Book review of Door to Door and the amazing world of transportation

Edward Humes.  2016. Door to Door: The Magnificent, Maddening, Mysterious World of Transportation. HarperCollins.

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

I was in the transportation business for 22 years at American President Lines, where I designed computer systems to seamlessly transfer cargo between ships, rail, and trucks for just-in-time delivery.  Every few weeks I was on call 24 x 7, because if computer systems are down, cargo isn’t going anywhere.

Humes writes about the amazing complexity of transportation in delightful ways that will change how you look at the world around you.

He begins simply, with how a morning cup of coffee has a transportation footprint of at least 100,000 miles.  His 6.3 mile drive to get the coffee is just a small fraction of that journey.  The car itself embodies at least 500,000 miles when you add up how many miles the raw materials for it traveled. And when you add in other miles part of a morning routine — the orange juice, dish soap, socks — you’re talking over 3 million miles of goods moved.

After reading this book, you will appreciate how pizza arrives at your door a great deal more.  At a chain-pizza central distribution center in Ontario, California, 14 big rigs arrive at 4 am every day, 2 of them with Mozzarella in 2,736 15-pound bags traveling 233 miles.  Other ingredients/miles: 936 cases tomato sauce/278, Pepperoni and other meat/1,400,  chicken toppings/1,600, Salt/1,900 and so on.  Empty pizza boxes arrive many times a day from 33 miles away (though the pizza box store got them from 2,200 miles distant).   And that’s just the start of how that pizza eventually arrives at your door.

But pizza is nothing compared to what United Parcel Service does.  I especially liked what UPS manager Noel Massie had to say about how trucks are vital to the economy and our way of life but treated like interlopers on America’s roads. He’d like to see dedicated highway freight lanes—high-speed lanes just for trucks, isolated from passenger traffic—and greater public transportation investment to take cars off the road, making room for those freight lanes and more trucks.   “It’s simple, really. Trucks are like the bloodstream in the human body. They carry all the nutrients a body needs in order to be healthy. If your blood stops flowing, you would die. If trucks stop moving, the economy would die. People have become truck haters. They want them off the road.  People don’t know what they’re asking for.”

Massie is right — if trucks stopped running, tens of millions of Americans would die (i.e.  (1) Holcomb 2006. When Trucks Stop, America Stops. American Trucking Assoc, 2) McKinnon 2004 Life without Lorries, or 3) A Week without Truck Transport. Four Regions in Sweden).

Trucks run on diesel fuel, which is finite. I am flabbergasted that people assume the economy will keep growing and that we can continue to drive cars forever, when conventional oil production peaked in 2005 (90% of oil is conventional).  Conventional oil practically flows out of the ground unaided, unconventional oil is nasty, gunky, distant, difficult to get, and uses so much energy that far less is available to society at large.

On top of that, the transportation that matters — ships, rail, and trucks, use diesel engines, nearly as essential as the fuel they burn due to their energy efficiency (twice as good as gasoline engines) and ability to do work.  Diesel engines can last 40 years and go a million miles.  Indeed, Smil makes the case that civilization as we know it depends on diesel engines ([Prime Movers of Globalization: The History and Impact of Diesel Engines and Gas Turbines (MIT Press)].  Replacing billions of vehicles and equipment with diesel engines before oil starts declining in earnest will be difficult.  We don’t want to throw out the trillions of dollars invested in current vehicles and the distribution system.  Ideally we need a “drop-in” fuel that diesel engines can burn.  Diesel engines can’t burn gasoline or ethanol, and can be harmed by biodiesel, so most engine warranties restrict biodiesel from nothing up to 20% of diesel fuel. Nor can diesel engines run on natural gas (CNG or LNG). Trucks are too heavy to run on batteries, and too expensive to build with dual modes of propulsion (so they can get off the electric line to go to their destination). If overhead electric catenary wires were used, how many more power plants would need to be built?   And not all “trucks” can use them, we can’t string overhead wires over millions of acres of farmland to run tractors and harvesters on, and all the other off-road trucks that mine, log, maintain the electric grid transmission wires, etc.  If the intersection of transportation and energy interests you, I recommend [ When Trucks Stop Running: Energy and the Future of Transportation (SpringerBriefs in Energy)]

Most books, including this one, assume endless growth will continue and discuss ways of reducing congestion. But not to worry — oil and other vital resources such as phosphorus will decline soon enough, because energy and natural resources are finite.  We’ve all been brainwashed to ignore that by the neoclassical economic system which denies such obvious truths as limits to growth.  A book that explains this, and which ought to be the standard economics textbook is  [Energy and the Wealth of Nations: Understanding the Biophysical Economy].  After you read it, you will understand why the economists of today will be considered as crazy as Scientologists and other religious cults in the future [Inside Scientology: The Story of America’s Most Secretive Religion].

 

Excerpts from the book

More than smartphones, more than television, more than food, culture, or commerce, more even than Twitter or Facebook, transportation permeates our daily existence. In ways both glaringly obvious and deeply hidden, thousands, even millions of miles are embedded in everything we do and touch—not just every trip we take, but every click we make, every purchase, every meal, every sip of water and drop of gasoline. We are the door-to-door nation.

The capacity to transport a supercomputer, a desperately needed medicine, or a tube of toothpaste from a factory in Shanghai to a store in Southern California or New Jersey or Duluth—and to do so 20 billion times a day reliably, affordably, quickly, and trackably—may well be humanity’s most towering achievement.

Every time you visit the Web site for UPS or Amazon or Apple and instantly learn where in the world your product or package can be found and when it will thump on your doorstep, you have achieved something that all but the still-living generations of humanity would have declared impossible or demonic.

Costco French Roast consists of a blend of beans from South America, Africa, and Asia, each component shipped by container vessel up to 11,000 miles in 132-pound loosely woven sacks of raw, green coffee beans, some across the Pacific Ocean to ports up and down the West Coast, the rest via the Panama Canal, perhaps the Suez Canal, then on to one of several East Coast ports. The complexities are so great on this routing—based on ship space, season, and the vagaries of rates and departures—that it’s difficult to trace bulk products more precisely than this. The raw beans then travel by freight train or truck (2,226 miles for the Port of Los Angeles portion) to one of the world’s largest blending and roasting plants, located at 3000 Espresso Way in York, Pennsylvania, one of six such plants in the Starbucks empire and the one identified by the company as principally serving Costco. After roasting, blending, and testing to make sure every batch smells and tastes exactly the same no matter how many times a customer buys Costco French Roast, the beans are sealed in plastic and foil composite bags with their own coast-to-coast mileage footprint. Then the packages are stacked on wooden pallets (sourced from all over the nation) and shipped another 2,773 miles back across the country to the Costco depot in Tracy, California, from which my coffee was trucked to my local Costco store. By the time I got those beans, they had traveled more than 30,000 miles from field to exporter to port to factory to distribution center to store to my house—more than enough to circumnavigate the globe.

But that’s not where the coffee mileage stops. There are the components of my German-built, globally sourced coffeemaker, which collectively traveled another 15,700 miles to reach my kitchen. My little bean grinder had a similar triptych. The drinking water I use to brew my coffee comes to my home from a blend of three sources: from groundwater pumped in from local wells about 50 miles distant; via the 242-mile Colorado River Aqueduct; and through the 444-mile California State Water Project, which moves water south from Northern California, forces it 2,000 feet straight up and over the Tehachapi Mountains, then down into Southern California. The fuel and energy required for this third leg exceeds the electricity demand of the entire city of Las Vegas and all its glittering casinos. The electricity that powers my coffee machine runs through a grid festooned with millions of transformers and capacitors, most of which are now imported across 12,000 miles from China through the ports of Los Angeles and Long Beach, a complex that is a veritable city unto itself. The natural gas that fuels the power plants that provide most of the electricity to my coffeemaker is obtained from gas fields in Canada and Texas and sometimes farther through a 44,000-mile network of underground pipelines—North America’s hidden energy transport plumbing.

At this point the collective transportation footprint on my cup of coffee is hovering at 100,000 miles minimum. And that’s not counting the seemingly smallest segment of that journey, my 6.3-mile drive to Costco in my 2009 Toyota Scion xB, which has the most massive transportation footprint of anything I own—and not because I drive it very far. I chose to buy a used vehicle on the theory that a secondhand but fuel-efficient conventional car is greener and less wasteful overall than a newly made hybrid or electric (not to mention a whole lot cheaper), and because we needed something big enough to hold our three greyhounds (which it does, barely, with two humans on board, too). The Scion was built in Japan out of about thirty thousand globally sourced components from throughout Asia and Europe, with one U.S. manufacturer contributing: the tires are from Ohio-based Goodyear, which has factories in Asia as well as the U.S. The assembled car was shipped from Japan to the Port of Long Beach in California, then trucked to a dealership in Southern California (other cars arriving by ship move by train to more distant dealers). The cumulative travels of the raw materials and parts of my car totaled at least 500,000 miles before its first test drive. The gas in its tank is a petroleum cocktail that adds another 100,000 miles to the calculation, as the California fuel mix consists of crude oil from fourteen foreign countries and four states.5 Most of this oil arrives by tanker ships at West Coast ports, then moves thousands of miles around the state and country to tank farms, refineries, fuel depots, and distribution centers via pipelines, railroads, canals, and semitrucks before finally appearing at my neighborhood gas station. Thousands of man-hours and billions of dollars in technology and infrastructure—along with the efforts of countless unsung heroes who pack, lift, load, drive, and track it all—combined to bring that cup of coffee to my lips (and my wife’s nightstand; I’m the morning person in our household). That cup of coffee is a modern miracle, magical and mundane at the same time, though we hardly if ever notice the immense door-to-door machine ticking away, making it happen with product after product, millions of them, each requiring the same level of effort and movement, day after day.

Our true daily commutes, beginning first thing in the morning with the travels of my cup of coffee—and followed by my socks and orange juice and dog food and dish soap—are more on the order of 3 million miles.

We live like no other civilization in history, embedding ever greater amounts of miles within our goods and lives as a means of making everyday products and services seemingly more efficient and affordable. In the past, distance meant the opposite: added cost, added risk, added uncertainty. It’s as if we are defying gravity.

The logistics involved in just one day of global goods movement dwarfs the Normandy invasion and the Apollo moon missions combined. The grand ballet in which we move ourselves and our stuff from door to door is equivalent to building the Great Pyramid, the Hoover Dam, and the Empire State Building all in a day. Every day. It is almost a misnomer to call this a transportation “system.” Moving door to door requires a complex system built of many systems, separate and co-dependent, yet in competition with one another for resources and customers—an orchestra of sometimes harmonizing, sometimes clashing wheels, rails, roads, wings, pipelines, and sea lanes.

We are the proud owners of roads we can no longer afford to maintain, saddling the country with an impossible $3.6 trillion backlog in repairs and improvements to aging roads and bridges—a deficit that grows every year,

How can a country that deploys insanely capable robot rovers to Mars and puts unerring GPS chips in our pockets leave us with two-ton rolling metal boxes to transport one person to work each day—boxes that kill ninety-seven of us every day and injure another eight every minute? Cars are the American family’s largest expense after dwellings, our least efficient use of energy, the number one cause of death for Americans under thirty-nine, and our least productive investment by far. The typical car sits idle twenty-two hours a day, for which privilege Americans, on average, pay $1,049 a month in fuel, ownership, and operating expenses.

These two faces of transit are often viewed and treated as two separate, even competing worlds—the frequently frustrating, in-your-face reality of how we move ourselves, and the largely hidden world of goods movement with its gated marine terminals, secure distribution centers, and mile-long trains with unfamiliar foreign names on the container cars: Maersk and COSCO and YTL. The same Los Angeles–area communities that embraced a billion-dollar bill to add a lane to Interstate 405 have successfully fought off for fifty years the completion of another north-south freeway that would connect the port to inland California with its vast web of warehouses, distribution centers, and shipping terminals. Residents oppose the building of the last five miles of this freeway, Interstate 710, because it is seen as benefiting freight, not people, as if the local Walmart stocked itself. The stream of big rigs flowing from the port instead have to take roundabout and inefficient routes on other freeways, wasting fuel and time—and adding to commuter traffic jams as well, where drivers curse the ponderous big trucks they have inflicted on themselves.

The hidden side of our commute, the flow of goods, has become so huge that our ports, rails, and roads can no longer handle the load. They desperately need investments of public capital that the nation does not seem to have. Yet it’s an investment that must be made, as logistics—the transport of goods—is now a vital pillar of the U.S. economy. Goods movement now provides a greater source of job growth than making the stuff being shipped.

New manufacturing technologies—the science fiction turned fact that is 3-D printing—are pushing in the opposition direction. This “unicorn” technology gives businesses in Brooklyn, Boston, and Burbank the power to manufacture a fantastic range of products—from surgical implants to car parts to guns—and to do it cheaper than a Chinese factory can 12,000 miles away.

The movement of these components does not include the mining, processing, and shipping of the rare earth elements that are so vital to so much of our twenty-first-century technology, or the movement of the vast quantities of energy and water needed to obtain them.

In the end, the iPhone has a transportation footprint at least as great as a 240,000-mile trip to the moon, and most or all of the way back.

The real breakthrough that makes the iPhone possible—along with most of today’s consumer goods, right down to the cheapest pair of boxers in your drawer or the salt-and-pepper shakers (and their contents) on your table—is a breakthrough of transportation.

The fleets of giant container ships that burn fuel not by the gallon but by the ton pose a growing environmental threat, with cargo vessels contributing about 3 percent of global carbon emissions now and on track to generate up to 14 percent of worldwide greenhouse gases by 2050. 15

But beyond their smokestacks, the mega-ships that now dominate cargo movement are threatening the transportation system itself, overloading ports and the networks of rail, road, and trucking that connect them to the rest of the world. The U.S. is running out of capacity at these choke points, with neither the money nor the will to increase it.

The rise of online shopping is exacerbating the goods-movement overload, because shipping one product at a time to homes requires many more trips than delivering the same amount of goods en masse to stores. In yet another door-to-door paradox, the phenomenon of next-day and same-day delivery, while personally efficient and seductively convenient for consumers, is grossly inefficient for the transportation system at large.

And yet the impact of embedding ever larger amounts of transportation in products is often minimized in public discussion, even by businesses that have embraced the business case for sustainability. Certainly they are concerned about fuel efficiency in distribution and shipping—that’s just good business—but the transportation footprint of a manufactured product is often a secondary concern at best. That’s because the most common analysis of a consumer product’s life-cycle—an estimate of its greenhouse gas footprint, which is a proxy for its energy costs—will usually find that the distribution of a product is a much smaller factor than its production. In its public disclosures on the footprint of its products, Apple states that transport accounts for only 4 percent of my iPhone 6 Plus’s lifetime greenhouse gas emissions. Production of the device, meanwhile, accounts for 81 percent of its carbon footprint—twenty times the transportation footprint. Even my use of the phone—mostly by recharging it—overshadows shipping in Apple’s life-cycle reckoning, producing 14 percent of its footprint.16 For a glass of milk, shipping produces only 3 percent of the footprint. For a bottle of California wine, it’s about 13 percent.18 Transportation accounts for only 1 percent of the carbon footprint of a jacket from eco-conscious Patagonia, Inc., even though it’s made of fabric from China and sewn in Vietnam. Production of its petroleum-based synthetic polyester is said to be the main culprit, accounting for 71 percent of the garment’s carbon emissions.

These product-by-product analyses are accurate but often incomplete—and in the end, they can distort the reality of the gargantuan impact of the door-to-door system as a whole. Viewed as a sector, the transportation of people and product is second only to generating electricity in terms of energy use and greenhouse-gas emissions (consuming 26 percent of the country’s total energy and fuel supplies,20 while creating 31 percent of total greenhouse gases).21 Transportation has a larger energy and carbon footprint than all the other economic sectors: residential, commercial, and agricultural, as well as the industrial/product manufacturing sector that figures so prominently in those life-cycle analyses.

Transportation leads all sectors in one unfortunate metric: when it comes to wasting energy, the movement from door to door tops every other human endeavor, squandering 79 percent of the energy and fuel it consumes. Finding ways to reduce that waste presents one of the great economic and environmental opportunities of the age.

Wondering if this problem is about the movement of people in cars rather than products on trucks and trains? The simple answer: it’s both. Proportionately, goods movement has the more intense carbon footprint in the transportation space, with transport by rail, truck, ship, and pipeline together generating about a third of the total transportation footprint. Freight trucks alone spew 22.8 percent of all transportation carbon emissions. Passenger cars account for 42.7 percent, while pickup trucks, vans, and SUVs contribute 17 percent. Given that there are fewer than 3 million big-rig freight-hauling trucks in America out of 265 million vehicles total,23 the fossil-fuel-powered movement of goods has a disproportionately immense carbon, energy, and environmental footprint. Miles matter.

other big recyclables—paper and plastic—degrade during the recycling process, or lose value, or end up costing more than new material, so market forces for repurposing these waste products are mixed at best. Recycled aluminum, however, is a different story: not only is it chemically and physically indistinguishable from the new stuff, but it is beyond cost competitive. Aluminum recycling uses 92 percent less energy than mining and refining aluminum from bauxite,6 and is often done near the end consumer rather than in far-off pit mines, lowering transportation costs and distance.

Much of the aluminum extracted from the earth since the 1880s is still in play, some of it recycled dozens or even hundreds of times.

Because of its light weight and the fact that it does not rust like iron and steel, aluminum is now being touted as the next big thing for reinventing ground transportation. Aluminum is so light (atom by atom it weighs less than many gases) that swapping it with steel in cars and trucks could cut the average vehicle’s weight in half, with corresponding decreases in fuel consumption and carbon emissions.

But it takes nearly twelve years on average for passenger vehicles to enter the big recycling bin known as the scrapyard (and two or three times that for planes, trains, and cargo ships), with about 11.5 million vehicles scrapped annually in the U.S. Therein lies one of the great contradictions in the aluminum story and McKnight’s sweet-spot pitch. Demand for aluminum in the transportation space has exploded—the record 504 million pounds of the metal delivered to automakers in 2014 is projected to rise to 2.68 billion pounds by 201810—but recycling alone cannot yield the required supplies quickly enough. So ever more primary aluminum has to be mined and refined to meet the demand for more efficient cars. This is how aluminum can be at once green and dirty, both a shining example of the “cradle-to-cradle” reuse economy and a coal-soaked, industrial-age relic of primitive extraction, spewing waste and toxins in its wake.

In 2014, worldwide production of primary aluminum topped 53 million metric tons. Smelting that metal required nearly 690.170 gigawatts of electricity16—more than twice the power consumption of America’s largest and most power-hungry state, California. Aluminum smelting uses more electricity than almost any other industrial process; engineers joke that the metal ought to be defined as “congealed electricity.” Alcoa has located most of its smelting operations near sources of hydropower to lower the cost and environmental impact, but globally—particularly in China, with more than half the world’s production—more aluminum is made with dirty coal-powered electricity than anything else. Domestic aluminum smelting in the U.S. alone consumes 5 percent of the electricity generated nationwide.

What this means is that aluminum’s weight advantage over iron comes at a price: iron can be produced from iron oxide in a simple, relatively compact blast furnace; the complex Hall-Héroult process requires literally acres of electrolysis cells and city-scale power plants to produce equivalent amounts of aluminum. The bottom line: a car part made from steel costs 37 percent less than the same part made of aluminum,17 although a life-cycle analysis by the Oak Ridge National Laboratory found that the overall energy and carbon footprint of a mostly aluminum car is less than a standard steel vehicle because of lower operating and fuel costs.18 The calculation changes radically in aluminum’s favor when recycled metal is used.

Because of California’s robust container deposit law, we receive a dime refund for every can we turn in, one reason why the state is the national recycling leader. Only ten states impose container deposits on beverages, however, and this explains why, nationwide, America’s recycling rate compares unfavorably with Europe’s and Japan’s. It’s also why, despite the value of scrap aluminum, 43 percent of aluminum cans used by consumers still end up thrown away instead of recycled.

As a consequence, the only way can makers can achieve the 70 percent recycled content in U.S. soda cans is by importing old cans from elsewhere in the world, mostly Europe. And so the metal in my can of lime seltzer—and every other canned beverage in America—is far better traveled than most of the consumers who buy it, as the industry is forced to outsource the metal from old cans from around the globe to satisfy our thirst. The cost of hauling scrap aluminum cans around the planet might knock some of the shine off the industry’s green credentials, but it still pencils out: even old cans transported from abroad are cheaper and have a lower energy and carbon footprint than pulling that same metal out of the mines.

Instead of questioning the very nature of the can—or the ship or the car or any other staple of the door-to-door world that has become part of daily American culture—the focus is almost always on refining the magic. Make cargo ships twice as big in the space of ten years so they can carry even more stuff door to door—but give no thought to the impact on roads, traffic, and infrastructure when all this extra cargo slams into land. Or make cars lighter with aluminum so they burn less gas and emit less carbon. But don’t question the transportation fundamentals these lighter cars will perpetuate—a country where 57 percent of households own two or more cars,23 all of them spending an average of twenty-two hours a day parked and disused.

Jay Isais is nodding and smiling as the readout comes within a percentage point of the target. He is an unabashed coffee nerd who also happens to run sourcing and manufacturing for the biggest coffee house chain in the U.S. not named Starbucks. He’s the Coffee Bean & Tea Leaf’s senior director of coffee, roasting, and manufacturing—or, in lay terms, the company coffee guy. He literally lives, breathes, and slurps coffee for a living: the company has nearly a thousand stores in thirty countries, and every one of the 8 million pounds a year the company buys is personally chosen by Isais.

What most consumers don’t realize, Isais says, is that when they buy coffee in a big can at the supermarket, it’s already stale before the first cup is brewed—even before the can is opened with its impressive hiss of a vacuum seal released. This is simple chemistry at work: along with its delicious aromas, coffee gives off copious amounts of carbon dioxide for a day or two after leaving the roaster. Stick the java right in a can, and that can will begin to bulge or even rupture from the pent-up gas pressure. Wait until the outgassing slows before sealing the can, and the problem goes away—but so does freshness. This had been the problem with American coffee since early in the twentieth century, when mass production and canning techniques were first applied to what had previously been a commodity sold fresh or even raw to the public.

Before the mass production techniques Henry Ford brought to the automobile were applied to coffee, the product was most often sold in its raw green bean state in the U.S.—the beans having been cleansed of the fruit skin, pulp, and an inner husk called the parchment, but not roasted. Coffee can stay good for up to a year in this state if kept dry and indoors. Consumers would take it home, roast it in a pan or oven, and grind it with a hand-cranked coffee grinder. The drink became somewhat popular in America during the American Revolution. Patriots wanted to supplant their previous favorite, tea, after the Boston Tea Party. Serving coffee represented a statement against British custom and rule. But coffee really took off as an American staple nearly a century later, during the Civil War. It was one of the few luxuries—as well as a welcome stimulant—offered troops on both sides, although only the Union Army had reliable supplies after the first year at war. Hundreds of thousands of men came home from the war hooked on java. Green coffee beans were part of the daily rations given to Union soldiers, who had little roasting kits in their packs or just used cast-iron skillets on the campfires. Some of the government-issue carbines had little grinders cleverly built into the rifle butts, but others just used their regular, solid rifle butts to hammer the beans until they broke up enough to brew.

Before each bag is sealed, oxygen is flushed out with pure nitrogen so the coffee cannot oxidize and spoil inside the bag. In this way, roasted coffee can be kept and retain most of its flavor for months. This is a compromise, as coffee is at its flavorful best twenty-four hours after roasting, Isais says. And yes, he admits, he can tell the difference. But it’s still a vast improvement over the old industrial canning process. The logistics for the Coffee Bean & Tea Leaf are complex: shipments take six to eight weeks to arrive via container from Africa, Indonesia, Central and South America, and Mexico. Two-thirds of the coffee shipments enter the country through the Port of Oakland, which has a preferred rate for certain commodities, coffee among them, and one-third arrives through the Port of Los Angeles.

Cars—all 1.2 billion of them worldwide—may not be the most vital component of our sprawling transportation landscape, or the most economically potent; the goods movement fleets and flotillas hold those crowns.

The price for this convenience is acceptance of vehicles that are nothing less than rolling disasters in terms of economics, environment, energy, efficiency, climate, health, and safety. Our failure to acknowledge the social and real-dollar costs of these automotive shortcomings amounts to a massive hidden subsidy. The modern car could not dominate, or exist at all, without this shadow funding. So what are the failings of our cars? First and foremost, they are profligate wasters of money and fuel: more than 80 cents of every dollar spent on gasoline is squandered by the inherent inefficiencies of the modern internal combustion engine. No part of our infrastructure and daily lives wastes more energy and, by extension, more money than the modern automobile.

There are also the indirect environmental, health, and economic costs of extracting, transporting, and refining oil for vehicle fuels, and the immense national security costs and risks of being dependent on foreign-oil imports for significant amounts of that fuel.

One out of every 112 Americans is likely to die in a traffic crash. Just under 1 percent of us.

The videos are horrifying, one crash after another in which death or major injury was avoided by luck rather than skill

PIZZA

The journey of my son’s pizza starts at 4:00 a.m. in Ontario when the first of fourteen big rigs arrives with the day’s supplies, starting with two truckloads of mozzarella. That’s 2,736 fifteen-pound bags from cheese giant Leprino Foods’ branch in Lemoore, California, 233 miles north and made from milk sourced from California dairies. Another truck arrives with 936 cases of sauce from TomaTek in Firebaugh, California, in the heart of tomato-growing country 278 miles north of Ontario. The Tyson Foods delivery brings pepperoni, sausage, ham, and salami in from the Dallas area, 1,400 miles, and chicken toppings out of Arkansas, 1,600 miles. Presliced onions and bell peppers come in from Boskovich Farms, just 100 miles away in Oxnard, California, while one of the top five toppings, mushrooms, arrives from Monterey Mushrooms in Watsonville, California, 361 miles distant. Flour originates in the wheat belt 1,500 miles away, but the mill that delivers it by tank trunk daily, Ardent Mills, a joint venture of food giants Cargill and ConAgra, is just twenty miles away in Colton. Salt is shipped in from Cargill in Wayzata, Minnesota, 1,900 miles distant, while sugar arrives from Cargill’s Brawley, California, plant, just 163 miles away.

Assorted deliveries of less frequently used toppings—garlic, anchovies, banana peppers, beef strips, and jalapeños—round out the offerings,

Multiple deliveries of empty pizza boxes arrive throughout the day from Santa Fe Springs, 33 miles away, although they’re made by a Georgia company 2,200 miles away, making them the most distant piece of the pizza puzzle other than pineapple. The various ingredients are parceled out to sections of the warehouse that are refrigerated, frozen, or kept at room temperature, where they await loading on outgoing trucks later that day.

