Monday, August 10, 2009

El Crash Course

Bienvenidos al Crash Course.

El usamericano Chris Martenson se doctoró en ciencias en la Duke University (Durham, North Carolina). Es autor del Crash Course, que rápidamente recibió grandes elogios y alcanzó una enorme popularidad en su versión inglesa original. El Crash Course pretende ayudarles a comprender la naturaleza de algunos retos de extraordinaria gravedad para nuestra economía y su futura prosperidad. Lo que están ustedes a punto de ver es una versión muy resumida de un seminario de entre 6 y 8 horas que Chris Martenson ha estado impartiendo desde hace cuatro años en su país, Usamérica.

Gracias a Manuel Talens, quien ofreció gratuitamente su tiempo y esfuerzo para traducirlo al español, nos complace presentarles el Crash Course de Chris Martenson en español. Esperamos que les sea provechoso.

Hola, me llamo Atenea Acevedo y soy la presentadora de esta serie. El Crash Course integra diversos temas aparentemente dispersos para formar una sola narración. Hablaremos de economía, energía y medio ambiente, y ello porque en la encrucijada de tales temas es donde se cuenta la historia más trascendental de cualquier generación.

http://www.chrismartenson.com/crashcourse/espanol

Una vez concluida esta presentación ustedes comprenderán y pensarán la economía de manera totalmente distinta. Voy a ofrecerles un marco que clarificará lo que, para mucha gente, es un asunto profundamente confuso. Chris Martenson necesitó varios años para recopilar y desarrollar la información de este breve curso en una narración altamente condensada.

Debo advertirles que para algunos de ustedes no será fácil, porque hablaremos de algunos cambios descomunales que, preciso es reconocer, son muy dificultosos de concebir.

Pretendo cambiar sus opiniones e incluso puede que me enfrente a algunas de sus creencias más arraigadas (por ejemplo, “El crecimiento es bueno” y “El futuro se parecerá al pasado” o “El dólar es un valor seguro”). Trataré de convencerlos de que ya va siendo hora de que aprendan, presten atención y actúen.

http://www.chrismartenson.com/crashcourse/espanol


Les recomiendo que completen el Crash Course de principio a fin al menos una vez y, luego, que regresen a él cuando necesiten refrescar conceptos. Cada vez que lo deseen pueden acelerar las imágenes del capítulo haciendo avanzar la barra inferior con la ayuda del ratón o bien pueden pasar a otros capítulos pinchando en los números correspondientes situados en la parte de arriba.

Con su ayuda y sus comentarios podremos mejorar esta presentación. Si descubren algún error, si creen que algo puede mejorarse o si les parece excelente… díganmelo, por favor. Parte de este material proviene del propio Chris Martenson, pero en su mayoría pertenece a otros y él únicamente lo ha compilado. Esta presentación debe considerarse, pues, como una obra colectiva de personas motivadas y conscientes de muchos lugares.

Les aconsejo que avancen en el Crash Course a su propio ritmo… Está concebido para que puedan regresar a aquellas secciones que no les hayan quedado claras para visualizarlas de nuevo. Es mi deseo que lleguen a entender todo lo que aquí se dice.

* El Crash Course

Saturday, November 22, 2008

Islas Canarias / Plan B


Vision 2025


This is a work in progress. Our association has been involved in research about climate change, energy scarcity and financial meltdown over the last years. We are now (End of 2008) at a critical point where several disruptive events start intersecting and combining into a very threatening outcome.

Our home base being the Canary Islands, we need to seriously devise a strategy to overcome the difficulties ahead for the archipelago and demonstrate the divers solutions we have been investigating. For us on the islands, we face 2 very scary prospects: first of all, we depend almost 99% on oil for our energy needs (electricity) and transportation (no alternative to cars), despite very honorable governement efforts to diversify into renewable energy. Second, we almost completely depend on imported food by sea and air, and some of the potable water is desalinated, using tremendous amounts of electricity.

So, many challenges a lying ahead. In order to seriously tackle all the divers aspects of our vision, we make here an appeal to sponsors in order to be able to fulfill our self imposed duties.

For those who want to help us financially, please get in touch though our e-mail, or call us. Thank you all.

the transition team

-------------------

What lies ahead:

The difficulties are mainly in the realm of international finances, energy, food & water and climate change. The unfortunate thing is that these 4 main problem drivers are combining and will make for a very though future ahead.

Specifically:

1) The international financial crisis, according to the best economists and analysts, started by mid 2007 and is going to be very long lasting and very deep. Easy and cheap credit is gone for a long time to come, the time horizon looks like 5 to 10 years before any significant recovery. Trust has been broken on all levels. Trust is is a very difficult thing to recover !

2) The energy question: fossil fuels like oil and gas are getting more and more difficult to find and extract. The world's energy watchdog IEA (International Energy Agency) recognizes, in it's 2008 report, exactly this problem and puts a price tag of about 1000 Billion US $ per year to keep up with energy depletion and growth in demand. In the present reality unfortunately, the contrary happens (due to the above point No.1). Lots of new oil projects are canceled due to credit constraints, and will be for a longtime. Our very own research can only confirm all this. We fast reach a point where even on a pure economic scale, the costs to get oil dont make any more sens if compared to renewable energy.

3) Food: apart from the unbelievable number of newcomers to the human family (about 1.4 billion people will join the existing base within the next 15 years...), we do have transport problems due to point 1 (the financial crisis), fertilizer and pesticide problems due to point 2 above, and last but not least: soil erosion, flooding & drought problems leading to 6 years in a row of bad harvest worldwide, due to point 4 below.

4) Climate in crisis. I suppose that this is the most well known of our major problems and most people heard about it. It is the biggest long term threat. I just want to point out that this crisis is in constant acceleration and overshooting one tipping point after another.

Well, all this is not new. Indeed, 35 years ago, as very good study was presented by the club of Rome regarding the very problems we are now fighting. The title is fittingly "The limits to growth", and we are very much on track with what was said 35 years ago.
We need to act now if we want to have a chance to save ourself and our children.


This is where we come up with a bold vision, adapted to the archipelago :

A world living free from oil.

A planet healing and thriving.

And our environment and economy brought back into balance with each other.

This is our action plan :

1)

Generating clean, CO2 free electric energy offshore, out of sight, by using solar thermal and algae biomass. For this project, a full pre-study of several hundred pages is provided by the association. The project covers 100% of the islands needs 24 hours a day, year in year out. The technology is available, and can be implemented fast and efficiently. The path to energy independence for the Canary Islands lies offshore, taking advantage of it's southern location and the vastness of the surrounding oceans, leaving the natural beauty of the archipelago intact.


2)

Converting the transportation system (cars, new trains and trams) to 100% electricity. It's the way to the future, already being implemented on a fast track in many countries right now. (see below)


The immediate advantage

Use of existing infrastructure regarding distribution of energy, on a industry and consumer level.

As consumers, we can continue our love affair with cars, and even rekindle that relationship by experiencing transportation as a sustainable service. As nations, we can redefine the economics of transportation by breaking the connection with oil. And as a global population, we can see our environment flourish because of our economic growth and prosperity.

Think of it like this: The plug we use to charge our electric cars, the people who drive those cars, the planet we live on, and our mutual prosperity are all interconnected.

PLUG: When we recharge our zero emission electric cars, we’re plugging into a “smart” mobile transportation service that eliminates our addiction to oil.

PEOPLE: When we drive, we’re still in the cars we know and love. The only things that change are how much less we pay, how much more we’re benefiting our world, and how much better we can feel about driving.

PLANET: Together, we achieve global oil independence, reduce greenhouse gases, and create new markets for renewable energy.

PROSPERITY: As we build the new infrastructure to lessen our dependency on oil, we create a carbon-free economy that generates new jobs, levels the global playing field, and creates sustainable and environmentally beneficial growth for future generations.

We cannot continue generating our electricity needs by the means of fossil fuels. Our cars cannot run on oil and gas forever. The resource is running out, the price is crippling our economy, and the continued use of it is harming our planet.

Regarding cars, many technologies are jockeying to replace the internal combustion engine. We’ve studied them all, and have decided that the electric drive train is the world’s best option. It could transform our cars into vehicles that produce economic prosperity in harmony with the environment, and end our addiction to oil.

