DrumBeat: August 16, 2006

[Update by Leanan on 08/16/06 at 9:24 AM EDT]

TOD's own Robert Rapier in the news:

Robert Rapier talks about Vinod Khosla, Proposition 87, peak oil, and the need for transportation electrification - An audio interview. Internet Explorer recommended (I couldn't get it work with Firefox).

Raising Cane - An Australian article on ethanol production.

OPEC cuts 2006 oil demand growth forecast

World oil demand will rise more slowly than previously expected in 2006, partly because of record high prices, the Organization of the Petroleum Exporting Countries said on Wednesday.


Militants release four hostages in Bayelsa. The oil company who employed the kidnapped workers agreed to address some of the militants' concerns.

Meanwhile, Nigeria promises kidnap crackdown

Nigeria's President Olusegun Obasanjo has promised to act against those suspected of involvement in a string of kidnappings in the Niger Delta region.

He said he had ordered 24-hour patrols in the Delta's creeks and swamps, and threatened action against oil firms who paid ransoms for their workers.


Iraq and Jordan sign oil deal

BAGHDAD (AFP) - Iraq has struck a deal to supply neighbouring Jordan with cheap oil by laying a new pipeline across the desert between them, the countries' prime ministers have announced.


Oil, water, weather crises will hit cities

Municipalities are facing a "perfect storm" once the era of cheap oil, cheap water and altered weather patterns hits with full force, says Ontario's environmental commissioner.

In a chilling speech to municipal leaders yesterday, Gord Miller said municipalities are not ready for the massive effect on communities.

"We are entering a period of consequences," said Miller. "Our present public policy is inadequate to deal with these immense problems that are upon us right now."


Peak Oil and Relocalization in Ohio


Global warming affects hurricane intensity: study

Global warming is affecting the intensity of Atlantic hurricanes, according to a new study by a university professor in Florida who says his research provides the first direct link between climate change and storm strength.


[Update by Leanan on 08/16/06 at 9:43 AM EDT]

More protests over power outages in Bangladesh. Bangladesh has been struggling with energy shortages for awhile now. According to the article, the suburbs are the hardest hit.


Sharp rise in oil-cash investments forecast

The recycling of surplus petrodollars through the global financial system is set to intensify, with Saudi Arabia and the five other members of the Gulf Co-operation Council exporting at least $450bn of capital over the course of this year and next, the Institute of International Finance predicted on Tuesday.


Demand destruction in Scotland:

SCOTLAND'S love affair with the motor car is waning, with Scots increasingly leaving their vehicle in the garage and taking public transport or walking instead, new statistics have revealed.

...Experts said huge rises in fuel costs, increasing congestion on the roads, coupled with increasing investment in public transport and growing awareness of the environment was behind the change.

End of the road for the Chelsea tractor


Shareholders sue BP over Prudhoe Bay


Namibia: Fuel Hike Boosts Agrigultural Production Costs


Wall Street's New Love Affair: Why some of the world's smartest investors are betting billions on clean energy.


Forecast puts Earth's future under a cloud: 3C increase would bring fires, floods and famine.


Australia: Brace yourselves, warns Costello

INVESTORS and home owners have received a rare, dire warning from the Treasurer to brace for the economic fallout from "world record oil prices".


Western Cape now hit by gas shortage. It's affecting tourism and manufacturing.

Hello TODers,

I was pondering the fact that we normally discuss gasoline prices more than diesel prices on this forum.

Maybe we should spend more time periodically watching diesel prices as it may be a better leading indicator of a possible supply-demand crunch in certain geographies. The recent shutdown of half of Prudhoe Bay really affects the West Coast of the US as this geographic area is severely pipeline-constrained from receiving crude overland from the GoM.   From this Platts link:

----------------------------
The International Energy Agency said August 11 the shutdown of Alaska's
Prudhoe Bay output creates crude quality issues that could be a concern for
the currently constrained global refining sector.

    "Crude quality issues are more of a concern than volumetric outages," the
agency said in its monthly report
.

     "In the case of BP's Prudhoe Bay, the crude lost is medium sour and
possible replacements from Saudi Arabia are likely to be sourer," said IEA.
"But this crude could be blended and will be processed by sophisticated West
Coast refineries with more flexibility to remove sulphur than refiners who
typically rely on Nigerian light sweet crudes.

According to the IEA, recent data indicates West Coast refiners are
importing crude from such countries as Angola, Argentina, Iraq, Oman, Saudi
Arabia and Yemen. But, it added, "the transit time from many of these
locations suggest refiners are likely to need to draw on stocks by late August
if already-on-sea cargoes cannot be diverted."

     BP said August 11 it has bought more than 4.5 million barrels of crude on
the global market to help cover its Prudhoe Bay shortfall, with further oil
and products to be bought as necessary. The crude is coming from West Africa,
South America, Asia and the Middle East, said a source.
----------------------------------------------

Consider that California Gasoline only went up two cents in the past week, but Diesel just jumped $0.23 in the past week.  Is this an early indication of what lies shortly ahead for the West Coast gasoline consumer, or can it be delayed till after the November elections?  Is the Governator and CA oil companies hoping to delay future rampant gasoline price increases as far as possible into the upcoming election cycle?  If it takes a long time for that sour crude to arrive and be processed, your average pissed-off voters won't be in any mood to study Peakoil and the West Coast's oil infrastructure!