The only freshly prepared pizza component is the dough. Everything in the Domino’s supply chain center revolves around the dough-making operation cycle, which begins when the ovens start preheating at 5:00 a.m. Domino’s pizza dough has six primary ingredients that go into one of three giant mixing bowls at the plant. Each mixing bowl holds more than six hundred pounds of dough, consisting of flour, yeast, salt, sugar, water, and oil. A secret “goody bag” with a small quantity of Domino’s proprietary flavors and dough conditioners is dumped in the mix, too, and giant stainless steel beaters go to work kneading the mixture

When the mixing is done, the giant bowl is loaded on a clanking stainless steel lift that raises the dough about eight feet in the air and then overturns it into a cutting machine that extrudes dough cylinders like Play-Doh, dumping them on a conveyor belt. The belt whisks the pasty-looking cylinders to a rolling machine that turns them into balls of dough ranging from baseball to softball size, depending on whether they are for small, medium, large, or extra-large pizzas. The dough balls shoot through a metal detector to make sure no twist-ties or bits of machinery contaminated the dough, then three line workers inspect, flatten, and pack the dough balls into one of the thousands of blue plastic trays that fill the facility in tall stacks.

By 1:30 p.m., the production phase of the day ends with the last dough run, whole wheat pizza dough for school lunches. The daily output: enough dough for 100,000 pizzas. At 2:00 p.m. the loading of the outgoing trucks begins. These are Domino-branded refrigerated big-rig trucks owned and maintained by Ryder and made by Volvo,

The trucks have been plugged in to the supply center’s electrical system and cooling down to 36 degrees all day. Even the loading dock is refrigerated to protect the raw dough. The bulk of each trailer’s interior space is taken up by the towers of stacked blue trays with their 100,000 dough balls, layered and mapped into sections based on the size of the pizza (medium and large are by far the most popular). The other ingredients—cheese, sauce, toppings, golden cornmeal to dust the pizza pans, napkins, and red peppers, in addition to cardboard pizza boxes—have to be crammed in around the all-important dough trays.

At 8:00 p.m., the first of the trucks departs for deliveries to the franchises, continuing in waves through midnight. Each truck has its own geographic area that might have twelve to fifteen stops, ranging from close-in deliveries in the LA metropolitan area, to franchises as far as the Arizona border, the Mexican border, and the ski resort at Mammoth Mountain, the most distant stop at three hundred miles and the only overnight run. The goal is to deliver the goods while the pizzerias are closed. The drivers have keys and put everything away, so the store is stocked and ready to start cooking the moment it opens for business.

We couldn’t be more contradictory about this: More than nine out of ten American voters believe it’s important to improve the country’s transportation infrastructure, and eight out of ten say it’s vital in order for America to stay competitive with other nations. Yet seven out of ten voters adamantly oppose raising the federal gas tax from its 1993 levels.11 Which is why Congress is basically cooking the books with accounting gimmicks to keep the system afloat year to year, deferring critical repairs and modernization projects year after year.

the Empire State Building weighs 365,000 tons. America moves goods equivalent to 46,575 Empire State Buildings door to door every year. If all that was loaded on just standard 53-foot semitrailers, it would require 425 million big rigs to move it, with every truck filled to the legal 80,000-pound limit. That would take about eighty times more trucks than the entire U.S. fleet of registered semitrailers.

Who rules the seas?

Cargo ships. Their purpose is not intimidating enemy targets but actually stocking Target stores, along with every other retailer, business, and home in America. Along with all their thousands of other customers, those cargo ships just happen to deliver 80 percent of the components the U.S. Navy and the rest of the American military relies upon. The Pentagon outsources as much as everyone else. When it comes to the superpowers of global shipping, the U.S. barely ranks as a bit player. In a concentration of power unlike any other sector of the transportation system, six steamship companies, none of them American, control more than half the goods in the world.2 Twenty global companies—most of which have joined forces in four immense ship-sharing alliances—control almost every product traded on earth. This has been the quietest conquest and surrender in world history, one in which the entire United States happily and somewhat obliviously participated because consumers love above all else low prices at the cash register, and there is no question that globalization has delivered that part brilliantly. The miracle of modern logistics and ultra-efficient global transportation technology has made achieving those low prices possible, although beneath the gleaming tech lies the crudest of foundations. All it took was two things: divesting America of its once-mighty cargo fleets and shipyards; and outsourcing a major chunk of consumer goods manufacturing to countries with pay, benefits, environmental practices, standards of living, and working conditions that would never in a million years be tolerated on American soil. The thrill of the checkout-line bargain masks the reality that Americans pay elsewhere for those low prices in the form of shuttered U.S. factories, lower wages, a shrinking middle class, a growing inability to pay for roads and bridges, massive public subsidies of the health and environmental costs of transportation pollution, and a nation—including its armed forces—that can no longer function without massive amounts of Chinese imports shipped aboard Korean-built vessels owned and operated by foreign conglomerates.

Of the six cargo powers that control a majority of global goods movement, Denmark-based Maersk Lines is the leader, at the top in numbers of ships, in cargo capacity, in revenues, in profits, and in constructing the biggest and most advanced cargo ships in the world. Maersk (with subsidiaries in oil platforms, oil drilling, trucking, and port terminal operations) handles nearly 16 percent of the world’s cargo all on its own.  Maersk has partnered in a mega ship-sharing alliance with the Geneva-based Mediterranean Shipping Company—the world’s second biggest container ship line. Together the two companies’ “2M Alliance” control a combined fleet of 1,119 vessels capable of hauling 29 percent of the world’s goods.3 Not a single missile, cannon, or gun bristles from this container ship fleet.

Bunker fuel, it’s called: the cheapest, dirtiest form in common use is up to 1,800 times more polluting than the diesel fuel used in buses and big rigs,15 and little more than a waste product left over after everything else useful is extracted from crude oil. It has the consistency of asphalt; a person can walk on it when it’s cool. The big cargo ships burn so much bunker fuel that they don’t measure consumption in gallons but in metric tons per hour, with the really big ships consuming two hundred to four hundred tons a day. One large container ship burning this type of fuel spews out more sulfur and nitrogen oxides—the precursors of smog and particulate pollution, as well as a major contributor to the ocean acidification that threatens fisheries and coral reefs—than 500,000 big-rig trucks or roughly 7.5 million passenger cars.16 That means just 160 of the 6,000 such mega-ships in service today pump out the same amount of these pollutants as all the cars in the world.

The cargo fleet is also a prodigious source of carbon emissions—about 2 to 3 percent of the global total.17 Although that’s only between a third and a fifth of the global-warming gases emitted by the world’s cars,18 it’s still a big greenhouse gas footprint for such a relatively small number of vessels. If the shipping industry were a country, it would be in the top ten drivers of climate change, and its billion tons of carbon dioxide and equivalents put it ahead of Germany, the world’s fourth largest economy. At current rates of growth, the shipping industry that hauls 90 percent of the world’s goods will be two and a half times its current size by 2050; absent a serious effort to become more energy efficient, it could be generating a staggering 18 percent of global greenhouse gases by then.

Through a very deceptive accounting loophole, none of these big ship emissions “belong” to any one country. They happen in international waters for the most part, and so for the purpose of calculating the greenhouse gas emissions of nations, they simply don’t exist—on paper.  They very much exist in terms of their impact on climate, oceans, and health.

Port of LAX

Each day in predawn darkness, Chavez and her crew of marine information specialists arrive at Angels Gate to chart the approaching parade of cargo vessels, gathering cryptic information received via phone, e-mail, and old-school fax from the world’s far-flung maritime shipping lines. The product of these labors is a master daily schedule for a hundred or more impending ship departures, arrivals, crossings of the two-hundred-mile international limit, and shifts to the marine terminal docks from remote harbor anchoring spots (the waterfront equivalent of the doctor’s waiting room). Once dockside, the mammoth ships need two to five days to unload and reload before leaving for their next port of call and making room for the next vessel, which means every berth has a waiting line behind it.

First, Debbie Chavez sends out the list to inform the work of the traffic controllers and Coast Guard officers at the Marine Exchange “Watch” peering at their radar and computer displays. They direct and police the approaching vessels. Then the Master Queuing List is used to schedule the port pilots who race out to meet the ships and guide the laden behemoths in and out of their berths. The list is next used to staff the day shift with the right number of crane operators, those princes of the docks who lift twenty-ton containers from impossibly tight quarters with the finesse (and pay scale) of brain surgeons. Then comes the assembly of longshore gangs to unload the goods, and the stevedores in the marine terminals who move and prepare the cargo for shipment out of the port. Finally, the Master Queuing List is used to dispatch the 40,000 or more big-rig truck trips that swarm into, out of, and around the twin ports every twenty-four hours, carrying the cargo out into the concentric circles of warehouse distribution centers, freight depots, and rail yards that make up America’s goods-movement ecology.

A third of U.S.-bound consumer goods, and far higher percentages of some, pass by the Marine Exchange. That makes Angels Gate and Debbie Chavez the one essential stop for everyone’s commute—long before you even leave the house.

The complex ballet required to move a product, any product, from door to door—and the overload that affects and infects that dance—begins most often at a port.

Once a container ship makes it out of the waiting room anchorages and reaches a container terminal, the unloading becomes another exercise in multi-ton surgery. Mammoth cranes capable of spanning the 170-foot-wide ships are positioned up and down the length of a vessel to begin the extraction of the containers. There are 140 electrically powered ship-to-shore cranes at the twin ports, a distinctive sight on the skyline, particularly when they’re idle and the boom arms are pointed skyward, like soldiers firing a twenty-one-gun salute. The bright red and blue crane towers run three hundred feet high and will soon be taller. The ports are painstakingly raising them sixty feet by giving them longer legs to accommodate larger, taller container ships, at a cost of a million dollars apiece (versus $10 million for each new crane). Almost all are imported from China; America makes neither the ships nor the equipment for unloading them, and they have to be transported already assembled on specialized cargo ships.

Crane operators at the California ports can average between twenty-five and twenty-eight containers an hour—just over two a minute. The highest paid and most sought-after operators routinely handle more than thirty cans an hour and can earn $250,000 a year with a thirty-hour workweek. They move more cargo in two minutes than the old bulk cargo stevedores could unload in an hour. And yet, even with four cranes working the bigger ships at once, and all operating at peak speeds, a 6,000-container delivery takes 54 hours to unload entirely, not counting time to reload (even when many of the outgoing containers from American ports tend to be empties).

When the crane operator’s work is done, the terminal gangs of longshoremen take over, moving the cans into temporary holding areas, where towers and pyramids of the different-colored containers amass until the proper truck or train is ready to be loaded. Marine clerks sort through the mazes of containers, some of which are difficult to find because of malfunctioning RFID devices or containers placed or logged incorrectly. The containers are moved in and out of the mountainous stacks by rubber-tired gantry cranes—smaller versions of the ship-to-shore cranes—which are mounted on inverted U-shaped frames riding on giant tractor tires instead of towers.

The terminals, many of which are subsidiaries of the shipping lines, are charged with moving those containers out of the ports as quickly as possible, but once again overload has complicated the job. Just under a third of the containers depart via dockside rail (or near dockside, after a short truck ride). The Alameda Corridor could handle twice the number of containers currently moving through it, but lack of rail capacity inside the ports represents a bottleneck limiting the number of trains moving cargo through the corridor. Plans to expand the capacity with construction of a new rail yard near the port have been stymied for years. This project, dubbed the Southern California International Gateway, faces neighborhood opposition, environmental complaints, and a lawsuit filed by the City of Long Beach against the City of Los Angeles,

Given the limits on rail movement from the twin ports, the next stage in moving our stuff door to door is all about trucks. About 70 percent of the cargo moves out via drayage trucks, the short-haul semitrailers that jam the ports and surrounding roads, each one carrying a single container. These trucks are a major source of air pollution and traffic congestion in the region. There are about 10,000 full-time and 4,000 part-time drayage drivers working out of the Long Beach and Los Angeles ports, and each day they swarm the marine terminals. It’s difficult and not always rewarding work, as picking up containers at the ports is a daily exercise in patience and dockside traffic jams even on the best of days. Drayage drivers for the most part are paid by the load, not by the hour, so idle time is a loss for them. The drayage truckers are an important link in the national goods movement system, never straying far but performing the essential service of bringing the still-containerized goods to nearby rail yards and transmodal train terminals,1 product distribution centers, warehouses, and long-haul trucking operations. Except for a few large companies with their own trucking fleets—Walmart, the big food and beverage companies—the next move after drayage for most of the goods that come to America through ports—and from American manufacturers as well—is handled by for-hire trucking fleets and logistics companies.

The next stop for most goods out of the Southern California ports are close-in distribution facilities.

In years past, businesses would make their own arrangements, hire truckers, or haggle with railroads. Some still do. But the trend now is to farm that work out. Companies such as Frontline Freight in the nearby City of Industry work for Watson’s tenants and other businesses across the nation; they are one of a new and growing breed of truckless, trackless transportation companies known as third-party logistics providers or freight forwarders.

What Frontline does—like hundreds of other companies in this growing “3PL” line of business—is arrange to receive the goods for an importer or other freight recipient (the goods can be domestic or imported, anything from anywhere is fine) and arrange to have the freight shipped to its final destination. That could be across town, the state, the country, or the world.

Next it’s on to more distant destinations in the California desert, where hundreds of square miles have been transformed into a landscape of sprawling distribution centers (think everything from Amazon to Zappos and every company in between). Next rail, air, and long-haul truckers move the goods to the rest of the nation—on to our stores, our businesses, our hospitals and schools, and through the last mile to us. To our doors.

UNITED PARCEL SERVICE

2,000 similar United Parcel Service delivery hubs around the country and the world. In the next eight hours this cycle will land 15.3 million packages on America’s doorsteps

“I am in the business of minutes,” Massie says. “It’s all about the minutes. If the plane leaves at seven, you either get there or somebody doesn’t get what they need in time.

Before packages, before sorting and bagging and loading, before driving and delivering, there is the clock,

On an average day, Massie’s Southern California employees will make 1.2 to 1.3 million deliveries in Southern California, more than 8 percent of the UPS worldwide total,

He does this with about 5 percent of the UPS workforce (which is 435,000 worldwide, moving 6 percent of the nation’s GDP).

A secret weapon makes this feat possible: a staff of 150 industrial engineers. This is the title UPS gives to the men and women whose job is to design the optimum route and order of stops that will get delivery drivers where they need to be when they need to be there while using as few minutes and miles as possible.

With more than 10,000 drivers in Southern California averaging 120 stops a day, in the most traffic-ridden, constantly changing urban sprawl in the U.S., Massie’s troops face one of the toughest choreographing challenges in the door-to-door universe. The first tool in the UPS engineers’ arsenal is the built-in “telematics” data devices every truck and driver carries. This hardware relays each truck’s performance information in real time to the engineers, who compare it to previous days on the same routes. With this data they can identify streets, turns, and intersections that are causing delays because of shifting traffic patterns, detours, or construction—even small delays drivers may not notice. The data lets them build more efficient routes for the next day.

Then there is the company’s famous no-left-turn policy, put in place in 2004, when the engineers realized that drivers waiting to turn left with engines idling were burning significant amounts of minutes and fuel. By assigning routes that avoid lefts for 90 percent of a delivery van’s turns, the company found it shaved 98 million minutes a year of idling time from its routes, which not only sped deliveries but also saved the company about 1.3 million gallons of fuel a year. Avoiding the left is also a proven safety measure, as traffic data shows that left turns are involved in ten times as many crashes and three times as many pedestrian deaths as right turns.

The industrial engineers’ newest and most sophisticated tool is a computer program called ORION (a catchy acronym for a decidedly uncatchy 1,000 pages of computer algorithm known as On-Road Integrated Optimization and Navigation). No human can consider all the possible routes with brainpower alone—the variations for one truck with 120 stops in different locations with varying drop-off and pickup times yield a number too high to have a name (trillions just won’t cut it). Rounded off, it is best expressed in scientific notation: 6.7 x 10143; if you wrote this value down in normal notation, the number of possible routes would look like this: 6,689,502,913,449,135,000,000,000,000,000,000,000,000,000,000,000,000,000,000,000,000,000,000,000,000,000,000,000,000,000,000,000,000,000,000,000,000,000,000,000,000,000,000,000,000,000,000,000,000,000,000,000,000,000,000,000,000,000,000,000,000,000,000,000,000,000.3

ORION can crunch that big number down to a short list of optimal routes that saves both minutes and miles, mapping out turns and tweaks that are too numerous for any human driver or engineer to compare unaided.

Humans take that list, modify the routes that are supremely efficient on paper but make no sense in the real world.

Shaving just one mile off every truck’s route can save the company $50 million in annual fuel costs; UPS expects up to $400 million in savings when ORION

The company may be delivering 18 million parcels a day, but only 2.7 million are overnight air shipments. This means that, at any one time, the company is juggling 100 million or so packages (more during holidays) while they are in transit. Routing all that requires a twenty-four-hour operation. In Massie’s district—as in any UPS district—the cycle begins around 1:00 a.m., when the fifty-three-foot big rigs—“feeder trucks,” in UPS-speak—move between cities and regions laden with ground shipments. Because UPS uses a hub and spokes system for both air and ground deliveries, few trucks haul parcels beyond a five-hundred-mile radius. A feeder truck bound for Salt Lake City from Los Angeles might stop at Las Vegas and meet a truck coming in from Utah. The two drivers will unhook and swap their trailers, then turn around and go home. Longer-distance shipments out of Southern California—about 80 percent of packages and documents—arrive and leave by rail, with the faster (and pricier) air shipments headed to the company’s regional air hub at Ontario, California, the unlikely desert location that UPS has made into one of the dozen busiest cargo airports in the country. The feeder trucks, trains, and planes meet up, crisscross the country, and bring the packages toward their destinations, ultimately landing at sorting centers and delivery facilities like Massie’s Olympic Building. They are, literally, feeding the beast.

At 4:00 a.m., the night loading of the delivery trucks begins, preparation for the final stage in the package shipping process. Parcels that arrived earlier by air or feeder truck or were picked up by the delivery vans themselves are sorted, scanned, and incorporated into ORION’s route-planning calculations, which are continually updated as new pickups arrive. While the sorted packages are being put on delivery trucks, the routes are finalized and downloaded into the drivers’ tablets (UPS had deployed this tech years before the iPad came along). Then the iconic brown box trucks depart to complete their deliveries—the endpoint the customer at the doorstep actually sees. Finally the same drivers complete their pickups—three quarters of a million package pickups in Massie’s Southern California district—and return to the network of operating centers, usually between 6:00 and 7:00 p.m. There, incoming packages are sorted by destination and shipping method and sent out by feeder truck, rail, and air to the proper UPS hub, and the process begins anew, sometimes with bare minutes to spare before a plane, train, or truck departure.

He ticks off the problems that keep him up at night: failing bridges, potholed streets, congested ports, endless traffic jams. Truckers on overnight hauls can’t even find safe parking half the time. As vital as trucks are to the economy and our way of life, Massie says, they are treated like interlopers on America’s roads. He’d like to see dedicated highway freight lanes—high-speed lanes just for trucks, isolated from passenger traffic—and greater public transportation investment to take cars off the road, making room for those freight lanes and more trucks.

 “It’s simple, really. Trucks are like the bloodstream in the human body. They carry all the nutrients a body needs in order to be healthy. If your blood stops flowing, you would die. If trucks stop moving, the economy would die. That’s not hyperbole. That’s not embellishment. That’s just math. And yet—and this is what really gets me—the general public hates trucks. People have become truck haters. They want them off the road. They oppose improvements that would keep the economy moving and growing. It’s already hurting our business. People don’t know what they’re asking for. They would paralyze America if they had their way.

“I don’t know if it’s a cultural thing in America that people feel entitled to the cement and the roads without having to pay for them, without having to understand how the system works, or that our economy depends on it continuing to work,” says Noel Massie.

One additional proposal put forward by the ports and local groups tired of choking on pollution would add electric power lines overhead so that zero-emission electric trucks could traverse the 710 corridor, then switch to battery power when leaving the freeway. And all of the plans will require much cleaner trucks than the current generation of diesel big rigs, as state and federal law demands sharp improvements in Southern California’s notoriously poor air quality.

Twenty-two companies are working together on one such promising superlight experimental big rig called the WAVE—for Walmart Advanced Vehicle Experience—that uses a hybrid system consisting of a powerful battery electric motor coupled with a micro-turbine engine that together can cut emissions and fuel use by up to 241 percent. But a commercially viable version of the WAVE (that is, one that’s cheap enough) may be a decade or more off, if it’s even achievable at all.

Absent such a paradigm-shifting technological advance actually hitting the road soon and in large numbers, community opposition to any proposal that would allow more trucks or increase the freeway’s footprint has already formed.

Monorails. Flying cars. Nuclear-powered cars. A helicopter in every garage. Subway bullet trains traversing the country. Moving sidewalks. Magnetic highways to guide vehicles so drivers can relax and play board games with the kids. Rocket planes that go suborbital to cover long distances quicker. We were supposed to have all these by now, or so the predictions of the future went a couple generations ago. Traffic was supposed to have been solved. Energy and pollution, too.

It’s tempting to judge those earlier decisions harshly, to condemn the shuttering of a valuable transportation asset and the refusal to build a new one when it would have been so much easier and less expensive to lay those tracks when the freeways first went in, rather than trying to shoehorn them into a built-out urban landscape today. But were those decisions wrong? Mass transit ridership was dying in the region even before World War II. And for all the money being spent on new light rail and trolley systems now, ridership is only a fraction of what it was a century ago. Cars won. And the decisions made to reject those multimodal freeways were rational at the time. People wanted cars. They didn’t want to see America from the train. They wanted to see the U.S.A. in their Chevrolets. They wanted to drive to work in air-conditioned comfort, not walk to the streetcar or train station, then wait around on crowded platforms. All the billions spent on mass rail transit in LA in recent years, the most ambitious build-out of multiple routes anywhere in the country, has not reduced car traffic jams as hoped. It helps somewhat, but the reductions make it hard to justify the expense. This mirrors the experience nationwide, even as about 25 percent of surface transportation spending goes to fund mass transit.

Mass transit use has picked up a bit in recent years but still is lower than it was a quarter century ago and far below its absolute peak in the 1920s, when it was the best and most desirable way to get around the nation’s cities and suburbs. Indeed, suburban development followed the extension of mass transit lines back then in the era of streetcar suburbs, because the trolleys were considered a prerequisite for suburban development. Most streetcar suburbs have been absorbed into cities proper since then, and suburban development after World War II eschewed following mass transit and instead relied on car accessibility. The new mass transit spending is not enticing waves of new riders to abandon their cars and ease road traffic. The convenience of the car parked in front of the house trumps the inconvenience of getting to a train or trolley or bus. In the 1920s, Americans were not deterred by this last-mile problem.

People walked to the stop—no big deal.

The replacement of truck, bus, and cab drivers with automation will be wrenching, particularly since taxis have become an entry point into the workforce for immigrants, and truck and bus driving have provided one of the few enduring and plentiful blue-collar jobs that still provide reliable paths to middle-class prosperity. The American Trucking Associations reports that there are about 3 million truck drivers working in the U.S.—it’s the single most common job in a majority of states—and about 1.7 million of that number are long-haul truckers, who would be most vulnerable to displacement by autonomous technology.

Rail, trucking, and ships dedicated to goods movement could start reducing their carbon footprint by transitioning from bunker and diesel fuel to natural gas, then electricity and carbon-neutral biofuels as those sources ramp up. These moves would be powered by a revamped grid dominated by renewable power sources that are already price competitive with fossil fuels. Embedding more miles and energy in our products can no longer be the winning strategy.

In the business world there would be big losers in this shift—the powerful fossil fuel industry. But there would be equally big winners in renewables, in producers of electric cars, autonomous vehicles, and electrical infrastructure. Tens of millions of jobs would be created to convert homes, ports, logistics centers, military bases, and factories to solar, wind, and bio-power with built-in energy storage for round-the-clock use and charging of our vehicles.

 

 

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Peter Turchin: violence and social unrest in the U.S. and Europe likely by 2020

Preface. Peter Turchin, an expert on the cycles of history and the rise and fall of civilizations, has used mathematical models of complex systems to predict political instability. Debora MacKenzie at NewScientist interviewed him about his upcoming book “Ultrasociety” in the October 12, 2013 article “Pattern behind the shutdown“, and I’ve also drawn on another  article “Calculated violence: Numbers that predict revolutions” by Bob Holmes in 2012. I’ve taken excerpts and paraphrased both of these below.  Turchin is a mathematical ecologist at the University of Connecticut in Storrs.

Alice Friedemann  www.energyskeptic.com  Author of Life After Fossil Fuels: A Reality Check on Alternative Energy; When Trucks Stop Running: Energy and the Future of Transportation”, Barriers to Making Algal Biofuels, & “Crunch! Whole Grain Artisan Chips and Crackers”.  Women in ecology  Podcasts: WGBH, Jore, Planet: Critical, Crazy Town, Collapse Chronicles, Derrick Jensen, Practical Prepping, Kunstler 253 &278, Peak Prosperity,  Index of best energyskeptic posts

***

Turchin didn’t find the Republican minority in the U.S. House refusing to approve the budget even though it could bring on a global financial crisis at all surprising. It was a predictable outcome.

Turchin has found what he believes to be historical cycles, two to three centuries long, of political instability and breakdown affecting states and empires from Rome to Russia. In a book he is finishing, he argues that similar cycles are evident in US history, and that they are playing out to this day. He admits that his theory, built on a model that combines social and economic data, must be tested against real events – but unlike most historical theories, it can be. Meanwhile, he says, it “predicts the long-term conditions that led to this shutdown”.

Turchin has several books out on the 200-300 year cycles of history to make predictions about future political changes. If he’s right, there will bey civil unrest and political violence by 2020 in the United States. Turchin replies to those who disagree that his predictions are testable within the near future, and that if he’s right, measures could be taken to prevent instability from happening.

“Turchin put his reputation on the line by predicting publicly that political instability in the US and western Europe will shoot up in the coming decade (Nature, vol 463, p 608). In his new paper he provides more evidence for an impending crisis in the US, where both cycles look to be approaching a peak in 2020. Allowing for some imprecision in his calculations, Turchin says that if we make it to 2030 without major turmoil he will conclude that his prediction – and hence the underlying theory – is wrong. He doesn’t think that will happen, though, and estimates that he has an 80% chance of being right. The scale of the potential unrest, although more uncertain, also concerns him. “It is easier to predict timing than the height of the peak. My feeling is that it’s going to be worse than we expect. Hopefully I’m wrong – I have to live through this.”

Prevention remedies include increasing tax rates on high earners, reducing the rates of immigration, and fewer people getting a university education, since this is what increases the number of the elite. He notes that collective violence in Europe in the early 17th century and in pre-revolutionary Russia was closely correlated with an oversupply of graduates.

Turchin has used a mathematical approach to understand how religions spread, why empires arise on steppes near farmland, and why civilizations collapse.  He says that the reason there are over 200 reasons historians give for the fall of the Roman empire is due to constant new ideas yet no culling of old hypotheses.

