Tad Patzek: Face Reality & Educate Yourself

9 July 2012.  What to do?  ASPO-USA.

When I share with people my assessments of where the Earthlings are stumbling rather blindly, my listeners often say: “Oh, you are such a pessimist! What would you do differently?” My short answer is: “Stop, face reality, and think. Facing reality is not pessimism. Do not try to be a better, more obedient sheep, whose sheephood is certified by a Harvard et al. at a huge expense.

For those who have read and understood “Animal Farm” by George Orwell, let me remind you the fate of Boxer, a powerful horse, who dedicated his life to hard labor for the good of others, and was greatly admired by all animals. With his strong muscles and persistence, Boxer created the prosperous Animal Farm, but when his lungs gave out he was immediately sold by the ruling-class pigs to Alfred Simmons, Horse Slaughterer and Glue Boiler.  The semi-literate animals were told that Boxer was being transferred to a hospital and later to a retirement house, where he would be able to rest and enjoy fruits of his hard labor. Only the clever and well-read donkey, Benjamin, was not deceived and tried to warn the naive animals, but he was too slow in convincing his fellow four leggers, and Boxer disappeared from the farm forever.

I often find myself in Benjamin’s position. Whatever I attempt to do is too little too late, and the current generation of pigs – Squealers more precisely – knows even better how to deceive, divide, and control a multitude of the honest, well-meaning and hard-working Boxers in our society; soldiers, for example.

My other advice is: Educate yourself.

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Gail Tverberg (Gail the Actuary)

Gail the Actuary at ourfiniteworld.com and theoildrum.com writes outstanding columns on peak oil and finance.

There are so many graphs that I’m not going to summarize all of this article, you need to read it!  Most people assume that lower oil prices are good, and even a sign not to worry about Peak Oil.  Gail explains how this can be.

July 6, 2012. Lower Oil Prices – Not a Good Sign!  theoildrum.com

A few reasons why lower oil prices aren’t good:

  • Governments have run up huge deficits to pay for oil and kept interest rates very low to cover up this damage, but in the long run this doesn’t work, as we’re seeing now with the PIIGS (Portugal, Italy, Ireland, Greece, and Spain)
  • Low interest rates aren’t entirely beneficial because pension funds need much larger employer contributions to make good on their promises.
  • Retirees who depend on interest to live off of have less income.
  • Energy companies don’t drill for more oil because they aren’t getting enough money to justify the expense

Oil supply hasn’t risen as much as you’d expect for quite a long time, and although that usually leads to price increases, like it did until 2008, the opposite can happen if recession occurs and decreases demand.  That seems to be what’s happening now, and prices are likely to drop even further as the recession gets worse.

——————-

In this March 28, 2011 article, Gail shows why 11 of the past 12 recessions were caused by rising oil prices

WSJ, Financial Times Raise Issue of Oil Prices Causing Recession

 

 

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Nicole Foss Podcasts and Miscellaneous

Nicole Foss, at theautomaticearth.com, writes about the intersection of Peak Oil and the economic system.

Podcasts

Nicole Foss – How I Prepared My Home for Peak Oil

Harvard recently wrote a study that got a lot of coverage and convinced some people, like George Monbiot, that Peak Oil isn’t an issue to worry about because of all the unconventional sources.  Below is my summary and bits of Nicole’s July 8, 2012 response Peak Oil: A Dialogue with George Monbiot

Because the coming financial collapse will be as bad if not worse than the Great Depression due to the enormous size of the bubble, demand will drop and attention to Peak Oil will diminish.

We’ve used the cheap and easy to access fossil fuels, so what’s left will be awfully expensive in BOTH financial AND energy cost.

“During the period of financial crisis, deflation and deleveraging, weak demand will buy us some time, but at the cost of setting us up for a supply crunch later. The period of sharply falling prices will kill investment in the energy sector, because the cost of production will fall less quickly than prices, meaning margins will be squeezed. Both physical and financial risks will be much higher”.

It will be hard for energy companies to borrow money for drilling since these are long term projects and financial collapse will mean that there’s a lack of credit to be had.   Financial collapses have knock-on effects, such as letters of credit becoming hard to get, and not enough money spent on energy infrastructure, causing supply problems later on.

If there’s social unrest, people may destroy some of the energy infrastructure as well, reducing supply even further.

“When supply and demand become tight, what transpires is not a simple price spike, but an exaggerated boom and bust dynamic. This has been underway since 2005/06. The first full cycle unfolded from 2005/06 to 2008. The second began in 2008/09 and will probably end with a price bottom relatively early in this depression with a resurgence of military demand, given that oil is liquid hegemonic power”.

“That should feed into the 3rd cycle, which should send prices sharply higher in real terms, if not to a new high in nominal terms. This price volatility, against a backdrop of severe economic contraction, upheaval and fear is leading towards a profound societal change, most likely a significant period of involuntary loss of socioeconomic complexity”.

“The hype surrounding shale gas has crashed the price to the point where it is on the verge of putting producers out of business. Natural gas in North America appears to have bottomed, while the perception of glut in unconventional oil, combined with weak demand and a lack of appropriate infrastructure for internal North American sources, is set to undermine oil prices considerably.

Tar sands projects will be under acute threat under those circumstances – not imminently, but over the next five years or so. Once one cannot make money from some combination of artificial input/output price disparity, public subsidy and the ability to socialize externalities, then EROEI becomes the defining factor, and the EROEI for tar sands is pathetic.

While I agree that oil men do not base decisions on EROEI, ultimately EROEI will determine their ability to make money, and that is their driving motivation. Finance can only temporarily allow people to ignore thermodynamics.

EROEI effectively determines what is and is not an energy source for a given society (ie to maintain a given level of socioeconomic complexity). Unconventional fossil fuels are caught in a paradox – that their EROEI is too low for them to sustain a society complex enough to produced them.

They can only be produced for the relatively short period of time that the complex society built on conventional sources continues to maintain its current capacities, but as the conventional sources disappear, and that society can no longer support itself, the ability to undertake all the activities required for unconventional production will be lost. The hype has no foundation.

We have been living in a major departure from reality in many ways, as always occurs during bubble times, but those times are coming to an end. Instead of overshoot, we are headed for undershoot, and we are not going to like it”.

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William Rees

Professor at the University of British Columbia’s School of Community and Regional Planning (SCARP) He is the originator of ‘ecological footprint analysis.’ He is a Fellow of the Post-Carbon Institute and a Founding Fellow of the One Earth Initiative.

23 June 2012. The Way Forward: Survival 2100. CounterCurrents.

Industrialized world reductions in material throughput, energy use, and environmental degradation of over 90% will be required by 2040 to meet the needs of a growing world population fairly within the planet’s ecological means. Business Council for Sustainable Development (1)

It’s not as if we’re unaware of the problem. Symptoms were already so persistent two decades ago that a proclamation by many of the world’s top scientists warned that “a great change in our stewardship of the earth and the life on it is required if vast human misery is to be avoided and our global home on this planet is not to be irretrievably mutilated.”(2) This assertion was echoed a dozen years later by the Millennium Ecosystem Assessment’s no less urgent warning that “human activity is putting such a strain on the natural functions of the earth that the ability of the planet’s ecosystems to sustain future generations can no longer be taken for granted.”(3)

One might think that humanity’s best science would be enough to stimulate a decisive policy response, but the feeble effort so far has done little to stem the cumulative cascade of dismal data. No national government, no prominent international agency, no corporate leader anywhere has begun to advocate in public, let alone implement, the kind of evidence-based, visionary, morally coherent policy responses that are called forth by the best science available today.

On the climate front, the first six months of 2010 were the warmest ever recorded, and 2010 tied with 2005 and 2008 for hottest year in the instrumental record. (This while we should have been experiencing modest cooling—the world is just emerging from the longest solar minimum in decades.) Earth and paleoclimate scientist Andrew Glikson posits that the world may be experiencing the fastest climate change in 34 million years. Atmospheric CO2 concentrations are rising at 2+ parts per million by volume per year (ppmv/yr) and the rate is increasing. Already, at 392 ppmv CO2 and 470 ppmv CO2 equivalent (CO2e) (read: a level of greenhouse gases equivalent in climate forcing to 470 ppmv of CO2), the atmosphere/ocean system is just below the 500 ppmv CO2e upper stability limit for the Antarctic ice sheet.(4)

Some climate scientists are now stepping into the policy arena. Kevin Anderson and Alice Bows argue that the world will be hard-pressed to stabilize greenhouse gases at 650 ppmv CO2e, which implies a 50 percent chance of a catastrophic 4°C increase in mean global temperature, the desertification of much of the world’s habitable land mass, dramatically rising sea levels, and hundreds of millions of climate refugees by the end of the century. Indeed, unless we can reconcile economic growth with unprecedented rates of decarbonization (in excess of 6 percent per year), avoiding this increase will require a “planned economic recession.”(5)

Of course, climate change is just one symptom of generalized human ecological dysfunction. A virtual tsunami of evidence suggests that the global community is living beyond its ecological means. By one measure, the human “ecological footprint” is about 2.7 global average hectares per person (gha/capita), yet there are only 1.8 gha/capita on earth. The human enterprise has already overshot global carrying capacity by about 50 percent and is living, in part, by depleting natural capital and overfilling waste sinks.(6),(7)

Coming to Grips with Reality

In theory, Homo sapiens is uniquely equipped to confront this self-made crisis. Four critical intellectual and emotional qualities distinguish people from other advanced vertebrates. Humans have an unequaled capacity for evidence-based reasoning and logical analysis; the unique ability to engage in long-term forward planning; the capacity to exercise moral judgment; and an ability to feel compassion for other individuals and other species.

As noted above, despite decades of hardening evidence, mainstream global society nevertheless remains in policy paralysis, stymied by cognitive and behavioral barriers to change that have deep roots in both human nature and global society’s culturally constructed economic growth fetish.(8)

But what if mounting public pressure (think Occupy Wall Street) or a series of mini-climate catastrophes finally overwhelms these barriers? Assume the world community becomes fully motivated to deal effectively with biophysical reality. Now the question becomes, What would truly intelligent, forward-thinking, morally compassionate individuals do in response to available data, the historical record, and ongoing trends?

Survival 2100

In a more rational world, political leaders might come together in a special forum to acknowledge the nature and severity of the crisis and to establish the institutional and procedural basis for a worldwide “Survival 2100” project.(8) This initiative would formally recognize (a) that unsustainability is a global problem—no nation can achieve sustainability on its own; (b) that unsustainability springs, in part, from the failure of a global development paradigm that is based on integration and consolidation of the world economy (globalization), deregulation, and unrelenting material growth; (c) that the failed paradigm is a social construction, a product of the human mind; and (d) that this is good—it means that the model can be deconstructed, analyzed, and replaced. In effect, the metagoal of Survival 2100 would be to rewrite global society’s cultural narrative to achieve greater social equity and economic security in ways that reflect biophysical reality.

The major elements and themes of the new story are, in some respects, self-evident. The practical goal of Survival 2100 would be to engineer the creation of a dynamic, more equitable steady-state economy that can satisfy at least the basic needs of the entire human family within the means of nature. (“Steady-state” implies a more or less constant rate of energy and material throughput compatible with the productive and assimilative capacities of the ecosphere.(9) Contrary to simplistic criticisms, a steady state is anything but static. Innovation will be more necessary, and necessarily more creative, than ever.)

Clearly the economic policy emphasis would have to shift from efficiency and quantitative growth (getting bigger faster) toward equity and qualitative development (getting truly better). Indeed, the steady-state economy would be a smaller economy. Eliminating overshoot requires a 50 percent reduction in global fossil energy and material throughput. And to address egregious inequity, wealthy countries will have to reduce their consumption by up to 80 percent to create the ecological space necessary for justifiable growth in developing countries. Implementing an equity-oriented planned economic contraction in turn requires that the underpinning values of society shift from competitive individualism, greed, and narrow self-interest—all sanctioned by the prevailing narrative—toward community, cooperation, and our common interest in surviving with dignity.

