02-Apr-2004
The Coming Oil Shortage
Oil expert Matt Savinar writes: Civilization as we know it is
coming to an end soon. This is not the wacky conclusion of
a religious cult, but rather the result of diligent analysis
sourced by hard data and the scientists who study
global ?Peak Oil? and related geo-political events.
So who are these nay-sayers who claim the sky is falling?
Conspiracy fanatics? Apocalypse Bible prophesy readers? To
the contrary, they are some of the most respected, highest
paid geologists and experts in the world. And this is what's so
scary.
The situation is so dire that even George W. Bush's Energy
Adviser, Matthew Simmons, has acknowledged that "The
situation is desperate. This is the world's biggest serious
question."
According to Secretary of Energy Spencer Abraham, "America
faces a major energy supply crisis over the next two
decades. The failure to meet this challenge will threaten our
nation's economic prosperity, compromise our national
security, and literally alter the way we lead our lives."
If you are like 99% of the people reading this letter, you have
never heard of the term "Peak Oil". I had not heard the term
until a few months ago. Since learning about Peak Oil, I
have had my world view, and basic assumptions about my
own individual future turned completely upside down.
A little about myself: A few months ago, I was a 25 year old
law school graduate who found out he had just passed the
California Bar Exam. I was excited about a potentially long
and prosperous career in the legal profession, getting married,
having kids, contributing to my community, and living
the "American Dream."
Peak Oil has caused me to seriously question how realistic
this vision of my life is.
Whether you're 25 or 75, an attorney or an auto mechanic,
what you are about to read will shake the foundations of your
life.
Below you find a brief explanation of Peak Oil, the
ramifications, and what we can do about it. For the sake of
simplicity, I have designed the following explanation for
somebody unfamiliar with Peak Oil. If you would like more in
depth explanations with graphs, charts, and the like, please
consult the extensive interviews, articles and sites I have
linked to throughout this site.
What is "Peak Oil"?
All oil production follows a bell curve, whether in an individual
field or on the planet as a whole. On the upslope of the curve
production costs are significantly lower than on the
downslope when extra effort (expense) is required to extract
oil from reservoirs that are emptying out.
Put simply: oil is abundant and cheap on the upslope, scarce
and expensive on the downslope.
For the past 150 years, we have been moving up the upslope
of the global oil production curve. "Peak Oil" is the industry
term for the top of the curve. It's often referred to
as "Hubbert's Peak" a reference to King Hubbert, the geologist
who discovered that oil production follows a bell curve.
Once we pass the peak, we will go down the very steep
downslope. The further we go down the slope, the more it
costs to produce oil, and its cousin, natural gas.
In practical terms, this means that if 2000 was the year of
Peak Oil, worldwide oil production in the year 2020 will be the
same as it was in 1980. However, the world's population in
2020 will be both much larger (by approximately 200%) and
much more industrialized than it was in 1980. Consequently,
worldwide demand for oil will outpace the worldwide
production of oil by a significant margin.
The more demand for oil exceeds production of oil, the higher
the price goes.
Ultimately, the question is not "When will we run out of oil?"
but rather, "When will we run out of cheap oil?"
When will Peak Oil occur?
The most wildly optimistic estimates indicate 2020 will be the
year in which worldwide oil production peaks. Generally,
these estimates come from the government.
A more realistic estimate is between the year 2004-2010.
Unfortunately, we won't know that we hit the peak until 3-4
years after we actually hit it. Even on the upslope of the
curve, oil production varies a bit from year to year. It is
possible that the year 2000 was the year of peak oil
production, as production has dipped every year since.
The energy industry has quietly acknowledged the
seriousness of the situation. For instance, the president of
Exxon Mobil Exploration Company, Jon Thompson, recently
stated, "By 2015, we will need to find, develop and produce a
volume of new oil and gas that is equal to eight out of every
10 barrels being produced today." In 1999, Mike Bowlin, the
Chairman and CEO of ARCO stated, "We've embarked on the
beginning of the last days of the age of oil."
Even the Saudis are aware of the situation. They have a
saying that goes, "My father rode a camel. I drive a car. My
son flies a jet airplane. His son will ride a camel."
That sounds pretty bad, but if gas prices get too high, I'll
just carpool or take public transportation more. What's the
big deal?
Almost every current human endeavor from transportation, to
manufacturing, to electricity to plastics, and especially food
production is inextricably intertwined with oil and natural gas
supplies.
Commercial food production is oil powered. Most pesticides
are petroleum (oil) based, and all commercial fertilizers are
ammonia based. Ammonia is produced from natural gas.
Oil based agriculture is primarily responsible for the world's
population exploding from 1 billion at the middle of the 19th
century to 6.3 billion at the turn of the 21st.
Oil allowed for farming implements such as tractors, food
storage systems such as refrigerators, and food transport
systems such as trucks.
As oil production went up, so did food production. As food
production went up, so did the population. As the population
went up, the demand for food went up, which increased the
demand for oil.
Oil is also largely responsible for the advances in medicine
that have been made in the last 150 years. Oil allowed for
the mass production of pharmaceutical drugs, and the
development of health care infrastructure such as hospitals,
ambulances, roads, etc . . .
We are now at a point where the demand for food/oil
continues to rise, while our ability to produce it in an
affordable fashion is about to drop.
Within a few years of Peak Oil occurring, the price of food will
skyrocket because of the cost of fertilizer will soar. The cost
of storing (electricity) and transporting (gasoline) the food
that is produced will also soar.
Oil is required for a lot more than just food, medicine, and
transportation. It is also required for nearly every consumer
item, water supply pumping, sewage disposal, garbage
disposal, street/park maintenance, hospitals & health
systems, police, fire services, and national defense.
Additionally, as you are probably already aware, wars are
often fought over oil.
Thus, the aftermath of Peak Oil will extend far beyond how
much you will pay for gas. Simply stated, you can expect:
war, starvation, economic collapse, possibly even the
extinction of Homo sapiens.
This is known as the post-oil "die-off". The term "die-off"
captures perfectly the nightmare that is at our doorstep
What do you mean by "die-off"?
Exactly what it sounds like. It is estimated that the world's
population will contract to 500 million during the Oil Crash.