But Turchin looks beyond individuals and the details of a particular empire to the big picture view that applies to any nation: social cohesion, collective violence, riots and civil wars, population biology, and so on. His model shows that “in a prosperous culture, population growth or advancing technology eventually leads to an oversupply of labor. That is good news for an expanding upper class who can more easily exploit an increasingly desperate labor force. Eventually, though, the society becomes so top-heavy that even some members of the elite can no longer afford the good life. Factionalism sets in as the upper classes fight among themselves, social cohesion declines, and the state begins to lose control of its citizens. Then, and only then, does widespread violence break out. Anarchy reigns until enough people fall out of the elite classes, at which point growth and prosperity can return.”

This is a testable theory, in that it predicts violence and collapse don’t happen at the first signs of harder times when workers’ first become unhappy.  Rather, it comes a generation or two later due to the time it takes to accumulate excessive numbers of wealthy educated elites.

And it is how events did unfold the Roman Republic, medieval Europe and Tsarist Russia, when he compared the timing of collective violence with  wages, social inequality and population growth – a measure of labour supply. In addition, the dates of coins in hoards unearthed by archaeologists are “an excellent proxy for political unrest, since their owners must have buried them in fear during dangerous times and then experienced some misfortune that prevented them from digging them up later. Again, he found that civil war lagged behind economic hardship by a generation or two. Moreover, the same pattern holds true for the US over the past 200 years, he reports in the Journal of Peace Research, vol 4, p 577)”.

Workers or employees make up the bulk of any society, with a minority of employers constituting the top few per cent of earners. By mathematically modelling historical data, Turchin finds that as population grows, workers start to outnumber available jobs, driving down wages. The wealthy elite then end up with an even greater share of the economic pie, and inequality soars. This is borne out in the US, for example, where average wages have stagnated since the 1970s although gross domestic product has steadily climbed.

This process also creates new avenues – such as increased access to higher education – that allow a few workers to join the elite, swelling their ranks. Eventually this results in what Turchin calls “elite overproduction” – there being more people in the elite than there are top jobs. “Then competition starts to get ugly,” he says.

The richest continue to become richer: as in many complex systems, whether in nature or in society, existing advantage feeds back positively to create yet more. The rest of the elite fight it out, with rival patronage networks battling ever more fiercely. “There are always ideological differences, but elite overproduction explains why competition becomes so bitter, with no one willing to compromise,” Turchin says. This means the squabbling in Congress that precipitated the current shutdown is a symptom of societal forces at work, rather than the primary problem.

In Turchin’s theory, such political acrimony is paralleled by rising discontent among workers left with less and less, and increasing state bankruptcy as spending by the elite who control the government coffers spirals. Ultimately, the situation gets so bad that order cannot be maintained and the state collapses. A new cycle begins.

Reality backs his theory up. Over the last century, labor supply, public health indicators, income inequality, and the numbers and behavior of the elite rose and fell in sync and as predicted by the theory. And with each glut of workers and peak in inequality came a surge in political violence.

Turchin finds that a simple mathematical model, combining economic output per person, the balance of labor demand and supply, and changes in attitudes towards redistributing wealth – the minimum wage level is one proxy for this – generates a curve that exactly matches the change in real wages since 1930, including complex rises and falls since 1980. Such close agreement between model and reality is exceptional in social sciences, says Turchin, and shows that all three factors control the rise of inequality, as predicted.

A set of 1590 instances of political violence in the US reveals peaceful periods around 1820 and 1950, with instability rising in between. Social data reflecting labor supply, inequality and elite overproduction match that basic fluctuation. Turchin thinks these changes explain the American civil war in the 1860s. The statistics also show that we are now in another phase of rising instability that began in the 1970s, just when, as his theory predicts, labor supply started outstripping demand.

In Turchin’s theory, this phase in the cycle should also be marked by political polarization and rising government debt – both current crises in Washington. Real wages, the minimum wage, trade union suppression, the share of wealth owned by the richest one per cent, even filibusters and fights over judicial appointments – all have changed at the same time in ways reflecting reduced social consensus. Meanwhile, the elite class has grown sharply. Between the 1970s and 2010, college fees rose, yet the numbers of doctors and lawyers qualifying per head of population nearly trebled. Workers have steadily lost out. The “real shocker”, says Turchin, is that the average height of Americans peaked in 1975. It has actually declined in black women since then – a fact that could be down to falling nutrition standards linked to lower incomes. None of the trends shows any sign of reversing.

Yaneer Bar-Yam of the New England Complex Systems Institute in Cambridge, Massachusetts, agrees with Turchin’s finding of repeated cycles in history. However, he believes our current experience also reflects something new: technology has brought about the emergence of a complex, networked society, one that, he argues, existing democratic institutions are too simplistic to govern. “The fall of the Soviet Union wasn’t the end of the story,” says Bar-Yam. He says that the US government could also fall apart unless its citizens choose to adapt by evolving decentralized, networked institutions more suited to managing complexity.

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Climate change impacts on transportation 2008 U.S. Senate hearing

Senate  110-1199. June 24, 2008. Climate change impacts on the transportation sector. U.S. Senate Hearing.

Excerpts from this 135 page document follow.

DANIEL K. INOUYE, U.S. SENATOR FROM HAWAII

The transportation sector is a major indicator of the overall economic health of our Nation. Given that fact, it is important to recognize that climate affects the design, construction, safety and operations, and maintenance of transportation infrastructure and systems. For example, as we will hear today, predicted increases in precipitation and frequency of storms will impact our transportation systems; recent flooding in the Midwest resulted in submerged highways and railroad bridges, and significant diversion of freight traffic. In addition, severe storms have caused major airport delays around the country. While there is a need for the transportation sector to adapt to the environmental changes brought on by global climate change, it is also widely recognized that the transportation sector has contributed to the causes of climate change. (1) Transportation sources account for approximately one-third of U.S. greenhouse gas emissions.

Dr Thomas C. Peterson, Climate Services Division, National Climatic Data Center, National Environmental Satellite, Data & Information Service, National Oceanic & Atmospheric Administration, U.S. Department of Commerce

I am an author of a National Research Council (NRC) commissioned paper released this past March on Climate Variability and Change with Implications for Transportation, along with other colleagues from NOAA and the Department of Energy’s Lawrence Berkeley National Laboratory. My testimony will draw from the NRC paper as well as from 3 other timely reports of which I am an author of the report on climate extremes: The Potential Impacts of Climate Change on U.S. Transportation by the NRC Transportation Research Board (TRB) which was released March 11, 2008. Impacts of Climate Variability and Change on Transportation Systems and Infrastructure—Gulf Coast Study, U.S. Climate Change Science Program (CCSP) Synthesis and Assessment Report 4.7, released March 12, 2008. Weather and Climate Extremes in a Changing Climate, U.S. Climate Change Science Program Synthesis and Assessment Report 3.3, released June 2008. Climate Change and Its Impacts on Transportation Operation and Infrastructure.

According to the NRC report, 5 aspects of climate change impact transportation operations and infrastructure: (1) increases in very hot days and heat waves, (2) increases in Arctic temperatures, (3) rising sea levels, (4) increases in intense precipitation events, and (5) increases in hurricane intensity.

Increases in Very Hot Days and Heat Waves

Impacts on infrastructure include rail-track deformities, thermal expansion on bridge joints and paved surfaces, and concerns regarding the integrity of pavement. Very hot days can have an impact on operations by limiting periods of outdoor railroad track maintenance activity due to health and safety concerns.

It is highly likely (greater than 90% probability of occurrence) that heat extremes and heat waves will continue to become more intense, last longer, and be more frequent in most regions during the twenty-first century. In 2007, the probability of having 5 summer days at or above 43.3 °C (110 °F) in Dallas was about 2%. In 25 years the models indicate that this probability increases to 5%; in 50 years, to 25%; and by 2099, to 90%.  High temperatures can have a big impact on aircraft by influencing the limits on payload and/or canceling flights. This is due to the fact that, because warmer air is thinner (less dense), for any given take-off speed the wings of airplanes create less lift when temperatures are high. This causes lower lift-off load limits at high-altitude or hot-weather airports with insufficient runway lengths.

Increases in Arctic TemperaturesImpacts on infrastructure include a short season for ice on roads and thawing of permafrost, which causes subsidence of roads, rail beds, bridge supports, pipelines, and runway foundations.    A longer ocean transport season and more ice-free ports in northern regions, as well as the possible availability of a northern sea route, or a northwest passage.

The Gulf Coast Study estimates that a relative sea level rise of 0.5 to 4 feet is quite possible for parts of the Gulf Coast within 50 years, due primarily to land subsidence. With an increase of 4 feet in relative sea level, as much as 2,400 miles of major Gulf Coast roadways could be permanently flooded without adaptation measures. Other impacts of sea level rise include more frequent interruptions in coastal and low-lying roadway travel and rail service due to storm surge. Sea level rise will cause storm water levels to be higher and flow further inland, exposing more infrastructure to destructive wave forces. Higher storm water levels will in turn require reassessment of evacuation routes, changes in infrastructure design, siting, and development patterns, and the potential for closure or restrictions at several of the top 50 airports, as well as key maritime ports that lie in coastal zones. With 50% of the population living in the coastal zone, these airports and ports provide service to the highest-density populations in the United States. Impacts on infrastructure include reduced clearance under bridges; erosion of road base and bridge supports; inundation of roads, rail lines, subways, and airport runways in coastal areas; more frequent or severe flooding of underground tunnels and low-lying infrastructure; and changes in harbor and port facilities to accommodate higher tides and storm surges.

Increases in Intense Precipitation Events.  It is very likely (greater than 90% probability of occurrence) that intense precipitation events will continue to become more frequent in widespread areas of the United States. Impacts include increased flooding of evacuation routes, increases in weather-related delays and traffic disruptions, and increases in airline delays due to convective weather. Impacts on infrastructure include increases in flooding of roadways, rail lines, subterranean tunnels, and runways; increases in scouring of pipeline roadbeds and damage to pipelines; and increases in road washout, damages to rail-bed support structures, and landslides and mudslides that damage roadways and tracks.

Increases in Hurricane Intensity.  It is likely (greater than 66% probability of occurrence) that tropical storm intensities, with larger peak wind speeds and more intense precipitation, will increase.  Impacts of increased storm intensity include more frequent and potentially more extensive emergency evacuations; and more debris on roads and rail lines, interrupting travel and shipping. Impacts on infrastructure include a greater probability of infrastructure failures, increased threat to stability of bridge decks, and harbor infrastructure damage due to waves and storm surges.

Transportation infrastructures have long lifetimes. For roadways it is typically 25 years, railroads 50 years, and bridges and underpasses 100 years.

There are methods of laying railroad track that raise the temperature at which it will buckle, some pavement options are more resistant to rutting during hot weather than others and larger culverts can be placed under railroads and highways to accommodate heavier precipitation.

Thomas J. Barrett, Vice Admiral, Deputy Secretary, Department of Transportation 

We have focused our approach on improving vehicle efficiency, increasing use of alternative fuels, reducing congestion, advancing the efficiency of the transportation system, and improving our understanding of the impacts of climate change on transportation networks.

Texas Transportation Institute estimated highway congestion in the United States wastes 2.9 billion gallons of fuel annually, translating to 2.6 million metric tons of unnecessary CO2.

In April, Secretary Peters announced a proposal that would establish the first new fuel economy standards for passenger cars in more than two decades, and would update and expand fuel economy standards for light trucks.

Through the Federal Highway Administration’s Congestion Mitigation and Air Quality Improvement Program (CMAQ), the Department is working with State and local governments on a range of programs to improve urban air quality within the transportation sector. For example, DOT has cooperated with the Environmental Protection Agency’s SmartWay Program initiative to retrofit trucks and truck stops with on-board and off-board auxiliary power to run vehicle lights and air conditioning and reduce truck idling. This program has reduced fuel consumption, criteria pollutant emissions, and greenhouse gas emissions, and has expanded to include idling emissions from marine, agricultural, rail, and off-road heavy-duty engines. The Federal Transit Administration funds the development and deployment of alternative fuel buses, including hydrogen fuel cell buses, and diesel-electric hybrid buses, as well as alternative fuels infrastructure for transit systems across the United States.

Early this year, DOT released The Impacts of Climate Change and Variability on Transportation Systems and Infrastructure: Gulf Coast Study, Phase I. This study provides an assessment of the vulnerabilities using 21 simulation models and a range of future scenarios.

The study found that potential changes in climate, through both sea level rise and subsidence over the next 50–100 years, could disrupt transportation services in several key ways.

  1. 27% of major roads
  2. 9% of rail lines
  3. 72% of area ports

All of these are at, or below 4 feet in elevation above sea level, and could be vulnerable to future sea-level rise combined with non-climate related sinking of the area’s land mass that is occurring in the area. The study is designed to help State and local officials as they develop their transportation plans and make investment decisions. Subsequent phases of the study are intended to focus on risks and adaptation strategies involved in planning, investment, and design decisions for infrastructure in the Gulf Coast region and nationwide.

The study was performed in partnership with the U.S. Geological Survey and State and local researchers, and is one of 21 ‘‘synthesis and assessment’’ reports produced as part of the U.S. Climate Change Science Program. A similar study that will soon be released is The Potential Impacts of Global Sea Level Rise on Transportation Infrastructure. This study was designed to produce rough estimates of how future climate change, specifically sea level rise and storm surge, could affect transportation infrastructure on the East Coast of the United States. Like the Gulf Coast Study, this study’s major purpose is to aid policymakers by providing estimates of these effects as they relate to roads, rails, airports, and ports.

Admiral BARRETT. Demand has gone up dramatically over the past several years globally.   We’re getting up to the limits of what the available supply is, and we need to think very seriously about expanding that supply, particularly domestically, as you mentioned, in areas such as offshore or areas such as ANWR. We need to think very seriously about that, and improve our supplies.

Certainly, freight rail is a hugely efficient way of moving freight. It’s near capacity across the country.  [As far as high-speed rail] the technology is enormously expensive.   Unlike some other places, we’re using existing infrastructure. It takes a lot of work, and would probably be feasible only in very heavily trafficked corridors.

Senator KERRY.  Let me ask you what is the guiding operative management target under which Department of Transportation, Department of Energy, and others are proceeding with respect to global climate change? This hearing is obviously on global climate change. This is the 20-year anniversary of Jim Hansen coming up here and telling us that it’s happening now, 20 years ago. Now we know it’s happening, even to a greater degree and faster than was predicted. I’d like to know what the operative estimate is of your Department as to where a potential, sort of, catastrophic tipping point may be, and how fast you have to respond to these infrastructure challenges. And I do that particularly in light of the fact that there are predictions, for instance, that—just last week, The Washington Post ran a story headlined, ‘‘Extreme Weather to Increase with Climate Change,’’ and, ‘‘Our scientists now agree that the droughts are going to get drier, the storms are going to get stormier, the floods are going to get deeper with climate change.’’ That’s a quote. They warn of more flooding, like we’re seeing in Iowa today, more heavy downpours, more droughts. ‘‘In March, the Department of Transportation found that the Gulf Coast would put a substantial portion of the region’s transportation infrastructure at risk. Storm surges in the Gulf Coast will flood more than half the area’s major highways, almost half of the rail miles, 29 airports, and virtually all of the ports.’’ So, given these predictions, which keep coming at us, under what time-frame do you believe you’re operating, in terms of the infrastructure expenditures necessary to respond to these threats?

Admiral BARRETT. The Gulf Coast study is regionally focused, where obviously, you’ve got the potential for sea level rise, temperature changes, storm intensity, and so on. With respect to transportation infrastructure, the first step is understanding the potential implications in local areas, because they vary. The next study will be the East Coast, where the impacts will be different.   So, I think the first thing we are trying to do is understand better, particularly regionally, what the actual implications might be so that people who repair and renew and expand transportation infrastructure, which, to a large extent, rests in the states, as well as the Federal Government, can adjust to that over time as they repair and renew and build out.

I think there is no timeline, but we clearly need to understand what needs to be done, and, as we plan new projects. I think you will see adjustments to how we design, build, and install bridges to withstand climate better, and the impacts of climate change, whether it’s increased storms or higher river levels.

Senator KERRY. I’ll just say there really is a specific time. Jim Hansen, who is hugely respected, first warned of this, 20 years ago, and we’ve been slow to respond to it. The science is only coming back stronger and more rapidly and greater. Jim Hansen has now revised—right now, today, in these days—is warning us that we have less cushion than the scientists thought when they revised the cushion from several years ago. So, it’s gone from 550 parts per million of greenhouse gases, to 450, and now, they believe, less than that. There is a time-frame here. They’ve said we’ve got 10 years to get this right. And if you’re saying to us there’s no time- frame, the attitude of where we are, I think this is going to be very difficult to get done. And I think it’s, frankly, inappropriate, that that is where a major department, the Department of Transportation, stands today. I think there ought to be vast commitments in incentives, tax incentives, grants, expenditures to put America on a course to deal with this.

Senator STEVENS. I was told that the application of cap-and-trade, the credits that would be required during the construction phase alone for a pipeline would be the largest project in the history of the United States financed by private capital—that, for all the trucks and everything else that are going to be used in this construction phase over a period of 5–6 years, that the costs would be increased by at least 20% if they had to go out and buy credits under that concept for the pollution that’s taking place, notwithstanding the fact that the completion of the line would bring about the delivery of an enormous amount of new additional natural gas, which is not as polluting as the coal that people are using in many of the areas that would be supplied. There doesn’t seem to be any leeway for those who want to move to try and get a more efficient type of energy available. I think that cap-and-trade legislation would kill that pipeline.

Admiral BARRETT.  I agree, in general. Cap-and-trade in transportation is very treacherous and needs to be looked at very closely.

Senator Ted Stevens, Alaska. The University of Alaska recently released a report on potential impacts of climate change on transportation and public infrastructure in Alaska. The report found that the effects of climate change stand to increase maintenance and replacement costs of public infrastructure in Alaska by up to 20%, or an additional $6 billion over the next two decades.

Conservation measures and alternative energies need to be part of our long-term strategy, but the idea that we can transition from fossil fuels anytime in the next 20 years is not realistic. Worldwide oil demand is expected to increase to 116 million barrels a day by 2030. We do need to explore ways to ease our dependence on fossil fuels in the transportation sector, but the investments required to make this transition are enormous. This is why I continue to argue that revenues from new domestic sources of oil, including ANWR, should be devoted to climate change adaptation and alternative energy development to reduce our dependence on foreign oil.

Senator Thomas R. Carper, Delaware.   When I was Governor of Delaware, if we wanted to build a road or a highway or a bridge, the Federal Government paid for 80% of it. If we wanted to do a transit investment, the Federal Government provided 50% of it. If we wanted to invest in intercity passenger rail, the Federal Government provided nothing. And I’m sure we made investment decisions, that were probably wrong decisions, because of the difference in those modes of—or measures of Federal support.

Senator Bill Nelson, Florida.  So you all are saying, with climate change, roads will buckle, bridges will wash out, railroads will be destroyed. If the seas rose 2 feet, in my state of Florida what kind of investment in transportation would be thrown out the window as a result of that?

Admiral BARRETT. I would guess substantial. But I would take the approach of quantifying specifically what rail would need to be rerouted, what roads would need to be readjusted. I think you need very specific analysis at a local and/or regional level.  Understanding the specific impacts is enormously important.

Senator Bill Nelson, Florida.   In a state like Florida, where 80% of the population is on the coast, it’s very difficult to go in and redo all of that infrastructure. And the cost is just going to be enormous. So, we’d better start figuring out something to do so that the seas don’t rise.

Senator John Thune, South Dakota. On account of aging and outdated infrastructure, we have economic challenges that are real, tangible, and identifiable today. Many of these infrastructure challenges are going unmet. Based on projections of population growth and government funding streams such as the Federal Highway trust, fund we know that these challenges will only grow in the future and resources will increasingly fall short of meeting these real short- and mid-term challenges.

Senator Frank R. Lautenberg, New Jersey.  One-third of America’s greenhouse gas emissions comes from cars, trucks, and buses. And Dr. James Hansen, NASA scientist, said, just last week, ‘‘If we don’t begin to reduce greenhouse gas emissions in the next several years, then we are in trouble.’’ And we’ve got to begin by getting cars off the road, more people onto passenger rail, buses, subways, and other types of mass transit. Already, more and more people are riding public transit, and it’s more efficient, more convenient.

We’ve also got to act to ensure more efficient movement of freight. Trains are at least 6 times more energy efficient than trucks, and barges are more than 8 times as efficient. I chaired a Subcommittee hearing a couple of weeks ago on freight transportation needs, and, based on what I learned, I plan to introduce tax relief legislation which will encourage greater use of ships and barges, or, as we call it, short sea shipping between U.S. ports. By investing in fuel efficiency, mass transit, and better freight strategies, we can both bring relief to the people at the pump and fight global warming for generations to come.

John Porcari, Secretary, Maryland Dept. of Transportation; Chair, Climate Change Technical Assistance program advisory board; Chair, Standing committee on Aviation, American Association of State Highway & Transportation officials

The effort to reduce greenhouse gas emissions will involve many separate initiatives. There is no silver bullet. We should not get so caught up in debates about competing approaches that we lose sight of this bigger picture. In the transportation sector, this means we need improvements in fuel economy; we need greater usage of low-carbon fuels; we need better management of our transportation system to reduce congestion and smooth traffic flows; and we need to take steps that reduce the growth in vehicle miles traveled (VMT).

We need major technological breakthroughs in order to have any chance of dramatically cutting global emissions of greenhouse gases. For transportation, this means not only improvement in fuel economy, but ultimately a transition to entirely new fuels and new propulsion systems—for example, plug-in hybrid vehicles, zero-emission fuel-cells.

Between now and 2030, the U.S. Government forecasts that fuel efficiency will continue to improve and renewable fuels will gain market share, but also vehicle miles traveled (VMT) will continue to grow at 1.6 to 1.9 percent annually, outpacing the gains in fuel efficiency.

While technological change is essential to reducing greenhouse gas emissions, there is also a role for strategies that help to limit the growth in travel demand. As discussed above, the total VMT has grown much faster than population growth for the past several decades, but appears to have slowed considerably in the past few years. The average annual increase in VMT between 1990 and 2005 was approximately 2.2 percent. By contrast, population increased only about 0.8 percent per year during this period. Between 2005 and 2007, VMT growth occurred at a much slower rate—approximately 0.5 percent annually. Recent reports indicate that over the 12 month period between March 2007 and March 2008, VMT declined by 4.3 percent

There are many factors that can affect the future growth rate of VMT. Among the most important factors are economic trends

Against the backdrop of these larger trends, government policies also can play a role—albeit a limited one—in influencing VMT growth. Strategies that can be used include: (1) increasing investments in transit and intercity passenger rail, (2) expanding other alternatives to single-occupant vehicle travel, and (3) encouraging land uses that minimize the number and length of auto trips. Expanding Transit Service and Intercity Passenger Rail Transit service provides an alternative to automobile travel. The challenge is how to make the most of transit’s potential, given that it serves a relatively small share of travel in the United States (1% of passenger miles traveled) and major transit system expansions require significant public sector funding.

Passenger travel also occurs by walking, biking, carpooling, vanpooling, and telecommuting [so we should try to shift single-occupant autos toward these methods].   Telecommuting is likely to be a highly cost-effective strategy.

Patterns Land use decisions play an important role in determining the demand for automobile travel. Existing land use patterns in many areas make automobile travel a necessity for most trips. Higher-density land use patterns, combined with increased availability of transit service, could help to reduce the demand for automobile travel without reducing mobility.

Traffic congestion contributes to greenhouse gas emissions because vehicle engines operate less efficiently—and therefore produce higher emissions per mile— when they are driven at low speeds in stop-and-go traffic. The optimal speed for motor vehicles with internal combustion engines is about 45 mph. [FOR CO2, as usual, fuel efficiency is left out]. At lower speeds, CO2 emissions per mile are several times higher than at 45 mph. At higher speeds, CO2 emissions per mile increase as well, but somewhat less sharply. If we can reduce the amount of fuel burned by vehicles stalled in traffic that is a gain. If we can improve the flow of traffic so fuel is burned at more optimal efficiency rates then that will also produce a gain.

The way motorists operate their vehicles affects greenhouse gas emissions. The March 2007 TRB report notes that: Recent EAP data suggests that a significant component of greenhouse gas emissions—as much as 22 percent—results from inefficient operation of motor vehicles. These inefficiencies could result from factors beyond the driver’s control, such as traffic congestion, and also could reflect a driver’s own behavior, such as high-speed driving, vehicle maintenance, and tire pressures. Driver education and other policies could help to promote more efficient vehicle operations

Operational and maintenance impacts of excessive heat. ‘‘Periods of excessive summer heat are likely to increase wildfires, threatening communities and infrastructure directly and bringing about road and rail closures in affected areas. Longer periods of extreme heat may compromise pavement integrity (e.g., softening asphalt and increasing rutting from traffic); cause deformation of rail lines and derailments or, at a minimum, speed restrictions; and cause thermal expansion of bridge joints, adversely affecting bridge operation and increasing maintenance costs.’’

Increased flooding of coastal roads and rail lines. ‘‘The most immediate impact of more intense precipitation will be increased flooding of coastal roads and rail lines. Expected sea level rise will aggravate the flooding because storm surges will build on a higher base, reaching farther inland. . . . [The IPCC] identifies coastal flooding from expected sea level rise and storm surge, especially along the Gulf and Atlantic coasts, as one of the most serious effects of climate change. Indeed, several studies of sea-level rise project that transportation infrastructure in some coastal areas along the Gulf of Mexico and the Atlantic will be permanently inundated sometime in the next century.’’

  • Disruption of coastal waterway systems. ‘‘[A] combination of sea level rise and storm surge could eliminate waterway systems entirely. For example, the Gulf Coast portion of the intercoastal waterway will likely disappear with continued land subsidence and disappearance of barrier islands. This will bring an end to coastal barge traffic, which helps offset rail and highway congestion; all ships will have to navigate the open seas.’’
  • Impacts on Alaskan infrastructure. ‘‘The effects of temperature warming are already being experienced in Alaska in the form of continued retreat of permafrost, creating land subsidence issues for some sections of the road and rail systems and for some of the elevated supports for above-ground sections of the Trans-Alaska pipeline. Warming winter temperatures have also shortened the season for ice roads that provide vital access to communities and industrial activities in remote areas.’’

Several other studies have also concluded that climate change is likely to have widespread and severe impacts on transportation infrastructure.

U.S. DOT Gulf Coast Study.  The study recognized ‘‘4 key climate drivers’’ in the Gulf Coast region: rising temperatures, changing precipitation patterns, rising sea levels, and increasing storm intensity. It suggested a range of possible responses, including raising transportation facilities in low-lying areas; hardening them to withstand storm events; relocating them to areas that are less vulnerable; and expanding redundant systems where needed.