The emotive rationale for such a developmental about-face is captured in the last phrase above. Global change is a collective problem requiring collective solutions. Individual actions produce inadequate, even trivial improvements; no individual, no region, no country can succeed on its own. Perhaps for the first time in history, individual and national interests have converged with the collective interests of humankind. Governments and international organizations must therefore work with ordinary citizens to devise and implement policies that serve the common good on both national and global levels. Evidence abounds that failure to act in ways that reflect humanity’s shared interest in survival with dignity will ultimately lead to civil insurrection, geopolitical tension, resource wars, and ecological implosion.

The magnitude of the required value shift is daunting but manageable given sufficient resources. The world community will have to agree to fund worldwide social marketing programs to ameliorate “pushback” and bring the majority of citizens on board. Public reeducation is necessary both to inform ordinary citizens of the nature/severity of the crisis and to advance a positive vision for the future that will be more attractive than the future likely to unfold from maintaining the status quo. (Those who dismiss such broad-scale social learning as social engineering should remember that the denizens of today’s consumer society already represent the most thoroughly socially engineered generation of humans ever to walk the planet, and billions are spent every year to ensure that they remain wedded to the status quo.)

Essential Steps Forward

One thing that has passed its “best before” date is the contemporary cult of consumerism. The material ethic is spiritually empty and ecologically destructive. A sustainable society, by contrast, will cultivate investment and conserver values over spending and consumption.

A sustainable conserver society would also abandon predatory capitalism with its unbridled confidence in markets as the wellspring and arbiter of all social value. Unsustainability is quintessential market failure. Society must relegitimize public planning at all levels of government. We need selective reregulation and comprehensive extramarket adaptation strategies for global change.

A necessary first step would be to acknowledge that globalization encourages the externalization of ecological and social costs (think climate change). Many goods and services are therefore underpriced in the marketplace and thus overconsumed. As any good economist will acknowledge, government intervention is legitimate and necessary to correct for gross market failure. Indeed, resistance to reform makes hypocrites of those who otherwise tout the virtues of market economies. Truly efficient markets require the internalization of heretofore hidden costs so that prices tell consumers the truth.

Consistent with the concept of true-cost economics, Survival 2100 would recognize the need to

end perverse subsidies to the private sector (e.g., to the fossil fuel sector, the corn ethanol industry, and private banks “too big to fail”);

reregulate the private sector in the service of the public interest;

introduce scheduled ecological fiscal reforms—tax the bads (depletion and pollution) not the goods (labor and capital)—which might require a combination of pollution charges/taxes on domestic production and import tariffs on underpriced trade goods; and

tie development policy to the “strong sustainability” criterion (i.e., maintain constant, adequate per capita stocks of critical natural, manufactured, and human capital assets in separate accounts).

This final point requires that we learn to live on sustainable natural income, not natural capital liquidation. Society must therefore

implement “cap-auction-trade” systems for critical resources such as fossil fuels (i.e., place sustainable limits on rates of resource exploitation, or waste discharges; auction off the exploitation rights to available capacity; and use the rents captured to address subsequent equity issues);

revise systems of national accounts to include biophysical estimates of natural capital stocks and sinks in support of such a system; and

replace or supplement gross domestic product with more comprehensive measures of human well-being.

 

Survival 2100 would also require that society unravel the increasingly unsustainable eco-economic entanglement of nations induced by globalization. Without becoming isolationist, nations should strive for greater self-reliance. In the service of “efficiency,” unconstrained trade allows trading regions to exceed local carrying capacity with short-term impunity, while increasing the risk to all by accelerating waste generation and depleting remaining reserves of natural capital. In the process, this creates mutual dependencies that are vulnerable to accelerating global change, energy bottlenecks, and geopolitical instability. The world and individual nations should therefore revise or abandon World Trade Organization rules and similar regional trade treaties (e.g., NAFTA). In place of these agreements, we instead need economic plans and accords that also foster local economic diversity and resilience. “Trade if necessary, but not necessarily trade” is a suitable mantra. Nations should therefore

develop deglobalization plans to reduce their dependence on foreign sources and sinks (i.e., reduce a nation’s ecological footprint on other nations’ ecosystems and on the global commons);

simultaneously relocalize (i.e., reskill domestic populations and diversify local economies through import displacement);

generally increase national self-reliance in food, energy, and other essential resources as a buffer against climate change, rising scarcity costs, and global strife; and

invest in rebuilding local/regional natural capital stocks (e.g., fisheries, forests, soils, biodiversity reserves, etc.) using revenues collected from carbon taxes or resource quota auctions.

Economic contraction and massive structural change inevitably have adverse social effects. Consistent with the principles of community solidarity and cooperation, as well as society’s shared interest in the peaceful resolution of the sustainability conundrum, Survival 2100 would explicitly renew the social contract and repair holes in the social safety net. This would include

a return to more progressive taxation policies encompassing income, capital gains, and estate and corporate taxes;

recognition that a negative income tax may be necessary to assist low-income families through the transition;

using the tax system and related policies to promote a cultural shift from private capital accumulation to investment in public infrastructure (e.g., transit, community facilities) and human development;

designing and implementing new forms of social safety nets to facilitate peoples’ transition to the postcarbon economy in which obsolete, unsustainable “sunset” industries are phased out (e.g., coal-based electricity generation);

implementing job-training and job-placement programs to equip people for employment in emerging “sunrise” industries (e.g., solar energy technologies);

capitalizing on the advantages of a shorter work week and job sharing to improve work-life balance (self-actualization); and

implementing state-assisted family-planning programs everywhere to stabilize/reduce human populations.

Conclusions: Can Survival 2100 Fly?

The forgoing is only an introduction to the kinds of policies implicit in a Survival 2100–type project, but it is sufficient to show that sustainability does, indeed, demand what many scientists (and even politicians) have been asserting for decades. We are engaged in a genuine paradigm shift—the abandonment of the beliefs, values, assumptions, and behaviors underpinning the status quo and their replacement by an alternative development paradigm. The good news, of course, is that the alternative offers a more economically secure, ecologically stable, and socially equitable future for all than does staying our present course.

The bad news is that there will be strident resistance from those with the greatest stake in the status quo, from people who reject global change science, from extreme libertarians, from those who worship at the altar of the marketplace, and from anyone who regards regulation and government—particularly in the international arena—as the spawn of the devil (e.g., factions of the U.S. Republican and Tea Parties who “repudiate sustainable development and describe the global effort to achieve it as ‘destructive and insidious’” and who regard UN agencies and various NGOs as anti-American conspiracies).(10) More generally, planned economic contraction hardly resonates with the times. Indeed, if the basic science of global change is correct, resistance to change may well be the greatest threat to the future of global civilization and overcoming it a more difficult task than implementing the transformation itself.

And failure is possible. As anthropologist Joseph Tainter reminds us, the most intriguing thing about complex societies is the frequency with which their ascent to greatness is interrupted by collapse.(11) Collapse on a global scale, however, would be unprecedented. Should H. sapiens fail in efforts to implement something like Survival 2100, evolution’s great experiment with self-conscious intelligence will have finally succumbed to more primitive emotions and survival instincts abetted by cognitive dissonance, collective denial, and global political inertia.

But if we succeed … !!

References

1.Business Council for Sustainable Development (BCSD). Getting Eco-Efficient. Report of the BCSD First Antwerp Eco-Efficiency Workshop, Geneva (November 1993).

2. Union of Concerned Scientists (UCS). World scientists’ warning to humanity [online] (UCS Cambridge, MA, 1992). www.ucsusa.org/about/1992-world-scientists.html

3. Millennium Ecosystem Assessment. Living beyond our means: natural assets and human well-being (statement from the board) [online] (2005). www.maweb.org/en/BoardStatement.aspx

4. Glikson, A. Trends and tipping points in the climate system: portents for the 21st century (draft report) [online] (2011). www.countercurrents.org/glikson241111.pdf

5. Anderson, K & Bows, A. Reframing the climate change challenge in light of post-2000 emission trends. Philosophical Transactions of the Royal Society A [online] 366, 3863–3882 (November 2008). doi:10.1098/rsta.2008.0138.

6. Rees, WE in Encyclopedia of Biodiversity 2nd edn (Levin, S, ed), Ecological footprint, concept of (Academic Press, San Diego, in press).

7. WWF. Living Planet Report 2010. (World Wide Fund for Nature, Gland, Switzerland, 2010).

8. Rees, W. 2010. What’s blocking sustainability? Human nature, cognition, and denial. Sustainability: Science, Practice, & Policy [online] 6(2), 13–25 (2010). http://sspp.proquest.com/static_content/vol6iss2/1001-012.rees.pdf

9. Daly, HE. Steady-State Economics 2nd edn (Island Press, Washington, 1991).

10. Roberts, N. Paranoid GOP sees global conspiracy in U.N. and small nonprofit. Care2 [online] (February 7, 2012). www.care2.com/causes/paranoid-gop-sees-global-conspiracy-in-u-n-and-smal….

11. Tainter, J. The Collapse of Complex Societies (Cambridge University Press, Cambridge, 1988).

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Inequality goes back to the Stone Age

28 May 2012. Inequality Dates Back to Stone Age: Earliest Evidence Yet of Differential Access to Land. ScienceDaily. Hereditary inequality began over 7,000 years ago in the early Neolithic era, with new evidence showing that farmers buried with tools had access to better land than those buried without.

Professor Bentley said: “Our results, along with archaeobotanical studies that indicate the earliest farmers of Neolithic Germany had a system of land tenure, suggest that the origins of differential access to land can be traced back to an early part of the Neolithic era, rather than only to later prehistory when inequality and intergenerational wealth transfers are more clearly evidenced in burials and material culture.

“It seems the Neolithic era introduced heritable property (land and livestock) into Europe and that wealth inequality got underway when this happened. After that, of course, there was no looking back: through the Bronze Age, Iron Age and Industrial era wealth inequality increased but the ‘seeds’ of inequality were sown way back in the Neolithic.”

R. Alexander Bentley, Penny Bickle, Linda Fibiger, Geoff M. Nowell, Christopher W. Dale, Robert E. M. Hedges, Julie Hamilton, Joachim Wahl, Michael Francken, Gisela Grupe, Eva Lenneis, Maria Teschler-Nicola, Rose-Marie Arbogast, Daniela Hofmann, and Alasdair Whittle. Community differentiation and kinship among Europe’s first farmers. Proceedings of the National Academy of Sciences, May 29, 2012

 

 

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Skip the meat and wine, pass the root vegetables (all 7+ billion of you)

I don’t seriously think this is a solution, but if you’re in a climate where sweet potatoes can be grown, they’d be a valuable addition to your home garden.

Will Oremus. 12 Jun 2012. I Think, Therefore I Yam When farmland is scarce, will we all eat roots and tubers?  Slate.com

Since Thomas Malthus, alarmists have been pointing out that the world has a finite amount of arable land, whereas its human population keeps growing. Common sense would seem to dictate that eventually there won’t be enough farmland to feed everyone, and catastrophic famine will ensue.

The incredible pace of technological innovation has staved off that eventuality for hundreds of years,…Yet the world’s food future may be shakier than ever. It’s not because of the absolute number of people or even the amount of available farmland, but because of what those people eat and how that farmland is used. In short, there’s enough land to feed the world—but not enough to feed the world Big Macs. That’s a problem: every pound of edible beef takes 20 pounds of grain to produce. Give a man a 12-ounce porterhouse and you feed him for a day; give him a pound of grain and you can feed a dozen other people for a day, too. (Raising meat also requires five to 10 times as much water as growing grains, using up a resource that may prove even scarcer than land.)