(current world population: 6 billion)
5.5 billion deaths? That is ridiculous. I could see that things
might get pretty bad, but the idea that 90% of the world's
population could die is ludicrous! Did you just pull that
number out of your ass?
Far from it. That estimate comes from biologists who have
studied what happens to every species when it exceeds the
carrying capacity of its environment in one life giving aspect
or another.
For instance, bacteria in a petri dish will grow exponentially
until they run out of resources, at which point their
population will crash. Only one generation prior to the crash,
the bacteria will have used up half the resources available to
them. To the bacteria, there will be no hint of a problem until
they starve to death.
While comparing humans to bacteria in a petri dish is a bit
uncomfortable, the similarities are numerous:
The first commercial oil well was drilled in 1859. At that time,
the world's population was about 1 billion. Less than 150
years later, our population has exploded to 6.3 billion. In that
time, we have used up half the world's recoverable oil. Of
the half that's left, most will be very expensive to extract .
If the experts are correct, we are less than one generation
away from a crash. Yet to most of us, there appears to be
no hint of a problem.
We need not look solely to the petri dish to predict what will
happen to the planet. We can look to our own history.
Take the case of the famous Irish potato famine. For well
over a century, year after steady year, the British
encouraged and the Irish developed a near-total dependency
upon a single dietary mainstay, the potato, and the
population of the island grew from 2 million people to more
than 8 million.
Then suddenly in 1845, a parasitic fungus turned the
potatoes into sticky, inedible, mucous globs. Within a
generation the country was devastated, more than half the
population died or emigrated, and those who remained were
reduced to a poverty that diminished only a century later.
In some ways, our situation is more like that of the bacteria
than that of the Irish. The severity of the potato famine
was offset by the fact that many of the Irish could emigrate
to the land of plenty: America. This allowed those who
remained to make the most of what little resources were left.
Like the bacteria in the petri dish, we have nowhere else to
go.
But we do have WMD to toss at each other.
After we hit the peak, how are things likely to progress?
According to Professor Richard Heinberg:
1. Rising petrol prices.
2. Increase in cost of living.
3. Increase in death due to starvation (most likely to be seen
in the 3rd world first).
4. War (pre-emptive) for resource rich areas.
5. Economic collapse and further chaos (mass scale
starvation affecting the globe, increasing war, and potentially
cannibalism due to food shortages and all that fresh meat
laying around).
6. Restablization resulting from reduced numbers of humans
and conservation of remaining resources (enough to
potentially last another 100 years).
How will this compare to past events like the Great
Depression?
If you'd like to use history as a guide, I feel the following
timeline is a reasonable approximation of what to expect in
developed nations such as the United States:
1-5 years post-peak: Major recession comparable to those
experienced during the artificially created oil shortages of the
1970's.
5-15 years post-peak: Recession worsens into a second
Great Depression.
15-25 years post-peak: Society begins to collapse.
Conditions in the United States begin to resemble those in
the modern day former U.S.S.R.
25-50 years post-peak: Societal collapse worsens.
Conditions in the United States begin to resemble those in
modern day Iraq: electrical grid collapse, clean water
shortages, super high unemployment, military police state.
50-100 years post-peak: Society begins to stabilize, albeit in
a form drastically different than anything most of us have
imagined.
Is it possible that we have already hit Peak Oil and are now in
the first stages of the Oil Crash?
Yes. As stated above, we won't know we have hit the Peak
until a few years after we hit it. Global oil production has
dipped every year since 2000, so it is quite possible we've hit
the peak.
Ample evidence exists that we are in the first stages of the
Oil Crash. In the last year (2003), the cost of food has risen
16%-25%. Health care costs have risen 15%. Education
costs have risen 20%. These are often excluded from
measures of inflation because they are considered "volatile".
As of 12/03 the "adjusted" unemployment, which has been
squeezed out of as much meaning as conceivably possible,
still hovers in the 6% range. However, if you factor in the
quality of employment, then the real numbers are closer to
12%-15%.
The rolling blackouts experienced in California during Fall
2000, the massive East Coast blackout of August, 2003 and
the various other massive blackouts that occurred throughout
the world during late summer of 2003, while not directly
related to Peak Oil, are simply a sign of things to come.
At the Paris Peak Oil Conference in May, 2003, Princeton
Professor Kenneth Deffeyes, author of Hubbert's Peak: The
Impending World Oil Shortage, explained that Peak Oil actually
arrived in 2000 by noting that production has actually been
declining since that time.
As further evidence of the production peak, Deffeyes noted
that since 2000, there has been a 30% drop in stock values,
interest rate cuts have not helped, 2.5 million have become
unemployed and the employed have been unable to retire,
budget surpluses have vanished, the middle class has
vanished, and the World Trade Center has vanished.
What about alternatives like solar, wind, hydrogen etc?
Unfortunately, the ability of these alternatives to replace
fossil fuels is based more in myth than reality.
Fossil fuels account for 65% of our current global energy
supply. None of the traditional alternatives can supply
anywhere near this much energy, let alone the amount we
will need in the future as our population continues to grow
and industrialize.
Let's briefly examine the commonly proposed oil alternatives:
(The following data has been extensively researched by
Bruce Thompson, moderator of the Yahoo Group, Running on
Empty)
Natural Gas: Natural Gas currently supplies 20% of global
energy supply. Gas itself will start running out from 2020 on.
Demand for natural gas in North America is already
outstripping supply, especially as power utilities take the
remaining gas to generate electricity. Gas is not suited for
existing jet aircraft, ships, vehicles, and equipment for
agriculture and other products. Conversion consumes large
amounts of energy as well as money. Natural gas also does
not provide the huge array of chemical by-products that we
depend on oil for.
Hydro-Electric: Hydro-Electric power currently accounts for
2.3% of global energy supply, compared with the 40%
provided by oil. It is unsuitable for aircrafts and the present
800 million existing vehicles.
Solar: Solar power accounts for .006% of global energy
supply. Energy varies constantly with weather or day/night.
Not storable or portable energy like oil or natural gas so
unsuited for present vehicles and industry. Batteries bulky,
expensive, wear out in 5-10 years.
A typical solar water panel array can deliver 50% to 85% of a
home?s hot water though. Using some of our precious
remaining crude oil as fuel for manufacturing solar equipment
may be wise.
Wind: Wind power accounts for .07% of global energy supply.