That’s why the battery-powered electric vehicle is the centerpiece of our vision for sustainable, zero-emission transportation as a service.

Please explore the following sections to see why we chose this technology over other low- and zero-emission alternatives, how the infrastructure for the electric car is already being built, and how this vision is already becoming a reality, today.

The goal:

No emissions.

Zero.

This goal is achievable, and we should accept nothing less. That’s why we’re incorporating time-tested lithium ion battery technologies into electric cars as part of our sustainable transportation network.

What about Hybrids? You can buy one today, and they are definitely an improvement over a standard internal combustion engine. But they still need oil. Not as much, but they still need it. They won’t break our addiction to oil, they’ll simply make it last longer.

And hydrogen fuel cells? All they produce is water vapor. But the technology to mass-produce them is years away, and we must begin the transition of our infrastructure now, with today’s technology.

The capability to build an all-electric car network is available today. Around the world, auto makers, battery manufacturers, energy companies and governments, are making rapid progress. Israel has declared its commitment to be oil free by 2020. Denmark has reaffirmed its global environmental leadership by committing to a renewable energy-powered electric car network, presenting new market opportunities for its considerable stores of wind energy. Australia has made the commitment to reducing its carbon footprint by utilizing its robust renewable energy supply. And the San Francisco Bay Area will now be the electric vehicle capital of the U.S., delivering electric vehicle infrastructure to its citizens. Twenty-five more countries around the world are already talking about how they can be part of this future.

We are on an accelerated path to something truly amazing: sustainable transportation and economic growth that actually benefits our planet, and leaves nothing behind ... except the addiction to oil.

Electric cars, with their powered grids and batteries, create an enormous new market for utilities. And that market becomes the ultimate driver of renewable energy. The power storage issues that hinder the growth of green power will be alleviated as the electric car infrastructure becomes a repository for excess electricity. As the electric car network grows, the market for green energy will grow with it, encouraging future investment in wind farms, solar power fields and geo-thermal plants. It won’t happen overnight. It will take years for the world to make this transportation. But the electric car network being created is the surest and quickest way for us to achieve it.



... a work in progress, more:

We like to share some excellent thoughts ( even if we do not agree on some very disputable points...) from

the US Chamber of Commerce Energy Plan

Well they say that “the Times they are a changin’ ” and with the impending change in the Administration and its approach to energy , and the change in the leadership of the Energy and Commerce Committee in the House, I suspect that change is what we are going to get. One indicator of a possible path forward comes from the U. S. Chamber of Commerce, where General James Jones, anticipated to be the next National Security Advisor, has been heading a panel that has just issued A Transition Plan for Securing America’s Energy Future. So I thought we might take a quick look at what it says. To quote the preamble

Global demand (for energy) will increase by more than 50% between now and 2030 – and perhaps by as much as 30% here in the United States. We must develop new, affordable, diverse, and clean sources of energy that will underpin our nation’s economy and keep us strong both at home and abroad. Our energy future must address growing shortfalls in infrastructure capacity and emerging environmental issues. . . . .And looking ahead, even the most optimistic among us must conclude that we are not well positioned to anticipate nor prepared to meet tomorrow’s energy needs.


Based upon an initial list of 13 pillars that had been submitted as an open letter earlier this year, the Chamber has presented a detailed plan to move forward. The thirteen pillars are:

1. Aggressively Promote Energy Efficiency
2. Reduce the Environmental Impact of Energy Consumption and Production
3. Invest in Climate Science to Guide Energy, Economic and Environmental Policy
4. Significantly Increase Research, Development Demonstration and Deployment of Advanced Clean Energy Technologies
5. Significantly Expand Domestic Oil and Gas Exploration and Production (economically justified)
6. Commit to and Expand Nuclear Energy Use (this point is more than questionable)
7. Commit to the Use of Clean Coal (very difficult to implement and extremely expensive)
8. Increase Renewable Sources of Energy
9. Transform our Transportation Sector
10. Modernize and Protect U.S. Energy Infrastructure (valid for all countries worldwide)
11. Address Critical Shortages of Qualified Energy Professionals
12. Reduce Overly Burdensome Regulations and Opportunities for Frivolous Legislation
13. Demonstrate Global Leadership on Energy Security and Climate Change.

To ensure that the program is given the importance it deserves, the plan recommends the creation of a new office within the Executive Office of the President, to coordinate energy policy. Further that the holder of this post should sit on the National Economic and National Security Councils.

The plan then goes ahead to list 88 recommendations as a roadmap to meeting the above imperatives. In the interests of space, and time, I am not going into all of these – they are broken down into initiatives from the President and Administration, those that involve the Administration and Congress, those that relate mainly to Congress, and the Individual States. They are divided by the thirteen themes listed above, so let me briefly glance at each sector and give you my abbreviated thoughts on the recommendations for that theme.

In the area of Energy Efficiency, part of the recommendations relate to tax incentives for items such as more energy efficient buildings and the installation of more efficient appliances, windows, furnaces etc, but carry those on into the electric grid and smart grid devices. Since the document is from the Chamber it is more oriented toward business, but Alan wrote to me earlier this week about the Energy Savings that can come from retrofitting homes, citing the Austin Energy initiative, and the significant energy savings it has accomplished by the sort of Aggressive approach that the Chamber seems to be advocating. This pro-active sort of program is claimed to have saved the energy of a 500 MW power plant already, and at that level would also seem to deserve inclusion in the agenda, but does not appear.

Moving on to Environmental Impacts (separated from Climate Science) it seeks Congressional activity to give tax credits for retrofitting existing coal-fired power plants to reduce criteria pollutants and carbon dioxide emissions. It also seeks clarification that greenhouse gas emissions should not be regulated under the Clean Air Act or the Endangered Species Act.

There is an interesting paragraph in the section on Climate Science, which largely calls for a greater investment in Climate Science, and the integration of data. It reads:

To maintain the public’s trust and support and to ensure transparency, researchers who receive federal support should be required to disclose their data, models, and other relevant material, subject to protections for confidential business information, so that results can be assessed and reproduced.

Perhaps, having read of some of the issues that Steve McIntyre has had with the hockey stick plot of global temperature rise, I will quietly tiptoe away from this one. It is difficult to dispute, however, the need for the integrated surface, ocean and space-based observation network that the plan calls for.

In the field of Clean Energy Technologies the plan calls for venture capital firms and businesses to work within the national laboratories to commercialize technologies being developed there. It calls for a new ARPA-E program or its equivalent to fund high-risk, exploratory research on innovative concepts and enabling technologies, and also notes the need for an Electrical Energy Storage Initiative to develop cost-effective technologies that can store 50 to 100 MW of power, for use with intermittent technologies (I presume that means wind and solar). It calls for doubling federal spending on Energy Technology R&D, a long-term tax credit for companies in that area, and a Clean Energy Bank that will be able to accelerate the market penetration of advanced clean energy technologies.

Under the section dealing with the expansion of Domestic Oil and Gas Production it seeks to open the Outer Continental Shelf, encourage the Alaska natural gas pipeline and the expansion of the leasing program for access to fuel sources on non-park federal lands. It recommends repeal of the rule that prevents the federal government from using non-traditional transportation fuel sources.

Seems that Leanan had noted that the Bush Administration was doing something about the access to federal lands earlier last week, we’ll just have to see how that one plays out. As to the fuel source issue, seems to me there was a Congressman . . .

And speaking of Congressmen, it should be noted that if Leanan’s catch on the new head of the Energy and Commerce Committee not liking hydrofracing holds up then it is possible that the techniques that are currently producing gas from the shales of the East and Mid-West might be in trouble. He seems a sort of determined type of guy, so again, we’ll just have to see how that plays out.

Under the section dealing with the Expansion of Nuclear Energy, the plan calls for a resolution of the storage issue for spent fuel, and growth in the strategic stockpile of uranium.

Under Clean Coal technology it suggests partnering with other governments in advancing CCS technology, it recommends $500 million toward the IGCC program and related carbon capture technology research, and $500 million for an IGCC demonstration plant, with creation of an industry-funded research program to support further R&D in this area. It suggests that tax credits be used to encourage the first five or six advanced coal-fired plants.