In a 2009 study, the Food and Agriculture Organization estimated that production would have to rise 70% by 2050 to meet the world’s needs.  Even if we developed all of the world’s remaining arable land—much of it in Brazil and other Latin American countries—we’d have to wring twice as much productivity from every acre of land under cultivation, not likely because of declining water resources and  intensive farming practices are degrading the world’s topsoil, raising the possibility that usable farmland will actually become scarcer in future decades. Climate change could exacerbate the problem, as droughts turn what today is arable land into desert. (Taking off on the concept of “peak oil,” agriculture alarmists have labeled this specter “peak soil“).

If that happens, people may have little choice but to eat less meat. What would they eat instead? Vegetables are crucial to nutrition, but they aren’t the most potent energy sources. Grains are better, but … they’re not at the top of the list in terms of the amount of nutrition they provide per unit of land. That honor goes to roots and tubers like garlic, sunchokes, and sweet potatoes.

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Blackouts

Richard Duncan’s Olduvai theory predicts the fall of civilization (Olduvai cliff) will begin in 2012 (ending in 2030) with permanent blackouts worldwide, starting with brownouts and temporary blackouts, and then finally the electric power networks themselves will expire.

Although fracking is delivering plenty of natural gas now (essential for electricity production in many states), natural gas fracking wells deplete within 1 or 2 years, leading to an endless “red queen’s race” need to drill exponentially more wells to keep up the same production.  When the financial system fails, or the energy to drill is more than the energy obtained, this all ends.

Blackouts mean unreliable refrigeration.  And the cool chain of food production from getting lettuce refrigerated with 2 hours of picking to it’s final delivery at the grocery store will break down somewhere along the way (including natural gas delivery trucks not having fuel).

Blackouts are the end of civilization because electricity is essential to services that keep us alive — clean water, sewage treatment, and so much more…

D. Fogarty. 4 Jun 2012. Nuclear, coal power face climate change risk-study. Reuters.

* Risk of power cuts rises in coming decades as world warms
* Falling river flows, higher water temps main threats

Warmer water and reduced river flows will cause more power disruptions for nuclear and coal-fired power plants in the United States and Europe in future.  The likelihood of extreme drops in power generation, with either complete or almost-total shutdowns, is projected to almost triple.

The authors predict that coal and nuclear power generating capacity between 2031 and 2060 will decrease by between 4-6% in the United States and 6-19% decline in Europe due to a lack of cooling water.  Thermoelectric power plants supply more than 90% of electricity in the USA and 40% of the nation’s freshwater usage.

Coal, nuclear and gas plants turn large amounts of water into steam to spin a turbine. They also rely on water at consistent temperatures to cool the turbines.. A spike in river water temperatures can affect a plant’s operation.

Disruptions to power supplies are already occurring. During warm, dry summers in 2003, 2006 and 2009 several power plants in Europe cut production because of restricted availability of cooling water, driving up power prices.

A similar event in 2007-2008 in the United States caused several power plants to reduce production, or shut down for several days because of a lack of water for cooling and environmental restrictions on warm water discharges back into rivers, the study said.  The study projects the most significant U.S. impacts at power plants inland along major rivers in the Southeast.

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Super Weeds resistant to GMO pesticides are taking over millions of acres

Coombs, Amy. May 20, 2012. Revenge of the Weeds. Plant pests are evolving to outsmart common herbicides, costing farmers crops and money.  the-scientist.com

Please read the above article, below are some excerpts:

Weeds are developing resistance to glyphosate—the most common herbicide on the market.  Glyphosate-resistant weeds now infest more than 17 million acres nationwide

  • Alberta Canada: the kochia shrub has taken over at least 2,000 acres.
  • Tennessee: 1 million acres of cropland have been taken over by Palmer amaranth.
  • California: hairy fleabane has invated vineyards.

Many of these plants are also often able to resist other pesticides.

The chance that a single mutation will confer herbicide resistance is 1 in 100,000, making the likelihood of a double resistant mutant less than 1 in a trillion. Early industry-sponsored research suggested resistance to glyphosate was particularly unlikely because large mutations in the herbicide’s target, the EPSPS enzyme, would render it dysfunctional, killing the plant before it could reproduce.

“The claims made were naïve, and resistant weeds have indeed developed,” says David Mortensen, a weed scientist at Pennsylvania State University. “When a chemical is applied to such a wide area—to nearly all soybean and cotton, and a big percentage of corn—the selection pressure is too intense.”

Indeed, glyphosate use has increased dramatically, from the 4 million or so pounds that were applied to corn in 2000 to 65 million pounds last year, with use on cotton and soy fields also climbing.  To help farmers spray glyphosate directly over fields without harming crops, Monsanto released Roundup Ready soy and canola in 1996. Genetically engineered cotton and corn soon followed, and by 2001, the GE crops spanned millions of acres. This is when resistant weeds made their debut.

“Glyphosate has been around since the 1970s, but resistant weeds didn’t become a serious problem until the herbicide was packaged with genetically engineered crops,” says Mortensen.

Masters of survival

Weeds can’t grow wings or run away, so in order to survive harsh environments, they have developed diverse, generalized adaptation responses.

The rise of the resistant

If the situation wasn’t bad enough already, it appears to be snowballing. Weeds in nine different countries have independently developed resistance to multiple modes of action. Some stubborn survivors can now survive most of the chemicals used by farmers, and the infestations are spreading.

 

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Changing energy markets and U.S. National Security. House hearing 2011

House 112-89. December 16, 2011. Changing energy markets and U.S. National Security. House of Representatives Hearing. 69 pages.

Excerpts follow:

Edward R. Royce, California.  Energy has become a national security issue in the United States. And one of the realities that we have to explore is the impact that energy has on so much of the trade issues, terrorism issues, even the nonproliferation issues.

We compete with China. It is going to impact jobs in the United States if energy costs go down in China as a result and if energy costs go up in the United States. So we have an opportunity. The United States has this opportunity, if you read the financial press, of being a net fuel exporter if we can access the oil sands from Alberta.  If we go forward with the Keystone pipeline. For the first time in 60 years our country would have the opportunity to be independent of the current circumstances where we depend upon the OPEC cartel, where we shift our dollars, our petro dollars into that market. And we should ask ourselves, at this point in time, are we better served recirculating those dollars, sending money to an ally, Canada.  We can continue with that trade imbalance with respect to the OPEC cartel or we can have our dollars stay at home, not being shipped to Saudi Arabia and Venezuela.

You can have American jobs if the U.S. Government and State governments will assist. There is a reason why unemployment is under 4 percent in North Dakota, and that is because of the booming energy sector there, that is because the administration has yet to find a way to shut that down. But not only does that benefit North Dakota, it is also benefiting Pennsylvania and other States.

I am going to go back to the Keystone pipeline, a 1,700-mile extension that would transport 830,000 barrels of oil per day from Alberta to our refineries here rather than in China. By the Chamber’s estimate—we know that the estimate of 20,000 direct jobs— by the Chamber estimate it is 200,000 indirect jobs in the United States. Yet we face delay after delay and now this suggestion of delay until the next election. Well, the Chinese are not waiting and if the energy isn’t piped to Texas refineries and refineries throughout the Midwest it is going to go instead to China.

The difficulty is that China has already invested $10 billion in Canada’s oil sands. Canada’s Prime Minister, as a result of this decision by our President, has already said the necessity of making sure that we are able to access Asian markets for our energy products is underscored by this delay.

Gerald E. Connolly, Virginia.   According to the EIA, the primary reason our dependence on foreign oil will decline is the adoption of aggressive vehicle efficiency standards, which will increase corporate average fuel economy standards to 54.5 miles by the year 2025. A projected increase in domestic oil production also will make a contribution

Proponents of the Keystone XL pipeline have argued it will increase U.S. access to Canadian oil. While this position has intuitive appeal, it deserves further examination. Five major oil pipelines already transport this oil derived from Canadian tar sands into the United States. These pipelines now terminate in Oklahoma, Illinois and Michigan, providing much of the United States with an ample supply of tar sands derived oil. In fact industry analysts note that these pipelines have produced an oversupply of oil in some parts of our country, creating low gas prices for some Americans at diminished oil company profits. The Keystone pipeline will provide an export outlet for Canadian oil, actually reducing supply in the Midwest by allowing oil companies to sell at higher priced markets elsewhere in the world.

While Canadian oil companies might increase their profits from selling oil overseas, such exports come at the expense of American consumers and American national security. If we are in conceptual agreement that there is a relationship between domestic oil supply and national security, then perhaps we should acknowledge that hemorrhaging oil overseas would undercut those benefits.

Proponents of the pipeline have argued it will create jobs. I ask unanimous consent to enter into the record a Washington Post Fact Check article noting that many job estimates offered by prominent elected officials have been wildly exaggerated. In reality the pipeline likely will produce at most some 6,000 annual temporary construction related jobs and as few as 50 permanent jobs. Compared to the half million public sector jobs that have been lost in the recent recession and nascent recovery, this is an anemic job boost at best. Irrespective of whether one is a climate change science denier or accepter, surely all of us could agree that additional oil transported by the Keystone pipeline should stay in the United States and absent legal guarantees likely will not.

Bill Johnson, Ohio.  You know, the lack of stability surrounding our energy markets today and the potential for even greater instability in the near future will not only continue to stunt the growth of our economy, it will jeopardize our national security. By importing oil from nations such as Saudi Arabia and Venezuela, the West is funding the spread of terrorism and foreign activism that stands in stark contrast to our foreign policy objectives.

Brad Sherman, California. Energy really comes down to two separate issues and that is how do we generate electricity and how do we move our vehicles. It is moving vehicles that has been the national security crisis because the world hasn’t found a better system yet.

I look forward to hearing from our witnesses chiefly as to how we are going to propel our vehicles without propelling to greater power the enemies of the United States, and finally I want to echo the gentleman from Virginia that a pipeline that bypasses America’s Midwest markets and takes oil to ports in the United States for possible export may not be the best way to assure our national security.

Mr. Neelesh Nerurkar, Specialist in Energy Policy, Congressional Research Service

Energy-intensive economic growth in developing countries has raised global energy demand in recent years. Economic growth is the main driver of energy demand. Energy production has been unable to keep up with this demand at previously prevailing prices. This contributed to rising energy prices, particularly for oil, and gave rise to energy security and economic concerns. Energy production is capital intensive. Projects have long lead times and can face policy and geopolitical constraints.

Oil prices fell with the global economic downturn in 2008 but have rebounded. Demand from developing countries has pushed global oil consumption to new highs in 2010 and 2011. Higher prices in turn have motivated investment, technology development and policy incentives, which have contributed to increasing energy supplies particularly from new, complex or expensive resources around the world.

A number of examples come from the United States and elsewhere in the Western Hemisphere; for instance, U.S. tight oil and shale gas production, U.S and Brazilian ethanol production, Brazil’s offshore pre-salt resources and Canada’s oil sands.

Turning to the oil market, the world consumes 88 million barrels a day of oil and related liquid fuels. Forty percent of that is met with oil from OPEC, which includes major oil producers in the Middle East, Africa and South America. The world’s largest non-OPEC oil producers are Russia and the United States. The United States is also the world’s largest oil consumer and largest importer. Net imports meet 45% of U.S. oil consumption, but this is down from a peak of 60% 2005. Net imports have declined by 4 million barrels a day in 6 years. Nearly half these declines can be attributed to lower consumption, a result of the economic downturn, and higher oil prices. The rest is due to higher domestic production of oil and other liquid fuels, particularly onshore crude oil and ethanol.

Among the largest declines in U.S. production have been in Alaska and California.

The oil market is globally integrated and oil market events anywhere can affect prices everywhere. For example, even though the United States imported little oil from Libya, the crisis there contributed to higher oil costs here whether that oil was imported by ship, by pipeline or produced at home. Foreign oil market disruptions could continue to affect U.S. oil prices even if the U.S. were to produce as much it consumed.

Robert McNally, President of the Rapidan Group, on Changing Energy Markets and US National Security.

