Areas Of The World More Vulnerable To Collapse

16 06 2018

ANOTHER great post from SRSrocco…..  this one should be of particular interest to Australians though, because we are in a more vulnerable region…. and while Australia may look not too bad on those charts, it’s only because our relatively small population means we consume way less than most of the other nations of the Asia Pacific region…

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Certain areas of the world are more vulnerable to economic and societal collapse.  While most analysts gauge the strength or weakness of an economy based on its outstanding debt or debt to GDP ratio, there is another factor that is a much better indicator.  To understand which areas and regions of the world that will suffer a larger degree of collapse than others, we need to look at their energy dynamics.

For example, while the United States is still the largest oil consumer on the planet, it is no longer the number one oil importer.  China surpassed the United States by importing a record 8.9 million barrels per day (mbd) in 2017.  This data came from the recently released BP 2018 Statistical Review.  Each year, BP publishes a report that lists each countries’ energy production and consumption figures.

BP also lists the total oil production and consumption for each area (regions and continents).  I took BP’s figures and calculated the Net Oil Exports for each area.  As we can see, the Middle East has the highest amount of net oil exports with 22.3 million barrels per day in 2017:

The figures in the chart above are shown in “thousand barrels per day.”  Russia and CIS (Commonwealth Independent States) came in second with 10 mbd of net oil exports followed by Africa with 4 mbd and Central and South America with 388,000 barrels per day.  The areas with the negative figures are net oil importers.

The area in the world with the largest net oil imports was the Asia-Pacific region at 26.6 mbd followed by Europe with 11.4 mbd and North America (Canada, USA & Mexico) at 4.1 mbd.

Now, that we understand the energy dynamics shown in the chart above, the basic rule of thumb is that the areas in the world that are more vulnerable to collapse are those with the highest amount of net oil imports.  Of course, it is true that the Middle Eastern or African countries with significant oil exports can suffer a collapse due to geopolitics and civil wars (example, Iraq, and Libya), but this was not a result of domestic oil supply and demand forces.  Rather the collapse of Iraq and Libya can be blamed on certain superpowers’ desire to control the oil market as they are strategic net oil importers.

The areas with the largest net oil imports, Asia-Pacific and Europe, have designed complex economies that are highly dependent on significant oil supplies to function.  Thus, the areas and countries with the largest net oil imports will experience a higher degree of collapse. Yes, there’s more to it than the amount of net oil imports, but that is an easy gauge to use.   I will explain the other factors shortly.  If we look at the Asia-Pacific countries with the largest net oil imports, China, India, and Japan lead the pack:

China is a net importer of nearly 9 mbd of oil, followed by India at 4 mbd and Japan with 3.9 mbd.  Thus, as these net oil imports decline, so will the degree of economic activity.  However, when net oil imports fall to a certain level, then a more sudden collapse of the economy will result… resembling the Seneca Cliff.

We must remember, a great deal of the economic infrastructure (Skyscrapers, commercial buildings, retail stores, roads, equipment, buses, trucks, automobiles, etc etc.) only function if a lot of oil continually runs throughout the system.  Once the oil supply falls to a certain level, then the economic system disintegrates.

While China is the largest net oil importer, the United States is still the largest consumer of oil in the world.  Being the largest oil consumer is another very troubling sign.  The next chart shows the countries with the highest oil consumption in the world and their percentage of net oil imports:

Due to the rapid increase in domestic shale oil production, the United States net oil imports have fallen drastically over the past decade.  At one point, the U.S. was importing nearly three-quarters (75%) of its oil but is now only importing 34%.  Unfortunately, this current situation will not last for long.  As quickly as shale oil production surged, it will decline in the same fashion… or even quicker.

You will notice that Saudi Arabia is the sixth largest oil consumer in the world followed by Russia.  Both Saudi Arabia and Russia export a much higher percentage of oil than they consume.  However, Russia will likely survive a much longer than Saudi Arabia because Russia can provide a great deal more than just oil.  Russia and the Commonwealth Independent States can produce a lot of food, goods, commodities, and metals domestically, whereas Saudi Arabia must import most of these items.