When discussing Renewable Sources of Energy, the plan does not single out different potential programs, but rather (within the framework of doubling overall federal R&D spending) recommends more research and more tax credits to encourage investment. Maybe they think that all the current commercials for the technology, and the support of T. Boone will be all that it takes.

The recommendations for the Transportation Sector include encouragement for the military to find alternate sources of fuels for military use. Interestingly it is here that the possible conflict between biofuels and food is addressed, with the suggestion of a multi-agency review, though the problem gets tossed to the National Academies for recommendations. Sadly there is no encouragement of urban transportation systems, such as those that Alan, inter alia, advocates.

Infrastructure recommendations include the implementation of a smart grid, the inclusion of refined products in the Strategic Petroleum Reserve, which should be grown to 1 billion barrels, and the problems that water availability is going to bring to the production and availability of energy.

Hmm, and the section on the Critical Shortage of Energy Professionals – apart from the nice sounding “providing adequate financial and institutional support for researchers”, I don’t see a lot of recognition of a real program that will help get us where we need to be, though it contains the appropriate phraseology. Motivation, motivation, motivation . . . (so--when are we all retiring ??)

Under the heading of Reducing Frivolous Litigation, it suggests streamlining the permitting of refineries, a federal siting authority and a review of the Clean Air Act to allow routine maintenance. (This one goes right by me – I have no clue!!)

And that brings us to the final recommendations on Leadership in Energy Security and Climate Change. This includes the safety of international shipping routes, and the raising of energy as a critical part of the U.S. trade agenda. In light of our other ongoing discussions on the IEA it does recommend a strengthening of support for that Agency, and for the expansion of its membership to include India and China. It also calls for the creation of an International Clean Energy Fund, and as something close to Matt Simmon’s heart

Nations should improve transparency, reliability, and availability of oil and gas market data as well as their analysis of long- and short-term supply and demand trends to help make the world energy market less volatile.

I would encourage you to visit the site, and then add comments to perhaps explain some of the issues that I have glossed over. We will see if it has any future.


And here is an other proposal for a world in transition:


the Green Chamber of Commerce:

Goals:

(this covers pretty much what our association needs to do as well)

* Strengthen the voice and political influence of businesses united to create green public policy and a sustainable economy.

* Actively work to conserve natural resources, eliminate dependence on fossil fuels and reverse global warming.

* Extend the ideas, best practices and influence of green businesses large and small.

* Increase awareness of the unprecedented opportunities in the emerging green economy.

* Promote the interests of businesses that are committed to measuring their success in terms of benefit to people, planet and profit.

* Work with existing organizations in their efforts to create green, sustainable business models.

* Help businesses and the general public learn what they can do to support a healthy environment.

* Provide networking opportunities for green businesses.

* Provide promotional opportunities for members

* Encourage awareness of the relationship between social responsibility and green business practices.

Wednesday, November 5, 2008

Richard Heinberg's MuseLetter 199 for November 2008

Here is Richard Heinberg's MuseLetter 199 for November 2008.

Best wishes,

Richard

The Food and Farming Transition

The only way to way avert a food crisis resulting from oil and natural gas price hikes and supply disruptions while also reversing agriculture’s contribution to climate change is to proactively and methodically remove fossil fuels from the food system.

The removal of fossil fuels from the food system is inevitable: maintenance of the current system is simply not an option over the long term. Only the amount of time available for the transition process, and the strategies for pursuing it, can be matters for controversy.

Given the degree to which the modern food system has become dependent on fossil fuels, many proposals for de-linking food and fuels are likely to appear radical. However, efforts toward this end must be judged not by the degree to which they preserve the status quo, but by their likely ability to solve the fundamental challenge that will face us: the need to feed a global population of 7 billion with a diminishing supply of fuels available to fertilize, plow, and irrigate fields and to harvest and transport crops.

If this transition is undertaken proactively and intelligently, there could be many side benefits—more careers in farming, more protection for the environment, less soil erosion, a revitalization of rural culture, and more healthful food for everyone.

Some of this transformation will inevitably be driven by market forces, led simply by the rising price of fossil fuels. However, without planning the transition may be wrenching and destructive, since market forces acting alone could bankrupt farmers while leaving consumers with few or no options.

The Transition

To remove fossil fuels from the food system too quickly, before alternative systems are in place, would be catastrophic. Thus the transition process must be a matter for careful consideration and planning.

In recent years there has been some debate on the problem of how many people a non-fossil fueled food system can support. The answer is still unclear. But we will certainly find out, because there is likely to be no alternative, given that substitute liquid fuels—including coal-to-liquids, biofuels, tar sands, and shale oil—are all problematic and cannot be relied upon to replace cheap crude oil and natural gas as these deplete.

There are reasons for hope: a recent report on African agriculture from the United Nations Environmental Programme (UNEP) suggests that "organic, small-scale farming can deliver the increased yields which were thought to be the preserve of industrial farming, without the environmental and social damage which that form of agriculture brings with it."

Nevertheless, given that we do not know whether non-fossil fuel agriculture can in fact feed a population now approaching seven billion—and given that current fuels-based agriculture cannot be relied upon to do so for much longer, given the reality of fuel depletion—the prudent path forward would surely be to tie agricultural policy to population policy.

Indeed, coordination will be essential also between agriculture policies and education, economic, transport, energy policies. The food system transition will be comprehensive, and will require integration with all segments and aspects of society.

This document is intended to serve as the basis for the beginning of that planning process. Our aim is to develop a template that can be used to strategically plan the transition of food and farming across the world, region by region, and at all scales (from the farm to the community to the nation), beginning here in the UK.

Elements of Transition

The following are some key strategic elements of the food systems transition process that will need to be addressed at all levels of scale, from the household to the nation and beyond.

Re-Localization

In recent decades the food systems of Britain and most other nations have become globalized. Food is traded in enormous quantities—and not just luxury foods (such as coffee and chocolate), but staples including wheat, maize, meat, potatoes, and rice.

The globalization of the food system has had advantages: people in wealthy countries now have access to a wide variety of foods at all times, including fruits and vegetables that are out of season (apples in May or asparagus in January), and foods that cannot be grown locally at any time of year (e.g., avocadoes in Scotland). Long-distance transport enables food to be delivered from places of abundance to areas of scarcity. Whereas in previous centuries a regional crop failure might have led to famine, its effects now can be neutralized by food imports.

However, food globalization also creates systemic vulnerability. As fuel prices rise, costs of imported food go up. If fuel supplies were substantially cut off as the result of some transient event, the entire system could fail. A globalized system is also more susceptible to accidental contamination, as we have seen recently with the appearance of toxic melamine in foods from China. The best way to make our food system more resilient against such threats is clear: decentralize and re-localize it.

Re-localization will inevitably occur sooner or later as a result of declining oil production, since there are no alternative energy sources on the horizon that can be scaled up quickly to take the place of petroleum. But if the transition process is to unfold in a beneficial rather than a catastrophic way, it must be planned and coordinated. This will require deliberate effort aimed at building the infrastructure for regional food economies—ones that can support diversified farming and reduce the amount of fossil fuel in the British diet.

Re-localization means producing more basic food necessities locally. No one advocates doing away with food trade altogether: this would hurt both farmers and consumers. Rather, what is needed is a prioritization of production so that lower-value food items (which are typically staple calorie crops) are mostly sourced from close by, with most long-distance trade left to higher-value foods, and especially those that store well.

This decentralization of the food system will result in greater societal resilience in the face of fuel price volatility. Problems of food contamination, when they appear, will be minimized. Meanwhile, revitalization of local food production will help renew local economies. Consumers will enjoy better quality food that is fresher and more seasonal. And transport-related climate impacts will be reduced.

Each nation or region will need to devise its own strategy for re-localizing its food system, based on a thorough initial assessment of vulnerabilities and opportunities. The following are some general suggestions that are likely to be applicable in most instances:

  • The process will benefit enormously from policy support at both national and regional levels. This could include, for example, the provision of grants to towns and cities to build year-round indoor farmers’ markets.
  • Food-safety regulations should be made appropriate to the scale of production and distribution, so that a small grower selling direct off the farm or at a farmers’ market is not regulated as onerously as a multinational food manufacturer. While local food may have safety problems, these will inevitably occur on a smaller scale and will be easier to manage because local food is inherently more traceable and accountable.Governments can require that some minimum percentage of food purchases for schools, hospitals, military bases, and prisons are sourced within 100 miles of the institutions buying the food. Channelling even a small portion of institutional food purchasing to local growers would greatly expand opportunities for regional producers while improving the diet of people whom these institutions feed.
  • Cities and towns can rework their waste management systems so as to collect food scraps that can then be converted to compost, biogas, and livestock feed—which can in turn be made available to local growers.