As with solar, energy varies greatly with weather, and is not
portable or storable like oil and gas. Wind can not supply oil
derivatives such as fertilizer or plastics.
Hydrogen: Hydrogen accounts for 0.01% of global energy.
Hydrogen is currently manufactured from methane gas. It
takes more energy to create it than the hydrogen actually
provides. It is therefore an energy ?carrier? not a source.
Liquid hydrogen occupies four to eleven times the bulk of
equivalent gasoline or diesel. Existing vehicles and aircraft
and existing distribution systems are not suited to it. Solar
hydrogen might be an option in some of the hot countries.
Nuclear: Nuclear is currently being abandoned globally. Its
ability to soften the oil crash is very problematic due to
several factors:
1. Possibility of accidents and terrorism.
2. Cost: one reactor costs about 13 billion dollars.
3. Number of reactors needed: 1,000's
4. Not directly suited for transportation or agriculture.
5. Uranium requires energy from oil from in order to be
mined.
6. All abandoned reactors are radioactive for decades or
millennia.
7. Even if we were to overlook these problems, nuclear power
is only a short-term solution. Uranium, too, has a Hubbert's
peak, and the current known reserves can supply the earth's
energy needs for only 25 years at best.
Coal: Coal accounts for 24% of current global energy supply.
As a replacement for oil, it is unsuitable due to the fact that
it is 50% to 200% heavier than oil per energy unit.
Substituting coal for oil would require expansion of coal
mining, leading to land ruin and increase in greenhouse gas
emissions. In contrast to oil and gas fuels, fine-tuning the
rate at which coal burns is difficult. It is therefore used in
power stations to make electricity, wasting half of its energy
content.
Coal mining operations run on oil fuels as do coal-mining
machinery and transportation. Pollution is also a major
problem. A single coal-fired station can produce a million tons
of solid waste each year. Burning coal in homes pollutes air
with acrid smog containing acid gases and particles. Large
pollution & environmental problems: (Smog, greenhouse
gases, and acid rain). Finally, liquid fuels from coal are very
inefficient, and huge amounts of water required.
Non-Conventional Sources Such as Shale, Tar Sand, &
Coalbed Methane:
These non-conventional sources currently account for 6% of
US gas supply. Each of these alternatives would require a
huge investment in research and infrastructure to exploit
them, plus large amounts of now-expiring oil, before they
could be brought online.
For example, in Canada about 200 thousand barrels a day
are being produced in Alberta of non-conventional oil, but it
takes about 2 barrels of oil in energy investment to produce 3
barrels of oil equivalent from those resources. Additionally,
the environmental costs are horrendous and the process uses
a tremendous amount of fresh water and also natural gas,
both of which are in limited supply.
The major problem with non-conventional oil is that they
cannot be exploited before the oil shocks cripple attempts to
bring them on line, and the rate of extraction is far too slow
to meet the huge global energy demand.
You're forgetting about biomass and ethanol. We can just
grow our fuel:
In an article entitled The Post Petroleum Paradigm, retired
Professor of Geology at the University of Oregon, Dr. Walter
Youngquist addresses the severe limitations of biomass and
ethanol. The following is an excerpt from that article:
Oil derived from plants is sometimes promoted as a fuel
source to replace petroleum.
The facts and experience with ethanol are an example.
Ethanol is a plant-derived alcohol (usually from corn) which is
used today, chiefly in the form of gasohol, a mixture of 10%
ethanol and 90% gasoline. Because it is used to some
extent,it is commonly thought that ethanol is a partially
acceptable solution to the fuel problem for machines.
However, ethanol is an energy negative ? it takes more
energy to produce it than is obtained from ethanol. Ethanol
production is wasteful of fossil energy resources. About 71%
more energy is used to produce a gallon of ethanol than the
energy contained in a gallon of ethanol.
Ethanol production survives by the grace of a subsidy by the
U.S. government from taxpayer dollars. Continuing the
production of ethanol is purely a device for buying the
Midwest U.S. farm vote, and may also be related to the fact
that the company which makes 60% of U.S. ethanol is also
one of the largest contributors of campaign money to the
Congress ? a distressing example of politics overriding logic.
What about that new technology that can turn anything into
oil?
"Thermal depolymerization" which can transform many kinds of
waste into oil, could help us raise our energy efficiency as we
lose power due to oil depletion. While it could help us
ameliorate the crash, it is not a true solution.
Like all other forms of alternative energy, we have run out of
time to implement it before the crash. Currently, only one
thermal depolymerization plant is operational. Thousands of
such plants would need to come online before this technology
would make even a small difference in our situation.
Furthermore, whatever comes out of the process must carry
less useful energy than what went into the process, as
required by the laws of thermodynamics. Finally, most of the
waste input (such as plastics and tires) requires high grade
oil to make in the first place.
The biggest problem with thermal depolymerization is that it is
being advertised as a means to maintain business as usual.
Such advertising promotes further consumption, provides us
with a dangerously false sense of security, and encourages
us to continue thinking that we don't need to make this issue
a priority.
There is nothing to worry about. When the price of oil gets
too high, the "invisible hand" of the market and the laws of
supply and demand will force us to switch to alternative
sources of energy before things get out of hand.
If the previous three questions have not made it perfectly
clear that no alternative sources of energy currently exist
that can replace oil and gas, then perhaps this quote from
Michael Ruppert will help clarify the situation for you:
For all of the Pollyanna advocates of alternative energy who
assure us that there is nothing to worry about, I suggest
that they go and live in the northeast today and see how
warm their windmills, solar panels, biomass and hydrogen
myths keep them.
Where is the infrastructure to employ even the pitiful
solutions that solar, wind and biomass might provide?
Furthermore, market indicators will likely come too late for us
to implement whatever alternatives we have available. Once
the price of oil gets high enough that people begin to
seriously consider alternatives, those alternatives will become
too expensive to implement on a wide scale. Reason: Oil is
required to develop, manufacture, transport and implement oil
alternatives such as solar panels, biomass and windmills.
There are many examples in history where a resource
shortage spurned the development of alternative resources.
Oil, however, is not just any resource. In our current world,
it is the precondition for all other resources, including
alternative ones.
In pragmatic terms, this means that if you want your home
powered by solar panels or windmills, you had better do it
soon. If you don't have these alternatives in place when the
lights go out, they're going to stay out.
