Rise of high-tech civilization helped by moderately cold climate, rainfall all year, navigable water ways

What follows is a review by Rembrandt Koppelaar of Christian Welzel’s 2013 book: “Freedom Rising Human Empowerment and the Quest for Emancipation” on a private forum, followed by some comments of members of this group.  The basic paradigm of the book is that technological advancement is highly correlated with nations that have a cool-water (CW) condition, which is lots of cool-water, moderately cold climates, continuous rainfall over all seasons, and permanently navigable water ways. The book covers  broad sociological trends in 95 to 183 countries, using indices such as the Human Values Survey.

“The basic gist of the book is that abundance of resources has led to the availability of human Action Resources (the time to develop mental capacities) which has led to motivations to emancipate/seek human freedoms, which has led to guarantees (civic entitlements).

More interesting in our context is the last chapter (I skipped most of the rest and dived into this) which is about the origin of technological progress, and the reason why Western-Europe / Japan managed to progress much beyond earlier societies, from around 1500+

The author – head of chair in political culture research at center for Study of Democracy Leuphana University Germany – posits it is due to the combination of having universal water access and cooler climates.  The theoretical proposition is roughly as follows:

Cool-water condition –> lower disease and greater water/resource security –> higher probability of equal distribution across much larger groupings (higher per capita income as well)–> higher probability of less investment in offspring and more in human values / enables development of emancipative values –> higher probability of acceleration of technological development

Why are these conditions significant?

  • First, colder temperatures with mild seasonal frost kill microbes and, thus, diminish infectious diseases.
  • Colder temperatures also decelerate soil depletion, which improves land productivity
  • Continuity of rainfall over the seasons further improves land productivity, and, combined with colder temperatures, keeps water sources healthier
  • Ccolder temperatures greatly diminish physical exhaustion from work, which is conducive to labor productivity
  • Availability of permanently navigable water ways is a lubricant of economic exchange and democratizes market access

In combination, colder temperatures, continuous rainfall, and navigable waterways generate the CW condition. Under this condition, soil is arable without irrigation and small farming households in the possession of an iron plow and an ox can work large sections of land on their own. There is not much need of community support and no need of extended families with many children to provide armies of land laborers. No central power can monopolize access to water as a means to control people under the CW condition.

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Other aspects. why 1450-1500 CE as start of the “great human redirection” in Welzel’s words:

“Technological advancement on a mass scale is the base process of human empowerment from which emancipative values and civic entitlements follow. Hence, by identifying the environmental root cause of technological advancement, we provide an exogenous explanation of the complete human empowerement process. However, I also demonstrate that the advantages of high disease security and water autonomy did not begin to surface before 1450-1500 CE. The reason for the delays is that these advantages need vibrant urban markets to come to fruition, and no mature urban civilization emerged in CW regions before this time. The causes of the late maturation of CW regions are two-fold. First, given their large migratory distance from the human origin in East Africa, CW regions were populated later than the original, semiarid areas of civilization in Middle-East, India, China, and Southeast Europe. The larger migratory distance also means a larger diffusion distance from the original centers of agriculture and urbanity in the Middle East. Second, CW regions embody a delay factor that postpones the abandonment of the foraging lifestyle. Ironically, the delay factor originates precisely in the higher intiial utility that the CW regions bestow on freedoms: this utility discourages an early abolition of the free foraging lifestyle. As a consequence, the full-scale adoption of surplus agriculture is delayed. So is the flourishing of urban civilization because it needs surplus agriculture to feed urban populations. But once this initial postponement is overcome, the CW condition turns into an accelerator of technological advancement for the same reason: the higher utility of freedoms under this condition. Once urban markets begin to flourish, water autonomy creates derivative autonomies, such as autonomy in marketing ones ideas, skills and produce – the engine of technological advancement.”

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On the organization aspect that was unique in Western Europe and Japan (hypothesis, seems like circumstantial reasoning to an extent in my view).

“Late medieval Western Europe and Japan were the only two civilizations with high water autonomy to reach urban maturity in preindustrial times. All other Eurasian civilizations, from Eastern and Southern Europe to the Middle East to India and China, as well as the urban Amerindian civilizations, show a much weaker presence of the CW condition than do Japan or Western Europe. Accordingly, Powelson (1997) finds that Western Europe and Japan are the only two preindustrial civilizations that did not develop coercive feudalism. Instead, they established contractual feudalism – a form of feudalism that acknowledges the autonomies of farmers, village communities, and corporations. In both Western Europe and Japan, this pattern was linked with late marraiges, fertility limitation by means of monogamy and taboos on out-of-wedlock sex, an emphais of skill formation over the prolonged premarital period and “neolocal” instead of “patrilocal” household formation after marraige.”

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On why earlier large empires did not find the same breakthrough as happened at 1500+.

“At times despotic regimes encourage technological advancement, yet only as long as it does not threaten despotism. Until the Great Redirection [1500+], technological advancement in the Middle Eastern, Indian, and Chinese empires was ahead of Europe and Japan: these empires were farther advances in mathematics, medicine, and astronomy; they invented procelain, gun powder, silk, paper, printing, and the compass. What is more, the Chinese empire initiated large-scale naval operations almost a hundred years before the Europeans did. However, as Goldstone (2009) notes, at some point, each of these empires reverted to dogmatism, thus suffocating the innovative thrust. To sustain despotism, the empires did not allow research and inquiry to break free from dogmatic control. For instance, it has been argued that after 1433 CE, the Chinese empire took seafaring under strict control to prevent the merchant class from growing too independent. As Western Europe and Japan reached the mature urban stage, civilization took hold where natural conditions gave rulers less control over people. Rulers had to acknowledge personal autonomies, autonomous social entities, and autonomeus social sectors and territories. Under these conditions, the key activity driving development – intellectual inquiry – was freed from political control.

COMMENTS (from several different members)

I’ve  just watched the brilliant BBC2’s “Britain’s Forgotten Slave owners” which makes a very convincing argument that the Wealth of the British Empire was built upon the Slave trade which started in 1627 and ended in early 1800’s when the total number of slaves was 800,000, owned mostly by British residents. Then fossil fuels came to the fore as the primary source of cheap energy. Without the slave trade, Britain wouldn’t have been so great.  So the availability of cheap energy should also be in the mix that influences sociological trends.

Holland, like Britain, derived most of it’s huge early wealth from the slave trade, spanning 1619 to late 1700’s. And also the Southern States of America. Australia’s early wealth was dependent upon Britain deporting it’s able bodied criminals to the Australian penal colonies where they were used as slave labor.  I opine that had not “fossil fuel slaves” been available to exploit, then the global economy would have continued to have been largely dependent upon slave labor, as it still is in many parts of the World. We are only have the luxury of being Enlightened largely because of the availability of non-human cheap energy from fossil fuel slaves IMO.

We talked about human labor inputs into EROI calculations for the Stanford project. They are important to include but a small percent of the work done by fossil coworkers. I’d be surprised if some analyses don’t exist for how much productivity increased for farmers using slave labor vs without.  And i expect those days will come again, either officially or under some other moniker.

I believe that as energy becomes more expensive and less accessible, humans again will start to be used as semi-slave or totally enslaved workforce.

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Will we go out with a whimper instead of a bang? Cyberwar more likely than nuclear war

Preface.  This is a book review of Clarke & Knake’s “Cyber War: The Next Threat to National Security and What to Do About IT”.

The ransom cyber attack on the colonial pipeline forced the shutdown of a vital pipeline delivering half the gasoline, jet fuel, and diesel traveling from the Gulf Coast to the Northeastern U.S., causing panic as thousands of fueling stations ran out of fuel (Kraus 2021).

So consider what will happen after a cyber attack in the Great Game to get control of the last oil and other resources.  Beats a nuclear war, eh?

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

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Clarke RA, Knake RK (2010) CYBER WAR. The Next Threat to National Security and What to Do About It”. Harper-Collins.

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 ]

The New York Times describes author Richard Clarke as a former counter-terrorism czar. This well-written book describes how many nations are secretly preparing for cyber-war. America, Russia, and China have the largest number of expert cyber warriors, but Taiwan, Iran, Australia, South Korea, India, Pakistan, and the rest of the industrialized countries also have a high level of ability.

The outsourcing of information systems jobs that Thomas Friedman and other experts think so highly of has led to hardware and software companies unwittingly hiring foreign cyber war agents who  have planted logic bombs and trapdoors at the companies they worked for.  They also stole billions of dollars of intellectual property.   Of course, this is also going on from abroad, but the existence of foreign agents within our borders means that even if we could shut our network off from the global internet if cyber war broke out, this hidden army of cyber warriors could launch attacks from within the United States as well.

We’re far more vulnerable than any other nation to a cyber attack, since all of our 18 civilian infrastructure sectors rely 100% on the internet (Agriculture, Banking and Finance, Chemical and Hazardous materials, Dams, Defense, Emergency services, Energy,  Information technology, National monuments and icons, Nuclear power, Postal and shipping, Public Health, Telecommunications, Transportation, and Water and water treatment systems).  So of course, they shouldn’t be connected to the internet or intranet, but since most infrastructure is privately owned, no one can tell them what to do.  Since corporations are mandated to make money for shareholders and executives, they furiously fight off regulation with lobbyists because making their network more secure costs money. This has made all U.S. infrastructures vulnerable to attack.

The Chinese and Russian government’s own the infrastructure and have gone to great lengths to protect their systems from attack.  This has led to what the defense department and Homeland Security call “asymmetric vulnerability”.

Cyberwar Scenario

Here’s how a cyber war might go down (pp. 65-68). It would take just 15 minutes:

  • Large-scale routers fail and reboot throughout the network
  • Department of Defense networks collapse
  • All the electric grids fail. Several generators self-destruct. These can take up to 2 years to replace, and the grid can’t come back up without them
  • Satellites for weather, navigation, and communications spin out of orbit
  • The U.S. Military can’t communicate without the internet, they use the same Internet networks and software as the rest of us.
  • Refinery fires and explosions destroy large oil refineries
  • Chemical plants explode and release lethal clouds of chlorine gas
  • Air traffic control systems collapse, some airplanes collide
  • Freight trains derail at key locations: major junctions and marshaling yards
  • Cities will run out of food within the next 3 days because the trains aren’t running, and the trucking and distribution centers data systems are down
  • All of the data and the backups kept by the Fed have been lost – this will cause the financial system to crash
  • Gas pipelines explode in the Northeast, leaving without millions of people without heat in freezing cold weather
  • High-tension transmission lines catch on fire and melt
  • With the grid down, traffic lights are out, making it hard for military and emergency workers to get to their posts
  • BART trains crash in Oakland, and so do other metro trains in big cities
  • Power can’t be brought back up because you need nuclear power plants to reboot the system, but they’re in lock-down mode
  • ATM machines are down, people who can’t get money out have started looting stores

On page 70 Clarke writes “If cyber warriors take over a network, they could steal all of its information or send out instructions that move money, spill oil, vent gas, blow up generators, derail trains, crash airplanes, send a platoon into an ambush, or cause a missile to detonate in the wrong place. If cyber warriors crash networks, wipe out data, and turn computers into doorstops, then the financial system could collapse, a supply chain could halt, an airline could be grounded.  These are not hypotheticals. Things like this have already happened, sometimes experimentally, sometimes by mistake, and sometimes as a result of cyber crime or war”.

Worse yet, in a cyber war, we may never know who did it.  We wouldn’t know who to retaliate against.  Clarke discusses the difficulty of attribution on pages 213-215.

And we probably couldn’t kinetically (physically) retaliate with bombs even if we knew who did it, because our military is utterly dependent on the internet, and can’t communicate or launch missiles without it.

If China was the attacker, we couldn’t retaliate against their systems, because unlike the United States, the Chinese government has gone to great lengths to protect their civilians by making their network secure, and can sever their network from the world-wide internet.  Their internet is really more like an intranet due to the government being the service provider.

And we can’t hack them as easily as they can us, because Bill Gates sold them Microsoft’s internal code (Cisco did the same thing), which the Chinese modified to be far more secure and encrypted.  This also enabled the Chinese to know the weaknesses and vulnerabilities in the code are and the best ways to break into Microsoft computers (or Cisco routers).  The Chinese government doesn’t have privacy issues like the USA, so they scan incoming traffic for malware to prevent other nations from planting logic bombs and trapdoors on their systems.

No American Defense possible

1)      Right Wing & Left Wing Opposition. Because the right wing wants no government regulation, the government can’t write legislation requiring a minimum amount of network protection from the private sector (i.e. electric utilities, railroads, nuclear power plants, refineries, etc). The defense department and Homeland Security can’t do anything because the left wing is afraid of government scanning of network traffic in search of malware lest someone’s  privacy be violated.  Clarke discusses this on pages 133-135.

2)      Even if the left and right could agree that some regulation and loss of privacy was better than going back to the stone age after a cyber attack, Congress is too gridlocked to do anything

3)      There are many problems that need to be fixed — so cyber security is not a high priority.

4)      The software industry opposes regulation of security and Microsoft especially wants the Pentagon, banking, finance, and other businesses to use their systems despite the many security flaws.  They’ve gone to great lengths to discourage the Pentagon and businesses from using Linux, which is far more secure, and free. Microsoft is one of the 30 largest donors to political campaigns and has been very successful at preventing security requirements of their systems (138-143).

5)      On page 71 Clarke writes that there are thousands of ways to hack into computer systems because of bad code, the architecture itself, and more.

6)      The most complex microchips are only made in Asia – United States fabrication plants have fallen behind in technology and can’t make the chips needed by modern systems (page 95).  Chips can be made with spyware, logic bombs,  Trojan horses, or designed to break down on a certain date. An innocent-looking component or even a bit of soldering can be a disguised antenna.

7)      For even more understanding of why we’ve failed to defend ourselves, and what could be done if we had competent leaders, read Chapter 4 “The Defense Fails”.

What could trigger a cyber war? (page 157)

It could be tempting for a country to attack the U.S.A. to change the balance of power by demonstrating what harm they could do to us (i.e. taking down part of our electric grid) in the hopes that we’d be too scared to retaliate against them.

But if an attack is launched, America might attack back, and the conflict could escalate and grow out of control in microseconds.

The purpose of a military is to defend a nation, not build weapons to attack, but our country has focused almost exclusively on cyber-attacking, not defending Americans.

Because we have no defense, and are the most vulnerable nation in the world, we’re in a very dangerous situation.  This could drive us into mistakenly launching a “first strike” cyber attack despite the retaliation on our systems likely to be far more severe than the damage we can inflict on a foreign nation.

Because there aren’t any rules yet, and the harm that can be done is so great, there is an advantage to going first in a cyber war.  This is the opposite of nuclear war, where deterrence and mutually assured destruction, and lots of luck, have prevented nuclear war so far.

What’s even scarier is that if a cyber war occurs, it’ll happen at the speed of light, and go global, affecting nations that weren’t under attack as servers and computers within the borders of other nations are hacked and used as weapons.

The strategies for cyber war are quite different from nuclear war because a cyber attack could be deflected by a country that had secret back-up systems and other surprise capabilities.  But a bomb can’t be deflected – no one ever thought Star Wars could work, and it still doesn’t protect us despite the trillions spent.

Mutually assured destruction (MAD) has kept us from annihilating one another with nuclear bombs, but in a cyber war, both the power of the offense and the defenses of a nation are secret – there’s no deterrence holding nations in check.

If our offensive capabilities were made public, adversaries might think we were bluffing. If we demonstrated our ability with a small attack, that method is no longer available – many cyber weapons can only be used once because after that the enemy will fix their systems to deter a similar attack.  All cyber weapons all have a limited shelf life as new operating systems replace old ones, logic bombs and trapdoors discovered and removed, security holes are patched, etc.

Nor is it likely the United States could be deterred by threats of a cyber attack.  For example, both this book and Brenner’s “America the Vulnerable” describe a hypothetical military situation where China takes over the South China Seas to get at the oil reserves, and we in turn send in our navy in to try to get China to back down.  At that point someone in the room should say something like, “Mr President, if we do that, the Chinese will cyber attack us and destroy our electric grid, crash the stock market, derail our trains, blow up our refineries and chemical plants”.

But there isn’t anyone to speak up – no one wants to be Obama’s cyber czar for reasons explained in the book.  The military can only see the positives of technology, they see it as our greatest strength, and can’t comprehend it’s also our greatest weakness as well.

Because we haven’t thought this through yet, and because we’re so vulnerable, it means we’re even more likely to strike first because we know that if we’re attacked first, the other side will have cut off their cyberspace so we can’t retaliate.

What’s really strange is that we have already been attacked (and “attacked” other nations as well).  The battlefield is prepared for a future war.  Since it wasn’t actual foreign military forces strapping bombs on our infrastructure or foreign workers returning home with briefcases of stolen intellectual property, we do nothing, feel nothing.  Yet the logic bombs and trap doors within our electric grid and financial systems can do just as much damage as foreign secret agents with nuclear suitcase bombs. Which do exist, though we don’t believe that another nation has brought a nuclear bomb suitcase into America (yet), nor have we planted any of the several hundred we own into another nation (p 198-199).

Yet both we and foreign nations are planting bombs in each others computers, microchips, networks, and internet systems.

In the future, a cyber warrior might be caught laying a trapdoor or logic bomb that’s interpreted as meaning an attack was on the way.   The risk of an accidental cyber war is huge, and that in turn could lead to a (nuclear) war.  Or a hacker or a network operator might accidentally trigger a logic bomb that’s already in place and start a cyber war.  The odds are good we’d retaliate against the wrong nation (i.e. the attack is launched from Vietnam and made to look like its’ from China because Vietnam is angry the Chinese are drilling for oil within their territorial waters and want the United States to intervene).

China’s Cyberwarfare strategy

The most likely conflict we’ll have with China is over the South China Seas.  China has been claiming sovereignty despite objections from Vietnam, Taiwan, Malaysia, and the Philippines for many years.  This area has some of the last large stocks of fish, it’s an essential trade route, and above all, there’s oil and gas.

At the end of the 1990s China realized that they could use cyber warfare to make up for their lack of a physical military as strong as ours.

They’re especially keen on the idea of “asymmetric warfare” as expressed in the book “Unrestricted warfare”, which shows how a weak country can outmaneuver a much larger enemy using unexpected weapons and tactics such as:

  • Controlling natural resources
  • Join  international legal bodies to influence them
  • Target civilians
  • Overwhelm the enemy nation with drugs
  • Steal an enemy’s technology, find the flaws you can exploit, and make your own version.

China’s cyber war abilities are advanced enough that they don’t need to have equal physical armies to challenge the United States, as you can see in the Orbis article “How the United States Lost the Naval War of 2015”.

As mentioned earlier, Cisco not only gave away their secret internal code to China, but China also makes Cisco routers, and with this combined knowledge made counterfeit routers sold all over the world at a discount – even the Pentagon bought some.

The FBI believes these routers could take down networks in a cyberwar and read encrypted data.

Knowing the internal code of both Microsoft and Cisco hardware, China could take down any network in the world.  But they won’t harm themselves, because they changed the code to make it secure, and also developed their own microprocessors, and built their own operating system.  China is also putting software on all computers that can scan for any malware already placed by the United States or other countries and remove it.

China even found a way to put software on thousands of computers at many embassies all over the world that turned on the computer camera and microphone and exported the information back to servers in China.  It was nearly 2 years before this was discovered.

China’s cybertheft

Nothing comes close in history to the extent to which the Chinese government has hacked into industrial, universities, and government computers all over the world and stolen intellectual property such as military secrets, pharmaceutical drugs, and nanotechnology.

Our taxes and stock market investments have provided billions of dollars for research which China has stolen with cyber-theft for pennies and made our businesses go bankrupt.  We’ve lost tens of millions of jobs because of this cyber-espionage, and swung the balance of power away from America both economically and militarily, since they’ve been able to get the designs for our most sophisticated fighter jets, submarines, destroyers, and other military weapons and systems.

A few years after China got Microsoft and Cisco source code, the Chinese stole Google’s source code by “spear-phishing”.  Chinese hackers used social network tools like Facebook or Linked-in  to figure out who the friends or colleagues of Google executives were, and sent emails that appeared to be from them.   All it took was one executive to click the embedded link and the malware loaded on their computer spread throughout the network.

This isn’t cyber-crime, but it is intellectual “theft by China”.  Recently the Chinese were caught trying to steal seeds that can take up to 8 years and $40 million to develop (not GMO, see the New York Times article “Designer Seed Thought to Be Latest Target by Chinese. Agricultural espionage is a trend, F.B.I. says” for details).

Russia

Clarke thinks that Russia is an even bigger danger, perhaps better at cyber war than the United States.  They’re also far more covert than the Chinese, who’ve operated more openly and thereby gotten more attention in the news as well.

In September 2014 J. P. Morgan announced that 76 million of their accounts were compromised as the result of an intrusion. Despite billions spent on  detection software, we still have no idea who did it.  Because of recent tensions with Russia lately, they’re the #1 suspect.  When Obama was notified about the breach, his reaction was “Is this plain old theft, or is Putin retaliating?” (Corkery).

The New York Times (Corkery) also stated: “The F.B.I. has begun a criminal inquiry into the attacks, and the Secret Service has been involved as well. But the scale and breadth of the attacks — and the lack of clarity about the hackers’ identity or motive — show not only the vulnerability of the most heavily fortified American financial institutions but also the difficulty, despite billions of dollars spent in detection technology, in finding the sources of attack. And because it is so difficult to trace an attack to its source, it is next to impossible to deter one, security industry experts said.”