Oil is the only major energy commodity we import and lies at the center of our national security concerns.  Our energy security is and will remain strongly linked to trends and developments in the global oil market, not just our import share. We are and will remain vulnerable to price shocks caused by tightening global supply-demand fundamentals and geopolitical disruptions anywhere in the global oil market. And the strategic importance of the Persian Gulf region and its enormous, low-cost hydrocarbon reserves is likely to grow in the coming decades as Asia taps them to fuel growth. Our geopolitical and homeland security interests will remain closely bound to the security of the Persian Gulf region, the sea-lanes to and from it, and the ability to prevent Gulf countries from spending their windfalls on threats to US and global security.

It must not be overlooked that the world urgently needs new productions just to offset declining production in mature fields. The global oil industry needs to find an amount equal to two-thirds of existing conventional production, or 47 mb/d, in coming decades just to offset declines in mature fields. This is in addition to the new oil needed to meet demand growth in Asia and the Middle East.

Ethanol accounts for about 10% of gasoline, and EIA projects all biofuels will rise from 4% of liquids supply in 2009 to 11% by 2035.

While higher US and hemispheric production can and should help fill the gap, OPEC and the Persian Gulf producers hold the bulk of the world’s low-cost, proved reserves (70% and 55%, respectively).

Foreign policy makers should take into account three global energy market changes that will pose large challenges to our energy and economic security.

The first is voracious growth in demand for energy, as well as for other natural resources, particularly from densely populated, fast-growing Asia, especially China and India. Achieving modern living standards in developing countries is impossible without consuming large amounts of dense, storable, reliable, and affordable energy. By these measures, fossil fuels are and will remain far superior to alternatives, especially in transportation. Unfortunately, no large scale, commercially viable alternatives to oil exist or are visible on the horizon. The US and other developed countries have made massive investments in oil fields, pipelines, terminals, refineries, tanks and dispensing stations in past decades. And rising Chinese, Indian and other Asian and Middle Eastern economies are starting to do the same.

Second, China and India are going to become tremendously dependent on flows of oil from the Middle East. The International Energy Agency projects China’s oil import dependence will rise from 54% in 2010 to 84% in 2035, and India’s will rise from 73% to 92% over the same period.3 The lion’s share of these imports will come from the Middle East. This is going to make China and India extremely concerned about protecting their access to Gulf supplies and sea-lanes, which is already a strategic concern for the United States.

Third, oil prices are going to gyrate more wildly than in the past as Saudi Arabia and OPEC’s ability to prevent price spikes erodes due to reduced spare capacity. This transition is overlooked but just as important as the first two noted above. The world oil market is leaving the relatively stable OPEC era and entering a new “Swing Era” in which large price swings rather than cartel production changes will balance global oil supply and demand. The Swing Era portends much higher oil price volatility, investment uncertainty in conventional and alternative energy and transportation technologies, and lower consensus estimates of global GDP growth. Ironically, Western governments and investors will miss OPEC, or at least the relative price stability OPEC tried to provide.  

In summary, soaring Asian energy demand, sharply increasing Asian dependence on the Persian Gulf, and wild oil price gyrations pose major challenges to US energy security and foreign policy.

What is the future role of OPEC? What happens to price stability?

The changing role of OPEC, with its implications for oil price stability, is the most important, and so far overlooked, feature of global energy markets. It will have enormous consequences for US economic and foreign policy, especially in our bilateral relations with Saudi Arabia, as noted further below. In short, soaring global demand and constrained supply growth is causing OPEC to lose its spare capacity cushion and therefore its ability to stabilize oil prices. While intuitively OPEC losing control may seem like a good thing, it actually means global oil prices, and therefore our pump prices, are going to swing much more wildly in the future, at times high enough to contribute to recessions as they did in 2008.

As a commodity, oil exhibits what economists call a very low price elasticity of demand. In plain English, this means supply and demand are very slow to respond to price shifts. Oil is a must-have commodity with no exact substitutes; when pump prices rise, most consumers have little choice in the near term but to pay more rather than buy less. And on the supply side, it takes years to develop new resources, even when the price incentive to do so rises sharply.

Since the beginning of the modern oil market, producers have tried to mitigate the tendency of oil prices to swing wildly. Standard Oil, the Texas Railroad Commission and the “Seven Sisters” (major western oil companies) succeeded at stabilizing prices by controlling supply, most importantly by holding spare production capacity back from the market and using it to balance swings in supply and demand. The 1967 Arab oil embargo did not lead to a major oil disruption or price spike, partly because the United States had spare capacity in reserve and increased production to make up for lost Arab producer exports. The 1973 Arab oil embargo did lead to an oil price spike, mainly because the year before – in March 1972 to be exact – the United States ran out of spare capacity.

OPEC took over control of the global oil market from the US and the Seven Sisters in the early 1970s. Since the mid-1980s, OPEC’s main tool to stabilize prices has been holding and using spare production capacity. If demand jumped unexpectedly or if supplies were suddenly disrupted, OPEC producers with spare capacity, especially Saudi Arabia, would release more oil, reducing the need for prices to swing in order to balance supply and demand.

But the years 2005-2008 marked the first time spare capacity ran out in peacetime since 1972. As in 1972, the reason was demand was racing faster than production. But today, no new cartel waited in the wings to satisfy global crude appetites. In 2008, market balance was achieved by sharply rising oil prices along with the financial crisis. While many in Washington, Paris, Riyadh, and Beijing publicly blamed speculators, energy experts and economists pointed instead to strong demand for a price inelastic commodity running up against a finite supply.

Going forward, OPEC will still be able to influence how and when oil prices bottom. It can and will likely still take oil off the market to keep prices from falling or to raise them, as it did in late 2008 and 2009.

But OPEC’s ability – really, Saudi Arabia’s ability – to prevent damaging price spikes has eroded. Therefore a replay of 2005-2008 is more a question of when than if. Global GDP growth remains oil intensive. When it picks up (and there are many macroeconomic risks currently, so the timing is uncertain), net non-OPEC supply growth is not expected to rise fast enough to meet incremental demand, requiring OPEC producers to increase production. OPEC is not investing enough in total production capacity to meet demand growth and still maintain the 4-5 mb/d spare capacity buffer needed to assure market participants it can respond to disruptions or tighter than expected fundamentals by adding supply. Saudi Arabia, the main spare capacity holder, says it will hold only 1.5 to 2.0 mb/d of spare capacity, and most other OPEC countries hold little if any back in spare.

As OPEC falters, the price mechanism will return to balance the market through demand destruction, enforcing the iron law that consumption cannot exceed production. Even if our import dependence declines, we will still be vulnerable to price gyrations that are very harmful for consumers and producers and will bedevil economic and foreign policy making.

What role do/should energy markets play in U.S. national security policy? In U.S. defense posturing?

Even if our import dependence falls, the US will still have a vital national security interest in the Persian Gulf region. Instability or disruptions in the Gulf will be felt quickly and directly at the pump in the US. Gulf producers will earn billions of dollars in revenue, and the US has an interest in seeing that those dollars do not finance terrorism or other threats to our security. And the US will need to ensure no country can use oil as a weapon or threaten vital trade routes and chokepoints.

While the US must find ways to share the costs, burdens, and responsibilities for protecting the global energy commons, our interest in preventing a regional or external hegemon from dominating the Persian Gulf will remain as vital in the next thirty years as it was in the past. The Carter Doctrine and its Reagan corollary must remain cornerstones of our energy security doctrines. The Carter Doctrine states: “An attempt by any outside force to gain control of the Persian Gulf region will be regarded as an assault on the vital interests of the United States of America, and such an assault will be repelled by any means necessary, including military force.” And its Reagan corollary extends the policy to include hegemonic threats to our Gulf allies by hostile regional powers, like Iran.

It will be especially important to repair and strengthen the fraying US relationship with Saudi Arabia. The relationship will likely loosen somewhat as Saudi Arabia and other Gulf producers see future sales growth and profits in Asia instead of the western hemisphere. But something bigger is at stake: The grand bargain whereby the US provides Saudi Arabia protection from regional and global adversaries in return for Riyadh ensuring stable oil supplies and prices. This grand bargain has served our national and economic interests, and mitigated occasional wars and disruptions in the region.

At present, each side is less certain the other can uphold his end of the bargain. If, as noted above, Saudi Arabia can no longer prevent oil price spikes from damaging the economy, it becomes less important in global affairs and US foreign policy. And if the US can no longer protect Saudi Arabia from a nuclear, belligerent Iran, then Riyadh’s interest in cooperating with us in many areas, including counter-terrorism and regional security, could decline.

Vulnerability of current and future energy markets to terrorism

Terrorists understand the vulnerability of energy infrastructure.  One consequence of low spare capacity is that any disruption, even of a relatively small size, can lead to an oil price spike. We saw this earlier this year in Libya, when the world lost about 1.7 mb/d of supply, equal to about half of total OPEC spare capacity. Prices jumped about $15 per barrel, helping to push gasoline prices here up to $4.00 per gallon and thereby hurting family budgets and economic growth.

What role does energy play in China’s foreign policy? What can be done to check China’s energy development in the western hemisphere?

China’s leaders are preoccupied with finding resources to supply its voracious growth, including energy resources. As its oil imports increase rapidly, China has followed an energy strategy similar to our policies over recent decades. As the US did forty years ago, China is reacting to the prospect of high and rising dependence on imports by building strategic stocks and implementing fuel economy and other efficiency standards. China is also fostering the growth of globally competitive energy companies and diversifying its sources of energy. And it is developing political relationships and strategic capabilities to protect its investment and supply lines.

China’s energy security policies could pose major indirect threats to our national security if Beijing concludes it can and should ignore our national security interests when engaging with foreign producers. This is of concern with Sudan, Venezuela, and especially Iran.

The Energy Information Administration (EIA) estimates US shale gas production has increased twelve-fold over the last decade, now amounting to 25% of total production. EIA projects shale gas will rise to 47% of total production by 2035. Whereas a few years ago we faced the prospect of importing increasing amounts of liquefied natural gas (LNG), we are now permitting export facilities. This new supply holds the potential to revitalize our chemical industry and economically depressed regions of our country, use more natural gas in electricity generation, and possibly fuel natural gas vehicles (though the cost of converting car and truck fleets and fueling infrastructure to natural gas would be very high and the transition would be long, making it impractical except in some centrally-fueled commercial fleets).

Even if we didn’t import a drop from the Middle East, our vital national interest there would remain. The Middle East and the Persian Gulf is and will remain the world’s most important energy region. As of 2009 it held 56% of global proven oil reserves, nearly all of those in the Persian Gulf.

With a higher market share and higher prices, Middle Eastern oil producers are going to earn trillions and trillions of dollars in revenues. We must remain engaged in that region partly to ensure that windfall is not spent to threaten us or our allies.

Another interest is to make sure that China and India’s soaring dependence on Middle East oil flow, mentioned earlier, does not lead to strategic competition or conflict. The International Energy Agency sees China’s import dependence headed over 84 percent and India’s over 92 percent by 2035.

U.S. foreign policy can and should aim to share the costs, burdens and responsibilities of protecting the Gulf and sea lanes with other friendly and capable importers. Such cooperation exists to some extent already, such as with multi national anti-piracy patrols. But for the foreseeable future only the United States can play the role of guaranteeing the stability of the Persian Gulf. And this brings

Gal Luft, Executive director, Institute for the analysis of global security & Adviser, U.S. Energy Security council.

Oil’s inordinate strategic importance

The vulnerabilities associated with oil dependency do not stem from the magnitude of petroleum imports or consumption but rather from oil’s status as a strategic commodity. Oil’s strategic status does not stem from the electricity sector – today only 1% of U.S. electricity is generated from oil and only 1% of U.S. oil demand is due to electricity generation – but from its virtual monopoly over transportation fuel. Transportation underlies the global economy and for the most part, our automobiles are blocked to fuels not made from oil. As long as this remains the case, those who control oil will enjoy inordinate power over global commerce and by extension the global economy. Petroleum today occupies the strategic ground that salt did many years ago when it dominated food preservation. Salt deposits conferred national power and wars were even fought over their control. Salt’s status as a strategic commodity ended with the invention of alternative ways to preserve food like canning and refrigeration.