ICF Studies of Sea-Level Rise. This two-part study focused specifically on the potential impacts of sea-level rise (not climate change in general) on transportation infrastructure. Phase 1 assessed impacts of sea-level rise on the District of Columbia, Maryland, Virginia, and North Carolina. Phase 2, which is still under way, will evaluate impacts of sea-level rise on seven additional States on the East Coast: New York, New Jersey, Pennsylvania, Delaware, South Carolina, Georgia, and the Atlantic Coast of Florida.

Edward Dickey, Ph.D. Affiliate professor of economics, Loyola College in Maryland; member, committee on climate change & U.S. transportation, transportation research board, division on earth and life studies, National Research Council, The National Academies

The past several decades of historical regional climate patterns commonly used by transportation planners to guide their operations and investments may no longer be a reliable guide for future plans. Future climate will include new classes (in terms of magnitude and frequency) of weather and climate extremes, such as record rainfall and record heat waves, not experienced in modern times as human-induced changes are superimposed on the natural variability of the climate. Decisions transportation professionals take today, particularly those related to the redesign and retrofitting of existing transportation infrastructure or the location and design of new infrastructure, will affect how well the system adapts to climate change far into the future.

Potentially, the greatest impact of climate change on North America’s transportation system will be flooding of coastal roads, railways, transit systems, and runways because of a global rise in sea level coupled with storm surge and exacerbated in some locations by land subsidence. The vulnerability of transportation infrastructure to climate change, however, will extend well beyond coastal areas. Therefore, Federal, state, and local governments, in collaboration with owners and operators of infrastructure such as ports and airports, and private railroad and pipeline companies should inventory critical transportation infrastructure to identify whether, when, and where projected climate changes in particular regions might be consequential.

Public authorities and officials at various governmental levels and executives of private companies are making short- and long-term investment decisions every day and should incorporate climate change into their long-term capital improvement plans, facility designs, maintenance practices, operations, and emergency response plans.

The significant costs of redesigning and retrofitting transportation infrastructure to adapt to the potential impacts of climate change suggest the need for more strategic, risk-based approaches to investment decisions. Transportation planners and engineers should incorporate more probabilistic investment analyses and design approaches that apply techniques for trading off the costs of making the infrastructure more robust against the economic costs of failure and should communicate these trade-offs to policymakers who make investment decisions and authorize funding.

David Friedman, Research Director & Senior Engineer, the Union of Concerned Scientists

Most of the planes, trains, ships, and automobiles we rely on were designed during the days of cheap oil when fuel efficiency was not a priority. Manufacturers have been slow to respond to recent consumer demands for fuel economy and consumers have also been slow to change.  Both personal travel and goods movement have evolved around our extensive and dispersed national highway system. Compact, walk-able or bike-able communities and easy access to transit are the exception rather than the rule. Consumers and corporations lack choices to substitute for reliance on our cars and trucks. The transportation sector is almost exclusively reliant on fossil fuels, …alternative fuels meet only about 0.2 percent of U.S. transportation fuel

To reduce America’s oil addiction, and save consumers tens of billions of dollars, we must give consumers and corporations new options to use fuel more efficiently when they travel or ship goods. This can be achieved either through vehicle global warming pollution standards or by setting fuel economy standards. Through the Ten in Ten Fuel Economy Act, this Committee led the Nation forward on fuel economy for cars and light trucks for the first time in more than three decades. And for the first time ever, the door was opened to fuel economy standards for medium and heavy duty trucks thanks to this Committee.  [off limits even more than autos??]

The projected benefits of just the light-duty portion of the Ten in Ten Fuel Economy Act highlight the importance of keeping efficiency a top priority. Meeting the minimum fuel economy requirement of 35 miles per gallon would cut global warming pollution for new cars and trucks nearly 30% by 2020. The minimum will also reduce oil consumption by nearly 9 billion barrels through 2030, rising to about 30 billion barrels saved through 2050. And finally, boosting fuel economy from today’s 25 mpg average to 35 mpg will save consumers the equivalent of reducing the price of today’s $4 per gallon gasoline by more than one dollar.

Delivery trucks and 18-wheelers could increase fuel economy from today’s level of less than 7 mpg for new vehicles to 10–11.5 mpg by 2030. This represents a boost of 50–70% while maintaining or expanding today’s hauling capacity. However, because of language in Ten in Ten, it may be at least 8 years before this committee’s medium and heavy duty standards are put to work.

NHTSA appears unwilling or unable to move the country on this path and this Committee should exercise its oversight authority to ask NHTSA to fix a variety of flaws used in setting their proposed standards [see document for links to recommendations].  Changes along these lines would redirect NHTSA’s efforts to the intent, not just the letter, of the law passed as part of Ten in Ten. NHTSA’s own analysis confirms that simply switching to total benefits, even with their poor gas price assumptions, would have led them to propose a fleet-wide average of at least 35 mpg by 2015— 5 years earlier than the required minimum. More realistic gas prices, even only setting the standard based on the marginal benefits, would also have led NHTSA to propose a fleet-wide average over about 35 mpg by 2015.  Making matters worse, not only will NHTSA’s poor analysis shortchange consumers and lead to lower global warming pollution reductions, we can expect a similar approach to shortchange trucking companies and the environment when NHTSA address fuel economy standards for medium and heavy duty vehicles. This Committee’s oversight role is essential to avoiding this outcome.

While great strides can be made to improve vehicle efficiency, it is unlikely that technology alone will be able to keep pace with growing demand for personal and freight travel if we continue on our current path. As a result, despite the potential for parts of the transportation sector to increase efficiency by 50 percent or 100 percent, global warming pollution from transportation will continue to increase beyond current levels.

As with efficiency, the first step is to ensure that consumers and corporations have alternatives other than business as usual. Both urban and suburban areas need greater access to public transportation. As of 2001, less than one-third of the U.S. population lived within about a block of a bus line, while only about 40 percent lived within a half mile. The situation is even worse for rail, where only about 10% of U.S. population lived within a mile of a rail stop, while only about a quarter lived within 5 miles.  In addition to transit, consumers need improved access to high occupancy vehicle (HOV) lanes, bike lanes, and more affordable housing near where they work. Corporations need many of the same things. While 18-wheelers provide a lot of flexibility in the freight world, it takes 5–7 times more energy to ship a ton of goods on a truck than on rail. Trucks and buses might also benefit from their own dedicated lanes where they are not caught up in as much stop and go traffic, making highways safer as well.

For these various new options to work, two key resources are needed: the money to fund them and the willingness to use them. Thankfully, in many cases, a system that makes sure people and products carry the full cost of their travel can help with both. Whether it is insurance, wear and tear on highways and bridges, or the costs of the pollution produced from tailpipes, charging per mile rather than per year or per gallon can create both a revenue stream for the needed investments and a more direct incentive to try out the newly available approaches. Some examples of these approaches include:

  1. Pay as you drive insurance: If you drive less, you are less likely to get into an accident. Paying for insurance by the mile rather than just by the car would both provide a more equitable distribution of insurance payments and encourage people to drive less.
  2. Per mile road user fees: Current highway construction and maintenance costs, and some transit costs, are covered by per gallon fuel taxes. Because fuel efficiency must go up, projected tax receipts will go down compared to a business as usual scenario. Per mile road user fees, adjusted to vehicle weight, could maintain a steadily growing revenue stream to keep our roads and bridges from falling apart while encouraging consumers and corporations to seek less expensive alternatives.
  3. Per mile pollution or congestion fees: Accidents and wear and tear are not the only costs associated with every mile we drive. Per mile pollution and congestion fees can become steady funding sources to hold people responsible for the damage they create while creating a funding stream for alternatives, plus they would provide another incentive to drive less. Per mile pollution and congestion fees tied to air travel and freight could be great ways to finance high-speed rail or simply much needed reinvestment into the country’s conventional rail infrastructure.
  4. Location efficient mortgages: Current tax codes give consumers the same break on their mortgage interest no matter where they live. While these tax breaks have helped many live out the American dream of owning a house, they have also helped lower the cost of owning homes that are farther from where people work, increasing daily travel. Revamping that tax code to provide greater tax breaks for those who live closer to work or transit will still help people realize a part of the American dream while ensuring it does not become a nightmare of pollution and congestion. This is not intended to be an exhaustive list, but instead points the way to policies and practices that could help cut projected personal travel by 25 to 35% percent by 2050 (15 to 20% by 2030) and could contribute to reducing the amount of freight that is trucked by 20% or more by 2050.
  5. Even more innovative approaches, such as reserving downtown areas for walking, biking, and public transit, or directly integrating our personal and freight vehicles with a mass transit system, could be part of a smart growth revolution that allows us to rethink how we move people and goods.

If we combine all of the approaches above for our light-duty cars and trucks, then by 2050 we will still need to supply the equivalent of 80 to 110 billion gallons of gasoline with 70–80% less global warming pollution than today’s fuel. For medium and heavy duty trucks, we will need the equivalent of another 30 to 40 billion gallons of gasoline with 75–80% less global warming pollution. And for the remainder of the transportation sectors, we will need yet another 40 to 50 billion gallons of low carbon fuel. That means, by 2050, we will need the equivalent of 150 to 200 billion gallons of gasoline with as much as an 80% reduction in global warming pollution compared to today’s gasoline.

Biofuels will play an important part in a low carbon future, it is unlikely, at best, that we can sustainably produce sufficient low-carbon biofuel in the U.S. A more realistic estimate of sustainable biofuel potential, one that minimizes tradeoffs between food and fuel and does not encourage deforestation in other countries, would be closer to 40 to 50 billion gallons, unless breakthroughs are achieved in novel biomass resources. To supply the rest of transportation’s needed energy, we must to tap into renewable electricity and clean hydrogen. But these resources will not appear overnight, nor will the vehicles that must be sold to use these low-carbon fuels. We will need multiple policies to bring about the needed fuel revolution.

The U.S. needs to move away from a piecemeal approach to transportation energy and environmental policy and instead adopt a comprehensive set of policies that will tap into both the near term and long term solutions that are available or on the drawing boards. This will require a longer term perspective and a combination of consistent, significant, and sustained policies. Yes, we do need to rethink our transportation system, but in doing so, we will not only dramatically lower global warming pollution, we will save consumers billions, create new jobs in America and ultimately cut our addiction to oil.

Edward R. Hamberger, President & CEO, Association of American Railroads

Moving more freight by rail would also help reduce highway congestion, which costs $78 billion just in wasted travel time (4.2 billion hours) and wasted fuel (2.9 billion gallons) each year, according to the Texas Transportation Institute’s 2007 Urban Mobility Report. (The total costs of congestion are far higher if lost productivity, costs associated with cargo delays, and other items are included.) A typical train, though, takes the freight equivalent of several hundred trucks off our congested highways, thus enhancing mobility and reducing the amount of greenhouse gases emitted by motor vehicles stuck or slowed in traffic. Railroads also reduce the costs of maintaining existing roads and reduce the pressure to build costly new roads, freeing up limited funds for other purposes.

Train handling. In part, railroad fuel efficiency depends on how well an engineer handles a train. That’s why railroads use the skills of their engineers to save fuel. For example, many railroads offer training programs through which engineers and simulators provide fuel-saving tips. On some major railroads, the fuel consumption performance of participating engineers is compared, with awards given to the top ‘‘fuel masters.’’ In addition, railroads are using sophisticated on-board monitoring systems to gather and evaluate information on location, topography, track curvature, train length and weight, and more to provide engineers with real-time ‘‘coaching’’ on the best speed for that train from a fuel-savings standpoint.

Information technology. Many railroads use advanced computer software to improve their fuel efficiency. For example, sophisticated modeling tools identify the best way to sequence cars in a large classification yard. Railroads also use innovative ‘‘trip planning’’ systems that automatically analyze crew and locomotive availability, track congestion, the priority of different freight cars, track conditions, and other variables to optimize how and when freight cars are assembled to form trains and when those trains depart. The result is smoother traffic flow, better asset utilization, and reduced fuel use.

Idle reduction technology. Locomotives often have to idle when not in use to pre vent freezing, provide for crew comfort, or for other reasons. However, many railroads have installed idle-reduction technology that allows main engines to shut down under certain conditions. One advantage of genset locomotives is that their smaller engines use antifreeze, allowing them to shut down in cold weather. Railroads also use ‘‘auxiliary power units’’ to warm engines so that locomotives can be shut down in cold weather.

Components, maintenance, and design. Railroads use innovative freight car and locomotive components, maintenance programs, and designs to save fuel. For example, advanced lubrication techniques save fuel by reducing friction; the use of low torque bearings on freight cars and improving the aerodynamic profile of trains save fuel by reducing drag; and the use of ‘‘distributed power’’ (locomotives placed in the middle of trains) can, in certain applications, save fuel by improving operational efficiency.

Amtrak’s locomotive fleet is antiquated: its diesel switcher locomotive fleet is 40 years old; the average age of the AEM–7 electric fleet is 25 years, and its overhead electric catenary system in the Northeast Corridor is 1930s technology that does not allow Amtrak to take advantage of the improved efficiency of modern converter, transformer, and transmission designs. Passenger cars could be made lighter and more aerodynamic. These are all areas worthy of government investment that will pay huge dividends over the long term. Moreover, the implementation of high-speed rail corridors, if done in ways that minimize the substantial operational, engineering, legal, and other impediments that often hinder the ability of freight railroads to accommodate passenger trains, would go a long way in providing a realistic alternative to short-distance air travel and driving for millions of trips per year while significantly reducing the carbon footprint associated with that travel.

Senator LAUTENBERG.   Even with fuel efficiency improvements, airplanes will not be as efficient as trains, particularly for journeys of 400 miles or less, and particularly in highly populated areas. Doesn’t it make sense, environmentally as well as economically, to invest more in rail? Shouldn’t we be encouraging  the most efficient travel possible? And as it appears now, it’s rail.

Senator Barbara Boxer, California. Six of the Nation’s top ten freight gateways, which are centers for economic activity, will be at risk if sea levels rise. 60,000 miles of coastal highways already experience coastal storm flooding and wave action. This number is certain to increase with rising the sea levels, leaving communities vulnerable to ocean waves and cutting off evacuation routes.

ASSOCIATION OF AMERICAN RAILROADS

AAR subscribes to the following 11 Federal funding principles, which fall into three categories. The first 9 principles assure that Federal funding will create sustainable partnerships with public entities while maximizing the public benefits found in rail projects. The tenth promotes freight rail as a solution to looming transportation challenges. The eleventh clarifies that grade separations do little to benefit rail capacity or rail productivity.

  1. Federal funding and policies must not reduce and should encourage private investment in the Nation’s rail system.
  2. In all public-private partnerships, public benefits should be funded by public funds, and railroad benefits should be funded by railroad funds.
  3. The same funding principles should apply to projects involving other modes of freight transportation.
  4. If the Federal Government establishes a freight fund to fund public benefits of freight rail projects, funding should not be extracted from freight transportation providers or their customers or disadvantage the economics of rail transportation. Further, freight railroads should not be required to assess or collect any fees. The rail logistics system should not be saddled with increased costs to fund public benefits, either directly or through a freight fund.
  5. Federal fees associated with a freight fund should preempt state and local fees, unless there is mutual agreement among the parties.
  6. Any involvement by a rail carrier in public-private projects must be strictly voluntary.
  7. Federal funding of public benefits must not be in lieu of the enactment of Federal investment tax incentives for increased private investment.
  8. Federal funding must not be conditioned upon a change in the present economic regulation of the rail industry or other industry concessions.
  9. Federal funding must be executed in a manner that preserves the rail industry’s current ownership rights.
  10. Federal freight investment should focus on key transportation projects with significant public benefits, such as eliminating rail chokepoints, improving service to shippers, facilitating international trade, reducing greenhouse gas emissions, cutting vehicle miles traveled, and improving safety. Such projects should be selected based upon standardized, agreed-upon methodology.
  11. Grade separations must continue to be regarded as primarily beneficial to the highway/road user. They do little to increase freight rail capacity or improve rail productivity.

Comprehensive, reliable, and cost-effective rail service is critical to our nation, and that, in turn requires having adequate rail capacity. Railroads must be able to both maintain their extensive existing infrastructure and equipment and build the substantial new capacity that will be needed to meet much higher future freight and passenger transport demand. Our privately-owned freight railroads are working hard every day to help make sure America has the rail capacity it needs. They’re re-investing record amounts in their systems ($420 billion from 1980 to 2007, or more than 40 cents out of every revenue dollar), adopting innovative new technologies and operating plans, and forging partnerships with each other, other transportation providers, and customers. Policymakers can help ensure that more freight and passengers move by rail by addressing a number of serious impediments to meeting the rail capacity challenge.

Local Opposition to Rail Projects. Under existing law, state and local regulations (other than local health and safety regulations) that unreasonably interfere with rail operations are preempted by Federal regulations. These Federal regulations protect the public interest while recognizing that our railroads form an integrated, national network that requires a uniform basic set of rules to operate effectively. Nevertheless, rail expansion projects often face vocal, sophisticated opposition by members of affected local communities. In many cases, railroads thus face a classic ‘‘not-in-my-backyard’’ problem—even for projects for which the benefits to a locality or region far outweigh the drawbacks. In the face of local opposition, railroads try to work with the local community to find a mutually-satisfactory arrangement, and these efforts are usually successful. When agreement is not reached, however, projects can face seemingly interminable delays and sharply higher costs. Often, local communities allege violations of environmental requirements to challenge a proposed project, even though detailed environmental reviews, when required, already identify the impacts of rail projects and determine necessary mitigation measures. Railroads understand the goals of environmental laws and appreciate the need to be responsive to community concerns, but community opposition to rail operations can be a significant obstacle to railroad infrastructure investments, even when the opposition has no legal basis. Policymakers can help by taking steps to shorten the time it takes for reviews of rail expansion projects in ways that do not adversely affect the quality of those reviews.

If rail capacity needs are not properly addressed, by 2035 some 16,000 miles of primary rail mileage—nearly one-third of the 52,000 miles covered in the study—will be so congested that a widespread service breakdown environment would exist. (Today, less than 1% of rail miles are that congested.) Because our rail system is interconnected, this outcome would mean that America’s entire rail system would, in effect, be disabled.

One way to help bridge the funding gap is through tax incentives for rail infrastructure investments.

The 2007 1125/H.R. 2116 (the ‘‘Freight Rail Infrastructure Capacity Expansion Act of 2007) calls for a 25% tax credit for investments in new track, intermodal facilities, yards, and other freight rail infrastructure projects that expand rail capacity. All businesses that make capacity-enhancing rail investments, not just railroads, would be eligible for the credit. A rail ITC would addresses the central challenge of how to move more freight without causing more highway gridlock or environmental degradation. For a railroad considering whether to fund an expansion project, an ITC would reduce the cost of the project, raising the likelihood that the project will be economically viable. It would help worthwhile projects get built sooner, but would not be enough to cause economically-unjustified projects to go forward. An ITC would also stimulate the economy. U.S. Department of Commerce data indicate that every dollar of freight rail infrastructure investment that would be stimulated by a rail infrastructure ITC would generate more than three dollars in total economic output. Each $1 billion of new rail investment induced by the ITC would create an estimated 20,000 jobs nationwide. The benefits to our economy would be broad and long lasting. Policymakers should also support a short line tax credit. Since 1980, more than 380 new short lines have been created, preserving thousands of miles of track (much of it in rural areas) that may otherwise have been abandoned. In 2004, Congress enacted a 50% tax credit (‘‘Section 45G’’) for investments in short line track rehabilitation. The focus was on assisting short lines in handling the larger and heavier freight cars that are needed to provide their customers with the best possible rates and service. Since Section 45G was enacted, hundreds of short lines have rapidly increased the volume and rate of their track rehabilitation and improvement programs. Unfortunately, Section 45G expired in 2007. Pending legislation in Congress (S. 881/H.R. 1584, the ‘‘Short Line Railroad Investment Act of 2007’’) would extend this tax credit and thus preserve the huge benefits it delivers. Finally, a more pronounced use of public-private partnerships would help get more freight on our rails. Public-private partnerships reflect the fact that cooperation is more likely to result in timely, meaningful solutions to transportation problems than a go-it-alone approach. Without a partnership, projects that promise substantial public benefits (including reduced highway gridlock and highway construction and maintenance costs, reduced pollution and greenhouse gas emissions, and enhanced mobility) in addition to private benefits are likely to be delayed or never started at all because it would be too difficult for either side to justify the full investment needed to complete them. In contrast, if a public entity shows it is willing to devote public dollars to a project based upon the public benefits that will accrue, the private entity is much more likely to provide the private dollars (commensurate with private gains) necessary for the project to proceed. Partnerships are not ‘‘subsidies’’ to railroads. Rather, they acknowledge that private entities should pay for private benefits and public entities should pay for public benefits. In many cases, these partnerships only involve the public contributing a portion of the initial investment required to make an expansion project feasible, with the railroad responsible for keeping the infrastructure productive and in good repair.

JAMES M. TURNER, DEPUTY DIRECTOR, NATIONAL INSTITUTE OF STANDARDS AND TECHNOLOGY, U.S. DEPARTMENT OF COMMERCE

Supporting Innovation in Advanced Materials—Lightweight Materials and Nanocomposites

Automobiles and light trucks consume 79% of all U.S. distilled fuel. Lightweight materials are a big part of the solution to reduce our consumption. The Department of Energy, Office of Vehicle Technologies states that lightweight materials are needed to ‘‘offset the increased weight and cost per unit of power of alternative powertrains (hybrids, fuel cells) with respect to conventional powertrains.’’

The cement and concrete industry is a large generator of greenhouse gas, mainly carbon dioxide (CO2), during the manufacturing production process. One U.S. ton of cement produces about one ton of CO2 and the annual world production of cement—2.5 billion tons—is equal to a 3–9% estimated share of world man-made CO2. In 2006, the U.S. produced 96 million tons of cement and 37 million tons were imported for use in the U.S. It is estimated that 1.5% of U.S. man-made CO2 generation comes from concrete production. And while this is a large number, cement production is forecast to greatly increase over the next 20–40 years because of burgeoning demand for new and replacement infrastructure.

In the U.S., the energy efficiency of cement production is already high, and is probably only capable of fairly small improvements. One is limited to reducing the CO2 that is given off from the raw materials by partially substituting another material for the cement in concrete, such as the substitution of non-CO2 containing materials for a portion of the limestone in the raw materials. Around the world, the two most common minerals used to substitute for cement are fly ash and granulated ground blast furnace slag. The use of fly ash and slag in concrete can actually improve the properties of concrete, especially the durability. Let me highlight some of NIST’s work to address the needs of the concrete industry itself. All of our work will improve our understanding of how cement and concrete actually work, and ultimately should make possible improvements in the formulation and use of cement that could save hundreds of millions of dollars in annual maintenance and repair costs for concrete structures and the country’s infrastructure. This work should also lead to improving the properties and performance of concrete while decreasing energy costs and reducing the CO2 emissions from its production.

Cement may be the world’s most widely used manufactured material—more than two billion metric tons are consumed each year—but it also is one of the more complex. And while it was known to the Romans, who used it to good effect in the Coliseum and Pantheon, questions still remain as to just how it works, in particular how it is structured at the nano- and microscale, and how this structure affects its performance.

NIST researchers are investigating adaptive concrete technologies including internal curing and the incorporation of phase change materials into concrete to increase its service life. Field concrete is exposed to a wide variety of environmental conditions and distress. These environmental factors often result in premature degradation and/or failure. Examples include early-age cracking due to shrinkage and degradation as a result of repeated cycles of freezing and thawing, and deterioration due to damaging reactions of chemicals (chloride, sulfate, and alkali ions, etc.).

NIST is working to have a dramatic effect on the concrete industry through doubling the service life of new concrete by altering the composition of concrete. One of the main goals of high performance concrete is to increase service life. Under most chemical erosion scenarios, the service life of concrete depends on its reaction to external chemicals entering it. There are a number of ways to significantly increase the service life of concrete including reducing the porosity and adding mixtures to provide increased resistance to the infiltration of chemicals. Unfortunately, one of the side effects of these modifications is a large increase in the propensity for early-age cracking, and the desired barrier performance of a dense concrete is easily compromised by the formation of just a few cracks.

The time until the steel reinforcement in the concrete rusts is related to the depth of concrete cover, so that if you increase the thickness of concrete over the steel by 50%, you get approximately double the expected service life. More concrete covering the rebar may not be feasible because of design constraints, and both additional concrete and changing the composition to resist chemicals can add considerable cost to construction.

James M. Turner, deputy director, National Institute of Standards & Technology, U.S. Department of Commerce on Hydrogen

Getting an Accurate Fill-Up. Working very closely with State weights and measures organizations, NIST has long maintained the standard for ensuring that consumers actually receive a gallon of gas every time they pay for one. Now NIST researchers are incorporating the properties of hydrogen in standards that will support the development of hydrogen as a fuel in vehicles. One of the challenges in the use of hydrogen as a vehicle fuel is the seemingly trivial matter of measuring fuel consumption. Consumers and industry are accustomed to high accuracy when purchasing gasoline. Refueling with hydrogen is a problem because there are currently no mechanisms to ensure accuracy at the pump. Hydrogen is dispensed at a very high pressure, at varying degrees of temperature and with mixtures of other gases. NIST’s research and new technological innovations will enable accuracy in hydrogen fill-ups.

Technical challenges need to be overcome to make hydrogen-powered vehicles more practical and economical. Fuel cells need to operate as reliably as today’s gasoline engine. We need systems that can store enough hydrogen fuel to give consumers a comfortable driving range. We need science-based standards that will guide local officials in establishing codes for building and fire safety as they relate to something like a hydrogen fueling station. And we need a technical infrastructure to ensure the equitable sale of hydrogen in the marketplace, as exists today for gasoline.

Transporting and Distributing Hydrogen. One barrier to hydrogen is pipelines. There are currently 700 miles of hydrogen pipelines in operation—that is in comparison to 1 million miles of natural gas pipelines. To move to a nationwide use of hydrogen, safe and effective pipelines have to be developed.

Tests have to be developed to test for the degradation that is likely to occur to the metals that can be caused by hydrogen weakening the pipeline. By establishing the unique test facilities and standard test

Hydrogen Storage. Hydrogen is promoted as a petroleum replacement that presents an attractive alternative for fueling automobiles and trucks. A major roadblock associated with the use of hydrogen is the inability to store it efficiently. Hydrogen’s properties have been shown to embrittle metals and current storage technologies limit the potential range of hydrogen powered vehicles.

To develop fuel cells for practical use, NIST researchers are developing measurement methods to characterize the nanoscale structure and dynamics of polymer membranes inside the fuel cell to enable stronger fuel cells.

THOMAS J. BARRETT, VICE ADMIRAL, DEPUTY SECRETARY, DEPARTMENT OF TRANSPORTATION

DOT has, and is, undertaking research required for development of safety standards for future hydrogen vehicles and infrastructure. Over the last 5 years, the Administration has invested about $1.2 billion in hydrogen research and development to help bring hydrogen fuel cell vehicles to market.