Of the largest consumers of oil in the chart above, Japan and South Korea import 100% (or nearly 100%) of their oil needs.  According to the data put out by BP 2018 Statistical Review, they did not list any individual oil production figures for Japan or South Korea.  However, the U.S. Energy Information Agency reported in 2015 that Japan produced 139,000 bd of total petroleum liquids while S. Korea supplied 97,000 bd.  Production of petroleum liquids from Japan and South Korea only account for roughly 3% of their total consumption…. peanuts.

Analysts or individuals who continue to believe the United States will become energy independent are ignorant of the impacts of Falling EROI – Energy Returned On Investment or the Thermodynamics of oil depletion.  Many analysts believe that if the price of oil gets high enough, say $100 or $150; then shale oil would be hugely profitable.  The error in their thinking is the complete failure to comprehend this simple relationship… that as oil prices rise, SO DO the COSTS… 

Do you honestly believe a trucking company that transports fracking sand, water or oil for the shale oil industry is going to provide the very same costs when the oil price doubles????  We must remember, the diesel price per gallon increases significantly as the oil price moves higher.  Does the energy analyst believe the trucking companies are just going to eat that higher cost for the benefit of the shale oil industry??  This is only one example, but as the oil price increases, inflationary costs will thunder throughout the shale oil industry.

If the oil price shoots up to $100 or higher and stays there (which I highly doubt), then costs will start to surge once again for the shale oil industry.  As costs increase, we can kiss goodbye the notion of higher shale oil profits.  But as I mentioned in the brackets, I don’t see the oil price jumping to $100 and staying there.  Yes, we could see an oil price spike, but not a long-term sustained price as the current economic cycle is getting ready to roll over.  And with it, we are going to experience one hell of a deflationary collapse.  This will take the oil price closer to $30 than $100.

Regardless, the areas and countries with the highest oil consumption and net oil imports will be more vulnerable to collapse and will fall the hardest.  Just imagine the U.S. economy consuming 5 million barrels of oil per day, rather than the current 20 mbd.  The United States just has more stuff that will become worthless and dysfunctional than other countries.

Lastly, the end game suggests that the majority of countries will experience an economic collapse due to the upcoming rapid decline in global oil production.  However, some countries will likely be able to transition better than others, as the leverage and complexity of the economies aren’t as dependent on oil as the highly advanced Western and Eastern countries.

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Is this a sign of collapse gathering pace…?

15 05 2018

The articles coming from the consciousness of sheep are getting more and more interesting… after reading this one, I could not help but think that while Australia’s energy dilemmas are different to the UK’s, the following quote really struck a cord with me…:

Underlying all of this is a fundamental truth that few are prepared to contemplate: with the end of the last supplies of cheap fossil fuels, there is no affordable energy mix for the foreseeable future.  No combinations of gas, nuclear and renewables can be developed and deployed at the same time as prices are held at levels that are only just affordable to millions of British households.  Nor is there any option of returning to cheap gas from depleted North Sea deposits; still less reopening coal deposits put out of reach by the Thatcher government.

We are ‘lucky’ to have more coal and gas than we know what to do with, until that is it becomes so obvious we can’t keep burning these climate destroying fuels, we just stop. Hopefully before it’s too late.  But consider this……  if the UK economy collapses, what effect would it have on ours? Oil is creeping up, and our electricity rates are the subject of much moaning all over the country. An economic shock is coming, as sure as the sun rises in the East…..

Centrica may not care

Sometimes a story is repeated so often that its veracity is never challenged.  One such is the myth that British households are in thrall to a wicked energy cartel that puts excessive profits above common decency.  So much so, indeed, that the government and the opposition parties have all signed up to some form of energy cap designed to keep energy prices affordable.

The grain of truth in this story is that, aided by a craven regulator, the “big six” – British Gas, EDF Energy, E.ON, Npower, Scottish Power, and SSE – have on many occasions operated a cartel to hold prices up.  How else can we explain, for example, recent British Gas price increases in the face of a collapse in their customer base?

“British Gas owner Centrica lost 110,000 energy supply accounts in the first four months of the year.  That is roughly equivalent to 70,000 customers as many households buy their gas and electricity from British Gas, so will have two accounts.

