The End of the Oilocene

19 02 2017

The Oilocene, if that term ever catches on, will have only lasted 150 years. Which must be the quickest blink in terms of geological eras…… This article was lifted from feasta.org but unfortunately I can’t give writing credits as I could not find the author’s name anywhere. The data showing we’ll be quickly out of viable oil is stacking up at an increasing rate.

Steven Kopits from Douglas-Westwood (whose work I published here three years ago almost to the day) said the productivity of new capital spending has fallen by a factor of five since 2000. “The vast majority of public oil and gas companies require oil prices of over $100 to achieve positive free cash flow under current capex and dividend programs. Nearly half of the industry needs more than $120,” he said”.

And if you don’t finish reading this admittedly long article, do not exit this blog without first taking THIS on board…….:

What people do not realise is that it takes oil to extract, refine, produce and deliver oil to the end user. The Hills Group calculates that in 2012, the average energy required by the oil production chain had risen so much that it was then equal to the energy contained in the oil delivered to the economy. In other words “In 2012 the oil industry production chain in total used 50% of all the energy contained in the oil delivered to the consumer”. This is trending rapidly to reach 100% early in the next decade.

So there you go…… as I posted earlier this year, do we have five years left…….?

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End of the “Oilocene”: The Demise of the Global Oil Industry and of the Global Economic System as we know it.

(A pdf version of this paper is here. Please refer to my presentation for supporting images and comments. )

In 1981 I was sitting on an eroded barren hillside in India, where less than 100 years previously there had been dense forest with tigers. It was now effectively a desert and I was watching villagers scavenging for twigs for fuelwood and pondering their future, thinking about rapidly increasing human population and equally rapid degradation of the global environment. I had recently devoured a copy of The Limits to Growth (LTG) published in 1972, and here it was playing out in front of me. Their Business as Usual (BAU) scenario showed that global economic growth would be over between 2010 -2020; and today 45 years later, that prediction is inexorably becoming true. Since 2008 any semblance of growth has been fuelled by astronomically greater quantities of debt; and all other indicators of overshoot are flashing red.

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One of the main factors limiting growth was regarded by the authors of LTG as energy; specifically oil. By mid 1970’s surprisingly, enough was known about accessible oil reserves that not a huge amount has since been added to what is known as reserves of conventional oil. Conventional oil is (or was) the high quality, high net energy, low water content, easy to get stuff. Its multi-decade increasing rate in production came to an end around 2005 (as predicted many years earlier by Campbell and Laherre in 1998). The rate of production peaked in 2011 and has since been in decline (IEA 2016).

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The International Energy Agency (IEA) is the pre-eminent global forecaster of oil production and demand. Recently it admitted that its oil production forecasts were based on economic projections rather than geology or cost; ie on the assumption that supply will always meet projected demand.
In its latest annual forecast however (New Policies Scenario 2016) the IEA has also admitted for the first time a future in which total global “all liquids” oil production could start to fall within the next few years.

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As Kjell Aklett of Upsala University Global Energy Research Group comments (06-12-16), “In figure 3.16 the IEA shows for the first time what will happen if its unrealistic wishful thinking does not become reality during the next 10 years. Peak Oil will occur even if oil from fracked tight sources, oil sands, and other (unconventional) sources are included”.

In fact – this IEA image clearly shows that the total global rate of production of “all hydrocarbon liquids” could start falling anytime from now on; and this should in itself raise a huge red flag for the Irish Government.

Furthermore, it raises a number of vital questions which are the core subject of this post.
Reserves of conventional “easy” oil have mostly been used up. How likely is it that remaining reserves will be produced at the rate projected? Rapidly diminishing reserves of conventional oil are now increasingly being supplemented by the difficult stuff that Kjell Aklett mentions; including conventional from deep water, polar and other inaccessible regions, very heavy bituminous and high sulphur oil; natural gas liquids and other xtl’s, plus other “unconventional oil” including tar sands and shale oil.

How much will it cost to produce all these various types? How much energy will be required, and crucially how much energy will be left over for use by the economy?

The global industrial economy runs on oil.

Oil is the vital and crucial link in virtually every production chain in the global industrial world economy partly because it supplies over 96% of global transport energy – with no significant non-oil dependent alternative in sight.

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Our industrial food production system uses over 10 calories of oil energy to plough, plant, fertilise, harvest, transport, refine, package, store/refrigerate, and deliver 1 calorie of food to the consumer; and imagine trying to build infrastructure; roads, schools, hospitals, industrial facilities, cities, railways, airports without oil, let alone maintain them.

Surprisingly perhaps, oil is also crucial to production of all other forms of energy including renewables. We cannot mine and distribute coal or even drill for gas and install pipelines and gas distribution networks without lots of oil; and you certainly cannot make a nuclear power station or build a hydroelectric dam without oil. But even solar panels, wind and biomass energy are also totally dependent on oil to extract and produce the raw materials; oil is directly or indirectly used in their manufacture (steel, glass, copper, fibreglass/GRP, concrete) and finally to distribute the product to the end user, and install and maintain it.

So it’s not surprising that excluding hydro and nuclear (which mostly require phenomenal amounts of oil to implement), renewables still only constitute about 3% of world energy (BP Energy Outlook 2016). This figure speaks entirely for itself. I am a renewable energy consultant and promoter, but I am also a realist; in practice the world runs on oil.

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The economy, Global GDP and oil are therefore mutually dependent and have enjoyed a tightly linked dance over the decades as shown in the following images. Note the connection between oil, total energy, oil price and GDP (clues for later).

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Click on image to enlarge

Rising cost of oil production

Since 2005 when the rate of production of conventional oil slowed and peaked, production costs have been rising more rapidly. By 2013, oil industry costs were approaching the level of the global oil price which was more than $100/barrel at that time; and industry insiders were saying that the oil industry was finding it difficult to break even.

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Click on image to enlarge

A good example of the time was the following article which is worth quoting in full in the light of the price of oil at the time (~$100/bbl), and the average 2016 sustained low oil price of ~$50/bbl.

Oil and gas company debt soars to danger levels to cover shortfall in cash By Ambrose Evans-Pritchard. Telegraph. 11 Aug 2014

“The world’s leading oil and gas companies are taking on debt and selling assets on an unprecedented scale to cover a shortfall in cash, calling into question the long-term viability of large parts of the industry. The US Energy Information Administration (EIA) said a review of 127 companies across the globe found that they had increased net debt by $106bn in the year to March, in order to cover the surging costs of machinery and exploration, while still paying generous dividends at the same time. They also sold off a net $73bn of assets.

The EIA said revenues from oil and gas sales have reached a plateau since 2011, stagnating at $568bn over the last year as oil hovers near $100 a barrel. Yet costs have continued to rise relentlessly. Companies have exhausted the low-hanging fruit and are being forced to explore fields in ever more difficult regions.

The EIA said the shortfall between cash earnings from operations and expenditure — mostly CAPEX and dividends — has widened from $18bn in 2010 to $110bn during the past three years. Companies appear to have been borrowing heavily both to keep dividends steady and to buy back their own shares, spending an average of $39bn on repurchases since 2011”.

In another article (my highlights) he wrote

“The major companies are struggling to find viable reserves, forcing them to take on ever more leverage to explore in marginal basins, often gambling that much higher prices in the future will come to the rescue. Global output of conventional oil peaked in 2005 despite huge investment. The cumulative blitz on exploration and production over the past six years has been $5.4 trillion, yet little has come of it. Not a single large project has come on stream at a break-even cost below $80 a barrel for almost three years.

Steven Kopits from Douglas-Westwood said the productivity of new capital spending has fallen by a factor of five since 2000. “The vast majority of public oil and gas companies require oil prices of over $100 to achieve positive free cash flow under current capex and dividend programmes. Nearly half of the industry needs more than $120,” he said”.

The following images give a good idea of the trend and breakdown in costs of oil production. Getting it out of the ground is just for starters. The images show just how expensive it is becoming to produce – and how far from breakeven the current oil price is.

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Click on image to enlarge

It is important to note that the “breakeven cost” is much less than the oil price required to sustain the industry into the future (business as usual).

The following images show that the many different types of oil have (obviously) vastly different production costs. Note the relatively small proportion of conventional reserves (much of it already used), and the substantially higher production cost of all other types of oil. Note also the apt title and date of the Deutsche Bank analysis – production costs have risen substantially since then.