Aviation is a somewhat unheralded but real success story in these areas. Compared to the year 2000, U.S. commercial aviation in 2006 moved 12% more passengers and 22% more freight, while actually burning less fuel and reducing our carbon input by a million tons. This is a result of airframe, power, and air traffic system improvements. U.S. airlines, in a very competitive market, have committed to another 30% improvement by 2025, a goal the industry adopted before the recent spike in fuel prices. I would urge caution in not hamstringing this flagship U.S. industry that has such global reach by imposed new emission regimes.

Clearly, anyone who has flown lately, though, can attest to the fact that we are always mindful of the indispensable role that transportation plays in sustaining and improving our economy, and supporting our trade, and the importance of transportation infrastructure to the millions of Americans who depend on it for their mobility and the competitiveness of their businesses.

References

CCSP. 2008. Impacts of Climate Change and Variability on Transportation Systems and Infrastructure: Gulf Coast Study, Phase I. A Report by the U.S. Climate Change Science Program and the Subcommittee on Global Change Research [Savonis, M.J., V.R. Burkett, and J.R. Potter (eds.)]. Department of Transportation, Washington, D.C., USA, 445 pp.

CCSP. 2008. Weather and Climate Extremes in a Changing Climate. Regions of Focus: North America, Hawaii, Caribbean, and U.S. Pacific Islands. A Report by the U.S. Climate Change Science Program and the Subcommittee on Global Change Research. Department of Commerce, NOAA’s National Climatic Data Center, Washington, D.C., USA, 164 pp.

Peterson, Thomas C., et al. 2008. Climate Variability and Change with Implications for Transportation, National Research Council, Washington, D.C., http://onlinepubs.trb.org/onlinepubs/sr/sr290Many.pdf, 90 pp.

NRC. 2008. The Potential Impacts of Climate Change on U.S. Transportation. National Research Council of the National Academy of Sciences, Transportation Research Board Special Report #290, National Research Council, Washington, DC, 218 pages.

 

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How much net energy return required to prevent collapse?

Preface. Charles Hall, one of the founders of EROI methodology, initially thought an EROI of 3 was enough to run modern civilization, which is like investing $1 and getting $3 back. But after decades of research, Hall concluded an EROI of 12 to 14 might be needed as illustrated in the figure below (Lambert and Hall 2014).

This will give you a good idea of what Hall means by EROI (Hall 2011):

  • If you’ve got an EROI of 1.1:1, you can pump the oil out of the ground and look at it.
  • If you’ve got 1.2:1, you can refine it and look at it.
  • At 1.3:1, you can move it to where you want it and look at it.
  • We looked at the minimum EROI you need to drive a truck, and you need at least 3:1 at the wellhead.
  • Now, if you want to put anything in the truck, like grain, you need to have an EROI of 5:1. And that includes the depreciation for the truck.
  • But if you want to include the depreciation for the truck driver and the oil worker and the farmer, then you’ve got to support the families. And then you need an EROI of 7:1
  • And if you want education, you need 8:1 or 9:1
  • And if you want health care, you need 10:1 or 11:1

We begin to go over the net energy cliff as soon around 14 if you consider the arts to be an essential component of civilization. Twelve is needed for healthy care, 9 or 10 for education, and 7 or 8 to support a family, so somewhere between 7 and 14 according to how you define civilization (Fig. 12).

Murphy (2013) found that society needed at least an EROI of 11. So much net energy is provided by any energy resource with an EROI of 11 or higher, that the difference between an EROI of 11 and 100 makes little difference. But once you go below 11, there is such a large, exponential difference in the net energy provided to society by an EROI of 10 versus 5, that the net energy available to civilization appears to fall off a cliff when EROI dips below 10 (Mearns 2008).

Weissbach (2013) found that it is not economic to build an electricity generating power source with an EROI of less than 7.

The EROI of Oil (Ahmed 2017)

The debate over the precise point of peak production of an energy resource can be ultimately misleading. Production levels do not reflect the quality of the energy being produced as measured by EROI. An analysis focusing only on rates and levels of production can mask the accelerating production costs, which rise due to the decline in resource quality, so that rising production is unable to meet the energy requirements of society due to plummeting EROI values.

This is shown in a major Royal Society study focusing on the declining EROI for global oil and gas production, which calculated that the latter’s EROI is roughly 15:1 and declining, and the U.S. EROI of oil and gas production is about 11:1 and declining. Most unconventional oil and biofuels is less than 10:1. It concludes: “… as the EROI of the average barrel of oil declines, long-term economic growth will become harder to achieve and come at an increasingly higher financial, energetic and environmental cost” (Murphy 2014).

Since the 1960s, EROI has declined, even as production increased, though its rate of increase declined and appears to be approaching plateaus on a number of fronts. This highlights the often overlooked relationship between EROI and production that underscores the extent to which seemingly accelerating production in the short-term, can itself be symptomatic of a geophysically catabolic process in the long-term.

As EROI declines, increasing costs are required to maintain production. As demand rises due to economic growth, production must increase to meet demand, therefore requiring further financial, energetic and environmental inputs. But to increase production to a level sufficient to meet demand while EROI is declining, means that even more quantities of energy are required simply to maintain production, and even higher quantities required to increase it. Accelerating inputs drive up the cost which causes a further decrease in EROI even while driving increased production. The trajectory of increasing production conventionally hailed by the industry as prima facie evidence of its barometer of health is in fact the prime indicator of the catabolic depletion of the resource in question (Murphy and Hall 2011).

This is why it is perhaps more useful to speak of the peak and decline of EROI as a measure of the health of the global energy system, and indication of its future trajectory. According to this measure, EROI for global oil and gas production peaked in 1999 and has since entered terminal decline (Gagnon et al. 2009). In this same period, although oil and gas production increased, the rate of increase dramatically slowed compared to previous decades. At the same time capital expenditures (capex) by the world’s oil majors increased over 10% every year, directly illustrating the self-catabolic process at play, consisting of heightening efforts to exploit the resource base resulting in declining EROI and flattening production (Brandt et al. 2015).

According to Jancovici, since the 1960s—which is when the EROI of the global fossil fuel system as a whole was at its highest according to most studies: “…the growth rate of the GDP per capita (world average) has been slowly—and constantly—decreasing…” (Jancovici 2013 ). In the decade after 1960, he calculates, GDP was increasing at +3.5% per year. For the decade after 1970, this rate of increase dropped to +2% per year. Over the last three decades, the rate of GDP growth dropped to +1.5% per year. And in the period following the 2007–8 financial crash up to 2012, it has dropped even further to 0.4% per year on average.

The steady decline in the rate of GDP growth thus correlates directly with the steady decline in EROI of production from the global fossil fuel resource base, even as energy production has continued to increase. However, as energy production has slowed down over the last decade since 2005—accompanying the shift to lower quality unconventional liquids—now approaching an undulating plateau, so too has GDP growth.

Keep in mind that it takes a HUGE amount of energy to make the exponentially increasing amounts of the following materials from increasingly lower grades of ores that are so essential for civilization as we know it today:

intensity-metals-cement-glass-plastic-paper-silicon-wafersGlobal energy cost of major materials in 2010. Source: Vaclav Smil. 2013. Making the Modern World: Materials and Dematerialization. Wiley.

Excerpts from the Lambert and Hall (2014) paper follow.

Alice Friedemann  www.energyskeptic.com Women in ecology  author of 2021 Life After Fossil Fuels: A Reality Check on Alternative Energy best price here; 2015 When Trucks Stop Running: Energy and the Future of Transportation”, Barriers to Making Algal Biofuels, & “Crunch! Whole Grain Artisan Chips and Crackers”.  Podcasts: Crazy Town, Collapse Chronicles, Derrick Jensen, Practical Prepping, KunstlerCast 253, KunstlerCast278, Peak Prosperity

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Lambert, Jessica G., Hall Charles A. S. et al. 2014. Energy, EROI and quality of life. Energy Policy 64:153–167

societys hierarchy of energetic needs eroi 12-14

 

Fig. 12. “Pyramid of Energetic Needs” representing the minimum EROI required for conventional oil, at the well-head, to be able to perform various tasks required for civilization. The blue values are published values, the yellow values increasingly speculative. Each increment in EROI allows more and more work to be done. EROI chart from “EROI of Global Energy Resources Preliminary Status and Trends” Jessica Lambert, Charles Hall, Steve Balogh, Alex Poisson, and Ajay Gupta State University of New York, College of Environmental Science and Forestry

Abstract.  The near- and long-term societal effects of declining EROI are uncertain, but probably adverse.  To evaluate the possible linkages between societal well-being and net energy availability, we compare these preliminary estimates of energy availability: (1) EROI at a societal level, (2) energy use per capita, (3) multiple regression analyses and (4) a new composite energy index (Lambert Energy Index), to select indicators of quality of life (HDI, percent children under weight, health expenditures, Gender Inequality Index, literacy rate and access to improved water). Our results suggest that energy indices are highly correlated with a higher standard of living.

1. Introduction

Humans, as well as our complex societies, require food energy and now massive amounts of external energy to survive and reproduce. For all organisms it is the net energy, or the energy available to an organism or a society after investments to obtain that energy, that is important, indeed that may be the most important factor in determining the long-term survival and wellbeing of humans and society. The history of human cultural advancement can be examined from the perspective of the development of energy resources and the evolution of energy conversion technologies. Energy provided by the burning of fossil fuels has fostered the expansion of economic, social and environmental development. The availability of energy and the increased efficacy with which it is used has enabled humans to enhance their comfort, live longer and increase their numbers.

Because energy is used directly and indirectly in the production of all goods and services, energy prices have a significant impact on nearly every facet of economic performance. Economic analyses indicate that decline in the rate of increase in energy availability is likely to have serious effects. There is a strong correlation between per capita energy use and social indicators such as the UN’s Human Development Index.

1. 1. Quality of energy. The quality of a unit of energy is the usefulness of that energy unit to society. The amount of work that can be performed by an available unit of energy (not used directly or indirectly in the acquisition of the next unit of energy) influences the perception of quality but is not the only factor in ascertaining that unit of energy’s usefulness. For example, hydropower creates electricity that has greater economic utility than a similar amount of heat energy. However, electricity is less useful for smelting ore as it would need to be translated into thermal energy for this task and would lose a good deal of its special properties in this process. Energy return on investment (EROI) is one measure for establishing the quality,

We use EROI as a gauge of the effectiveness of human activity intended to satisfy fundamental physical needs, assist in achieving a sense of mental and psychological well-being, and accomplish the higher aspirations associated with the best of what the human species has to offer. Studies of early human culture suggest that hunter gatherers have a relatively large energy surplus (i.e. an EROI of 10:1), which allowed them to spend a great deal of time in leisure activities. Just as with the !Kung, the larger the surplus, i.e. the higher the EROI, the greater the societal welfare that can be generated. Hence the higher the EROI of a society, the greater the contributions possible to quality of life.

Anthropologist White (1959) was among the first to recognize the importance of surplus energy for art, culture, progress and indeed all the trappings of modern civilization.

Modern humans invest their own energy plus an enormously larger quantity of fossil fuel to produce food, to generate leisure and to do the plethora of activities and attributes we associate with modern society. Whether increased GDP is required is implicit but not proven: one can imagine a causative chain: higher EROI –> higher GDP –> higher social well-being.

An economy without sufficient domestic fuels of a type that it needs, such as oil for transport, must import these fuels and pay for them using an externally-accepted currency via some kind of surplus economic activity. This is especially the case if and as the nation develops industrially. Oil is usually the fuel of choice. The ability to purchase the oil used to maintain or grow an economy depends upon what an economy can generate to sell to the world, the oil required to grow or produce those products and their relative prices. Assume an economy that depends 100% on imported oil (e.g. for agriculture and transportation).

Costa Rica is an example. It has no domestic fossil fuels (although considerable hydroelectric power) but has a fairly energy-intensive economy, and to a large degree pays for its imported oil with exported agricultural products e.g. bananas and coffee. These are commodities highly valued in the world and hence readily sold. They are also quite energy-intensive to produce, especially when produced of the quality that sells in rich countries. Costa Rica’s bananas require an amount of money equivalent to about half of their dockside purchase price to pay for the oil and petrochemicals required for their production and cosmetic quality. These production expenses consume a large portion of the economic “surplus” necessary to generate hard currency to pay for imported petroleum.

1.4. EROI and the net energy cliff

Fig. 1 below illustrates the possible distribution of energy employed to produce energy (light grey) and the outcome of this process, the energy available to society (dark grey) for various fuel sources ranked according to their EROI values. As EROI approaches 1:1 the ratio of the energy gained (dark gray) to the energy used (light gray) from various energy sources decreases exponentially. High EROI fuels allow a greater proportion of that fuel’s energy to be delivered to society, e.g. a fuel with an EROI of 100:1 (horizontal axis) will deliver 99% of the useful energy (vertical axis) from that fuel to society. Conversely, lower EROI fuels delivers substantially less useful energy to society (e.g. a fuel with an EROI of 2:1 will deliver only 50% of the energy from that fuel to society). Therefore, large shifts in high EROI values (e.g. from 100 to 50:1) may have little or no impact on society while small variations in low EROI values (e.g. from 5 to 2.5:1) may have a far greater and potentially more “negative” impact on society.

Fig. 1. The “Net Energy Cliff”

 

 

 

 

 

 

 

 

 

The oil, gas and coal that dominate energy use today probably had EROI values greater than 30:1 to 100:1 in the past. Therefore, we did not need to be concerned with their EROIs or the potential political, economic and social ramifications of decreasing EROI values. Recently, we have become aware that the EROI and hence the amount of net energy available to society are in a general decline as the highest grade fossil fuel deposits are depleted .

“New” energy sources must be sufficiently abundant and have a large enough EROI value to power society, or much more time, effort, and attention must be paid to securing the next year’s supply of energy, leaving less money, energy, and labor available for discretionary purposes. The general decline in EROI for our most important fuels implies that depletion is a more powerful force than technological innovation

Carbon capture and sequestration (CCS) and the use of hydrogen fuel cells are topics of interest to the energy community but are not considered within this discussion as neither are methods of source energy production.

If the EROI values of traditional fossil fuel energy sources (e.g. oil) continue to decline and non-conventional energy resources fail to provide sufficient quantities of high EROI alternatives, we may be moving toward the “net energy cliff.” If EROI continues to decline over time, the surplus wealth that is used to perform valuable but perhaps less essential activities in a society (e.g. higher education, the arts, technologically advanced health care, etc.) will probably decline. Given this, we believe that declining EROI will play an increasingly important role in our future economy and quality of life.

1. 5. Quality of life indices. We hypothesize that access to cheap and abundant fuel is related to an individual’s and a society’s ability to attain a “higher quality of life, using some commonly used indicators of a society’s performance—the Human Development Index (HDI), percent of children under weight, average health expenditures per capita, percent of female literacy, Gender Inequality Index (GII), and improved access to clean water for rural communities. These values impart an array of environmental and social features that assist in defining the “quality of life” of the citizens of a nation.

The human development index (HDI) is a commonly used composite index of well-being and is calculated using four measures of societal well-being: life expectancy at birth, adult literacy, combined educational enrollment, and per capita GDP. It has a possible range of 0 to 1. The world’s most affluent countries in 2009 had HDI values above 0.7; these include Norway (.876), with the highest value, followed by Australia (.864), Sweden (.824), the Netherlands (.818), and Germany (.814). The lowest HDI values, below.35, tend to belong to the world’s least affluent countries (e.g. Ethiopia (.216), Malawi (.261), Mozambique (.155)).

Some scientists believe that energy scarcity is associated with constrained food production, poverty, limited production and conveyance of essential goods and services, and also generates strain on other limited environmental resources.

Results: Energy availability and quality of life

We find that many indices of human social well-being are well correlated with indices of energy availability and, as expected, GDP per capita. We also find that these quality of life indices are as well correlated with a composite index of energy use and distribution. Hence it appears that the quantity, quality and distribution of energy are key issues that influence quality of life.

3. 4. EROI for imported oil for developing countries. Developing nations, defined in this paper as those with an EROISOC of 20:1 or less, are also countries characterized as having high, and sometimes very high, population growth rates. As these populations grow and as the bulk of these people become increasingly located within cities, the task of feeding these urban dwellers becomes impossible without industrialized agriculture. Agricultural products, grown with high yield, tend to be especially energy-intensive whether grown for internal consumption or for export.

In addition, most of these emergent countries are developing their industries; exportation of agricultural and industrial products is often how they obtain foreign exchange to obtain needed industrial inputs. In general, as the GDP of a developing nation increases so does its energy use (or perhaps the converse). Consequently, for these and many other reasons fuel use in developing nations tends to increase rapidly. Most developing countries, however, do not have their own energy supplies, especially oil, which is needed to run their economic machine.

The implications for all nations

Traditionally, economists have viewed quality of life indices as a consequence of economic input and well-being. However we find that EROISOC and per capita energy use are as strong a statistical predictor as traditional economic indices. Both energy per capita and EROISOC are independent measures of the influence of energy availability on the ability of an economy to do work, which includes the generation of economic well-being and “quality of life.

The process of developing fuel-intensive domestic industries to generate exports has worked reasonably well for many developing nations in the past when the price of oil was low compared to the prices of exports. However, the trends suggested by our data imply that the increasing oil prices observed over the past decade, if they continue, will impact developing nations and their ability to produce goods substantially. When oil prices increase, these oil importing nations are “stuck” with the industrial investments that the people of that nation have become dependent upon. For a nation without domestic sources of fossil fuels, an environment of rising imported energy prices relative to price of exports obligates that nation to dedicate more and more of its production (and therefore energy use) to obtain the next unit of energy needed to run the economy. Large and increasing populations, mechanized agriculture and industrialization all are making developing nations increasingly dependent on foreign fuels. When the ratio of the price of oil to exports is low, times are good. When, inevitably, the relative price of oil increases things become much tougher. Once a developing nation steps on to this “fossil fuel treadmill,” it becomes difficult to step off. If the price of oil continues to increase and hence the EROIIO declines, this is likely to correspond to lower quality of life indices for the citizens of these nations. Specifically, health expenditures per capita, HDI and GII are likely to decline.

Certainly history is littered with cities and entire civilizations that could not maintain a sufficient net energy flow, showing us that certain thresholds of surplus energy must be met in order for a society to exist and flourish. As a civilization flourishes and grows it tends to generate more and more infrastructure which requires additional flows of energy for its maintenance metabolism. The concept of a hierarchy of “energetic needs” required for the maintenance and perhaps growth of a typical “western” society is somewhat analogous to Maslow’s “pyramid of (human) needs”. Humans must first meet their physiological and reproductive needs and then progressively less immediate but still important psychological needs. Like Maslow’s vision of a system of human hierarchical needs, a society’s energy needs are hierarchically structured. In this theory, needs perceived as “lower” in the hierarchy, e.g. extraction and refining of fossil fuels, must be satisfied before needs “higher” in the hierarchy become important at a societal level. For example, the need to first extract and then refine fuels must be met in order to meet the need for transport of that energy to its point of use. In Western society, the energy required to e.g. grow and transport sufficient food cannot be met without first fulfilling these first 3 needs (i.e. extraction, refining and transport of those fuels to their point of use). Energy for the support required for the maintenance of a family, the provision of basic education for the next generation of citizens, and healthcare for all citizens follows the hierarchical structure; each progressive level of energy needs requires a higher EROI and must be fulfilled before the next can be met. Discretionary use of energy e.g. the performing arts and other social amenities can be perceived as a societal energetic necessity only once all levels beneath this are fulfilled. The rating of importance of “the arts” probably is related to the socio-economic position that individuals or societal groups hold and may be operative only for those at the top of that society. A society’s pyramidal hierarchy of energetic needs represents the relative importance of various components of a society, ranked by importance to human survival and well-being, and the quality of energy devoted to the production and maintenance of infrastructure required to support those components of society. The specific and concrete nature of the lower levels may appear increasingly obscure and ambiguous to those at “higher” levels but is absolutely essential for their support.

As we use up our best fossil fuels and the EROI of traditional fossil fuels continues to decline countries with currently high EROISOC and energy use per capita values may find themselves in a deteriorating position, one with lower EROI SOC and energy use per capita. Policy decisions that focus on improving energy infrastructure, energy efficiency and provide additional non-fossil fuel energy sources (e.g. nuclear) within these nations may stem the tide of declining energy quality.

Most alternatives to oil have a very low EROI and are not likely to generate as much net economic or social benefit. Improving the efficiency at which their economies convert energy (and materials) into marketable goods and services is one means of improving energy security.

There is evidence too that once payments for energy rise above a certain threshold at the national level (e.g. approximately 10 percent in the United States) that economic recessions follow.

References

Brandt, Adam R., Yuchi Sun, Sharad Bharadwaj, David Livingston, Eugene Tan, and Deborah Gordon. 2015. Energy Return on Investment (EROI) for Forty Global Oilfields Using a Detailed Engineering-Based Model of Oil Production. PLOS ONE 10(12): e0144141.

Gagnon, Nathan, Charles A.S. Hall, and Lysle Brinker. 2009. A Preliminary Investigation of Energy Return on Energy Investment for Global Oil and Gas Production. Energies 2(3): 490– 503.

Hall, C.A.S. 2011. Introduction to special issue: Sustainability: special issue on EROI. pp 1773-1777 (also see Hall’s new book: 2017. Energy Return on Investment: A Unifying Principle for Biology, Economics, and Sustainability. Springer.)

Jancovici, Jean-Marc. 2013. A Couple of Thoughts in the Energy Transition. Manicore. http:// www.manicore.com/anglais/documentation_a/transition_energy.html

Murphy, David J., and Charles A.S. Hall. 2011. Energy Return on Investment, Peak Oil, and the End of Economic Growth. Annals of the New York Academy of Sciences 1219(1): 52–72.

Murphy, David J. 2014. The Implications of the Declining Energy Return on Investment of Oil Production. Philosophical Transactions of the Royal Society of London A: Mathematical, Physical and Engineering Sciences 372(2006): 20130126.

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Will perovskite solar cells ever work out?

Van Noorden, R. September 24, 2014. Cheap solar cells tempt businesses. Nature #513 470-471.

[Excerpts. Of interest because rarely do obstacles get mentioned in the news. Most are optimistic hype making it sound like a solution to the energy crisis is just around the corner. And forget that electricity does not solve our main problem — heavy-duty trucks, locomotives, and ships run on diesel fuel — not electricity. Batteries for heavy-duty transport vehicles are so large the vehicle would barely move, and overhead lines are not practical over millions of acres of farmland, or other off-road logging-trucks, mining trucks, etc., nor could wires be strung over 4 million miles of roads, requiring trucks to have yet another power system after getting off the wires to get to their destination, which doubles the price of the truck].

Large, commercial silicon modules convert 17–25% of solar radiation into electricity, and much smaller perovskite cells have already reached a widely reproduced rate of 16–18% in the lab — occasionally spiking higher.

The cells, composed of perovskite film sandwiched between conducting layers, are still about the size of postage stamps. Seok says that he has achieved 12% efficiency with 10 small cells wired together.

Six reasons why perovskite cells might not be The Next  Big Thing:

  1. To be practical, they must be scaled up, which causes efficiency to drop.
  2. Doubts remain over whether the materials can survive for years when exposed to conditions outside the lab, such as humidity, temperature fluctuations and ultraviolet light.
  3. Researchers have also reported that ions inside some perovskite structures might shift positions in response to cycles of light and dark, potentially degrading performance.
  4. The need for complex engineering might create another setback, says Arthur Nozik, a chemist at the University of Colorado Boulder. After plummeting in past years, the price of crystalline silicon modules — which make up 90% of the solar-cell market — has leveled off but is expected to keep falling slowly. As a result, most of the cost of today’s photovoltaic systems is not in the material itself, but in the protective glass and wiring, racking, cabling and engineering work.
  5. When all these costs are factored in, perov­skites might save money only if they can overtake silicon in efficiency. In the short term, firms are focusing on depositing the films on silicon wafers, with the perovskites tuned to capture wavelengths of light that silicon does not. On 10 September, Oxford PV announced that it was working with companies to make prototypes of these ‘tandem’ cells by 2015, and that this could boost silicon solar cells’ efficiencies by one-fifth, so that they approach 30%. Malinkiewicz’s hope is to find a niche that silicon cannot fill: ultra-cheap, flexible solar cells that might not last for years, but could be rolled out on roof tiles, or used as a portable back-up power source.
  6. There is another potential snag: perovskites contain a small amount of toxic lead, in a form that would be soluble in any water leaching through the cells’ protection. Although Snaith and others have made films with tin instead, the efficiency of these cells is only just above 6%.

 

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Oil shocks and the potential for crisis U.S. House 2007

oil shockwave 2007 oil on firePreface. There have been two oil shockwave “oil crisis stimulations”, summaries of both from 2005 and 2007 are below.  Oil Shockwaves confront a mock U.S. cabinet with highly plausible geopolitical crises that trigger sharp increases in oil prices. Participants must grapple with the economic and strategic consequences of this ‘oil shock’ and formulate a response plan for the nation.” In 2007 some of the participants were Robert Rubin, former secretary of the Treasury, Carol Browner (former head of the EPA), Richard Armitage former deputy secretary of state, Retired General Abizaid, John Lehman, former secretary of the Navy, Gene Sperling former national economic advisor, Philip D. Zelikow executive director of the 9/11 commission, and Daniel Yergin.

Here are a few good points before the longer versions of these exercises:

ADMIRAL DENNIS BLAIR, USN (RET.), Former Commander in Chief, U.S. PACIFIC COMMAND

I spent more than three decades in the U.S. Navy…[where] my driving imperative was to protect the blood and treasure of the American people. When I look at the dangers facing the country now, it is impossible to ignore the looming and worsening menace of oil dependence. Senior officers throughout the military share this concern. They know that increasing dependence on overseas oil is putting a strain on U.S. military forces and saddling them with costly missions for which they were not designed.  The use of large scale military force in volatile regions of underdeveloped countries is difficult to do right, has major unintended consequences and rarely turns out to be quick, effective, controlled and short lived.

No amount of military force can alter the fundamentals of oil dependence. Oil is the life-blood of our economy. … In the event of an oil crisis, the economic consequences will be severe, and they will impact hundreds of millions of average Americans.

America’s oil dependence threatens the prosperity and safety of the nation.  The President and Congress must immediately implement a long-term strategy for reducing America’s oil dependence. All Americans must become more aware of the dangers of oil dependence and more involved in efforts to address this vulnerability.

Despite the promise of alternatives, America cannot hope to grow enough biofuels to obviate the need for improved fuel economy. Nor can we expect to derive security from vague promises of leap-ahead technologies.

I have talked to the car companies, and they say that the American people do not want more efficient cars; they want more powerful cars with more cup holders, so therefore, we have to give it to them.  I do not have a lot of sympathy for these car companies, because the price of that oil that we are using does not reflect the full price of the American troops who are doing all of this business around the world. If you factored in the real price of that oil, it would be huge, and frankly, I am sorry. It is not up to the car companies to make that judgment. It is up to the leaders of the American people to make that judgment.