Consider that most diesel burned in this country is used for commercial and farming purposes--these people don't joyride, but watch their fuel costs very closely.  Contrast this with a lot of our gasoline use and one can clearly see that diesel demand inelasticity is much more tightly constrained than our gasoline demand inelasticity.  Diesel demand also has alot less seasonal variation than gasoline too.  This link on California petroleum is excellent info [pdf warning].

The other consideration is that over time it will be alot easier to improve gasoline mpg than diesel mpg.  People can switch much faster to higher mpg cars, car-pooling, mass-transit, scooters/motorcycles, bicycles, etc versus a big-rig hauling our goods or a tractor trying to plow a field.  In short, you can't carpool two semi-trailer loads into one trailer.  This diesel equipment generally costs alot more initially so they need to get the full use and depreciation out of it before they can trade up to a more efficient replacement.  The diesel problem is: how much more efficient can you make a bulldozer, diesel locomotive, or a diesel powered fishing boat?  Most diesel vehicles really work, versus most gasoline vehicles cruising with hardly any load [like the one person/car commuter mode so popular in the US].

So logically, the price of diesel/gallon should increase less than the price increase of gasoline/gallon.   But we need to remember that people vote, not corporations.  But companies can pass off their rising costs to the end-user, and most of us are unaware that this corporate method is the most powerful vote of all.

From this Energy California Govt. webpage  we can see that CA refineries turn 51.4% of a barrel of crude into gasoline, but only 15.3% into distallate/diesel.  If refinery processing problems from late and heavy, sour shipments can be publicly hidden or delayed by decreasing diesel production and keeping gasoline production up-- it benefits both the IOCs and the Governator by keeping the easy-motoring, drive thru, laidback CA voter uninformed for as long as possible.  Thus, it takes longer for diesel fuel costs to work their way into the price of consumer goods versus the immediate consumer outrage of high gasoline prices.

Bob Shaw in Phx,Az   Are Humans Smarter than Yeast?

Hello TODers,

I am listening to RR's audio interview--He is an ALL_STAR rep for TOD--MUCHO KUDOS!  I hope all the TOD experts can vastly increase their MSM penetration to offset Yergin's  media pervasiveness and evasiveness.

Perhaps we need to form a TOD Speakers' Bureau and formulate a basic platform so that we can be relatively consistent in what is presented to the public.  

Consider RR's comments on California's Prop. 87 and Khosla's support for it.  The IOCs best chance to derail the voter approval for it is to keep gas prices as low as possible for as long as possible before November.  Now consider my top posting on the price disparity between diesel and gasoline on the West Coast, in fact throughout the entire Rocky Mountain region.  Notice how diesel is much higher out west?  My guess is most of the IOCs are currently upset for BP's corrosion screwup in Alaska.  Overall--it really is bad timing for the West Coast until a big pipeline is built to the GoM to equilibrate prices and volumes.  We already know the Alaskan Governor & Revenue Office are plenty upset already.

Bob Shaw in Phx,Az  Are Humans Smarter than Yeast?

As others have discussed previously (I think it was Alan?), much of modern diesel usage is in truck based shipping, which can be completely replaced by electrified long haul rail. I don't recall the exact figures but something like a 25% change from trucking to long haul electrified rail would reduce US oil (primarily diesel) consumption by several million barrels. Consequently, there is much more elasticity there (for the country as a whole) than is widely believed. Of course, if you are a trucker out of business because of this, then it hurts but that's the nature of the free market.

Perhaps someone else recalls the article or comment where this was discussed in more detail?

Hello Greyzone,

Thxs for responding.  I don't dispute the potential energy savings of RRs and mass-transit at all--in fact, I have posted before how I hope everything AlanfromBigEasy advocates comes true, and soon!  But this is mostly a political voter decision, not a true supply-demand decision.  Unfortunately, RRs & mass-transit companies are outgunned by widespread Peakoil ignorance and denial, combined with the influence exerted by the Iron Triangle as explained by TODer Westexas.  Only when gas prices put a solid hurt to the typical SUV owner is when they will vote in mass for RRs, and mass-transit.

The CA oil companies are having to fight Prop 87 with one hand tied behind their back due to BP's Prudhoe screwup.  I really feel they are trying to give the gasoline motorist a break hoping to get them, in exchange, to vote down Prop. 87.  By further refining and chemical upgrading of diesel: you can get more gasoline, but at a increased cost.  If Prop. 87 wasn't on the CA ballot, the IOCs could pursue the higher goal and lower cost of optimizing the efficiency of the refineries' chemical output production mix instead of having to pursue a politically driven output production mix.  In other words, since they are having to use ever heavier and sour inputs-- it would be normal to expect more diesel and less gasoline per input barrel of crude.  The price disparities between diesel and gasoline should actually be reversed for optimal refinery efficiency on a chemical and cost basis.

I would argue that this is better for the West Coast in the long run too, as it would encourage gasoline conservation from higher prices, yet make diesel relatively cheaper for the farmer and trucker to provide us with food.

Please bear in mind that I am not an expert, but the API degree, sulfur content, and other crude factors chemically predetermine the optimal refinery outputs.

Bob Shaw in Phx,Az  Are Humans Smarter than Yeast?

much of modern diesel usage is in truck based shipping, which can be completely replaced by electrified long haul rail.

Nope.  Not completely.  In part, and in fact some long haul work is now being done by rail.  

But not completely.  The capitol costs of moving all the rail to the business or the businesses to the rail will make sure that does not happen.

I work at the RR on the intermodal side, where all the trucks meet rail.  I can say this area has done nothing but explode and it's not stopping.  Long haul trucking is dead.  You can't even find the truckers who are willing to perform it if the $$ as right.  I talk to trucking companies all day about their business.  There going to be fine so long as people keep swallowing fuel surcharges that increase in some cases weekly.  