The lion’s share of global oil reserves are controlled by a cartel with 79% of global conventional oil reserves are controlled by the OPEC cartel which by its very nature as a cartel is engaged in a deliberate effort to manipulate production in order to maximize the revenue of its member regimes. In terms of control over assets, OPEC is second to none. At $100 a barrel the value of its proven reserves is more than double the market capitalization of all the world’s publically traded companies combined.

The Arab Spring has exacerbated the situation. Hoping to avoid the fate of Egypt and Tunisia, Persian Gulf regimes of Saudi Arabia, Kuwait and the UAE showered their subjects with gifts and subsidies which increased their budget obligations significantly. Saudi Arabia alone almost doubled its $154 billion 2011 budget, committing $129 billion in salary hikes, subsidies and increase in pensions. Given that the primary income of these regimes is petrodollars, the bill for keeping the Persian Gulf monarchies in power is now being footed by every American. According to the Institute of International Finance, before the recent handouts were announced Saudi Arabia needed oil to sell for $68.50 a barrel to keep its budget balanced. The expensive response to the protests increased the breakeven price the Saudis need in order to balance their budget to at least $110 in 2015. The premium on the price of oil exacted by the increase in Gulf social spending has already added in 2011 about 35 cents to the price of a gallon of gasoline Americans had to pay at the pump or roughly $6 per fill up. Since oil price affects everything we buy from food to plastics, saving the House of Saud added roughly $1,500 annually to the expenditures of the average American family. At the very same time Americans are engaged in a heated debate about cutting entitlement programs at home, we are forced to fund more and more social programs aimed at keeping Middle Eastern dictators in power.

The need for high oil prices is not unique to Saudi Arabia. As Russia’s population dwindles, and the output of its newer fields fails to offset fast decline at mature deposits, Russia’s economy will growingly depend on high prices to meet its budgetary obligations. Contrary to popular belief, Russia is much more of an oil exporter than a gas exporter. In 2010, Russia produced 10.2 million barrels a day (mbd) of oil, while consuming only 3.2 mbd. This means that 70% of its crude production was exported or processed into petroleum products, half of which were sent abroad. By contrast, when it comes to natural gas, most of Russia’s production remains at home. In 2010, Russia consumed 414 billion cubic meters (bcm) of the 588 bcm it produced, leaving only 30% of total production for exports. This means that Russia will strengthen its engagement and coordination with OPEC with the aim of keeping prices sufficiently high.

Iran, Iraq, Kuwait, Venezuela and Nigeria will all need a higher per barrel oil price as they move toward a rocky future. With a population of 73 million in Iran and 30 million in Iraq and vast governmental sectors and social expenditures, the two countries need today a breakeven price of $125. By 2025 their populations will stand at 88 million and 45 million respectively. Where will the money come from? There is a limit to the amount of money to be made from exporting carpets, dates and pistachio nuts. There is no limit to the amount of revenues to be made from oil exports.

Massive growth in demand emanating from developing Asia

This month 70 years ago a surprise attack against the U.S. Naval base in Pearl Harbor plunged America into a horrific war against Imperial Japan. In focusing on the intelligence failure that enabled the attack, we have ignored the root cause of the calamity: the strategic importance of oil. Oil has always been the bottleneck of Japan’s industrialization. To satisfy its needs, Japan adopted an expansionist policy, attacking China in 1937 and French Indochina in 1940. The U.S., source of 80% of Japan’s imported oil, responded with a total oil embargo. Japan decided to up the ante and seize the petroleum-rich Dutch East Indies. To do so it was necessary to neutralize the U.S. Pacific fleet and this paved the way to Pearl Harbor. One lesson from the war in the Pacific is that when countries become oil starved they tend to miscalculate and resort to assertive foreign policy. This is something worth remembering today as another Asian power, China, thirsts for oil.

China’s economic growth is currently the life support mechanism of the world economy. Without it we would all be mired in a deep global recession. But this blistering growth creates challenges that need to be confronted head on today. China’s annual vehicle sales jumped about 10-fold in the past decade making it the world’s largest auto market. It is the world’s second largest oil consumer, and according to the recently published 2011 outlook of the International Energy Agency, it is projected to surpass the U.S. as the world’s number one importer by the end of the decade. Beijing’s commitment to “peaceful rise” may be genuine, but in a world competing over resources such good intentions might not be kept. Today, energy is already the main driver of China’s international behavior. Its energy needs have brought Beijing to turn a blind eye to human rights violations in Sudan, Myanmar and Uzbekistan. China’s pursuit of oil and gas resources in the East China Sea and the South China Sea has created tension in its relations with Japan and the members of the Association of East Asian Nations. In the energy rich Caspian Basin, China is strengthening its energy bonds with Turkmenistan, Uzbekistan and Kazakhstan while curbing U.S. influence in the region. In Africa and Latin America, the Sino-American relations may be heading toward a Fashoda moment as China’s neo-colonialism takes root. Last but not least, in the tumultuous Persian Gulf, the U.S. and China are increasingly likely to step on each other toes as the 21st century progresses. China’s energy deals with Iran have already brought Beijing to block U.S. attempts to get the UN Security Council to impose crippling sanctions against Tehran for continuing to develop nuclear weapons.

An oil thirsty China is likely to be one of America’s most pressing international security concerns in the decades to come, and in all likelihood the next president of the U.S. may be called to lead the country during an international crisis sparked by China’s oil pursuits.

Even if the scramble for resources can remain peaceful, the impact on energy markets would be profound. According to U.S. Energy Security Council member John Hofmeister, former President of Shell Oil North America, China’s oil demand is projected to grow from 9 mbd today to 15 mbd by 2015. India’s demand will grow from 4 to 7 mbd and the rest of the developing world would need another one mbd. In total, 10 million new barrels per day, equivalent to another Saudi Arabia, would have to come online in just a few years. No one can convincingly point out where this oil might come from.

U.S. response thus far: More self-sufficiency, less prosperity

Historically, the U.S. has focused on policies that increase either the availability of petroleum or the efficiency of its use. These approaches, while useful, are tactical rather than strategic. Reducing oil demand through fuel economy absent competitive markets in transportation fuels serves to reduce the trade deficit but it is insufficient to change the strategic status of oil. When oil-consuming countries increase their domestic production or reduce net demand, OPEC responds by throttling down supply to drive prices back up. This is essentially what has happened in recent years. Since President George W. Bush’s second term, the U.S. response to the undergoing changes has been mainly in the realm of increasing the fuel efficiency of cars and trucks as well as supply side solutions. Oil’s strategic importance was not reduced by the increase in efficiency or by the expansion of domestic production. During the 2005-2011 period, nearly 100 million new petroleum only vehicles rolled onto U.S. roads, each with a lifespan of nearly 15 years. In doing so, we extended oil’s virtual monopoly over transportation fuel by nearly two decades.

Congress can break oil’s virtual monopoly over transportation fuel by enacting an Open Fuel Standard, ensuring that every new car put on the road is open to some sort of fuel competition. The cheapest way to enable fuel competition is the flex fuel car, which looks and operates exactly like a gasoline car but has a $100 feature which enables it to run on any combination of gasoline and a variety of alcohol fuels made from natural gas, coal and biomass.

200 years ago Napoleon was preparing his army to march into Russia. At the time salt was the most important strategic commodity by virtue of its monopoly over food preservation. Salt deposits conferred national power and wars were even fought over the salt. Salt was the Achilles heel of Napoleon’s war machine. Its status as a strategic commodity ended with the invention of alternative ways to preserve food, like canning and refrigeration. Napoleon’s disastrous Russia campaign was the last time in history that salt played a role in world politics. Today we consume and import more salt than ever. Yet I doubt that anybody in this room is concerned about our salt dependence or where our salt is coming from. Petroleum today occupies the same strategic ground that salt did. With a simple legislative fix, at a zero cost to taxpayers, the U.S. Congress can deliver to oil the same fate that humanity delivered to salt. So let’s get it done.

Mr. ROYCE. In the near future, China is going to make up a third of the world’s oil demand growth, and that need has driven their foreign policy around the world. We have seen that whether it is in Sudan or in Burma or in Central Asia. We have seen some of the consequences because it is all about resources for Beijing. And I would add where China goes corruption often follows in terms of their attempts to have access to this. Now they are in our hemisphere. Now China is here. They have established a working group on energy, and Chinese companies have invested $10 billion in Canada’s oil sands. Now this is my perspective on this, but it seems to me that the Obama administration has laid out a welcome mat for China with respect to the Keystone pipeline project and the decision not to go forward. I base that partly on the reaction in Canada, or if any of the members of the press would like to talk to the Canadian Embassy about this, this really pained the Canadian Government. Just days after the Obama administration announced the Keystone delay, Canadian Prime Minister, Stephen Harper, met with China’s Hu Jintao. Harper was painfully blunt. What he said was, ‘‘This does underscore the necessity of Canada making sure that we are able to access Asia markets for our energy products.’’ That was his quote. And those remarks spurred headlines around the world. Reuters said, ‘‘Asia a priority for Canada after U.S. delays Keystone.’’ And the Wall Street Journal: ‘‘Canada shops oil after pipeline halt.’’ And it is a halt.

And indeed there are now Canadian proposals to dramatically increase the capacity for oil from Alberta to reach the Canadian West Coast in order to be shipped to China. These plans are being set with a view toward diversifying away from an unreliable partner, the United States. And instead they are looking at China. And this is all being planned with a long-term focus on the Chinese market in mind.

Again, we had the study from the Department of Energy that said gasoline prices in all markets served by the Gulf Coast and the East Coast refineries would decrease, including the Midwest. I am perplexed on the question of the Midwest. I assume that part of the answer is that the excess refining capacity must be in the Gulf.

Mr. DURBIN. Correct.

Mr. ROYCE. And the Midwest must be running at full throttle. So if you dictated that all the Alberta oil capacity go to the Midwest refineries they wouldn’t be able to handle the excess; is that the issue here?

Mr. DURBIN. Well, and again, the Midwest refineries are currently processing oil sands crude oil. So yes, this does provide greater flexibility and greater diversity of supply in the Gulf Coast refineries to serve our domestic market.

Mr. ROYCE. So the problem is that you have got limited refinery capacity around the United States. I know that is the problem in California. And we won’t—the government will not allow new refineries to be built easily, past experience. So the question is getting it to the refineries with excess capacity here in the United States to serve the domestic market.

Mr. DURBIN. Correct.

 

 

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How will the American public act when oil decline can’t be denied

[ History and scientists and the obvious fact there are limits to growth have been ignored by the public for the most part. No doubt as a psychological defense, but when things do get bad, people will want a scapegoat to blame, and the potential for a coup and rise of dictators increases.  Lambert doesn’t go very far in how bad things will get, but does mention there are scientists who predict there will be food shortages, the production of goods and their distribution shrink to the point where the population is reduced, as well as by fighting among different social groups, and the political authorities will be unable to govern, resulting in disintegration.

Alice Friedemann   www.energyskeptic.com  author of “When Trucks Stop Running: Energy and the Future of Transportation, 2015, Springer]

Jessica G. Lambert and Gail P. Lambert.  2011. Predicting the Psychological Response of the American People to Oil Depletion and Declining Energy Return on Investment (EROI). Sustainability, 3, 2129-2156

Abstract: Oil has played a crucial role in the United States’ continued but increasingly tenuous economic prosperity. The continued availability of cheap, high energy return on investment (EROI) oil, however, is increasingly in doubt.