EDWARD J. MARKEY, MASSACHUSETTS, CHAIRMAN. Forty-five percent of the world’s oil is located in Iraq, Iran, and Saudi Arabia; and almost two-thirds of known oil reserves are in the Middle East….each day carries with it the possibility of major oil supply disruptions, leading to economic recession and political or military unrest. [America spends $5 billion a week on oil, funds which]  end up in the pockets of Arab princes and potentates who then funnel the money to al Qaeda, Hezbollah, Hamas and other terrorist groups. With that kind of money at stake, it is no coincidence that we have 165,000 young men and women in Iraq right now, and it is no surprise that much of our foreign policy capital also happens to be spent in the Middle East.

The single biggest step we can take to curb our oil dependence and remove OPEC’s leverage is to raise the fuel economy standards of our automotive fleet. ..and require the President to adopt a nationwide oil savings plan that will achieve a total savings of 10 million barrels of oil per day by 2031.

EMANUAL  CLEAVER, MISSOURI. … if things go further awry, Pakistan could completely destabilize the Middle East in ways that Iraq never could. … it occurred to me that, even in the midst of all of these developments in the Middle East, that we are not, even after the Al Gore film and all of the discussions, we are not retreating from our appetite for oil…. You know, we talk about it, and then we just continue to splurge. This is chilling.

Carole BROWNER, former administrator at the EPA. The role that I was assigned [in the Oil SchockWave scenario] was Secretary of Energy. In this position I was supposed to suggest a series of short-term steps that could be taken by the American public to reduce oil use. [So] I said we could impose a 55-mile per hour speed limit, which would save 134,000 to 250,000 barrels of oil a day,  year-round daylight savings time to save 3,000 barrels per day, and a Sunday driving ban to save 475,000 barrels of oil per day.  The other Cabinet members  rejected these ideas. They did not think they would be acceptable to the American people.    [Another] debate unfolded when I said we should access the Strategic Petroleum Reserve (SPR).  That got complicated in a hurry, because the Secretary of Defense said [the SPR] was the Navy’s.   So suddenly we couldn’t find common ground on whether or not to take advantage of the SPR. The individuals representing the Department of State and Department of Defense also raised the issue of whether or not the military gets the first rights to the SPR, as opposed to the American people. And the concern they were focused on was, with growing unrest in the world in this scenario, would they have to deploy additional troops and therefore be in need of additional oil and should they get a first call on it?

JOHN J. HALL, NEW YORK. It seems to me like we are going down a road where citizens of the United States, have never understood what it is like to be in a position like Brazil was in in the 1970s, for instance, where the world financial markets dictated to them certain things they had to do or else they would not get their next round of debt floated. So I think we need to be aware of that, that oil and our consumption of oil, is putting us in that position.

Alice Friedemann  www.energyskeptic.com  Author of Life After Fossil Fuels: A Reality Check on Alternative Energy; When Trucks Stop Running: Energy and the Future of Transportation”, Barriers to Making Algal Biofuels, & “Crunch! Whole Grain Artisan Chips and Crackers”.  Women in ecology  Podcasts: WGBH, Planet: Critical, Crazy Town, Collapse Chronicles, Derrick Jensen, Practical Prepping, Kunstler 253 &278, Peak Prosperity,  Index of best energyskeptic posts

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NCEP (2005) Oil Shockwave. Oil Crisis executive simulation. National Commission on Energy Policy

Nine former White House cabinet and senior national security officials convened to advise an American president as the nation grapples with an oil crisis over a seven-month period, including Robert M. Gates, former director of CIA and R. James Woolsey, former director of CIA

Summary: High concentrations of oil in unstable and undemocratic regions, rapidly growing global demand, low spare production capacity, and a significant likelihood of future supply disruptions due to terrorism, political unrest, or other factors, all but guarantee continued price volatility and pose a growing threat to the U.S. and world economy and to our national security. Addressing this vulnerability constitutes one of the preeminent energy, economic, and national security challenges of our time. We must act now.

Key Findings

  • A change in supply or demand of oil anywhere will affect prices everywhere.
  • Given today’s precarious balance between oil supply and demand, taking even a small amount of oil off the market could cause prices to rise dramatically. In Oil ShockWave, a roughly 4 percent global shortfall in daily supply results in a 177 percent increase in the price of oil (from $58 to $161 per barrel).
  • Oil price shocks of this magnitude could do significant damage to the U.S. economy. In Oil ShockWave, the economy goes into recession and there are millions of fewer jobs as a result of sustained higher oil prices.
  • U.S. foreign and military policy is influenced and often constrained by our oil dependence. Military options offer little recourse in the event of a supply crisis. Oil ShockWave participants repeatedly found that military intervention was not only unfeasible given existing U.S. commitments, but unlikely to be effective in responding to the scenarios they confronted, even when requested by a host government.
  • The U.S. is vulnerable to attacks on key energy infrastructure both at home and abroad. Because this energy infrastructure is simply too vast to protect, we must reduce demand, develop petroleum alternatives, and promote fuel diversity.
  • Political unrest and the associated risky investment conditions in key oil producing countries may pose a greater threat to the long-term stability of world oil markets than terrorism.
  • America’s Strategic Petroleum Reserve (SPR) offers some protection against a major supply disruption, but that protection is limited in both scope and duration. Emergency reserves cannot sustain the U.S. through a prolonged crisis. In addition, Oil ShockWave revealed that it is extremely difficult to reach consensus on when it is appropriate to use the SPR.
  • Global oil markets are currently dependent on Saudi Arabia’s ability to serve as supplier of last resort to offset demand increases or supply shortfalls elsewhere. Given existing terrorist threats and political tensions in Saudi Arabia, this situation creates significant and potentially damaging global vulnerabilities
  • Once oil supply disruptions occur, short-term options for protecting the U.S. economy—like tapping the SPR and implementing emergency demand measures—are limited. In addition, these options are generally not sustainable for more than a few months to a year.
  • The challenge is to act now to develop long-term policies and to create more effective options for managing the medium-term impacts—years 2 through 10—of a major oil crisis.

Where we Stand Today

The transport sector alone relies on oil for 97% of its energy needs and accounts for 68% of overall U.S. oil demand. Because the transport sector remains nearly wholly dependent on oil, consumers cannot quickly reduce consumption in response to higher prices.

The U.S. is the world’s largest consumer of oil. It accounts for 25% of global daily consumption1, but holds less than 3% of the world’s proved oil reserves. The Middle East, by contrast, holds between 57 and 65 percent of the world’s proved oil reserves.
Oil production in the U.S. has been in gradual decline since 1970 and this decline is projected to continue. At the same time, oil imports have increased steadily and now account for 58 percent of total U.S. consumption. This trend is also expected to continue.
U.S. and world demand for oil are expected to increase substantially over the next 10 to 20 years. Demand in the U.S. is expected to grow by 40 percent—from 20 million barrels per day [mbd] to 28 mbd—between 2002 and 2025. World demand is projected to increase even more substantially, by more than 50 percent—from 78 mbd to 120 mbd—over the same period.
The world will increasingly rely on opec nations, particularly Saudi Arabia, to supply the oil needed to meet future demand. The federal Energy Information Administration (eia) projects Middle East opec production to increase from 21 mbd in 2003 to 38 mbd by 2025 (an 81 percent increase)

Demand growth is likely to be especially strong in developing countries, notably China and India. This growth is already having an effect on world oil markets, where the price per barrel has more than doubled between 2003 and 2005.

 

House 110-19. November 7, 2007. Oil Shock: Potential for Crisis. U.S. House of Representatives.

ADMIRAL DENNIS BLAIR, USN (RET.), FORMER COMMANDER IN CHIEF, U.S. PACIFIC COMMAND

On November 1, in partnership with the Bipartisan Policy Center, SAFE conducted Oil ShockWave, an executive crisis simulation developed over the last two years to illustrate the strategic dangers of oil dependence. Oil Shockwave confronts a mock U.S. cabinet with highly plausible geopolitical crises that trigger sharp increases in oil prices. Participants must grapple with the economic and strategic consequences of this ‘oil shock’ and formulate a response plan for the nation.

I want to stress that ShockWave is not a prediction of the future. It is a simulation that demonstrates how an oil crisis could develop. But the scenario is based on facts—and dangers—that are already exist today. Designed by finance, energy, industry, and national security experts, Oil ShockWave cannot be dismissed as sensationalism. The scenario that was played out last week involved violence and unrest in Azerbaijan and Nigeria along with worsening diplomatic relations with Iran. Though set in 2009, these events could have been ripped from today’s headlines.

Last week’s event featured former Treasury Secretary Robert E. Rubin, former Deputy Secretary of State Richard L. Armitage, former CENTCOM Commander General John P. Abizaid (U.S. Army, Ret.), former Secretary of the United States Navy and 9/11 Commission Member John F. Lehman, former White House Press Secretary Mike McCurry, former National Economic Advisor Gene Sperling, former EPA Administrator Carol Browner, 9/11 Commission Executive Director Dr. Philip D. Zelikow, and Pulitzer Prize-winning author Daniel Yergin.

Let me give you a brief synopsis of Oil ShockWave. In May of 2009, violence in the Baku, the capital of Azerbaijan, disrupts a major oil pipeline carrying about 1 million barrels per day to the Turkish Mediterranean port of Ceyhan. With spare capacity lacking, markets fear a supply crunch if the pipeline remains out of action. The news causes about a 12% spike in oil prices in a single day. Shortly thereafter, unrest in the Niger delta of Africa cuts off an additional increment of oil production. Iranian events compound these problems in subsequent weeks. Faced with the prospect of harsh economic sanctions from the U.S. and the European Union (EU), Iran announces that it will immediately reduce its oil exports by 350,000 barrels per day, and that further reductions are possible unless the U.S. and EU abandon the sanctions process. The move reduces spare capacity below half-a-million barrels per day. Oil prices spike to $145. When Venezuela announces it will join Iran by matching its production cut, oil prices climb to $160. The whole simulation covers four months. By the end of Oil ShockWave, events have disrupted 1% of world oil production—hardly an inconceivable shortfall given the threats directed at the world’s far-flung oil production and distribution network. As for the geopolitical and economic impacts, they, too, were vetted by experts for realism, but that doesn’t make them any less frightening: oil prices reach $160 per barrel. Gas prices soar to over $5.00 per gallon. Double-digit inflation ensues, and the U.S. and world economies teeter on the edge of recession.

I spent more than three decades in the U.S. Navy. My missions changed but my motivation never did; my driving imperative was to protect the blood and treasure of the American people. When I look at the dangers facing the country now, it is impossible to ignore the looming and worsening menace of oil dependence. Senior officers throughout the military share this concern. They know that increasing dependence on overseas oil is putting a strain on U.S. military forces and saddling them with costly missions for which they were not designed.

The use of large scale military force in volatile regions of underdeveloped countries is difficult to do right, has major unintended consequences and rarely turns out to be quick, effective, controlled and short lived.

The Persian Gulf is just about on the other side of the world from the United States. It takes more than 3 ships in the U.S. Navy to keep one ship on station: one there, one going, one coming. Pretty much the same ratio holds for airplanes and, as we are learning in Iraq, for soldiers and Marines. You just got back, you’re there or you’re getting ready to go again. A major military presence in the Gulf region raises local resentments and dangers that work against what the U.S. is trying to achieve. This is not just a post-9/11 phenomenon. It was true well before 9/11 in terms of the effect of major U.S. military forces staged or spending large amounts of time in the Gulf region. So after all this major military effort, what’s the bottom line? Gas is pushing $3 a gallon, we’re extending the tours of soldiers in the Gulf region to 15 months, and we’re more subject to events in the Persian Gulf than we ever were in the past.

Now, why has American security policy developed in this way? The fast pace of operations in the region has given little pause for reflecting on overall trends and effectiveness. American forces have been engaged in the Middle East since the tanker wars of 1987, and events have seemed to demand increasing our military force, not reducing it. But driving this engagement is America’s ever growing dependence on petroleum. This dependence has influenced successive administrations to strengthen military engagement rather than to search for other means—perhaps politically more difficult but in the long run more cost-effective means—for boosting energy security.

No amount of military force can alter the fundamentals of oil dependence. Oil is the life-blood of our economy. We consume more than 20 million barrels of oil per day, a quarter of the world total. More than 60% of the oil we use is imported. Nearly 70% of our oil consumption goes toward transportation, which relies on oil-based fuels for 97% of its delivered energy. In the event of an oil crisis, the economic consequences will be severe, and they will impact hundreds of millions of average Americans. It was this state of affairs that caused me to join the Energy Security Leadership Council, a group of business leaders and retired senior military commanders who are committed to reducing U.S. oil dependence in order to improve national security and strengthen the economy. The Council was organized by Securing America’s Future Energy, or SAFE, a non-partisan group that is educating the public about the nation’s current state of energy insecurity.

Lessons of Oil ShockWave

  1. There is really no such thing as ‘foreign oil.’ Oil is a fungible global commodity. Thus, a change in supply or demand anywhere will affect prices everywhere.
  2. Oil markets are currently precariously balanced. As a result, even small disruptions can have dramatic effects. This means that a supply shortfall of approximately 1% could cause prices to surge.
  3. The price of crude oil may rise quickly as a result of a supply shock, especially when spare capacity is tight. It will not necessarily take much time to go from $90 to $160.
  4. Once oil supply disruptions occur, little can be done in the short term to protect the U.S. economy from its impacts. There are few good short-term solutions. For instance, efforts to restrict America’s driving habits through speed limits or bans on driving raise difficult questions about enforcement and, even if successful, their impact would be limited. As Oil ShockWave makes clear, such measures would be at odds with political calculations that are seemingly ever-present in today’s highly partisan Washington atmosphere.
  5. There are a number of supply-side and demand-side policy options available that would significantly improve U.S. oil security. Stronger fuel-economy standards, increased domestic oil production, and responsible development of alternative fuels and infrastructure are the most effective steps we can take, but their impact will not be felt for at least a decade.
  6. Foreign policy and military responses are limited, because oil dependence is major constraint on strategic flexibility. This is true for the U.S. and even more so for many of our major allies.
  7. The Strategic Petroleum Reserve (SPR), the emergency supply of federally owned crude oil stored in underground salt caverns, offers only limited protection against a major supply disruption. The ShockWave cabinet had to be concerned that any announcement of a release of oil from the SPR could actually contribute to an increase in oil prices by sending the message that U.S. government was declaring the onset of a crisis. Also, the military leaders objected to using the SPR for domestic purposes, arguing that it should be kept in reserve for use by the armed forces.
  8. The stability of the entire oil-based global economy is currently dependent on Saudi Arabia’s ability to increase production dramatically and over a short timeframe. But Saudi spare capacity may be completely absorbed by surging oil demand from countries like China and India. If that happens (and many indicators point in this direction), the global oil market will be especially fragile.

At the conclusion of the simulation, former Treasury Secretary Robert E. Rubin credited Oil ShockWave with demonstrating “the critical importance of preventative action in mitigating the risks of oil dependence.” This is a vital lesson. If, or rather, when the U.S. is faced with the next oil crisis, there will be no easy answers. Short-term responses such as tapping the Strategic Petroleum Reserve or implementing emergency demand measures are likely to be insufficient. Long-term policy options such as improving fuel economy, boosting domestic oil production, and promoting alternative fuels will be years away unless we set them in motion today.

In conclusion, let me tie things back to the policy objectives of the Committee: improved security will require greater conservation as well as increased production of petroleum and alternatives here at home. If we put these measures in place before a crisis hits, we will be less susceptible to being whip-sawed by events. We will not have to be on a hair-trigger for major military involvements. And we will be in a much better position to break the cycle of increasing oil dependence followed by increased deployments of major U.S. forces into volatile and underdeveloped regions where they are often poorly matched to the mission of oil security.

Having witnessed the attacks of September 11, 2001, we know all too well the cost of failing to address national security threats on our own terms, rather than those of our enemies. America’s oil dependence threatens the prosperity and safety of the nation. Continued policy paralysis is unacceptable precisely because we can take action to improve our energy security.

The President and Congress must immediately implement a long-term strategy for reducing America’s oil dependence. This is a grave national and economic security issue that demands the attention of our leaders from both parties. And responsibility cannot stop there. All Americans must become more aware of the dangers of oil dependence and more involved in efforts to address this vulnerability.

Energy security cannot be purchased with easy answers. Despite the promise of alternatives, America cannot hope to grow enough biofuels to obviate the need for improved fuel economy. Nor can we expect to derive security from vague promises of leap-ahead technologies. A new consensus must be forged on the anvil of tough choices using proven policy solutions. To this end, both political parties must move beyond the half-measures that have long stalled the pursuit of real energy security.

To minimize oil dependence and its associated national security risks, both political parties must discard the dogmatic approaches that have long hampered the pursuit of energy security. Those who oppose further oil exploration in the United States must recognize that the failure to press forward with the environmentally responsible development of domestic energy resources exacerbates the dangers of oil dependence. Refusing to develop secure sources of domestic production leads to an unnecessary over-reliance on imported oil, much of which flows from less stable parts of the globe. Aside from amplifying the potential risk of a supply interruption, the preference for imported oil unnecessarily transfers billions of dollars of the nation’s wealth to foreign lands.

Those who oppose vehicle fuel-economy standards must accept that the free market has not—and will not—adequately motivate the investments necessary to protect the nation in the event of an oil crisis. As such, mandating improvements in the fuel economy of our cars and trucks is one critical and unavoidable step that Americans must take if we are to halt our national descent into unmitigated oil dependence.

Congress is now negotiating the contours of a national energy bill in conference. As that bill is finalized, it is important to stress a key point: reforming and strengthening the Corporate Average Fuel Economy (CAFE) system is the single most important step we can take to reduce oil dependence.

To its credit, the Senate has already approved a proposal dramatically improving fuel-economy regulations. Rather than maintaining the one-size-fits-all corporate average that hampers the existing CAFE system and burdens Detroit’s Big Three, the Senate voted in favor of flexible standards that will allow each automaker to maximize competitive advantages while ensuring steady increases in the fuel economy of the entire fleet of new vehicles. By raising the fleet-wide fuel economy of new cars and trucks to 35 mpg by 2020, these new standards could save the U.S. one million barrels of oil per day in just over a decade. That’s about the same as the oil shortfall that was involved in the Oil ShockWave simulation. Oil savings would continue to rise after 2020, perhaps reaching three million barrels per day by 2030. That would mean vastly increased energy security for our children and grandchildren. This Senate has put forth a sound legislative proposal that will boost energy security for decades to come. Furthermore, the President has already indicated support for reforming fuel-economy standards and increasing them by 4% per year, a rate that is actually faster than the one contained in the Senate’s proposal. It is time for Congress to approve a comprehensive and meaningful energy bill that the President can sign.

EDWARD J. MARKEY, MASSACHUSETTS, CHAIRMAN. Forty-five percent of the world’s oil is located in Iraq, Iran, and Saudi Arabia; and almost two-thirds of known oil reserves are in the Middle East.

Events in that part of the world have a dramatic impact on oil prices and on our national security. In the late 1970s, the oil embargo, Iranian revolution, and Iran/ Iraq war sent the price of oil skyrocketing.

Yesterday oil surged to a new record of $97 a barrel, amid government predictions of tightening domestic inventories, bombings in Afghanistan and an attack on a Yemeni pipeline that took 155,000 barrels of oil off the markets. And with al Qaeda threatening to attack Saudi Arabia’s oil, with our continuing struggles in Iraq, and with yesterday’s announcement that Iran now has 3,000 operating centrifuges for enriching uranium, each day carries with it the possibility of major oil supply disruptions, leading to economic recession and political or military unrest.

The United States currently imports more than 60% of its oil. Oil has gone up more than $70 a barrel in the last 6 years, from $26 a barrel in 2001. Each minute, the United States sends $500,000 abroad to pay for foreign oil imports. That is $30 million per hour, $5 billion per week.  With the record prices of late, these figures will surely grow by year’s end. Much of these funds end up in the pockets of Arab princes and potentates who then funnel the money to al Qaeda, Hezbollah, Hamas and other terrorist groups.

With that kind of money at stake, it is no coincidence that we have 165,000 young men and women in Iraq right now, and it is no surprise that much of our foreign policy capital also happens to be spent in the Middle East.

Our energy policy has compromised our economic freedom, and the American people want action because they know that the price has become much too high.

Last week, a group of energy and military experts converged in Washington to conduct an energy security war game. But the truth is the scenario that unfolded didn’t really seem at all fictitious. Like today, the scenario began when oil prices had gone up to trade consistently in the $95 per barrel range. Like yesterday’s attack on the Yemeni pipeline, the first event leading to crisis involved an attack on the Baku pipeline. And also like today, Iran’s nuclear ambitions and U.S. efforts to contain them prove to be a complicated endeavor that requires us to maximize all of our diplomatic military and economic leverage.

The problem is, with oil, we have ALMOST NO leverage. The reality is that there are no good short-term options to help us deal with oil addiction. The United States is home to less than 3% of the world’s oil reserves. Sixty percent of the oil that we use each day comes from overseas.

Global oil production levels are at about 85 million barrels per day, with excess production capacity at only about 1.65 million barrels per day. Hurricane Katrina alone removed as much as 1.4 million barrels per day from supplies. The Strategic Petroleum Reserve has just over a month’s worth of oil in it.

The single biggest step we can take to curb our oil dependence and remove OPEC’s leverage is to raise the fuel economy standards of our automotive fleet. ..and require the President to adopt a nationwide oil savings plan that will achieve a total savings of 10 million barrels of oil per day by 2031.

We have, however, at the same time, a piece of legislation which is now pending between the House and the Senate which has the potential to raise the fuel economy standard to 35 miles per gallon, would have 15% of our electricity produced from renewable electricity sources, and it would also use cellulosic fuels to substitute for oil which we could import. That bill should be finished if we can work hard on it between the House and the Senate over the next 4 weeks. I look forward to learning more about Oil Shockwave from our witnesses as well as their views about what Congress can do to address our energy security challenges.

 

EMANUAL  CLEAVER, MISSOURI. It is difficult to follow up a powerful sermon like the one that was just delivered by Mr. Blumenauer, which I would say ‘‘amen’’ to what he just said. As I read this morning a number of newspapers, including Financial Times, about what is going on in Pakistan, I became alarmed. Not because Pakistan is a supplier of oil but because, if things go further awry, Pakistan could completely destabilize the Middle East in ways that Iraq never could. And thinking about what is going on in Iran and hopefully dealing with this concern internally, I could not help to think that conflict in Pakistan, if it ends up in some kind of civil war and if the tribal areas get weapons, there is no telling—or get more weapons, U.S. weapons, there is no telling what could happen. But it occurred to me that, even in the midst of all of these developments in the Middle East, that we are not, even after the Al Gore film and all of the discussions, we are not retreating from our appetite for oil. In 1980, the United States imported 27% of the oil it uses each day; and today we are importing 60% of the oil we use each day. So it is not like all of the awareness is creating some reaction. It is what Mr. Blumenauer said. You know, we talk about it, and then we just continue to go ahead. We continue to splurge. This is chilling.

 

CAROL P. BROWNER, Former Administrator of the Environmental Protection Agency .  I appear today as a participant in the recent Oil Shockwave—Executive Oil Crisis Simulation. It is the second time I have done this. The value of Oil ShockWave was really quite significant because, as the Admiral said, what you quickly figure out is, even with all of this power behind you– the Secretary of Energy had huge amounts of power in this simulation, your choices in terms of immediate action are very, very narrow and even those choices immediately bump up with somebody else’s view of the world. The event was sponsored by Securing America’s Future Energy, SAFE, and the Bipartisan Policy Center; and it was designed to show the possible consequences of U.S. oil dependency and the ability of government officials to respond in the event of a global oil crisis. It was bipartisan in every way. The participants were divided between Democrats and Republicans, and the whole point is just, to the best of our ability, to demonstrate to the American people how a problem unfolds and how members of the President’s Council and senior staff might respond to that problem.

The Oil Shock exercise provides a number of important lessons for Congress. In the scenario that we did last week, three different things happened over a 3-month period. The year is 2009. It is past the election. There is no assumption in the scenario whether a Democrat or a Republican has won the election for President. Over a 3-month period, from May to August of 2009, the first thing that happens is that a pipeline in Azerbaijan is temporarily put out of service. The result of that is a loss of one million barrels of oil to the world’s market per day, and very quickly there is an upturn in prices. While this crisis is resolved in the course of the scenario, over the next 3 months, Nigeria takes 400,000 barrels a day off the market; and, in August, Iran and Venezuela cut their combined oil production by 700,000 barrels per day. So by the end of the simulation, the 3-month period, 1.1 million barrels of oil have been taken off the world market; and the price per barrel has shot up to over $160. I don’t think any of this is farfetched. Maybe not these precise things but certainly things like this could happen virtually any day.

The role that I was assigned was Secretary of Energy, and in this position I was supposed to suggest a series of short-term steps that could be taken by the American public to reduce oil use. For example, I said that we could impose a 55-mile per hour speed limit, which would save 134,000 to approximately 250,000 barrels of oil a day. We could implement year-round daylight savings time, which would save approximately 3,000 barrels per day. We could institute a Sunday driving ban, which would save about 475,000 barrels of oil per day.  My colleagues in this event, other Cabinet members, rejected these ideas. They did not think they would be acceptable to the American people.  Short-term energy conservation is frequently difficult, painful, and I think that was why the other participants in the scenario did not want to recommend to the fictional President that we take some of these steps.

That turned the discussion to whether or not we should access the Strategic Petroleum Reserve, which is under the auspices of the Secretary of Energy; and very quickly a debate ensued over two issues with respect to the SPR. The first was, what is the appropriate use of the SPR? Can you use it to manage price spikes or can you only use it for security matters? And, as Mr. Sensenbrenner pointed out, there are significant barrels there, but the truth of the matter not so significant that if this crisis had played out over a longer term that you could really answer the problem.

The second debate unfolded when I said we should access the Strategic Petroleum Reserve (SPR).  That got complicated in a hurry, because the Secretary of Defense said [the SPR] was the Navy’s.   So suddenly we couldn’t find common ground on whether or not to take advantage of the SPR. The individuals representing the Department of State and Department of Defense also raised the issue of whether or not the military gets the first rights to the SPR, as opposed to the American people. And the concern they were focused on was, with growing unrest in the world in this scenario, would they have to deploy additional troops and therefore be in need of additional oil and should they get a first call on it? 

I think the real lesson of oil shock and one that we seem, unfortunately, hard-pressed to learn is the need to think ahead, to make real and lasting commitments to a new approach, rather than wait to respond once we are in the thick of it.

As I look at the scenario and move into the issues that confront you as a committee today and the House and the Senate at large, I think the single most important thing would be to embrace CAFE. If there had been a CAFE standards such as being considered and passed by the Senate in effect during this scenario we would not have experienced the kind of problems, potentially could—would not have experienced the kind of problems that were unfolding in the scenario. The Senate CAFE proposal, if adopted this year, would result in an oil savings of 1.2 million barrels per day by 2020.