“Last year, the company lost 1.3 million energy accounts…

“In April, British Gas announced a 5.5% increase in both gas and electricity bills, which comes into effect at the end of this month.  It blamed the rising wholesale cost of energy and the cost of meeting emissions targets and introducing smart meters.

“Other big energy firms have also announced price increases this year, including Npower, EDF and Scottish Power.”

This is surely evidence of a cartel being operated behind the back of the regulator… or is it?

There is an alternative explanation for the recent behaviour of the soon to be Big Four that should send a shiver through the UK economy.  Toward the end of last year, Jillian Ambrose at the Telegraph reported that:

“Britain’s second-largest energy supplier is eyeing the exit as the Government’s crackdown on energy bills threatens profits.

“SSE, formerly known as Scottish and Southern Energy, may turn its back on supplying gas and power to almost 8m British homes ­after years of political threats against the six largest energy companies comes to a head.

“City sources say the FTSE 100 energy giant is quietly discussing early plans to sell off its customer accounts, or even spin the business off as a separate listed company in order to focus on networks and renewable energy and avoid the Government’s looming energy price cap.”

Some months earlier I took the time to examine Centrica’s (British Gas’ parent company) annual accounts.  The results are not pretty:

“While Centrica profits were down (but still high) the division of British Gas that supplies electricity to UK consumers (businesses and households) actually made a loss of £61.1 million last year – in the household market, the loss was even bigger at £71.9 million.  That is, business electricity consumers are subsidising household electricity to some extent, while Centrica itself is subsidising its UK electricity business out of the profits from its other divisions.  Despite this, of course, electricity consumers are facing increasing bills even as they scale back their consumption.  This is exacerbated by the government decision to load the cost of renewables, new gas and new nuclear onto customers’ bills; effectively creating in all but name an even more regressive tax than VAT.”

Centrica’s response at the start of this year was to axe 4,000 jobs; having previously ceased maintaining the strategically essential Rough natural gas storage facility in the North Sea.  SSE in the meantime has announced a merger with N-Power in an attempt to rationalise both company’s retail energy business.  Unfortunately, no business to date has managed the trick of cutting its way to greatness… particularly in an economic climate in which ever fewer consumers can afford the service.

Centrica’s route out of an increasingly unprofitable domestic energy supply sector will be to focus on its much larger international energy business.  Britain’s remaining retail energy suppliers – all of which are foreign owned – may not enjoy this option.  For example, EDF’s wholesale energy investments are tied up in an increasingly risky and very-likely loss-making nuclear power sector.  Nor is there much to be gained from investment in renewable energy technologies that depend upon uncertain government subsidies that have become politically toxic among ordinary voters.

Underlying all of this is a fundamental truth that few are prepared to contemplate: with the end of the last supplies of cheap fossil fuels, there is no affordable energy mix for the foreseeable future.  No combinations of gas, nuclear and renewables can be developed and deployed at the same time as prices are held at levels that are only just affordable to millions of British households.  Nor is there any option of returning to cheap gas from depleted North Sea deposits; still less reopening coal deposits put out of reach by the Thatcher government.

For the moment, the UK government is content to fill Britain’s energy gap with imports.  However, as global energy supplies begin to tighten once more, pricing and profitability issues are likely to rise up the political agenda again.  Faced with an increasing struggle to remain profitable, and in the face of a government determined to add the cost of green energy onto domestic bills while legislating to prevent those bills from rising, companies like Centrica may simply choose to walk away.  After all, one of the blessings of being a private corporation (as opposed to a public utility) is that nobody can stop you from closing when you run out of money.





Extinction vs. Collapse: Does it matter?

9 05 2018

Hot on the heels of the Mayer Hillman “we’re doomed” article, and the “collapse or not to collapse” video posted here, along comes this piece with links to a remarkable number of articles posted here over the past few months……. It’s hard to not start feeling that there’s a growing awareness everything’s going pear shaped. Lots of links here to follow up, if you haven’t slashed your wrists.

