-08 02:20 am (UTC) - Expand(no subject)
From:What will you do?
Date: 2018-05-06 02:52 pm (UTC)Try to reduce consumption, continue composting and growing vegetables, and restart my tinkling with thermal solar energy...
All my attempts to raise awareness of energy issue here in Mauritius have not resulted in much. By and large people are uninterested or believe in the great god of progress bailing us out in due time.
Hence I tend to believe that it is next to impossible to avoid serious and long lasting economic and social disruptions.
I have done some calculations about the impact of oil prices on the mauritian economy. It appears that around US $100 per barrel, economic growth begins to drop significantly. Above US $ 120 - 140 per barrel economic growth drops to zero or becomes slightly negative. beyond that price level I do not think any one can model how the mauritian economy will behave. It becomes terra incognita from an economic perspective.
Karim from Mauritius
Re: What will you do?
Date: 2018-05-06 05:26 pm (UTC)(no subject)
Date: 2018-05-06 05:37 pm (UTC)We also had two beloved cars die recently but now thinking the timing isn't so bad. I could fix them but it would be very expensive and time consuming, and maybe the universe is trying to tell us something.
(no subject)
Date: 2018-05-07 04:03 am (UTC)(no subject)
Date: 2018-05-06 05:47 pm (UTC)Possible signs of the times; the local Sonoco gas station has just been torn down. Taking its place will not be a bigger and better gas station but a convenience store, a puzzling choice as we already have a million of them up here. The Northern Pass project is currently dead in the water (being unkindly referred to by some as 'Walking Dead - Northern Pass edition), its advocates still plaintively appealing to the NH SEC for a permit. If a major crisis in the economy triggered by unstable oil prices happens, these two endeavors may very well topple out of sight with Northern Pass being missed even less than a convenience store.
JLfromNH
(no subject)
Date: 2018-05-08 02:28 am (UTC)Good luck getting a nice bike.
Ray Wharton
(no subject)
Date: 2018-05-06 06:18 pm (UTC)I’m already affected
Date: 2018-05-06 06:52 pm (UTC)I’m already affected, not so much by petroleum (yet), but by natgas prices. The criminal organization known to me as Putin Gas and Electric (for their Gazprom-like extortion tactics) has shut off the gas to me and my family, so we’re down to cold water. Our situation is somewhat akin to that of those folks in Detroit and Baltimore who’ve had their water shut off, though not quite so extreme, praise the gods.
I’m looking into on-demand electric water heaters, but as we’re renters this may be tricky; and it’ll take a miracle to afford them. If we had money, we wouldn’t have lost the gas, right? But I’d gladly pay break-even just to stick it to The Man. Local city rates for electricity are a lot more reasonable. Not that that’s clean or sustainable or anything.
I regard this as a stair step down the slope of decline as experienced on an individual level. There are worse ones, and I’ll feel lucky to avoid them.
Re: I’m already affected
Date: 2018-05-06 08:07 pm (UTC)good discussions
From:(no subject)
Date: 2018-05-06 07:06 pm (UTC)In answer to your question: I reduced my energy consumption by around 90% many years ago and have never had cause to regret it. My next project is to replace my aging gas heater with electric. It's now eight years past its life expectancy because I use it as infrequently as possible, but fracked gas is still fracked gas, so its days are numbered.
Tudor Monastery Farm
Date: 2018-05-06 07:23 pm (UTC)We have been improving our soil and gardening and raising livestock for ten years now and these things are a fascinating hobby. We used to spend $300 per month on groceries a few years ago. Since then, prices have gone up considerably and now we spend $300 on groceries every 6 weeks. We are managing to do this comfortably because we produce so many basic items here as well as luxury items, medicines and cosmetics.
My sources for walking backwards in time so successfully are the BBC series Tudor Monastery Farm, Tales from the Green Valley, and Secrets of the Castle. I am hoping to build a Tudor dairy this year which will keep my sheep's' milk cheeses at 10 degrees Celsius with no electricity used. You really have to taste my Stilton to appreciate how much better life is in the post-industrial world.
Please don't worry. There will be humps and bumps but we are on our way to a happier and better life.
Max Rogers on Denman Island
Re: Tudor Monastery Farm
Date: 2018-05-06 08:11 pm (UTC)Re: Tudor Monastery Farm
From: (Anonymous) - Date: 2018-05-07 05:00 am (UTC) - ExpandRe: Tudor Monastery Farm
From:(no subject)
Date: 2018-05-06 08:00 pm (UTC)(no subject)
Date: 2018-05-07 06:26 pm (UTC)How wide of a range do you travel on job expeditions?