It seems to have lulled now though, but even many executives at these co's know that the future is rail.  They realize that it is simply more efficient to move distances on rail and move trucking back to strict local.  The funny thing is when I approach the topic of diesel prices and question changes made to personal habits etc and many just don't see the WHOLE forest.

I've heard thru a credible source that manufacturers of large diesel trucks will be tacking up to 10,000 dollars extra for 2007 emission requirement trucks for the fire service. If the fire service has to pay so much extra then I assume long haulers will be as well when they go to buy new trucks.
I don't really know what you're talking about.  Many trucking co's are middlemen and nothing more.  Most truckers are private contractors free to move to anther company for whatever the reason.  I run into issues with truckers damaged our equip but moved to another company and we can't charge people only companies.  So if they will be forced to take on $10K in charges, it will get passed on somehow.  Long haul trucking is dying if it's not dead already.  
I am not sure of the amount, but you are correct that there are additional costs associated with purchasing a new diesel vehicle.

The change consists of additional particulate traps, catalytic converters, etc... got a few friends that work in the heavy truck sector emmissions... it's all they talk about

The next step after intermodal is for businesses to start getting rail sidings installed like in Days of Yore. We'll see how long that takes.
Many businesses still have these.  I worked in a factory for two years in my first few years of college and there was a section of the plant where we stored rail cars still on the tracks.  We used the rail cars for storage ironically.  I don't think it would take much to reactivate these hook ups throughout the country.  I'm sure I'll see companies going back to this in my lifetime.
exactly.
our current rail infrastructure can't handle the load if the vast majority of long haul trucking was moved back to being moved by freight train.
if we were to do this we would have to have a massive build up of our rail infrastructure which will gobble up any of our savings(capital and energy) we would gain by putting the freight back onto rails.
I don't get your point.  If there is a solid energy savings, then the capital-intensive buildup of new track/rolling stock would justify itself in cheaper running costs, wouldn't it? (Over time.. the farther out you go still only improves the picture if you anticipate continued rising energy costs)

The way you put it, it sounds like you don't accept the aggregate savings of cheaper fuel needs (plus, I believe, better maintenance performance, too)

Bob Fiske

in theory there are savings.
our current rail structure is a shadow of what it once was before trucking took over. to go back too having things sent mostly or all by rail would mean we would have to rebuild lines that we either tore down for recycling or let rust into uselessness and build more locomotives, rail stations, etc.
the cost of such a build up will either make the savings from ditching the fuel hog trucks dry up to next to nothing or nothing at all.
there was a reason we originally switched from rail to trucks. and that was it was cheaper in both energy and money and it was relatively faster.
No, that is not the reason we switched. I suggest you read Goddard's book Getting There. The reasons we switched are that the freight companies acted too comfortably and monopolistically (not to mention oligopolistically) and that created a huge political impetus for building ways to bypass them. During World War 1 there was considerable tension between army officers and the rails regarding the shipping of material from the industrial areas of the Midwest to the East Coast for the war effort, which resulted in experimental truck convoys being used.

That in turn inspired the Interstate Highway System and the rest is history.

It was also the behavior of the rail companies, as Apuleius implies. They really hosed the farmers, especially in the western half of the country, or at least that's what those farmers believed. I still recall the astounding, absolute, vitriolic hatred of anything to do with railroads that I ran into in Colorado and Utah years ago, just in casual conversation about the gas crises of the 1970s.

Given that context, I find it astonishing that Denver has built light rail. I suppose the bad memories are fading and lots of newcomers have moved in. Still, I don't know that I'd look for any love of freight rail anytime soon. Alanfrombigeasy, are you reading, from wherever you are?

So we shouldn't rebuild it at all, even as energy costs on trucking skyrocket? That's asinine. Of course there is going to be a cost but we can't just keep on doing what we are doing right now. Further, building out rail can provide jobs here in the US. And the reason we switched from rail to trucks was massive lobbying by Detroit and Standard Oil in the 1920s and 1930s that imposed regulations and costs on rail while subsidizing trucking in order to kill the former for the benefit of the latter. You may wish to study your history on this topic.
Laying down track is far cheaper than laying down or even maintaining macadam.
Is that still true at today's extremely tight tolerances (if you want to run the trains at any decent speed)?
Still true. Those tolerances are decided by the rails and the ties. Everything else is still plain old gravel.
Ties today are made of hardened concrete at least on heavy travelled tracks.
Why not lay down rail tracks right on the interstate highways? The right-of-ways and overpasses are already in place, which account for most of the cost of building a new rail line. This would be a cheap and energy-efficient way of massively increasing the railway capacty. We should start doing that right now, the motoring public be damned.
I would think that the interstate system would be divided down the center and light rail would be installed in many cities to keep suburbia going.  Freight still won't be going through urban areas unless it's the destination.
Rail lines running right down the expressway median... sounds like Chicago, or some places in Europe... mainly light / commuter rail as you mentioned.  I don't see why that would not be a very cheap alternative to transporting people into and out of town... I think the biggest issue though would be the freight to support those towns.
"Trolley freight" uses Urban Rail built for passengers to transport freight.  Not universal in Europe, but several cities there do it.

I think DART in Dallas would be a good candidate for trolley freight (single containers/ flatcar) once current expansion plans are completed.

"Auto Sewers" repell people. including potential rail pax.