By 

sam millerClimate twitter – the most fun twitter – has recently been relitigating the debate between human extinction and mere civilizational collapse, between doom and gloom, despair and (kind of) hope. It was sparked by an interview in The Guardian with acclaimed scientist Mayer Hillman. He argues that we’re probably doomed, and confronting the likelihood that we’re rushing toward collective death may be necessary to save us.

The headline alone provoked a lot of reactions, many angered by the ostensible defeatism embedded in Hillman’s comments. His stated view represents one defined camp that is mostly convinced of looming human extinction. It stands in contrast to another group that believes human extinction is highly unlikely, maybe impossible, and certainly will not occur due to climate change in our lifetimes. Collapse maybe, but not extinction.

Who’s more right? Let’s take a closer look.

First, the question of human extinction is totally bounded by uncertainty. There’s uncertainty in climate data, uncertainty in models and projections, and even more uncertainty in the behavior of human systems. We don’t know how we’ll respond to the myriad impacts climate change is beginning to spark, and we don’t know how sensitive industrial civilization will be to those impacts.

We don’t really know if humans are like other apex predators highly sensitive to ecological collapse, or are among the most adaptable mammals to ever walk the earth. One may be inclined to lean toward the latter given that humans have colonized every ecological niche on the planet except Antarctica. That bands of people can survive in and around deserts as well as the Arctic as well as equatorial rainforests speaks to the resilience of small social groups. It’s why The Road is so disturbingly plausible; there could be a scenario in which basically everything is dead but people, lingering in the last grey waste of the world. On the other hand, we’ve never lived outside of the very favorable conditions of the Holocene, and past civilizational and population collapses suggest humans are in fact quite sensitive to climatic shifts.

Famed climate scientist James Hansen has discussed the possibility of “Venus syndrome,” for instance, which sits at the far end of worst case scenarios. While a frightening thought experiment, it is easily dismissed as it’s based on so many uncertainties and doesn’t carry the weight of anything near consensus.

What’s more frightening than potentially implausible uncertainties are the currently existing certainties.

For example:

Ecology

+ The atmosphere has proven more sensitive to GHG emissions than predicted by mainstream science, and we have a high chance of hitting 2°C of warming this century. Could hit 1.5°C in the 2020s. Worst-case warming scenarios are probably the most likely.

+ Massive marine death is happening far faster than anyone predicted and we could be on the edge of an anoxic event.

+ Ice melt is happening far faster than mainstream predictions. Greenland’s ice sheet is threatening to collapse and already slowing ocean currents, which too could collapse.

+ Which also means predictions of sea level rise have doubled for this century.

+ Industrial agriculture is driving massive habitat loss and extinction. The insect collapse – population declines of 75% to 80% have been seen in some areas – is something no one predicted would happen so fast, and portends an ecological sensitivity beyond our fears. This is causing an unexpected and unprecedented bird collapse (1/8 of bird species are threatened) in Europe.

+ Forests, vital carbon sinks, are proving sensitive to climate impacts.

+ We’re living in the 6th mass extinction event, losing potentially dozens of species per day. We don’t know how this will impact us and our ability to feed ourselves.

Energy

+ Energy transition is essential to mitigating 1.5+°C warming. Energy is the single greatest contributor to anthro-GHG. And, by some estimates, transition is happening 400 years too slowly to avoid catastrophic warming.

+ Incumbent energy industries (that is, oil & gas) dominate governments all over the world. We live in an oil oligarchy – a petrostate, but for the globe. Every facet of the global economy is dependent on fossil fuels, and every sector – from construction to supply chains to transport to electricity to extraction to agriculture and on and on – is built around FF consumption. There’s good reason to believe FF will remain subsidized by governments beholden to their interests even if they become less economically viable than renewables, and so will maintain their dominance.

+ We are living in history’s largest oil & gas boom.

+ Kilocalorie to kilocalorie, FF is extremely dense and extremely cheap. Despite reports about solar getting cheaper than FF in some places, non-hydro/-carbon renewables are still a tiny minority (~2%) of global energy consumption and will simply always, by their nature, be less dense kcal to kcal than FF, and so will always be calorically more expensive.