If cheap oil is increasingly constrained, how might that impact the American psychological sense of personal and national well-being? We employ general systems theory and certain key paradigms from psychology and sociology to predict the possible societal response to global peak oil and the declining EROI of whatever oil is produced. Based on these frameworks, the following three defense mechanisms seem likely to be employed by individuals and groups within society if and when confronted with stresses associated with declining oil availability. These are: denial of one’s passive helpless state, desire to establish a scapegoat, and arousal of affiliative needs and increased subgrouping. A group’s “survival” is a function of its unified sense of direction and the stability of necessary interdependencies and linkages. We suggest that the ability of the U.S. society, taken as a whole, to adapt to the stresses derived from the declining EROI of oil will increase during periods of moderate stress, and then decline after reaching its maximum ability to cope with stress. The integrity of interdependencies and linkages— power, communication, affect, and goals—must be preserved for continued social unity. Americans will need to acknowledge the reality of biophysical constraints if they are to adapt to the coming energy crisis.

Introduction. Over the course of modern human history, societies have experienced many periods of economic prosperity followed by decline. According to Tainter [1], Odum [2], and Cleveland et al. [3], these economic fluctuations have tended to result, directly or indirectly, from variations in a society’s access to cheap and abundant energy. Events within the past few decades appear to be consistent with these patterns. The last four out of five national recessions, which have been punctuated by financial institution collapse and bankruptcy, have coincided with higher oil prices [4].

The oil industry has historically played and continues to play a crucial role in the U. S. economy, transportation, trade, and in the maintenance of affluence, i.e., “the Western way of life”. There has been more than a three-fold increase in energy consumption in the U.S. over the past 50 years [5]. U.S. economic well-being, national prosperity and stability is inextricably linked to the production and consumption of energy, especially oil [6].

There is a great deal of evidence that we may be entering a period where energy and energy services are much less available to the US and other OECD (Organization for Economic Co-operation and Development) countries. For decades we as a global society have spent an increasingly greater proportion of our global energy on discovering and extracting lower quality, less accessible energy resources [7]. Growth of global oil production has stagnated since 2004 [8]. Energy return on investment (EROI), the ratio of energy supplied to society divided by the direct and indirect costs of its production and delivery [9], provides one means of estimating the cost of oil, one which allows us to measure or estimate how much net oil is available to the economy and might be available in the future [10,11]. While this presumably provides us with more accurate and specific information on future availability than price alone, it does not address the potential effect of changes in oil availability on societal processes. It appears clear that the impending energy crisis will create technological issues and political problems. What is far less clear is the impact on societal processes and more generally on the psychological well-being of citizens.

There are significant differences of opinion amongst various members of the peak oil community as to how individuals and small groups within society are likely to react to the effects of the declining supplies and EROI of oil. Some scientists predict that severe oil scarcity will constrain food production, exacerbate poverty in marginal sub- cultures, limit production and conveyance of essential goods and services, expand rifts among social groups, strain other limited environmental resources, and destabilize the state’s authority and ability to govern [12].

Others believe that very high-energy usage by U.S. society is not required either for prosperity or for American psychological well-being [13]. Nevertheless the most likely scenario is that Americans (and others) will not be happy about any reduction in their lifestyle as measured by traditional economic criteria. Many researchers believe that Western societies will probably experience significant social-psychological disruption and even societal disintegration.

A review of political and social responses to scientific pronouncements of declining oil reserves over the past decades reveals a major disconnect between scientific knowledge of depleting oil assets and societal action. Political leaders, traditional economic analysts [15], and mainstream society have largely ignored or downplayed the implications of diminishing oil reserves.

The rather baffling question is: “Why have repeated scientific warnings of declining oil reserves and depletion of domestic as well as foreign sources been generally disregarded?” How are people and society likely to respond to this decline if it continues or accelerates?

There is substantial literature in the fields of psychology and sociology regarding the responses of people when faced with overwhelming crises resulting from war, pestilence, extended crop failure or resource depletion. We apply this literature to establish an understanding of the probable response of people to stress associated with diminishing oil availability.

We suggest that the American public, as a whole, will experience stress as an outcome of perceived and real resource depletion associated with the decline of oil. These possible psychological and social reactions will not be limited to the individual and small group level but will be exhibited on the societal level.

The more immediate an anticipated threat of danger, the greater the motivation to diminish anxiety by minimizing one’s perception of potential danger or by denying the gravity of the situation [19]. These expressions of denial tend to be manifested by over-optimistic expectations that: (1) Minimize their perception of the probability or magnitude of the potential danger, (2) Maximize the person’s perception of their ability to cope with the danger, or (3) Maximize the person’s perception of their chances of receiving adequate help or gratification from the potentially dangerous situation [19].

New stimuli tend to be perceived and interpreted within the context of the known and familiar and viewed as non-threatening until such interpretations are no longer sustainable. When assessing future danger, there is a tendency to extrapolate past trends linearly and draw upon previous experiences to define present circumstances [20]. Fear reactions are not extinguished; they are merely subdued temporarily until the threat is past or clear evidence of danger is brought into the narrowed focus of attention. Once aware of the reality and magnitude of a significant genuine threat, individuals are forced to reconsider their optimistic assumptions, and they tend to feel and display the fear that they had temporarily managed to inhibit [19]. As long as Americans do not perceive the direct and tangible effect of declining EROI of oil, they can and will likely continue to exhibit minimal response.

Here the question of the pathology of denial arises. At what point shall denial be deemed pathological? Experts in a myriad of fields including ecology, engineering, and economics have been ringing oil resource depletion warning bells since the 1970s American Oil Crisis [21]. To many, the 1973 Arab Oil Embargo served as an indicator of the impact of future global peak oil, and members of the scientific community have been cautioning the world ever since [22]. In the face of seemingly unquestionable evidence to the contrary, why have some “individuals” within U.S. society continued to deny the impending energy crisis?

Although it appears, at this writing, that the majority of Americans have never heard of the term “peak oil” and few are knowledgeable about timelines for possible oil depletion, most have some awareness of the previous (1970s) oil crisis and the possibility of repeating that scenario. We ask, “What will happen when reality sets in, when the world’s oil production peak is finally conclusively verified and we start the slide back down the energy curve? Will we futilely attempt to hold fast to our comforting delusions”?

According to the laws of physics, power in the physical realm is defined as the ability to perform work [24]. The ability of developed nations to perform work: to manufacture, to industrialize, to exploit, create, and maintain a strong economy, is intrinsically linked to access to and utilization of petroleum-based energy [25]. Without energy one is unable to perform work and is therefore rendered powerless. Henri Bérenger in 1921 summarized this position, “He who owns the oil will own the world, for he will own the sea by means of heavy oils, the air by means of the ultra-refined oils, and the land by means of the petrol and the illuminating oils. And in addition to these he will rule his fellow men in an economic sense, by reason of the fantastic wealth he will derive from oil—the wonderful substance which is more sought after and more precious than gold itself.” [26]

The intrinsic link between access to and control of petroleum and military power [27] was clearly demonstrated during World War II. The Allies crippled the German military by targeting fuel supplies that were imperative to German military operations as well as to their industrial sector. Allied forces won the infamous Battle of the Bulge because the Germans simply “ran out of gas” [26]. Germany, with no oil and moderate amounts of coal, had insufficient energy to sustain Hitler’s military machine. The U.S. military also experienced a taste of the impact of insufficient oil on military action when General Patton found his Third Army forces without the necessary fuel to go into battle in Germany [28]. At this time the U.S. was the major global oil supplier, producing approximately 75% of the petroleum used throughout the world [29]. Ownership of this massive piece of the energy pie greatly facilitated the outcome of this war [26]. At the end of World War II, the United States was a world super power and because it owned the oil, it did own the world and did, in an economic sense, rule over its fellow men. Today, the Middle East has 58% of the world’s proven oil reserve [30]. The U.S. no longer commands the oil genie. Although Americans may continue to feel a sense of economic entitlement, this is possibly an indicator of a collective denial of U. S. economic and perhaps even military vulnerability.

The major global energy holders are the Middle Eastern countries, controlling 57.5% of the world’s demonstrated oil reserves [30]. Saudi Arabia, alone, possesses the lion’s share, approximately 20%, of global oil reserves [31]. This large and essential energy reserve provides Saudi Arabia and other Middle Eastern oil producing countries with the ability to influence production, trade, and the day-to-day activities of Western culture [31]. The U.S. energy/power position is even more untenable, because it uses some 22% of the world’s oil consumption while owning only 1.7% [30] of the world’s oil reserves [32]. If oil does translate into political and economic power then nations in possession of abundant and easily accessed oil are truly in positions of power. The power that the U. S. once wielded as a result of controlling the lion’s share of the world’s oil has shifted. Denial of this shift in energy resource power and refusal to accept the accompanying submissive state has required the implementation of a new national definition of power.

Today, the “American way of life” is dependent upon and is unable (with current technology) to exist without accessing energy, mainly oil, from others [33]. To sustain this way of life, the U.S. must now rely upon military strength, diplomatic relations, and a large but deteriorating economic situation to maintain the energy flow from other nations. The U.S. military expenditures in 2009 exceeded $660 billion (USD), which is 43% of the world’s total military budget, an amount greater than the combined expenditures of the other top 15 nations with the highest military expenditures for 2009 [34]. This large military budget provides a strong overseas military presence, one purpose of which is to insure the constant energy flow necessary for the perpetuation of the day-to-day activities and affluence of Western culture.

One measure of power is gross domestic product (GDP), the value of all final goods and services produced within a nation in a given year. U.S. GDP, currently over 14 trillion USD, has been the largest in the world economy since the end of WWII [35]. But here too the production and consumption of the goods and services that comprise the U.S. GDP are fundamentally reliant upon oil supplied from outside the U.S. and increasingly by Middle Eastern countries [36]. The fragile diplomatic relations between the U.S. and Middle Eastern countries, during the post WWII era are fundamentally linked to the maintenance of the world oil trade status quo and U.S. reliance upon a world economic system that requires very large U.S. imports of oil and other basic and also manufactured resources. The Arab Oil Embargo [37], Desert Storm [38], the “9/11” fall of the Twin Towers [36], the Iraq “war” [39] and the War on Terrorism [36] are all direct or indirect manifestations of the U.S. need for foreign oil and the complex responses of both the U. S. and those who supply it [40].

Thus as the U.S. has become increasingly dependent upon imported resources, resource- rich “developing nations” increasingly are able to impact the destiny of U.S. wealth, prosperity and, perhaps, national security. U.S. economic and military reliance on energy from potentially unfriendly foreign sources [41,42] in conjunction with the jarring reality of U.S. susceptibility to foreign attacks, heightened by the 9/11 terrorist attack [43], has made Americans aware of their vulnerability, to an extent that the U.S. populace has hither to not been exposed. In cases such as these, a sense of impotence can shift to a belief, or fantasy, that the necessary power to control or at least influence the desired outcome may be obtainable if sufficient resources are diverted to this endeavor [23]. The demand by the U.S. to envision itself as in an “all-powerful position” has resulted in an exaggerated global military presence designed to influence oil rich nations’ willingness to abide by established Western trade practices favoring U.S. economic prosperity.

In conclusion, we argue that the U.S. military presence in the Middle East was facilitated by a national sense of loss of international power, economic control, and less effective attempt to control the flow of oil. U.S. foreign oil dependence has grown while U.S. production has declined. Thus, the U.S. is, in a sense, replacing its previous world oil prominence with extensive global military prominence.

Scapegoat Mechanism.  Janis’ second defense mechanism, scapegoating, appears initially as a latent attitude rather than overt action. According to Janis, scapegoating is the wish, fantasy, or desire that “if somebody has to suffer, let it be him rather than me” [19]. To accomplish this, intolerance, bias, prejudice, and stereotypes are established enabling those impacted to deflect their frustrations to other people through the imposition of discriminatory injustices and, if necessary, death and destruction to be directed toward the “target” without guilt. These de-humanizing processes not only facilitate the establishment of a scapegoat, they justify actions which are then taken against individuals and groups defined as flawed and inadequate [44]. This use of de-humanizing scapegoating to justify actions taken to bolster one’s own situation is particularly likely among persons exposed to extremely stressful situations where escape is believed to be highly improbable or impossible [45].