So are these alternatives useless? No, not at all. Whatever
civilization emerges after the crash will likely derive a good
deal of their energy from these technologies.
While traditional alternatives such as solar and wind are
certainly worth investing in they are in no way the magic
bullets they are so often advertised as.
The following is an excerpt from Professor Richard Heinberg's
book, The Party's Over: Oil, War, and the Fate of Industrial
Civilizations., in which he explains why the notion that "All we
have to do is switch to solar, wind., etc . . ." is delusional in
its' simplicity:
Clearly, we will need to find substitutes for oil. But an
analysis of the current energy alternatives is not reassuring.
The hard math of energy resource analysis yields an
uncomfortable but unavoidable prospect: even if efforts are
intensified now to switch to alternative energy sources, after
the oil peak industrial nations will have less energy available
to do useful work - including the manufacturing and
transporting of goods, the growing of food, and the heating
of homes.
To be sure, we should be investing in alternatives and
converting our industrial infrastructure to use them. If there
is any solution to industrial societies' approaching energy
crises, renewables plus conservation will provide it. Yet in
order to achieve a smooth transition from non-renewables to
renewables, decades will be needed - and we do not have
decades before the peaks in the extraction rates of oil and
natural gas occur.
Moreover, even in the best case, the transition will require
the massive shifting of investment from other sectors of the
economy (such as the military) toward energy research and
conservation. And the available alternatives will likely be
unable to support the kinds of transportation, food, and
dwelling infrastructure we now have; thus the transition will
entail an almost complete redesign of industrial societies.
What about "new" energy. Didn't Nikola Tesla invent some
machine that produced lots of energy?
There are some very promising technologies currently under
development, commonly referred to as "New Energy."
The potential of New Energy is enormous. The political,
academic, industrial, and enviormental activist resistance to
it is equally enormous.
If we as the public started demanding this technology, it
could go along way in solving our problems. My optimism
regarding New Energy is guarded, not because of its'
scientific limitations, but becauase I wonder if we will wake
up in time to demand, develop, and implement it.
Some of these technologies were pioneered by Nikola Tesla
and Dr. Wilhelm Reich. Guess what happened to them? Tesla
died penniless. The government burned his books. Reich was
sent to prison, where he died. The government burned his
books burned as well. In fact, he is the only person to have
his books burned by the Russian, German, and American
governments.
If you would like to know more, I highly encourage you to
look through Infinite Energy Magazine or read Dr. Eugene
Mallove's article, Universal Appeal for Support for New Energy
Science.
In case this type of thing is important to you: Dr. Mallove
has Bachelor and Masters degrees in Aeronautical and
Astronautical Engineering from MIT and a P.H.D. in
Environmental Health Sciences from Harvard University.
I just read an article that states that known oil reserves keep
growing.
That article is most likely citing the U.S. government agency
such as the United States Geological Survey or the Energy
Information Agency (EIA). While USGS and EIA reports on
past production are largely reliable, their predictions for the
future are largely propaganda.
They admit this themselves. For instance, after recently
revising oil supply projections upward, the EIA stated:
These adjustments to the estimates are based on non-
technical considerations that support domestic supply growth
to the levels necessary to meet projected demand levels.
In other words, they predict how much they think we're going
to use, and then tell us, "Guess what, nothing to worry
about - that is how much we've got!"
What is the government doing to solve this problem?
It may come as no surprise to you that our leaders are doing
more to exacerbate the problem then they are to solve it.
Rather then developing a reasonable plan for handling the
coming Oil Crash, our leaders have decided to make a last
ditch grab for what little cheap oil is available by stealing it
from the nations that have it. With control over the world's
dwindling supplies of cheap oil, they will have the ability to
choose who lives and who dies. This includes deciding which
Americans will live or die.
Some of you reading this might be saying to yourself, "Gosh,
that sounds like a bunch of left-wing conspiracy b.s. I'm so
tired of malcontents like this guy going on and on about how
evil the U.S. government is."
If so, consider the following (less conspiratorial) outlook: the
structure of the U.S. government largely mirrors the structure
of a publicly traded corporation. In place of a CEO, we have
the president. In place of a board of directors, we have
Congress. In place of an oversight committee, we have the
Supreme Court. Wealthy interests such as the defense,
energy, transportation, and agriculture industries are the
shareholders. Average Americans are the employees.
Like every analogy, the analogy of the government as a
corporation is not a perfect one. Nonetheless, the similarities
are uncanny. This should come as no surprise. As President
Woodrow Wilson claimed, "The business of America is
business."
In the corporate world, corporate officers are legally bound to
make decisions that are in the best interests of the owners of
the company: the shareholders. For instance, if a CEO
deems it necessary to sacrifice half of his employees for the
good of the company, he is legally obligated to do so.
In this regard, if the president deems it necessary to sacrifice
large numbers of American (or foreign) lives for the good of
the nation, he cannot hesitate to do so.
American veterans know this all too well. According to the
Veterans Administration, 29% of our troops from the first Gulf
War are now disabled with Gulf War Syndrome. That is the
highest casualty rate of any war we have ever fought. Since
the V.A.'s definition of "disabled" is a high one, the true
percentage is more likely in the 35%-70% range.
The Reserve and National Guard troops that are now in Iraq
have not been issued bullet proof vests.
If our leaders are so willing to sacrifice our troops, how willing
do you think they are to sacrifice you?
When our leaders decide to sacrifice your life or well being for
the good of the nation, it's not that they have evil intentions
per se. In their own way, they think they are doing what is
best. Obviously, many of us may not agree with their
reasoning.
Finally, keep in mind that these are the same people who give
us a color coded chart, a roll of duct tape, and a video of a
bearded, homeless guy getting a free dental exam as
solutions to terrorism.
Folks, we're on our own.
Is it possible that the government is actually trying to speed
up the collapse?
Yes, but not necessarily for "evil" reasons.
From the government's perspective, a fast collapse may be
better than a slow one. Why? A slow crash may simply
exacerbate the problems, because the population at the
turning point of oil production will be even larger than it would
be at an earlier date. The higher the population the higher
the number of deaths that will result when the cheap oil runs
out.
In the eyes of our government, a fast crash may be
the "kinder, gentler" alternative.