+ Energy demand probably has to decrease globally to avoid 1.5°C, and it’s projected to dramatically increase. Getting people to consume less is practically impossible, and efficiency measures have almost always resulted in increased consumption.

+ We’re still setting FF emissions records.

Politics

+ Conditions today resemble those prior to the 20th century’s world wars: extreme wealth inequality, rampant economic insecurity, growing fascist parties/sentiment, and precarious geopolitical relations, and the Thucydides trap suggests war between Western hegemons and a rising China could be likely. These two factors could disrupt any kind of global cooperation on decarbonization and, to the contrary, will probably mean increased emissions (the US military is one of the world’s single largest consumers/emitters of FF).

+ Neoliberal ideology is so thoroughly embedded in our academic, political, and cultural institutions, and so endemic to discourse today, that the idea of degrowth – probably necessary to avoid collapse – and solidarity economics isn’t even close to discussion, much less realization, and, for self-evident reasons, probably never will be.

+ Living in a neoliberal culture also means we’ve all been trained not to sacrifice for the common good. But solving climate change, like paying more to achieve energy transition or voluntarily consuming less, will all entail sacrificing for the greater good. Humans sometimes are great at that; but the market fundamentalist ideology that pervades all social, commercial, and even self relations today stands against acting for the common good or in collective action.

+ There’s basically no government in the world today taking climate change seriously. There are many governments posturing and pretending to take it seriously, but none have substantially committed to a full decarbonization of their economies. (Iceland may be an exception, but Iceland is about 24 times smaller than NYC, so…)

+ Twenty-five years of governments knowing about climate change has resulted in essentially nothing being done about it, no emissions reductions, no substantive moves to decarbonize the economy. Politics have proven too strong for common sense, and there’s no good reason to suspect this will change anytime soon.

+ Wealth inequality is embedded in our economy so thoroughly – and so indigenously to FF economies – that it will probably continue either causing perpetual strife, as it has so far, or eventually cement a permanent underclass ruled by a small elite, similar to agrarian serfdom. There is a prominent view in left politics that greater wealth equality, some kind of ecosocialism, is a necessary ingredient in averting the kind of ecological collapse the economy is currently driving, given that global FF capitalism by its nature consumes beyond carrying capacities. At least according to one Nasa-funded study, the combination of inequality and ecological collapse is a likely cause for civilizational collapse.

Even with this perfect storm of issues, it’s impossible to know how likely extinction is, and it’s impossible to judge how likely or extensive civilizational collapse may be. We just can’t predict how human beings and human systems will respond to the shocks that are already underway. We can make some good guesses based on history, but they’re no more than guesses. Maybe there’s a miracle energy source lurking in a hangar somewhere waiting to accelerate non-carbon transition. Maybe there’s a swelling political movement brewing under the surface that will soon build a more just, ecologically sane order into the world. Community energy programs are one reason to retain a shred of optimism; but also they’re still a tiny fraction of energy production and they are not growing fast, but they could accelerate any moment. We just don’t know how fast energy transition can happen, and we just don’t know how fast the world could descend into climate-driven chaos – either by human strife or physical storms.

What we do know is that, given everything above, we are living through a confluence of events that will shake the foundations of civilization, and jeopardize our capacity to sustain large populations of humans. There is enough certainty around these issues to justify being existentially alarmed. At this point, whether we go extinct or all but a thousand of us go extinct (again), maybe that shouldn’t make much difference. Maybe the destruction of a few billion or 5 billion people is morally equivalent to the destruction of all 7 billion of us, and so should provoke equal degrees of urgency. Maybe this debate about whether we’ll go completely extinct rather than just mostly extinct is absurd. Or maybe not. I don’t know. What I do know is that, regardless of the answer, there’s no excuse to stop fighting for a world that sustains life.


Samuel Miller McDonald: Born and raised in Northern Michigan, Sam is currently pursuing a PhD at University of Oxford in political geography and energy. His background can be found here. Tweet here.