Traditionally, conflicts between rich and poor, once played out in the streets of industrial cities, had been subdued by an increase in the wealth of the nation as a whole (i.e., “a rising tide lifts all boats”). Throughout the past five decades, however, the Ginni coefficient (a measure of the equitability of the distribution of wealth) steadily increased, indicating greater inequality between rich and poor. During this period American workers were relatively quiescent about this because their paychecks, even when corrected for inflation, tended to increase.

That general trend has now ceased; take-home income for U.S. working families actually decreased by 8% during the 2000 to 2009 period [46]. This cessation of income growth is almost certainly associated directly or indirectly with a reduction in the growth rate of oil production and the net energy from it. As the growth in oil production diminishes (i.e., the sequence to “peak oil”) and the EROI of oil and other major fuels continues to decline, it seems fairly likely that the economic pie will continue to contract.

As the EROI of global oil declines, it is likely that larger portions of the “working class” population will become impoverished, fewer manufacturing jobs will be available, and the need for manual labor supporting these manufacturing jobs will continue to decline [21]. The global manufacturing landscape has already experienced these trends. Current movement towards mechanization and automation [47] has resulted from the managerial goal of low labor cost and high labor productivity. One effect has been the displacement of workers from relatively high-paying industrial jobs [48].

Industry has turned to international competition and modern petroleum-based technology to meet its goals of enhanced productivity, with fewer workers required to accomplish the same task, and lower production costs [49]. Increased productivity has traditionally allowed both labor and management to make a greater profit, and this had played a significant role in the great wealth accrued by America throughout the middle of the last century. The ongoing trend towards computerization and robotics throughout the U.S. economy (i.e., everything from retail store self-scanning checkout stations to automated manufacturing plants) and movement from domestic production to international labor markets has resulted in higher labor productivity. The downside is a decreased need for labor within the U.S. economy, especially for the industrial manufacturing jobs that once provided enormous collective wealth for the American working class [50]. As labor opportunities dwindle, there is a tendency to seek scapegoats on whom to blame decreased employment prospects.

Recent government campaigns to limit or halt immigration during periods of economic recession and high domestic unemployment [12,51] and periodic campaigns to buy products “made in America” exemplify societal responses to fears of perceived (and real) employment scarcity. Increased apathy and depression manifest during extended periods of increased unemployment and decreased probability of re-employment [52].

The desire to identify and blame the culprits behind the myriad of social and economic problems (related to the issue of decreasing cheap energy) is not limited to issues surrounding imported products and immigration. The American populace and mass media are accustomed to seeking scapegoats from among the leaders of various sectors of society for what they perceive as the inept handling of the multitude of social issues and economic crises facing the country. Failing industry, banking and investment collapse, and government policies and decisions have been subject to government committee investigation, media scrutiny, and become common topics of conversation across the United States [53].

Without regard for the political party currently in power or the decisions currently being made, Americans choose to blame those on Wall Street, the various CEOs and CFOs of industry, the White House, and the politicians on Capitol Hill for the current “state of distress” rather than recognizing the increasing reality of the end of growth of oil and cheap energy [54].

Affiliative Needs and Sub-Grouping. Janis reports a third response to perceived stress: an arousal of affiliative needs (the desire to associate with others that hold or espouse similar ideologies and commonly perceived needs). This group-level defense mechanism is likely to occur during highly stressful moments, especially when the danger of being injured or killed is imminent [19]. This is usually expressed as an unusually high need for companionship and affection among individuals within the group [19] and coincides with a willingness to drop normal psychological barriers. When a large group of people are faced with impending demise or physical damage, these strong affiliative needs tend to result in the formation of sub-groups of individuals of like minds within the larger group [20]. Factions of strangers may experience a sudden sense of unity when exposed to perceived danger. For example, the American citizenry’s reaction to the terrorist attack on the United States on 11 September 2001 and its aftermath exemplifies this psychological and sociological response. America’s momentary abandonment of conventional social barriers e. g., strangers on the streets of New York City embracing and consoling one another immediately following the Twin Tower collapse) and subsequent societal communion reflect strong affiliative needs during a time of perceived stress. Acts of increased patriotism in the form of increased flag purchases, flag flying, and bumper stickers espousing nationalistic phrases clearly support the presence of this phenomenon. A simple comparison of U.S. flag sales for Wal-Mart Stores, Inc. on 11 September 2000 (6400 flags) and 12 September 2000 (10,000 flags) versus those purchased on the day of the attack, 11 September 2001, (116,000 flags) and the following day, 12 September 2001, (250,000 flags) [55] demonstrates an immense and immediate pro-American communal response to the attack and perceived threat of attack [56]. This intense single-minded nationalism eventually shifted to the formation of sub-groups espousing varying levels of anti-Terrorist/pro-American affection as variations in perceptions became apparent [57].

Currently the U.S. retains access to an abundant although expensive supply of oil. Declining oil reserves and production, in both the U.S. and the world, however, will likely lead to a disruption in oil supply and eventual damage to the U.S. social, political, and economic framework [12]. The current popular call for “fiscal responsibility” is an example of societal reactions to this new perceived scarcity. Disruption of the societal framework by interruptions in oil supply, at least in the short-term, is apt to rekindle the intense affiliative needs and subsequent sub-grouping behaviors observed in the aftermath of the 9/11 terrorist attack. It is possible that these affiliative needs and resulting re-kindled like-minded groups espousing a “we versus they” mentality may result in the U.S. exercising diplomatic and military measures to secure resources (oil) necessary to ensure the continued “American-Western way of life”.

 

Net-Effect of Employment of Defense Mechanism. The net effect caused by the employment of these modes of defense is the formation of an illusion of personal invulnerability. Survival of one or more dangerous situations tends to reinforce these feelings [19]. The 1973 Arab Oil Embargo first exposed the precariousness of the US-OPEC oil trade. The resulting severe fuel shortage produced numerous energy saving policies (e.g., reduced speed limits) and technological changes e. g., installation of residential solar hot water panels and production of smaller automobiles). After oil availability and prices returned to previous levels, energy saving efforts and concerns about oil availability waned. Apprehensions were assuaged, American life returned to normal, and speed limits and the size and power of most American automobiles gradually climbed.

This reaction is not unlike that of WWII British air-raid victims studied by Janis. Air-raid victims reported that although they immediately sought shelter upon hearing the first air-raid sirens, they did not continue to do so for subsequent sirens. Even though initially they were quite certain that they were going to be killed, when the all-clear signal went off without incident, they felt secure that they were in no danger. Having survived a previous strike(s), they continued their routine activity during subsequent air-raid attacks; they no longer felt threatened and did not seek shelter even though some were killed [45].

Although the threat produced by the 1973 Arab Oil Embargo was not life threatening, as was the London air strikes, it was the first oil shortage, controlled by foreign nations, experienced by U.S. citizens. The U.S. experienced domestic peak oil production in the lower 48 states in the early 1970s [58]. This coincided with the rise of OPEC, the usurpation of Aramco and other subsidiaries of multinational oil companies by Saudi Arabia and other OPEC states, and the quadrupling of the price of oil in 1973–1974 [59]. This brush with peak oil and oil shortage provides a window into the psychological and sociological responses of the American people to the relatively high intensity stresses of declining oil availability. The subsequent reduction in oil availability resulted in short fuel supplies, higher fuel prices, long queues, and consumer supply limits [60]. What followed were severe recessions, inflation [61], and a loss of jobs [62], in other words a very large stress to our society. The acuity of the ’73 oil crisis led to an almost ubiquitous realization by the American people of U.S. dependence on oil for the maintenance and support of its economic machine.

While the ’73 oil crisis did represent a strong stress event in U.S. history, it is important to distinguish this event from our current circumstances as U.S. oil production at that time accounted for almost 80 percent of domestic oil needs [66]. Additionally, the OPEC embargo accounted for only a 4 percent reduction in U.S. oil consumption [66]. Unlike our current energy situation, the U.S. was perceived as a powerful energy producer and was largely immune to the whims of foreign states.

This decrease in oil availability was generally met with strong opposition. According to Belk et al., most American consumers failed to see themselves and the general public as a major cause of the energy crisis [67]. As President Carter indicated, many Americans “deeply resented that the greatest nation on earth was being jerked around by a few desert states”. [64] The U.S. populace sought scapegoats in OPEC countries, the governments of large oil-importing nations, oil companies, and portions of the public that were perceived as wasting finite energy resources [67]. The choice of scapegoat depended upon an individual’s perception of “personal responsibility” for the energy crisis. Belk et al. found that those individuals that ascribed the collective problem of energy shortages to personal causes were more likely to place the locus of blame on the general public and typically preferred conservation solutions. Conversely, individuals that attributed the collective problem of energy shortages to non-personal causes were more likely to blame oil companies and generally favored government actions against these firms [67]. These stark differences in causal attribution further divided the public along ideological lines and increased sub-grouping phenomena [68].

A Harris poll concluded that a 78 percent majority thought the Soviet invasion of Afghanistan was a strategy to acquire “more influence over the oil-producing countries of the Middle East.” [73] As Yankelovich and Kaagan stated, the American people “felt bullied by OPEC, humiliated by the Ayatollah Khomeini, tricked by Castro, out-traded by Japan and out-gunned by the Russians” [65].

The stress from these energy related circumstances increased affiliative needs and unified the American people toward a common purpose. A poll conducted by Yankelovich, Shelly, and White, found an 80 percent majority believed that the Iranian situation had helped to unite the nation [65]. OPEC, the Ayatollah Khomeini, Castro, and the USSR presented the U.S. populace with ready scapegoats on whom blame for the ’79 energy crisis could be attributed. The disquieting realities of late 1979 and early 1980 left the American people frustrated, angry, and anxious over America’s novel but pervasively submissive role as an international leader.

Faced with the perception of a strategically weaker America, loss of prosperity, and a plethora of failed, impeded, or ineffective foreign policy initiatives, the U.S. populace experienced a decided change that historian commonly identify as a watershed event [65]. President Carter’s remarks are a testament to America’s perceived sense of emergency, “Let our position be absolutely clear: An attempt by any outside force to gain control of the Persian Gulf region will be regarded as an assault on the vital interests of the United States of America, and such an assault will be repelled by any means necessary, including military force” [74]. Carter’s inability to act decisively to effect these sentiments in the eyes of the American people ultimately led to the election and ascension of the Reagan administration; a decidedly different leader charged with redefining America’s posture of assertiveness [65]. The American people had grown tired of foreign bullies and wished to reject their passive submissive state by adopting a tougher stance in the international arena.

U.S. government dealings with “troublesome” OPEC nations, during the decades that followed, have been persistently bellicose, determined to avert the loss of control experienced in the wake of the 1979 energy crisis [75,76]. Conversely, the American people were far quicker to forget the tumult of the late 1970s and early 1980s [69]. When the embargo ended and oil prices returned to previous levels, life returned to “normal”; the instability and volatility of the oil trade was largely ignored or denied by the American populace.

The economic rebound of the late 1980s and 90s left the people of the U.S. with a false sense of invulnerability and in a state of denial regarding the severity of the energy crisis situation and only a vague, lingering, perception that eventually long-term changes would be required to facilitate continuous acquisition of foreign oil [77].

There will undoubtedly be vast differences in the length of time required for various societies, under the stressors associated with the declining EROI of oil, to reach a “breaking-point” or enter a decline in organization and integration. However, if and as this breaking-point is reached, negative effects including confusion, inefficiency, recklessness, apathy, fatigue, hostility, and changes in leadership may be exhibited [80]. We already see some signs of what we perceive as response to declining EROI as the increasing difficulty of governing in the United States at all levels and increasing political hostility of the different political parties.