The Green Line in Los Angeles is in the middle of a freeway, and that location has reduced rail ridership (per analysts that I believe).  Would you want to wait even a few minutes amongst the noise & exhaust of a nearby freeway.

Although running an Urban Rail line down a "freeway" is the "least best" option; it could be cheap and fast and we may need to do this.

All sorts of detail issues (overhead clearances under bridges,  entering & exiting freeways) make this option a site specific "maybe".

So

Alan I don't disagree, but I'm trying to be pragmatic in my thinking on this.  Bottom line is there is only a handful of politicaians with the mettle to address the coming energy issues.  Since they will most likely wait until the last possible moment, the fastest most cost effective way, IMO, is to simply put it in the middle of open stretches of land, mostly highways.  There would be no rights of way arguments, no environmental studies & reduced demand for freeway space.  We've got 8 lane highways mostly, so at WORST is we put in a single track in each direction.  I don't even think you should bother to spend the cash to raise it, since this is a capital investment that will be built upon later and elevating the track just makes it cost more unnecessarily.

Alan you call it an auto sewer, but that's ONLY predicated on a belief in cars.  I'm talking a pardigm shift in peoples perception of local travel.  My sprawling metro area is maybe 75 miles end to end.  By car it's no issue since I can get anywhere I need to in about an hour.  Once you destroy that relationship of a car and a mile, you'll see more people willing to get into the sewer to get to work.

Great work RR! We are getting in the MSM and this shows that this blog is doing a great job on its primary goal - promoting energy awareness.

What caught me in the headlines is this OPEC statement:

World oil demand will rise more slowly than previously expected in 2006, partly because of record high prices, the Organization of the Petroleum Exporting Countries said on Wednesday.

What a twist of words! Now it turns out that demand is growing or slowing because of price. Do we need to write a new OPEC-specific economic theory?
What a twist of words! Now it turns out that demand is growing or slowing because of price. Do we need to write a new OPEC-specific economic theory?
What? This is exactly what conventional economic theory predicts, that higher prices cause reduced demand!

The place that economic theory does not match with reality, or at least with the claimed reality, is that high prices should cause increased production as well as reduced demand. OPEC claims that they could increase production if they wanted to, but they choose not to. Instead they watch as production falls because of lowered demand due to high prices.

So that's the real mystery: why, if your prices are so high that they are driving away your customers, you don't lower your prices? That would bring demand back up, you could ship more product, and make more money.

Two possible explanations: (1) OPEC doesn't increase production because they can't despite what they claim. They don't want to admit it, so they just talk about falling demand. In other words, we are at peak oil today.

(2) OPEC doesn't care about lost profits today because they know that oil will be even more expensive next year, and more so they year after that. They could increase production today if they wanted to, but why piss away their oil at $75/bbl when they know it will be worth $100 and more in a few years? In other words, they anticipate peak oil in the future and are taking steps to conserve now.

I would venture a guess that overall profitability may be higher just as the oil majors are experiencing.  Worldwide demand has not softened.  Individual areas (bangladesh) may be buying fewer barrels, but the world is not.  I confident that the national oil co is reaping some hefty profits as they sell higher priced oil to the rest of the world.  
Sorry to introduce a pedantic note but higher prices cause a decline in quantity DEMANDED; they do nothing to shift the demand curve itself.

The overused and inherently ambiguous term "demand destruction" refers to lower quantities being demanded because of higher prices--other things staying the same.

Prose just does not work well to express these ideas. Either equations or graphs (i.e. graphical equations) are almost a necessity to avoid the freshman Econ 101 confusion between changes in quantity demanded (solely because of price changes) and changes in demand (which are caused by a whole bunch of things such as changes in income, population, expectations, tastes, technology advances, and the weather, etc.).

Oooh, I should probably know better, but this doesn't seem quite right.

As it was taught to me, at a given point in time, the demand curve has a particular shape and position.  However, as you note at the bottom, demand curves do change over time, and expectations, including expectations of possible ranges of price, would seem to me to be one of the things that can alter demand curves over time.

That is, demand and supply curves apply at a given point in time, but change over time.  To use Tertzakian's favorite example, there were once demand and supply curves for whale oil.  There's not much of a market in that anymore.

You are talking about consumption, not demand.

The standard economic theory predicts that the price is set by the demand and the supply. That is demand and supply are the causes and price is a consequence. Saying that "demand did not grow because of the high price" is deliberatelly omitting half of the picture - namely that the high price was caused on its turn by the unability of the supply to grow as fast as consuming countries would want it to grow.

The correct statement would be that supply did not grow as much as they expected and as a consequence we have the high price to balance both.

LevinK is correct, Don.

Quick primer on fundamental economics:
Say you own a candy store (I have a massive sweet tooth this afternoon).
20 kids want a gummy bear. That's the demand.
You only have 17 gummy bears to sell. That's the supply.
You raise the price of gummy bears until 3 kids can't afford one, and go home. That's demand suppression (often mistakenly referred to as demand destruction).
You sell the 17 gummy bears you have to the 17 kids remaining "in the market". That's consumption.

  1. Consumption cannot exceed supply.
  2. Demand can exceed supply. This is known as a shortage.
Don teaches Econ last I checked so I don't think what you're saying is news to him.  After rereading his post above I assumed all that you listed above.  There will always be excess demand, it's just at a lower price.  Cold sore medication strikes me as one of the most overpriced medical items available.  The name brand one(can't think of it) goes for like $15 at WM and $18 or more at Walgreens.  Why?  If I had cold sores I would demand this, but the fact that it's nearly $20 makes me suffer for a whole week.  
Sorry, but you are mistaken.