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The global oil industry is in deep trouble

You do not need to be an economist to see that the average 2016 price of oil ~ $50/bbl was substantially lower than just the breakeven price of all but a small proportion of global oil reserves. Even before the oil price collapse of 2014-5, the global oil industry was in deep trouble. Debts are rising quickly, and balance sheets are increasingly RED. Earlier this year 2016, Deloitte warned that 35% of oil majors were in danger of bankruptcy, with another 30% to follow in 2017.

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Click on image to enlarge

In addition to the oil majors, shrinking oil revenues in oil-producing countries are playing havoc with national economies. Virtually every oil producing country in the world requires a much higher oil price to balance its budget – some of them vastly so (eg Venezuela). Their economies have been designed around oil, which for many of them is their largest source of income. Even Saudi Arabia, the biggest global oil producer with the biggest conventional oil reserves is quickly using up its sovereign wealth fund.

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It appears that not a single significant oil-producing country is balancing its budget. Their debts and deficits grow bigger by the day. Everyone is praying for higher oil prices. Who are they kidding? The average BAU oil price going forward for business as usual for the whole global oil industry probably needs to be well over $100/bbl; and the world economy is on its knees even at the present low oil price. Why is this? The indicators all spell huge trouble ahead. Could there be another fundamental oil/energy/financial mechanism operating here?

The Root Cause

The cause is not surprising. All the various new types of oil and a good deal of the conventional stuff that remains require far more energy to produce.

In 2015, The Hills Group (US Oil Engineers) published “Depletion – A Determination of the Worlds Petroleum Reserve”. It is meticulously researched and re-worked with trends double checked against published data. It follows on from the Hills Group 2013 work that accurately predicted the approaching oil price collapse after 2014 (which no-one else did) and calculated that the average oil price of 2016 would be ~$50/bbl. They claim theirs is the most accurate oil price indicator ever produced, with >96% accuracy with published past data. The Hills Group work has somewhat clarified my understanding of the core issues and I will try to summarise two crucial points as follows.

Oil can only be useful as an energy source if the energy contained in the product (ie transport fuel) is greater than the energy required to extract, refine and deliver the fuel to the end user.

If you electrolyse water, the hydrogen gas produced (when mixed with air and ignited), will explode with a bang (be careful doing this at home!). The hydrogen contained in the world’s water is an enormous potential energy source and contains infinitely more energy (as hydrogen) than humans could ever need. The problem is that it takes far more energy to produce a given amount of hydrogen from water than is available by combusting it. Oil is rapidly going the same way. Only a small proportion of what remains of conventional oil resources can provide an energy surplus for use as a fuel. All the other types of oil require more energy to produce and deliver as fuel to the end user (taking into account the whole oil production chain), than is contained in the fuel itself.

What people do not realise is that it takes oil to extract, refine, produce and deliver oil to the end user. The Hills Group calculates that in 2012, the average energy required by the oil production chain had risen so much that it was then equal to the energy contained in the oil delivered to the economy. In other words “In 2012 the oil industry production chain in total used 50% of all the energy contained in the oil delivered to the consumer”. This is trending rapidly to reach 100% early in the next decade.

At this point – no matter how much oil is left (a lot) and in whatever form (many), oil will be of no use as an energy source for transport fuels, since it will on average require more energy to extract, refine and deliver to the end-user, than the oil itself contains.

Because oil reserves are of decreasing quality and oil is getting more difficult and expensive to produce and transform into transport fuels; the amount of energy required by the whole oil production chain (the global oil industry) is rapidly increasing; leaving less and less left over for the rest of the economy.

In this context and relative to the IEA graph shown earlier, there is a big difference between annual gross oil production, and the amount of energy left in the product available for work as fuel. Whilst total global oil (all liquids) production currently appears to be still growing slowly, the energy required by the global oil industry is growing faster, and the net energy available for work by the end user is decreasing rapidly. This is illustrated by the following figure (Louis Arnoux 2016).

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The price of oil cannot exceed the value of the economic activity generated from the amount of energy available to end-users per barrel.

The rapid decline in oil-energy available to the economy is one of the key reasons for the equally rapid rise in global debt.

The global industrial world economy depends on oil as its prime energy source. Increasing growth of the world economy during the oil age has been exactly matched by oil production and use, but as Louis’ image shows, over the last forty years the amount of net energy delivered by the oil industry to the economy has been decreasing.

As a result, the economic value of a barrel of oil is falling fast. “In 1975 one dollar could have bought, on average, 42,348 BTU; by 2010 a dollar would only have bought 6,946 BTU” (The Hills Group 2015).

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This has caused a parallel reduction in real economic activity. I say “real” because today the financial world accounts for about 40% of global GDP, and I would like to remind economists and bankers that you cannot eat 0000’s on a computer screen, or use them to put food on the table, heat your house, or make something useful. GDP as an indicator of the global economy is an illusion. If you deduct financial services and account for debt, the real world economy is contracting fast.

To compensate, and continue the fallacy of endless economic growth, we have simply borrowed and borrowed, and borrowed. Huge amounts of additional debt are now required to sustain the “Growth Illusion”.

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In 2012 the decreasing ability of oil to power the economy intersected with the increasing cost of oil production at a point The Hills Group refers to as the maximum affordable consumer price (just over $100/bbl) and they calculated that the price of oil must fall soon afterwards. In 2014 much to everyone’s surprise (IEA, EIA, World Bank, Wall St Oil futures etc) the price of oil fell to where it is now. This is clearly illustrated by The Hills Group’s petroleum price curve of 2013 which correctly calculated that the 2016 average price of oil would be ~$50/bbl (Depletion – The Fate of the Oil Age 2013).

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In their detailed 2015 study The Hills Group writes (Depletion – A determination of the world’s petroleum reserve 2015);

“To determine the affordability range it is first observed that the price of a unit of petroleum cannot exceed the value of the economic activity (generated by the net energy) it supplies to the end consumer. (Since 2012) more of the energy from petroleum was being committed to the production of petroleum than was delivered to the consumer. This precipitated the 2014 price decline that reduced prices by 50%. The energy delivered to the end consumer will continue to decline and the end consumer maximum affordability will decline with it.

Dr Louis Arnoux explains this as follows: “In 1900 the Global Industrial World received 61% of the gross energy in a barrel of oil. In 2016 this is down to 7%. The global industrial world is being forced to contract because it is being starved of net energy from oil” (Louis Arnoux 2016).

This is reflected in the slowing down of global economic growth and the huge increase in total global debt.

Without noticing it, in 2012 the world entered “Emergency Red Alert”

In the following image, Dr Arnoux has reworked Hills Group petroleum price curve showing the impending collapse of thermodynamically driven oil prices – and the end of the oil age as we know it. This analysis is more than amply reinforced by the dire financial straits of the global oil industry, and the parlous state of the global economy and financial system.

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Oil is a finite resource which is subject to the same physical laws as many other commodities. The debate about peak oil has been clouded by the fact that oil consists of many different kinds of hydrocarbons; each of which has its own extraction profile. But conventional oil is the only category of oil that can be extracted with a whole production chain energy surplus. Production of this commodity (conventional oil) has undoubtedly peaked and is now declining. The amount of energy (and cost) required by the global oil industry to produce and deliver much of the remainder of conventional reserves and the many alternative categories of oil to the consumer, is rapidly increasing; and we are equally rapidly heading toward the day when we have used up those reserves of oil which will deliver an energy surplus (taking into account the whole production chain from extraction to delivery of the end product as fuel to the consumer).

The Global Oil Industry is one of the most advanced and efficient in the world and further efficiency gains will be minor compared to the scale of the problem, which is essentially one of oil depletion thermodynamics.

Humans are very good at propping up the unsustainable and this often results in a fast and unexpected collapse (eg Joseph Tainter: The collapse of complex societies). An example of this is the Seneca Curve/Cliff which appears to me to be an often-repeated defining trait of humanity. Our oil/financial system is a perfect illustration.

Debt is being used to extend the unsustainable and it looks as though we are headed for the “Mother of all Seneca Curves” which I have illustrated below:

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Because oil is the primary energy resource upon which all other energy sources depend, it is almost certain that a contraction in oil production would be reflected in a parallel reduction in other energy systems; as illustrated rather dramatically in this image by Gail Tverberg (the timing is slightly premature – but probably not by much).