Malware

An invisible army of criminal hackers is constantly generating malware – new varieties enter cyberspace every 2.2 seconds.  Do you think that Norton or McAfee can really keep up with that?  At best they can fix 10% of the malware, but by then it’s probably already gotten onto computers.

Websites of legitimate companies and universities can be hacked so that when you go to their site, it downloads malware onto your computer.

Malware can also get in through trapdoors left by programmers to make it easier to update their code later on.  Hackers and cyber warriors alter even the code that’s being developed to put in a trapdoor so they can get into networks later.  And programmers write bad code that hackers can take advantage of.

If a hacker can get root access (administration privileges) then he can do anything, including erasing any evidence he was ever there.

Logic Bombs and Trapdoors

A logic bomb can do many things.  A basic one would erase all the software on a computer, rendering it totally useless.  Or the bomb could somehow cause the hardware to harm itself.  Logic bombs have been found all over our electric grid.

Trapdoors are holes in the system either deliberately set or the result of flaws and vulnerabilities that allow a hacker to come in anytime and snoop around, mainly to steal intellectual property or commit cyber crime.   But in a war, new logic bombs or software to trigger a piece of physical equipment to destroy itself could be put into the system through a trapdoor.

Our own weapons systems may have logic bombs planted, such as in the millions of lines of code for the F-35 fighter jet, or the computer hardware (the plans were stolen by hackers in China)?

Why is the electric grid so vulnerable?

This will be a prime target, since taking down the grid takes down a lot of other infrastructure.

Basically, the software that runs most of the equipment, SCADA, is connected to the outside world via the internet, the intranet (which can be hacked into from the internet easily), radio, wireless, etc.  This is convenient for the power company, but these systems can be hacked into from anywhere in the world.  The “Smart Grid” will only make these systems even more vulnerable (pages 98-101).

Above all, it’s because power companies don’t want to spend the money to make their systems more secure and have vigorously fought off regulatory legislation from the Federal Energy Regulatory Commission (page 167-8).

Cyber Terrorism

We’re lucky it hasn’t happened yet, because it’s cheap compared to all the other options.  No need to build a nuclear bomb.  You can launch the attack from a local café while you sip coffee. You don’t even need to understand how to write software – with enough money there is a hacker out who will do the dirty work for you.

Nation states like China & Russia might avoid attacking the financial system since they’d be affected too, but terrorists might have a goal of bringing the financial system down by altering or wiping out financial sector data.

Supply Chains

Thomas Friedman in “The world is flat” wrote that “the total supply chain for my computer, including suppliers of suppliers, involved about 400 companies in North America, Europe, and primarily Asia”.

Friedman draws the conclusion that this makes war less likely because everyone loses.

Clarke thinks it may make cyber warfare more likely.  And that China would win, since many of the components were made in China and could have been engineered to have hidden logic bombs that could be triggered in a cyber war, or known vulnerabilities, intentional or not, that can be taken advantage of.

Also, cyber criminals have penetrated supply chains for computer software and hardware and injected malicious code to defeat security systems, which would also make them capable of teaming up with terrorists and attacking nations.

Propaganda Cyber war

Consider this as a way of replacing the pamphlets dropped by airplanes.  One example of how this tactic was used was in the first Gulf War, where Americans managed to infiltrate the Iraqi network and send emails just before the war that said something like ‘we don’t want to harm you, just Saddam.  We won’t attack you if you park your trucks and armored vehicles out in the open and abandon them.”  Many Iraqi officers did just this, enabling American fighter jets to easily blow them up.

North Korea

Cuba and North Korea have been the first “peak oil” experiments, the first nations to have to cope with their oil supplies diminished drastically.  North Korea’s strategy has been to build nuclear bombs to blackmail what Clarke describes as “concessionary loans, free food, and gifts of oil.”

They’re also trying to figure out how to launch cyberattacks.  In 2009 they started a distributed denial of service against dhs.gov and state.gov, both of which were temporarily knocked out, as well as the Treasury, Secret Service, Federal Trade Commission, and Department of Transportation (the attack on the White House failed).  The Washington Post, NASDAQ, New York Mercantile, and NYSE were also attacked.

North Korea also attacked South Korea to find out how large an attack was needed to flood the fiber-optic cable connection, which would prevent the United States from coming to their aid (the U.S. Military also uses these connections).

We know that North Korea has four warfare units, with hundreds of hackers.  Many are in China, since there’s almost no internet in North Korea.  Which is a big problem – our systems are wide-open vulnerable, but we can’t attack them.

References

Corkery, M. et al. Oct 9, 2014. Obama Got Early Briefing on J.P. Morgan Breach. New York Times.

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Electric Grid

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Just 16,000 catenary trucks (out of 5.6 million) would use 1% of California’s electricity generation

Proposed Catenary System for I-710 Zero-Emissions Corridor (Source: Siemens Mobility).

Proposed Catenary System for I-710 Zero-Emissions Corridor (Source: Siemens Mobility).

Preface. We must electrify trucks since fuel from oil, coal, and natural gas is finite, and biomass doesn’t scale up.  Without transportation, electricity contraptions like wind turbines, solar facilities, and nuclear power plants can’t be built. A wind turbine, for example, needs trucks from start to finish. Each has 8,000 parts made around the world.  Then there are the cement, bulldozers, cranes, and other trucks that prepare the wind turbine site, and the trucks that deliver the wind turbine to its destination.  Trucks were also used to mine and crush the ores windmills are made of, the high heat to make the cement and steel in the turbine, to build and maintain the roads the 8,000 parts traveled on, and the transmission that connects wind turbines to the grid.

Since without trucks, civilization shuts down within a week, there is no higher priority than keeping trucks running. But there are many obstacles to building a catenary system for trucks, which I will explain in this article.

I mainly focus on the Port of Los Angeles and San Pedro project to run drayage trucks from the ports to inland warehouses because they’ve done by far the most research on what it would take to run trucks on a catenary system.

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

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But first, what is a catenary truck?

A catenary truck is a lot like a trolley bus. Both run on electric motors powered by overhead lines, the catenary system.  Catenary trucks differ from trolleys though, because they need a second propulsion method after they get off the wires to deliver their products and get back to the overhead lines.  Trucks also need to get off the lines to pass one another, operate when the electricity is down, and get around trucks that have broken down.

The need for a dual mode doubles, or even triples the cost of a catenary truck.  On top of that, it costs millions of dollars per mile to install a catenary system, plus add more electricity generation, substations, and transmission. Catenary is expensive to maintain as well, and if you’ve ever ridden MUNI trolley buses in San Francisco, you’ve probably been on a bus where the trolley poles detached from the catenary at a bad switch or too sharp a turn and waited many minutes for the driver to reattach the poles.

Even if we could build catenary systems for long-haul and delivery trucks, what about all the off-road trucks? Can you imagine stringing overhead wires across millions of acres of farmland, construction sites, sand and gravel mining, logging, and along transmission wires to maintain them?  Rural areas were the last to be electrified, and would need a great deal more power plants, substations, and other electrical infrastructure to power these off-road uses.

If this were attempted, the rough terrain is likely to cause dewirement when the catenary poles detach from the wire at a pothole or bad switch.

Of course, there are mines that have electric mining trucks that run on extremely smooth roads, but the vast majority of the world’s ores are too far from the electric grid to electrify them.  Mining sites that use catenary trucks typically have an onsite power plant generating electricity because the cost of diesel is so high in that region. These trucks only use electricity on the uphill or downhill part of the road, and operate on diesel when the road is level. Diesel operation is also required because catenary is very expensive and can’t be placed everywhere at the mining site.  Batteries are not used because they drain quickly, are heavy and expensive, and take a long time to charge (Python 2010).

So far the Ports of Los Angeles and San Pedro have done the most research on what it would take to make a catenary system possible for drayage trucks between the ports and inland distribution warehouses. Their interest in doing this is solely for air quality, energy efficiency and conserving oil aren’t considerations.

The ports don’t know if a catenary system for trucks is possible.  According to Calstart (2013), this is a new situation. San Francisco has one of the largest catenary transit systems in the world, with 300 trolleybuses and 150 light rail cars.  But on average they’re running 10 minutes apart.  In contrast, the I-710 drayage truck corridor has over 10,000 trucks that can weigh twice as much running seconds or less apart.  Estimating the power needed, and whether the power can be distributed to all of them is unknown.

Although Sweden, Germany, and the USA are all in the process of building demonstration catenary systems about a mile long and a few dual-mode trucks to run on them, most of them with non-renewable diesel or natural gas backup), these experiments are more concerned with whether trucks can connect and disconnect from the catenary at high speed and won’t answer the question of whether thousands of trucks can run seconds apart, and how much power it would take to do so.

And consider the scale. There are 16,349 catenary trucks expected to be running in 2020 (SCAG 2013), that’s orders of magnitude more than San Francisco’s MUNI catenary vehicles: 311 trolley buses and 151 light-rail cars.  And heavy-duty trucks are heavy.  They can weigh twice as much as a trolley bus and require more power to move.

In California, four demonstration trucks (and a similar number in Sweden) are planned for the mile-long catenary being built, with the following second modes after leaving the wire: a battery that can go for 10 miles (ARB SEP 2014), a truck that runs on diesel, and two that run on compressed natural gas (Hsu 2016).

It will be hard to build dual-mode trucks that can even come close to matching the performance of today’s diesel drayage trucks, which go 400 miles between refueling, last 604,000 miles, haul up to 44,000 pounds, operate at temperatures from 23 to 113 degrees F, go up 6% grades, and travel 10 to 14 hours a day. Diesel drayage trucks are also far less expensive — a used one can cost as little as $3,000, a new one $104,360 (Calstart 2013). A Battery Electric truck (BEV) truck costs $307,890 (ICCT 2013), a hydrogen fuel cell truck $1.3 million (ARB 2015), and a natural gas catenary truck $282,000 (GNA 2012).

Why use dual-mode catenary trucks rather than a 100% battery electric truck?

Batteries / battery packs weigh too much. Even if 5 to 10 times as much battery energy density (Wh/kg) were achieved and other technical issues solved, batteries would still weigh too much: 2 to 4 tonnes (4400 to 8800 pounds) in a 40 tonne truck.  Today’s batteries are 5 to 10 times heavier than 2 to 4 tonnes (ICCT 2013).

With today’s technology, driving a semi-truck 500 miles would require a 23-ton (46,000 pound) lithium-ion battery, half the weight of the truck itself (Coren 2016).

This is why the Ports of Los Angeles and Long Beach ruled out battery-electric (BEV) trucks, which need a 7,700 pound battery, since the weight cuts too much into the payload. Also, the battery only lasts for 100, half the 200 minimum-miles required. BEVs are also out of service too often, and take too long to recharge — 4 hours every 120 miles (Calstart 2013b).

Another disadvantage of 100% battery operated BEV trucks is the need for twice as many of them (32,968) as dual-mode catenary/battery (C/B) trucks (16,349), since the battery can be continually charged from the overhead wires, while an all-battery truck will need to be charged every few hours for a few hours.  Nor would battery swapping solve the BEV problem, since it would be too expensive to carry multiple batteries for each truck (SCAG 2013) at all of the very expensive battery-swapping stations (Berman 2011).

Other alternatives: Compressed Natural Gas (CNG), hydrogen fuel cell, fixed-guideways

CNG trucks.  Aside from the fact that natural gas is finite and not a solution, CNG tanks are heavy as well, would require a new  fuel distribution system, with each station costing $1 million or more. CNG would add over 5,000 pounds to the truck weight: 300 gallons of diesel = 1,140 gallons of CNG at 1.81 lbs/gallon (2072 lbs), CNG tank 1,800 lbs, 1,300 pounds for the racks and protective plates (Schneider 2014).

Hydrogen fuel cell trucks are too heavy.  Even if this technology were commercial for trucks, each one would need a a $2 million hydrogen fuel tank to go the distance (Coren 2016). The cost of building a hydrogen distribution system is far too high since very expensive special metals and gaskets are needed to keep the hydrogen from embrittling the metal and escaping, so the hydrogen would have to be made on-site.  Each station would cost $1 million or more.

Fixed-guideway system. This zero-emission solution was rejected because over 20 years it would cost 14 times more than a dual-mode catenary system (GNA 2012 page 18).

Fixed guideway system

Fixed guideway system

Source: Klinski, J.  2015. LEVX intermodal freight transport system. Port of Hueneme. California sustainable freight action plan. Magna Force, Inc.

How much power would catenary trucks on 24 miles of wires along I-710 need?

From .29% (ICF 2014) to 1% of all the electricity generated in California in a year on 24 miles of road, assuming:

  • 16,349 hybrid catenary trucks I-710 in 2020 (SCAG 2013)
  • 3 round-trips per day per truck (Calstart 2013. On good days 4 to 5 trips are made)
  • 48 miles per round trip (24 * 2 miles of catenary wires on I-710)
  • 313 days of drayage deliveries (ports are closed on Sundays)
  • 3.5 kWh/mile (2.21 kWh/kilometer) due to the inefficiency of the dynamic loading on catenary wires, with a 10% efficiency loss assumed (ICCT 2013).
  • California produces 250,561 GWh of power a year (ICF 2014)

Calculation:

  1. 2579 GWh needed by all catenary trucks per year = 16,349 trucks * 3 round-trips * 48 miles per trip round-trip * 313 days per year * 3.5 kWh/mile (3,438,783,264 kWh)
  2. 1% of all generated California electricity used per year = 2579 GWh / 250,561 GWh per year California
  3. 100% / 1% * 24 miles = 2,400 miles of roads for drayage trucks would use all of California’s electricity, 32,000 drayage trucks is 1,200 miles
  4. .16 GWh per truck per year = 2579 GWh per year / 16,349 trucks

ICF 2014 estimates .29% of annual power in their Aggressive Adoption by 2030 scenario. 

  • .29% of all generated California electrity used per year = 722 GWh all trucks/year (table 13) / 250,561 GWh per year California
  • Consume 3 kWh/mile (page 87). Using 3 kWh lowers my calculation to 2211 GWh/year, .88% of California electricity, still 3 times more than .29%
  • 36,100 trucks = 722/.02  .02 GWh/year/truck (table 33), all trucks 722 GWh/year.
  • 241,000,000 total miles all trucks a year (Table 12). Therefore, every day all trucks drive 769,968 miles collectively (241,000,000 / 313 working days).
  • 100% / .29% * 24 miles = 8,275 miles of roads would use all of California’s electricity
  • Just 21 miles/day on catenary = 769,968 miles a day all trucks / 36,100 trucks. If just 21 catenary miles, the other mode must go 180 miles a day if the 200-mile a day specifications are met. So I don’t know how they came up with the .29% estimate. I think it is higher than that.

Overall on-road California catenary trucks might use 35% of electricity

Overall, the 952,000 medium and heavy-duty trucks registered in the state (CEC 2015) went 24,800,000,000 miles 2008 in California * 3.5 kWh = 86,800 Gwh/250,561 GWh. Or perhaps less power, if only the most important trucks were electrified, and the medium trucks might need less power, say 2.5 kWh, so perhaps half as much.

All of them would need to be modified to connect to the catenary and have electric motors. Since oil is finite, eventually all of them would have to be replaced with batteries or hydrogen systems, which may never exist due to the laws of physics.   Plus additional new dual-mode trucks would need to be built and placed on California’s border to transfer cargo arriving in out-of-state trucks.

Even when oil shortages begin, the fact that off-road trucks aren’t electrified won’t matter, because tractors, harvesters, and other diesel farm equipment will have the highest priority for oil. But then what?

Unless a great deal more electricity generation is built for this new purpose, all other electricity users will need to cut back.

If all vehicles run on overhead wires,that’s 2.5 times more power than generated in California and 3 times more than United States generation

If all vehicles ran on overhead wires in California, that’s 322,849,000,000 miles in 2010 times 2 kwh (not 3.5, since lighter-weight vehicles will need less electricity than heavy-duty trucks) = 646,000 GWh, which is 2.5 times California’s 250,561 GWh generation. Of course, if the sacred economic myth that there are no limits to growth is true, we’ll need more power than that.

In 2014 in the USA in 2014, total vehicles traveled was 6,063,699,556,220 miles, so all vehicles would use 12,127 TWh of United States electricity generation, about 3 times more than the 4,052 Twh generated in 2014.

Conclusion

Catenary electric trucks are proposed for zero-emissions, not energy conservation or efficiency. The Ports of Los Angeles and Long Beach are trying to reduce the pollution of diesel drayage trucks hauling containers between the two ports and inland warehouses.  Currently the I-710 has 10,000 drayage trucks making 3 to 5 round-trips a day.  Analysts need to determine whether the energy to build and maintain a new catenary system and dual-mode trucks is greater than running more fuel-efficient trucks, especially if a 100% renewable electric grid is not possible.

Catenary is impossible: commercial level batteries aren’t energy-dense enough and far too heavy. The same goes for hydrogen fuel cells. And hydrogen is a net energy loser from start to finish, from splitting water, compression or liquefaction, storage, and distribution.

Catenary is too expensive. Catenary systems cost about $6 million per mile, so 175,000 miles of roads would cost $1,050,000,000,000,000 plus expensive operational and maintenance costs.

Catenary locks in a very expensive infrastructure on a road that may not be heavily used in the future.

The father in “Angela’s ashes” spent his earnings on booze rather than food for his children. Is a goal of zero-emissions, rather than energy efficiency, really the best way to spend our remaining energy?

Related Posts: There are many other barriers to building a battery electric car or truck. They use many finite platinum group elements, precious elements, and rare earth elements.  Plus there are dozens of challenges to improving batteries that must be overcome but can’t because of the laws of physics and thermodynamics. Nor are trucks going to be running on hydrogen: The dumbest & most impossible renewable.

The electric grid will eventually fail without utility scale energy storage of at least a month of electricity to compensate for seasonal deficits (When Trucks Stop Running Chapter 17 The Electric Blues). Natural gas is the main energy storage now (and coal), and essential for balancing the sudden life and death of wind and solar power. But natural gas and coal are finite.  Yes, hydropower can also balance wind and solar, but mostly in the 10 lucky states that have 80% of it for just part of the year, and the few places that can afford multi-million-dollar batteries (though only for an hour or so).  The electric grid could crash from a weapon or solar flare electromagnetic pulse and be down for a year or more. Electric trucks are impossible. Without trucks, civilization fails. And it’s checkmate as well, because manufacturing uses over half of all fossil fuels, and depends on the high heat only fossils can provide to make cement, steel and other metals, glass, brick, ceramics, microchips and so on. Manufacturing can’t be run on electricity, hydrogen, or anything else, as explained in Chapter 9 of Life After Fossil Fuels. No transportation? No Manufacturing? Then no electricity generating contraptions like solar panels or wind turbines can be built. Checkmate.

References

ARB. September 2, 2014. Heavy-duty hybrid vehicles technology assessment. California environmental protection agency, Air Resources Board.

ARB. 2015. Technology assessment: Medium- and Heavy-duty fuel cell electric vehicles.

Berman, B. 2011. Plug-and-play batteries: Trying out a quick-swap station for E.V.’s. New York Times.

Calstart. 2013. I-710 project zero-emission truck commercialization study. Calstart for Los Angeles County Metropolitan Transportation Authority. 4.7.

CEC. October 2015. 2016-2017 Investment plan update for the alternative and renewable fuel and vehicle technology program. California Energy Commission. CEC-600-2015-014-SD

CEC. 2016. California Electrical Energy Generation in 2015. California energy commission.

Coren, M.J. June 23, 2016. Siemens says it can power unlimited-range electric trucks using a 150-year-old technology. QZ.

Edelstein.  July 10, 2016. Road for electric trucks with trolley-like catenary opens in Sweden. greencarcongress.

GNA. March 8, 2012. Zero-emission catenary hybrid truck market study. Gladsteni, Neandross & Associates.

Hirsch, R. L., et al. 2005. Peaking of world oil production: impacts, mitigation, & risk management. Department of energy.

Hoffert, et al 2002 Advanced Technology Paths to Global Climate Stability: Energy for a Greenhouse Planet, Science. Vol 298.

Hsu, T. July 18, 2016. 100-Year-Old Street trolley technology could completely change trucking. trucks.com.  CNG: Kenworth Trucks , BAE Systems and TransPower.

ICCT. July 2013. Zero emissions trucks. An overview of state-of-the-art technologies and their potential. International Council for Clean Transportation.

ICF. September 2014. California transportation electrification assessment. Phase 1: final report. ICF International.

Python. 2010. Trolley Assisted Mine Trucks. Python Group mining.

SCAG. February 2013. On the Move. Southern California delivers the goods. Final report. Southern California Association of Governments.

Schneider, D. February 10, 2014. The fuel alternatives: CNG & LNG part 1. wearethepractitioners.com

Smil, Vaclav. 2010. Energy Transitions: History, Requirements, Prospects. Praeger.

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Pedro Prieto – what life used to be like decades ago in small Spanish villages

 [I’m reading James Howard Kunstler’s excellent trilogy “A World Made By Hand” now to get an idea of what life might be like post-peak when the worst of the crisis is over. Prieto’s vivid descriptions are wonderful, I wish he’d write a book!  Alice Friedemann  www.energyskeptic.com]
 .