"20 kids want a gummy bear." is NOT an example of demand.

To be an example of demand, you would have to specify at what price each would purchase one or more gummy bears. Here is an example of a demand schedule for a two person market, Alice and Bill.

At one cent Alice will buy one gummy bear and Bill will buy two.

At two cents Alice will still buy one gummy bear, but Bill will now buy only one.

At three cents Alice will still buy one gummy bear, but Bill will buy none.

At four cents, nobody buys any gummy bears.

Demand schedule for gummy bears equals Alice's demand schedule plus Bill's demand schedule.

one cent, quantity demanded is three G.B.s.
two cents, quantity demanded is two G.B.s
three cents, quantity demanded is one G.B.
four cents, quantity demanded is zero.

Thus "demand" refers to a whole schedule, often plotted as a line on a graph. "Quantity demanded" refers to a certain amount actually purchased at a particular price.

The distinction between quantity supplied and "supply" is similar to the distinctions in regard to demand and quantity demanded.

Prose is tricky stuff for discussing supply and demand; schedules, graphs, and equations really help a lot here.

The reason I post no graphs on TOD is that my sad experience from teaching economics for thirty-one years is that few people can read and interpret them properly. Very careful prose and a clear understanding of economics will work, but few college-educated people now understand prose well, and fewer still grasp even the most elementary fundamentals of economics.

BTW, "demand" is not the same as "want." Demand includes both the willingness and ability to purchase a good at a range of prices. Thus it is quite wrong to speak of "an unsatisfied demand for food among the world's poor." They need food or they will die, but without money or credit to buy the food they will die, because they have no effective demand.

This is "positive" economics, i.e., the way things are. "Normative" economics discusses the way things ought to be. This distinction was first and most clearly made by the notable economist John Neville Keynes, the father of John Maynard Keynes.

The reason I post no graphs on TOD is that my sad experience from teaching economics for thirty-one years is that few people can read and interpret them properly.

Oh go ahead and throw caution to the wind Don - post some graphs. I think you'll find that there are people here who will understand them ;-)

Ah, but then I would have to explain the graphs, and by the time all the qualifications and "other things staying the same" and discussions of graphs as a teaching tool rather than a representation of reality . . . oh boy. Long, long comments . . . . Not good.

Also, nearly fifty years ago, when I first got into serious research in the social sciences it was hammered into me that real researchers loved to wallow in raw data, which usually means tables of numbers rather than graphs (which are, after all, nothing more than plots of tables of numbers).

I may post some small tables of numbers, especially for illustrative purposes, and then anybody who wants to plot them is free to do so. Whenever I see a graph, I am tempted to ask, "Please sir or madam, could I see the numbers too?"

Another problem with graphs is reification: When somebody posts a pretty multicolored graph there is a temptation to immediately jump to the conclusion that it means something. And for the evil in heart (none of whom, of course, ever post on TOD) it is too darn easy to lie with graphs.

For a horrible example, almost all the supply and demand curves in economics books are outright lies--lies to simplify matters. In reality, these graphs should never show straight lines but should show fuzzy somewhat curved areas instead. There was once a book that tried to do this in one of its editions (Heilbroner and Thurow, about twenty-five or thirty years ago), but the publishers said: "None of the other econ texts do it this way. So do it their way if you want to see another edition of your book."

"In reality, these graphs should never show straight lines but should show fuzzy somewhat curved areas instead"

Indeed.

Its almost as bad as the monthly post of world oil consumption that appears in a place not too far from here the conversation goes something like this:

Hmmm... those point don't line up, run a smoothing filter over them.

What kind of a smoothing filter?

Well, a thirteen month equally weighted one, thats obvious isn't it?

Ummm... the line has some bumps in it.

Shoot, that can't be right, the largest trade system in the world MUST be bumpless. Run a smoothing filter over it.

What kind of a smoothing filter?

Well, a thirteen month equally weighted one, thats obvious isn't it? Are we at peak yet?

I'm not sure, your filters ran out of data to window 6 months ago.

Look, stop giving me a hard time, just lock the window for the last 6 months and draw the damn line!

O.k., Wow, looks like we are really past peak (takes another drink and squints at the graph) Yepper, definatly pointing down!

Thats my boy...

What about a data table, error bars, correlation coefficients, frequency analysis of the raw data, distortion properties of the smoothing filter....

Would you knock it off already! Put a pretty picture in as a background, I see those at the conferences all the time!

I also don't like the statiscal habit of ignoring the outliers to smooth out your data or graphs.  Sometimes, the outliers are the most interesting story to explain.
correction above...statistical
. . . oh boy. Long, long comments . . . . Not good.

You mean EVEN LENGTHIER than the ones you already disgorge so liberally!
Not good, I understand...

What we could use is a few graphs illustrating the implications of an inelastic demand curve (short term) versus a much more elastic demand curve in the long term.

Ceteris paribus, of course.  (isn't that greyhound bus in latin).

Hmm well two things about the current situation strike me as very relevent.

Is there anywhere a price schedule for Oil?

How are dynamics incorporated into a schedule?

It's clear from the world oil consumption graph that the price spike of 1980, caused a fundamental shift in how people used Oil and the coupling between World economic growth and Oil consumption was substantially weakened following the 1980 peak.

In inflation adjusted terms, we are now approaching the 1980's peak. Is there any research into how this will affect the coupling between economic growth (or decline) and Oil prices?

