The last line from the above link: Australian oil production has peaked: report

"Our lifestyle is totally dependent on cheap oil."

That is the one thing that has yet to sink into the consciousness of the world's people. Economists, as well as MSM, seem totally oblivious to the obvious fact that the current world recession is due, in large part, to the very high price of oil. And we will not pull out of this recession until oil gets cheap again. And that will never happen.

Regardless of whether you are a doomer or a cornucopian you must admit that our lifestyle is totally dependent on cheap oil. And though some argue that there are alternatives to oil no one can argue that there are alternatives to cheap oil. The EROI of all other forms of energy, such as they are, is much lower than oil.

Our lifestyle is about to change dramatically, and lot sooner than even most people on this list realize. There will be no recovery from the current recession, it will only get deeper. Well, that is unless there is a sudden surge in world production driving prices back down to their levels of just a few years ago. And what are the chances of that happening?

Ron Patterson

just to reemphasize :

"Our lifestyle is totally dependent on cheap oil."

the addiction term clinically means;

DEPENDENT.

& i don't think it's addicted to oil; but our systems are dependent[addicted to] on 'cheap' oil.

we are just getting the slack[time lag] out of many parts of our system.

Transitioning from oil to 'alternatives' might be compared to making a transition from morphine to aspirin for 'pain management'.

Which of course would work just fine if we were a ways down the road to recovery, However...

the addiction term clinically means;

DEPENDENT.

Just to push back against one-word psychology diagnoses. We are all apparently addicted to
-food
-oxygen
-sunlight
-the earth's magnetosphere
-photosynthesis
-vitamin C, etc.
-water
-shelter
-sensory stimulation
-human interaction
The addiction metaphor, when used beyond throw-away rhetoric, is just another way of lazy thinking that makes us more stupid. Ah but perhaps we like the term because it allows us to place blame and guilt and to denigrate other people. No?

Stop calling fellow TODs lazy and stupid. It's rude.

The vehement objections to the addiction metaphor are astonishing. Use of the addict metaphor is a health field term not a political or criminal one and does not necessarily imply the negative judgements [blame, guilt, denigration] that you assume it does.

Ron,

I think one advantage you, Airdale and I have as "oldsters", is that we have experienced life when energy use, and society in general, were different. Further, we have had contact with family members going back into the 1800s and what their lives were like. Younger people cannot envision the life we actually lived without mounds of "stuff"...and energy.

We also have the advantage of having acquired what we need to survive. I look at my life in the boondocks and know there is no way in hell that I could pull it off where I under the pressure of having to do it "right now" in order to survive. By this I mean not only the physical things but also the psychological adaptation necessary to live a different kind of life.

Todd

Hello Todd from the oldster(class of ,57) down 'chere in Western Ky.

The truth is starting to 'come down hard' here in the outback. Lots of
families are feeling huge effects. I hear from my banking buddy that some are liquidating much of their belongings just to afford gas for the vehicles.

Myself I barely caught the 'wave' on finding and buying a couple of yesteryears Honda Trail 90s. Had to drive several hundred miles to pick them up but it was worth it easily.

Now I can cruise the outback roads and off roads and make trips to town to pick up needed necessities. To take to the woods I simply shift into low range and can crawl up the steepest banks in granny low.

Gets about 100 mpg when riding the pavement.
Big luggage rack. Could possibly haul out a field dressed deer ifn need be.

Yep its all starting to come down as we oldsters thought it would.
To those not fully into their lifeboats at this time? Well you surely are in deep kaka and right now prices are skyrocketing to add to the pain.

My latest project , not started yet, is a outdoor(screened in porch) wood fired pompeii style oven. Forno Bravo has all the details on constructing such along with recipes for what they would say as the best pizza in the world.

Airdale-doing what needs to be done(living in a pole barn), growing my garden,etc........

PS. I was given two huge blown down red oak trees to saw up into this winters firewood and possibly enough for the next year...have laid in 3 wood burning stove that I got for almost free.

Hi 'ol Buddy,

Well, I was class of '56 so I got you by one (but I did have a big, black '57 Ford convertible in college my senior year). Anyway, I've got about 2 years of wood in and I'm going to have a lot more. We had a major fire (8k acres) a couple of miles from us a few weeks ago. As I look around I see I have to clear a lot of woods for fire protection. Some of it's small stuff but a good portion are trees 60-70' high. The trouble is I've got tons of other projects. Guess they'll wait.

Todd

Good to hear from you Airdale. Yes, the changes seem to be upon us. I hope we oldsters can weather the storms. By the way, one of those storms laid a huge oak tree on my house yesterday. Provided a lot of potential firewood and a chance to practice living without electricity. It will not be easy. (I am not enough of an engineer to maintain a solar electric system--or afford one.) Best to you! Hummingbird, Class of '56

Glad to see you're around on the net and kicking. If you decide to come back to my site, we've taken care of the spam problem. I found a good modification that worked well at keeping the spammers away.