August 16, 2015. Pedro Prieto post on village life in Spain decades ago

Something similar to the endangered “tall grass prairie” mentioned in Ugo Bardi article “Gleaning: an ancient custom that may return in the future” is happening worldwide in the cultivation of cereals, at least in Spain.
Now I believe I was privileged for living in a country that started to develop much later than other European countries. So I could live in my childhood and visiting frequently my relatives in a small village living and working basically like in the Middle Age. In 1960, in that village, there was no a single internal combustion engine. All the works were made by draft animal force or human muscular force.
My vivid memories when a child there do not remember these people suffering more than their sons and grandsons living today in the cities or few of them still in the village where I have returned , but today highly mechanized, without a single draft animal now. Much on the contrary, people today sing and dance much less, smile much less, hug much less, talk much less to others, share much less. Very humble farmers were, seen now in retrospective, much more resilient than their today descendants, which despite being perhaps architects or executives, have food in the refrigerator for three days.
They all had the habit and the tradition in that village to produce food for themselves (survivability) and for their animals for a whole year (what today we could call the Mormon backpack) in stables and barns for their animals and in the granary for cereals or hanging from the roofs or in the cellar, by drying fruits or salting or stuffing meat, or muddling or bottling preserves. They were basically living on self sufficiency basis, with minimum crops devoted to barter them for the necessary tools or few clothes, which were not made locally. They used to store always a little bit more than what was required for themselves or to help a relative, friend or neighbor if or when required.
Of course, my relatives still alive, keep remembering me that this life was far from romantic and comfortable. From the physical point of view, it was much harder, life expectancy shorter, risk of dying from an animal kick as high as today in an automobile crash, heating much more poorer and tougher than today; callus in the hands (I remember the caress of my uncle on my face, for both his kindness and roughness) or chilbain in the ears in winter. No epidural for women in labor, no implants for tooth decays or cavities, etc. etc….but also with people not only being frightened for physical inconveniences and apparently assuming their fate. On the other hand, they all had much higher pain thresholds and understanding and accepting with more much naturalness life and death concepts than today. Psychologists and psychiatrists did not exist, or were rather their own relatives, friends and neighbors.
Coming back to gleaning, I remember them reaping and gleaning by hand with both sickles and scythes. What it calls my attention these days, when I travel through some wheat fields where the tall wheat stalks of about 1 m high. Now I realize that what our agro-industry has made is to select cereal varieties (always the short term income, efficiency and productivity in mind) of much shorter stalk to have more grain in the ears per plant. As harvesting is today absolutely mechanized, and they do not need any straw to complement animal draft food, it is obviously a more efficient system.
Now, let’s imagine for a minute that we could not use harvesting machines and had only the present varieties of wheat to plant them and to reap and gleaning them by hand, with jut sickles and scythes and our much softer kidneys and backs than those of our ancestors and without draft animals in our garages nor with enough straw and barley to feed them.
Perfect storms everywhere, if the liquid fuels flows fail one day, prepare your kidneys and your backs, but in exchange please, smile, sing and dance like in the past and do not fear or be frightened in front of the difficulties.
[and later on, within this exchange of ideas on an energy forum, the following]:

In my trips to Southern Spain, I have observed a dramatic change in the last years, with the alibi that drip irrigation saves water.

The last three decades have seen a dramatic increase of these irrigation systems. Spain had the biggest production of olive oil (I believe still has). Many of the olive trees were centenary and few even millenary.

They were usually grown and cultivated with three trunks from one base, so that manual harvesting could be easier. The method was to gently and carefully beat with sticks and pick the olives from the ground. About one century ago, they extended blankets on the ground and collected them at once.

The olive trees were usually planted in dry areas, without irrigation and keeping a 12*12 m, distance frame among them (called marco real), so that the roots could both develop in surface without jeopardizing neighboring trees and get nutrients, but also could grow downwards, in search for humidity.

These trees wee very much adapted to climate and became very resistant to droughts, with the only known limitation that in years of drought, the crops will be lower, something that was admitted.

Today, with the advent of new technologies, I have seen a dramatic and sad change: the centenary trees are uprooted and replaced by new olive trees, which have only one straight trunk. They are planted in much smaller frames (4*4 m. or even less) and are pruned in trellis. They are receiving drip irrigation (water+fertilizer) through the plastic pipes. And of course, the crops are much higher and independent of the droughts (while there is water in reservoirs) than the old ones.

This makes a lot of economic sense and gives the farmers the regular income, as if they ere also a public officer or an executive in a company in the city, to copy their level of living (car+tv+gadgets,+leisure time+tourism, etc.) Harvesting is made now by means of machines hugging the single trunk and vibrating it, with a tool as a deployed inverted umbrella below or by means of a harvesting machine taller than the trees (which are not allowed to grow more than a limit) going along the furrow and doing that tree after tree.

The new olive trees have now lazy roots, that do not grow, not horizontally (have no place) and not vertically downwards, because they have water and nutrients just on the base of the trunk.

If one day, the societal system collapses for lack of imported energy to power the pumps, to replace filters or valves or digital programmers or plastic pipes (every two or three years need replacement), the whole olive trees will not resist the minimum drought.

What I have mentioned for olive trees, can be extended to all type of fruit trees in most of Spain. At the end, we are not saving water, because this is taken as a business as usual that provides very good income by exporting fruits and olive oil to the rest of Europe and the world.

Poor civilization.

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Dmitry Orlov: How Russians survived the collapse of the Soviet Union

[ A great post by Dmitry Orlov about what collapse may be like, the best strategies to survive, and why the Russian way of life and culture prepared them far better for hard times than will be the case in America. Related posts:

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: Derrick Jensen, Practical Prepping, KunstlerCast 253, KunstlerCast278, Peak Prosperity , XX2 report ]

Dmitry Orlov. Part I.  June 1, 2005.  Post-Soviet Lessons for a Post-American Century.

http://www.fromthewilderness.com/free/ww3/060105_soviet_lessons.shtml

A decade and a half ago the world went from bipolar to unipolar, because one of the poles fell apart: The Soviet Union (S.U.) is no more. The other pole – symmetrically named the U.S. – has not fallen apart – yet, but there are ominous rumblings on the horizon. The collapse of the United States seems about as unlikely now as the collapse of the Soviet Union seemed in 1985. The experience of the first collapse may be instructive to those who wish to survive the second.

Reasonable people would never argue that that the two poles were exactly symmetrical; along with significant similarities, there were equally significant differences, both of which are valuable in predicting how the second half of the clay-footed superpower giant that once bestrode the planet will fare once it too falls apart.

I have wanted to write this article for almost a decade now. Until recently, however, few people would have taken it seriously. After all, who could have doubted that the world economic powerhouse that is the United States, having recently won the Cold War and the Gulf War, would continue, triumphantly, into the bright future of superhighways, supersonic jets, and interplanetary colonies?

But more recently the number of doubters has started to climb steadily. The U.S. is desperately dependent on the availability of cheap, plentiful oil and natural gas, and addicted to economic growth. Once oil and gas become expensive (as they already have) and in ever-shorter supply, economic growth will stop, and the U.S. economy will collapse.

In October 2004, when I started working on it, an Internet search for “peak oil” and “economic collapse” yielded about 16,300 documents; by April of 2005 that number climbed to 4,220,000. This is a dramatic change in public opinion only, because what is known on the subject now is more or less what was known a decade or so ago, when there was exactly one Web site devoted to the subject: Jay Hanson’s Dieoff.org. This sea change in public opinion is not restricted to the Internet, but is visible in the mainstream and the specialist press as well. Thus, the lack of attention paid to the subject over the decades resulted not from ignorance, but from denial: although the basic theory that is used to model and predict resource depletion has been well understood since the 1960s, most people prefer to remain in denial.

Denial

Although this is a bit off the subject of Soviet collapse and what it may teach us about our own, I can’t resist saying a few words about denial, for it is such an interesting subject. I also hope that it will help some of you to go beyond denial, this being a helpful step towards understanding what I am going to say here.

Now that a lot of the predictions are coming true more or less on schedule, and it is becoming increasingly difficult to ignore the steady climb of energy prices and the dire warnings from energy experts of every stripe, outright denial is being gradually replaced with subtler forms of denial, which center around avoiding any serious, down-to-earth discussion of the likely actual consequences of peak oil, and of the ways one might cope with them.

Instead, there is much discussion of policy: what “we” should do. The “we” in question is presumably some embodiment of the great American Can-Do Spirit: a brilliantly organized consortium of government agencies, leading universities and research centers, and major corporations, all working together toward the goal of providing plentiful, clean, environmentally safe energy, to fuel another century of economic expansion. Welcome to the sideshow at the end of the universe!

One often hears that “We could get this done, if only we wanted to.” Most often one hears this from non-specialists, sometimes from economists, and hardly ever from scientists or engineers. A few back-of-the-envelope calculations are generally enough to suggest otherwise, but here logic runs up against faith in the Goddess of Technology: that she will provide. On her altar are assembled various ritualistic objects used to summon the Can-Do Spirit: a photovoltaic cell, a fuel cell, a vial of ethanol, and a vial of bio-diesel. Off to the side of the altar is a Pandora’s box packed with coal, tar sand, oceanic hydrates, and plutonium: if the Goddess gets angry, it’s curtains for life on Earth.

But let us look beyond mere faith, and focus on something slightly more rational instead. This “we,” this highly organized, high-powered problem-solving entity, is quickly running out of energy, and once it does, it will not be so high-powered any more. I would like to humbly suggest that any long-term plan it attempts to undertake is doomed, simply because crisis conditions will make long-term planning, along with large, ambitious projects, impossible. Thus, I would suggest against waiting around for some miracle device to put under the hood of every SUV and in the basement of every McMansion, so that all can live happily ever after in this suburban dream, which is looking more and more like a nightmare in any case.

The next circle of denial revolves around what must inevitably come to pass if the Goddess of Technology were to fail us: a series of wars over ever more scarce resources. Paul Roberts, who is very well informed on the subject of peak oil, has this to say: “what desperate states have always done when resources turn scarce… [is] fight for them.”  [MotherJones.com, 11/12 2004] Let us not argue that this has never happened, but did it ever amount to anything more than a futile gesture of desperation? Wars take resources, and, when resources are already scarce, fighting wars over resources becomes a lethal exercise in futility. Those with more resources would be expected to win. I am not arguing that wars over resources will not occur. I am suggesting that they will be futile, and that victory in these conflicts will be barely distinguishable from defeat. I would also like to suggest that these conflicts would be self-limiting: modern warfare uses up prodigious amounts of energy, and if the conflicts are over oil and gas installations, then they will get blown up, as has happened repeatedly in Iraq. This will result in less energy being available and, consequently, less warfare.

Take, for example, the last two US involvements in Iraq. In each case, as a result of US actions, Iraqi oil production decreased. It now appears that the whole strategy is a failure. Supporting Saddam, then fighting Saddam, then imposing sanctions on Saddam, then finally overthrowing him, has left Iraqi oil fields so badly damaged that the “ultimate recoverable” estimate for Iraqi oil is now down to 10-12% of what was once thought to be underground (according to the New York Times).

Some people are even suggesting a war over resources with a nuclear endgame. On this point, I am optimistic. As Robert McNamara once thought, nuclear weapons are too difficult to use. And although he has done a great deal of work to make them easier to use, with the introduction of small, tactical, battlefield nukes and the like, and despite recently renewed interest in nuclear “bunker busters,” they still make a bit of a mess, and are hard to work into any sort of a sensible strategy that would reliably lead to an increased supply of energy. Noting that conventional weapons have not been effective in this area, it is unclear why nuclear weapons would produce better results.

But these are all details; the point I really want to make is that proposing resource wars, even as a worst-case scenario, is still a form of denial. The implicit assumption is this: if all else fails, we will go to war; we will win; the oil will flow again, and we will be back to business as usual in no time. Again, I would suggest against waiting around for the success of a global police action to redirect the lion’s share of the dwindling world oil supplies toward the United States.

Outside this last circle of denial lies a vast wilderness called the Collapse of Western Civilization, roamed by the Four Horsemen of the Apocalypse, or so some people will have you believe. Here we find not denial but escapism: a hankering for a grand finale, a heroic final chapter. Civilizations do collapse – this is one of the best-known facts about them – but as anyone who has read The Decline and Fall of the Roman Empire will tell you, the process can take many centuries.

What tends to collapse rather suddenly is the economy. Economies, too, are known to collapse, and do so with far greater regularity than civilizations. An economy does not collapse into a black hole from which no light can escape. Instead, something else happens: society begins to spontaneously reconfigure itself, establish new relationships, and evolve new rules, in order to find a point of equilibrium at a lower rate of resource expenditure.

Note that the exercise carries a high human cost: without an economy, many people suddenly find themselves as helpless as newborn babes. Many of them die, sooner than they would otherwise: some would call this a “die-off.” There is a part of the population that is most vulnerable: the young, the old, and the infirm; the foolish and the suicidal. There is also another part of the population that can survive indefinitely on insects and tree bark. Most people fall somewhere in between.

Economic collapse gives rise to new, smaller and poorer economies. That pattern has been repeated many times, so we can reason inductively about similarities and differences between a collapse that has already occurred and one that is about to occur. Unlike astrophysicists, who can confidently predict whether a given star will collapse into a neutron star or a black hole based on measurements and calculations, we have to work with general observations and anecdotal evidence. However, I hope that my thought experiment will allow me to guess correctly at the general shape of the new economy, and arrive at survival strategies that may be of use to individuals and small communities.

The Collapse of the Soviet Union – an Overview

What happens when a modern economy collapses, and the complex society it supports disintegrates? A look at a country that has recently undergone such an experience can be most educational. We are lucky enough to have such an example in the Soviet Union. I spent about six months living, traveling, and doing business in Russia during the perestroika period and immediately afterward, and was fascinated by the transformation I witnessed.

The specifics are different, of course. The Soviet problems seem to have been largely organizational rather than physical in nature, although the fact that the Soviet Union collapsed just 3 years after reaching peak oil production is hardly a coincidence. The ultimate cause of Soviet Union’s spontaneous collapse remains shrouded in mystery. Was it Ronald Reagan’s Star Wars? Or was it Raisa Gorbachev’s American Express card? It is possible to fake a missile defense shield; but it is not so easy to fake a Herod’s department store. The arguments go back and forth. One contemporary theory would have it that the Soviet elite scuttled the whole program when they decided that Soviet Socialism was not going to make them rich. (It remains unclear why it should have taken the Soviet elite 70 years to come to this startlingly obvious conclusion).

A slightly more commonsense explanation is this: during the pre-perestroika “stagnation” period, due to the chronic under-performance of the economy, coupled with record levels of military expenditure, trade deficit, and foreign debt, it became increasingly difficult for the average Russian middle-class family of three, with both parents working, to make ends meet. (Now, isn’t that beginning to sound familiar?) Of course, the government bureaucrats were not too concerned about the plight of the people. But the people found ways to survive by circumventing government controls in a myriad of ways, preventing the government from getting the results it needed to keep the system going. Therefore, the system had to be reformed. When this became the consensus view, reformers lined up to try and reform the system. Alas, the system could not be reformed. Instead of adapting, it fell apart.

Russia was able to bounce back economically because it remains fairly rich in oil and very rich in natural gas, and will probably continue in relative prosperity for at least a few more decades. In North America, on the other hand, oil production peaked in the early 1970s and has been in decline ever since, while natural gas production is now set to fall off a production cliff. Yet energy demand continues to rise far above what the continent can supply, making such a spontaneous recovery unlikely. When I say that Russia bounced back, I am not trying to understate the human cost of the Soviet collapse, or the lopsidedness and the economic disparities of the re-born Russian economy. But I am suggesting that where Russia bounced back because it was not fully spent, the United States will be more fully spent, and less capable of bouncing back.

But such “big picture” differences are not so interesting. It is the micro-scale similarities that offer interesting practical lessons on how small groups of individuals can successfully cope with economic and social collapse. And that is where the post-Soviet experience offers a multitude of useful lessons.

Returning to Russia

I first flew back to Leningrad, which was soon to be rechristened St. Petersburg, in the summer of 1989, about a year after Gorbachev freed the last batch of political prisoners, my uncle among them, who had been locked up by General Secretary Andropov’s final, senile attempt at clenching an iron fist. For the first time it became possible for Soviet escapees to go back and visit. More than a decade had passed since I left, but the place was much as I remembered it: bustling streets full of Volgas and Ladas, Communist slogans on the roofs of towering buildings lit up in neon, long lines in shops.

About the only thing new was a bustle of activity around a newly organized Cooperative movement. A newly hatched entrepreneurial class was busy complaining that their cooperatives were only allowed to sell to the government, at government prices, while hatching ingenuous schemes to skim something off the top through barter arrangements. Most were going bankrupt. It did not turn out to be a successful business model for them or for the government, which was, as it turned out, also on its last legs.

I went back a year later, and found a place I did not quite recognize. First of all, it smelled different: the smog was gone. The factories had largely shut down, there was very little traffic, and the fresh air smelled wonderful! The stores were largely empty and often closed. There were very few gas stations open, and the ones that were open had lines that stretched for many blocks. There was a ten-liter limit on gasoline purchases.

Since there was nothing better for us to do, my friends and I decided to take a road trip, to visit the ancient Russian cities of Pskov and Novgorod, taking in the surrounding countryside along the way. For this, we had to obtain fuel. It was hard to come by. It was available on the black market, but no one felt particularly inclined to let go of something so valuable in exchange for something so useless as money. Soviet money ceased to have value, since there was so little that could be bought with it, and people still felt skittish around foreign currency.

Luckily, there was a limited supply of another sort of currency available to us. It was close to the end of Gorbachev’s ill-fated anti-alcoholism campaign, during which vodka was rationed. There was a death in my family, for which we received a funeral’s worth of vodka coupons, which we of course redeemed right away. What was left of the vodka was placed in the trunk of the trusty old Lada, and off we went. Each half-liter bottle of vodka was exchanged for ten liters of gasoline, giving vodka far greater effective energy density than rocket fuel.

There is a lesson here: when faced with a collapsing economy, one should stop thinking of wealth in terms of money. Access to actual physical resources and assets, as well as intangibles such as connections and relationships, quickly becomes much more valuable than mere cash.

Two years later, I was back again, this time in the dead of winter. I was traveling on business through Minsk, St. Petersburg and Moscow. My mission was to see whether any of the former Soviet defense industry could be converted to civilian use. The business part of the trip was a total fiasco and a complete waste of time, just as one would expect. In other ways, it was quite educational.

Minsk seemed like a city rudely awakened from hibernation. During the short daylight hours, the streets were full of people, who just stood around, as if wondering what to do next. The same feeling pervaded the executive offices, where people I used to think of as the representatives of the “evil empire” sat around under dusty portraits of Lenin bemoaning their fate. No one had any answers.

The only beam of sunshine came from a smarmy New York lawyer who hung around the place trying to organize a state lottery. He was almost the only man with a plan. (The director of a research institute which was formerly charged with explosion-welding parts for nuclear fusion reactor vessels, or some such thing, also had a plan: he wanted to build summer cottages.) I wrapped up my business early and caught a night train to St. Petersburg. On the train, a comfortable old sleeper car, I shared a compartment with a young, newly retired army doctor, who showed me his fat roll of hundred-dollar bills and told me all about the local diamond trade. We split a bottle of cognac and snoozed off. It was a pleasant trip.

St. Petersburg was a shock. There was a sense of despair that hung in the winter air. There were old women standing around in spontaneous open-air flea markets trying to sell toys that probably belonged to their grandchildren, to buy something to eat. Middle-class people could be seen digging around in the trash. Everyone’s savings were wiped out by hyperinflation. I arrived with a large stack of one-dollar bills. Everything was one dollar, or a thousand rubles, which was about five times the average monthly salary. I handed out lots of these silly thousand-ruble notes: “Here, I just want to make sure you have enough.” People would recoil in shock: “That’s a lot of money!” “No, it isn’t. Be sure to spend it right away.” However, all the lights were on, there was heat in many of the homes, and the trains ran on time.

My business itinerary involved a trip to the countryside to tour and to have meetings at some scientific facility. The phone lines to the place were down, and so I decided to just jump on a train and go there. The only train left at 7 am. I showed up around 6, thinking I could find breakfast at the station. The station was dark and locked. Across the street, there was a store selling coffee, with a line that wrapped around the block. There was also an old woman in front of the store, selling buns from a tray. I offered her a thousand-ruble note. “Don’t throw your money around!” she said. I offered to buy her entire tray. “What are the other people going to eat?” she asked. I went and stood in line for the cashier, presented my thousand-ruble note, got a pile of useless change and a receipt, presented the receipt at the counter, collected a glass of warm brown liquid, drank it, returned the glass, paid the old woman, got my sweet bun, and thanked her very much. It was a lesson in civility.

Three years later, I was back again, and the economy had clearly started to recover, at least to the extent that goods were available to those who had money, but enterprises were continuing to shut down, and most people were still clearly suffering. There were new, private stores, which had tight security, and which sold imported goods for foreign currency. Very few people could afford to shop at these stores. There were also open air markets in many city squares, at which most of the shopping was done. Many kinds of goods were dispensed from locked metal booths, quite a few of which belonged to the Chechen mafia: one shoved a large pile of paper money through a hole and was handed back the item.

There were sporadic difficulties with the money supply. I recall standing around waiting for banks to open in order to cash my traveler’s checks. The banks were closed because they were fresh out of money; they were all waiting for cash to be delivered. Once in a while, a bank manager would come out and make an announcement: the money is on its way, no need to worry.

There was a great divide between those who were unemployed, underemployed, or working in the old economy, and the new merchant class. For those working for the old state-owned enterprises – schools, hospitals, the railways, the telephone exchanges, and what remained of the rest of the Soviet economy – it was lean times. Salaries were paid sporadically, or not at all. Even when people got their money, it was barely enough to subsist on.