If I do a straight line projection of the world oil production from 2002 to 2004, we are now sitting about 3 MPD below where the projection says would have been if Oil remained at $40 per barrel.

So does that mean that an extra $30 per barrel removes 3 MPD of demand, or does it mean that $70 per barrel mean that world demand is decreased by 1.5 MPD per year? (given Oil production has been roughly constant since 2004).

I guess we'll find out in 2007 if production remains flat and Oil says at $70 per barrel.

Excellent questions!

Supply and demand curve analysis is comparative statics and says absolutely nothing about dynamics.

Estimates of price elasticities of demand for petroleum products are fairly good so long as you are close to existing prices. What the impact of doubling or trebling prices would be is anybody's guess--except (and this is a huge exception) we know for sure that the price elasticity is greater (Let us pretend that the minus sign is not there, just to simplify, as we usually do in undergraduate economics.) as the length of time increases.

In other words, over a week there is hardly any price elasticity of demand for gasoline. Over a year there is some but not much. Over ten years there is a helluva lot, and over twenty years a lot of economists think it is maybe close to unity. What does unity for price elasticity of demand mean? It means that when price (in real terms, adjusted for inflation) goes up ten percent, then quantity demanded goes down ten percent.

Unit elasticity is handy, because then all demand curves become rectangular hyperbolas, and with those you can do some nifty math stuff.

CAUTION! CAUTION! CAUTION!
The price elasticity of demand depends a helluva lot on price itself. At low prices (fifty cents for a gallon of gas), gasoline is nearly price inelastic in any kind of a short run. At a much higher price, say five or ten dollars for a gallon of gas, we can expect to see far far higher price elasticities of demand for gasoline, especially in intermediate and long runs.

BTW, the price elasticity of a straight-line demand curve on a graph varies enormously, depending on price. In the real world we never see straight line demand curves; they are for purposes of illustration only. On the other hand, for small percentage changes in price, a straight line is a fairly good approximation to most real-world observations, but here we're talking about changes of three percent or maybe even six percent, but nothing too big.

If you understand the limitations of economics you can get a lot of mileage out of it. Alas, that is a gigantic hugeous humongous "If."

You make the fundamental mistake of associating demand with "want". I had intended to use it to demonstrate "need".  They are not the same.

Demand can be either need (fundamental necessity) or a want, (optional, luxury, desired). Don, contrary to your assertion, "demand" IS the same as "want". Demand has NOTHING to do with the ability to pay, and J.M. Keynes makes this point abundantly clear with his lengthy arguement that demand (eventually) creates its own supply, because they are equal (inherently) equal. You presume (and argue) that they are.

A reduction in price does not necessarily increase the demand (number of such commodities desired) for a needed good, this is typically only seen with wanted goods.

To illustrate:
You need water. You will not live long without it. The minimum quantity you need is fixed, regardless of the price. This is need demand, and it is fixed, regardless of price. There may also be some additional demand for extra water, above and beyond this needed value, for which price matters.
If the price of water is sufficiently high, you cannot buy any at all, and must go thirsty.  Most will then resort to non-market means by which to secure it.
If the price is sufficiently low, you may buy additional water beyond your need demand, with the extra water being considered a desired demand (as in your example of what various children are willing to pay for gummy bears, very much a desired good, although I had intended to illustrate them as a need demand), or 'luxury' purchase, not a need.
Regardless, the amount purchased is the consumption, which as I have already illustrated is not necessarily the same as the quantity demanded.

You can only consume so much water at a time. Later, you will need more, no matter how much you have consumed in the present.
Likewise, it is difficult to carry or store any "excess" purchased water without either further expenditure (such as hiring someone to carry it for you) or difficulty.
In addition, if the extra water were purchased for "future use", then it is still a needed good as it would then be satisfying a future need, and in this case the extra water would be considered stockpiled inventory.

Petroleum is a needed good, not a luxury item. Hence you see enormous inelasticity in its demand. It cannot be readily bought in excess, even if the price fell precipitously, for even the largest tank farm on earth will hold only very short duration's supply.  You cannot simply "stock up" and bank it.  

No, "demand" and "need" are not even close to being synonyms.

"Need" connotes something to do with human survival.

"Demand" denotes both a willingness AND AN ABILITY to buy goods in varying amounts at different prices.

The concepts are as different as night and day.

Regarding the OPEC behavior: I think it is a combination of both. IMO they can increase production, but they are reluctant to do it because:
  1. It is not that easy and is becoming harder with time
  2. Because they want to maintain the high prices and as you say profit from it more in the future

For political reasons I expect them to change this behavior if oil spikes for some reason.
If a spike happens we all will deal with it.  They can't just add a refiner and a bunch of wells.  It does takes years, so when a bottleneck occurs there will be no producer turning on the tap.  Everyone is running at full bore except maybe Kuwait, but that's not settled yet although it was suppose to be announced last wed/thurs as I recall.
This touches on the most interesting development in the supply side of oil that I have seen in a long time.  Will Kuwait decide to limit their own production based on a percentage of realistic estimates of their reserves? It clearly is in their own best interest to do so, but what would be the fallout across the entire middle east or other producers for that matter?  What would be the effect on peak oil if a couple countries decided to follpow suit? If too many countries jumped on would the world ecomony crash? This deserves a lot more analysis. Another elephant in the room.
I wonder why no one is in the media questioning why the day has come and gone since the new oil minister said he would undeniably make a decision.  I mean even those at the fringes pushing the edge all the time.  No one at energybulletin.net has done a follow up AFAIK.
  It has been said that oil's price action over the past year is more a result of speculative trading than the underlying supply/ demand fundamentals.
  I compared the price action of oil since August 2005 to that of gold and silver to see what the numbers tell us.
 Gold
August '05- $445
April  '06- $725  (high price) 63% advance from August
June 15 '06- $575 (interim low price) 26% retracement from the high
Current Price- $628  9% advance from the interim low

Silver
August '05- $7
May '06   - $14.90 (high price) %112 advance from August
June 15 '06- $9.50  (interim low price)44% retracement from the high
Current Price-$12.20 26% advance from the interim low

Oil
August '05- $67
July '06-   $78 (high price) 16% advance
Current price- $73 8% retracement from the high
   (interim low?)