Communication, potentially the most readily apparent linkage among group members, is likely to be compromised under high degrees of perceived social stress. According to Torrance, the following conditions appear to be the most prominent in weakening communication linkages necessary for survival within the group [80]: (1) Failure of a group member to inform others of what he/she is doing [87], (2) Failure to pool information which would provide a basis for diagnosing the seriousness of the danger and reducing resistance to acceptance of its seriousness [88], (3) Confining communication to dyads or cliques rather than to the entire group[88], (4) Failure to use group judgments in making decisions, and the use of leadership techniques which interfere with this type of communication [89], (5) Power differences which interfere with communication of information needed in decision-making [90], and (6) Unwillingness to disagree in the decision-making process [91].

Applying general systems theory to Torrance’s research, which means assuming that the societal level will be the same as the group level, we suggest that leaders of nations experiencing crisis situations are likely to direct fewer communications to the lower status group: the general populace. Those in positions of leadership will instead probably engage in lateral communication within a trusted leadership group while simultaneously reducing vertical communications directed toward mainstream society.   The result will be that mainstream society will receive limited and delayed information concerning details of the crisis situation.

The establishment of effective communication among intergovernmental groups has, historically, been a common problem in government. Historically, this issue has been exacerbated by the propagation of competing objectives and personal agendas [94]. Recent United States Environmental Protection Agency (EPA) and Pentagon failures to communicate on superfund sites [95] provide an example. A second example of competing agendas and poor communication is the 2010 funding of a 600-megawatt wind energy production venture between U.S. and Chinese energy groups (U.S. Renewable Energy Group, Cielo Wind Power LP, and Shenyang Power Group) in western Texas [96]. Designed to bring renewable energy as well as installation and managerial jobs to the area, this project was stalled by negative press and congressional concerns regarding the manufacturing source (China) of component parts for the $450 million (USD) grant [96]. Many of these communication and agenda issues have been addressed through the formation of Federal government oversight taskforces and workgroups intended to target specific policy and social issues perceived as having overlapping or parallel agency efforts. Still, many groups seeking to maximize their own ability to receive “adequate gratification” from and cope with the impending oil crisis continue to exploit existing divisions amongst Federal, State, and regional agency efforts. Unless these communication and coordination issues are purposefully addressed and a common thread of understanding is reached, communication among groups will continue to be threatened by intra-group and inter-group stress.

Leadership and Power. According to Torrance, during times of perceived crisis, vertical communication tends to decrease and leadership groups typically do not seek decision-making input from lower- status individuals within the group [90]. There is constriction of control and limited downward informational communication to those in lower levels of the social hierarchy, as this is deemed non-essential and perhaps dangerous [97,98].

We suggest that deterioration of hierarchical communication between the leaderships and the “rest of society” will compound any existing stress associated with the declining EROI of oil.

The range of judgments considered by leaders during the decision making process is a function of group members’ willingness to disagree. The correctness of a decision is positively related to the range of judgments considered [91]. Under conditions of extremely structured and consolidated power, low status persons are more reluctant to express their thoughts and opinions for fear of being found in opposition to high status individuals. Inability to communicate true opinions frequently leads to miscalculations in policy decisions and often makes the difference between continued societal unity and societal disintegration [103]. The Third Reich and German anti-Semitic sentiment are eloquently instructive on this point. The anarchy, chaos, and resource scarcity of the post-WWI era lead to changes in the German authority (from Kaiser Wilhelm II eventually to Hitler [104]) and leadership process (Monarchy to Democracy to Fascism [104]). The extreme structure and consolidated power of the Nazi regime following the severe stress of the post-WWI era, coalesced to produce a populous that willingly turned a blind eye to atrocities performed on people they previously called their neighbors. This example, while extreme, demonstrates the complete passivity of people under high degrees of stress when faced with the fear of being found in opposition to authority figures.

Expansion and increased structuring of leadership ( i.e., the systematic hierarchical and horizontal organization of leadership to establish, guide, and direct uniform compliance with group policy) during periods of perceived stress, is evidenced in almost every historically prominent government “power grab”, e.g., Julius Caesar [105], Napoleon [106], and Hitler [107]. Structuring of the government, in these cases, was preceded by widespread societal fears of perceived crisis. Individually, group members typically do not desire expanded leadership and/or additional structuring of leadership [78].

A group’s collective unconscious desire for direction and individual lethargy when faced with the gravity of a crisis situation, colludes to produce a perfect scenario for a political “power grab” and leadership structuring. Under these conditions, democratic processes tend to fail, liberties are eroded, and power is centralized under a central power figure or group. History has a way of repeating itself. Unless constructive changes to current energy policy are formalized and implemented, the United States may experience continued restructuring of leadership and progressive centralization of political power.

A poorly organized effort and lack of clarity of purpose are currently evident in the unplanned development of renewable energy. There is an abundance of government and privately funded research in a sundry of “green” energy arenas with little coordination of efforts or evaluation of their net energy contribution. Experimentation within the transportation industry alone includes everything from ethanol to bio-diesel to hydrogen fuel cells, each of which is highly subsidized, highly subject to hype and rarely analyzed by objective science [111].

Industrial energy research areas include everything from effectively harnessing wind, to capturing solar energy using photovoltaic cells, and from diverting river and tidal currents, to growing algae, corn, and willow biomass. Each area initially promises to “solve” the potential U.S. energy crisis resulting from decline in oil reserves, yet each falls short of the necessary EROI to be considered an alternative comparable to oil [112]. If a nearly comparable solution is not found, disillusionment will likely follow. The uncertainty, engendered by unclear and contradictory communications and goals, will likely result in a breakdown of each individual member’s ability to accurately decipher and predict their current and future circumstances [78]. This may result in unstable group affect (depression, apathy and ultimately surrender into hopelessness) as we face the real possibility that there may not be an effective and efficient alternative to the energy on which we so completely depend [113].

Integration vs. Disintegration.  Hamblin found, “Present in every crisis situation is a solution that requires the cooperation of all or most of the members of the groups involved” [113]. During a crisis situation with no apparent solution, integration does not increase, rather it decreases. As each progressive solution fails, frustration mounts, and individual attempts at survival occur. Groups disintegrate when faced with a threatening situation and the solution involves individual competition. This pattern of evoked responses appears to be based in a simple rational model: if the likely solution to a crisis requires cooperative action, group integration increases. Group disintegration results when the crisis situation appears to either have no solution or the optimum solution requires individual action. According to Hamblin, groups remain together only if there are valid and functional reasons [113]. Society will remain intact only while there is a unified purpose that benefits the society as a whole. If the U.S. continues to dissipate its remaining energy on futile efforts to maintain a “business as usual” mentality, then the American public will squander its remaining opportunities to work together with unified purpose; to prepare for the energy crisis at hand.

Only through the application of unified purpose will the U.S., as a collective, be able to mediate its voracious use of energy and effectively utilize its remaining resources to wean itself from dependency on oil. Abraham Lincoln’s comment appears salient; “You cannot escape the responsibility of tomorrow by evading it today” [117]. The current challenge for the U.S. and other energy intensive, oil driven Western cultures is to develop a shared vision for an energy independent future that: (1) Acknowledges the biophysical constraints of reality, (2) Effectively envisions the true collective objective, (3) Clearly states goals, and (4) Establishes flexible and evolving methods of implementation [118]. We suggests that unified purpose and vision would result in a comprehensive, adaptive, integrated, and biophysically-based process based on a collective understanding for reducing current and anticipated U.S. oil consumption. In practical terms, a unified purpose would provide the U.S. with a social process to determine how to best use existing natural resources, employ sustainable practices, and plan for an “energy independent” future. The actions we take today have the potential to exponentially affect the world of tomorrow. If steps are taken to avert the coming energy crisis and develop a low energy intensive society, we may still be able to avert many, and possibly all, of the above outcomes.

The U.S. has defined its energy security by extrapolating its current and future energy circumstances from an examination of its history. Historically, the U.S. has been capable of producing and procuring, for the last century and a half of rapid economic growth, all of the oil required for the “American way of life”. With few exceptions, it has been able to do so unfettered by the biophysical realities of finite energy resources. As a result, the U.S. populace has generally ignored scientific evidence of depleting oil reserves and remained immersed in the day-to-day minutiae of life. We suggest that, if and when serious oil shortages become a reality, three defense mechanisms: denial, establishment of scapegoats, and an increased need to affiliate are likely to be employed to facilitate the continuance of this American myth of plenty and perception of invincibility.

U.S. foreign policies in the Middle East are manifestations of the interactive effect of all three defense mechanisms. The first defense mechanism is demonstrated as denial of the severity of U.S. dependence on foreign oil from countries with whom it is on less than friendly terms and the impact of this dependency. Continuous and favorable foreign oil trade is necessary for the maintenance of the U.S. and world economic status quo. The sense of and actual vulnerability created by this dependence on favorable foreign oil trade with potentially hostile nations helps establish a second defense mechanism:

the sometimes latent, sometimes active, wish to establish scapegoats on whom aggression can be expressed and blame may be placed. This de-humanizing process facilitates discriminatory injustices and is used to justify aggressive actions taken by the U.S. against individuals, groups and nations defined as flawed and inadequate. Prejudicial stereotypes and cultural intolerance, once established, permits acts of aggression to be perceived as justified and perpetrated with minimal culpability. Individuals holding and espousing similar ideologies and embracing similar stereotypes find themselves drawn to one another. This increased need to affiliate with (the third defense mechanism) and share common opinions, beliefs, and feelings with like-minded people results in the formation of sub-groups such as political splinter groups. This shared sense of unity culminates in a “we/they” mentality, perpetuating stereotyping, scapegoating and aggression. These defense mechanisms work in concert to create an exaggerated sense of invulnerability and a willingness to assert power, in the form of military might, in order to ensure the steady flow of oil necessary to maintain the world economic status quo and a sense of entitlement and justification.

[ My note: Lambert’s predictions ]

We suggest that, despite continued scientific evidence of peak oil, oil depletion, and declining EROI, the U.S. populace will continue to exhibit these psychological and sociological defense mechanisms on a broad societal scale until sufficiently clear, irrefutable evidence to the contrary brings about a shift in perception and changes in actions.

As the gap between increasing U.S. oil consumption rates, declining EROI of oil, and oil depletion expands, demands for government intervention programs (designed to combat growing unemployment and poverty) will probably increase.

At the same time, economic paucity and recession will result in calls for decreased government spending cutting these very programs.

As a result, the division between the “haves” and “have- nots” in American society will likely bolster affiliation within sub-groups on different sides of the issue.

The influence of intense and unabated individual and societal stress created by the inevitable decreasing quantity and EROI of oil will likely adversely impact the interdependencies and linkages that bind society together.

The impact on communication is clear: truncated communication not only separates leaders from their populace, it limits information flow. The result is poor decision-making at a time when quick, adequate analyses of new information and circumstances coupled with clear, concise, uniform communication among all group members is essential.

Faced with seemingly impossible challenges, a dearth of solutions, and unabated stress, leadership groups, the leaders and political party in power are likely to seek expanded influence and increased structure resulting in larger, more centralized political power.

The American populace, driven by fears of economic and social repercussions resulting from oil depletion, will probably experience lethargy and an unconscious desire to be guided by those in positions of power.

The gravity of the impending energy crisis, and the possibility that there may not be an adequate alternative to oil, will likely result in discordance between the American populace and those in positions of leadership.

It is probable that this discordance will result in disillusionment within the populace and expanded and increasingly mistrusted and maligned centralized leadership.

The capacity for the United States to alter its current and projected economic and energy course is dependent upon its leaders’ abilities to formulate and effectively communicate a clear vision and unified purpose in the energy field, establish clear renewable energy goals, commit to a rigorous energy-use reduction plan, prioritize energy research, and implement an energy policy that creates a viable energy future. The American populace will need to acknowledge the reality of biophysical constraints, and embrace a renewable, energy efficient “American way of life”.

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