But the worst of it was clearly over. A new economic reality had taken hold. A large segment of the population saw its standard of living reduced, sometimes permanently. It took the economy ten years to get back to its pre-collapse level, and the recovery was uneven. Alongside the nouveau riche, there were many whose income would never recover. Those who could not become part of the new economy, especially the pensioners, but also many others, who had benefited from the now defunct socialist state, could barely eke out a living.

This thumbnail sketch of my experiences in Russia is intended to convey a general sense of what I had witnessed. But it is the details of what I have observed that I hope will be of value to those who see an economic collapse looming ahead, and want to plan, in order to survive it.

Similarities between the Superpowers

Some would find a direct comparison between the United States and the Soviet Union incongruous, if not downright insulting. After all, what grounds are there to compare a failed Communist empire to the world’s largest economy? Others might find it humorous that the loser might have advice for the winner in what they might see as an ideological conflict. Since the differences between the two appear glaring to most, let me just indicate some similarities, which I hope you will find are no less obvious.

The Soviet Union and the United States are each either the winner or the first runner-up in the following categories: the space race, the arms race, the jails race, the hated evil empire race, the squandering of natural resources race, and the bankruptcy race. In some of these categories, the United States is, shall we say, a late bloomer, setting new records even after its rival was forced to forfeit. Both believed, with giddy zeal, in science, technology, and progress, right up until the Chernobyl disaster occurred. After that, there was only one true believer left.

They are the two post-World War II industrial empires that attempted to impose their ideologies on the rest of the world: democracy and capitalism versus socialism and central planning. Both had some successes: while the United States reveled in growth and prosperity, the Soviet Union achieved universal literacy, universal health care, far less social inequality, and a guaranteed – albeit lower – standard of living for all citizens. The state-controlled media took pains to make sure that most people didn’t realize just how much lower it was: “Those happy Russians don’t know how badly they live,” Simone Signoret said after a visit.

Both empires made a big mess of quite a few other countries, each one financing and directly taking part in bloody conflicts around the world in order to impose its ideology, and to thwart the other. Both made quite a big mess of their own country, setting world records for the percentage of population held in jails ( South Africa was a contender at one point). In this last category, the U.S. is now a runaway success, supporting a burgeoning, partially privatized prison-industrial complex (a great source of near-slave wage labor).

While the United States used to have far more goodwill around the world than the Soviet Union, the “evil empire” gap has narrowed since the Soviet Union disappeared from the scene. Now, in many countries around the world, including Western countries like Sweden, the United States ranks as a bigger threat to peace than Iran or North Korea. In the hated-empire race, the United States is now beginning to look like the champion. Nobody likes a loser, but especially if the loser is a failed superpower. Nobody had any pity for the poor defunct Soviet Union; and nobody will have any pity for poor defunct America either.

The bankruptcy race is particularly interesting. Prior to its collapse, the Soviet Union was taking on foreign debt at a rate that could not be sustained. The combination of low world oil prices and a peak in Soviet oil production sealed its fate. Later, the Russian Federation, which inherited the Soviet foreign debt, was forced to default on its obligations, precipitating a financial crisis. Russia’s finances later improved, primarily due to rising oil prices, along with rising oil exports. At this point, Russia is eager to wipe out the remaining Soviet debt as quickly as possible, and over the past few years the Russian rouble has done just a bit better than the U.S. dollar.

The United States is now facing a current account deficit that cannot be sustained, a falling currency, and an energy crisis, all at once. It is now the world’s largest debtor nation, and most people do not see how it can avoid defaulting on its debt. According to a lot of analysts, it is technically bankrupt, and is being propped up by foreign reserve banks, which hold a lot of dollar-denominated assets, and, for the time being, want to protect the value of their reserves. This game can only go on for so long. Thus, while the Soviet Union deserves honorable mention for going bankrupt first, the gold in this category (pun intended) will undoubtedly go to the United States, for the largest default ever.

There are many other similarities as well. Women received the right to education and a career in Russia earlier than in the U.S. Russian and American families are in similarly sad shape, with high divorce rates and many out-of-wedlock births, although the chronic shortage of housing in Russia did force many families to stick it out, with mixed results. Both countries have been experiencing chronic depopulation of farming districts. In Russia, family farms were decimated during collectivization, along with agricultural output; in the U.S., a variety of other forces produced a similar result with regard to rural population, but without any loss of production. Both countries replaced family farms with unsustainable, ecologically disastrous industrial agribusiness, addicted to fossil fuels. The American ones work better, as long as energy is cheap, and, after that, probably not at all.

The similarities are too numerous to mention. I hope that what I outlined above is enough to signal a key fact: that these are, or were, the antipodes of the same industrial, technological civilization.

 

PART II.  June 28, 2005. Differences between the Superpowers: Ethnicity.

http://www.fromthewilderness.com/free/ww3/062805_soviet_lessons_part2.shtml

Our thumbnail sketch of the two superpowers would not be complete without a comparison of some of the differences, which are no less glaring than the similarities.

The United States has traditionally been a very racist country, with numerous categories of people one wouldn’t want one’s daughter or sister to marry, no matter who one happens to be. It was founded on the exploitation of African slaves and the extermination of the natives. Over its formative years, there was no formal intermarriage between the Europeans and the Africans, or the Europeans and the Indians. This stands in stark contrast to other American continent nations such as Brazil. To this day in the U.S. there remains a disdainful attitude toward any tribe other than the Anglo-Saxon. Glazed over with a layer of political correctness, at least in polite society, it comes out again when observing whom most such Anglo-Saxon people actually choose to marry, or date.

Russia is a country whose ethnic profile shifts slowly from mainly European in the West to Asian in the East. Russia’s settlement of its vast territory was accompanied by intermarriage with every tribe the Russians met on their drive east. One of the formative episodes of Russian history was the Mongol invasion, which resulted in a large infusion of Asian blood into Russian genealogy. On the other side, Russia received quite a few immigrants from Western Europe. Currently, Russia’s ethnic problems are limited to combating ethnic mafias, and to the many small but humiliating episodes of anti-Semitism, which has been a feature Russian society for centuries, and, in spite of which, Jews, my family included, have done quite well there. Jews were barred from some of the more prestigious universities and institutes, and were held back in other ways (for instance, lynching).

The United States remains a powder keg of ethnic tension, where urban blacks feel oppressed by suburban whites, who in turn fear to venture into major sections of the cities. In a time of permanent crisis, urban blacks might well riot and loot the cities, because they don’t own them, and the suburban whites are likely to get foreclosed out of their “little cabins in the woods,” as James Kunstler charmingly calls them, and decamp to a nearby trailer park. Add to this already volatile mixture the fact that firearms are widely available, and the fact that violence permeates American society, particularly in the South, the West, and the dead industrial cities like Detroit.

In short, the social atmosphere of post-collapse America is unlikely to be as placid and amicable as that of post-collapse Russia. At least in parts, it is more likely to resemble other, more ethnically mixed, and therefore less fortunate parts of the Former Soviet Union, such as the Fergana valley and, of course, that “beacon of freedom” in the Caucasus, Georgia (or so says the U.S. President).

No part of the United States is an obvious choice for the survival-minded, but some are obviously riskier than others. Any place with a history of racial or ethnic tension is probably unsafe. This rules out the South, the Southwest, and many large cities elsewhere. Some people might find a safe harbor in an ethnically homogeneous enclave of their own kind, while the rest would be well-advised to look for the few communities where inter-ethnic relations have been cemented through integrated living and intermarriage, and where the strange and fragile entity that is multi-ethnic society might have a chance of holding together.

Differences between the Superpowers: Ownership

Another key difference: in the Soviet Union, nobody owned their place of residence. What this meant is that the economy could collapse without causing homelessness: just about everyone went on living in the same place as before. There were no evictions or foreclosures. Everyone stayed put, and this prevented society from disintegrating.

One more difference: the place where they stayed put was generally accessible by public transportation, which continued to run during the worst of times. Most of the Soviet-era developments were centrally planned, and central planners do not like sprawl: it is too difficult and expensive to service. Few people owned cars, and even fewer depended on cars for getting around. Even the worst gasoline shortages resulted in only minor inconveniences for most people: in the springtime, they made it difficult to transport seedlings from the city to the dacha for planting; in the fall, they made it difficult to haul the harvest back to the city.

Differences between the Superpowers: Labor Profile

The Soviet Union was entirely self-sufficient when it came to labor. Both before and after the collapse, skilled labor was one of its main exports, along with oil, weapons, and industrial machinery. Not so with the United States, where not only is most of the manufacturing being carried out abroad, but a lot of service back home is being provided by immigrants as well. This runs the gamut from farm labor, landscaping, and office cleaning to the professions, such as engineering and medicine, without which society and its infrastructure would unravel. Most of these people came to the United States to enjoy the superior standard of living — for as long as it remains superior. Many of them will eventually head home, leaving a gaping hole in the social fabric.

I have had a chance to observe quite a few companies in the U.S. from the inside, and have spotted a certain constancy in the staffing profile. At the top, there is a group of highly compensated senior lunch-eaters. They tend to spend all of their time pleasing each other in various ways, big and small. They often hold advanced degrees in disciplines such as Technical Schmoozing and Relativistic Bean-counting. They are obsessive on the subject of money, and cultivate a posh country set atmosphere, even if they are just one generation out of the coal mines. Ask them to solve a technical problem — and they will politely demur, often taking the opportunity to flash their wit with a self-deprecating joke or two.

Somewhat further down the hierarchy are the people who actually do the work. They tend to have fewer social graces and communication skills, but they do know how to get the work done. Among them are found the technical innovators, who are often the company’s raison d’être.

More often than not, the senior lunch-eaters at the top are native-born Americans, and, more often than not, the ones lower down are either visiting foreigners or immigrants. These find themselves in a variety of situations, from the working visa holders who are often forced to choose between keeping their job and going home, to those who are waiting for a green card and must play their other cards just right, to those who have one, to citizens.

The natives at the top always try to standardize the job descriptions and lower the pay scale of the immigrants at the bottom, playing them against each other, while trying to portray themselves as super-achieving entrepreneurial mavericks who can’t be pinned down to a mere set of marketable skills. The opposite is often the case: the natives are often the commodity items, and would perform similar functions whether their business were biotechnology or salted fish, while those who work for them may be unique specialists, doing what has never been done before.

It is no surprise that this situation should have come about. For the last few generations, native-born Americans have preferred disciplines such as law, communications, and business administration, while immigrants and foreigners tended to choose the sciences and engineering. All their lives the natives were told to expect prosperity without end, and so they felt safe in joining professions that are mere embroidery on the fabric of an affluent society.

This process became known as “brain drain” — America’s extraction of talent from foreign lands, to its advantage, and to their detriment. This flow of brain power is likely to reverse direction, leaving the U.S. even less capable of finding ways to cope with its economic predicament. This may mean that, even in areas where there will be ample scope for innovation and development, such as restoration of rail service, or renewable energy, America may find itself without the necessary talent to make it happen.

Differences between the Superpowers: Religion

The last dimension worth mentioning along which the Soviet Union and the United States are in stark contrast is that of religion.

Pre-revolutionary Russia’s two-headed eagle symbolized the monarchy and the church, with a crown on one head and a miter on the other. Along with its somewhat holier manifestations, such as its iconography and its monastic tradition, the Russian church was as bloated with wealth and ostentation, and as oppressive, as the monarchy whose power it helped legitimize. But over the course of the 20th century Russia managed to evolve in a distinctly secular way, oppressing religious people with compulsory atheism.

The United States, uncharacteristically for a Western nation, remains a fairly religious place, where most people look for and find God in a church, or a synagogue, or a mosque. The colonies’ precocious move to leave the fold of the British Empire has made the U.S. something of a living fossil in terms of cultural evolution. This is manifested in some trivial ways, such as the inability to grasp the metric system (a problem considered mostly solved in England itself) or its distinctly 18th century tendency to make a fetish of its national flag, as well as in some major ones, such as its rather half-hearted embrace of secularism.

What this difference means in the context of economic collapse is, surprisingly, next to nothing. Perhaps the American is more likely than not to start quoting the Bible and going on about the Apocalypse, the end of times, and the Rapture. These thoughts, need I say, are not conducive to survival. But the supposedly atheist Russian turned out to be just as likely to go on about The End of the World, and flocked to the newly opened churches in search of certainty and solace.

Perhaps the more significant difference is not between the prevalence and the lack of religion, but the differences between the dominant religions. In spite of the architectural ostentation of the Russian Orthodox Church, and the pomp and circumstance of its rituals, its message has always been one of asceticism as the road to salvation. Salvation is for the poor and the humble, because one’s rewards are either in this world or the next, not both.

This is rather different from Protestantism, the dominant religion in America, which made the dramatic shift to considering wealth as one of God’s blessings, ignoring some inconvenient points rather emphatically made by Jesus to the effect that rich people are extremely unlikely to be saved. Conversely, poverty became associated with laziness and vice, robbing poor people of their dignity.

Thus, a Russian is less likely to consider sudden descent into poverty as a fall from God’s grace, and economic collapse as God’s punishment upon the people, while the religions that dominate America — Protestantism, Judaism, and Islam — all feature temporal success of their followers as a key piece of evidence that God is well-disposed toward them. What will happen once God’s good will toward them is no longer manifest? Chances are, they will become angry and try to find someone other than their own selves to blame, that being one of the central mechanisms of human psychology. We should look forward to unexpectedly wrathful congregations eager to do the work of an unexpectedly wrathful God.

The United States is by no means homogeneous when it comes to intensity of religious sentiment. When looking for a survivable place to settle, it is probably a good idea to look for a place where religious fervor does not run to extremes.

The Loss of Technological Comforts

Warning: what I am about to say may be somewhat unpleasant, but I’d like to get the issue out of the way. Most of the technological progress of the 20th century resulted in a higher level of physical comfort. Yes, that’s why we caused global warming, a hole in the ozone layer, and a mass extinction of plants, fish, birds, and mammals: to be somewhat more comfortable for a little while.

We all expect heating and air-conditioning, hot and cold water, reliable electricity, personal transportation, paved roads, illuminated streets and parking lots, maybe even high-speed Internet. Well, what if you had to give up all that? Or, rather, what will you do when you have to give up all that?

Most of our ancestors put up with a level of physical discomfort we would find appalling: no running hot water, an outhouse instead of a flush toilet, no central heat, and one’s own two feet, or a horse, as the main means for getting around. And still they managed to produce a civilization and a culture that we can just barely manage to emulate and preserve.

It doesn’t take a crisis to make public utilities go on the blink, but a crisis certainly helps. Any crisis will do: economic, financial, or even political. Consider the governor of Primorye, a region on the far side of Siberia, who simply stole all the money that was supposed to buy coal for the winter. Primorye froze. With winter temperatures around 40 below, it’s a wonder there’s anyone still living there. It’s a testament to human perseverance. As the economic situation degenerates, events seem to unfold in a certain sequence, regardless of locale. They always seem to lead to the same result: unsanitary conditions. But an energy crisis seems to me by far the most efficacious way of depriving one of one’s treasured utility services.

First, electricity begins to wink in and out. Eventually, this settles into a rhythm. Countries such as Georgia, Bulgaria and Romania, as well as some peripheral regions of Russia, have had to put up with a few hours of electricity a day, sometimes for several years. North Korea is perhaps the best Soviet pupil we have, surviving without much electricity for years. Lights flicker on as the sun begins to set. The generators struggle on for a few hours, powering light bulbs, television sets, and radios. When it’s time for bed, the lights wink out once again.

Second in line is heat. Every year, it comes on later and goes off sooner. People watch television or listen to the radio, when there’s electricity, or just sit, under piles of blankets. Sharing bodily warmth has been a favored survival technique among humans through the ice ages. People get used to having less heat, and eventually stop complaining. Even in these relatively prosperous times, there are apartment blocks in St. Petersburg that are heated every other day, even during the coldest parts of winter. Thick sweaters and down comforters are used in place of the missing buckets of coal.

Third in line is hot water: the shower runs cold. Unless you’ve been deprived of a cold shower, you won’t be able to appreciate it for the luxury that it affords. In case you are curious, it’s a quick shower. Get wet, lather up, rinse off, towel off, dress, and shiver, under several layers of blankets, and let’s not forget shared bodily warmth. A less radical approach is to wash standing in a bucket of warm water — heated up on the stove. Get wet, lather, rinse. And don’t forget to shiver.

Next, water pressure drops off altogether. People learn to wash with even less water. There is a lot of running around with buckets and plastic jugs. The worst part of this is not the lack of running water; it is that the toilets won’t flush. If the population is enlightened and disciplined, it will realize what it must do: collect their excretions in buckets and hand-carry them to a sewer inlet. The super-enlightened build outhouses and put together composting toilets, and use the proceeds to fertilize their kitchen gardens.

Under this combined set of circumstances, there are three causes of mortality to avoid. The first is simply avoiding freezing to death. It takes some preparation to be able to go camping in wintertime. But this is by far the easiest problem. The next is avoiding humans’ worst companions through the ages: bedbugs, fleas, and lice. These never fail to make their appearance wherever unwashed people huddle together, and spread diseases such as typhoid, which have claimed millions of lives. A hot bath and a complete change of clothes can be a lifesaver. The hair-free look becomes fashionable. Baking the clothes in an oven kills the lice and their eggs. The last is avoiding cholera and other diseases spread through feces by boiling all drinking water.

It seems safe to assume that the creature comforts to which we are accustomed are going to be few and far between. But if we are willing to withstand the little indignities of reading by candlelight, bundling up throughout the cold months, running around with buckets of water, shivering while standing in a bucket of tepid water, and carrying our poop out in a bucket, then none of this is enough to stop us from maintaining a level of civilization worthy of our ancestors, who probably had it worse than we ever will. They were either depressed or cheerful about it, in keeping with their personal disposition and national character, but apparently they survived, or you wouldn’t be reading this.

Economic Comparison

It can be said that the U.S. economy is run either very well or very badly. On the plus side, companies are lean, and downsized as needed to stay profitable, or at least in business. There are bankruptcy laws that weed out the unfit and competition to keep productivity going up. Businesses use just-in-time delivery to cut down on inventory and make heavy use of information technology to work out the logistics of operating in a global economy.

On the minus side, the U.S. economy runs ever larger structural deficits. It fails to provide the majority of the population with the sort of economic security that people in other developed nations take for granted. The United States spends more on medicine and education than many other countries, and gets less for it. Instead of a single government-owned airline, it has several permanently bankrupt government-supported ones. It spends heavily on law enforcement, and has a high crime rate. It continues to export high-wage manufacturing jobs and replace them with low-wage service jobs. As I mentioned before, it is, technically, bankrupt.

Both in the former Soviet Union and in North America, the landscape has fallen victim to a massive, centrally managed uglification program. Moscow’s central planners put up identical drab and soulless buildings throughout its territory, disregarding regional architectural traditions and erasing local culture. America’s land developers have played a largely similar role, with a similarly ghastly result: the United States of Generica, where many places can be told apart only by reading their highway signs.

In North America, there is also a pervasive childish idiocy that has spread desolation across the entire continent: the idiocy of the traffic engineer. As Jane Jacobs cleverly illustrates, these are not engineers of the sort that solve problems and draw conclusions based on evidence, but “little boys with toy cars happily murmuring ‘Zoom, Zooom, Zooooom!'” [Dark Age Ahead, p. 79] The landscape that makes them happy is designed to waste as much fuel as possible by trapping people in their cars and making them drive around in circles.

It can also be said that the Soviet economy was run either very well or very badly. On the plus side, that system, for all its many failings, managed to eradicate the more extreme forms of poverty, malnutrition, many diseases, and illiteracy. It provided economic security of an extreme sort: everyone knew exactly how much they would earn, and the prices of everyday objects remained fixed. Housing, health care, education, and pensions were all guaranteed. Quality varied; education was generally excellent, housing much less so, and Soviet medicine was often called “the freest medicine in the world” — with reasonable service achievable only through private arrangements.

On the minus side, the centrally planned behemoth was extremely inefficient, with high levels of loss and outright waste at every level. The distribution system was so inflexible that enterprises hoarded inventory. It excelled at producing capital goods, but when it came to manufacturing consumer goods, which require much more flexibility than a centrally planned system can provide, it failed. It also failed miserably at producing food, and was forced to resort to importing many basic foodstuffs. It operated a huge military and political empire, but, paradoxically, failed to derive any economic benefit from it, running the entire enterprise at a net loss.

Also paradoxically, these very failings and inefficiencies made for a soft landing. Because there was no mechanism by which state enterprises could go bankrupt, they often continued to operate for a time at some low level, holding back salaries or scaling back production. This lessened the number of instant mass layoffs or outright closings, but where these did occur, they were accompanied by very high mortality rates among men between the ages of 45 and 55, who turn out to be psychologically the most vulnerable to sudden loss of career, and who either drank themselves to death or committed suicide.

People could sometimes use their old, semi-defunct place of employment as a base of operations of sorts, from which to run the kind of black market business that allowed many of them to gradually transition to private enterprise. The inefficient distribution system, and the hoarding to which it gave rise, resulted in very high levels of inventory, which could be bartered. Some enterprises continued to operate in this manner, bartering their leftover inventory with other enterprises, in order to supply their employees with something they could use or sell.

What parallels can we draw from this to employment in the post-collapse United States? Public sector employment may provide somewhat better chances for keeping one’s job. For instance, it is unlikely that all schools, colleges, and universities will dismiss all of their faculty and staff at the same time. It is somewhat more likely that their salaries will not be enough to live on, but they may, for a time, be able to maintain their social niche. Properties and facilities management is probably a safe bet: as long as there are properties that are considered valuable, they will need to be looked after. When the time comes to dismantle them and barter off the pieces, it will help if they are still intact, and one has the keys to them.