But government can do only so much. Consumers must develop the habit of preferentially buying locally sourced foods whenever possible, and they can be encouraged in this by "Buy Local" educational literature distributed by retailers—who can also assist by clearly labeling and prominently displaying local products.

Growers themselves must rethink their business strategies. Instead of growing specialty crops for export, they must plan a transition to production of staple foods for local consumption. They must also actively seek local markets for their food. The Community Supported Agriculture (CSA) movement provides a business model that has proven successful in many communities. Small producers can also create informal co-ops to acquire machinery (such as small threshing machines for cereal and oilseed processing or micro hydro turbines for electricity).

The strategy of re-localizing food systems will be more challenging for some nations and regions than others. Given that the food footprint of London encompasses essentially all of England, the challenge for Britain is greater than is the case for many other nations. More urban gardens and even small animal operations (with chickens, ducks, geese, and rabbits) within London and other cities should be encouraged, but even then it will be necessary to source most food from the countryside, delivering it to the city by rail. Thus re-localization should be seen as a process and a general direction of effort, not as an absolute goal.

Energy

As society turns away from fossil fuels, the energy balance of farming must once again become net positive. However, the transition process will be complex and problematic. Farms will still need sources of energy for their operations, and will need to provide much or all of that energy for themselves. Meanwhile, farmers could also take advantage of opportunities to export surplus energy to nearby communities as a way of increasing farm income.

Farms must be powered with renewable energy. However, many energy needs on farms—such as fuel for tractors and other machinery—are currently difficult to fill with anything other than liquid fuels, which currently come in the form of diesel or petrol made from crude oil. Farmers should first look for ways to reduce fuel needs through efficiency or replacement of machines with animal power or human labor. This is most likely to be economically feasible in dairy, meat, vegetable, fruit, and nut operations. Where fuel-fed machinery is still required, which is likely to continue being the case for grain production, ethanol or biodiesel made on-site could supplement or replace petroleum. Farmers could aim to apportion one-fifth of their cropland to production of biofuels for their own use.

Many other farm operations require electricity, and this can be generated on-site with wind turbines, solar panels, and micro-hydro turbines. Effort first must be devoted to making operations more energy-efficient. Because these technologies require initial investment and pay for themselves slowly over time, assistance from government and from financial institutions in the form of grants and low-interest loans could be instrumental in helping farmers overcome initial economic hurdles toward energy self-sufficiency.

Eventually farmers are capable of being not just self-sufficient in energy, but of producing surplus energy for surrounding communities. Much of this exported energy is likely to come in the form of biomass—agricultural and forestry waste that can be burned to produce electricity. While farmers can also grow crops for the production of biofuels, the ecological and thermodynamic limits of this energy technology require that the scale of production be deliberately restricted. Otherwise, society’s demand for fuel could overwhelm farmers’ ability to produce food—and food must remain their first priority. In exporting biomass from the farm, growers must always keep in mind the productive capacity of sustainable agricultural systems, and they must strictly monitor soil health and fertility.

The transition of farms to renewable energy will require planning. Farmers, ideally with the assistance of regional and national agencies, should plan to increase energy efficiency, to reduce fossil fuel inputs, and to grow renewable energy production according to a staged, integrated program designed for the unique needs and capabilities of each farm. As a general guideline, the plan should aim to reduce oil and natural gas inputs by at least half during the first decade

Soil Fertility

In industrial agriculture, soil fertility is maintained with inputs provided from off-site. Of these inputs, the most important are nitrogen and phosphorus. Nitrogen comes from ammonia-based fertilizers made from fossil fuels—principally, natural gas. Phosphorus comes from phosphate mines in several countries. While sufficient low-quality phosphate deposits exist to supply world needs for many decades, high-quality deposits that are currently being mined are quickly depleting, which means that phosphate prices will likely rise within the next few years. [Phosphate Primer]

Both nitrogen and phosphorus are essential to agriculture. And our current ways of supplying both are clearly unsustainable. Unless alternative ways of maintaining soil fertility are quickly found, a crisis looms.

The long-term solution will surely depend on a two-fold strategy: designing farm systems that build fertility through crop rotations, and recycling nutrients.

Crop rotation can help with maintaining nitrogen levels. Simply planting a cover crop after the fall harvest significantly reduces nitrogen leaching while cutting down on soil erosion. Meanwhile, introducing leguminous crops into the rotation cycle replaces nitrogen.

Cleverly designed polycultures can sustainably produce large amounts of food, as has been shown not only by small-scale "alternative" farmers in Britain and America, but also by large rice-and-fish farmers in China and giant-scale operations (up to 15,000 acres) in Argentina. There, farmers employ an eight-year rotation of perennial pasture and annual crops: after five years grazing cattle on pasture, farmers then grow three years of grain without applying fertilizer. The need for herbicides is also dramatically reduced: weeds that afflict pasture cannot survive the years of tillage, and weeds of row crops don’t survive years of grazing.

Most industrial farmers have left behind the practice of cover cropping because commercial fertilizers have become the cheaper option. That cost equation is about to shift. It is therefore important that farmers begin planning for higher fertilizer prices now by gearing up their rotation cycles and building natural soil fertility ahead of the immediate need.

In industrial agriculture, the soil is treated as an inert substance that holds plants in place while chemical nutrients are applied externally. Without efforts to maintain natural fertility, over time organic matter disappears from the soil, along with beneficial soil micro-organisms. In the future, as chemical fertilizers become more expensive, farmers will need to devote much more attention to the practice of building healthy soil. But rebuilding nutrient-depleted soil takes, at minimum, several years of effort.

Traditional farmers increase organic matter in topsoil through the application of compost—which not only builds soil fertility, but also improves the soil’s ability to hold water and thus withstand drought. There is also mounting evidence that food grown in properly composted soil is of higher nutritional quality. Currently, in typical modern cities, consumers, retailers, wholesalers and institutions discard enormous quantities of food. Some communities have already instituted municipal programs for composting of food and yard waste; such programs could be expanded and made mandatory, with compost being given free to local farmers. This would reduce the amount of garbage going to land fills, as well as farmers’ needs for fertilizers and irrigation, while improving the nutritional quality of the British diet.

In addition, recent research with "terra preta" (also known as "bio char"), a charcoal-like material that can be produced from agricultural waste, suggests that its introduction to soils could reduce plants’ need for nitrogen by 20 to 30 percent while sequestering carbon that would otherwise end up in the atmosphere.

The potential of composting and the use of terra preta to mitigate the climate crisis is hardly trivial: a one-percent increase of soil organic matter in the top 33.5cm of the soil is equivalent to the capture and storage of 100 tonnes of atmospheric CO2. per square kilometre of farmland.

Ultimately, there is no solution to the phosphorus supply problem other than full-system nutrient recycling. This will entail a complete redesign of sewage systems to recapture nutrients so they can be returned to the soil—as Chinese farmers learned to do centuries ago. But if sewage systems (or simpler variants) are to become primary sources of phosphorus and other soil nutrients, they cannot continue to be channels for the disposal of toxic wastes. It is essential that separate waste streams be developed for the disposal of all pharmaceuticals, household chemicals, and industrial wastes. Thus the problem of soil fertility is one that farmers cannot solve on their own: it is a crisis of the food system as a whole, and must be addressed contextually and holistically.

Diet

The consumer is as important to the food system as the producer. During recent decades, consumer preferences have been shaped to fit the industrial food system through advertising and the development of mass-marketed, uniform, packaged food products that, while often nutritionally inferior, are cheap, attractive, in some cases even physically addictive. The advent and rapid proliferation of "fast food" restaurants has likewise fostered a diet that is profitable to giant industrial agribusiness, but disastrous to the health of consumers. However lamentable these trends may be from a public health standpoint, they are clearly unsustainable in view of the energy and climate crises facing modern agriculture.