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Energy and Money

Fundamental to all energy and economic systems is money. Debt is being used to prop up a contracting oil energy system, and the scale of money created as debt over the last few decades to compensate is truly phenomenal; amounting to hundreds of trillions (excluding “extra-terrestrial” amounts of “financials”), rising exponentially faster. This amount of debt, can never ever be repaid. The on-going contraction of the oil/energy system will exacerbate this trend until the financial system collapses. There is nothing anyone can do about it no matter how much money is printed, NIRP, ZIRP you name it – all the indicators are flashing red. The panacea of indefinite money printing will soon hit the thermodynamic energy wall of reality.

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The effects we currently observe such as exponential growth in debt (US Debt alone almost doubled from $10 trillion to nearly $20 trillion during Obama’s tenure), and the financial problems of oil majors and oil producing countries, are clear indicators of the imminent contraction in existing global energy and financial systems.

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The coming failure of the global economic system will be a systemic failure. I say “systemic” because for the last 150 years up till now there has always been cheap and abundant oil to power recovery from previous busts. This era is over. Cheap and abundant oil will not be available for recovery from the next crunch, and the world will need to adopt a completely different economic and financial model.

The Economics “profession”

Economists would have us believe it’s just another turn of the credit cycle. This dismal non-science is in the main the lapdog of the establishment, the global financial and corporate interests. They have engineered the “science” to support the myth of perpetual growth to suit the needs of their pay-masters, the financial institutions, corporations and governments (who pay their salaries, fund the universities and research, etc). They have steadfastly ignored all ecological and resource issues and trends and warnings such as LTG, and portrayed themselves as the pre-eminent arbiters of human enterprise. By vehemently supporting the status quo, they of all groups, I hold primarily responsible for the appalling situation the planet faces; the destruction of the natural world, and many other threats to the global environment and its ability to sustain civilisation as we know it.

I have news for the “Economics Profession”. The perpetual growth fantasy financial system based on unlimited cheap energy is now coming to an end. From the planet’s point of view – it simply couldn’t be soon enough. This will mark the end of what I call the “Oilocene”. Human activities are having such an effect on the planet that the present age has been classified by geologists as a new geological era “The Anthropocene”. But although humans had already made a significant impact on natural systems, the Anthropocene has largely been defined by the relatively recent discovery and use of liquid fossil energy reserves amounting to millions of years of stored solar energy. Unlimited cheap oil has fuelled exponential growth in human systems to the point that many of these are now greater than natural planetary ones.
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This cannot be sustained without huge amounts of cheap net oil energy, so we are inescapably headed for “the great deceleration”. The situation is very like the fate of the Titanic which I have outlined in my presentation. Of the few who had the courage to face the economic wind of perpetual growth, I salute the authors of LTG and the memory of Richard Douthwaite (The Growth Illusion 1992), and all at FEASTA who are working hard to warn a deaf Ireland of what is to come and why – and have very sensibly been preparing for it! We will all need a lot of courage and resilience to face what is coming down the line.

Ireland has a very short time available to prepare for hard times.

There are many things we could do here to soften the impact if the problem was understood for what it is. FEASTA publications such as the Before The Wells Run Dry and Fleeing Vesuvius; and David Korowicz’s works such as The Tipping Point and of course, The Hills Group 2015 publicationDepletion – a determination of the worlds petroleum reserve , and very many other references, provide background material and should be required urgent reading for all policy makers.

The pre-eminent challenge is energy for transport and agriculture. We could switch to use of compressed natural gas (CNG) as the urgent default transport/motive fuel in the short term since petrol and diesel engines can be converted to dual-fuel use with CNG; supplemented rapidly by biogas (since we are lucky enough to have plenty of agricultural land and water compared to many countries).

We could urgently switch to an organic high labour input agriculture concentrating on local self-sufficiency eliminating chemical inputs such as fertilisers pesticides and herbicides (as Cuba did after the fall of the Soviet Union). We could outlaw the use of oil for heating and switch to biomass.

We could penalise high electricity use and aim to massively cut consumption so that electricity can be supplied by completely renewable means – preserving our natural gas for transport fuel and the rapid transition from oil. The Grid could be urgently reconfigured to enable 100% use of renewable electricity within a few years. We could concentrate on local production of food, goods and services to reduce transport needs.

These measures would create a lot of jobs and improve the balance of payments. They have already been proposed in one form or another by FEASTA over the last 15 years.

Ireland has made a start, but it is insignificant compared to the scale and timescale of the challenge ahead as illustrated by the next image (SEAI: Energy in Ireland – Key Statistics 2015). We urgently need to shrink the oil portion to a small fraction of current use.

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Current fossil energy use is very wasteful. By reducing waste and increasing efficiency we can use less. For instance, a large amount of the energy used as transport fuels and for electricity generation is lost to atmosphere as waste heat. New technological solutions include a global initiative to mount an affordable emergency response called nGeni that is solely based on well-known and proven technology components, integrated in a novel way, with a business and financial model enabling it to tap into over €5 trillion/year of funds currently wasted globally as waste heat. This has potential for Ireland, and will be outlined in a subsequent post.

To finance all the changes we need to implement, quickly (and hopefully before the full impact of the oil/financial catastrophe really kicks in), we could for instance create something like a massive multibillion “National Sustainability and Renewable Energy Bond”. Virtually all renewables provide a better (often substantially better) return on investment compared to bank savings, government bonds, etc; especially in the age of zero and negative interest rate policies ZIRP, NIRP etc.

We may need to think about managing this during a contraction in the economy and financial system which could occur at any time. We certainly could do with a new clever breed of “Ecological Economists” to plan for the end of the old system and its replacement by a sustainable new one. There is no shortage of ideas. The disappearance of trillions of fake money and the shrinking of national and local tax income which currently funds the existing system and its social programmes will be a huge challenge to social stability in Ireland and all over the world.

It’s now “Emergency Red Alert”. If we delay, we won’t have the energy or the money to implement even a portion of what is required. We need to drag our politicians and policy makers kicking and screaming to the table, to make them understand the dire nature of the predicament and challenge them to open their eyes to the increasingly obvious, and to take action. We can thank The Hills Group for elucidating so clearly the root causes of the problem, but the indicators of systemic collapse have for many years been frantically jumping up and down, waving at us and shouting LOOK AT ME! Meanwhile the majority of blinkered clueless economists that advise business and government and who plan our future, look the other way.

In 1972 “The Limits to Growth” warned of the consequences of growing reliance on the finite resource called “oil” and of the suicidal economics mantra of endless growth. The challenge Ireland will soon face is managing a fast economic and energy contraction and implementing sustainability on a massive scale whilst maintaining social cohesion. Whatever the outcome (managed or chaotic contraction), we will soon all have to live with a lot less energy and physical resources. That in itself might not necessarily be such a bad thing provided the burden is shared. “Modern citizens today use more energy and physical resources in a month than our great-grandparents used during their whole lifetime” (John Thackera; “From Oil Age to Soil Age”, Doors to Perception; Dec 2016). Were they less happy than us?

PDF of this article
Powerpoint presentation

Featured image: used motor oil. Source: http://www.freeimages.com/photo/stain-1507366





Peak Uranium by Ugo Bardi

12 01 2017

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THIS should get Eclipse all stirred up……..

[ This is an extract of Ugo Bardi’s must read “Extracted”.  Many well-meaning citizens favor nuclear power because it doesn’t emit greenhouse gases.  The problem is that the Achilles heel of civilization is our dependency on trucks of all kinds, which run on diesel fuel because diesel engines transformed our civilization by their ability to do heavy work better than steam, gasoline, or any other engine on earth.  Trucks are required to keep the supply chains going that every person and business on earth depend on, as well as mining, tractors/harvesters, road & other construction trucks, logging etc.  Since trucks can’t run on electricity, anything that generates electricity is not a solution, nor is it likely that the electric grid can ever be 100% renewable (read “When trucks stop running”, this can’t be explained in a sound-bite).

Alice Friedemann   www.energyskeptic.com  author of “When Trucks Stop Running: Energy and the Future of Transportation”, 2015, Springer and “Crunch! Whole Grain Artisan Chips and Crackers”. Podcasts: Practical Prepping, KunstlerCast 253, KunstlerCast278, Peak Prosperity , XX2 report ]

Bardi, Ugo. 2014. Extracted: How the Quest for Mineral Wealth Is Plundering the Planet. Chelsea Green Publishing.