Economic Collapse in the U.S.

A spontaneous soft landing is unlikely in the U.S., where a large company can decide to shut its doors by executive decision, laying off personnel and auctioning off capital equipment and inventory. Since in many cases the equipment is leased and the inventory is just-in-time and therefore very thin, a business can be made to evaporate virtually overnight. Since many executives may decide to cut their losses all at once, seeing the same economic projections and interpreting them similarly, the effect on communities can be utterly devastating.

Most people in the U.S. cannot survive very long without an income. This may sound curious to some people — how can anyone, anywhere survive without an income? Well, in post-collapse Russia, if you didn’t pay rent or utilities — because no-one else was paying them either — and if you grew or gathered a bit of your own food, and you had some friends and relatives to help you out, then an income was not a prerequisite for survival. Most people got by, somehow.

But most people in the U.S., once their savings are depleted, would in due course be forced to live in their car, or in some secluded stretch of woods, in a tent, or under a tarp. There is currently no mechanism by which landlords can be made not to evict deadbeat tenants, or banks be prevailed upon not to foreclose on nonperforming loans. A wholesale reintroduction of rent control seems politically unlikely. Once enough residential and commercial real estate becomes vacant, and law enforcement becomes lax or nonexistent, squatting becomes a real possibility. Squatters usually find it hard to get mail and other services, but this is a very minor issue. More importantly, they can be easily dislodged again and again.

Homelessness

The term “loitering” does not translate into Russian. The closest equivalent one can find is something along the lines of “hanging around” or “wasting time,” in public. This is important, because once nobody has a job to go to, the two choices they are presented with are sitting at home, and, as it were, loitering. If loitering is illegal, then sitting at home becomes the only choice.

The U.S. and the Soviet Union were at two extremes of a continuum between the public and the private. In the Soviet Union, most land was open to the public. Even apartments were often communal, meaning that the bedrooms were private, but the kitchen, bathroom, and hallway were common areas. In the U.S., most of the land is privately owned, some by people who put up signs threatening to shoot trespassers. Most public places are in fact private, marked “Customers Only” and “No Loitering.” Where there are public parks, these are often “closed” at night, and anyone trying to spend a night there is likely to be told to “move along” by the police.

After the collapse, Russia experienced a swelling of the ranks of people described by the acronym “BOMZh,” which is actually short for “BOMZh i Z,” and stands for “persons without a definite place of residence or employment.” The bomzhies, as they came to be called, often inhabited unused bits of the urban or rural landscape, where, with nobody to tell them to “move along,” they were left largely in peace. Such an indefinite place of residence was often referred to as bomzhatnik. English badly needs a term for that. Perhaps we could call it a “bum garden” — it is as much a garden as an “office park” is a park.

When the U.S. economy collapses, one would expect employment rates, and, with them, residency rates, to plummet. It is hard to estimate what percentage of the U.S. population would, as a result, become homeless, but it could be quite high, perhaps becoming so commonplace as to remove the stigma. A country where most of the neighborhoods are structured so as to exclude people of inadequate means, in order to preserve property values, is not a pleasant place to be a bum. Then again, when property values start dropping to zero, we may find that some of the properties spontaneously re-zone themselves into “bum gardens,” with no political will or power anywhere to do anything about it.

I do not mean to imply that Russian bums have a good time of it. But because most of the Russian population was able to keep their place of residence in spite of a collapsing economy, the percentage of bomzhies in the general population never made it into the double digits. These most unfortunate cases led short, brutal lives, often in an alcoholic haze, and accounted for quite a lot of Russia’s spike in post-collapse mortality. Some of them were refugees — Russians ethnically cleansed from the newly independent, suddenly nationalistic republics — who could not be easily reabsorbed into the Russian population due to Russia’s chronic housing shortage.

Communal Survival

Russia’s chronic housing shortage was partly caused by the spectacular decline of Russian agriculture, which caused people to migrate to the cities, and partly due simply to the inability of the government to put up buildings quickly enough. What the government wanted to put up was invariably an apartment building: 5 floors, 9 floors, and even some 14-floor towers. The buildings went up on vacant, or vacated, land, and were usually surrounded by a generous portion of wasteland, which, in the smaller cities and towns, and in places where the soil is not frozen year-round, or covered with sulfur or soot from a nearby factory, was quickly converted into kitchen gardens.

The quality of construction always looked a bit shabby, but has turned out to be surprisingly sound structurally and quite practical. Mostly it was reinforced concrete slab construction, with ceramic tile on the outside and hard plaster for insulation on the inside. It was cheap to heat, and usually had heat, at least enough of it so that the pipes wouldn’t freeze, with the steam supplied by a gigantic central boiler that served an entire neighborhood.

One often hears that the shabbiest of these Soviet-era apartment blocks, termed “Khrushcheby” — a melding of Khrushchev, who ordered them built, and “trushcheby” (Russian for “slums”) — are about to start collapsing, but they haven’t done so yet. Yes, they are dank and dreary, and the apartments are cramped, and the walls are cracked, and the roof often leaks, and the hallways and stairwells are dark and smell of urine, but it’s housing.

Because apartments were so hard to come by, with waiting lists stretched out for decades, several generations generally lived together. This was often an unpleasant, stressful, and even traumatic way to live, but also very cheap. Grandparents often did a lot of the work of raising children, while the parents worked. When the economy collapsed, it was often the grandparents who took to serious gardening and raised food during the summer months. Working-age people took to experimenting in the black market, with mixed results: some would get lucky and strike it rich, while for others it was lean times. With enough people living together, these accidental disparities tended to even out at least to some extent.

A curious reversal took place. Whereas before the collapse, parents were often in a position to provide some financial help to their adult children, now the opposite is true. Older people who do not have children are much more likely to live in poverty than those who have children to support them. Once financial capital is wiped out, human capital becomes essential.

A key difference between Russia and the U.S. is that Russians, like most people around the world, generally spend their entire lives living in one place, whereas Americans move around constantly. Russians generally know, or at least recognize, most of the people who surround them. When the economy collapses, everyone has to confront an unfamiliar situation. The Russians, at least, did not have to confront it in the company of complete strangers. On the other hand, Americans are far more likely than Russians to help out strangers, at least when they have something to spare.

Another element that was helpful to Russians was a particular feature of Russian culture: since money was not particularly useful in the Soviet era economy, and did not convey status or success, it was not particularly prized either, and shared rather freely. Friends thought nothing of helping each other out in times of need. It was important that everyone had some, not that one had more than the others. With the arrival of market economics, this cultural trait disappeared, but it persisted long enough to help people to survive the transition.

Smelling the Roses

Another note on culture: once the economy collapses, there is generally less to do, making it a good time for the naturally idle and a bad time for those predisposed to keeping busy.

Soviet-era culture had room for two types of activity: normal, which generally meant avoiding breaking a sweat, and heroic. Normal activity was expected, and there was never any reason to do it harder than expected. In fact, that sort of thing tended to be frowned upon by “the collective,” or the rank and file. Heroic activity was celebrated, but not necessarily rewarded financially.

Russians tend to look in bemused puzzlement on the American compulsion to “work hard and play hard.” The term “career” was in the Soviet days a pejorative term — the attribute of a “careerist” — someone greedy, unscrupulous, and overly “ambitious” (also a pejorative term). Terms like “success” and “achievement” were very rarely applied on a personal level, because they sounded overweening and pompous. They were reserved for bombastic public pronouncements about the great successes of the Soviet people. Not that positive personal characteristics did not exist: on a personal level, there was respect given to talent, professionalism, decency, sometimes even creativity. But “hard worker,” to a Russian, sounded a lot like “fool.”

A collapsing economy is especially hard on those who are accustomed to prompt, courteous service. In the Soviet Union, most official service was rude and slow, and involved standing in long lines. Many of the products that were in short supply could not be obtained even in this manner, and required something called blat: special, unofficial access or favor. The exchange of personal favors was far more important to the actual functioning of the economy than the exchange of money. To Russians, blat is almost a sacred thing: a vital part of culture that holds society together. It is also the only part of the economy that is collapse-proof, and, as such, a valuable cultural adaptation.

Most Americans have heard of Communism, and automatically believe that it is an apt description of the Soviet system, even though there was nothing particularly communal about a welfare state and a vast industrial empire run by an elitist central planning bureaucracy. But very few of them have ever heard of the real operative “ism” that dominated Soviet life: Dofenism, which can be loosely translated as “not giving a rat’s ass.” A lot of people, more and more during the “stagnation” period of the 1980’s, felt nothing but contempt for the system, did what little they had to do to get by (night watchman and furnace stoker were favorite jobs among the highly educated) and got all their pleasure from their friends, from their reading, or from nature.

This sort of disposition may seem like a cop-out, but when there is a collapse on the horizon, it works as psychological insurance: instead of going through the agonizing process of losing and rediscovering one’s identity in a post-collapse environment, one could simply sit back and watch events unfold. If you are currently “a mover and a shaker,” of things or people or whatever, then collapse will surely come as a shock to you, and it will take you a long time, perhaps forever, to find more things to move and to shake to your satisfaction. However, if your current occupation is as a keen observer of grass and trees, then, post-collapse, you could take on something else that’s useful, such as dismantling useless things.

The ability to stop and smell the roses — to let it all go, to refuse to harbor regrets or nurture grievances, to confine one’s serious attention only to that which is immediately necessary, and not to worry too much about the rest — is perhaps the one most critical to post-collapse survival. The most psychologically devastated are usually the middle-aged breadwinners, who, once they are no longer gainfully employed, feel completely lost. Detachment and indifference can be most healing, provided they do not become morbid. It is good to take your sentimental nostalgia for what once was, is, and will soon no longer be, up front, and get it over with.

Asset Stripping

Russia’s post-collapse economy was for a time dominated by one type of wholesale business: asset stripping. To put it in an American setting: suppose you have title, or otherwise unhindered access, to an entire suburban subdivision, which is no longer accessible by transportation, either public or private, too far to reach by bicycle, and is generally no longer suitable for its intended purpose of housing and accumulating equity for fully employed commuters who shop at the now defunct nearby mall. After the mortgages are foreclosed and the properties repossessed, what more is there to do, except board it all up and let it rot? Well, what has been developed can be just as easily undeveloped.

What you do is strip it of anything valuable or reusable, and either sell or stockpile the materials. Pull the copper out of the streets and the walls. Haul away the curbstones and the utility poles. Take down the vinyl siding. Yank out the fiberglass insulation. The sinks and windows can surely find a new use somewhere else, especially if no new ones are being made.

Having bits of the landscape disappear can be a rude surprise. One summer I arrived in St. Petersburg and found that a new scourge had descended on the land while I was gone: a lot of manhole covers were mysteriously missing. Nobody knew where they went or who profited from their removal. One guess was that the municipal workers, who hadn’t been paid in months, took them home with them, to be returned once they got paid. They did eventually reappear, so there may be some merit to this theory. With the gaping manholes positioned throughout the city like so many anteater traps for cars, you had the choice of driving either very slowly and carefully, or very fast, and betting your life on the proper functioning of the shock absorbers.

Post-collapse Russia’s housing stock stayed largely intact, but an orgy of asset stripping of a different kind took place: not just left-over inventory, but entire factories were stripped down and exported. What went on in Russia under the guise of privatization, is a subject for a different article, but whether it’s called “privatization” or “liquidation” or “theft” doesn’t matter: those with title to something worthless will find a way to extract value from it, making it even more worthless. An abandoned suburban subdivision might be worthless as housing, but valuable as a dump site for toxic waste.

Just because the economy is going to collapse in the most oil-addicted country on earth doesn’t necessarily mean that things will be just as bad everywhere else. As the Soviet example shows, if the entire country is for sale, buyers will materialize out of nowhere, crate it up, and haul it away. They will export everything: furnishings, equipment, works of art, antiques. The last remnant of industrial activity is usually the scrap iron business. There seems to be no limit to the amount of iron that can be extracted from a mature post-industrial site.

Food

The dismal state of Soviet agriculture turned out to be paradoxically beneficial in fostering a kitchen garden economy, which helped Russians to survive the collapse.

At one point it became informally known that 10% of the farmland — the part allocated to private plots — was being used to produce 90% of the food. Beyond underscoring the gross inadequacies of Soviet-style command and control industrial agriculture, it is indicative of a general fact: agriculture is far more efficient when it is carried out on a small scale, using manual labor.

Russians always grew some of their own food, and scarcity of high-quality produce in the government stores kept the kitchen garden tradition going during even the more prosperous times of the 60s and the 70s. After the collapse, these kitchen gardens turned out to be lifesavers. What many Russians practiced, either through tradition or by trial and error, or sheer laziness, was in some ways akin to the new organic farming and permaculture techniques. Many productive plots in Russia look like a riot of herbs, vegetables, and flowers growing in wild profusion.

Forests in Russia have always been used as an important additional source of food. Russians recognize, and eat, just about every edible mushroom variety, and all of the edible berries. During the peak mushroom season, which is generally in the fall, forests are overrun with mushroom-pickers. The mushrooms are either pickled or dried and stored, and often last throughout the winter.

Recreational Drug Use

A rather striking similarity between Russians and Americans is their propensity to self-medicate. While the Russian has traditionally been single-heartedly dedicated to the pursuit of vodka, the American is more likely than not to have also tried cannabis. Cocaine has also had a big effect on American culture, as have opiates. There are differences as well: the Russian is somewhat less likely to drink alone, or to be apprehended for drinking, or being drunk, in public. To a Russian, being drunk is almost a sacred right; to an American, it is a guilty pleasure. Many of the unhappier Americans are forced by their circumstances to drink and drive; this does not make them, nor the other drivers, nor the pedestrians (should any still exist) any happier.

The Russian can get furiously drunk in public, stagger about singing patriotic songs, fall into a snow bank, and either freeze to death or be carted off to a drunk tank. All this produces little or no remorse in him. Based on my reading of H. L. Mencken, America was also once upon a time a land of happy drunks, where a whiskey bottle would be passed around the courtroom at the start of the proceedings, and where a drunken jury would later render a drunken verdict, but Prohibition ruined all that. Russia’s prohibition lasted only a few short years, when Gorbachev tried to save the nation from itself, and failed miserably.

When the economy collapses, hard-drinking people everywhere find all the more reason to get drunk, but much less wherewithal with which to procure drink. In Russia, innovative market-based solutions were quickly improvised, which it was my privilege to observe. It was summer, and I was on a local electric train heading out of St. Petersburg. It was packed, so I stood in the vestibule of the car, and observed rainbows (it had just rained) through the missing windowpane. Soon, activity within the vestibule caught my attention: at each stop, grannies with jugs of moonshine would approach the car door and offer a sniff to the eager customers waiting inside. Price and quality were quickly discussed, an agreed-upon quantity was dispensed in exchange for a fistful of notes, jug to mug, and the train moved on. It was a tense atmosphere, because along with the paying customers there came many others, who were simply along for the ride, but expected their fair share nevertheless. I was forced to make a hasty exit and jam myself into the salon, because the freeloaders thought I was taking up valuable freeloading space.

There might be a few moonshine-makers left in rural parts of the United States, but most of the country seems to be addicted to cans and bottles of beer, or jugs, plastic or glass, of liquor. When this source dries up due to problems with interstate trucking, local breweries will no doubt continue to operate, and even expand production, to cope with both old and new demand, but there will still be plenty of room for improvisation. I would also expect cannabis to become even more widespread; it makes people less prone to violence than liquor, which is good, but it also stimulates their appetite, which is bad if there isn’t a lot of food. Still, it is much cheaper to produce than alcohol, which requires either grain or natural gas and complicated chemistry.

In all, I expect drugs and alcohol to become one of the largest short-term post-collapse entrepreneurial opportunities in the United States, along with asset stripping, and security.

 

Part III.  July 18, 2005.  Post-Soviet Lessons for a Post-American Century.

http://www.fromthewilderness.com/free/ww3/071805_soviet_lessons_part3.shtml

Loss of Normalcy

An early victim of collapse is the sense of normalcy. People are initially shocked to find that it’s missing, but quickly forget that such a thing ever existed, except for the odd vague tinge of nostalgia. Normalcy is not exactly normal: in an industrial economy, the sense of normalcy is an artificial, manufactured item.

We may be hurtling towards environmental doom, and thankfully never quite get there because of resource depletion, but, in the meantime, the lights are on, there is traffic on the streets, and, even if the lights go out for a while due to a blackout, they will be back on in due course, and the shops will reopen. Business as usual will resume. The sumptuous buffet lunch will be served on time, so that the assembled luminaries can resume discussion of measured steps we all need to take to avert certain disaster. The lunch is not served; then the lights go out. At some point, somebody calls the whole thing a farce, and the luminaries adjourn, forever.

In Russia, normalcy broke down in a series of steps. First, people stopped being afraid to speak their mind. Then, they stopped taking the authorities seriously. Lastly, the authorities stopped taking each other seriously. In the final act, Yeltsin got up on a tank and spoke the words “Former Soviet Union.”

In the Soviet Union, as this thing called normalcy wore thin due to the stalemate in Afghanistan, the Chernobyl disaster, and general economic stagnation, it continued to be enforced through careful management of mass media well into the period known as glasnost. In the United States, as the economy fails to create enough jobs for several years in a row, and the entire economy tilts towards bankruptcy, business as usual continues to be a top-selling product, or so we are led to believe. American normalcy circa 2005 seems as impregnable as Soviet normalcy circa 1985 once seemed.

If there is a difference between the Soviet and the American approaches to maintaining a sense of normalcy, it is this: the Soviets tried to maintain it by force, while the Americans’ superior approach is to maintain theirs through fear. You tend to feel more normal if you fear falling off your perch, and cling to it for dear life, than if somebody nails your feet to it.

More to the point: in a consumer society, anything that puts people off their shopping is dangerously disruptive, and all consumers sense this. Any expression of the truth about our lack of prospects for continued existence as a highly developed, prosperous industrial society is disruptive to the consumerist collective unconscious. There is a herd instinct to reject it, and therefore it fails, not through any overt action, but by failing to turn a profit, because it is unpopular.

In spite of this small difference in how normalcy is or was enforced, it was, and is being brought down, in the late Soviet Union as in the contemporary United States, through almost identical means, though with different technology. In the Soviet Union, there was something called samizdat, or self-publishing: with the help of manual typewriters and carbon paper, Russian dissidents managed to circulate enough material to neutralize the effects of enforced normalcy. In contemporary United States, we have web sites and bloggers: different technology, same difference. These are writings for which enforced normalcy is no longer the norm; the norm is the truth – or at least someone’s earnest approximation of it.

So what has become of these Soviet mavericks, some of whom foretold the coming collapse with some accuracy? To be brief, they faded from view. Both tragically and ironically, those who become experts in explaining the faults of the system and in predicting the course of its demise are very much part of the system. When the system disappears, so does their area of expertise, and their audience. People stop intellectualizing their predicament and start trying to escape it – through drink or drugs or creativity or cunning – but they have no time for pondering the larger context.

Security

Security in post-collapse Soviet Union was, shall we say, lax. I came through unscathed, but I know quite a few people who did not. A childhood friend of mine and her son were killed in their apartment over the measly sum of 100 dollars. An elderly lady I know was knocked out and had her jaw broken by a burglar who waited outside her door for her to come home, assaulted her, took her keys, and looted her place. There is an infinite supply of stories of this sort. Empires are held together through violence or the threat of violence. Both the U.S. and Russia were, and are, serviced by a legion of servants whose expertise is in using violence: soldiers, policemen, prison wardens, and private security consultants. Both countries have a surplus of battle-hardened men who have killed, who are psychologically damaged by the experience, and have no qualms about taking human life. In both countries, there are many, many people whose stock in trade is their use of violence, in offense or defense. No matter what else happens, they will be employed, or self-employed; preferably the former.

In a post-collapse situation, all of these violent men automatically fall into the general category of private security consultants. They have a way of creating enough work to keep their entire tribe busy: if you don’t hire them, they will still do the work, but against you rather than for you. Rackets of various sizes and shapes proliferate, and, if you have some property to protect, or wish to get something done, a great deal of your time and energy becomes absorbed by keeping your private security organization happy and effective. To round out the violent part of the population, there are also plenty of criminals. As their sentences expire, or as jail overcrowding and lack of resources force the authorities to grant amnesties, they are released into the wild, and return to a life of violent crime. But now there is nobody to lock them up again because the machinery of law enforcement has broken down due to lack of funds. This further exacerbates the need for private security, and puts those who cannot afford it at additional risk.

There is a continuum of sorts between those who can provide security and mere thugs. Those who can provide security also tend to know how to either employ or otherwise dispose of mere thugs. Thus, from the point of view of an uneducated security consumer, it is very important to work with an organization rather than with individuals. The need for security is huge: with a large number of desperate people about, anything that is not watched will be stolen. The scope of security-related activities is also huge: from sleepless grannies who sit in watch over the cucumber patch to bicycle parking lot attendants to house-sitters, and all the way to armed convoys and snipers on rooftops.

As the government, with its policing and law enforcement functions, atrophies, private, improvised security measures cover the security gap it leaves behind. In Russia, there was a period of years during which the police was basically not functioning: they had no equipment, no budget, and their salaries were not sufficient for survival. Murders went unsolved, muggings and burglaries were not even investigated. The police could only survive through graft. There was a substantial amount of melding between the police and organized crime. As the economy came back, it all got sorted out, to some extent. Where there is no reason to expect the economy to ever come back, one must learn how to make strange new friends, and keep them, for life.