~Durandal (http://www.wtdwtshtf.com)

Thanks.

I revisited WTD just a bit ago after reading your post. Will post as time permits. Glad to see the site is
still alive(as I am).

Actually I am in better health than I was 5 years ago as my blood chemistry had made me very sluggish and prone to low energy levels.

Back riding my Harley, working on my new(old) Trail 90, and doing all the things I need to be doing.

Airdale

The generations in my family run long: one of my great-grandfathers was born in 1829. I can recall my grandmother telling about her daily chores. Her family had a large land-holding on the banks of the Missouri River directly south of Columbia at McBaine which was the rail stop at their farm. Although it was good rich bottomland, her father preferred to run cattle for the most part, and raise race horses. Every year they would have a horse race at which Frank James would fire the starting pistol. They had neither running water, electricity, nor indoor plumbing. Her main chore was to trim all of the wicks of the lamps in the house, and to keep them supplied with whale oil. This was from about 1900 to 1908. She went to Stevens College in Columbia, married my grandfather in 1912 and settled in Kansas City, where her first car was an electric car. Only in 1918 did she get a car with an internal combustion engine, and that winter she had to bring a pan of coals out from the house every morning and put it under the engine so she could turn the crank against the viscous, heavy oil, to start the car.

Ron,

Just curious as to what you think the difference is between Mexico and Saudi Arabia, since both regions are highly dependent on one large field and since both countries are showing rising water cuts (or more accurately thinning oil columns) in key parts of their big fields, and since both countries have shown monthly increases in production,e.g., last month in Mexico.

Does last month's increase in production in Mexico mean that Pemex has been voluntarily reducing their production because of market conditions, or does it mean that post-peak regions can show both increasing and decreasing production at different time periods, but on an annual basis they don't match their final peak rate?

Just curious.

Jeff, I believe both Mexico and Saudi are producing flat out. Ups and downs are to be expected due to maintenance of wells and such. Saudi has much more leeway and are not as concerned with keeping production at maximum as is Mexico therefore Saudi has much more volatility then Mexico.

Mexico's small increases in the last two months are nothing to cheer about. They are still below their March level and except for April and May, they are at their lowest point in over a decade, since well before they peaked.

I do not rule out the possibility that Saudi has been manipulating their production for a purpose that has little to do with the price of oil. If they were producing every possible barrel in the summer of 05 and there were serious rumors that they had peaked, they might have deliberately cut production by a million barrels per day, then raised it by three fourths a mb/d, then it would look for all the world like they could, if they wished, raise it even further. Of course everything concerning Saudi Arabia is just a guess but I don't trust a damn thing they say. At any rate the next few months will be very interesting.

But Mexico is an open book. I only wish Saudi were also. Saudi an Mexican production for the last seven months, in thousand barrels per day. The Saudi numbers are from OPEC's Monthly Oil Market Report and Mexico's are from PEMEX's Monthly Petroleum Statistics.

... Saudi ..... Mexico
Dec 8,980 ..... 2,954
Jan 9,075 ..... 2,957
Feb 9,090 ..... 2,929
Mar 9,031 ..... 2,847
Apr 8,984 ..... 2,767
May 9,179 ..... 2,798
Jun 9,350 ..... 2,839

Ron Patterson

As a followup comment to Ron's, I highly recommend that people review the monthly data for the United States from 1968 to about 1974.

The annual peak is very obvious in there but the monthly noise is, well, noisy. I refuse to read too much into single month peaks as trends are more important and annual production figures tend to smooth out maintenance and other issues. The problem, of course, is that getting annual figures literally takes years. ;)

If Mexico can increase production for 4-6 straight months, then I might take notice, but otherwise no.

It will indeed be interesting to follow Mexico's production over the next months. Do you know the C+C consumption of Mexico? Assuming an 11% decline rate in Mexico over the next years, Mexico will become a net oil (C+C) importer in 2011 assuming C+C consumption in Mexico is about 1.8mbpd. If it is more, it could happen in 2010.

I don't think we can expect much exports from Brazil either in the future. The consumption there is about to take off. Vehicle sales is up a wooping 30% so far this year, there's a consumption boom never before seen in the country, the mood in the country is one of great optimism, and to be frank, a country with almost 200m people, reaching 220m in 2020 should have ample room for internal consumption. Expect Brazil's consumption to double by 2020. The country is exactly in the income level where internal consumption takes off, similar to the western world in the 1960s.

No, we are not dependent on cheap oil, we are dependent on cheap oil that gets cheaper and cheaper as time goes by - comparing 2000 to 1970 each barrel of oil in 2000 produced around twice the GDP, (or the price of the oil halved).