Because processed and packaged foods and fresh foods imported out of season add to the energy intensity of the food system, rich and poor alike must be encouraged to eat food that is locally grown, that is in season, and that is less processed. Public education campaigns could help shift consumer preferences in this regard.

A shift toward a less meat-centered diet should also be encouraged, because a meat-based diet is substantially more energy intensive than one that is plant-based.

Government can help with a shift in diet preferences through its own food purchasing polices (see "Re-Localization," above). The process can be helped even further by a more careful official government definition of "food." It makes no sense for government efforts intended to improve the nutritional health of the people to support the consumption of products known to be unhealthful—such as soda and other junk food.

Farming Systems

During the past few decades farming has become more specialized. Today, a typical farm may produce only meat of a single kind (turkey, chicken, pork, or beef), or only dairy, or a single type of grain, vegetable, fruit, or nut.

This narrow specialization seemed to make economic sense in the era of cheap transport and cheap farm inputs. But because nature is diverse and integrated, the deliberate elimination of diversity on the farm has led to problems at every step. For example, animal feedlot operations (also known as concentrated animal feed operations, or CAFOs) produce enormous amounts of waste that end up in massive manure lagoons that pollute ground water and foul the air. Meanwhile, grain diets fed to the animals result in digestive problems requiring the large-scale administration of antibiotics that find their way into both the human food system and ground water, and that lead to antibiotic resistance among disease organisms that afflict humans.

Farm specialization also impacts the grain or vegetable grower: soils that annually produce these crops need a regular replenishment of nitrogen; but if the farmer keeps few animals, there may be no option other than to import fertilizers from off-site.

By switching to multi-enterprise diverse systems, farmers can often solve a range of problems at once. Feeding much less grain to livestock while giving them access to pasture that is in rotation with other crops maintains soil fertility while leading to better animal health and higher food quality. The farmer, the environment, and the consumer all benefit.

The post-hydrocarbon food transition may also compel a rethinking of the size of farm operations. The mechanization of farm operations and the centralization of food systems favored larger farms. However, as fuel for farm machinery becomes more costly, and as farming once again involves more labor, smaller-scale operations will once again be profitable. In addition, a smaller scale of operations will be needed as farms become more diverse, since farmers will have more system elements to monitor. Agriculture will thus become more knowledge-intensive, requiring a curious, holistic attitude on the part of farmers.

In urban areas, micro-farms and gardens—including vertical gardens and rooftop gardens that in some cases include small animals such as chickens and rabbits—could provide a substantial amount of food for growers and their families, along with occasional income from selling seasonal surpluses at garden markets.

Farm Work

With less fuel available to power agricultural machinery, the world will need many more farmers. But for farmers to succeed, some current agricultural policies that favor larger-scale production and production for export will need to change, while policies that support small-scale subsistence farms, gardens, and agricultural co-ops must be formulated and put in place—both by international institutions such as the World Bank, and also by national and regional governments.

Currently the UK has 541,0001 farmers, depending on how the term is defined. In the UK in 1900, nearly 40 percent of the population farmed; the current proportion is less than one percent. Today, the average farmer is nearing retirement age.

In nations and regions where food is grown without machinery, a larger percentage of the population must be involved in food production. For example, farmers make up more than half the populations of China, and India, Nepal, Ethiopia, and Indonesia.

While the proportion of farmers that would be needed in Britain if the country were to become self-sufficient in food grown without fossil fuels is unknown (that would depend upon technologies used and diets adopted), it would undoubtedly be much larger than the current percentage. It is reasonable to expect that several million new farmers would be required—a number that is both unimaginable and unmanageable over the short term. These new farmers would have to include a broad mix of people, reflecting the UK’s increasing diversity. Already growing numbers of young adults are becoming organic or biodynamic farmers, and farmers’ markets and CSAs are also springing up across the country. These tentative trends must be supported and encouraged. In addition to Government policies that support sustainable farming systems based on smaller farming units, this will require:

  • Education: Universities and community colleges must quickly develop programs in small-scale ecological farming methods—programs that also include training in other skills that farmers will need, such as in marketing and formulating business plans. Apprenticeships and other forms of direct knowledge transfer will also assist the transition.
  • Financial Support: Since few if any farms are financially successful the first year or even the second or third, loans and grants will be needed to help farmers get started.
  • A revitalization of farming communities and farming culture: Over the past decades UK rural towns have seen their best and brightest young people flee first to distant colleges and then to cities. Farming communities must be interesting, attractive places if we expect people to inhabit them and for children to want to stay there.

Seeds

Today’s seed industry is centralized and reliant upon the very fuel-based transport system whose future viability is in question. Most commercial seeds are of hybrid varieties, so that farmers cannot save seed but must purchase new supplies each year.

Worldwide, a growing proportion of the commercial seeds that are available are genetically modified. GM seeds have primarily been developed by chemical companies to support the sale of their proprietary herbicides. The promise of more nutritious foods, or crops that can produce biofuels more efficiently, is years from realization. Given that the need for transition is immediate, efforts to build a post-fossil fuel food system cannot wait for new technologies that may or may not appear or succeed. In any case, the GM seed industry is based upon current systems of transport, and fuel-based inputs such as chemical fertilizers and herbicides, that are all inextricably tied to the wider fossil-fuel based provisioning systems of society. Thus GM crops would be unlikely to be of much help in the transition in any case.

What is needed instead is a coordinated effort to identify open-pollinated varieties of food crops that are adapted to local soils and microclimates, and a program to make such seeds available to farmers and gardeners in sufficient quantities. In addition, local colleges must begin offering courses on the techniques of seed saving.

Processing and Distribution Systems

The transition process will undoubtedly be fraught with challenges to food processing and distribution systems, which currently rely on large energy inputs and long-distance transport.

For example, the meat industry now depends upon centralized facilities for slaughtering livestock—which must be transported long distances to these facilities. Re-localizing food systems will entail creating incentives for the emergence of smaller, more localized slaughterhouses and butcher shops. One interim solution would be for a fleet of mobile abattoirs to go from farm to farm, processing animals humanely and inexpensively.

Many health regulations were originally designed to check abuses by the largest food producers, but such regulations may now inhibit the development of smaller-scale and more localized processing and distribution systems. For example, farmers should be able to smoke a ham and sell it to their neighbours without making a huge investment in nationally approved facilities. A small producer selling direct from the farm or at a farmers’ market should not be subject to the same food safety regulations as a multinational food manufacturer: while local food may occasionally have safety problems, those problems will be less catastrophic and easier to manage than similar problems at industrial-scale facilities.

Food processors must look for ways to make their present operations more energy efficient, while government, consumers, and retailers find ways to reduce the need for food processing and also for food packaging. This gradual shift will require institutional support for families in storing, processing, cooking, and preserving food within the home.

Meanwhile, in view of inevitable problems with existing transport systems, national and regional food storage systems must be reconsidered. Reserves of grain, sufficient to provide for essential needs during an extended food crisis, should be kept and managed to avoid spoilage.

Packaging of food should be regulated to minimize the use of plastics, which will become more scarce and expensive as oil and gas deplete—and which are implicated as sources of toxins in any case.

Government should institute policies that prioritize the distribution of food within the nation by rail and water, rather than by road, as trucks are comparatively energy inefficient.

Supermarkets are currently the ultimate distribution sites for food in most instances. However, this model presupposes near-universal access to automobiles and petrol. A resilient food system will require smaller and more widely distributed access points in the forms of small shops and garden or farm markets. Government regulations and tax incentives can help accomplish that shift.

Wholesalers and distributors will have a changed role in a transitioning food system. They will still be needed to manage the supplies of various seasonally produced foods moving from producers to consumers. However, rather than favoring large producers and giant supermarket chains, they must alter their operations to serve smaller, more distributed farms and gardens, as well as smaller and more distributed retail shops.