Although there is a rebirth of interest in nuclear energy, there is still a basic problem: uranium is a mineral resource that exists in finite amounts.

Even as early as the 1950s it was clear that the known uranium resources were not sufficient to fuel the “atomic age” for a period longer than a few decades.

That gave rise to the idea of “breeding” fissile plutonium fuel from the more abundant, non-fissile isotope 238 of uranium. It was a very ambitious idea: fuel the industrial system with an element that doesn’t exist in measurable amounts on Earth but would be created by humans expressly for their own purposes. The concept gave rise to dreams of a plutonium-based economy. This ambitious plan was never really put into practice, though, at least not in the form that was envisioned in the 1950s and ’60s.Several attempts were made to build breeder reactors in the 1970s, but the technology was found to be expensive, difficult to manage, and prone to failure. Besides, it posed unsolvable strategic problems in terms of the proliferation of fissile materials that could be used to build atomic weapons. The idea was thoroughly abandoned in the 1970s, when the US Senate enacted a law that forbade the reprocessing of spent nuclear fuel. 47

A similar fate was encountered by another idea that involved “breeding” a nuclear fuel from a naturally existing element—thorium. The concept involved transforming the 232 isotope of thorium into the fissile 233 isotope of uranium, which then could be used as fuel for a nuclear reactor (or for nuclear warheads). 48 The idea was discussed at length during the heydays of the nuclear industry, and it is still discussed today; but so far, nothing has come out of it and the nuclear industry is still based on mineral uranium as fuel.

Today, the production of uranium from mines is insufficient to fuel the existing nuclear reactors. The gap between supply and demand for mineral uranium has been as large as almost 50 percent in the period between 1995 and 2005, but it has been gradually reduced during the past few years.

The U.S. minded 370,000 metric tons the past 50 years, peaking in 1981 at 17,000 tons/year.  Europe peaked in the 1990s after extracting 460,000 tons.  Today nearly all of the 21,000 ton/year needed to keep European nuclear plants operating is imported.

The European mining cycle allows us to determine how much of the originally estimated uranium reserves could be extracted versus what actually happened before it cost too much to continue. Remarkably in all countries where mining has stopped it did so at well below initial estimates (50 to 70%). Therefore it’s likely ultimate production in South Africa and the United States can be predicted as well.

The Soviet Union and Canada each mined 450,000 tons. By 2010 global cumulative production was 2.5 million tons.  Of this, 2 million tons has been used, and the military had most of the remaining half a million tons.

The most recent data available show that mineral uranium accounts now for about 80% of the demand. 49 The gap is filled by uranium recovered from the stockpiles of the military industry and from the dismantling of old nuclear warheads.

This turning of swords into plows is surely a good idea, but old nuclear weapons and military stocks are a finite resource and cannot be seen as a definitive solution to the problem of insufficient supply. With the present stasis in uranium demand, it is possible that the production gap will be closed in a decade or so by increased mineral production. However, prospects are uncertain, as explained in “The End of Cheap Uranium.” In particular, if nuclear energy were to see a worldwide expansion, it is hard to see how mineral production could satisfy the increasing uranium demand, given the gigantic investments that would be needed, which are unlikely to be possible in the present economically challenging times.

At the same time, the effects of the 2011 incident at the Fukushima nuclear power plant are likely to negatively affect the prospects of growth for nuclear energy production, and with the concomitant reduced demand for uranium, the surviving reactors may have sufficient fuel to remain in operation for several decades.

It’s true that there are large quantities of uranium in the Earth’s crust, but there are limited numbers of deposits that are concentrated enough to be profitably mined. If we tried to extract those less concentrated deposits, the mining process would require far more energy than the mined uranium could ultimately produce [negative EROI].

Modeling Future Uranium Supplies

Uranium supply and demand to 2030

 

Using historical data for countries and single mines, it is possible to create a model to project how much uranium will be extracted from existing reserves in the years to come. 54 The model is purely empirical and is based on the assumption that mining companies, when planning the extraction profile of a deposit, project their operations to coincide with the average lifetime of the expensive equipment and infrastructure it takes to mine uranium—about a decade.

Gradually the extraction becomes more expensive as some equipment has to be replaced and the least costly resources are mined. As a consequence, both extraction and profits decline. Eventually the company stops exploiting the deposit and the mine closes. The model depends on both geological and economic constraints, but the fact that it has turned out to be valid for so many past cases shows that it is a good approximation of reality.

This said, the model assumes the following points:

  • Mine operators plan to operate the mine at a nearly constant production level on the basis of detailed geological studies and to manage extraction so that the plateau can be sustained for approximately 10 years.
  • The total amount of extractable uranium is approximately the achieved (or planned) annual plateau value multiplied by 10.

Applying this model to well-documented mines in Canada and Australia, we arrive at amazingly correct results. For instance, in one case, the model predicted a total production of 319 ± 24 kilotons, which was very close to the 310 kilotons actually produced. So we can be reasonably confident that it can be applied to today’s larger currently operating and planned uranium mines. Considering that the achieved plateau production from past operations was usually smaller than the one planned, this model probably overestimates the future production.

Table 2 summarizes the model’s predictions for future uranium production, comparing those findings against forecasts from other groups and against two different potential future nuclear scenarios.

As you can see, the forecasts obtained by this model indicate substantial supply constraints in the coming decades—a considerably different picture from that presented by the other models, which predict larger supplies.

The WNA’s 2009 forecast differs from our model mainly by assuming that existing and future mines will have a lifetime of at least 20 years. As a result, the WNA predicts a production peak of 85 kilotons/year around the year 2025, about 10 years later than in the present model, followed by a steep decline to about 70 kilotons/year in 2030. Despite being relatively optimistic, the forecast by the WNA shows that the uranium production in 2030 would not be higher than it is now. In any case, the long deposit lifetime in the WNA model is inconsistent with the data from past uranium mines. The 2006 estimate from the EWG was based on the Red Book 2005 RAR (reasonably assured resources) and IR (inferred resources) numbers. The EWG calculated an upper production limit based on the assumption that extraction can be increased according to demand until half of the RAR or at most half of the sum of the RAR and IR resources are used. That led the group to estimate a production peak around the year 2025.

Assuming all planned uranium mines are opened, annual mining will increase from 54,000 tons/year to a maximum of 58 (+ or – 4) thousand tons/year in 2015. [ Bardi wrote this before 2013 and 2014 figures were known. 2013 was 59,673 (highest total) and 56,252 in 2014.]

Declining uranium production will make it impossible to obtain a significant increase in electrical power from nuclear plants in the coming decades.





Has the revolution begun…?

18 05 2016

julian cribb

Julian Cribb

Written by Julian Cribb, and originally published in the Sydney Morning Herald.

Election 2016 may herald the beginning of the end of party rule in Australian politics. Indeed, rather like Mikhail Gorbachev, Malcolm Turnbull might just have inadvertently pulled the trigger on the dissolution of the party system. It’s a big thought, after a century or more of the national interest being subordinated to vested interests, but there are signs that Australian electors are thoroughly jack of party politics and more than willing to try new things and new people.
It shows in the febrile oscillation of the opinion polls, the frequent switches of government and leader, the determination of voters to deny the major parties control in the Senate. It shows in the disgust of ordinary Australians at each new case of electoral corruption, secret dealing and rip-off by spendthrift MPs, who preach restraint while plundering the public purse.

It shows in our dismay at the ongoing deterioration in our education system – school, university and TAFE – the degradation of our scientific enterprise and healthcare system – which overall add up to an attrition in the nation’s skills, technologies, fitness for work and capacity for sustainable economic growth.

It shows in the complicity of the mainstream parties in the wrecking of the Australian landscape and oceans – from the Liverpool Plains, to the extinction of native species, to the now almost-unavoidable ruin of the Great Barrier Reef. As Euan Ritchie and Don Driscoll noted on The Conversation, the national biodiversity crisis does not rate priority policy from any of the major parties.

It shows in the Canute-like attempts of politicians across the spectrum to turn back the flood-tide of Australian opinion on issues such as domestic violence, marriage equality and assisted dying.