This would certainly explain why the government gives tax
breaks to S.U.V. owners at a time when they should be
encouraging conservation.
Damn those S.U.V. drivers! This is all their fault. I'm so
angry I could set fire to a Hummer dealership!
Not so fast Mr. Self Righteous. You think you're off the hook
because you ride a bicycle instead of drive an S.U.V.?
Guess what? It took oil to manufacture and transport that
bicycle. The plastic that your veggie sandwich is wrapped in
also came from oil. You're simply (considerably) less guilty
than the S.U.V. driver.
As far as setting fire to a Hummer dealership, that's going to
require oil (gasoline) to start the fire. The firefighters who
come to put it out will get there in a truck powered by oil.
You will end up in a prison that was built by machines that
were powered by using oil. You will be taken there in a bus
powered by oil.
We've all contributed to the problem. At this point, finger
pointing will do us about as much good as a circular firing
squad.
Well if I can't blame the S.U.V. drivers, who should I blame?
Arab terrorists? Jewish bankers? Fascist corporate
warmongers? Leftist environmental wackos? Bush? Clinton?
Come on, I need a scapegoat!
If you're looking for a scapegoat, I don't think you will find it
by looking to the usual suspects.
If you think the political left is at fault, and favor a more
conservative solution, the result will be an exacerbation of
what we've seen the past few years: more war, and less
rights.
If you think the political right is at fault, and favor a
more "leftist" solution, the result will likely be the similar to
that seen during the Russian and Cuban revolutions: more
war, and less rights.
Many of George W. Bush's energy policies are likely making
the situation worse. At the same time, his administration has
invested far more money into the development of renewable
energy than Clinton ever did.
Given the circumstances, do you think Bush could be
convinced to support energy conservation measures?
In 2001, President Bush stated, "We can't conserve our way
to energy independence, nor can we can conserve our way
to having enough energy available. So we've got to do both"
The oil companies are so greedy that they will come up with
an alternative to keep making money, right?
Expecting the oil companies to save you from the oil crash is
about as wise as expecting the tobacco companies to save
you from lung cancer.
As explained above, corporate officers are bound by law to
do what is in the best interests of the corporation, so long as
their actions are legal. Their legal obligation is to make
money for the company, not to save the world.
None of the currently available alternatives have anywhere
near the profit margin that oil does. Even if an oil executive
wanted to "do the right thing" and pursue oil alternatives, it is
illegal for her to do so if it is not in the best interests of the
company.
At the Paris Peak Oil Conference, Dutch economist Maarten
Van Mourik of the Netherlands Economic Institute explained
that because of the financial shortcomings of all currently
available forms of alternative energy, a sudden crash is the
profitable solution for the oil companies.
Furthermore, according to Dr. Colin Campbell: "The major oil
companies are merging and downsizing and outsourcing and
not investing in new refineries because they know full well
that production is set to decline and that the exploration
opportunities are getting less and less.
The companies have to sing to the stock market, and merger
hides the collapse of the weaker brethren. The staff is purged
on merger and the combined budget ends up much less than
the sum of the previous components. Besides, a lot of the
executives and bankers make a lot of money from the merger."
Expecting the oil companies, the government, or anybody
else to solve this problem for us is simply suicidal. You, me,
and every other "regular person" needs to be actively
engaged in addressing this issue if there is to be any hope for
humanity.
I think you are underestimating the human spirit. Humanity
always adapts to challenges. We will just adapt to this too.
Absolutely, we will adapt. Part of that adaptation process
will include most of us dying if we don't take massive action
right now.
The human spirit is capable of some miraculous things. We
need a miracle right now, so the human spirit had better get
its' ass in gear, pronto.
Unfortunately, there is no law that says when humanity
adapts to a resource shortage, everybody gets to survive.
Think of any mass tragedy connected to resources such as
oil, land, food, labor (slaves) buffalo, etc. . The societies
affected usually survive, but in a drastically different and
often unrecognizable form.
The "end of the world" is here, once again. So what's new?
Y2K was supposed to be the end of the world, and it turned
out to be much ado about nothing.
What's new is that this is the real thing. It isn't a fire drill. It
isn't paranoid hysteria. It is the real deal.
George W. Bush's Energy Advisor, Matthew Simmons,
addressed this issue at the Paris Peak Oil Conference, stating:
"I think it is human nature, basically, to say that we really like
to have pleasant thoughts. The one crying wolf is abandoned
unless the wolf turns out to be already at the front door, and
by then, the cry is generally too late. And crises are
basically problems, by definition, that have gone ignored.
And all great crises were ignored until it became too late to
do anything about it..."
Peak Oil isn't "Y2K Reloaded." In contrast to Peak Oil, Y2K
was an "if", not a "when". We know that Peak Oil is going to
happen. The only question is at what point between 2004-
2010 it will occur, if it hasn't occurred already.
Y2K was "announced" in the early to mid 1990's, a full 5 - 10
years before the problem was to occur. Peak Oil will occur
within 1 - 5 years, and we have made no preparations to deal
with it. The preparations necessary to deal with the Oil
Crash will require a complete overhaul of every aspect of our
civilization. This is much more complex than fixing a
computer bug.
Furthermore, oil is more fundamental to our existence than
anything else, even computers. Had the Y2K predictions
come true, our civilization would have been knocked back to
1965. With time, we would have recovered.
When the Oil Crash comes, our civilization is going to get
knocked back to 1765. We will not recover, as there is no
economically available oil left to discover that would help us
recover.
We had oil problems back in the 1970's. We got through
those just fine. How is this any different?
In 1973, OPEC stopped selling oil to the United States in
protest of American support of Israel in the Yom Kippur or
Ramadan War. This coincided with the peaking of U.S.
domestic oil production. Without a supply of cheap energy,
the US economy went into deep recession.
In the 70's there were other 'swing' oil producers like
Venezuela who could step in to fill the supply gap. Once
worldwide oil production peaks (if it hasn't already), there
won't be any swing producers to fill in the gap.
In the future, comparing the oil shortages of the 1970's to
the Oil Crash of 2005-2050 will be akin to comparing a fender
bender to a head-on collision.
People have been predicting that we'll run out of oil since like
1920 or something. Same old, same old. . .
Allow me to reiterate: it's not that we are going to run out of
oil per se, but rather, we are going to run out of cheap oil.