Political Apathy

Before, during, and immediately after the Soviet collapse, there was a great deal of political activity by groups we might regard as progressive: liberal, environmentalist, pro-democracy reformers. These grew out of the dissident movements of the Soviet era, and made quite a significant impact for a time. A decade later “democracy” and “liberalism” are generally considered dirty words in Russia, commonly associated with exploitation of Russia by foreigners and other rot. The Russian state is centrist, with authoritarian tendencies. Most Russians dislike and distrust their government, but are afraid of weakness, and want a strong hand at the helm.

It is easy to see why political idealism fails to thrive in the murky post-collapse political environment. There is a strong pull to the right by nationalists who want to find scapegoats (inevitably, foreigners and ethnic minorities), a strong pull to the center by members of the ancien regime trying to hold on to remnants of their power, and a great upwelling of indecision, confusion, and inconclusive debate on the left, by those trying to do good, and failing to do anything. Sometimes the liberals get a chance to try an experiment or two. Yegor Gaidar got to try some liberal economic reforms under Yeltsin. He is a tragicomic figure, and many Russians now cringe when remembering his efforts (and to be fair, we don’t even know how helpful or damaging his reforms might have been, since most of them were never implemented).

The liberals, reformists, and progressives in the United States, whether self-styled or so labeled, have had a hard time implementing their agenda. Even their few hard-won victories, such as Social Security, may get dismantled. Even when they managed to elect a president more to their liking, the effects were, by Western standards, reactionary. There was the Carter doctrine, according to which the United States will protect its access to oil by military aggression if necessary. There was also Clinton’s welfare reform, which forced single mothers to work menial jobs while placing their children in substandard daycare.

People in the United States have a broadly similar attitude toward politics with people of the Soviet Union. In the U.S., this is often referred to as “voter apathy”, but it might be more accurately described as non-voter indifference. The Soviet Union had a single, entrenched, systemically corrupt political party, which held a monopoly on power. The U.S. has two entrenched, systemically corrupt political parties, whose positions are often indistinguishable, and which together hold a monopoly on power. In either case, there is, or was, a single governing elite, but in the United States it organized itself into opposing teams to make its stranglehold on power seem more sportsmanlike.

In the U.S., there is an industry of political commentators and pundits which is devoted to inflaming political passions as much as possible, especially before elections. This is similar to what sports writers and commentators do to draw attention to their game. It seems that the main force behind political discourse in the U.S. is boredom: one can chat about the weather, one’s job, one’s mortgage and how it relates to current and projected property values, cars and the traffic situation, sports, and, far behind sports, politics. In an effort to make people pay attention, most of the issues trotted out before the electorate pertain to reproduction: abortion, birth control, stem cell research, and similar small bits of social policy are bandied about rather than settled, simply because they get good ratings. “Boring” but vitally important strategic issues such as sustainable development, environmental protection, and energy policy are studiously avoided.

Although people often bemoan political apathy as if it were a grave social ill, it seems to me that this is just as it should be. Why should essentially powerless people want to engage in a humiliating farce designed to demonstrate the legitimacy of those who wield the power? In Soviet-era Russia, intelligent people did their best to ignore the Communists: paying attention to them, whether through criticism or praise, would only serve to give them comfort and encouragement, making them feel as if they mattered. Why should Americans want to act any differently with regard to the Republicans and the Democrats? For love of donkeys and elephants?

Political Dysfunction

As I mentioned before, crisis-mitigating agendas for “us” to implement, whether they involve wars over access to resources, nuclear plant construction, wind farms, or hydrogen dreams, are not likely to be implemented, because this “we” entity will no longer be functional. If we are not likely to be able to implement our agenda prior to the collapse, then whatever is left of us is even less likely to do so afterward. Thus, there is little reason to organize politically in order to try to do good. But if you want to prepare to take advantage of a bad situation – well, that’s a different story!

Politics has great potential for making a bad situation worse. It can cause war, ethnic cleansing and genocide. Whenever people gather into political organizations, whether voluntarily or forcibly, it is a sign of trouble. I was at the annual meeting of my community garden recently, and among the generally placid and shy group of gardeners there were a couple of self-styled “activists.” Before too long, one of these was raising the question of expelling people. People who don’t show up for annual meetings and don’t sign up to do cleaning and composting and so on – why are they allowed to hold on to their plots? Well, some of the “rogue elements” the activist was referring to consisted of elderly Russians, who, due to their extensive experience with such things during the Soviet times, are exceedingly unlikely to ever be compelled to take part in communal labor or sit through meetings with the collective. Frankly, they would prefer death. But they also love to garden.

The reason the “element” is allowed to exist in this particular community garden is because the woman who runs the place allows them to hold on to their plots. It is her decision: she exercises leadership, and she does not engage in politics. She makes the garden function, and allows the activists to make their noise, once a year, with no ill effects. But if the situation were to change and the kitchen garden suddenly became a source of sustenance rather than a hobby, how long would it take before the activist element would start demanding more power and asserting its authority?

Leadership is certainly a helpful quality in a crisis, which is a particularly bad time for lengthy deliberations and debates. In any situation, some people are better equipped to handle it than others, and can help others by giving them directions. They naturally accumulate a certain amount of power for themselves, and this is fine as long as enough people benefit from it, and as long as nobody is harmed or oppressed. Such people often spontaneously emerge in a crisis.

An equally useful quality in a crisis is apathy. The Russian people are exceptionally patient: even in the worst of post-collapse times, they did not riot, and there were no significant protests. They coped as best they could. The safest group of people to be with in a crisis is one that does not share strong ideological convictions, is not easily swayed by argument, and does not possess an overdeveloped, exclusive sense of identity.

Clueless busybodies who feel that “we must do something” and can be spun around by any half-wit demagogue are bad enough, but the most dangerous group, and one to watch out for and run from, is a group of political activists resolved to organize and promote some program or other. Even if the program is benign, and even if it is beneficial, the politicized approach to solving it might not be. As the saying goes, revolutions eat their children. Then they turn on everyone else. The life of a refugee is a form of survival; staying and fighting an organized mob generally isn’t.

The Balkans are the post-collapse nightmare everyone is familiar with. Within the former Soviet Union, Georgia is the prime example of nationalist politics pursued to the point of national disintegration. After winning its independence, Georgia went through a paroxysm of nationalist fervor, resulting in a somewhat smaller, slightly less populous, permanently defunct state, with widespread poverty, a large refugee population, and two former provinces stuck in permanent political limbo, because, apparently, the world has lost its ability to redraw political boundaries. In its current form, it is politically and militarily a client of Washington, treasured only as a pipeline route for Caspian oil. Its major trading partner and energy supplier is the Russian Federation.

The U.S. is much more like the Balkans than like Russia, which is inhabited by a fairly homogeneous Caucasian/Asian population. The U.S. is very much segregated, usually by race, often by ethnicity, and always by income level. During prosperous times, it is kept relatively calm by keeping a percentage of people in jail that has set an all-time world record. During less prosperous times, it is at a big risk of political explosion. Multi-ethnic societies are fragile and unstable; when they fall apart, or explode, everyone loses.

Collapse in the U.S.

In the U.S., there appear to be few ways to make the collapse scenario work out smoothly for oneself and one’s family. The whole place seems too far gone in a particular, unsustainable direction. It is a real creative challenge, and we should be giving it a lot of serious thought.

Suppose you live in a big city, in an apartment or a condo. You depend on municipal services for survival. A week without electricity, or heat, or water, or gas, or garbage removal spells extreme discomfort. Any two of these is a calamity. Any three is a disaster. Food comes from the supermarket, with help from the cash machine or the credit card slot at the checkout station. Clean clothes come from the laundromat, which requires electricity, water, and natural gas. Once all the businesses have shut down and your apartment is cold, dark, smells like garbage (because it isn’t being collected) and like excrement (because the toilet doesn’t flush), perhaps it is time to go camping and explore the great outdoors.

So let’s consider suburbia. Suppose that you own a home in a developed suburban subdivision. There will still be problems with taxes, code enforcement, strangers from outer space living next door, and other boondoggles, which could get worse as conditions deteriorate. Distressed municipalities may at first attempt jack up rates to cover their costs instead of simply closing up shop. In a misguided effort to save property values, they may also attempt to enforce codes against such necessities as compost heaps, outhouses, chicken coops, and crops planted on your front lawn. Keep in mind, also, that the pesticides and herbicides lavished on lawns and golf courses leave toxic residues. Perhaps the best thing to do with suburbia is to abandon it altogether.

A small farm offers somewhat better possibilities for farming, but most farms in the U.S. are mortgaged to the hilt, and most land that has been under intensive cultivation has been mercilessly bombarded with chemical fertilizers, herbicides and insecticides, making it an unhealthy place, inhabited by men with tiny sperm counts. Small farms tend to be lonely places, and many, without access to diesel or gasoline, would become dangerously remote. You will need neighbors to barter with, to help you, and to keep you company. Even a small farm is probably overkill in terms of the amount of farmland available, because without the ability to get crops to market, or a functioning cash economy to sell them in, there is no reason to grow a large surplus of food. Tens of acres are a waste when all you need is a few thousand square feet. Many Russian families managed to survive with the help of a standard garden plot of one sotka, which is 100 square meters, or, if you prefer, 0.024710538 acres, or 1076.391 square feet.

What is needed, of course, is a small town or a village: a relatively small, relatively dense settlement, with about an acre of farmland for every 30 or so people, and with zoning regulations designed for fair use and sustainability, not opportunities for capital investment, growth, property values, or other sorts of “development”. Further, it would have to be a place where people know each other and are willing to help each other – a real community. There may still be a few hundred communities like that tucked away here and there in the poorer counties in the United States, but there are not enough of them, and most of them are too poor to absorb a significant population of economic migrants.

Investment Advice

Often when people hear about the possibility of economic collapse, they wonder: “Let’s suppose that the U.S. economy is going to collapse soon. Why is this even worth thinking about, if there is nothing I can do about it?” Well, I am not a professional investment adviser, so I risk nothing by making some suggestions for how one can collapse-proof one’s investment portfolio.

The nuclear scare gave rise to the archetype of the American Survivalist, holed up in the hills, with a bomb shelter, a fantastic number of tins of spam, and an assortment of guns and plentiful ammunition with which to fight off neighbors from further downhill, or perhaps just to shoot beer-cans when the neighbors come over for beer and spamwiches. And, of course, an American flag. This sort of survivalism is about as good as burying yourself alive, I suppose.

The idea of stockpiling is not altogether bad, though. Stockpiling food is, of course, a rotten idea, literally. But certain manufactured items are certainly worth considering. Suppose you have a retirement account, or some mutual funds. And suppose you feel reasonably certain that by the time you are scheduled to retire it won’t be enough to buy a cup of coffee. And suppose you realize that you can currently buy a lot of good stuff that has a long shelf life and will be needed, and valuable, far into the future. And suppose, further, that you have a small amount of storage space: a few hundred square feet. Now, what are you going to do? Sit by and watch your savings evaporate? Or take the tax hit and invest in things that are not composed of vapor?

Once the cash machines are out of cash, the stock ticker stops ticking, and the retail chain breaks down, people will still have basic needs. There will be flea markets and private barter arrangements to serve these needs, using whatever local token of exchange is available; bundles of $100 bills, bits of gold chain, packs of cigarettes, or what have you. It’s not a bad idea to own a few of everything you will need.

You should invest in things you will be able to trade for things you will need. Think of consumer necessities that require high technology and have a long shelf life. Here are some suggestions to get you started: drugs (over-the-counter and prescription); razor blades; condoms. Rechargeable batteries (and solar chargers) are sure to become a prized item (Ni-MH are the less toxic ones). Toiletries, such as good soap, will be luxury items. Fill some shipping containers, nitrogen-pack them so that nothing rusts or rots, and store them somewhere.

After the Soviet collapse, there swiftly appeared a category of itinerant merchants who provided people with access to imported products. To procure their wares, these people had to travel abroad, to Poland, to China, to Turkey, on trains, carrying goods back and forth in their baggage. They would exchange a suitcase of Russian-made watches for a suitcase of other, more useful consumer products, such as shampoo or razor blades. They would have to grease the palms of officials along their route, and were often robbed. There was a period of time when these people, called “chelnoki,” which is Russian for “shuttles,” were the only source of consumer products. The products were often factory rejects, damaged, or past their sell-by date, but this did not make them any less valuable. Based on their example, it is possible to predict which items will be in high demand, and to stockpile these items ahead of time, as a hedge against economic collapse. Note that chelnoki had intact economies to trade with, accessible by train – while this is not guaranteed to be the case in the U.S.

A stockpile of this sort, in a walkable, socially stable place, where you know everybody, where you have some close friends and some family, where you own your shelter and some land free and clear, and where you can grow most of your own food, and barter for the rest, should enable you to survive economic collapse without too much trouble. And, who knows, maybe you will even find happiness there.

Conclusion

Although the basic and obvious conclusion is that the United States is worse prepared for economic collapse than Russia was, and will have a harder time than Russia had, there are some cultural facets to the United States that are not entirely unhelpful. To close on an optimistic note, I will mention three of these.

Firstly, and perhaps most surprisingly, Americans make better Communists than Russians ever did, or cared to try. They excel at communal living, with plenty of good, stable roommate situations, which compensate for their weak, alienated, or nonexistent families. These roommate situations can be used as a template, and scaled up to village-sized self-organized communities. Big households that pool their resources make a lot more sense in an unstable, resource-scarce environment than the individualistic approach. Without a functioning economy, a household that consists of a single individual or a nuclear family ceases to be viable, and people are forced to live in ever larger households, from roommate situations to taking lodgers to doubling up to forming villages. Where any Russian would cringe at such an idea, because it stirs the still fresh memories of the failed Soviet experiment at collectivization and forced communal living, many Americans are adept at making fast friends and getting along, and generally seem to posses an untapped reserve of gregariousness, community spirit, and civic-minded idealism.

Secondly, there is a layer of basic decency and niceness to at least some parts of American society, which has been all but destroyed in Russia over the course of Soviet history. There is an altruistic impulse to help strangers, and pride in being helpful to others. In many ways, Americans are culturally homogeneous, and the biggest interpersonal barrier between them is the fear and alienation fostered by their racially and economically segregated living conditions.

Lastly, hidden behind the tawdry veneer of patriotic bumper stickers and flags, there is an undercurrent of quiet national pride, which, if engaged, can produce high morale and results. Americans are not yet willing to simply succumb to circumstance. Because many of them lack a good understanding of their national predicament, their efforts to mitigate it may turn out to be in vain, but they are virtually guaranteed to make a valiant effort, for “this is, after all, America.

Posted in Expert Advice, Oil shock collapse, Where to Be or Not to Be | Tagged , , , , , , | Comments Off on Dmitry Orlov: How Russians survived the collapse of the Soviet Union

When will the Alaska pipeline turn into an 800-mile-long Popsicle?

[Below are excerpts on the Alaskan pipeline from Rust: The Longest War by Jonathan Waldman.  This is a great book, yet leaves so many possible rust stories uncovered, that I hope Waldman writes Rust II (or any other topic — will certainly read his next book whatever it is). Alice Friedemann www.energyskeptic.com ]

Officially, Neogi is the pipeline’s integrity manager. He is responsible for keeping the pipeline intact, whole. Most pipeline operators employ integrity managers, but most pipelines are not like the Trans-Alaska Pipeline System. From Prudhoe Bay to Prince William Sound, TAPS stretches eight hundred miles, which leaves Neogi accountable for one of the heaviest metal things in the Western Hemisphere, through which the vast majority of Alaska’s economy flows. Daily, the four-foot steel tube spits out $50 million of oil.

Four technicians from Baker Hughes, the pig’s manufacturer, wrapped up a third day of checking and double checking and triple checking its componentry. Among other things, in the front segment of the pig, between two yellow urethane cups, they checked 112 magnetic sensors mounted in between 112 pairs of magnetized brushes. These sensors would detect the magnetic field induced in the pipe as the pig, propelled by the flow of oil, traveled through it. Given any kind of anomaly in the half-inch steel—a pit, a ding, a thin spot—the field would change, and the sensors would capture this and record it on a hard drive. Inch by inch, the sensors would capture this information; Neogi hoped they would capture all seven billion square inches of the pipe. That’s 1,200 acres. Using all that data, Neogi would determine the most vulnerable spots on the pipeline, dig them up, and repair them before they became leaks.

No matter how extensively the technicians double checked, even the most advanced pig can’t perform its inspection if the wall of the pipe is covered in wax. Wax, a natural component of crude oil, keeps the magnetic brushes and sensors off the steel wall. The consistency of lip balm or mousse, it plugs up caliper arms that measure the shape of the pipe, and snags odometer wheels. Wax renders smart pigs senseless, leaving them blind, dumb, and amnesiac. Nor can a pig survive a violent voyage. Too fast, and sensor heads melt or crack. Too rough, and the magnetizing brushes wear down. Too jarring, and the universal joint between the pig’s two segments comes apart, wires snap, and power to the magnetic flux sensors is cut off. Poof goes the data, months of work, and millions of dollars—leaving engineers with a pipeline in indeterminate condition, regulators unhappy, and the public at risk. Wax accumulates when the oil cools below 75 degrees, and long, slack sections, where the pig can barrel down mountain passes at high speed, manifest themselves when there’s not much oil flowing through the pipe. Neogi was well aware that it was winter, and that the flow of oil through TAPS was as low as it had been. It was not the best of times to pig.

On account of wax and low flow rates, in the last dozen years, half the smart pig runs have failed.

More recently, a pig was sucked into a relief line at a pump station midway down the line. That the relief line was only sixteen inches in diameter, and guarded with pig bars, was not a sufficient deterrent to the forty-eight-inch pig. This has happened at least a half dozen times. When it happened in 1986, and the pipeline was shut down while the pig was extracted, that meant more than a quarter of the nation’s oil wasn’t moving toward California. Pigs have made it all the way to Valdez, Alaska, only to be ingested in relief lines there. Other pigs have damaged the pipeline, or gotten stuck in it and been destroyed during their extraction.

They planned to launch the tool at seven in the morning, exactly twelve hours behind a red urethane pig of lesser intelligence. That pig, like a giant squeegee, was scraping the line clean. It was the last of nine such scraper pigs that, by Neogi’s design, had been shoved down the pipeline in the previous six weeks. Neogi had kept track of how much wax these pigs had pushed out in Valdez, and graphed it. From 1,200 pounds, the mass had dropped to 400. The line was as clean as it was going to get, primed for inspection. It was ready for the smart

For two decades, the Prudhoe Bay oil fields—Sadlerochit, Northstar, Kuparuk, Endicott, Lisburne—have been declining steadily. Yearly, immutably, they produce 5 percent less oil. The result is that TAPS now carries one quarter of the oil it was designed to carry. It comes out of the ground colder than ever and flows more slowly toward Valdez. Crude used to make it to Valdez in four days, as if running seven-minute miles. Now it walks. Enroute, it cools off even more and, as it does so, deposits more wax on the pipeline. A doctor would call the pipeline arteriosclerotic. While a pipeline waxes, its diameter wanes. Declining throughput makes things difficult for Neogi, but it makes them even more difficult for agencies estimating the pipeline’s lifespan.

The pipeline was designed to survive as long as the oil fields. Lest it clog, it must stay warm, which means that it must remain full of flowing oil. In a perverse symbiosis, the pipeline needs the oil as much as the oil needs the pipeline. As a result, while the consortium of agencies that oversees the pipeline has written that it “can be sustained for an unlimited duration,” Alyeska figures that it’ll survive until 2043, and the state of Alaska figures that it’ll expire a bit sooner. Private consultants, hired to estimate the life of TAPS, mention only “the future” and write of “diligent upkeep” in passive sentences. The estimates all couch what nobody wants to say: the pipeline, once the largest privately funded project in America, and one of its greatest engineering achievements, is now an elderly patient in intensive care.

The companies that built the pipeline foresaw such a future and tried to avoid it. In the immediate aftermath of their 1968 oil discovery, they considered every alternative to a pipeline. They considered extending the Alaska Railroad to the North Slope, until they realized that it’d take sixty-three trains, each one hundred cars long, every day, to ship their oil. They considered trucks, calculating that they’d need nearly the entire American fleet in addition to an eight-lane highway. They looked into jumbo jets supplied by Boeing and Lockheed, turning away when it became apparent that their air traffic would exceed the combined air traffic of all the freight in the rest of the country by more than an order of magnitude. They looked into blimps. They commissioned the world’s largest icebreaking cargo ship, and after it got stuck in the Northwest Passage, they seriously considered using a fleet of nuclear submarines to ship the oil, under Arctic ice, to a port in Greenland. Reluctantly, out of alternatives, they settled on a pipeline.

On most other pipelines, “events” or “incidents” or “product releases”—what the rest of us call leaks or spills—are most often caused by third-party damage. By this, the industry means accidents. Heavy equipment is usually to blame; pipeline ruptures are most often caused by collisions with bulldozers and backhoes. On TAPS, since there’s so little construction across the vastness of Alaska, the risk of accidental third-party damage is low. Natural hazards, on the other hand, present threats in abundance. Earthquakes, avalanches, floods, and ice floes all threaten TAPS. But what really keeps Alyeskans up is corrosion. It’s the number one threat to the integrity of the Trans-Alaska Pipeline.  On account of that threat, the pipeline was outfitted with the greatest corrosion-protection features of the era. Its principal protection was its coating: paint. As a backup, a zinc strap the size of a wrist (a giant anode) was buried under the pipe. Though TAPS was, boldly, called rustproof, the defense proved insufficient. Like all coatings, the one on TAPS proved vulnerable—but Alyeska didn’t learn quite how vulnerable for a dozen years. When it did, the company beefed up the pipeline’s corrosion protection with 10,000 twenty-five-pound bags of buried magnesium anodes and a cathodic protection system consisting of a hundred-odd rectifiers spitting a low voltage into the pipe.