Resilience Action Planning

The transition process will succeed by creating more resilience in food systems. Resilient systems are able to withstand higher magnitudes of disturbance before undergoing a dramatic shift to a new condition in which they are controlled by a different set of processes. One quality of resilience is redundancy—which is often at odds with economic efficiency. Efficiency implies both long supply chains and the reduction of inventories to a minimum. This "just-in-time" delivery of products reduces costs—but it increases the vulnerability of systems to disturbances such as fuel shortages. As more attention is paid to resilience and less to economic efficiency, redundancy and larger inventories are seen as benefits rather than liabilities. Other resilience values include diversity (as opposed to uniformity), and dispersion (rather than centralization) of control over systems.

Building resilience into our food systems as we move toward a post-fossil fuel economy will entail all of the Elements of Transition detailed above. It will also require planning at four levels: Government, Community, Business, and Individual or Family. At each level the planning process will necessarily be somewhat different. The purpose of this section is to delineate the main planning steps that will make sense at each of these levels. In some instances, steps within an action plan can or should be undertaken concurrently. In any case, what is offered here is merely a skeletal outline for a process that must be developed to fit unique needs of those it will serve.

Government

The following steps are applicable at any level of government—national, regional, or local. At the highest level of scale (the nation), each step will itself be the subject of planning and delegation. At the lowest level of scale (small villages), government may lack the capacity to undertake any of these steps and can do more than offer symbolic official support to volunteer citizen initiatives.

1. Assess the existing food system. Begin with a study of current systemic vulnerabilities and opportunities. How are farm inputs currently sourced? How much food is currently imported? What proportion of those food imports are staples, and what proportion are luxury foods? What are the environmental costs of current agricultural practices? How would the current food system be impacted by fuel shortages and high prices?

2. Review policies. How are current policies supporting these vulnerabilities and environmental impacts? How can they be changed or eliminated? Are there policies already in place that are likely to help with the transition? How can these latter policies be strengthened?

3. Bring together key stakeholders. Organizations of farmers, food processing and distributing companies, and retailers must all be included in the transition process. Many will wish simply to maintain the existing system; however, it must be made clear that this is not an option. Many companies involved in the food system will need to change their business model substantially.

4. Make a plan. The transition plan that is formulated must be comprehensive and detailed, and must contain robust but attainable targets with timelines and mechanisms for periodic review and revision. A scoping exercise must be undertaken to assess the impact of the plan on agricultural output and to quantify the changes in kinds of commodities produced and in their volumes and prices. Simon Fairlie’s paper, "Can Britain Feed Itself?", is an initial attempt at such an exercise, and can be used as a model to be built upon and supplemented.

5. Educate and involve the public. The public must not only be informed about the government-led aspects of the transition process, but must be included in it to the extent that is practical. Citizens must be educated about food choices, gardening opportunities, and ways to access food from local producers. Their successes and challenges in adaptation will inform new iterations of the plan.

6. Shift policies and incentives. This is the key responsibility of government, as it either limits or enhances the ability of community groups, businesses, and families to engage in the transition process. Policy changes must reflect stakeholder input, but must nevertheless be designed primarily to further the Elements of Transition, rather than the short-term interests of any particular stakeholder group.

7. Monitor and adjust. An undertaking of this magnitude will inevitably have unforeseen and unintended impacts. Thus it is essential that progress be continually be reviewed with an eye to making adjustments to pace and strategy, while maintaining absolute adherence to the central task of methodically removing fossil fuels from the food system.

Community

The following are action steps for adoption by voluntary community groups, as opposed to governments (see above). The Transition Network provides an excellent model for this kind of community action. Such efforts seem to work best when the scale of community is such that meetings are manageable in size and meeting participants need not travel long distances. Thus in large cities, neighborhoods could apply Resilience Action Planning while sending delegates to occasional city-wide coordinating meetings. The overlap and mutual support between community organizations and local government efforts must be a matter for discussion and negotiation.

1. Assess the local food system. This assessment process should be undertaken in cooperation with government, so as not to duplicate tasks. Volunteer citizen groups are in position to provide perspectives that otherwise might elude government assessment efforts—such as opportunities for community gardens, or problems with access to food from local producers.

2. Identify and involve stakeholders. Local growers, shop owners, public kitchens, restaurants, schools, and other institutions that produce or serve food should all be contacted and invited to join a voluntary re-localization initiative and to offer input into the process.

3. Educate and involve the public. Community groups can stage public events to raise awareness about food transition issues. "Buy local" brochures and pamphlets, paid for and distributed by a consortium of local businesses (but organized by volunteer groups), can list local producers, farm markets, restaurants, and shops.

4. Develop a unique local strategic program. This can include farmers’ markets, CSAs, school lunch programs, and public kitchens, networked with local producers, including community gardens. The program, based on input from stakeholders, should feature targets and timelines developed through a "backcasting" process, beginning with a collaborative exercise aimed at envisioning the local food system as it might look in 2025 after fossil fuels have ceased to play a role.

5. Coordinate with national programs. Local volunteer efforts can play a significant role in informing national government policies, and in implementing the national transition strategy. However, this will require the maintenance of open channels of communication, which in turn will be the responsibility of both government and the local groups.

6. Support individuals and families. Individuals are likely to change food habits and priorities only if they see others doing so as well, and if they feel that their efforts are supported and valued. Community groups can help by establishing new behavioral norms through public events and articles in local newspapers. Practical help can be offered via canning parties, garden planting and harvest parties, and gleaning programs. Local food and gardening experts can be made available to answer questions and concerns. Neighborhood food storage facilities can also be created to supplement household cupboards.

7. Monitor and adjust. All of these efforts must be continually adjusted to assure that all segments of the community are included in the transition process, and that the process is working as smoothly as possible for all.

Business

Relevant businesses include farms, shops, processors, wholesalers, and restaurants. However, the following steps could also be useful to organizations such as schools, colleges, and hospitals that dispense food as an ancillary part of their operations.

1. Assess vulnerabilities. Every business or organization that is part of the food system must take an honest look at the inevitable impacts of higher fuel prices, and fuel scarcity, on its operations. Examine scenarios based on a doubling or tripling of fuel costs to highlight specific vulnerabilities.

2. Make a plan. Develop a business model that works without—or with continually shrinking—fossil fuel inputs. Then "backcast" from that imagined future condition, specifying time-related targets.

3. Work with government and community groups. Given the fact that government will be developing regulations to reduce fuel use in the food system, and that community organizations will be offering support to local farmers and food shops that spearhead the transition, it makes good business sense to lead the parade rather than lagging at the rear.

4. Educate and involve suppliers and customers. No business is an island. The transition will flourish through strengthened relationships on all sides.

5. Monitor and adjust. For businesses, one obvious and essential criterion of success is profitability. The bottom line will help indicate which adaptive strategies are working, and which ones need work. However, negative financial feedback is no reason to abandon the essential goal of transition.

Individual and Family

1. Assess food vulnerabilities and opportunities. Whether at a family meeting or by oneself over a cup of tea, take a long honest look at your typical monthly food purchases and give careful thought to the implications. How much of your food comes from within 100 miles? How much is packaged and processed? How many meals are meat-centered? Where do you shop? How would you be impacted if food and fuel prices doubled or tripled?

2. Make a plan. Create an ideal food scenario for yourself, including diet, shopping habits, and gardening goals. Then "backcast" a series of time-related goals. Write these prominently on a calendar and attach it to the front of your refrigerator.

3. Garden. Even if you don’t have access to a plot of land, you can still grow sprouts in a jar or a few food plants in a window box. Look for opportunities to contribute work to a community garden. Develop your skills by seeking out gardening mentors.

4. Develop relations with local producers. Even if you have a large garden you probably can’t grow all the food you eat. Rather than shopping at a supermarket, begin to frequent your local farmers’ market, or join a CSA.

5. Become involved in community efforts. Get to know your neighbors and compare gardening experiences with them. Together, form a "tool library" from which members can check out garden tools and gardening books. Organize or participate in planting, harvesting, food-swapping, gleaning, and canning parties.

6. Monitor and adjust. At the end of each month, revisit your plan and revise it if necessary.

Saturday, May 3, 2008

Our World Is Finite: The Implications of Resource Limitations

Posted by Gail Tverberg on "the oil drum"

We all know the world is finite. The number of atoms is finite, and these atoms combine to form a finite number of molecules. The mix of molecules may change over time, but in total, the number of molecules is also finite.