The fact that similar predictions have been made in the past
does not mean that current predictions are without merit.
Why haven't I heard about this on the nightly news?
Peak Oil has been reported in the alternative media. If you
pay close attention, Peak Oil has also been reported in the
mainstream media. However, it is usually confined to the
back page of a newspaper or an obscure part of a news
agency's website. For instance, cnn.com recently ran an
article on Peak Oil confirming that worldwide oil reserves are
80% less than previously thought, that worldwide oil
production will peak within the next 5 years, and that once
production peaks, gas prices will reach "disastrous levels."
There are a couple of reasons why you haven't heard more:
1. 75% of the media (all newspapers, television and radio
stations) are owned by 5 companies. Each of these
companies is heavily invested in the energy industry. If they
were to publicly announce the truth about Peak Oil,
investment in the stock market would dry up, the economy
would plunge, chaos would ensue, and the whole deck of
cards would come crashing down before our leaders and
corporate elite have a chance to secure their own well-being.
2. The ramifications of Peak Oil are so serious that it is hard
for anybody, including journalists and politicians, to accept
it. Nobody wants to be called a "doomsayer." As Jimmy
Carter found out in 1980, making the end of age of oil an
issue is political suicide.
3. The average American may not be emotionally prepared to
deal with Peak Oil. Peak Oil is a literal death sentence to
much of our population as well as a figurative death sentence
to the energy intensive American way of life. When faced
with such news, most people choose to "kill the messenger."
Do you think people will wake up in time for us to avert, or at
least soften the crash? I hope so, but I'm not betting on it.
According to author George Monbiot, "The only rational
response to both the impending end of the oil age and the
menace of global warming is to redesign our cities, our
farming and our lives. But this cannot happen without
massive political pressure, and our problem is that no one
ever rioted for austerity."
Does This Have Anything To Do With the Wars in Iraq and
Afghanistan? George Bush, Dick Cheney, Condi Rice and
Donald Rumsfeld are all former executives for large oil
companies. They have known about Peak Oil for decades.
In the context of Peak Oil, the wars in the Middle East are
not wars of greed. Rather, they are wars of survival.
You can expect the U.S. to invade Syria, Iran and Saudi
Arabia within the next 2-5 years. As you watch the news,
you can already notice the hints are being dropped. "Iran
has WMD" or "Syria isn't cooperating in the war on terror"
or "Saudi Arabia is funding terrorism". "The war on terror will
last for decades." The stage is being set so that the
American public will accept these future invasions.
(On a related note, If you want to learn more about the
truth regarding 9-11, check my other site
www.warisaracket.net, or Michael Ruppert's amazing
newsletter at www.fromthewilderness.com)
What's going to happen when recently industrialized China
decides it needs what little cheap oil is left as bad as the
United States does?
World War III: What about other "Westernized" countries?
Don't they need oil also? No country is safe. For instance,
several high level officials in the Bush Administration are
pushing for a plan to force nations to "choose between Paris
and Washington."
Similarly, Canada is required by NAFTA to sell 60% of its
natural gas to the U.S. When Canada begins to experience
the energy shortage, they may seek to change the terms of
that law. The U.S. is unlikely to allow them to do so.
Well at least we don't have to worry about Russia, right? In
October, President Putin called the US a "Rogue state" and
reserved the right for a unilateral, first nuclear strike against
the US. Reason: The US is not only monopolizing Russia's oil
suppliers, they are also buying Russian oil companies.
You forget about North Korea? Oh yeah, them too.
War with Iraq, Afghanistan, Iran, Syria, Saudi Arabia, China,
France Russia and Korea? Won't that require a reinstitution
of the draft?
George Bush recently approved a massive increase for the
Selective Service's 2005 budget. The Selective Service is
currently undergoing a massive overhaul and has been told it
needs to be ready to report to the president in June, 2005.
This means you can expect a reinstitution of the military
draft some time thereafter.
A process the military calls "Stop Loss", a.k.a. "Draft Creep",
has been underway for some time now.
Essentially, every young man has been earmarked as a solider
for future oil wars.
I have a son. How do I keep him from being drafted? Check
objector.org
Thank God I'm a woman. At least I don't have to worry
about being drafted.
Not so fast. If you are a female and work in the medical
field, you may be subject to the Health Care Personnel
Delivery System, better known as the medical draft.
According to Lewis Brodsky, the acting director of the
Selective Service System, "We're going to elevate that kind
of draft to be a priority."
What type of weapons are being developed for these oil wars?
In "Rebuilding America's Defenses", Deputy Secretary of
Defense Paul Wolfowitz explains that the U.S. will
develop "advanced forms of biological warfare that can target
specific genotypes." In other words, weapons that target
certain ethnic groups.
Don't feel left out if you happen to be white, North Korea is
developing an "ethnic bomb" that targets whites only. China
is developing truly horrific post-nuclear weapons
employing "molecular nano-technology."
Guess what? It gets worse. When you have some extra time
and really want to be put in a good mood, read what the U.S.
Army War College wrote in 1997 regarding the military's role in
the 21st century.
Does Peak Oil have anything to do with legislation such as
Patriot Act I, and Patriot Act II?
When the cost of food soars, the only way to control the
population will be through the institution of a fascist style
police state. The Patriot Acts and related legislation are the
foundation of that state.
In light of the energy situation we are facing, why is the Bush
administration spending money and cutting services like
there's no tomorrow? From their perspective, there is no
tomorrow.
Does Peak Oil have anything to do with Bush's plan to go to
the Moon and then onto Mars?
We're going back to the Moon and onto Mars for four reasons:
1. To Develop Advanced Oil Drilling Techniques:
According to Haliburton scientist Steve Streich: Drilling
technology for Mars research will be useful for the oil and gas
industries. The oil industry is in need of a revolutionary
drilling technique that allows quicker and more economical
access to oil reserves. A Mars mission presents an
unprecedented opportunity to develop that drilling technique
and improve our abilities to support oil and gas demands on
Earth.
2. To Develop and Deploy Space Based Weapons: According
to the Union of Concerned Scientists, the first prototype
space based weapon is scheduled to be in orbit by 2007 or
2008 - before the end of a second Bush term.