Because rocks resist current, the cathodic protection system doesn’t work well in rocky areas, leaving corrosion engineers to their final tool: coupons. On the pipeline, a coupon is a one-inch square of steel, connected to it and buried along it, serving as a surrogate. Alyeska has about eight hundred of them. But coupons don’t prevent corrosion; they just help engineers monitor it.

In a way, monitoring is Alyeska’s second line of defense, and Alyeska does a lot of it. Like all major pipelines, TAPS is monitored by leak-detection software, which compares the flow of oil going into the pipeline with the flow coming out the other end, and also scans for sudden pressure drops. But unlike other pipelines, it is also monitored regularly by pilots using infrared cameras to hunt for signals that the hot oil has escaped into the cold Alaskan earth, as well as by “line walkers” who hunt for dark puddles and squishy tundra along the pipeline, and by controllers watching an array of hydrocarbon-detecting and liquid-detecting and noise-detecting sensors shoved into the ground alongside it. And then there are the dozen state and federal agencies looking over the shoulders of the thousand people operating the pipeline, making it the most regulated pipeline in the world.

But because a smart pig is the only way for Alyeska to determine if its pipeline is about to spring a leak before it has actually done so, and because Alyeska operates under more regulatory scrutiny than any other operator, it sends smart pigs down the line nearly twice as often as any other pipeline operator. It employs a smart pig once every three years, and has been doing so since long before federal pipeline laws stipulated it. Thanks largely to smart pigs, TAPS hasn’t suffered a corrosion-induced leak since it began operating in 1977.2 Over its first thirty years, Alyeska reviewed nearly 350 potential threats to the pipeline, including dents, wrinkle bends, weld misalignments, ovalities, gouges, and corrosion pits. The majority of these problems were found with smart pigs.

Keeping the pipe clean has become a priority nearly as great as keeping it whole, because the latter depends on the former. To keep it clean, Alyeska sends cleaning pigs south weekly. The company keeps a fleet of a dozen such pigs at a maintenance yard in Valdez, and in a perpetual relay, these pigs go back and forth: up the haul road, down the line. The managerial pigs—the smart ones—wait patiently while these janitorial pigs stay busy.

Before the last smart pig run, Alyeska sent a janitorial pig south every four days for a month. When these pigs pop out in Valdez, they usually push out ten or twenty barrels of wax. In the pig mobile, they go straight to the pig wash. The wax, a hazardous material, is collected in barrels and shipped out of state. Once, not many years ago, after the pipeline wasn’t pigged for six weeks, a pig pushed out forty-seven barrels of wax. Beneath all that wax, on account of corrosion, the one-billion-pound pipeline loses in the vicinity of ten pounds of steel a year: the same as an old Ford. Most of that metal loss is on the outside of the pipe, where it’s buried. The inside is, well, nicely oiled. The exception is inside pump stations, where the pipe branches through valves and turbines. In deadlegs—hydraulic culs-de-sac, where oil sits stagnant—microbial-influenced corrosion is a threat. If corrosion struck uniformly, such that the pipeline lost metal evenly and consistently, maintaining it would be vastly easier. After a thousand years, 99.999 percent of the pipe would still be there, sans weak spots. But rust doesn’t work like that. It concentrates in relatively few places, begetting more rust. Alyeska responds only to those places that present severe integrity threats. It looks at spots where 35 percent or more of the pipe’s wall thickness is gone, and where metal loss leaves the pipe at risk of bursting, which it determines from a formula developed by the American Society of Mechanical Engineers.

To the pipeline, though, ravens pose a greater threat. Ravens pick at the pipe’s insulation, and then water gets in. Alyeska spent millions installing bands around the seams of the insulation, and the ravens persisted, outsmarting engineers.

the flow of oil through TAPS decreases, pigging will become drastically more difficult. Below 400,000 barrels per day, it will become impossible to tightline Atigun Pass, because there’s only so much oil a controller can store in the tanks at Pump 1 before he runs out of emergency wiggle room. By then, the slack section on Atigun Pass will be over three miles long. Below 350,000 barrels per day, the “slippage factor” of a cleaning pig will prevent it from scraping the line effectively. With the bypass necessary to keep the wax ahead of it in a slurry, there won’t be enough force to push the pig forward. Alyeska will also need to run them more frequently—as frequently as during this run’s cleaning regimen—and this makes controllers nervous. Meanwhile, by 2015, the small percentage of water entrained in the oil will drop out and begin flowing in a separate layer on the bottom of the line. Collecting at a dozen low spots, it could freeze. In so doing, it could disable check valves or halt pigs. At a flow rate of 400,000 barrels per day (expected by 2020), a pig arriving in Valdez could be pushing a slug of water one third of a mile long. Alyeska may need a new type of pig to push out the water, because water will also corrode the pipeline. Compounding matters, lower throughput will make it harder for controllers to detect leaks.

It was the closest that TAPS had ever been to becoming an eight-hundred-mile-long Popsicle. This is Alyeska’s great fear, its “worst-case event.” Declining throughput may necessitate frequent cleaning pigs, complex operating procedures, smarter and tougher pigs, and increased maintenance—but these are nothing compared with the seizure of the pipeline. North Slope crude gels at 15 degrees. It gets so thick that pumps can’t push it. It becomes thixotropic, like quicksand. For whatever reason—a power outage, say—if the oil sits in the line too long, at the wrong time of year, the threat of the big Popsicle looms. In January 2011, the oil cooled to 25 degrees. The threat is critical.

Alyeska’s former president told Congress that at the flow rate expected in 2015, nine winter days of shutdown could spell the ultimate end of the pipeline. If the oil gels, there will be no recovering from it. The threat makes explosions and even leaks seem trivial. It’s a game ender. It’s because of this conundrum that drilling in the Beaufort and Chukchi Seas is of such importance to Alaska, Alyeska, and Alaskans. Those rigs will tie into the Alaska pipeline, feed it their oil. Sure, residents will get annual dividends, and Alaska will receive billions in royalties and taxes that fund pretty much everything in the state. But it’s the long-term future of the state on the table.

The sooner that someone turns around the two-decade saga of declining throughput, keeping the pipeline from turning into a giant Popsicle, the easier those concerned with the integrity of the pipe will sleep. In the meantime, if TAPS leaks for some reason, and the public withholds forgiveness, the resultant delay in offshore drilling could portend the end of the line. That’s what Neogi was implying when he mentioned the impact on future drilling. A big spill could delay offshore drilling in the Beaufort or Chukchi Seas for two decades, and this could spell the end of the line. End of the line would be the end of the state of Alaska, and not exactly beneficial to the economy of the other forty-nine states in the union. Precarious is the future of the pipeline, and high are the stakes in which Neogi and the integrity management crew operate.

Posted in Flow Rate, Threats to oil supply | Tagged , , | 8 Comments

Utility, large-scale battery energy storage

Hodson, H. July 25, 2015. Power to the people. NewScientist.

Demand for electricity varies every second, minute, hour, day, and season.  Production is easy to provide from always-ready natural gas and coal. But as we move towards a 100% renewable electric grid as oil, natural gas, coal, and uranium decline, wind and solar will have to provide most of the power, and they are extremely unpredictable, unreliable, and seasonal.  When demand and supply of electricity don’t exactly match, a blackout can occur.

The only way to get around this in the future will be energy storage, mainly from batteries since pumped hydro and compressed air energy storage are limited geologically.

In March 2015 Germany experienced this problem when 66% of solar generation failed during a solar eclipse.  Since this was predictable, utilities had already ramped up goal, natural gas and hydroelectric power to compensate.  If really large utility-scale batteries had existed, that could have also compensated.

Storing energy for the entire grid is a much bigger challenge. “The scale is unimaginable,” says Dahn, whose lab signed a five-year research contract with Tesla in June. He calculates that storing the output of just his local utility company, Nova Scotia Power, for 24 hours would take the energy storage capacity of every battery made worldwide this year – and then half as much again.

 

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Robert McNally on energy at U.S. Congressional Hearings

Preface. I think it is interesting to know what Congress hears about energy from experts, and what the official U.S. energy policies are.  It is frustrating that Energy Return on Invested (EROI) is never discussed, even by intelligent analysts like McNally.  Nor is the enormous ecological harm of biofuels – their stripping of topsoil, depletion of aquifers, their dependence on natural gas based fertilizer and oil, destruction of rainforests to grow palm oil, negative EROI, and the myriad reasons why cellulosic biofuels are unlikely to be developed discussed at hearings (i.e. “Peak Soil“).  Well, what else can be expected of a scientifically illiterate congress and public?  With so many leaders crowing energy independence, the train is picking up speed as it heads for the ecological brick wall, not slowing down.

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, Financial Sense, Jore, Planet: Critical, Crazy Town, Collapse Chronicles, Derrick Jensen, Practical Prepping, Kunstler 253 &278, Peak Prosperity,  Index of best energyskeptic posts

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House 113-2. February 13, 2013. American Energy Outlook: Technology, Market and Policy Drivers. U.S. House of Representatives. 119 pages.

Testimony of Robert McNally

We must recognize that our standard of living is closely and inextricably linked to fossil fuels.

It is hard to overstate but often overlooked how much modern civilization depends on continuous access to the substantial flow of fossil fuels from producers to consumers. The displacement of bioenergy [i.e. wood] with coal made the industrial era possible. Subsequent use of oil and natural gas augmented coal and enabled our modern transportation and electricity sectors to develop. Concentrated and abundant energy stores of coal, gas and oil power virtually all we do at the current state of technological development.

Transportation, which is critical to food supply chains and other core systems society needs to function, today runs almost entirely on oil.

Electrical generation taps a more diverse suite of fuels but much of it, too, is fossil fuel powered.

“Energy,” as Nobel chemist Richard Smalley noted in 2003, “is the single most important factor that impacts the prosperity of any society.” Fossil-based energy or hydrocarbons–oil, gas, and coal–are far superior to other primary energy sources because they are dense, highly concentrated, abundant, and comparatively easy to transport and store. That is the case now, and it is expected to be the case in the coming decades. The latest EIA International Energy Outlook forecasts that world energy consumption will rise by 53 percent by 2035 and fossil fuels ’ share of total energy consumption will rise from 74 to 79%.

Patience about the time it takes to transform energy systems

The pace of energy transformations depends on both the availability of economical stores of energy and the development of devices that can turn those energy stores into “work” such as light, heat, and mobility. Major energy transitions take a very long time, measured in decades if not generations.

The respected energy expert Vaclav Smil in 2008 “ Moore’s Curse and the Great Energy Delusion, The American Magazine:

“Energy transitions” encompass the time that elapses between an introduction of a new primary energy source oil, nuclear electricity, wind captured by large turbines) and its rise to claiming a substantial share 20 percent to 30 percent) of the overall market, or even to becoming the single largest contributor or an absolute leader (with more than 50%) in national or global energy supply. The term also refers to gradual diffusion of new prime movers, devices that replaced animal and human muscles by converting primary energies into mechanical power that is used to rotate massive turbogenerators producing electricity or to propel fleets of vehicles, ships, and airplanes. There is one thing all energy transitions have in common: they are prolonged affairs that take decades to accomplish and the greater the scale of prevailing uses and conversions the longer the substitutions will take. The second part of this statement seems to be a truism but it is ignored as often as the first part: otherwise, we would not have all those unrealized predicted milestones for new energy sources.

The main reason why it would take many decades to transform our energy system is that our energy system is colossal. Developed countries have made, and continue to make, enormous investments in recent years in fossil energy production, transportation, refining, distribution, and consumption systems and devices that could not quickly be replaced in any reasonable scenario, even if an alternative energy source was available. Whether one regards our society’s massive investment in and dependence on hydrocarbons as an addiction or a blessing, it is here to stay for many more decades.

Humility and restraint about predicting, much less attaining, arbitrary and aggressive energy targets

The historical record is littered with overly optimistic or scary predictions and policy targets , by experts and non-experts alike. While energy surprises can be humbling for analysts, too often leaders and observers ignore technology, geology, and economics and either predict or prescribe unachievable targets.

They range from period cries of imminent peak oil, through confident predictions in the 1950s that nuclear energy would be “too cheap to meter”, to President Nixon ’s declaration that the US would be energy independent by 1980. Widespread adoption of electric cars or deployment of renewable energy technologies has a long and sad history of failure going back over a century. Just six years ago, Congress passed a law mandating 36 billion gallons of biofuels consumption by 2022 that EIA analysts say cannot be met given economic and scientific realities. In July 2008 former Vice President Al Gore called for the US to commit to producing our entire electricity supply from renewable sources within 10 years. Though he described the goal as “achievable” and “affordable” not one energy expert I am aware of would agree this is even remotely possible. At best, arbitrary and aggressive targets can mislead the public about the complexities and uncertainties involved in energy market transformations and at worst when such targets are married to costly mandates or subsidies, they can become expensive policy errors. I would respectfully recommend policy makers abjure from basing policy on arbitrary, unrealistic targets, much less basing mandates or subsidies on them. Energy transformations are more akin to a multi-decade exodus than a multi-year moonshot, as pretending otherwise misleads citizens and distracts from serious debate about real circumstances and solutions.

Senate Hearing. June 23, 2015. American Energy Exports: Opportunities for U.S. Allies and U.S. National Security. Subcommittee on Multilateral International Development, Multilateral Institutions, And International Economic Energy, And Environmental Policy

Oil and natural gas are the lifeblood of modern civilization. Their abundance and affordability are prerequisites for thriving economic growth, high living standards, and ample employment. They are also an essential requirement for our national security. U S foreign policy has historically benefited from our strong position as a producer and exporter of energy. While we were known as the “Arsenal of Democracy” during World War II, we were equally an “Arsenal of Energy” , supplying nearly six out of seven barrels consumed by the Allies. 1 Even after net crude imports began rising steadily after the war, our control of spare production capacity enabled us to supply our allies and prevent economically damaging price spikes that would have resulted due to oil supply disruptions associated with Middle East conflicts in 1956 and 1967.

But after the energy, geopolitical, and economic convulsions of the 1970s , our confidence in our domestic abundance and control shifted to apprehension about dependence and vulnerability. For the past forty years our foreign and national security policy planning has prioritized preparing against supply interruptions and price spikes, protecting Middle East oil fields from hostile control , an d protecting the supply lines between the region and global markets. In this respect, the tremendous and unexpected boom in domestic oil and gas production in recent years is an enormous blessing for our country. In the last ten years, our net oil imports fell from 12.5 mb/d to 5 mb/d (in the first quarter of 2015) or from 60% to 24% of supply. 2 For the first time since the 1950s, most official projections see U.S. net energy imports, which includes all fuels, declining and eventually ending. 3 Our newfound abundance does not mean we can ignore the Middle East, which holds nearly half of the world’s prove n oil reserves and supplies one-third of global production. That region will remain a source of potential price and supply shocks, and its stability will therefore remain a vital national interest. But our domestic boom does confer enormous benefits and require s that we change our thinking about energy.

It is important to realize that we need not export large quantities of gas to benefit from a foreign policy standpoint. Just having the option to buy from the US strengthens the bargaining power of our allies when they negotiate long term contract prices with suppliers like Russia. Last December, Lithuania opened a costly LNG import terminal, an example of an ally willing to pay a security premium for diversified source of supply. Lithuania’s new terminal forced Gazprom to drop its prices to Lithuania, reportedly by 20%.

Natural gas

While much attention is paid to the spectacular turnaround in our oil supply and imports, it is worth remembering our need for imported liquefied natural gas (LNG) underwent a similar and surprising transition. Between 2002 and 2007 our LNG imports had more than tripled, and officials were expecting another doubling. We were building terminals to import from suppliers like Qatar and Russia . But after the shale gas revolution increased proven reserves by 77% from 200 billion cubic feet (bcf) in 2004 to 354 bcf last year, we are now on track to become a net natural gas exporter by 2017, according to EIA.

1 A History of the Petroleum Administration for War , 1946, p. 1.

2 June 2015 Short Term Energy Outlook, Table 4a. http://www.eia.gov/forecasts/steo/pdf/steo_full.pdf

For historical data, see EIA. In 2005, total product supplied was 20.8 mb/d and net imports were 12.5 mb/d.

3 http://www.eia.gov/pressroom/presentations/gruenspecht_06092015.pdf, slide 2

McNally, B. July 19, 2011. Outlook for US Biofuels. 2011 Agricultural symposium, Federal Reserve Bank, Kansas City, Missouri

My outlook for biofuels is, in a word, stark.

First, corn ethanol’s political power in Washington has peaked and is now in surprisingly rapid decline. Future policy support is blocked, and past policy supports are being scaled back. No one expected such a dramatic turnabout, the speed and extent of which is startling. Corn ethanol will be lucky to hold on to a 15 billion gallon per year (bgy) blending mandate, and other, “advanced” biofuel mandates are likely to be reduced by future Congresses or EPA. This shift in policy support for corn ethanol is not yet fully factored into commodity market analysts’ and energy investors’ expectations.

Second, Washington is unlikely to help ethanol surmount the main public policy impediment to greater biofuels blending–i.e. the 10% of gasoline “blend wall.” Washington’s new power constellation and fiscal austerity imperative will limit the future regulatory or fiscal support needed to push ethanol into intermediate blends (e.g. E15) or E85. In the absence of high public support, future growth in ethanol will require technical breakthroughs that dramatically lower costs and allow for production at the commercial scale.

Finally, when ethanol is blended at levels below the blend wall, prices will depend on ethanol’s suitability as a substitute for gasoline, which in turn depends on oil prices. Oil prices are likely to see greater cyclical swings as OPEC is not investing in enough capacity to retain an adequate supply buffer with which to dampen volatility. Greater oil price swings will reduce certainty and bedevil investment in conventional and bio-based energy.

When OPEC supplanted the United States 40 years ago as the dominant force in global oil markets, oil prices rose and imports soared, and energy security became a top policy priority. To promote the growth of a domestic transportation fuel supply, Washington exempted ethanol from part of the federal motor-fuel taxes, placed a tariff protection on imports, mandated government fleet purchases, and extended loans and loan guarantees for ethanol plant investment and federal R&D. Later, policymakers added pro-ethanol incentives in federal fuel economy rules and provided a volatility waiver to the formula in the oxygenated and reformulated fuels programs.

Although President Reagan pared back some support for ethanol, Republican ethanol champions such as Senators Dole, Lugar, and Grassley, as well as longtime Senate Energy Committee Chairman Pete Domenici, protected the blending credit, and the tariff protection survived and was increased. Ethanol has historically enjoyed strong voting blocks in the House and Senate, and the importance of Iowa’s role in the presidential nomination process is not lost on aspiring presidential candidates.

In the 1990s another rationale for ethanol blending emerged: environmental protection. The 1990 Clean Air Act Amendments (CAAA) mandated oxygenates in gasoline to reduce carbon monoxide emissions resulting from gasoline combustion.   And as ethanol’s chief competitor in the oxygenate market–MTBE–was phased out due to concerns over water contamination, ethanol benefited further. In the last decade, both energy security and environmental rationales for ethanol blending combined to create a third, and by far the biggest, political wave of support for ethanol. Terrorist attacks and oil price gyrations renewed national alarm about energy security, and the reduction of greenhouse gas emissions became the holy grail of the environmental movement.

By offering benefits and political support to both causes, ethanol supporters succeeded–via the 2005 and 2007 energy policy acts–in achieving a new and powerful policy support for ethanol–a large and direct blending mandate. Specifically, in 2007 Congress ordered that the US blend 15 bgy of ethanol into gasoline by 2015, which translates into a conversion of some 40% of the US corn crop into 10% of the gasoline pool. And the nation must consume another 21 bgy of advanced cellulosic, not corn starch-based) ethanol by 2022. From a n energy policy and political perspective, the ethanol mandate is probably the single most impactful energy policy Washington has implemented in the last 11 years.

From a financial market perspective, it is no secret that neither Wall Street nor the oil industry is terribly fond of ethanol on its merits. But market participants have come to believe ethanol is a winner in Washington. As Senator Feinstein observed: “Ethanol is the only industry that benefits from a triple crown of government intervention: its use is mandated by law, it is protected by tariffs, and companies are paid by the federal government to use it. Investment in ethanol production and actual blending soared. Commodity analysts and traders began to assume a greater part of future liquid fuel demand would be met by biofuels. And oil companies began to acquire ethanol facilities and started to view corn fields as upstream energy assets.

Looking around

As we turn to the near past and present, it is striking to watch how ethanol’s fortunes have fallen so hard and so fast in Washington. The change was completely unexpected and is still underway, and market participants have been slow to realize it. I must admit, as one who has been noting the turnaround in ethanol’s fortunes over the recent years, the collapse in recent weeks has been breathtaking.