And it shows in the public revulsion at the engagement of the main political parties in endless, pointless, unwinnable wars, in their use of terrorism to justify greater surveillance and repression, and their inhuman treatment of people fleeing those wars.

The word ‘party’ is from the Latin, pars, partis – a part – the stem that gives rise to the term partial. And that is exactly what Australian political parties today have become – bodies partial to their own interests and those of a tiny minority of supporters. By definition, as well as by contemporary behaviour, they are no longer aligned with the national interest or the public good. And we are simply the mugs who let them get away with it, time and again – probably because we haven’t yet completely figured out there is another way.

Once upon a time, political vested interests were diluted by well-meaning people with a commitment to public service. No longer. A never-ending cycle of political pay hikes, rorting of public funds and parliamentary privileges, gold-plated pensions and ‘entitlements’, furnishes the proof that most of them are in it for what they can get. The driving ambition of Australian politics has become personal, rather than national, enrichment.

In 2014-15, according to the Australian Electoral Commission, the combined parties of Australia received over $170 million, mainly donations and mostly from private individuals and companies. As the public understands, it’s a fair bet most of that was donated in the expectation of some sort of special treatment or monetary advantage granted by the ruling party. In other words, an officially-sanctioned bribe. However, as the NSW ICAC continually discloses, these are but the first whiff of a large and festering corpus of hidden or less-visible rewards, abuses of office and, post-politics, the appointment of scores of former Ministers and MPs to juicy sinecures on corporate boards, where they peddle special influence for personal gain.

The hypocrisy of this system has recently been illumined in the LNP’s attempts to expose Labor’s connection to shonky union affairs in the Royal Commission, and the ALP’s counterbattery retort in the form of a proposed banking Royal Commission. The answer obvious to most Australians – a Federal Independent Commission Against Corruption – is one that none of the leading parties wishes, for obvious reasons, to countenance: it would expose glaring evidence that the entire party system is corrupt and rotten, root and branch.

The role of the fossil fuels and mining lobby in derailing climate policy in Australia is a further case of the preparedness of parties and their paymasters to sacrifice the national future, our grandchildren and the planet, to their own short-term interests. This alone demands a Royal Commission – or a Federal ICAC – if not substantial jail sentences, as any crime against humanity deserves.

Disenchantment with political parties has halved their membership in recent decades. Despite the secrecy, journalistic investigations suggest that the combined membership of all parties totals under 100,000. No party comes even close to the membership of, say, the Collingwood Football Club (76,000 – maybe it should run for office instead of trying to play football…). It is therefore likely that our leaders are being chosen for us by less than 0.4 per cent of the Australian population, a travesty of democracy (and in reality, by a microscopic handful of powerbrokers within this tiny minority). Not surprisingly an Australian National University study (2014) found that only 43 per cent of Australians believe it makes any difference who is in power.

Given all this, one enchanting possibility in the coming election is that Turnbull’s gamble to rid himself of the cross-benches might just backfire horribly – as disgusted voters decide to punish both he and the equally disappointing and compromised Shorten. It’s not the sort of thing that shows up in opinion polls, which are interpreted chiefly by the media’s need for short, simplistic two-horse-race stories. Neither the parties nor the media display much grasp of the emerging multi-spectral character of Australian politics, in which hung parliaments, complex alliances of minor parties and negotiation with a multiplying throng of independents form the central dynamic. A Scandinavian political scene, rather than the one we’re accustomed to.

It only takes one thing for this to happen. For a majority of voters to rip up their party how-to-vote cards, ignore the deluge of deceptive advertising and soon-to-be-broken promises, and put their mark next to the name of the most decent, well-intentioned Australian standing in their electorate. The one with a track record for honesty, trustworthiness, integrity, hard work and commitment to the future. The exact antithesis of the usual party hack.

Of such small things are political revolutions made.
Julian Cribb is a Canberra-based author and science writer.
Read more: http://www.smh.com.au/comment/is-this-the-end-of-party-rule-20160502-gokc1m.html#ixzz48y8o1THi
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How “Green” is Lithium?

17 04 2016

Originally published on the KITCO website in 2014….. interesting how this makes no mention of NiFe batteries, they are simply ‘under the radar’……

 

The market for battery electric and hybrid vehicles is growing slowly but steadily – from 0.4% in 2012 to 0.6% in 2013 and 0.7% in 2014 (year-to-date) in the United States alone.

Consumers buy these vehicles despite lower gas prices out of a growing conscience and concern for the environment. With this strong attraction to alternative energy, grows the demand for lithium, which is predominantly mined and imported from countries like Bolivia, Chile, China and Argentina.

Within the U.S., only Nevada, future home of Tesla’s new “Gigafactory” for batteries, produces lithium. However, the overall ecological impact of lithium ion batteries remains somewhat unclear, as does the “well-to-wheel” effort and cost to recharge such batteries.

To fully grasp the relevance and environmental impact of lithium it is important to note that lithium ion batteries are also found in most mobile phones, laptop computers, wearable electronics and almost anything else powered by rechargeable batteries.

Dozens of reports are available on the ecological impact of lithium mining. Unfortunately, many of them are influenced by the perspective of the organizations or authors releasing them. Reducing the available information to studies carried out by government bodies and research institutes around the world, a picture emerges nonetheless:

  • Elemental lithium is flammable and very reactive. In nature, lithium occurs in compounded forms such as lithium carbonate requiring chemical processing to be made usable.
  • Lithium is typically found in salt flats in areas where water is scarce. The mining process of lithium uses large amounts of water. Therefore, on top of water contamination as a result of its use, depletion or transportation costs are issues to be dealt with. Depletion results in less available water for local populations, flora and fauna.
  • Toxic chemicals are used for leaching purposes, chemicals requiring waste treatment. There are widespread concerns of improper handling and spills, like in other mining operations around the world.
  • The recovery rate of lithium ion batteries, even in first world countries, is in the single digit percent range. Most batteries end up in landfill.
  • In a 2013 report, the U.S. Environmental Protection Agency (EPA) points out that nickel and cobalt, both also used in the production of lithium ion batteries, represent significant additional environmental risks.

A 2012 study titled “Science for Environment Policy” published by the European Union compares lithium ion batteries to other types of batteries available (lead-acid, nickel-cadmium, nickel-metal-hydride and sodium sulphur). It concludes that lithium ion batteries have the largest impact on metal depletion, suggesting that recycling is complicated. Lithium ion batteries are also, together with nickel-metal-hydride batteries, the most energy consuming technologies using the equivalent of 1.6kg of oil per kg of battery produced. They also ranked the worst in greenhouse gas emissions with up to 12.5kg of CO2 equivalent emitted per kg of battery. The authors do point out that “…for a full understanding of life cycle impacts, further aspects of battery use need to be considered, such as length of usage, performance at different temperatures, and ability to discharge quickly.”

Technology will of course improve, lithium supplies will be sufficient for the foreseeable future, and recycling rates will climb. Other issues like the migration of aging cars and electronic devices to countries with less developed infrastructures will, however, remain. As will the reality of lithium mining and processing. It is therefore conceivable that new battery technologies (sea water batteries or the nano-flowcell, for instance) will gain more importance in years to come, as will hydrogen fuel cells.

We will report about the pros and cons of each of these alternatives in future issues of Tech Metals Insider.

Bodo Albrecht,
tminsider@eniqma.com





The False Solutions of Green Energy

13 10 2014

Max Wilbert & Cameron Foley expose the fallacies of “green” technology by tracing the process of industrial production for these technologies and exposing the destruction they cause.

I suggest you download the pdf file that has the slides in it, and watch that while you listen to the youtube video…….

Powerpoint slides available at https://dl.dropboxusercontent.com/u/123254/Long%20Term%20Shares/PIELC%20Talk.pdf





More on Renewables fantasy

10 10 2014

As debate continues to rage over at The Conversation I have now mentioned several times regarding future Carbon emissions, I continually come across people who misunderstand our energy conundrums.  It gives me satisfaction to be able to rattle their collective cages, and introduce them to notions like the energy cliff, and the utterly essential continuation of oil production for mining the resources we need to keep business as usual operating.