3. To Mine "Helium-3" In Hopes That It Can Be Used As Fuel:
Helium 3 is an element barely found on Earth, but found in
abundance on the moon. Researchers see it as the perfect
fuel source: extremely potent, nonpolluting, with virtually no
radioactive by-product.
Helium 3 sounds great, until you find out that a nuclear fusion
reactor is needed for it to be of any use. Even after 40
years of research and billions of dollars spent, nobody has
been able to build such a reactor.
Additionally, the economics of extracting and transporting
Helium 3 from the moon are particularly problematic. Even if
scientists solved the physics of Helium 3 fusion, "it would be
economically unfeasible . . you'd have to strip-mine large
surfaces of the moon" according to Jim Benson, chairman of
SpaceDev in Poway, California.
Furthermore, implementation of use of Helium 3 on Earth
would require many technologies yet to be created.
Foremost among them are super conducting magnets, plasma
control and diagnostics, robotically controlled mining
equipment, life support facilities, rocket launch vehicle,
telecommunications, power electronics etc.
The fact that the Bush Administration is pursuing such an
unviable source of fuel underscores how desperate the
situation is getting.
4. To send more U.S. jobs offshore.
The worst case scenario is extinction, as the wars that will
accompany the worldwide oil shortage will likely be the most
horrific and widespread that humanity has ever experienced.
If we get Bush out of office, will that solve the problem? Peak
Oil is happening with or without Bush. In fact, you may have
the Bush administration to thank for the couple extra years of
cheap oil he is robbing from the Middle East. This gives us in
the U.S. some extra time to prepare for the post-peak Oil
Crash. (Note - I in no way feel this justifies the invasion of
Iraq or Afghanistan)
The President, his administration, and most of our legislators
have been reduced to ceremonial figureheads for the energy
and defense industries. These industries control both parties.
The last president to mention Peak Oil was Jimmy Carter, who
in 1980 explained that we had a choice: voluntarily change
our oil based way of life, or have the change forced upon us
via chaos and societal disintegration. Voters preferred Ronald
Reagan's assertion that "it was morning time in America."
If you think Bush is at fault for the situation, you are missing
the point. It's our fault for not holding all of our leaders,
regardless of party affiliation, accountable for their actions.
None of the current presidential candidates except Dennis
Kucinich have publicly mentioned Peak Oil even once. The
current Democratic frontrunner, John Kerry, supports the
development of oil alternatives, but has never come close to
mentioning the true scope of the crisis. In other words,
regardless of who gets elected, we're on our own.
I heard there is a "water crisis" on the way and it's tied into
the oil crisis. Is there any truth to this? According to
Matthew Simmons, "without ?energy, we have no sustainable
water, no sustainable food, and no sustainable healthcare?"
I've got credit card or student loan debt. How will my debts
be affected by Peak Oil? When things go south, and as
nations scramble for dwindling resources, debts will get called
in to provide the one financial ingredient that can mitigate a
serious crisis: liquidity.
How will my 401K be affected by the energy crisis? Whatever
is left of the stock market in 2015 will evaporate as
the "baby-boomers" attempt to pull their money out for
retirement.
You're not even trained in science. What makes you think
you know what you are talking about? I am simply taking
what the true experts are saying and condensing it into a
bite size format. Alot of the Peak Oil websites are not what I
would call "newbie friendly." Also, many fail to connect the
dots between Peak Oil and recent world events. So I created
this one.
I bet you're some kind of raving, monomaniacal, left wing
freak. Why should I think you're any more credible than
every other crazy person with a website? If you think I'm
writing this as a result of a mental disturbance or political
agenda, then ignore everything on this page and look it up for
yourself on Google.
What about some counterarguments? What do the people
who disagree with you have to say? Well first of all, we need
to get something straight. These conclusions are not mine.
They are the conclusions of people who have a much better
understanding of petroleum science and geology than either
you or me. All that I have done is take their conclusions and
condense them into layman's terms.
I suggest you ask the following questions when reading an
article that claims there is nothing to worry about:
1. Is the author a politician or an economist? Politicians
know that mentioning the end of the oil age insures they will
not be reelected. Economists tend to assume the market will
force people to adapt before things fall apart. As explained
previously, the oil shortage may be one of the few instances
in which the market will be of little help to us.
2. Is the author touting traditional alternatives such as solar,
wind and biomass? As explained previously, these will only
help us manage the crash. And only if we begin implementing
them on a massive scale before oil prices get out of hand.
3. Is the author from a government agency such as the
United States Geological Service? Of course, this doesn't
automatically mean their opinion is biased. However, I
suggest you read their conclusions with the same skeptical
eye you would use to read an article from the I.R.S. that tells
you the tax system works just fine.
1. Was Winston Churchill being a "pessimist" in 1940 when he
told Britain, "I have nothing to offer you but blood, toil, tears,
and sweat"?
2. Was Albert Einstein being a "pessimist" in 1939 when he
told FDR that Nazi Germany was in the process of developing
an atomic bomb?
There is a difference between an "optimist" and a fool. An
optimist is somebody who looks at bleak facts and decides to
make the best of the situation that they can. A fool is
somebody who looks at bleak facts and decides to ignore
them because they are too upsetting.
This is not a case of "looking at the glass half empty." We
are looking at barrel of oil, and it while it is half full, it is far
too expensive for us to purchase.
I'm having trouble believing that a country as powerful as the
United States is on the verge of collapse. Let's look at what
has happened to the U.S. in just the last four years:
World Trade Center destroyed, budget surplus vanished,
dysfunctional health care, honest elections gone, 2.5 million
jobs lost, 433 publicly traded companies gone bankrupt, social
security close to gone, government oversight of big business
gone, weakened infrastructure, shrinking middle class,
undermined civil liberties, tainted food supply.
We won't be the first superpower to collapse. This is what
happens when any civilization overshoots its resource base.
It isn't a new thing. Over the course of history, the collapse
of civilizations has been as inevitable as death and taxes.
Any good book on the fall of the Roman Empire will gave you
case of deja vu next time you watch the evening news.
I showed this site to a friend and she said, "That's ridiculous,
there is tons of oil left! We won't run out for at least 50
years." Your friend is correct. The immediate crisis we face is
not a lack of oil, but a lack of affordable oil.