We also know that growth is central to our way of life. Businesses are expected to grow. Every day new businesses are formed and new products are developed. The world population is also growing, so all this adds up to a huge utilization of resources.

At some point, growth in resource utilization must collide with the fact that the world is finite. We have grown up thinking that the world is so large that limits will never be an issue. But now, we are starting to bump up against limits.

What are earth's limits? Are we reaching them?

ED Note by PG: Note that this is an updated version of an article that was run about six months ago. With all of the new folks (Welcome!) around, it seemed like a good time for an article like this. We appreciate your sharing this and all the work from The Oil Drum with the people you care about.

1. Oil

Oil is a finite resource, since it is no longer being formed (at least in any meaningful quantity). Oil production in a given area tends to increase for a time, then begins to decline, as geological limits are reached. Oil production in the United States and north sea has followed this pattern.

Decline in both the United States and the North Sea took place in spite of technology improvements. There is now serious concern that world oil production will begin to decline ("peak"), just as it has in the United States and the North Sea.

The US Government Accountability Office studied this issue, and issued are report in the spring of 2007 titled CRUDE OIL: Uncertainty about Future Supply Makes It Important to Develop a Strategy for Addressing a Peak and Decline in Oil Production. The US Department of Energy also asked the National Petroleum Council to look into this issue. Its report, Facing Hard Truths about Energy, further confirms the importance of this issue.

Exactly how soon the decline in oil production will begin is not certain, but many predict that the decline may begin within the next few years. There is even some evidence that the decline may have begun in 2005.

Even if oil production were not to decline, but simply remain level, there is sufficiently strong growth in demand that the shortfall would be a serious issue. Matt Simmons talks about this issue in his talk at the Houston meeting of the Association for the Study of Peak Oil. Also, a recent report called Lighting the Way: Toward a Sustainable Energy Future by the Interacademy Council states:

Overwhelming scientific evidence shows that current energy trends are unsustainable.

2. Natural Gas

Natural gas in North America is also reaching its limits. United States natural gas production reached its peak in 1973. Each year, more and more wells are drilled, but the average amount of gas produced per well declines. This occurs because the best sites were developed first, and the later sites are more marginal. The United States has been importing more and more natural gas from Canada, but Canadian production is beginning to decline as well. Because of these issues, the total amount of natural gas available to the United States is likely to decline in the next few years - quite possibly leading to shortages.

3. Fresh Water

Fresh water is needed for drinking and irrigation, but here too we are reaching limits. Water from melting ice caps is declining in quantity because of global warming. Water is being pumped from aquifers much faster than it is being replaced, and water tables are dropping by one to three meters a year in many areas. Some rivers, especially in China and Australia, are close to dry because of diversion for agriculture and a warming climate. In the United States, water limitations are especially important in the Southwest and in the more arid part of the Plains States.

4. Top soil

The topsoil we depend on for agriculture is created very slowly - about one inch in 300 to 500 years, depending on the location. The extensive tilling of the earth's soil that is now being done results in many stresses on this topsoil, including erosion, loss of organic matter, and chemical degradation. Frequent irrigation often results in salination, as well. As society tries to feed more and more people, and produce biofuel as well, there is pressure to push soil to its limits--use land in areas subject to erosion; use more and more fertilizer, herbicides, and pesticides; and remove the organic material needed to build up the soil.

Are there indirect impacts as well?

Besides depleting oil, natural gas, fresh water, and top soil, the intensive use of the earth's resources is resulting in pollution of air and water, and appears to be contributing to global warming as well.

Can technology overcome these finite world issues?

While we have been trying to develop solutions, success has been limited to date. When we have tried to find substitutes, we have mostly managed to trade one problem for another:

Ethanol from corn
Current production methods usually require large amounts of natural gas and fresh water, both of which are in short supply. Increasing production may require the use of land which has been set aside in the Conservation Reserve Program because of its tendency to erode. The amount if ethanol produced is tiny compared to our fuel need, but still drives up the cost of all types of food.

Oil from oil sands and oil shale
Oil from oil sands requires large energy inputs, currently from natural gas, as well as fresh water, and creates pollution issues. Oil from oil shale is expected to require even more energy and fresh water.

Coal to liquid and coal substitution for natural gas
"Clean coal" and sequestration of carbon dioxide from coal are not yet commercially available, and are expected to be very expensive if they become available. Thus, coal production is likely to exacerbate global warming and raise pollution levels. If coal is used to replace both oil and natural gas, it is likely to deplete within a few decades, like the natural gas and oil it replaces.

Deeper wells for fresh water
If deeper wells are used, they will requires more energy to pump the water farther. In locations that use aquifers that replenish over thousands of years, the available water will eventually be depleted.

There are a number of promising technologies — including solar, wind, wave power, and geothermal — but the amount of energy from these sources is tiny at this time. Nuclear power also seems to have promise, but has toxic waste issues and is difficult to scale up quickly. A general introduction to alternative technologies is provided in What Are Our Alternatives If Fossil Fuels Are a Problem?

What if we don't find technological solutions?

We can't know for sure what will happen, but these are some hypotheses:

1. Initially, higher prices for energy and food items and a major recession.

If the supply of oil lags behind demand, we can expect rising prices for oil and gasoline and possibly other types of energy. Prices for food may also rise, because oil is used in the production and transportation of food. Recession is likely to follow, because people will cut down on their purchases of discretionary items, so as to be able to afford the necessities. Layoffs will follow. People laid off will find it difficult to pay mortgages and other debt, so banks and other creditors will find themselves in increasing financial difficulty.

2. Longer term, a decline in economic activity.

With fewer resources, economic activity is likely to decline. We will need to find replacements for many products in a relatively short time frame — heating fuel, transportation fuel, plastics, synthetic fabrics, fertilizer (currently made from natural gas), and asphalt, among other things. Living standards are likely to drop, because we don’t have infinite resources for replacing all the things that are declining in availability.

A graphic representation of how this might happen is shown in Figure 3. Real gross domestic product (GDP) gives a measure of how much goods and services the United States is producing in a year, in constant (year 2000) dollars. The 3 per cent trend line in Figure 3 shows the expected growth in real GDP, if growth continues as in the past. Scenarios 1 and 2 show two examples of how limitations on oil and natural gas might impact future real GDP. Scenario 1 shows a fairly rapid decline, starting very soon. Scenario 2 shows a slower decline, starting in 2020. If the downturn is still several years away, we have longer to plan, and a better chance that the decline will be more gradual.

3. Transportation difficulties and electrical outages.

Since transportation generally uses petroleum products for fuel, a reduction in the amount of oil available is likely to cause transportation difficulties. These difficulties may extend to all forms of transportation--automobile, trucks, airplanes, boats, and railroads, to the extent that fuel is unavailable due to shortages, cost, or rationing.

If natural gas supplies decline, electrical outages are likely, especially during high-use times of the year. Electrical outages may also result from interruption of transportation of other fuel, such as coal, to power plants, because of petroleum shortages. Outages may be one time events, or may be planned outages at certain times of the day, to compensate for an inadequacy in the fuel supply.

4. Possible collapse of the monetary system.

This is perhaps the biggest single issue, and the most difficult to understand.

There is a huge amount of debt in the world today. When loans were made, the expectation of the lenders was that the economy would continue to grow as in the past--that is like the 3 percent trend line in Figure 3 above. If this continued growth occurred, people, on average, would be a little better off financially when the time came to pay off their loans than they were when the loans were taken out, so they would have a reasonable chance of paying off the loans with interest. Corporations would continue to grow, and because of this continued growth, most would be able to pay off their debt with interest.

What happens if a scenario like that shown as Scenario 1 or Scenario 2 on Figure 3 occurs? When it comes time to repay the loans, people and corporations will be on average, worse off, rather than better off, than when they took them out. It is likely that many people will be unemployed, and cannot pay back their debt. Companies manufacturing goods that are no longer in demand are likely to be bankrupt, and thus will be unable to repay their debt. Organizations holding this debt, such as banks, insurance companies, and pension funds will find themselves in financial difficulty, because of the many defaults on the loans that are the assets of these organizations.

Two possible outcomes of widespread defaults come to mind. One is that there is so much debt that cannot be repaid that banks, insurance companies, and in fact the whole monetary system fails. The other alternative is that the government guarantees all the debt, so that the institutions do not fail. The latter approach would likely lead to hyper-inflation.