Interestingly, some of the commentators there introduce me to things I knew nothing about.  Which is good; because it makes me think further about why their solutions will not save the day, and forces me to do some more research and keep the old brain cells alive and ticking.  For instance, when I pointed the conversation towards Simon Michaux’s Peak Mining presentation available on this blog, and that I thought mining without diesel would be impossible, along comes this person who points me to mining trucks powered by overhead electricity, much like an electric train.  This is readily feasible of course, because all those big Tonka Trucks are already running on electric motors, powered by a huge diesel enegine that spins an equally huge generator to produce the electricity for the motors….. very much like a diesel electric locomotive.  My first reaction, however, was ‘how can they move the overhead lines constantly as the bottom of the mine expands and keeps changing shape’?

Here is a video of how they operate……

Now, this video makes claims such as ‘saving energy’, which I suggest it clearly does not.  While running in ‘trolley mode’, diesel consumption may fall from 360L/hr to 45L/hr, but now it’s burning electricity instead, and it’s STILL burning diesel!  On top of that, this video claims that by using electric lines, they can increase the speed of the truck from 8km/hr to 24km/hr….  hello, don’t they realise there is no free lunch?  Going faster requires more energy, especially uphill!  Instead of reducing energy consumption, I think this would actually increase it.  I would like to see total energy consumption in MJ/km rather than merely saying the trucks use less diesel.  You’ll notice that the overhead lines are only used in the uphill sections.

This then got me thinking about why they would go to this trouble.  After all, spending capital to electrify the lifting of ores from the bottom of a mine pit just as the price of these commodities is falling, seems counter intuitive to me.  Until that is, you put two and two together and realise that as the ore concentrations fall off a cliff, more and more ore has to be brought up for processing, and faster and faster to boot, just to keep up with production of the final resource, in this case Copper.  But wait, there’s more…  research shows Zambia produces 200 barrels of oil a day.  NOT 200,000……  two hundred!  On top of that, Zambia gets 100% of its electricity from hydro.  So of course, what else would they do?

Further down The Conversation, someone else makes the comment “Solar thermal is a very new technology, do you think ERoEI values estimated now will apply for all time? ”  Well no…….  thermodynamics dictates that ERoEI will always fall!

“”To maintain a society like ours requires an overall ERoEI of about 12:1″. Perhaps, but perhaps not, that’s a fairly bold assertion, I’m not sure of the weight of evidence behind it. One would also assume that as the easily accessible fossil fuels are increasingly depleted, the ERoEI of fossil fuels would be decreasing (unlike that of renewables which is increasing).”

This is classic.  People who want to believe in a renewables powered future apparently also believe that renewables’ ERoEI can magically rise, just as the fossil fuels’ ERoEI, the very energy sources used to make the renewables, falls.  Talk about white man’s magic….

IF we require to build more and more robots, just build more and more robots, to make more and more PVs to power the robots, and make more robots to build more Tonka Tucks, to dig more and more mineral ores, just so we can build more factories to house more robots to….  well, you get the message.  We are sinking alarmingly increasing amounts of energy and non renewable resources into a black hole, and for what…?

Making someone already rich even richer.  Game over.

By the way, an alarmingly high number of people are predicting a looming financial correction of epic proportion, maybe even this month (October 2014).  I’m not qualified to comment on this, except as just another passenger, but I found this quite concerning.  A bit long at 34 minutes, and the interviewer keeps interrupting annoyingly, but what does everyone else think?





‘Sleepwalking to Extinction’: Capitalism and the Destruction of Life and Earth

23 11 2013

Reblogged from http://www.commondreams.org/view/2013/11/15-3

“even if we immediately replaced every fossil-fuel-powered electric generating plant on the planet with 100% renewable solar, wind and water power, this would only reduce global GHG emissions by around 17%.”

When, on May 10th, scientists at Mauna Loa Observatory on the big island of Hawaii announced that global CO2 400ppm
emissions had crossed a threshold at 400 parts per million (ppm) for the first time in millions of years, a sense of dread spread around the world and not only among climate scientists. CO2 emissions have been relentlessly climbing since Charles David Keeling first set up his tracking station near the summit of Mauna Loa Observatory in 1958 to monitor average daily global CO2 levels. At that time, CO2 concentrations registered 315 ppm. CO2 emissions and atmospheric concentrations have been rising ever since and have recently passed a dangerous tipping point: 440ppm.

For all the climate summits, promises of “voluntary restraint,” carbon trading and carbon taxes, the growth of CO2 emissions and atmospheric concentrations have not just been unceasing, they have been accelerating in what scientists have dubbed the “Keeling Curve.” In the early 1960s, CO2 ppm concentrations in the atmosphere grew by 0.7ppm per year. In recent decades, especially as China has industrialized, the growth rate has tripled to 2.1 ppm per year. In just the first 17 weeks of 2013, CO2 levels jumped by 2.74 ppm compared to last year.

Carbon concentrations have not been this high since the Pliocene period, between 3m and 5m years ago, when global average temperatures were 3˚C or 4˚C hotter than today, the Arctic was ice-free, sea levels were about 40m higher and jungles covered northern Canada; Florida, meanwhile, was under water along with other coastal locations we now call New York, London, Shanghai, Hong Kong, Sydney and many others. Crossing this threshold has fuelled fears that we are fast approaching converging “tipping points” — melting of the subarctic tundra or the thawing and releasing of the vast quantities of methane in the Arctic sea bottom — that will accelerate global warming beyond any human capacity to stop it.

“I wish it weren’t true, but it looks like the world is going to blow through the 400 ppm level without losing a beat,” said Scripps Institute geochemist Ralph Keeling, son of Charles Keeling.

“At this pace, we’ll hit 450 ppm within a few decades.”

“It feels like the inevitable march toward disaster,” said Maureen E. Raymo, a scientist at the Lamont-Doherty Earth Observatory, a unit of Columbia University.

Why are we marching toward disaster, “sleepwalking to extinction” as the Guardian’s George Monbiot once put it? Why can’t we slam on the brakes before we ride off the cliff to collapse? I’m going to argue here that the problem is rooted in the requirement of capitalist production. Large corporations can’t help themselves; they can’t change or change very much. So long as we live under this corporate capitalist system we have little choice but to go along in this destruction, to keep pouring on the gas instead of slamming on the brakes, and that the only alternative — impossible as this may seem right now — is to overthrow this global economic system and all of the governments of the 1% that prop it up and replace them with a global economic democracy, a radical bottom-up political democracy, an eco-socialist civilization.

Although we are fast approaching the precipice of ecological collapse, the means to derail this train wreck are in the making as, around the world we are witnessing a near simultaneous global mass democratic “awakening” — as the Brazilians call it — from Tahir Square to Zucotti Park, from Athens to Istanbul to Beijing and beyond such as the world has never seen. To be sure, like Occupy Wall Street, these movements are still inchoate, are still mainly protesting what’s wrong rather than fighting for an alternative social order. Like Occupy, they have yet to clearly and robustly answer that crucial question: “Don’t like capitalism, what’s your alternative?” Yet they are working on it, and they are for the most part instinctively and radically democratic; in this lies our hope.

Capitalism is, overwhelmingly, the main driver of planetary ecological collapse

From climate change to natural resource overconsumption to pollution, the engine that has powered three centurieshttps://i0.wp.com/www.newscientist.com/data/images/archive/2605/26051202.jpg of accelerating economic development, revolutionizing technology, science, culture and human life itself is, today, a roaring out-of-control locomotive mowing down continents of forests, sweeping oceans of life, clawing out mountains of minerals, pumping out lakes of fuels, devouring the planet’s last accessible natural resources to turn them into “product,” while destroying fragile global ecologies built up over eons of time. Between 1950 and 2000 the global human population more than doubled from 2.5 to 6 billion. But in these same decades, consumption of major natural resources soared more than sixfold on average, some much more. Natural gas consumption grew nearly twelvefold, bauxite (aluminium ore) fifteenfold. And so on. At current rates, Harvard biologist E.O. Wilson says that “half the world’s great forests have already been levelled and half the world’s plant and animal species may be gone by the end of this century.”