To collapse or not to collapse

6 05 2018

Following on from posting David Holmgren’s inspiring speech on collapse yesterday, I’ve had several requests to post the rest of the debate in question, and so here it is in its entirety for your viewing satisfaction……

The SLF Great Debate presents
To Collapse or Not To Collpase
Pushing for economic ruin or building a great transition

Friday 13th February
Deakin Edge, Federation Square
http://www.slf.org.au/event/the-great-debate/





Holmgren on collapse

5 05 2018

“To Collapse Or Not To Collapse: Pushing for economic ruin or building a great transition” was the topic for this unconventional ‘debate’ for the Sustainable Living Festival held at Federation Square in Melbourne February 2015. David Holmgren was the first of six speakers which also included Jess Moore, George Marshall, Nicole Foss, George Monbiot (Video Link) and Philip Sutton. See David’s website http://holmgren.com.au/to-collapse-or… for more. The full event can be view here: https://vimeo.com/119722889





The Collapse of Saudi Arabia is Inevitable

23 04 2018

I’ve been saying this for years now…….  but here’s one of the world’s best journalists explaining it way better than I can….. and you better believe it, when Saudi Arabia goes the way of Syria, it will be the trigger for global collapse to start in earnest.
By Nafeez Ahmed

nafeezSeptember 28, 2015 “Information Clearing House” – “MEE”- On Tuesday 22 September, Middle East Eye broke the story of a senior member of the Saudi royal family calling for a “change” in leadership to fend off the kingdom’s collapse.

In a letter circulated among Saudi princes, its author, a grandson of the late King Abdulaziz Ibn Saud, blamed incumbent King Salman for creating unprecedented problems that endangered the monarchy’s continued survival.

“We will not be able to stop the draining of money, the political adolescence, and the military risks unless we change the methods of decision making, even if that implied changing the king himself,” warned the letter.

Whether or not an internal royal coup is round the corner – and informed observers think such a prospect “fanciful” – the letter’s analysis of Saudi Arabia’s dire predicament is startlingly accurate.

Like many countries in the region before it, Saudi Arabia is on the brink of a perfect storm of interconnected challenges that, if history is anything to judge by, will be the monarchy’s undoing well within the next decade.

Black gold hemorrhage
The biggest elephant in the room is oil. Saudi Arabia’s primary source of revenues, of course, is oil exports. For the last few years, the kingdom has pumped at record levels to sustain production, keeping oil prices low, undermining competing oil producers around the world who cannot afford to stay in business at such tiny profit margins, and paving the way for Saudi petro-dominance.

But Saudi Arabia’s spare capacity to pump like crazy can only last so long. A new peer-reviewed study in the Journal of Petroleum Science and Engineering anticipates that Saudi Arabia will experience a peak in its oil production, followed by inexorable decline, in 2028 – that’s just 13 years away.

This could well underestimate the extent of the problem. According to the Export Land Model (ELM) created by Texas petroleum geologist Jeffrey J Brown and Dr Sam Foucher, the key issue is not oil production alone, but the capacity to translate production into exports against rising rates of domestic consumption.

Brown and Foucher showed that the inflection point to watch out for is when an oil producer can no longer increase the quantity of oil sales abroad because of the need to meet rising domestic energy demand.

In 2008, they found that Saudi net oil exports had already begun declining as of 2006. They forecast that this trend would continue.

They were right. From 2005 to 2015, Saudi net exports have experienced an annual decline rate of 1.4 percent, within the range predicted by Brown and Foucher. A report by Citigroup recently predicted that net exports would plummet to zero in the next 15 years.

From riches to rags
This means that Saudi state revenues, 80 percent of which come from oil sales, are heading downwards, terminally.

Saudi Arabia is the region’s biggest energy consumer, domestic demand having increased by 7.5 percent over the last five years – driven largely by population growth.

The total Saudi population is estimated to grow from 29 million people today to 37 million by 2030. As demographic expansion absorbs Saudi Arabia’s energy production, the next decade is therefore likely to see the country’s oil exporting capacity ever more constrained.

Renewable energy is one avenue which Saudi Arabia has tried to invest in to wean domestic demand off oil dependence, hoping to free up capacity for oil sales abroad, thus maintaining revenues.