The price action of these 3 commodities has  been similar over the past year but oils price movement has been much more muted than that of the gold & silver markets. This indicates to me that while there is a speculative force involved in oils price action , the price is more a function of basic supply & demand than investment speculation.
 I think this conclusion is logical because the global oil market in terms of $'s exchanged is huge compared to that of the gold and silver market and less susceptible to the daily push /pull provided by commodities traders.
 IMHO, If the price of oil was as sensitive to trading sentiment as gold and silver are we would see much greater price swings than we currently are.
 

Bingo.  The meme that hedge funds and other speculators have affected the oil price significantly is hogwash.  There is not enough storage tankage available for speculators to hoard significant amounts of oil and then dump them back on the spot market.
I know this isn't PO, but I am curious to see what some of your opinions are on this news tid bit.

http://cbs4.com/topstories/local_story_227132606.html

NASA, we have a problem. A historic film, depicting man's first steps on the Moon, has been lost, including the original recording of astronaut Neil Armstrong's famous "one small step for man, one giant leap for mankind".

Did we really go?

<Did we really go?>
c'mon Tate,,i know you're kidding,,but don't open the door to get that started
So take the bait then.
Does it really matter?

It's not likely we are going back without Nuclear Fusion or "Zero Point energy"?

So it might as well be fiction.    

Ahhh...so many childhood dreams gone.   Over population sucks...if only Hawkins could finds us a planet to go to and a way to get there.   Doh...more fantasy.

Sorry to be dreary,  a bit down today.

=========
It's all about population!

for a debunking of the "moon hoax" see
http://www.badastronomy.com (although site seems to have temporary problem, try a bit later)

very nice site, also has critiques of all the impossible plots and devices in famous SciFi films, debunking of astrology and more

I'm firmly on the fence b/c I really believed we went, but I just wonder what people can come up with to "prove" that we didnt.  It just catches me off that the BIGGEST thing NASA ever did, has been misplaced.  That's moronic and simple inventory control.  That original video is probably the only original footage ever recorded and it's not in some glass case being protected to provide "proof" that we did go.  Again I'm just skeptical and missing originals always sounds fishy.
It may not be playable even if they found it.  It's magnetic tape, which is notoriously fugitive.  Sony did a study on it, and found that even stored in ideal conditions, the magnetic tape starts to de-magnetize in 14 years.  It's been a lot longer than 14 years for this tape.
When was the study done?
A long time ago.  I first heard about it ca. 1990.  Not sure when it was done, but it's widely accepted.  Eventually, magnetic media - videotape, audiotape, floppy disks, etc. - will be revert to the blank state, even if kept in ideal conditions and never played.  

I've seen it happen, with a friend's Starsky & Hutch tapes.  S&H was one of the first shows to come out after VCRs came on the market.  They were wicked expensive, and not everyone could afford them, but some did.  So the '70s was when TV shows first started to be recorded and saved by viewers.

S&H, being a '70s show, was very colorful.  But by 1990, the tapes were not.  They were all muddy brown.  Still watchable, but noticeably drab and dull.

When they finally started airing the show again (presumably with new tapes made from the original film), the difference was eye-searing.

Don't you think they thought all that through when the used the film?  I'm no expert on anything NASA, which is why I really don't know, but it doesn't make logical sense that intelligent people throughout the organization didn't stop to think about saving the only proof of one of the largest accomplishments of mankind.  Instead we're left with recordings off a 14ft screen at Houston.

There is some soul that has been tasked with archiving junk NASA's produces from the rovers to tapes, so wouldn't they quickly backup the only proof of this footage?  When the original account is lost for whatever reason, nothing truly replaces it.  We know all about ancient civilizations, but to this day nothing survived as to why Stonehenge was built for.  There's tons of plausible reasons with astronomical associations, but nothing survived to say this is how we did it and why.  The only original space footage that says we landed on the moon is "lost" so other than everyone telling me it happened what proof do I have since I wasn't alive?  End of stream of consciousness or stream of rambling depending on perspective....

They did save it.  There are numerous copies out there.  

The missing tapes are of interest for historical, not scientific, reasons.

Where are the copies located or where would the information be that verifies that there are copies of the original?  I'm talking the HIGH quality video that Samsara is mentioning.  Where can I access this?
It's in the link you posted.

"I wouldn't say we're worried -- we've got all the data. Everything on the tapes we have in one form or another," Hautaluoma said.
So I'm just suppose to believe it b/c someone says don't worry?  That's no different than taking Aramco's word that they aren't running out of oil anytime soon.  Ok, I'll just trust you.
Well, just think about it logically.  NASA knew the magnetic tapes were fugitive.  Even if they didn't, wouldn't the first thing they'd do be make some back up copies?  Just in case?

They also lent them to a museum to display.  

Would they do that if they carried irreplaceable scientific data?  Of course not.  Heck, I make backup copies of my favorite movies before lending them out.