Corporations aren’t necessarily evil, though plenty are diabolically evil, but they can’t help themselves. They’re just doing what they’re supposed to do for the benefit of their shareholders. Shell Oil can’t help but loot Nigeria and the Arctic and cook the climate. That’s what shareholders demand. BHP Billiton, Rio Tinto and other mining giants can’t resist mining Australia’s abundant coal and exporting it to China and India. Mining accounts for 19% of Australia’s GDP and substantial employment even as coal combustion is the single worst driver of global warming. IKEA can’t help but level the forests of Siberia and Malaysia to feed the Chinese mills building their flimsy disposable furniture (IKEA is the third largest consumer of lumber in the world). Apple can’t help it if the cost of extracting the “rare earths” it needs to make millions of new iThings each year is the destruction of the eastern Congo — violence, rape, slavery, forced induction of child soldiers, along with poisoning local waterways. Monsanto and DuPont and Syngenta and Bayer Crop Science have no choice but to wipe out bees, butterflies, birds, small farmers and extinguish crop diversity to secure their grip on the world’s food supply while drenching the planet in their Roundups and Atrazines and neonicotinoids.

This is how giant corporations are wiping out life on earth in the course of a routine business day. And the bigger the corporations grow, the worse the problems become.

In Adam Smith’s day, when the first factories and mills produced hat pins and iron tools and rolls of cloth by the thousands, capitalist freedom to make whatever they wanted didn’t much matter because they didn’t have much impact on the global environment. But today, when everything is produced in the millions and billions, then trashed today and reproduced all over again tomorrow, when the planet is looted and polluted to support all this frantic and senseless growth, it matters — a lot.

The world’s climate scientists tell us we’re facing a planetary emergency. They’ve been telling us since the 1990s that if we don’t cut global fossil fuel greenhouse gas emissions by 80-90% below 1990 levels by 2050 we will cross critical tipping points and global warming will accelerate beyond any human power to contain it. Yet despite all the ringing alarm bells, no corporation and no government can oppose growth and, instead, every capitalist government in the world is putting pedal to the metal to accelerate growth, to drive us full throttle off the cliff to collapse.

Marxists have never had a better argument against capitalism than this inescapable and apocalyptic “contradiction.” Solutions to the ecological crisis are blindingly obvious but we can’t take the necessary steps to prevent ecological collapse because, so long as we live under capitalism, economic growth has to take priority over ecological concerns.

We all know what we have to do: suppress greenhouse gas emissions. Stop over-consuming natural resources. Stop the senseless pollution of the earth, waters, and atmosphere with toxic chemicals. Stop producing waste that can’t be recycled by nature. Stop the destruction of biological diversity and ensure the rights of other species to flourish. We don’t need any new technological breakthroughs to solve these problems. Mostly, we just stop doing what we’re doing. But we can’t stop because we’re all locked into an economic system in which companies have to grow to compete and reward their shareholders and because we all need the jobs.

James Hansen, the world’s preeminent climate scientist, has argued that to save the humans:

“Coal emissions must be phased out as rapidly as possible or global climate disasters will be a dead certainty … Yes, [coal, oil, gas] most of the fossil fuels must be left in the ground. That is the explicit message that the science provides. […] Humanity treads today on a slippery slope. As we continue to pump greenhouse gases in the air, we move onto a steeper, even more slippery incline. We seem oblivious to the danger — unaware of how close we may be to a situation in which a catastrophic slip becomes practically unavoidable, a slip where we suddenly lose all control and are pulled into a torrential stream that hurls us over a precipice to our demise.”

But how can we do this under capitalism? After his climate negotiators stonewalled calls for binding limits on CO2 emissions at Copenhagen, Cancun, Cape Town and Doha, President Obama is now trying to salvage his environmental “legacy” by ordering his EPA to impose “tough” new emissions limits on existing power plants, especially coal-fired plants. But this won’t salvage his legacy or, more importantly, his daughters’ futures because how much difference would it make, really, if every coal-fired power plant in the U.S. shut down tomorrow when U.S. coal producers are free to export their coal to China, which they are doing, and when China is building another coal-fired power plan every week? The atmosphere doesn’t care where the coal is burned. It only cares how much is burned.

Yet how could Obama tell American mining companies to stop mining coal? This would be tantamount to socialism. But if we do not stop mining and burning coal, capitalist freedom and private property is the least we’ll have to worry about. Same with Obama’s “tough” new fuel economy standards. In August 2012 Obama boasted that his new Corporate Average Fuel Economy (CAFE) standards would “double fuel efficiency” over the next 13 years to 54.5 miles per gallon by 2025, up from 28.6 mpg at present — cutting vehicle CO2 emissions in half, so helping enormously to “save the planet.” But as the Center for Biological Diversity and other critics have noted, Obama was lying, as usual.

Four tonne Ford Excursion

First, his so-called “tough” new CAFE standards were so full of loopholes, negotiated with Detroit, that they actually encourage more gas-guzzling, not less. That’s because the standards are based on a sliding scale according to “vehicle footprints” — the bigger the car, the less mileage it has to get to meet its “standard.” So in fact Obama’s “tough” standards are (surprise) custom designed to promote what Detroit does best — produce giant Sequoias, mountainous Denalis, Sierras, Yukons, Tundras and Ticonderogas, Ram Chargers and Ford F series luxury trucks, grossly obese Cadillac Escalades, soccer-kid Suburbans, even 8,000 (!) pound Ford Excursions — and let these gross gas hogs meet the “fleet standard.” These cars and “light” trucks are among the biggest selling vehicles in America today (GM’s Sierra is #1) and they get worse gas mileage than American cars and trucks half a century ago. Cadillac’s current Escalade gets worse mileage than its chrome bedecked tail fin-festooned land yachts of the mid-1950s! Little wonder Detroit applauded Obama’s new CAFE standards instead of damning them as usual. Secondly, what would it matter even if Obama’s new CAFE standards actually did double fleet mileage — when American and global vehicle fleets are growing exponentially?

populationCO2In 1950 Americans had one car for every three people. Today we have 1.2 cars for every American. In 1950 when there were about 2.6 billion humans on the planet, there were 53 million cars on the world’s roads — about one for every 50 persons. Today, there are 7 billion people but more than 1 billion cars and industry forecasters expect there will be 2 to 2.5 billion cars on the world’s roads by mid-century. China alone is expected to have a billion. So, at the end of the day, incremental half measures like CAFE standards can’t stop rising GHG missions. Barring some technical miracle, the only way to cut vehicle emissions is to just stop making them — drastically suppress vehicle production, especially of the worst gas hogs.

In theory, Obama could simply order GM to stop building its humongous gas guzzlers and switch to producing small economy cars. After all, the federal government owns the company! But of course, how could he do any such thing? Detroit lives by the mantra “big car big profit, small car small profit.” Since Detroit has never been able to compete against the Japanese and Germans in the small car market, which is already glutted and nearly profitless everywhere, such an order would only doom GM to failure, if not bankruptcy (again) and throw masses of workers onto the unemployment lines. So given capitalism, Obama is, in fact, powerless. He’s locked in to promoting the endless growth of vehicle production, even of the worst polluters — and lying about it all to the public to try to patch up his pathetic “legacy.” And yet, if we don’t suppress vehicle production, how can we stop rising CO2 emissions?

In the wake of the failure of climate negotiators from Kyoto to Doha to agree on binding limits on GHG emissions, exasperated British climate scientists Kevin Anderson and Alice Bows at the Tyndall Centre, Britain’s leading climate change research center, wrote in September 2012 that we need an entirely new paradigm:

Government policies must “radically change” if “dangerous” climate change is to be avoided “We urgently need to acknowledge that the development needs of many countries leave the rich western nations with little choice but to immediately and severely curb their greenhouse gas emissions… [The] misguided belief that commitments to avoid warming of 2˚C can still be realized with incremental adjustments to economic incentives. A carbon tax here, a little emissions trading there and the odd voluntary agreement thrown in for good measure will not be sufficient … long-term end-point targets (for example, 80% by 2050) have no scientific basis. What governs future global temperatures and other adverse climate impacts are the emissions from yesterday, today and those released in the next few years.”

And not just scientists. In its latest world energy forecast released on November 12, 2012, the International Energy Agency (IEA) warns that despite the bonanza of fossil fuels now made possible by fracking, horizontal and deepwater drilling, we can’t consume them if we want to save the humans: “The climate goal of limiting global warming to 2˚C is becoming more difficult and costly with each year that passes… no more than one-third of proven reserves of fossil fuels can be consumed prior to 2050 if the world is to achieve the 2˚C goal…” Of course the science could be wrong about this. But so far climate scientists have consistently underestimated the speed and ferocity of global warming, and even prominent climate change deniers have folded their cards.