But earlier this year, the strain on the kingdom’s finances began to show when it announced an eight-year delay to its $109 billion solar programme, which was supposed to produce a third of the nation’s electricity by 2032.

State revenues also have been hit through blowback from the kingdom’s own short-sighted strategy to undermine competing oil producers. As I previously reported, Saudi Arabia has maintained high production levels precisely to keep global oil prices low, making new ventures unprofitable for rivals such as the US shale gas industry and other OPEC producers.

The Saudi treasury has not escaped the fall-out from the resulting oil profit squeeze – but the idea was that the kingdom’s significant financial reserves would allow it to weather the storm until its rivals are forced out of the market, unable to cope with the chronic lack of profitability.

That hasn’t quite happened yet. In the meantime, Saudi Arabia’s considerable reserves are being depleted at unprecedented levels, dropping from their August 2014 peak of $737 billion to $672bn in May – falling by about $12bn a month.

At this rate, by late 2018, the kingdom’s reserves could deplete as low as $200bn, an eventuality that would likely be anticipated by markets much earlier, triggering capital flight.

To make up for this prospect, King Salman’s approach has been to accelerate borrowing. What happens when over the next few years reserves deplete, debt increases, while oil revenues remain strained?

As with autocratic regimes like Egypt, Syria and Yemen – all of which are facing various degrees of domestic unrest – one of the first expenditures to slash in hard times will be lavish domestic subsidies. In the former countries, successive subsidy reductions responding to the impacts of rocketing food and oil prices fed directly into the grievances that generated the “Arab Spring” uprisings.

Saudi Arabia’s oil wealth, and its unique ability to maintain generous subsidies for oil, housing, food and other consumer items, plays a major role in fending off that risk of civil unrest. Energy subsidies alone make up about a fifth of Saudi’s gross domestic product.

Pressure points
As revenues are increasingly strained, the kingdom’s capacity to keep a lid on rising domestic dissent will falter, as has already happened in countries across the region.

About a quarter of the Saudi population lives in poverty. Unemployment is at about 12 percent, and affects mostly young people – 30 percent of whom are unemployed.

Climate change is pitched to heighten the country’s economic problems, especially in relation to food and water.

Like many countries in the region, Saudi Arabia is already experiencing the effects of climate change in the form of stronger warming temperatures in the interior, and vast areas of rainfall deficits in the north. By 2040, average temperatures are expected to be higher than the global average, and could increase by as much as 4 degrees Celsius, while rain reductions could worsen.

This would be accompanied by more extreme weather events, like the 2010 Jeddah flooding caused by a year’s worth of rain occurring within the course of just four hours. The combination could dramatically impact agricultural productivity, which is already facing challenges from overgrazing and unsustainable industrial agricultural practices leading to accelerated desertification.

In any case, 80 percent of Saudi Arabia’s food requirements are purchased through heavily subsidised imports, meaning that without the protection of those subsidies, the country would be heavily impacted by fluctuations in global food prices.

“Saudi Arabia is particularly vulnerable to climate change as most of its ecosystems are sensitive, its renewable water resources are limited and its economy remains highly dependent on fossil fuel exports, while significant demographic pressures continue to affect the government’s ability to provide for the needs of its population,” concluded a UN Food & Agricultural Organisation (FAO) report in 2010.

The kingdom is one of the most water scarce in the world, at 98 cubic metres per inhabitant per year. Most water withdrawal is from groundwater, 57 percent of which is non-renewable, and 88 percent of which goes to agriculture. In addition, desalination plants meet about 70 percent of the kingdom’s domestic water supplies.

But desalination is very energy intensive, accounting for more than half of domestic oil consumption. As oil exports run down, along with state revenues, while domestic consumption increases, the kingdom’s ability to use desalination to meet its water needs will decrease.

End of the road
In Iraq, Syria, Yemen and Egypt, civil unrest and all-out war can be traced back to the devastating impact of declining state power in the context of climate-induced droughts, agricultural decline, and rapid oil depletion.

Yet the Saudi government has decided that rather than learning lessons from the hubris of its neighbours, it won’t wait for war to come home – but will readily export war in the region in a madcap bid to extend its geopolitical hegemony and prolong its petro-dominance.