Let me again note this is the second time I have participated in this scenario. I think I was the only person that participated both times, and the lesson was the same. We need to get going. There are things we can be doing today to try and reduce our dependence. CAFE is certainly not the only thing, but I personally think it is an incredibly important thing.

The other thing I would add is that the scenario did not take global warming into account. As the Secretary of Energy, I tried to insert it into the discussion, but the focus, because it was such an immediate concern, always turned back to where do we get more oil quickly, what do we need to do to solve the problem?  It is absolutely essential that we think about what some of the alternatives may mean in terms of greenhouse gas emissions, in terms of our carbon footprint, in terms of how much more difficult do we make the task of reducing greenhouse gas emissions and carbon emissions.

Mr. SENSENBRENNER.  What is the role of Canadian oil resources and oil shale in the West? I know that you can’t turn that spigot on as quickly as we would like, but if we are looking at ways to prevent an oil shock from being extremely severe, that seems to be the most convenient and secure way to get increased oil or replacement oil.

Admiral BLAIR.  We saw that as part of the solution, but our understanding was the technology was not quite there. So we couldn’t count on that and that—but that the R&D should be put in to see if it is a viable alternative as an alternative source. Similarly, R&D should be put into other synthetic fuels in order to make them part of the solution.

Mr. CLEAVER, Missouri. One of the problems we have is that we live in a time in our country where everything is politicized. I am frustrated over how we have politicized global warming, how we politicized even the oil crisis. And so it is difficult for us to coalesce and move towards a solution. Because what we say and think reverberates across the land, and if you listen to radio and television talk shows, you can see what has happened. It is ugly out there. And rather than turn down the volume, we continue to turn it up. So this issue has already become muddy because of the way it is politicized. Do you have any suggestions on how we might be able to depoliticize the oil dependence issue or independence? Is there something you—some way you can suggest, say, can we write a song? Could we get Mr. Hall to write a hit song? I mean, what do we need to do?

Admiral BLAIR. An Admiral giving advice on politics is like a politician giving advice on maneuvering ships.  But those of us on the Council thought that what is required here is a compromise between those who have opposed fuel efficiency standards on the grounds that it is interfering with business and those who have opposed further exploration and development of alternatives on the grounds that it runs environmental risks and it is not pretty to have an oil rig out the back door. What we strongly recommended a year ago was that in order to provide the political cover for everybody to do what everybody recognizes is in the national interest, is both sides have to give, and it has got to be a comprehensive package so that it is recognized that all participants are doing the right thing for the country. And even though they can be accused of making a compromise with something that they pushed in the past, it is in the common good. And that is really—it is naive. It is kind of civics 101. I am not a politician, but I think it is time that we have to give a little to do the right thing for everybody. So my answer to your question would be to, you know, both sides of that center chair need to give a little bit and let us do more conservation, let us do more domestic production, let us do more alternatives. We have taken polling data within the country, and the people recognize it. But it is getting that popular support shredded through the filter of individual interests into a bill, which you all know better than I do, is a hard part of this.

Ms. BROWNER. I think the simulation actually would be a way in which you might find some common ground. In the simulation we did, there were—three of us were noted Democrats. Everyone knew we were Democrats. There were three that were well-known Republicans. You would recognize them immediately as Republicans. And then there were some former military brass, and we are never sure what they are. They are very good about that. But what happened is we were unanimous in our takeaway from the experience. So it didn’t matter what our political persuasion was when we came to the scenario. Our experience of the scenario was a shared one, and what we thought needed to be done was remarkably similar across the party lines when we stepped out at the end and resumed our regular identities. So I think it could go a long ways to perhaps bridging some of the gaps that inevitably exist as you all wrestle with important legislation. And if that doesn’t work, I agree, Mr. Hall should write a song.

Admiral BLAIR. I draw a contrast between the way we deal with countries that really don’t have our economic interests in their hand and those who do. When I was a commander in the Pacific, we could deal with countries in Southeast Asia, Indonesia, Malaysia, and other problem countries, and we weren’t completely dependent on them for oil supplies, so we could be a little sophisticated in our dealing with them. We didn’t have to turn to big, expensive, hair-trigger military options right off the bat.

By way of contrast, when we are dealing with countries who are controlling important parts of the world oil supply, we militarize our policy almost by default. What we feel, if we can drop the oil intensity of the United States economy, that is the amount of oil to produce every dollar of GDP and, as Mr. Sensenbrenner said, we dropped that between—after the first oil problems in the 1970s and the 1980s, but then it leveled out, and we are as dependent, as we all know, now. If we can do a combination of conservation and domestic alternatives, get that down again, then we are not as subject to being jacked around by these events and by these countries. So it really is a case of lowering our dependence on this as an economy to give these people who are in these shockwave events a little more flexibility so that they can have time to round up international support, so that they can use other maneuvers. It is just getting them on that hair trigger by the increased demand and the increased dependence that makes it so brutal when you come to one of these crisis situations like a pipeline that pops. So it is really that dependence that we need to work on.

I have talked to the car companies, and they are saying that American people do not want more efficient cars; they want more powerful cars with more cup holders. Therefore, we have to give it to them.  I do not have a lot of sympathy for these car companies, because the price of that oil that we are using does not reflect the full price of the American troops who are doing all of this business around the world. If you factored in the real price of that oil, it would be huge, and frankly, I am sorry. It is not up to the car companies to make that judgment. It is up to the leaders of the American people to make that judgment.

MARSHA BLACKBURN, TENNESSEE.   In my district in Tennessee we have a good bit of auto manufacturing.  Admiral Blair, as you were saying, the market needs to tell—the American people need to say this is something that we are looking for and that we want. I remember the gas crisis of the 1970s and what we went through there. So let me ask each of you: How do you think the American public would respond to rationing if we were to go through an oil crisis?

Ms. BROWNER. I will be honest with you. I do not think, at this point in time, particularly well, and I think that is because, while individual families and Americans are always prepared to do their part to solve a problem, they want to know that the companies that make the products are also doing their part. I think there is a frustration that the American people have that they cannot get more fuel-efficient cars.

Admiral BLAIR. Yes. I think the American people have two reactions to that scenario that you have sketched out. Number 1, they would be angry, frustrated and looking for what got them into that fix. Number 2, they would roll up their sleeves, and they would do what had to be done to make it better, to work their way out of it.  Since we know that now, why don’t we take the actions now to avoid that crisis because we know it would be so much harder on us if we brought it to that point.

Mrs. BLACKBURN. We do a lot of transport by truck across our Nation’s highways, and I was reading something the other day about the efficiencies of rail. I would love to hear what your thoughts are about moving more of our movement of goods and commodities to rail and taking it off the highways.

Admiral BLAIR. Part of our proposals were that fuel-efficiency standards should be applied to trucks as well as to cars, and we should make the trucks that we have more efficient also by applying the same sort of technology to them as we do to cars, and we should raise the fuel efficiency standard of our trucks as well as to our cars.

JOHN J. HALL, NEW YORK. Admiral, you talked about being ‘‘jacked around’’ by countries that we used to have a freer hand to deal with. You know, it seems to me that our options diplomatically or economically have been limited in terms of how we deal, for instance, with Saudi Arabia on one hand and China on the other hand. Is that what you would call a ‘‘loss of sovereignty’’?

Admiral BLAIR. Absolutely. The more you are constrained because of your dependence on another country, the more sovereignty you have lost.

JOHN J. HALL, NEW YORK. It seems to me like we are going down a road where citizens of the United States, have never understood what it is like to be in a position like Brazil was in in the 1970s, for instance, where the world financial markets dictated to them certain things they had to do or else they would not get their next round of debt floated. So I think we need to be aware of that, that oil and our consumption of oil, is putting us in that position.

Admiral BLAIR. I think that is absolutely right. Some of that came up in these simulations when the Secretary of State said in the simulation, ‘‘Well, I went to country X, and asked them if they would increase their amount of oil, and country X said, ‘Yes, I can do that, but there are a couple of things I want from you, United States. I want you to lay off hitting me on this policy that I am doing. I want you to make this concession.’ ’’ So it puts us in the position of having to spend some of our blue chips to get some of theirs, and we would just as soon not be there.

It seems to me that Detroit is advertising power and speed and style and is not advertising efficiency. Take notes, and just make it a project one night to sit in front of the TV, and every time a car ad comes on, make a note of what kind of car is being advertised and whether they are touting efficiency and reliability or whether they are touting sexiness and speed and 340 horsepower to leap out at the stop sign or at the merge ramp.

JOHN B. LARSON, CONNECTICUT.  Admiral, you mentioned something very interesting in the scenarios as it was laid out and, as I understand it, with the consequences confronting you with the potential shutoff of supplies from Iran and Venezuela. Here is my question. In a situation such as that, you said that, by virtue of the fact that we are dealing with unfriendly States, that it almost becomes a de facto military situation. So the question is: In the scenario, where would the military deem to strike, if necessary, to recapture supplies—in this hemisphere or in the Middle East? Then bringing it to reality because, I think, that is what makes these useful, should Americans be concerned when we have, yet, another battle group doing maneuvers in the Persian Gulf?

Admiral BLAIR. I think the connection between the military force and oil supplies is a little more subtle than that. We do not go in and take over oil fields and sort of run them with soldiers and with contractors.

What I am saying is the fact that that region supplies a commodity, which is so fundamentally important to the United States, means that the United States [has to be]  involved in the affairs of that region and will have to have a much deeper involvement in them so that, when one State threatens another or invades another as Iraq invaded Kuwait back in 1991, an issue in which military force clearly has an application, we will do it; we will use military force there. The military situations that clearly call for a military response in that part of the world are threatening to and closing the Strait of Hormuz, the scenario that we had in the tanker wars in the mid- 1980s when both Iraq and Iran were attacking oil tankers, and we ended up reflagging and escorting them.

So it is not so much that, militarily, we go in and take over oil fields, which is not a very useful alternative. It is that we are in the region, and when military force is used, the United States has got to consider what we do with our forces, and we kind of get sucked into it the way that we have over time. What I think is going on here is that, if the United States has a very great vulnerability of short-term interruptions in countries like Venezuela and Iran, who are no friends of this country, they can sort of throttle back for a while. It does not hurt them very badly. It hurts us. It gives them advantages across the board in dealing with their interests as opposed to ours, which result in change.

Ms. BROWNER. If I might just note, in this scenario, one of the things that did unfold from the Secretary of Defense was a question for the President. Should we change the Selective Service registration requirements to capture women? Secondly, should we begin thinking about some form of a draft? Because the concern in the scenario that he was bringing to the table is that the military is stretched very, very thin.

EDWARD J. MARKEY, MASSACHUSETTS,  CHAIRMAN. Under your scenario, only 1% of the world’s oil supply is taken off the market. It leads to $160-a-barrel oil. It leads to the collapse of the economy. What is it that has led to having the oil markets become so tight that they can have such a profound impact in such a short period of time?

Ms. BROWNER. I think in that scenario, it is a combination of factors, but certainly, the failure of efficiency, the failure to drive down the amount of oil we use on a daily basis becomes pretty important because while the actual number—it ends up at about 1 billion barrels a day. That is not an amount that cannot be addressed through some prudent steps taken, you know, sooner rather than later.

Admiral BLAIR. That was sort of a surprising effect. You would think, on a percentage basis, it would not be that big. The game play for that result was done by a highly-respected, Canadian energy consulting company that we fed the information to and then asked them ‘‘Okay. What did that do to the price of barrels?’’ They ran their quantitative models, in their judgment. What I think was at play there was that, with the oil market so tight in the future primarily because of the increases in non-U.S. production, India and China are leading it. You find that non-U.S. oil demand goes up 38% over, maybe, the next 5 years; whereas, U.S. demand goes up about 24%. That is just making the oil market so tight that the power of expectations comes to play, and even relatively small tremors make people worry about the future. Therefore, they want to ensure their own supplies, and they bid up prices. So you are just in this trigger in which a relatively small rock in the pond has pretty big ripples.

EDWARD J. MARKEY, MASSACHUSETTS,  CHAIRMAN. So you talk in your testimony, Admiral, about our ever-growing military presence in the Middle East. Could you give us some sense of how you feel, for example, as to how this growing dependence upon oil affects our relationship with Saudi Arabia?

Admiral BLAIR. I think it gives Saudi Arabia much greater leverage in its dealings with us, and it is no secret that there are a lot of aspects of Saudi Arabia in the future that we have real concerns about, and when you are that much—when a country with those sorts of challenges has that much of a thumb on you, it causes concern.

Ms. BROWNER. [A 35-mile-per-gallon standard by 2020] is absolutely essential. We have got to get on with doing this. As I said in my opening statement, this is the second time I have participated in one of these. The message from both of them was identical, that taking steps sooner rather than later is key to these problems. In the case of CAFE and the proposal that the Senate has passed, it would have solved the problem that we were confronting. It was not as if this scenario was designed to then conclude, well, you should have passed CAFE. It was just the fact of, when you go back and look at how it unfolded, that is one of the easiest ways, actually, to have solved the problem.

Admiral BLAIR. I am [sure we can improve efficiency without compromising vehicle safety]. I tell you the strongest technical support for that judgment was our updating of a study done by the National Academy of Sciences. The answer from these technical experts was, unambiguously, yes, it could. That was even without considering hybrids and some other, more recent technologies. We  think the burden of proof ought to be put on people saying why they cannot do it. What you hear from the auto companies, you know, is American consumers do not want it, you know, blah, blah, blah. So we think we ought to shift the burden in the other direction.

Ms. BROWNER. You know, at the EPA, I, obviously, got the chance to regulate the automotive industry, and they always said no, no, no, no, no. Then they always turned around and did it….there is no doubt in my mind that they can do it. They will complain loudly, but they will end up being able to do it.

JAMES SENSENBRENNER, JR., WISCONSIN. Everyone who stops to fill up at the pump, and that is most people in this country, know firsthand how the United States’ dependence on foreign oil affects them. They feel it in their wallet, pennies at a time, as the price of gas creeps up. And most Americans understand that the price of oil is often influenced by events around the world. I doubt the results of the Oil Shockwave simulations would surprise many Americans. But I bet many Americans don’t realize just how vast the energy supplies are in the United States. Beneath this great Nation there are enough energy reserves to propel us towards energy security; and surely we have the intellectual and scientific capacity to give us the energy security that all of us, Democrats and Republicans, desire. According to the Interior Department, there are potentially 120 billion—that is with a ‘‘b’’—barrels of untapped oil in the United States, including offshore reserves in Alaska, the Pacific and Gulf of Mexico. Add to that the potential of 635 trillion—with a ‘‘t’’— cubic feet of natural gas remains untapped, and we have got what we need to start weaning ourselves off the oil supplies from foreign countries that are hostile to the United States. But that is just the start. It is estimated that there are 250 billion tons of recoverable coal reserves, which is nearly six times the combined U.S. oil and natural gas reserves. In fact, it is believed that our coal supplies are larger than any single energy source of any single nation, including Saudi Arabia oil. The U.S. coal supply is equivalent to nearly 800 billion barrels of oil, more than three times the energy equivalent of Saudi Arabia’s oil.

EARL BLUMENAUER, OREGON.   I have been following the Oil Shock exercises for some time and have been intrigued by the power to be able to demonstrate how perilous we are balanced today on our petroleum dependence. In my community, we had, over a year ago, the city government forming a task force to explore these other entities, and 12 distinguished citizens came back with things that wouldn’t surprise our participants, but I think it was an important part in sort of driving where we are going. I appreciate the comments of the distinguished ranking member, but one of the downsides of what he is describing is that there are no technologies now available that don’t make the other part of our charge as a committee fighting against global warming and greenhouse gasses, it will that make it worse. The simple fact is that we are the largest consumer of petroleum. We are consuming it at a rate 10 times what our share of the world’s proven supplies are, and we are depleting our own reserves right now at a very rapid rate. And given our security concerns for the future, those ought to be the last areas that we try and pump as fast as we can, rather than the first or, in the case of the Arctic, the next.

One of the things that might be interesting would be for our committee to spend the better part of a day experiencing the simulation. Having dealt with the people who’ve designed it, having watched it from afar, I think that it might shake some of us out of our lethargy if we actually stopped pontificating and actually go through a simulation where we have to make some of these real-life decisions that we, as a Congress, have failed to mitigate. And if our committee might set the tone, Mr. Chairman, I think it might be—there might be other people on both sides of the aisle who would go through it. And if we could get even 10 percent of the Members of Congress to have to go through this, devoting only half a day, I think it would be a sort of a homework that might put some realism into what too often around here is, I think, rather hallow rhetoric. I think all of us ought to have the sense of urgency for the very reasons you said in our opening statement, and I would hope we might consider it because it is too good a model for us to at least not test.

==================

FYI, these are the people consulted to come up with a realistic Oil ShockWave simulation:

  • Bruce Averill, Senior Coordinator, Critical Infrastructure Protection Policy, U.S. Department of State
  • General Ronald Bath and Jaime Taylor, The RJ Bath Group
  • Kara Baynton, Senior Energy Analyst, ARC Financial
  • Rand Beers, former Special Assistant to the President and Senior Director for Combating Terrorism
  • Paul Domjan, Director, John Howell and Company
  • David Frowd, former Head of Strategy and Planning in Shell’s Upstream Headquarters
  • Richard Haass, President, The Council on Foreign Relations
  • Randall J. Larson, Director, The Institute for Homeland Security
  • Dr. Kimberly Marten, Department Chair, Political Science, Barnard College, Columbia University
  • Ronald E. Minsk, Counsel, Alston & Bird LLP
  • Daniel Poneman, Principal, The Scowcroft Group
  • David Sandalow, Senior Fellow, The Brookings Institute
  • Peter Tertzakian, Senior Energy Economist, ARC Financial
  • Jeff Werling, Executive Director, Inforum, University of Maryland Department of Economics
  • Robert F. Wescott, President, Keybridge Research LLC

 

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Methane hydrates are still decades away. U.S. House hearing 2009.

[ The U.S. Department of Energy says: “At today’s gas prices, there are no economically recoverable deposits…and the commercialization of methane hydrates is likely to be several decades away….Although the size of the global methane hydrate resource is estimated to be enormous—eclipsing even global coal resources (more than several thousand gigatons of carbon)—only a small fraction of all methane hydrate deposits could ever be commercially extractable, even at very high natural gas prices”.  Or perhaps never: see my post “Why we aren’t mining methane hydrates now — or perhaps ever“.

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

House 111-32. July 30, 2009. Unconventional fuels part II: the promise of methane hydrates. U.S. House of Representatives. 50 pages

Excerpts:

We do not yet know if these accumulations exist in sufficient concentration to make them economically viable, nor do we know whether even concentrated accumulations can be developed economically.

Much more information is needed on: (1) the geology of the hydrate-bearing formations, both on a large scale (the distribution of hydrates throughout the world) and on a small scale (their occurrence and distribution in various host sediments); (2) the reservoir properties/characteristics of gas hydrate reservoirs; (3) the production response of various gas hydrate accumulations; and (4) the economics controlling the ultimate resource potential of gas hydrates.

Technical challenges

Gas hydrate wells will be more complex than most conventional and unconventional gas wells due a number of technical challenges, including:

  • Maintaining commercial gas flows with high water production rates
  • Operating with low temperatures and low pressures in the well-bore
  • Controlling formation sand production into the well-bore
  • Ensuring well structural integrity with reservoir subsidence

Technologies exist to address all of these issues, but will add to development costs. Gas hydrate development also has one distinct challenge compared to other unconventional resources, and that is the high cost of transportation to market.

Most gas fields require some compression to maximize reserve recovery, but this typically occurs later in the life of the field after production starts to fall below the plateau rate. For a gas hydrate development, the required pressure to cause dissociation will require the use of inlet compression throughout the life of the field including the plateau production time. This will require a larger capital investment for compression at the front end of the project, and will also result in higher operating costs over the life of the project.

Water production is not uncommon in gas wells, however water rates are typically less than say 10 bbls/MMscf (barrels of water per million standard cubic feet of gas) for water of condensation and/or free water production. Wells that produce excessive amounts of water are typically worked-over to eliminate water production or shut-in as non-economic. The water production from a gas hydrate reservoir could be highly variable, however water:gas ratios in excess of 1,000 bbls/MMscf are possible. This water must be removed from the reservoir and wellbore to continue the dissociation process. On this basis, a gas hydrate development will require artificial lift such as electric submersible pumps or gas lift, which will also increase capital and operating costs over the life of the field. But it is important to highlight that the water in gas hydrate contains no salts or impurities, it is fresh water and may be a valuable co-produced product of a gas hydrate development.

The combination of low operating pressures and high water rates will require larger tubing and flowlines for a gas hydrate development, in order to minimize friction losses and maximize production. Additional water handling facilities and water disposal will also be required. Larger inhibitor volume (such as glycol) will be required to prevent freezing and hydrate formation in tubing and flow-lines. Other items such as sand control, reservoir subsidence, down-hole chemical injection, possible requirements for near well-bore thermal stimulation, etc., will also require additional capital and operating costs for gas hydrate developments compared to conventional gas developments.

Onshore gas hydrates in North America are located on the North Slope of Alaska and on the Mackenzie Delta in Canada. These resources, along with significant volumes of already discovered conventional gas, are stranded without a pipeline to market. In order to compete for pipeline capacity, the economics of onshore gas hydrate developments must be attractive at prevailing gas prices.

By all estimates, the majority of gas hydrates considered for production are located in sandstone reservoirs in deepwater environments. Deepwater drilling technology and experience continues to evolve, and the worldwide deepwater fleet continues to expand. However the deepwater environment is still a very high cost and very high risk area of operation. Offshore gas hydrate developments must have strong economic drivers in order to compete with other deepwater exploration and development opportunities. Adding on the risk of gas hydrates is yet another level of risk to add onto the existing high-risk drilling in deep water.

Significant scientific and exploration work must be completed before gas hydrates can be considered as a viable source of natural gas. Critical among these tasks remains the validation reservoir and well performance through extended field testing that demonstrates the ability to produce gas hydrates at commercial rates with current technology.

So far the small-scale experiments have not been able to bring gas hydrates as far as the surface of the ocean.

On the basis of the studies done to date, gas hydrate developments will have capital and operating costs significantly higher than other unconventional or conventional developments due to well productivity, low operating pressures and temperatures, and high water production rates. Surface facilities for gas hydrate developments will also be higher due to the requirements for larger surface flowlines and inlet facilities (required because of low pressures and water production rates) and the requirement for inlet compression into the processing plant.

SBC. June 2015. Gas Hydrates. Taking the heat out of the burning-ice debate. Potential and future of Gas Hydrates. SBC energy institute.

it is largely agreed that, using current technologies, gas hydrates are likely to be more expensive to recover than most other gas resources.In most cases, gas-hydrate recovery is expected to require more wells per unit of space.Gas-hydrate recovery would also exhibit a higher water-to-gas ratio, which may require special facilities and oversized flow lines.  In addition, it involves dissociation operations e.g. using compressors and requires artificial-lift infrastructure and cutting-edge monitoring and control instruments.As well as exploration and production costs, gas-hydrate economics may also be affected in some regions by high transport costs:resources can be located far from markets, in harsh marine or permafrost environments, and face the usual “stranded gas” issue. Therefore the business case for gas hydrates would be improved in locations where synergies with conventional oil and gas operations could be leveraged.

In addition, deposits in permafrost environments would typically be cheaper to exploit than marine accumulations, because operations would be based on land. Gas hydrates seem very unlikely to be competitive in gas-rich regions.

The energy density of gas hydrates in situ is lower than that of conventional gas accumulations. This has important consequences for the economic viability of recovering methane hydrates, e.g. it is likely to require more wells.  98% of hydrate resources are estimated to be offshore and 2% in permafrost

A few of the many challenges (see pages 45-46 for others)

Significant amounts of sand can be produced if mitigation actions are not undertaken.In April 2007,a huge amount of produced sand led to the termination of the Mallik production test after 60 hours.
While sand-control devices such as sand screens can limit sand production, they can also cause production damage if they or the formation near the borehole become plugged with mobile solids.

Geomechanical hazards are less understood than other operational challenges faced by gas-hydrates production.In the absence of long-duration production test, they have not been yet empirically experienced, but only modeled by numerical reservoir simulators.Therefore, geomechanics is one of the biggest uncertainties associated with gas-hydrates production

As gas hydrates dissociate, the mechanical strength of the reservoir diminishes.Indeed,dissociation is accompanied by a decrease in the pressure of the formation and the removal of pore-filling “material”,which puts reservoir integrity at risk.This issue is particularly acute in shallow marine sediments and, as a result, it may be preferable to exploit deeper hydrate formations.In permafrost, the thickness of the overlying ice sheet and a smaller reduction in pressure should minimize the subsidence issue.

In addition, uncontrolled gas flow and sediment wellbore instability caused by the heating of sediments in the vicinity of production wells need to be monitored.Finally,horizontal well completion in shallow, unconsolidated sediments may be challenging.

Expensive monitoring

Gas-hydrate production requires the deployment of extensive monitoring systems in order to improve understanding of gas-hydrate dynamics ultimately optimizing recovery), but also to detect, prevent and mitigate potential safety and environmental hazards.

In Nankai Trough,for instance, two monitoring wells 2 were drilled in the vicinity of the production well as part of the production test.These wells were equipped with two types of temperature sensors: 1) Distributed Temperature Sensing (DTS) devices covering the entire borehole for autonomous, long-term monitoring measurement accuracy of +/- 0.5 ° C, and autonomous over 18 months; 2) Array-type Resistance Temperature Detector RTD devices placed across the gas hydrate reservoir with higher temperature resolution accuracy +/- 0.1 ° C for real-time monitoring during production tests.

In addition to pressure and temperature measurement, methane-emission detection and repair devices will be essential, especially in the Arctic

 

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Is there enough natural gas for everyone for everything?

[ Is there enough natural gas for products, utilities, AND transportation?  Alice Friedemann  www.energyskeptic.com]

Senate 113-1. February 12, 2013. Natural gas resources S. Hrg. 113-1. U.S. Senate.

ANDREW N. LIVERIS, CHAIRMAN & CEO, DOW CHEMICAL COMPANY. Dow is a major user of natural gas and natural gas liquids (NGL), both as an energy source and as feedstock for production of our products to drive the chemical reactions necessary to make useful products.

Dow’s global hydrocarbon and energy use amounts to the oil equivalent of 850,000 barrels per day, the daily energy use of Australia.

Natural gas is an essential component in thousands of everyday consumer products such as cars, appliances, paper, steel, plastic products, pharmaceuticals, and fertilizer for our farms. Natural gas provides heat, hot water, cooking and electric power to tens of millions of residential consumers.