Still, it’s one thing for James Hansen or Bill McKibben to say we need to “leave the coal in the hole, the oil in the soil, the gas under the grass,” to call for “severe curbs” in GHG emissions — in the abstract. But think about what this means in our capitalist economy. Most of us, even passionate environmental activists, don’t really want to face up to the economic implications of the science we defend.

That’s why, if you listen to environmentalists like Bill McKibben for example, you will get the impression that global warming is mainly driven by fossil fuel powered electric power plants, so if we just “switch to renewables” this will solve the main problem and we can carry on with life more or less as we do now. Indeed, “green capitalism” enthusiasts like Thomas Friedman and the union-backed “green jobs” lobby look to renewable energy, electric cars and such as “the next great engine of industrial growth” — the perfect win-win solution. This is a not a solution. This is a delusion: greenhouse gasses are produced across the economy not just by power plants. Globally, fossil-fuel-powered electricity generation accounts for 17% of GHG emissions, heating accounts for 5%, miscellaneous “other” fuel combustion 8.6%, industry 14.7%, industrial processes another 4.3%, transportation 14.3%, agriculture 13.6%, land use changes (mainly deforestation) 12.2%. This means, for a start, that even if we immediately replaced every fossil-fuel-powered electric generating plant on the planet with 100% renewable solar, wind and water power, this would only reduce global GHG emissions by around 17%.

What this means is that, far from launching a new green-energy-powered “industrial growth” boom, barring some tech-fix miracle, the only way to impose “immediate and severe curbs” on fossil fuel production/consumption would be to impose an EMERGENCY CONTRACTION in the industrialized countries: drastically retrench and in some cases shut down industries, even entire sectors, across the economy and around the planet — not just fossil fuel producers but all the industries that consume them and produce GHG emissions — autos, trucking, aircraft, airlines, shipping and cruise lines, construction, chemicals, plastics, synthetic fabrics, cosmetics, synthetic fiber and fabrics, synthetic fertilizer and agribusiness CAFO operations.

Of course, no one wants to hear this because, given capitalism, this would unavoidably mean mass bankruptcies, global economic collapse, depression and mass unemployment around the world. That’s why in April 2013, in laying the political groundwork for his approval of the XL pipeline in some form, President Obama said “the politics of this are tough.” The earth’s temperature probably isn’t the “number one concern” for workers who haven’t seen a raise in a decade; have an underwater mortgage; are spending $40 to fill their gas tank, can’t afford a hybrid car; and face other challenges.” Obama wants to save the planet but given capitalism his “number one concern” has to be growing the economy, growing jobs. Given capitalism — today, tomorrow, next year and every year — economic growth will always be the overriding priority … till we barrel right off the cliff to collapse.

The necessity of denial and delusion

There’s no technical solution to this problem and no market solution either. In a very few cases — electricity generation is the main one — a broad shift to renewables could indeed sharply reduce fossil fuel emissions in that sector. But if we just use “clean” “green” energy to power more growth, consume ever more natural resources, then we solve nothing and would still be headed to collapse. Producing millions of electric cars instead of millions of gasoline-powered cars, as I explained elsewhere, would be just as ecologically destructive and polluting, if in somewhat different ways, even if they were all run on solar power.

Substituting biofuels for fossil fuels in transportation just creates different but no less environmentally-destructive problems: converting farm land to raise biofuel feedstock pits food production against fuels. Converting rainforests, peatlands, savannas or grasslands to produce biofuels releases more CO2 into the atmosphere than the fossil fuels they replace and accelerates species extinction. More industrial farming means more demand for water, synthetic fertilizers and pesticides. And so on. Cap and trade schemes can’t cut fossil fuel emissions because business understands, even if some environmentalists do not, that “dematerialization” is a fantasy, that there’s no win-win tech solution, that capping emissions means cutting growth. Since cutting growth is unacceptable to business, labor and governments, cap and trade has been abandoned everywhere.

Carbon taxes can’t stop global warming either because they do not cap emissions. That’s why fossil fuel execs like Rex Tillerson, CEO of ExxonMobil (the largest private oil company in the world) and Paul Anderson, CEO of Duke Energy (the largest electric utility in the U.S.) support carbon taxes. They understand that carbon taxes would add something to the cost of doing business, like other taxes, but they pose no limit, no “cap” on growth. ExxonMobil predicts that, carbon tax or no carbon tax, by 2040 global demand for energy is going to grow by 35%, 65% in the developing world and nearly all of this is going to be supplied by fossil fuels. ExxonMobil is not looking to “leave the oil in the soil” as a favor to Bill McKibben and the humans. ExxonMobil is looking to pump it and burn it all as fast as possible to enrich its shareholders.

Hansen, McKibben, Obama — and most of us really — don’t want to face up to the economic implications of the need to put the brakes on growth and fossil fuel-based overconsumption. We all “need” to live in denial, and believe in delusions that carbon taxes or some tech fix will save us because we all know that capitalism has to grow or we’ll all be out of work. And the thought of replacing capitalism seems so impossible, especially given the powers arrayed against change. But what’s the alternative? In the not-so-distant future, this is all going to come to a screeching halt one way or another — either we seize hold of this out-of-control locomotive, or we ride this train right off the cliff to collapse.

Emergency Contraction or Global Ecological Collapse?

If there’s no market mechanism to stop plundering the planet then, again, what alternative is there but to impose an emergency contraction on resource consumption?

This doesn’t mean we would have to de-industrialize and go back to riding horses and living in log cabins. But it does mean that we would have to abandon the “consumer economy” — shut down all kinds of unnecessary, wasteful and polluting industries from junkfood to cruise ships, disposable Pampers to disposable H&M clothes, disposable IKEA furniture, endless new model cars, phones, electronic games, the lot. Plus all the banking, advertising, junk mail, most retail, etc. We would have completely redesign production to replace “fast junk food” with healthy, nutritious, fresh “slow food,” replace “fast fashion” with “slow fashion,” bring back mending, alterations and local tailors and shoe repairmen. We would have to completely redesign production of appliances, electronics, housewares, furniture and so on to be as durable and long-lived as possible. Bring back appliance repairmen and such. We would have to abolish the throwaway disposables industries, the packaging and plastic bag industrial complex, bring back refillable bottles and the like. We would have to design and build housing to last for centuries, to be as energy efficient as possible, to be reconfigurable, and shareable. We would have to vastly expand public transportation to curb vehicle use but also build those we do need to last and be shareable like Zipcar or Paris’ municipally-owned “Autolib” shared electric cars.

These are the sorts of things we would have to do if we really want to stop overconsumption and save the world. All these changes are simple, self-evident, no great technical challenge. They just require a completely different kind of economy, an economy geared to producing what we need while conserving resources for future generations of humans and for other species with which we share this planet.

The spectre of eco-democratic revolution

Economic systems come and go. Capitalism has had a 300 year run. The question is: will humanity stand by and let the world be destroyed to save the profit system?

That outcome depends to a great extent on whether we on the left can answer that question “what’s your alternative?” with a compelling and plausible vision of an eco-socialist civilization. We have our work cut out for us. But what gives the growing global eco-socialist movement an edge in this ideological struggle is that capitalism has no solution to the ecological crisis, no way to put the brakes on collapse, because its only answer to every problem is more of the same growth that’s killing us.

“History” was supposed to have “ended” with the fall of communism and the triumph of capitalism two decades ago. Yet today, history is very much alive and it is, ironically, capitalism itself which is being challenged more broadly than ever and found wanting for solutions.

Today, we are very much living in one of those pivotal world-changing moments in history. Indeed, it is no exaggeration to say that this is the most critical moment in human history.

We may be fast approaching the precipice of ecological collapse, but the means to derail this train wreck are in the making as, around the world, struggles against the destruction of nature, against dams, against pollution, against overdevelopment, against the siting of chemical plants and power plants, against predatory resource extraction, against the imposition of GMOs, against privatization of remaining common lands, water and public services, against capitalist unemployment and precarité are growing and building momentum.

Today we are riding a swelling wave of near simultaneous global mass democratic “awakening,” an almost global mass uprising. This global insurrection is still in its infancy, still unsure of its future, but its radical democratic instincts are, I believe, humanity’s last best hope.

Let’s make history!

This article is an excerpt from Smith’s essay, “Capitalism and the destruction of life on Earth,” published in the Real-World Economics Review.