In either event, people and businesses would lose their savings, because money either would either be no longer available (first approach), or would be worth very little due to inflation (second approach). In either event, foreign countries would be unlikely to accept our currency in trade. Simple transactions, such as purchasing food or paying an employee, would become very difficult. Eventually, some approach would likely be found to circumvent these difficulties--perhaps a more barter-based approach--but this would be a huge change from our current system.

5. Failure of economic assumptions to hold.

We have been raised in a world where supply and demand are generally in balance. An increase in demand results in a greater price, which in turn leads to a greater supply. If the particular item isn’t available, substitution is generally available.

Once we reach geological limits, these basic principles seem much less likely to hold. An increase in energy demand isn't likely to translate into greater supply. Distribution of the limited available supply seems likely to reflect considerations other than price, such as rationing and long-term alliances. There may also be military conflict over available supplies.

I talk more about the economic implications of peak oil in a three part series: Part 1, Part 2, and Part 3.

6. Changed emphasis to more local production.

Two factors are likely to encourage local production and discourage international trade. One is the higher cost and/or unavailability of fuels used for transportation. The other is difficulty with the monetary system--either hyper-inflation or complete failure of the system. If there are monetary system problems, other countries are likely to want actual goods in trade, rather than IOUs or money. This requirement is likely to greatly reduce the amount of trade with foreign countries.

Food production is likely to be more localized, since this insures a continuous supply, and reduces the amount of fuel needed for transportation. If there are problems with shortages, people may choose to have gardens, so as to grow a few of the foods they need themselves.

7. Reduced emphasis on debt.

Once it is clear that future production is likely to be less than current production, as in either Scenario 1 or Scenario 2 of Figure 3, it will be very difficult to find any lender willing to provide long term loans, since if the loan is paid back at all, it is likely to be paid back in money that is worth very much less than it was at the time the loan was taken out.

If governments still have debt at this point, they will find it difficult to sell new bonds to replace the ones that mature. Businesses desiring to build new plants may find it necessary to accumulate resources for new plants in advance of their construction. Mortgages may not be available for prospective home owners, either.

8. Reduced emphasis on insurance and pensions.

If there are difficulties with the monetary system, insurance companies and pension plans will be among the hardest hit, since thy take in funds and invest them, and pay benefits later.

It is possible that a limited form of Social Security coverage may continue, but this is by no means certain. If a high level of inflation occurs (see point 4 above), benefits that have been promised to date will be worth very little. If a new monetary system is in place, it will be up to the government at that time to determine the level of benefits. Because total goods and services will be lower in the future (Figure 3 above), benefits to retirees will almost certainly be lower as well.

9. More people will perform manual labor.

As the amount of oil and natural gas becomes less available, more work will need to be done by hand, since the fuels to run machines will be less available. In order to encourage people to take jobs involving manual labor, manual labor will pay better in relationship to desk jobs. Because food is such an important commodity, farming may be particularly highly valued, and may pay especially well.

10. Resource wars and migration conflicts.

If there is is an inadequate amount of a resource (water, oil, natural gas, or food), countries may fight over the limited supplies that are available. Conflicts are likely to spring up regarding areas where resources are plentiful.

Alternatively, people may choose to migrate from an area if resources become less abundant--for example, migration may occur if water supplies dry up, or if land is flooded due to global warming, or if declining oil supplies limit transportation. Receiving areas may not welcome the newcomers, leading to more conflict.

11. Changes in family relationships.

Families are likely to see more of each other, because of reduced transportation availability. Families may work more closely together, tending gardens and running small family businesses. Co-operation may be more highly valued by society. Divorce rates may decline.

12. Eventual population decline.

The food supply produced in the world today is many times greater than the food supply 100 years ago, before oil and natural gas were used in tilling crops, pumping water for irrigation, making fertilizer and pesticides, and transporting food to market. As oil and natural gas become less available, the food supply is likely to decline. Eventually, world population is also likely to decline, reflecting the lower food supply.

Conclusion

We cannot know exactly what the future will hold, if technology is not able to overcome the many issues associated with a finite world, including declining oil and natural gas supply, decreasing fresh water supply, and climate change. Whatever changes occur are likely to differ from location to location, as the world activity becomes more localized.

We tend to think of governments as fairly stable, but these too may change. Countries may subdivide into smaller units. Some have even suggested that groups of states may break away from the United States.

Educational institutions will most likely change. Fewer students will probably attend colleges and universities, and the subjects of interest will likely change. The sciences and agriculture or permaculture are likely to be topics of interest. More students may want to live on campus, if transportation is a problem. Adult education may become more important, as people seek to develop skills for a changing world.

Businesses will also change. Local businesses will become more important, while multinational companies recede in importance. Manufacturing will become less important, and recycling will become more important. Providing necessities will get top priority, while nice-to-have items will not sell well. Barter, or a new monetary system that substitutes for barter, may be the way business is done.

People may choose to live closer to work, or may work at home, so as to minimize costs associated with commuting. Some people may choose to live with relatives or friends, so as to save on utility costs. Eventually, many homes in undesirable locations may be left empty, and the parts of these unoccupied homes that can be used elsewhere will be recycled.

The next 50 years will certainly be interesting ones. Perhaps, with technological advances, some of the potential problems can be avoided. But we will need to work hard, starting now, to develop ways to work around the problems which seem to be ahead.

To Learn More

The Power of Community: How Cuba Survived Peak Oil 53 minute film, available for $20, tells the story of how Cuba adapted to losing over half of its petroleum imports after the collapse of the Soviet Union.

Closing the Collapse Gap: The USSR Was Better Prepared for Peak Oil than the United States Humorous talk by Dmitry Orlov

The Long Emergency: Surviving the End of Oil, Climate Change, and Other Converging Catastrophes of the Twenty-First Century Book by James Howard Kunstler

Discussion Questions

1. What are five things that might improve after world oil production begins to decline? (Hint: Consider exercise, weight problems, family situations, etc.)

2. If there is a decline in oil and gas production, how do you expect the large amount of debt outstanding to resolve itself? Do you think there will be monetary collapse, hyper-inflation, or some other solution?

3. Do you expect that families will have more or fewer children after oil and natural gas production begin to decline? Why?

4. How can businesses prepare for interruptions in electrical service?

5. What types of buildings are best adapted to frequent outages of electrical service? Which buildings are likely to have the most problems?

6. What vocations appear to be most likely to be useful for supporting a family, after oil and gas production begin to decline?

7. What changes might a college make to its curriculum, to better prepare students for the changing world situation expected after production of oil and natural gas begin to decline?

8. In Figure 3, real GDP in Scenarios 1 and 2 are shown as changing in relatively straight lines. Could alternative scenarios have the lines zig-zag or drop suddenly? What real world situations might cause different patterns?

Canarias, más ultraperiférica: ante los límites.


Síntesis: Canarias será cada vez más ultraperiférica, por razones de los límites físicos en el uso de recursos no renovables (combustibles fósiles, metales, minerales importantes, etc), o renovables con tasas altas no sostenibles de extracción (pesca, suelo, etc.). En términos generacionales, a partir de esta década se deberán afrontar – también en los países con mayor renta - precios cada vez mayores por los bienes naturales, causa y no consecuencia de la pugna por recursos. El “precio de las cosas”, influido además por la desvalorización que surge de la “burbuja financiera global”, repercute en generar inflación e hiperinflación, en parte debido a la gran masa monetaria existente (el crecimiento exponencial no ha sido sólo para el consumo de recursos sino también para la creación de dinero), y en parte debido a la creciente demanda para recursos cuya extracción no crece con la misma rapidez. Lo que debe hacer cada espacio geográfico es adaptarse a ese proceso histórico de “alejamiento” y “relocalización”, forzado por una demanda mayor que la de la oferta.

La limitación de la tasa de crecimiento del uso y extracción de recursos naturales obra como condicionante real a la expansión de las economías. En el caso de los lugares del Mundo – como Canarias – donde esa extracción no es directa, sino que se comporta como un espacio que atrae materias primas y, sobre todo, productos elaborados a partir de las mismas, la repercusión de esos “límites del crecimiento” se hace más evidente.

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