(no subject)
From:It's Back
Date: 2018-05-06 10:57 pm (UTC)I've read recently that the Russians and OPEC may be holding back oil production. Usually commentators say this is to raise the price of oil and that seems a reasonable explanation. But I sometimes wonder if there may be more to it than that. It could be that they are hoping for a major recession. While they are conserving their precious resources we are fracking away full tilt boogie. This doesn't seem to me to be the most sensible strategy on our part, but I no longer expect our government to act rationally. On top of that, there are indications that all this fracking is not actually profitable, except for the folks who are lending the money to the oil companies for drilling operations.
I don't want to sound like a conspiracy theorist because I'm generally skeptical of conspiracy theories. But there is a lot of evidence that high oil prices usually lead to recessions and Russia in particular might see that as being in their best interests. Do you have any thoughts on the matter or am I imagining things?
Doug Castle
Re: It's Back
Date: 2018-05-07 08:30 pm (UTC)(no subject)
Date: 2018-05-07 12:15 am (UTC)energy-shock
Date: 2018-05-07 02:35 am (UTC)I know you're familiar with Chris Martenson, having been on various podcasts/interviews with him, it seems as though this analysis of his from last year is playing out as expected:
https://www.peakprosperity.com/blog/109505/looming-energy-shock
-Jason P.
Stuff I am doing
Date: 2018-05-07 05:10 am (UTC)Re: Stuff I am doing
Date: 2018-05-09 10:24 pm (UTC)What varieties of tomatoes do you grow? I'm not growing any this year, but my favorites from other years are Amish Paste, Cherokee Purple, and Stupice. Good luck with your garden!
--Cary
Re: Growing apples from seed?
From: (Anonymous) - Date: 2018-05-16 12:41 am (UTC) - ExpandStuff I am doing by Kimberly
Date: 2018-05-07 05:12 am (UTC)(no subject)
Date: 2018-05-07 05:36 am (UTC)A local example of challenging government spending here in Portland are the options of building a third bridge across the Columbia (bad) or establishing a toll on the two bridges we have now (better). Question the metrics for growth and tax streams, the motivations of the parties involved, and priority vs other problems (i.e., homelessness).
Being a big horse racing fan in the middle of Triple Crown season, I must admit it's insane to support races where horses ship around the country or in from overseas. Improvements come in baby steps, and that's one I can take. There's plenty more steps in your Green Wizardry book, as well as the checklist online at the top of this forum: http://teresamcguffey.com/greenwizards.org/?q=forum/15
(no subject)
Date: 2018-05-07 08:35 pm (UTC)(no subject)
From: (Anonymous) - Date: 2018-05-08 02:49 am (UTC) - Expand(no subject)
Date: 2018-05-07 01:45 pm (UTC)As for what I am doing, well, I certainly have a greater handle on growing my own food. With the help of a garden friend, we have quite a large garden area under production. We can, freeze, and ferment a lot of it. I have made connections to local meat producers and have learned to make use of scraps. Learning about what it takes to use less plastic is a real challenge, but progress is being made. We also continue to add to our current skill set.
My spouse and I are currently making efforts to de-junk, so that we can rebuild the garage into a more useful production space with which to support ourselves in our declining years as best we can. I am also looking at this as a more useful investment then the stock market.
We live in a suburb that was built in 1948 with a big backyard and is currently in walking distance of many services. We chose the place for the backyard, but most of the services were in place and it was close to work. For my spouse it still is although I have to drive.
It is all an ongoing project of adaptation as far as I can see and as conditions change I hope we can make the necessary adaptations.
(no subject)
Date: 2018-05-07 08:50 pm (UTC)Wind power
Date: 2018-05-07 09:29 pm (UTC)Now the grand dream of a lot of green energy advocates was that all these wind farms were going to be built and the power shipped to the coasts, but the power line rights of way for the transmission of that power would be enormous and the costs to build those lines equally enormous (there is currently one project of that sort that will ship it's power all the way to Arkansas! i.e. not that far and it is only economical because the Federal Government is going to give the company a large amount of money to subsidize the project (https://windcatcher.invenergyllc.com/)).
In the long run these turbines will need a lot of maintenance so we'll see how economical they are, but in the short term "flyover country" is not going to be hit by high electrical prices.