Once oil production peaks, it will begin to steadily and
permanently decline. This will force a prolonged, secular
contraction in GDP if adequate substitutes for oil cannot be
provided. As explained above, no true substitutes for oil
currently exist that can be brought online in sufficient
capacity to avert a worldwide crisis.
How can we best deal with Peak Oil as a society? Peak Oil is
going to happen. People are going to die. We cannot stop
it. But we may be able to minimize the amount of suffering
while maximizing the chances of building a successful post-oil
civilization if we immediately come together as a species and
do the following:
1. Stop all wars and other nonessential economic activity.
Dedicate all of our time and resources to developing
alternatives to fossil fuels.
2. Drastically cut our energy consumption. We could do this
in a number of ways:
A. No more kids: We cannot feed our current population.
When the Oil Crash comes, the situation will go from bad to
worse to nightmarish. More children means an increased
demand for food that we cannot produce.
B. No more pets: They require food that needs to be used to
feed people.
C. No more beef eating: Cattle raising is extremely energy
intensive.
D. No more unnecessary travel: This means eating produce
that is grown locally, substituting bicycles for cars, limiting
our purchase of consumer goods to those that are absolutely
necessary, and no air travel unless absolutely necessary.
I'm the first to admit that these solutions seem implausible.
Hence, my usually unbridled optimism is saddled with a good
dose of caution.
What should I do to prepare as an individual? Well first of all,
it is absolutely imperative that you do not allow yourself to
succumb to a fear based consciousness. This may be
difficult as Peak Oil is going to necessitate absolutely massive
changes in our way of life. However, if we allow ourselves
to be overtaken by fear, we will only exacerbate the problem
and duplicate the system that has brought us into this
situation.
Personally, I recommend the first step to be educating
yourself about Peak Oil and its ramifications. Then notify as
many of your friends and family as possible. Seek out like
minded people and come up with some type of a plan.
Unfortunately, I know very little at this point regarding how
to survive without the amenities of modern civilization. As I
learn more, I will post what I learn on this website under
Prepare.
Should I be getting a gun and hiding in the woods. If a "hole-
up-in-the-woods-with-guns" model of preparation appeals to
you, I encourage you read as much as possible about other
civilizations that have crashed and burned. While the
survivalist model works in Hollywood, it often fails in reality.
When our society collapses, the rural areas may well go first.
In that case, little enclaves of survivalists sitting on
stockpiles of food, weapons, and gold will be too tempting a
target for the bandit cultures that evolve in post collapse
rural areas.
Speaking of bandit cultures, you can be assured that your in-
laws will come looking for food and supplies if you have them
stockpiled.
As stated previously, the end of the oil age is a life and death
game. I think it unwise to base your life plan on a macho
Hollywood fantasy.
On a personal note, I won't be getting a gun. My philosophy
is why bother extending my stay in hotel earth for a bit
longer if I have to contribute more violence to an already
violent place?
History, not Hollywood, is likely the best guide for what we
should expect. Again, any good book on the fall of the
Roman Empire should provide you with a reasonable
approximation of what the next 5-50 years will be like.
Factor in modern day weaponry, and you can see that we
have a real mess on our hands.
Is there anything positive about Peak Oil? Most of us in
consumer based countries like the U.S. are actually very nice
people. In our hearts, we really do believe in ideals such as
equality, brotherhood, and justice. We would never abuse,
mistreat, or kill somebody just to get something of theirs.
However, to support our oil based lifestyle, our government
goes out and does these things for us.
If the average American knew the amount of suffering that
went into producing every piece of plastic in their home,
every gallon of oil in their gas tank, and every piece of food
on their dinner table, they would likely be sick to their
stomach and would be willing to do whatever it takes to
change things.
Peak Oil will force us to change things. Peak Oil does mean
that the end of the world as we know it is at our doorstep. It
also means that we have a chance to create a new world in
which humanity lives in harmony with itself and the earth.
Such a lifestyle is no longer simply "the right thing to do." It
is now a necessity if we wish to survive as a species.
In this regard, a 1968 quote from Robert Kennedy is
instructive. Do you think this might be God or nature's way of
punishing us for having screwed things up so bad?
You could make that argument if (a) you believe in a vengeful
or retributive God or (b) you believe nature is a deity.
Personally, I am not comfortable with either of those ideas.
However, I do think Peak Oil will turn the "survival of the
fittest" theory on its head. Traditionally, we have defined
evolutionary-social fitness by looking at things like cunning,
military strength, ability to dominate etc. . In this regard,
many of us have come to regard the U.S. as the "fittest"
nation because we have the biggest economy and most lethal
military.
Our economic and military strength, however, has one major
Achilles heal: it is entirely dependant on an abundance of
cheap oil. When that runs out, it's over for us. While we
crash and burn, small, low tech, agrarian societies such as
the Hmong in the mountains of Laos will continue on without
so much as blinking an eye.
Shortly after WW II, George F. Kennan, the American
Ambassador to Moscow stated:
We have 50 percent of the world's wealth, but only 6.3
percent of its population. In this situation, our real job in the
coming period is to devise a pattern of relationships which
permit us to maintain the position of disparity. To do so, we
have to dispense with all sentimentality . . . we should cease
thinking about human rights, raising of living standards and
democratization.
See: George Kennan, US State Department Policy Planning
Study #23 (1948), quoted in John Pilger, Hidden Agendas
(The New Press, 1998), p 59 and in Richard Heinberg The
Party's Over (New Society Publishers, 2003) p. 229
We've been following Mr. Kennan's advice quite well in the
recent years. For instance, the U.S. dropped so much
Depleted Uranium on Iraq during the 1991 Gulf War that birth
defects in Iraqi babies increased by 500 percent in the next
12 years. In some cases, the radiation was so bad that 67%
of American Gulf War veterans ended up having babies with
serious birth defects. In 2003, we dropped so much Depleted
Uranium on Baghdad that radiation levels rose to 2,000 times
normal. Depleted Uranium has a half life of 4.5 billion years.
Essentially, we have eliminated the Iraqi population (and
many of our own troops) from the healthy human gene pool.
If you're not familiar with the effects of D.U., watch this.
While most of us have had nothing directly to do with such
horrors, we are ultimately responsible for holding our leaders
in check. Don't hold them in check and this is what you get.
To access Matt Savinar?s website,
click here.
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