15 03 2016

This is Simon Michaux’s follow up to his article on the Implications of Peak Energy

Simon Michaux


Dr Simon Michaux has a Bach App Sc in Physics and Geology and a PhD in mining engineering. He has worked in the mining industry for 18 years in various capacities. He has worked in industry funded mining research, coal exploration and in the commercial sector in an engineering company as a consultant. Areas of technical interest have been: Geometallurgy; mineral processing in comminution, flotation and leaching; blasting; mining geology; geophysics; feasibility studies; mining investment; and industrial sustainability.

There is a macro-scale pattern unfolding under all of us. Every non-renewable natural resource we depend upon is now depleting to the point of peak extraction, or will soon. Industrial systems that are heavily dependent on energy reserves and metal resources are now at serious risk of collapse as production of those raw materials will soon not be able to meet demand, since easy to access reserves will be exhausted, leaving low-grade stocks that are expensive or technically challenging to extract. All living systems on the planet are under stress and are also heavily degrading. Natural systems of all kinds are being depleted in the name of economic development, and the planet’s climate is also undergoing change.

Our culture’s fundamental belief that there are no limits and growth is good, is related to the belief that all resources are infinite. Humans, like all animals on the planet, are biologically driven to consume and expand – it’s a built-in survival mechanism. Yet, as this is a finite planet and our exploitation of these natural resources is exponential in form, there will come a point where severe volatility and resource scarcity will become a reality.

Energy is the rate determining step, which facilitates the continued application of technology with economies of scale. As studies have shown, total world fossil fuel supply is close to peak, driven by peak of oil production. What’s more, putting all energy sources together gives a snapshot of our industrial capability and suggests that peak total energy is projected to be approximately in the year 2017.

energy sources

The industrial systems vital for our society to function are supported by each of these energy sources in quite different ways, and they are not interchangeable easily. A compelling case can be made that that our society and its industrial sector energy supply faces a fundamental problem, that is systemic in nature.

Our industrial requirements will have to be met with a fundamentally different approach to anything we have achieved before. We need to stop depending on non-renewable natural resources and stop the material requirements of the human societal footprint growing exponentially. Mining will continue but according to a radically different business model, and with a very different mandate.


Network theory and systems thinking has some insights to what the required new system of industrialisation could look like. Our human society, its economic and social interactions could be modelled as a system, where each activity could be a connection, for example the transport of goods, or the consumption of electricity. Nodes are where many connections intersect. For example, most activities involve a finance transfer thus will engage the services of a bank. The bank is a node, where many connections are able to function through. Not all nodes are equal though in regard to the number of connections they facilitate. The node of a car manufacturing business, for instance, will have many fewer connections than, say, the European Union Bank.

Image: NASA / Flickr CC BY NC 2.0
Image: NASA / Flickr CC BY NC 2.0

If connections are broken due to circumstance (using a city example, heavy storms and flooding could temporarily interrupt power supply to an individual neighbourhood) then the network is smaller in size but it still functions (power is still being supplied to other parts of the power grid). But if that same storm causes the power station used for electricity generation (a node) to shut down, then every consumer attached to that power station will lose power. The whole grid will crash.

The complexity of a network is supported by and defined by the energy inputs that support it. Our current complex system is supported by cheap abundant high density energy – oil. Complex system networks are not made ‘in situ’, but are grown over time from simple system networks.

What does all this mean for the current industrial grid? Peak total energy means the node of energy supply is about to be disrupted. All links in the network system supported by energy will be logistically traumatized. As it stands, any replacement energy is less dense per unit volume than oil, and requires extensive infrastructure to be built. Think of the amount of energy invested in the creation of our current system over time – without plentiful, easy to access energy, the replacement network system will need to be less complex than the current one, once fully operational. It will also take time for the network to reach full complexity.

The old system cannot function because input energy is sourced from non-renewable natural resources, all of which are depleting or soon will. As energy is the master resource, it defines what happens with all other resource systems. Any replacement system that is a practical option will have to have certain signatures.


Due to energy constraints, all industrial output would have to be sourced from a geographically local area. This would affect everything from raw material consumption, water consumption to waste disposal. Product delivery to market would also be changed. All of this would have to become as close to net zero footprint in terms of source material and waste disposal. Industrial output would have to be simpler. Technology cannot be as complex as it is now. This implies that manufacturing goods will require more effort on our part, which means that we would have to value ‘stuff’ differently. All waste products will also require greater effort to dispose of, meaning that if they could be recycled, reused or repurposed, there would be less strain on the system to function. Maintaining QA/QC material standards and equipment maintenance would all have to be done within a relatively local geographic region. These challenging statements represent practical limits of a low energy future. As this represents quite a paradigm shift from our current state of exponential consumption based on whim, the most difficult but significant task in front of us is a revolution in perception and a restructuring of governance.

Political systems like capitalism, socialism, communism, fascism, etc. are all built in the context of unlimited natural resources. Whatever the new system looks like, it won’t be anything like what has been seen before. We can call it what we like. Planning will have to be projected over 50 to 60 years into the future but be flexible to evolve organically to its environs. The current system is very centralised, whereas the new system would have to be very decentralised due to energy constraints. The flow of information will become very important.

The Great Acceleration indicators, published by IGBP in collaboration with the Stockholm Resilience Centre
The Great Acceleration indicators, published by IGBP in collaboration with the Stockholm Resilience Centre

From a civilisation network systems footprint viewpoint, we must ask ourselves how we can develop an economy that offers enough for everyone, forever. Real world systems and their inputs must reflect this, and the familiar exponential curves of today’s economy must move to flat line or sinusoidal wave functions. We also need to ask what profile human civilisation has amongst the natural environment. Dynamic natural systems must be able to operate unhindered, where natural capital and biodiversity is allowed to recover. The new economic framework must appreciate that inputs and outputs to all systems must be stable over time.

There are two related conceptual ideas which could be a starting point to help us develop the above requirements: the circular economy and the steady state economy. In a future in which peak energy has dramatically changed the rules of the game, these concepts are required to maintain our industrial capacity. It is not a question of choice, as our natural resources are being depleted at an exponential rate. The timing is now. The next 100 years will be very different to the last 100 years.




2 responses

15 03 2016

Capitalism does not do no growth. For capitalism to work there must be faith that the future will be better. And then you must consider we are moving further and further from a resilient system. Each fragile cog in the system is utterly reliant on every other worn out cog. One tiny bit of sand in the wrong spot at the wrong time and it all stops.

There is no chance that we will develop a new system and save civilization. A new better system may arise out of the ashes of civilization, but it will be out of the ashes and in no way a transition. Those in control will see everything destroyed before they allow any risk their position of privilege.

16 03 2016

sadly, i think you’re right rabiddoomsayer.

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