With the benefit of hindsight, signs of the trend shift emerged in 2008, when agricultural commodity prices soared as ethanol was ramping up in response to the 2007 RFS. Of course, other factors were also at work in the commodity price boom. But there had been no prior official analysis by EIA or anyone else of the impact of the RFS on grain prices. Unusually for such a major energy policy initiative, Washington mandated first but analyzed and debated later. Now well underway, the food versus fuel debate will rage for years. But in Washington perception matters as much as reality, and the perception was and is that biofuels mandates contributed to rising food prices. The second shift came in 2009, when the always-tenuous alliance between the environmental community and the ethanol community began to sour. While g reen groups appreciate d corn ethanol’s utility in reducing carbon monoxide, they were irked by exemptions from tough rules limit ing vapor pressure. Nor did they like the fossil fuel consumption, land-use impacts, and life-cycle carbon emissions associated with higher ethanol blending. But as long as cap-and-trade was on the table in the late-Bush and early-Obama administrations, Greens held their noses and allied with ethanol. Greens did lay some traps in the path of potential corn ethanol growth by insisting in the 2007 RFS that biofuels blending above 15 bgy come from more efficient, less carbon emitting sources than corn, such as cellulosic ethanol.

But in the last two years, the Great Recession and Republican gains in the 2010 election have taken cap and trade off the table, and as a result the falling out has gathered steam. Now that the chief rationale for the ethanol-green alliance has fallen away, tensions are laid bare and the gloves are coming off. Green groups are stepping up opposition to ethanol on grounds that it emits high amounts of carbon on a life cycle basis and that blending credits are an expensive way to cut carbon emissions. The Congressional Budget Office estimated blending credits cost about $750/ton of CO2 equivalent reduction. 2

The third, and I would argue most important, challenge corn ethanol faced was the emergence of fiscal austerity and the need to tighten fiscal policy, which is now the primary focus of the Republican-controlled House and also the top priority of the Senate and White House. And given the size of our fiscal imbalances and the election outlooks of most observers, it is fair to assume Washington’s budget cutting imperative won’t be going away soon. Even those without a strong anti-ethanol bias found it hard to justify continuing a blending credit for a product whose demand is mandated. Environmental groups joined with their usual foes on letters to Congress opposing E15.

Long envied, courted, and respected, ethanol now finds itself vulnerable, low-hanging fruit and facing an “unholy coalition” environmentalists, fiscal conservatives, the oil and food industries, and small engine manufacturers able and willing to block its growth and take back its prior gains.

The first tangible signs that corn ethanol was in trouble in Washington came during the E15 debate in 2010, when Congress and the White House failed to direct EPA to grant ethanol the sweeping waiver for E 15 it desired. Then the Tea Party and Republican House came to town. Turning first to E15, the House voted twice to deny federal funding for E15 blending pumps and storage tanks, by 262-158 and 283-128, and by 285-136 to block E15 waiver implementation.

Then the $6bn per year blending credit moved to the center of the bulls-eye. In June, the Senate voted 73-27 for a Coburn/Feinstein proposal to end the blending credit immediately rather than wait for end-year expiration. A strong reversal from the 1990s, when it was the anti-ethanol forces that typically lost Senate votes with counts in the 20s.

The most recent indication of how far corn ethanol’s star has fallen came during President Obama’s recent news conference–actually the first Twitter town hall. He raised eyebrows calling corn ethanol producers “probably the least efficient producers [compared with cellulosic]” and saying “ it’s important for even those folks in farm states who traditionally have been strong supporters of ethanol to examine are we, in fact, going after the cutting-edge biodiesel and ethanol approaches that allow, for example, Brazil to run about a third of its transportation system on biofuels. Now, they get it from sugar cane and it’s a more efficient conversion process than corn-based ethanol. And so us doing more basic research in finding better ways to do the same concept I think is the right way to go.” The President reportedly has put the blending credit on the table to help offset a continuation of the payroll tax cut.

Adding further support to the negative outlook for ethanol, official energy analysts making long term projections of fuel mix are becoming more cautious about biofuels growth . Whereas International Energy Agency IEA projections had ethanol accounting for almost half of gasoline demand growth in the last five years, IEA now projects the fuel will account for less than a quarter of demand growth in the next five, despite higher projected oil prices, 3 due to higher corn prices and greater uncertainty aro und mandates. 4 IEA sees global biofuels rising from 1.8 mb/d to 2.3 mb/d by 2016, displacing some 5.3% of gasoline and 1.5% of diesel by 2016 on an energy content basis. 5 IEA does not expect cellulosic biofuels to achieve widespread cost competitiveness with conventional gasoline until 2030, despite aggressive mandates. EIA, March 24, 2011. http://www.eia.gov/pressroom/presentations.cfm , slide 4.

IEA projects advanced biofuels will rise from 20 kb/d now to 100-130 kb/d in 2016. Even DOE’s forecasting arm, the Energy Information Administration, projects the US will fail to meet advanced biofuels targets by 2022.

Looking Ahead

Discussion about weakening the RFS has already started in Washington. Senator Inhofe (R-OK) and Representative Issa (R-CA) have introduced the Fuel Feedstock Freedom Act, which would allow states to withdraw from the RFS. However, state opt-outs are likely to be logistically difficult if not unworkable. Eventually either Congress or EPA will probably reduce the mandate to prevent it from colliding with the blend wall and raising gasoline prices. The ethanol lobby saw the blend wall danger and first tried to surmount it by getting EPA approval for “intermediate” blends above 10%, such as 15% ethanol or E15. Ethanol forces are trying to secure federal funding and indemnification for intermediate blend infrastructure and consumer acceptance. While EPA (grudgingly, I suspect) granted partial approval for E15 blends, they did so in the full knowledge that very little is likely to be sold due to large remaining infrastructure compatibility, cost and liability concerns, as spelled out in a recent GAO report. 9 Even ethanol-laden companies like Marathon and Valero said they would not offer E15. While ethanol forces took heart when Senator McCain’s bill against ethanol pump funding failed 40-59, it is far from certain that Congress will be in the mood to grant ethanol additional funds or legal protection to enable E15 growth.

Grains and oil converge

From a commodity market perspective, it is noteworthy that grain and fuel prices are becoming more correlated and volatility is going up. Wallace Tyner noted the rapid explosion in ethanol’s market share has established a high and positive correlation between crude oil and corn that has not previously existed. Below the blend wall, the price of crude will drive ethanol prices. Above the blend wall, the price of corn will drive ethanol prices. There are also important linkages between the RFS and higher grain price volatility. As the RFS mandate rises, it will introduce a price-insensitive source of demand for corn. That in turn will impart greater price volatility back onto agricultural markets.   Two academics recently estimate d that at times when the RFS is driving ethanol demand instead of high oil prices relative to corn, inherent volatility in US grain markets will rise by about 25%.   And volatility of US coarse grain prices in response to supply side shocks in energy markets will rise by almost one-half.

A word about biodiesel and wind energy

Biodiesel history has mirrored that of corn ethanol. The inventor of the diesel engine, Rudolph Diesel, actively considered agricultural feedstocks as a fuel. But petroleum distillate established a dominant position, though oil price hikes of the 1970s renewed interest in homegrown alternatives.

Commercial production of biodiesel began in the 1990s, but only increased sharply since 2004 when a $1 blending/production credit was implemented.   In 2005, supplemental credits for the “renewable diesel tax credit” (“renewable” diesel does not use alcohol in conversion) and “small agri-biodiesel production credit” also went into effect. Biodiesel production was around 30 million gallons before 2005, but by 2008 was over 700 million gallons per year, with a large portion exported (though the EU has since imposed an import tariff that has hurt US exports). Biodiesel remains expensive compared with petroleum distillate. Biodiesel economics feature a high correlation between soybean oil and conventional diesel prices, since it takes a gallon of soybean oil to produce a gallon of soy-based biodiesel. In addition, soy-based biodiesel has a slightly lower energy content than conventional diesel. Bruce Babock, of Iowa State University, has noted biodiesel marginal costs are $2 per gallon higher than diesel, requiring a $1.00 credit and $1.00 RIN price. 12 This makes most analysts cautious about the outlook for biodiesel growth. IEA projects biofuel-based distillate will account for only 4% of diesel demand growth in the next five years, compared with having taken 9% over the last five. 13 EIA expects US biodiesel use to rise from 0.1% of total liquids supply or 0.6% of diesel fuel consumption in 2010 to 0.6% of total supply and 3.0% of diesel demand by 2035. 14 The $1 per gallon biodiesel blending credit does not attract as much support or opposition as the ethanol blending credit. Because biodiesel blending, and therefore subsidy costs, have been lower, it has avoided the attention of the budget cutters, so far. But being small has its downsides too–Washington has frequently let the biodiesel credit expire with barely a whimper. When the credit last expired in 2010, the industry estimated production fell 42 percent and nearly 9,000 jobs were lost. Production fell despite a retroactive and rising RFS mandate, and exports were hurt by an EU import tariff.

As for wind, challenges to large-scale commercialization are fairly well understood. They include intermittency, austerity, distance from load centers, political opposition, and low natural gas prices. However, I am skeptical that $4 per Mmbtu natural gas will endure for too long, given questions about the economics and politics of shale gas production as well as strong political opposition to new nuclear and coal build-out. But ultimately wind cannot scale unless large cost and technological barriers are broken, not the least of which are storage and transmission and public opposition on footprint grounds is overcome.

  • Babcock, Bruce, The State of Biofuels Today, Iowa State University, April 2011
  • Babcock, Bruce A., Mandates, Tax Credits, and Tariffs: Does the U.S. Biofuels Industry Need Them All? CARD Policy Brief, Iowa State University, March, 2010
  • Babcock, Bruce and Carriquiry, Miguel, A Billion Gallons of Biodiesel: Who Benefits?,
  • Iowa Ag Review Online, Winter/2008, http://www.card.iastate.edu/iowa_ag_review/winter_08/article3.aspx
  • Congressional Budget Office, Using Biofuel Tax Credits to Achieve Energy and Environmental Policy Goals, July 2010
  • Congressional Research Service, Intermediate-level Blends of Ethanol in Gasoline, and the Ethanol “Blend Wall,” January 28, 2010
  • General Accounting Office, Biofuels: Challenges to the Transportation, Sale, and Use of Intermediate Ethanol Blends , June 2011
  • Glozer, Ken G., Corn Ethanol: Who Pays? Who Benefits? Hoover Institution Press, 2011
  • Hertel, Thomas W., and Beckman, Jayson, Commodity Price Volatility in the Biofuel Era: An Examination of the Linkage Between Energy and Agricultural Markets , July, 2010
  • International Energy Agency , Medium Term Oil and Gas Market Report , June 2011
  • Tyner, Wallace E., The Integration of Energy and Agricultural Markets, presented at the 27th International Association of Agricultural Economists Conference, Beijing, China, August 16-22, 2000
  • Tyner, W., Dooley, F., Hurt, C., and Quear, J. Ethanol Pricing Issues for 2008. Industrial Fuels and Power, 2008

 

Serial No. 112-89. December 16, 2011. Changing energy markets and U.S. National Security. House of Representatives. 69 pages

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

As OPEC falters, the price mechanism will return to balance the market through demand destruction, enforcing the iron law that consumption cannot exceed production. Even if our import dependence declines, we will still be vulnerable to price gyrations that are very harmful for consumers and producers and will bedevil economic and foreign policymaking.4

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

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

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

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

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

Vulnerability of current and future energy markets to terrorism

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

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

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

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

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

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

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

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

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

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Kunstler: Potemkin Party

James Howard Kunstler. July 27, 2015. Potemkin Party. www.kunstler.com

How many of you brooding on the dreadful prospect of Hillary have chanced to survey what remains of Democratic Party (cough cough) leadership in the background of Her Royal Inevitableness? Nothing is the answer. Zip. Nobody. A vacuum. There is no Democratic Party anymore. There are no figures of gravitas anywhere to be found, no ideas really suited to the American prospect, nothing with the will to oppose the lumbering parasitic corporatocracy that is doing little more than cluttering up this moment in history while it sucks the last dregs of value from our society.

I say this as a lifelong registered Democrat but a completely disaffected one — who regards the Republican opposition as the mere errand boy of the above-named lumbering parasitic corporatocracy. Readers are surely chafing to insert that the Democrats have been no less errand boys (and girls) for the same disgusting zeitgeist, and they are surely correct in the case of Hillary, and indeed of the current President.

Readers are surely also chafing to insert that there is Bernie Sanders, climbing in the opinion polls, disdaining Wall Street money, denouncing the current disposition of things with the old union hall surliness we’ve grown to know and love. I’m grateful that Bernie is in the race, that he’s framing an argument against Ms. It’s My Turn. I just don’t happen to think that Bernie gets what the country — indeed what all of techno-industrial society — is really up against, namely a long emergency of economic contraction and collapse.

These circumstances require a very different agenda than just an I Dreamed I Saw Joe Hill redistributionist scheme. Lively as Bernie is, I don’t think he offers much beyond that, as if cadging a little more tax money out of WalMart, General Mills, and Exxon-Mobil will fix what is ailing this sad-ass polity. The heart of the matter is that our way of life has shot its wad and now we have to live very differently. Almost nobody wants to even try to think about this.

I hugely resent the fact that the Democratic Party puts its time and energy into the stupid sexual politics of the day when it should be working on issues such as re-localizing commercial economies (rebuilding Main Streets), reforming agriculture to avoid the total collapse of corporate-industrial farming, and fixing the passenger rail system so people will have some way to get around the country when happy Motoring dies (along with commercial aviation).

The “to do” list for rearranging the basic systems of daily life in America is long and loaded with opportunity. Every system that is retooled contains jobs and social roles for people who have been shut out of the economy for two generations. If we do everything we can to promote smaller-scaled local farming, there will be plenty of work for lesser-skilled people to do and get paid for. Saying goodbye to the tyranny of Big Box commerce would open up vast vocational opportunities in reconstructed local and regional networks of commerce, especially for young people interested in running their own business.

We need to prepare for localized clinic-style medicine (in opposition to the continuing amalgamation and gigantization of hospitals, with its handmaidens of Big Pharma and the insurance rackets). The train system has got to be reborn as a true public utility. Just about every other civilized country is already demonstrating how that is done — it’s not that difficult and it would employ a lot of people at every level. That is what the agenda of a truly progressive political party should be at this moment in history.

That Democrats even tolerate the existence of evil entities like WalMart is an argument for ideological bankruptcy of the party. Democratic Presidents from Carter to Clinton to Obama could have used the Department of Justice and the existing anti-trust statutes to at least discourage the pernicious monopolization of commerce that Big Boxes represented. By the same token, President Obama could have used existing federal law to break up the banking oligarchy starting in 2009, not to mention backing legislation to more crisply define alleged corporate “personhood” in the wake of the ruinous “Citizens United” Supreme Court decision of 2010. They don’t even talk about it because Wall Street owns them.

So, you fellow disaffected Democrats — those of you who can’t go over to the other side, but feel you have no place in your country’s politics — look around and tell me who you see casting a shadow on the Democratic landscape. Nobody. Just tired, corrupt, devious old Hillary and her nemesis Bernie the Union Hall Champion out of a Pete Seeger marching song.

I’ve been saying for a while that this period of history resembles the 1850s in America in two big ways: 1) our society faces a crisis, and 2) the existing political parties are not up to the task of comprehending what society faces. In the 1850s it was the Whigs that dried up and blew away (virtually overnight), while the old Democratic party just entered a 75-year wilderness of irrelevancy. God help us if Trump-o-mania turns out to be the only alternative.

Oh, by the way, notice that the lead editorial in Monday’s New York Times is a plea for transgender bathrooms in schools. What could be more important?

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A review of life cycle assessments on wind energy systems by Simon Davidsson 2012

[below is a very short excerpt of this 22 page paper, I was interested in how much recycling can contribute to a high EROI but there are many other important points made in this paper]

Davidsson, S., Höök, M., Wall, G. 2012. A review of life cycle assessments on wind energy systems. The International Journal of Life Cycle Assessment.

http://www.diva-portal.org/smash/get/diva2:435510/FULLTEXT01.pdf

Energy systems based on wind, as well as other renewable energy sources, are often automatically assumed to be sustainable and environmental-friendly sources of energy in much of the mainstream debate.

However, all systems for converting energy into usable forms have various environmental impacts, not to mention a requirement of natural resources. It is essential to have consistent evaluation methods for analyzing all aspects of a given energy source.

Without such methods, it is difficult to compare them and make the right decisions when planning and investing in energy systems for the future.

Future growth of any new energy systems, in this case wind power, will require energy, as well as other resources during the expansion phase, and these implications need to be considered when planning future developments. A need for meticulous environmental impact assessments and energy performance evaluations can be seen here.

It could be questioned how certain it is that the materials will in fact be recycled in 20 years, or more. For some materials making up large parts of a wind turbine, i.e. steel, copper, aluminum and other metals, it is highly likely that the materials will be recycled in the future, but it is not certain. The economics of recycling scrapped wind plants are also uncertain and it is entirely possible that the cost of dismantling and extracting the recyclable parts will be prohibitively high in the future, especially for wind farms located in remote or off-shore areas. For example, the Tehachapi Pass in California contains “bone yards” of abandoned wind turbine hardware that has been lying around without being recycled (Pasqualetti et al., 2002).

Even if decommission is usually mandatory in operating permits, the total costs of decommissioning may not be covered due to price inflation, low capacity, unexpected circumstances (e.g., hurricane destruction), or a combination of such events (Kaiser and Snyder, 2012). It is possible that recycling can become uneconomic compared to abandonment under certain conditions, which is important to remember as decommissioning is dependent on a number of highly uncertain parameters that can have significant direct or indirect impacts on cost.

Material recovery at the end of the life cycle cannot be guaranteed as expressed by Crawford (2009), who also stresses that the environmental credit should rather be given to products using the recycled material.

Jacobson and Delucci (2011) states that Earth has somewhat limited reserves of economically recoverable iron ore, over a 100–200 year perspective at current recovery rates, but also mention that most of the steel will be recycled. What is not mentioned is that the steel consumption is already rising fast. ESTP (2009) projects the global steel consumption to be over 2000 Mt by 2050, compared to just below 1400 Mt in 2010. This growth, coupled with the fact that recyclable steel has often been held up for many decades before finally being recycled, makes the total part of steel production coming from recycled steel is fairly low, only around 45% in Europe (ESTP, 2009).

Such real world recycling shares appears to be in significant disagreement with some of the very high recycling percentages used in the reviewed studies.

Kubiszewski et al. (2010) compiled 50 EROI studies and found values ranging from 1.0 to 125.8 with an average of approximately 18.

It is difficult to see how the higher figures could be using the same concepts and parameters as the lower ones. It should be added that many of the results in these studies are old, and that LCA methodology has evolved since they were done. However, a large spread in results is still seen in the fairly new studies reviewed in this paper (Table 3).

Improving the treatment of energy

There is significant problem that EROI or EPBT is sometimes presented as primary energy using thermal equivalents, and sometimes using direct equivalents, making comparisons very difficult, especially since is sometimes difficult to even interpret if the conversion were done. As an example, Lee et al. (2006) and Lee and Tzeng (2008) presents an EPBT of 1.3 months – equivalent an EROI of 185 – far superior to all other reviewed studies. It seems like they use direct energy payback time without any conversion to thermal equivalents, but still compare their result to Schleisner (2000), who converts produced electricity to primary energy. It is quite odd that an energy performance many times better than Schleisner (2000) – and literally all other previous LCAs on wind energy –is not reflected upon. Instead, it is claimed that performance of wind power systems implemented in Taiwan is among the best in the world (Lee et al. 2006). Drawing these conclusions without analyzing other reasons for the variations, such as methodological differences, should be considered highly questionable.

This is just one of example how a LCA study can make flawed and even misleading comparisons and conclusions.

Regarding energy use during the life cycle, we find no consensus on how different energy carriers should be treated. How this is done is generally not clearly described in published studies either. The total amount of primary energy used is often presented, and in some cases this is also divided into different energy carriers. However, energy carriers used varies between studies making comparisons difficult. For electricity, national generation mixes are typically used, if anything is mentioned at all. How much of the total energy used was originally electrical energy is not plainly presented in any of the reviewed studies, making it difficult to investigate the impact of using of different electricity mixes. Guezuraga et al. (2012) showed that switching generation mix could alter the results by around 50%, indicating the importance of this factor.

Improved handling of non-energy resources

The need for non-energy resources does not seem to be seen as an important factor in most studies, and is usually not considered or discussed in any detail. When they are, intricate impact methods expressing resource depletion in antimony equivalents per kg is sometimes used even though this likely will be challenging to grasp for laymen and planners. Material resource use is a trivial issue for LCA according to Weidema (2000). In contrast, Finnveden (2005) suggests that resource use, although it should not be included as an impact factor in the LCIA, could be included in the LCA and states that LCA potentially can be a useful tool for discussing both environmental and resource aspects of products. Another significant problem is the use of end-of-life recycling crediting. It can be argued, for many reasons, that environmental effects of recycling that may occur in 20 years should not be credited the environmental impacts apparent today. However, most of the reviewed studies credit future recycling in some way. The implications of the recycling crediting on the results are often difficult to interpret, but for some of the results, the effect appears to be significant. For instance, energy use in Guezuraga et al. (2012) is increased by 43.3% when no recycling of materials is considered.

Final recommendations

The most troublesome part we found is the lack of transparency regarding fundamental and underlying assumptions, calculations and conversions done in the reviewed LCAs. Mitigating this issue will not only improve clarity, but is also likely to strengthen the credibility of LCA methodology. The LCA society should clearly strive for better agreement on which methods are to be used for evaluating renewable energy resources. This is not just desirable, but crucial, to be able to accurately evaluate and present the environmental performance of wind energy. Also, the use of natural resources, like REEs, should be clearly mentioned in the assessments to enable evaluating of possible bottlenecks in future production.

Kubiszewski I, et al (2010) Meta-analysis of net energy return for wind power systems. Renewable Energy. 35(1): 218-225, DOI: http://dx.doi.org/10.1016/j.renene.2009.01.012

 

 

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