The ingredients of natural gas are what we call feedstocks, natural gas liquids. The bounty of shale gas is, thanks to our great oil and gas sisters and brothers, they—the bounty, the geology, is that the gas is very wet, so-called NGO rich. A God-given gift. This is very unusual. The gas fields around the world are not as rich as U.S. gas fields. Therefore there’s a new unintended consequence, which is all the ingredients for everything from laptops to smart phones to pharmaceuticals to paints and varnishes to carpets to cosmetics, all the vital ingredients, 95% of them come from fossil fuels. The best and lightest fossil fuel is natural gas, so natural gas liquids should not be shipped overseas and be burnt in Japanese cooking ovens. It should be kept home so we can add value at 8 times by building these facilities. There’s $4 billion in Louisiana and Texas alone by Dow Chemical, $20 billion by Sasol, $15 billion by Shell to value-add. This is a big bet that we’re going to get responsible supply.

Energy is the lifeblood of an economy in all of its forms.

Opposition to export of LNG: You can’t move factories overnight, to state the obvious. Why put at risk the 5 million jobs, the $96 billion worth of investment that are on the books today? Over 60 companies, why put that at risk by doing either or? Why transfer the risk? So be cautious, do what the public interest demands and the DOE application process. I agree, financing will be difficult. I agree, prices will be volatile. But why take the risk and let the speculators set the gas price like they did 10 years ago, and we all remember the Enron’s and what the efficient market did for us 10 years ago. It was hardly efficient. OK. It was very inefficient.

Gas, as already noted, has to be liquefied and shipped at billions and billions of dollars. That is not an open market, that’s a point to point contract. There’s probably 30 of these contracts around the world from nation states to nation states.

The ingredients of natural gas are what we call feedstocks, natural gas liquids. The bounty of shale gas is, thanks to our great oil and gas sisters and brothers, they—the bounty, the geology, is that the gas is very wet, so-called NGO rich. A God-given gift. This is very unusual. The gas fields around the world are not as rich as U.S. gas fields. Therefore there’s a new unintended consequence, which is all the ingredients for everything from laptops to smart phones to pharmaceuticals to paints and varnishes to carpets to cosmetics, all the vital ingredients, 95% of them come from fossil fuels. The best and lightest fossil fuel is natural gas, so natural gas liquids should not be shipped overseas and be burnt in Japanese cooking ovens. It should be kept home so we can add value at 8 times by building these facilities. There’s $4 billion in Louisiana and Texas alone by Dow Chemical, $20 billion by Sasol, $15 billion by Shell to value-add. This is a big bet that we’re going to get responsible supply.

Energy is the lifeblood of an economy in all of its forms.

We’re in the 4th or 5th year of trying to understand what this bounty is. Can we produce it responsibly across the country? There are regions that differ already. We know that. The geology is different. We don’t know how much supply we have. Let’s be careful testing our country on when a market gets to maturity on liquidity risk. Why should we take the liquidity risk as a country in a totality while someone overseas benefits from our bounty.

MARY L. LANDRIEU, U.S. SENATOR FROM LOUISIANA. The wealth of natural gas is extraordinary, with estimates indicating America currently has 317 trillion cubic feet of proven, accessible reserves, and a further 2,000 tcf in total resource base estimates. This is enough to fulfill our current demand, a little over 24 bcf per day, for over 100 years.

Louisiana, Methanex Corporation, which moved its last U.S. plant overseas in 1999, is now spending over $1 billion to move a methanol plant from Chile to Ascension parish, near Baton Rouge. This plant will produce the raw materials for everything from windshield washer fluid to paints and sealants, even wrinkle free shirts. Williams, a petrochemical company based in Tulsa, is planning a new $400 ethylene plant also in Ascension parish, where they will supply our plastics manufacturers. Finally, CF Industries, one of the world’s largest producers of nitrogen fertilizer, is looking to spend $2.1 billion to build a new fertilizer plant in Ascension. That’s over $3.5 billion being invested in one parish in Louisiana, all thanks to our new abundance of domestic natural gas. Of course, that isn’t the whole story; nationwide, these same petrochemical, plastics, steel and fertilizer industries are planning to invest upwards of $80 billion in new plants and new capabilities.

ROSS EISENBERG, VP, ENERGY & RESOURCES POLICY, National Assoc of Manufacturers

The NAM is the nation’s largest industrial trade association, representing nearly 12,000 small, medium and large manufacturers in every industrial sector and in all 50 states. Manufacturers are major energy consumers, using one-third of the energy consumed in the United States.

The natural gas boom has provided major opportunities for manufacturers across the supply chain. Upstream, manufacturers design and construct drilling facilities; supply machinery and materials, such as cement and steel for hydraulic fracturing and well completion; and perform a wide range of support activities and services for the natural gas extraction process. Midstream, manufacturers provide needed infrastructure, such as pipelines, compressor stations, storage facilities and processing facilities. And downstream, the possibilities-from chemicals to windows to toys to electricity-are truly endless.

The natural gas manufacturing supply chain extends even further. All of this new activity will require roads and bridges, which, in turn, requires concrete, brick, gravel and steel. Drilling sites will need vehicles, fuel and significant water supplies- which will need to be supplied, transported and treated. Site employees will need uniforms, and those uniforms will need to be cleaned and maintained. The list goes on and on.

Chemical manufacturers had been the largest beneficiaries of this new abundance of natural gas, owing primarily to less expensive ethane, a natural gas liquid derived from shale gas. PwC identified Bayer Corporation, Chevron Phillips Chemical Company, Formosa Plastics Corporation and Westlake Chemical Corporation as companies taking early advantage of the shale gas boom.

PwC found that the benefits of shale gas for manufacturers were not limited to the major natural gas users; the benefits extended throughout the supply chain. According to PwC, companies that sell goods, such as metal tubular products and drilling and power equipment, were likely to experience near-term growth in sales as domestic natural gas production rates increased. PwC identified projects by U.S. Steel and Vallourec Ohio intended to supply steel pipe and related materials for shale gas extraction activities. These higher production levels would also yield benefits higher in the value chain, such as manufacturers of components used in drilling equipment. Overall, PwC found that 17 chemical, metal and industrial manufacturers commented in SEC filings in 2011 that shale gas development drove demands for their products, compared to none in 2008.

In the 13 months that have passed since PwC released its study, the impact of new supplies of natural gas on manufacturing has become even more pronounced. Nucor embarked on plans to develop a $750 million iron facility in Louisiana and announced a $3 billion joint venture with Canadian oil and gas producer Encana for 20 years of access to its natural gas wells.3 Mitsubishi announced plans to build an acrylic-resin processing plant adjacent to a newly constructed ethylene plant.4 Fertilizer manufacturer CF Industries announced that it will spend $2.1 billion to expand its fertilizer manufacturing operations.5 Formosa Plastics Corporation increased the size of its Texas ethylene plant included in the 2011 PwC6 report. Even foreign manufacturers are now seeking to build operations in the United States. Austrian steel manufacturer Voestalpine AG announced in late 2012 it plans to build a $661 million steel factory in the United States.7 South African energy company Sasol announced plans to construct America’s first commercial gas-to-liquids plant in Louisiana, an $11 billion-$14 billion venture.8 Egyptian fertilizer manufacturer Orascom Construction Industries plans to build a $1.4 billion nitrogen fertilizer production plant in Wever, Iowa.9 Canadian methanol producer Methanex announced in 2012 that it will dismantle a methanol plant in Chile and move it to Ascension Parish, Louisiana.10 BlueScope Steel Limited, an Australian company, is building a steel factory in Ohio in partnership with U.S. manufacturer Cargill.11 And Indian manufacturer Essar Global Limited is planning a steel facility for Minnesota.12

Last June, a report by independent global energy research firm IHS CERA predicted that the share of U.S. natural gas produced from unconventional sources will reach 67 percent by 2015 and 79 percent by 2035. (source: Fullenbaum, Richard, and John Larson, The Economic and Employment contributions of Unconventional Gas Development in State Economies, June 2012 http:// www.anga.us/media/content/F7D4500D-DD3A-1073-DA3480BE3CA41595/files/ statelunconvlgasleconomiclcontribution.pdf

This would lead to $3.2 trillion in investments to develop the resource.

Natural gas liquefaction is a manufacturing process. To convert natural gas to LNG, the gas is purified by removing any condensates, such as water, oil and mud, as well as other gases, such as carbon dioxide and hydrogen sulfide and trace amounts of mercury. The gas is then supercooled in several stages until it is liquefied and ready for shipping.

NATURAL GAS AND MANUFACTURING Industry relies on natural gas for much of its energy needs and as a raw material.

KENNETH B. MEDLOCK, III, JAMES A. BAKER, III, AND SUSAN G. BAKER, FELLOW IN ENERGY AND RESOURCE ECONOMICS, AND SENIOR DI- RECTOR, CENTER FOR ENERGY STUDIES, JAMES A. BAKER III INSTITUTE FOR PUBLIC POLICY RICE UNIVERSITY, HOUSTON, TX

Methanex has moved forward with plans to relocate its Chilean facility to Geismar, Louisiana, and Sasol has announced intent to move forward with a GTL project in Southwest Louisiana. In short, if price does stay low and relatively stable, it is possible that industrial demand could rise to levels not seen since the mid-1990s. This would represent an over 18% increase in industrial gas demand from its current levels. It is important to point out that the long term trend seen in the industrial demand sector bears resemblance to a cycle. Indeed, even the recent growth in industrial demand has been modest in comparison to power generation use. Nevertheless, the past few years have seen a renewal of industrial demand for natural gas. Moreover, the planned capital expenditures by gas-intensive industrial players are quite large.

US. POWER GENERATION DEMAND FOR NATURAL GAS. Natural gas demand in the power generation sector has substantial growth opportunity through fuel substitution, and it can occur in a relatively short time frame. In 2012 we saw a dramatic increase in the use of natural gas in power generation through substitution with coal. In fact, the natural gas share of power generation in 2012 rose to over 30%, which was up from an annual average of 17.9% just 10 years ago. This is in stark contrast to coal, which has seen its market share deteriorate from 50.8% to 36% in the same time frame. In fact, much of the drop in coal’s share in power generation is directly attributable to grid-level switching to natural gas. The rise of gas use at the expense of coal was primarily the result of relatively low natural gas prices, and the fact that there is sufficient natural gas generating capability to allow for large scale, grid-level fuel switching.

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Achieving U.S. energy independence with our “neighbors” oil

[ The main U.S. interest becoming more energy independent by getting oil from our “neighbors” Mexico, Colombia, Venezuela, Brazil, and Canada, while at the same time minimizing growing Chinese and Russian attempts to get their oil and other natural resources.

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

House 114–12. February 3, 2015. The strategic importance of the western hemisphere defining U.S. interests in the region. 114th congress House of Representatives. 81 pages 

Jeff Duncan, South Carolina

Venezuela’s unstable situation, deteriorating economic conditions with major shortages and inflation at over 60 percent, declining oil production and human rights abuses also require sustained U.S. attention.

Energy opportunities abound in the region today. I am excited about the potential for U.S. energy exports from our neighbors in the hemisphereI believe we can do so much more on the energy front. The Western Hemisphere is home to nearly a third of the world’s oil and the region has nearly 337 billion barrels of estimated recovery in oil, and 20 percent of the world’s proven oil reserves.

The abundance of U.S. reserves in oil and natural gas and shale gas resources, the capability to export, liquefy and compress natural gas and the administration’s recent announcement of offshore drilling in the Atlantic, the U.S. has many reasons to partner with like-minded countries who seek to spur economic growth, achieve energy security, and reduce energy cost.

In the 113th Congress, I authored legislation to implement the Outer Continental Shelf Trans Boundary Hydrocarbon Agreement between Mexico and the United States.

Venezuela’s dire situation, resulting impact on its Petrocaribe program, has caused 18 Central American and Caribbean nations that receive its oil on preferential terms to look elsewhere for energy security. The U.S. is a natural partner for these policies.

On January 27th, the ranking member and I co-hosted an event with Members of Congress and Caribbean leaders who were in Washington for the Caribbean Energy Security Summit. We discussed ways to deepen energy cooperation to assist Caribbean nations in achieving energy security. Given current circumstances and the additional potential for offshore resources—resource exploration that Aruba, the Bahamas, the Dominican Republic and Trinidad are considering, U.S. businesses have a significant opportunity to engage.

Similarly, the potential for cooperation with Canada through the Keystone Pipeline and Mexico’s energy sector reforms could truly take us a long way toward becoming North American energy independent if we work together to achieve that goal. Likewise, energy opportunities in Argentina, Brazil, Colombia, and Peru could also make our hemisphere even more energy independent.

I remain deeply concerned about Iran’s actions in the Western Hemisphere with evidence of a growing presence of China, North Korea, and Russia here in the Americas. We must remain ever vigilant.

While our attention is often captivated by events in Asia, Europe, the Middle East, and North Africa, I do not believe that crises and firefighting should determine the level of a region’s priority for the United States. I have travelled extensively in the region—Argentina, Brazil, Canada, Colombia, Mexico, Paraguay and Peru both in my private life and also through official duties.

I also firmly believe that U.S. should pay more attention to countries in the Western Hemisphere. These countries by virtue of proximity, trade, travel or culture have the ability to truly influence the United States and our lack of focus on issues right here in our own neighborhood is a disservice to the American people and to our committed partners within the region.

U.S. disengagement, evidenced by unsustained U.S. attention and tactical rather than strategic approaches in the region, has enabled other actors to step into the vacuum of leadership. While countries in the Western Hemisphere do not experience the same level of chronic instability as others around the globe, this region is unique by virtue of its geography. With no ocean separating the Americas, both threats and opportunities in Canada, the Caribbean, and Latin America have a greater potential to impact the United States homeland and the American people as well as American businesses. Therefore, we must remain vigilant and truly engaged.

Over 68,000 unaccompanied children crossed the U.S.-Mexico border last summer. This subcommittee will work to keep the administration accountable to securing the U.S.-Mexico border and preventing a second surge of migrants from Central America through wise use of American tax dollars.

Since coming to Congress in 2011, I have had 3 simple priorities summarized by the acronym JEFF—create jobs for the American people, promote U.S. energy security and exports and return to the wisdom of our Founding Fathers.  I believe that we must recall the wisdom of our Founding Fathers. In 1793, George Washington warned a young America that a reputation of weakness could lead to a loss of America’s rank among nations and that if we desire to secure peace it must be known that we are at all times ready for war.

Albio Sires, New Jersey.  In 2015, Mexican President Enrique Pena Nieto was the first leader—the first head of state to visit Washington. With oil prices falling and the economies of oil-exporting nations like Venezuela hurting, the U.S. hosted a Caribbean energy summit that could help the region diversify their dependence from Petrocaribe.

In spite of an increasing Chinese presence, U.S. trade with the region was more than 3 times that of China in 2013. Canada is our number one trading partner and Mexico is a close third. Today, we are witnessing a global economic adjustment with a decline in oil and commodity prices. China’s economy is cooling and with it is demand for natural resources from key markets in South America.

Ron DeSantis, Florida. We have some important things that we need to tackle, most recently with what the administration has done with Cuba policy. Here you have a regime that was really struggling with their patrons in Moscow and Caracas, roiled by lower energy prices, and this is essentially a unilateral concession, a huge lifeline to the Castro government. I think it was a major mistake. We worked very hard on this committee last Congress to stand up for the people in Venezuela who were chafing under the Maduro regime. I think the administration has had a tepid response to that. Finally, there has been some action taken in the last few days but I think we have got to unequivocally stand with those freedom fighters in Venezuela.

And finally, we do have to be concerned with the rise of rogue state actors in our hemisphere and we have seen that with Iran. We have seen it with North Korea and we also have, of course, rival states like Russia and China who are seeking to have a foothold here.

Shannon K. O’Neil, PhD, senior fellow for Latin America studies, Council on Foreign Relations 

Home to nearly 500 million people living in three vibrant democracies, North America today is an economic global powerhouse. At over $20 trillion, the three nations of Canada, Mexico, and the United States account for over a quarter of global GDP.

I want to talk about two opportunities in particular that stand out for areas of cooperation and these are energy and economic competitiveness. Starting with energy—never before have the energy prospects of these three nations been so dynamic as they have been transformed by new energy finds in the three nations, by new technologies and by new rules, particularly in Mexico, that are together unleashing an unanticipated potential. An increasing energy production so far has brought jobs, it has boosted economic growth and it has lowered prices for industrial and individual consumers in all three nations. Now, as each of these 3 countries undergo their own changes and transformations, energy should become a fundamental pillar for the North American partnership. Greater regional cooperation and integration will boost economic, geopolitical, and environmental benefits for these three nations. To truly harness North America’s energy promise, the United States should work closely with its neighbors to integrate North America’s energy markets. So this will involve significant investment in resources, in cross border infrastructure and electricity grids, so physically linking North America’s energy fields, refineries and markets. It will also mean developing regional energy strategies and environmental standards, coordinating on issues such as regulations, safety procedures, energy efficiency guidelines and technologies for lower carbon energy.

Over the past two decades North America’s economic ties have deepened dramatically by virtually all measures. Today, each of these nations is the others’ largest trading partners with intra-regional trade of over $1 trillion a year, and as important is the changed nature of this trade, reflecting the rise of a truly regional production platform. So rather than sending each other finished products the United States, Mexico and Canada today trade in pieces and parts. So this back and forth along assembly lines, between plants and between these countries in the making of every car, every plane, every flat screen TV or computer it means for every item that is imported from Mexico to the United States, 40% of its value on average, was actually made in the United States and for Canada the number is 25%.

It also means prioritizing and completing free trade agreements with which the United States, Canada, and Mexico are all part, specifically today the Trans-Pacific Partnership, and it should mean incorporating our North American neighbors and other free trade agreements we consider including the Trans-Atlantic Trade and Investment Partnership, or TTIP, with Europe. Now, the costs of not engaging our neighbors are even higher than they have been in the past. In a world of regional blocs, deepening U.S. ties with its economic allies and particularly its neighbors will help maintain our national competitiveness, and America’s dream of energy self-sufficiency depends, too, on its neighbors, on linking energy and electricity grids to ensure safe, stable and resilient supplies.

Bonnie Glick, Senior VP, Global Connect division, Meridian International Center

Colombia’s oil giant, Ecopetrol, is a company that is well managed with revenues of nearly $38 billion. The current downturn in oil prices has certainly impacted Ecopetrol, but its asset base and reserves will allow it to weather the economic storm.

Brazil has the largest offshore oil discovery on Earth. The deep water offshore exploration and production will continue and expand in the decades to come. Brazil’s oil industry, with the opportunities for investment by American oil companies, means that U.S. oil can diversify their holdings and can weather global economic storms with less risk.

Chile remains a financial and mining industry giant in the region, but the newly returned presidency of Michelle Bachelet has many an industry seeing the return of more socialist tendencies that are less business friendly. The new tax regime will be the first test of the global business community’s patience with Chile.

I wish to highlight the four challenges in Latin America and the Caribbean—organized crime, Russia, Islamic radicalism, and China. The passage of drugs, immigrants, and illicit goods through the region to the United States continues to fuel criminal organizations, deepening the crisis violence and the lack of opportunity in those societies. El Salvador’s facilitation of a truce between Mara Salvatrucha and Barrio 18 in 2012 and the Guatemalan President Otto Perez Molina’s appeal to legalize drugs to reduce the violence and criminality in his country shows just how desperate the situation has become. Trans-Pacific crime also merits more attention. Recent examples include the sourcing of precursor chemicals by the Sinaloa cartel from Chinese mafias, metal ore shipments to China from cartelcontrolled parts of Michoacan and the use of Chinese banks to launder money by the Brazilian gang First Capital Command.

Evan Ellis, Ph.D. Author. Russia is the external actor which has most openly challenged the United States in Latin America. Since 2008, it has repeatedly deployed military aircraft, warships, and submarines close to the United States including three port calls in Havana by the signals intelligence ship Viktor Leonov most recently on January 20th, the day before our U.S. Government team headed toward Havana to meet with Cuban officials. Russia’s defense minister, Sergei Shoigu, said last February that his country seeks to resupply and maintain its warships in Nicaragua, Cuba, and Venezuela; to operate its military aircraft from their airfields, and possibly to reopen the Cold War era surveillance facility at Lourdes, Cuba. Last November, Minister Shoigu further said that Russia would send long-range bombers to fly patrols near the U.S. including in the Caribbean and the Gulf of Mexico.

Latin America is also a source of terrorist financing including the narco trafficker Chekry Harb and the money launderer Ayman Joumaa, who channeled part of their drug earnings to Hezbollah and other terrorist organizations. Terrorists also conduct operations in the region. Just 3 months ago, for example, Hezbollah operative Muamad Amadar was arrested near Lima, Peru, stockpiling explosives for use in that country.

China—the PRC has most significantly impacted the region’s security environment although not openly challenging the United States. Of the more than $100 billion it has loaned to the region since 2005, three-quarters of that have gone to the ALBA regimes in Argentina, helping to keep governments like Venezuela’s solvent so that they could continue to operate as bases for criminals and as entry points for other actors who would do us harm. China has also chosen CELAC, which excludes the United States and Canada, rather than the Organization of American States as its preferred vehicle for building its relationships with the region.

The PRC has expanded its military activities in Latin America, undermining U.S. efforts to remain the security partner of choice. In October 2013, while Washington was distracted by the budget crisis, a PLA naval flotilla for the first time conducted combat exercises with our allies in Chile as well as with Brazil. Chinese companies sell military aircraft, helicopters, satellites, trucks and armored vehicles to both U.S. partners and its adversaries in the region and possibly sales to Argentina of the FC–1 fighter, the P–18 Corvette, the X–11 helicopter and the V–1 armored personnel carrier.

Eric Farnsworth, VP, Council of the Americas and Americas society. 

I would submit to you today that strategic U.S. interests in the Western Hemisphere are as profound as our interests almost anywhere else on the globe. The region is directly connected to our own day to day well-being from economic prosperity and growth to national and energy security

 

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Human conflict arising from natural resources

[ There are links as well as excerpts from several articles below.

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

Allen M.W., et al. September 6, 2016. Resource scarcity drives lethal aggression among prehistoric hunter-gatherers in central California. Proceedings of the National Academy of Sciences.

The origin of human violence and warfare is controversial, and some scholars contend that inter-group conflict was rare until the emergence of sedentary foraging and complex sociopolitical organization, whereas others assert that violence was common and of considerable antiquity among small-scale societies. Here we consider two alternative explanations for the evolution of human violence: (i) individuals resort to violence when benefits outweigh potential costs, which is likely in resource poor environments, or (ii) participation in violence increases when there is coercion from leaders in complex societies leading to group level benefits.

To test these hypotheses, we evaluate the relative importance of resource scarcity vs. sociopolitical complexity … Results reveal that sharp force trauma… is better predicted by resource scarcity than relative sociopolitical complexity.  This study provides no support for the position that violence originated with the development of more complex hunter-gatherer adaptations in the fairly recent past. Instead, findings show that individuals are prone to violence in times and places of resource scarcity.

Michael Safi and Vidhi Doshi. September 16, 2016. Angry clashes in Karnataka as India’s water wars run deep. Bengaluru erupts in violence over water-sharing plans with neighbouring state Tamil Nadu, as country-wide shortages reach crisis levels. The Guardian.

Bruch, C., et al. July 20, 2012.  Human Conflict: Targeting Natural Resources.  Science 337:291-292 

The special issue on Human Conflict (18 May, p. 818) largely ignores a central dimension of violent conflict: the complex role of natural resources in the onset (Ross 2004) and conduct of conflict, peacemaking, and recovery from conflict.

Grievances over access to land have been central to wars in countries such as Guatemala, El Salvador, and Nepal (Macours 2011, Kay 2002). Inequitable distribution of oil and gas revenues drove secessionist conflicts in places such as Indonesia’s Aceh and southern Sudan (Collier 2012).

Since the end of the Cold War, conflicts based on resources have grown rapidly in number: Armed groups in at least 18 conflicts have relied on revenues from diamonds, timber, coltan, and a range of agricultural crops from cacao to coca (UN 2009). For centuries, armies have targeted natural resources and the environment to deprive enemies of cover, food, and support (Austin 2000), and the increased use of resources to finance conflicts has enhanced their value as a military objective (Autessere 2010).

Between 1946 and 2008, 40 to 60% of all intrastate conflicts were linked to natural resources. Resource-related conflicts are more likely to relapse, and do so twice as quickly compared with situations following conflicts without a link to natural resources (Rustad 2010).

There is growing recognition of the role of natural resources in building peace. A 4-year research project coordinated by the Environmental Law Institute, the United Nations Environment Programme, the University of Tokyo, and McGill University found that between 1989 and 2004, 51 of 94 peace agreements had provisions relating to natural resources, and all major peace agreements since then have included natural resources (UN 2012).

This study’s analysis of experiences across more than 60 conflict-affected countries shows that successful peacebuilding can rely on aspects of natural resource management in terms of livelihoods and macroeconomic recovery; the provision of basic services, including water, sanitation, and electricity; governance and rule of law; and cooperation. For example, approximately 60 to 80% of livelihoods in conflict-affected countries depend directly on land, forests, and other natural resources; over 50% of a post-conflict country’s gross domestic product usually comes from agriculture and extractive industries; and 50 to 80% of exports (and sometimes more than 95%) come from natural resources (Bruch 2012, Lujala, ILO).

Austin, J. E., Austin, C. E. Bruch, Eds. 2000. The Environmental Consequences of War: Legal, Economic, and Scientific Perspectives (Cambridge Univ. Press, Cambridge).

Autessere, S. 2010. The Trouble with the Congo: Local Violence and the Failure of International Peacebuilding (Cambridge Univ. Press, New York).

Bruch, C, et al. 2012. International Law, Natural Resources and Post-conflict Peacebuilding: From Rio to Rio+20 and Beyond. Rev. Eur. Commun. Int. Environ. Law 21, 44.

Collier, P., et al. 2012. High-Value Natural Resources and Post-Conflict Peacebuilding, P. Lujala, S. A. Rustad, Eds. (Earthscan, London), pp. 297–312.

Kay, C. 2001. Reflections on rural violence in Latin America. Third World Quart. 22, 741.

ILO. LABORSTA. International Labour Organization. (http://laborsta.ilo.org)

Lujala, P. S. A. Rustad, Eds., High-Value Natural Resources and Post-Conflict Peacebuilding (Earthscan, London).

Macours, K. 2011. Increasing inequality and civil conflict in Nepal. Oxford Econ. Pap. 63.

Ross, M. 2004. Resisting cultural standardization: Comhaltas Ceoltoiri Eireann and the revitalization of traditional music in Ireland. J. Peace Res. 41, 227.

Rustad, S.A., et al. 2010. “Rapid recurrence: Natural resources, armed conflict, and peace,” (Centre for the Study of Civil War, working paper, Oslo, Norway).

UN. 2009. From Conflict to Peacebuilding: The Role of Natural Resources and the Environment (Nairobi). United Nations Environment Programme
UN. 2012. Greening the Blue Helmets: Environment, Natural Resources, and Peacekeeping (Nairobi).  United Nations Environment Programme.

Posted in Caused by Scarce Resources, Human Nature | Tagged | 1 Comment