The cheaper and cheaper bit is the important bit as it allows more and more to be afforded/consumed - AKA economic growth!

For the last nine years in the absence of adequate alternatives the net-export price of the marginal barrel of oil has not been getting cheaper and cheaper, the pace of overall world economic growth (and things like banking which depend upon economic growth for success) must slow as a consequence!

In a post peak-oil world in order to continue BAU world economic growth any alternates to oil (and FF in general) will have to be competitive in unsubsidised price and become cheaper as a proportion of income over time - what can we use?

Are there absolutely no plans whatsoever to massively increase production of the huge ultra heavy oil bitumen resources in Venezuela? Is it a fresh water shortage problem that would make it impossible to even increase it to 1 mbpd in the foreseeable future?

Ron, your statement frames the problem perfectly, and this is EXACTLY why the term "addiction" is flawed, trivial, stupid and banal.

This is no mere addiction. Dependency and addiction are different, categorically. In fact, I'd wager addiction is a cultural myth, the mythical golden goose that has hatched a thousand recovery groups.

There. Is. No. "Recovery." From. Peak Oil.

LOL.

To continue the metaphor re 'there is no recovery from peak oil':

Most politicians define 'recovery from peak oil' as returning to BAU: ie getting another fix from some forgotten hidden stash [offshore] or stealing it from some other [nation state] or switching to a substitute [coal]. They will fail.

Most addicts never recover, a lucky few do but the changes they make are thorough lifestyle changes. Thorough lifestyle change is not what most oil dependent states have in mind. They'd rather die.

And so they will.

Even a dead addict still fits the metaphor perfectly.
:>(

mikeB

u obviously haven't read many coroner reports.

but yes ron is right a declining spiral at best with dropoffs & occasional flat spots & rare brief upturns ;

& maybe at some distant point the coroner's report on humanity that never gets written.

Great post Ron. "Our lifestyle is totally dependent on cheap oil."

That one line says it all. People can crunch the numbers ad infinitum, but the truth of that one statement is the viewpoint from oil's peak plateau. We've created a world dependent on cheap energy (oil). Transportation on all levels is most dependent on it.

However, whereas I was completely pessimistic a while ago, my sense now is that we still have enough time to make the transition to alternative energy systems, with an emphasis on small passenger electric vehicles. If we develop a modern electrical grid that is more efficient, allowing for connection from wind and solar, the US can act as an example to other countries to greatly reduce their dependence on oil. We can also use natural gas as a competing subsitute for diesel in commercial trucks.

If we can successfully make this transition, then other countries will follow suit and worldwide dependence on oil will be reduced enough to extend the years oil will remain abundant, until some day oil will not stand as such a crucial foundation to our lives.

Now this could very well mean a temporary lowering of standard of living. Maybe we won't thunder down the road in giant 4WD black internal combustion monster, but instead whine down the road in a tiny Chevy Volt. Maybe we won't get all the imported products we once took for granted while this transition takes place. But it sure beats capitulation to the socially depraved micro townships depicted in Kunstler's books.

I urge all peak oilers to optimistically back alternative energy production.

I urge all peak oilers to optimistically back alternative energy production.

Ok, I back it.

Now what?

So the NMRA acknowledges that Crude production in Ausralia peaked... some time ago (2000), and further acknowledge that our lifestyles are totally dependent on cheap Oil. Well, bully for them. They seem to be exhibiting Cognitive Dissonance, as they (and their fellow-traveller organisations such as the RACQ and RACV) are constantly calling for more money to be spent on building new roads/upgrading old ones.

Our motoring organisations came into being to campaign for safer roads. Then they campaigned for more roads. Then they campaigned for more, safer roads.
By 'safer', one can only assume 'safer at high speeds'. Last weekend I was in a car driving down The Range from my girlfriends 'farm', on one of the 'most dangerous roads in Queensland'. At the signed speed limit, it is not dangerous. If it rains, slow down a bit. The biggest danger to drivers is boredom, alternating with gawping out the side windows at the scenery. Yet the RACQ is constantly demanding more money to 'fix' this highway. Perhaps the RACQ could campaign for money to rebuild the abandoned railway line that used to run up the Range instead?)

Five kilometres from here, Main Roads is busilly ripping up several kilometres of National Highway, and adding extra lanes in each direction. I shudder to think what the final cost will be. And more locally, Main Roads recently spent the better part of Au$10-20 million to achieve what could have been achieved by simply painting new lines on the existing road.

Instead of funding a massive expansion in MT/PT, the Queensland Government subsidises Petrol/Diesel to the tune of 8c/L, adding up to $500 million a year! That's funding for about 50 kilometres of 25kVA electrified Heavy Rail, dissapearing into thin air!

Insanity.