Unfortunately, these actions are symptomatic of the fundamental delusion that has prevented all these regimes from responding rationally to the Crisis of Civilization that is unravelling the ground from beneath their feet. That delusion consists of an unwavering, fundamentalist faith: that more business-as-usual will solve the problems created by business-as-usual.

Like many of its neighbours, such deep-rooted structural realities mean that Saudi Arabia is indeed on the brink of protracted state failure, a process likely to take-off in the next few years, becoming truly obvious well within a decade.

Sadly, those few members of the royal family who think they can save their kingdom from its inevitable demise by a bit of experimental regime-rotation are no less deluded than those they seek to remove.

Nafeez Ahmed PhD is an investigative journalist, international security scholar and bestselling author who tracks what he calls the ‘crisis of civilization.’ He is a winner of the Project Censored Award for Outstanding Investigative Journalism for his Guardian reporting on the intersection of global ecological, energy and economic crises with regional geopolitics and conflicts. He has also written for The Independent, Sydney Morning Herald, The Age, The Scotsman, Foreign Policy, The Atlantic, Quartz, Prospect, New Statesman, Le Monde diplomatique, New Internationalist. His work on the root causes and covert operations linked to international terrorism officially contributed to the 9/11 Commission and the 7/7 Coroner’s Inquest.





Damnthematrix is ten years old……..

14 03 2018

I’ve been so busy preparing for the momentous house slab pouring next Saturday, that the also momentous tenth anniversary of this humble blog passed almost un-noticed. And that would be a shame really.

In February 2008, I started Damthematrix with an opening salvo I had published in our local rag back in Cooran. It contained this graphic:

Anyone following this blog will instantly know what it means, and nothing has changed. Mind you, nothing has happened either. Back then, I was thoroughly convinced that by now the world would be a very different place, and it is, just not the kind of different I then believed in.

Of course, my own personal situation is entirely different. I can tell you that ten years ago, me living in Tasmania was not on the radar. The Hinterland Voice is long gone, its editor now lives in England. But while I was predicting collapse would have started by now, the powers that be have gone to lengths I could neve have predicted back then to paper over all the cracks, making them almost invisible to most people, especially if they read mainstream media.

I was basically asked in a recent comment “why do I bother?” To be honest, I also ask myself this question. Ten years ago, I had zero followers; at last count, I have 754. Have I even changed 754 people’s attitudes? Does it make any difference if I have? Does anything make a difference? In a recent podcast, I heard John Michael Greer rightfully boast that when he closed The Archdruid Report, he had a readership of close to a third of a million. Did that make a difference? In 2014, Chris Martenson’s Peak Prosperity website had 10,000 twitter followers. Does he make a difference?

Is blogging about making any difference?

Stasse

The price of infamy…

Lots of questions there; I will admit to an obsession with collapse…… may you live in interesting times and all that. Anyone would have to admit it’s a thoroughly fascinating subject matter. plus I love an argument! It even encourages some people with more time on their hands than me to make cartoons of me! Is anyone here responsible for this hilarious image?

Nothing I write, nor any of the abovementioned much more famous bloggers do, will change the course of history. We are the victims of collective insanity, and nothing short of collective awakening – and I mean billions – will avoid the worst of what’s coming. Every human on this planet is looking after his/her best interest, and that of his close intimate circle. Let’s face it, even I am doing that….! on top of this, the average human’s grasp of physics and mathematics is literally non-existent, and they vote. And keep having babies. This insanity was very apparent in last Monday’s Four Corners about the Big Australia. It was all about more, not less. More roads, more public transport, more houses, more schools, more hospitals, more pensioners……. not even a nano second spent on limits to growth. I’ve contacted Four Corners about doing a story on Limits to Growth, but that won’t make any difference either, whether they actually do it or not.

Therefore, as long as nobody minds, I’ll keep plodding along making no difference. The best I can do is affect enough smart people to think about what they are doing, and create the foundation for a future sane community of people who care, and know what to do when collapse becomes the norm or maybe just no longer possible to ignore.

Good luck, and keep on making soil…..  you’re going to need both!