According to CNN last night, NASA says they have only lower resolution copies preserved.
Can you verify with a cnn link maybe?  This is exactly the crap I'm talking about, but who knows.
It's the nature of analog formats, which is what tapes were back then.

Unlike with digital formats, you cannot make a copy as good as the original.  Every copy will be slightly degraded from the original.  Each generation will be lower-resolution than the last.

But as far as conspiracy theories go...why does it matter?  If NASA produced the tape tomorrow, how would you know it was "real," and not shot on a Hollywood movie set?  Or a copy, falsely claimed to be real?

IOW...if NASA is set on fooling us all, why would they even admit the tape was missing?

But as far as conspiracy theories go...why does it matter?  If NASA produced the tape tomorrow, how would you know it was "real," and not shot on a Hollywood movie set?  Or a copy, falsely claimed to be real?

You could analyze the video in all the places that you can't see.  You need to analyze the guts of the film, etc.  I really don't think it was faked, I just believe there are irregularites that have remained due to the nature of space travel.  However, space is far different than what we understand here so the same rules don't apply up there.  That misunderstanding creates an opportunity to exploit ignorance.

Here you go:
"Armstrong's famous space walk, seen by millions of viewers on July 20, 1969, is among transmissions that NASA has failed to turn up in a year of searching, spokesman Grey Hautaloma said."
http://www.cnn.com/2006/TECH/space/08/14/space.tapes.reut/index.html
Oops, that's not the quote you asked about.
Here you go....This link is not from CNN (they don't offer transcripts of everything said on their broadcast), but it has the same info:
"This would obviously be a big disappointment to Nafzger and the rest of NASA. The tapes contained the highest resolution images of the moon landing in existence. Because NASA's space video system was incompatible with broadcast standards, it retransmitted the live images to the world by pointing a standard television camera at a TV screen, offering lower quality video still available today.
"It was pretty good, but nowhere near as good as we can do today with the digital technology we could use on the original tapes to convert it to broadcast TV," he noted.
If the tapes are located and still in good condition, we might finally see the moon's surface almost as Neil Armstrong saw it."
http://voanews.com/english/2006-08-15-voa79.cfm
Why hasn't this taped been transferred into a new format oh say 20 yrs ago?  The digital revolution began flourishing in the mid-late 80's and I would think someone would have stopped to think, gee it would be good to make the best copy I can since it's digital and all.  But then again this is NASA who forgot to convert metric/english and slammed that expensive bomb into Mars.
NASA's budget has never approached the inflation adjusted dollar values of the 1960s. Today's budget is less than half of the peak budget during the years we prepped to go to the moon. When you are constantly asked to do more with less, something has to go and luxuries like preserving such films, are the things that go.

If you want to blame someone for this state of affairs then look in a mirror (unless you are not a US citizen) because the people that you sent to Washington are the ones that put NASA in the budget situation in which it finds itself today.

I've been voting for 5 years, so it might be your fault, but not mine.  :)
I have not seen anyone say that they have copies of the tapes. What they showed on TV was very degraded compared to the real thing: it was an incompatible format, so they pointed a TV camera to a screen. The people that were in that room say that the picture was of much better quality.

It gets worse: the only machine in existence that can play those tapes was going to be decomissioned in a year.

Information survives by copying. Die copyright die.

Ah, but proprietary is profitable.
Copyright proponents would have us reinvent the wheel every few decades, or better yet, liscense the "technology" and pay royalties every time we used it.
I'll stop beating this horse if you guys do.
Fourteen and a half years ago, but they stored it on magnetic tape...
umm we are talking about the same nasa that lost a multi-billion dollar space probe due to a grade school calculation error. aren't we?
Im pretty sure it happened as claimed.  There are irregularities though and these have opened up Pandoras box for the theories.  That mars lander incident was kinda funny due to it being NASA and all.  They do make mistakes, but whats a few billion dollars compared to the ultimate claim of fame?
my post was more in defense of they just plain lost it.

the problem i see with these things is that anything contrary to what the government says is labeled as a conspiracy theory/theorist and then promptly ignored.
the end result is they all get lumped together preventing people from rationally looking at each and judging them by a case to case basis. This makes it extremely easy to prove conspiracy theorists wrong because they purposely frame the debate in such a manner that they have to prove all of them right to make their case while the government or those defending them only have to prove them wrong once.

Personally the theory that we did not land on the moon is bull.

Kaiser,

Did you ever see the security tape of the lab when all the physicists who made the miscalculation on that probe were fighting? It looked like the cast from Revenge of the Nerds acting out a saloon fight from an old western.

Matt

Did you ever see the security tape of the lab when all the physicists who made the miscalculation on that probe were fighting? It looked like the cast from Revenge of the Nerds acting out a saloon fight from an old western.

I would love to see this video!

i did not know there was one..
Hi tate423. I understand the Japanese are very close to perfecting a telescope that will be able to actually look at the landing base on the moon. That should prove definitively whether we did or did not go. Failing that the Chinese will probably be on the moon before 2020 - 2025.

So this is one controversy that will ultimately be solved.

BTW, has anyone thought that it might have been STOLEN..
if it was they would of probibly been dumb enough to put it on ebay by now.
From what I understand these telescopes will still not answer the question.  The most powerful telescope on this planet can only see down to a distance of (memory) about 250 meters.  Hubble is down to 150 meters, I think, and thus we can't see a few feet across to distinguish the lander and rovers left.

I would be curios to know how powerful this telescope truly is.

The film that was taken was a special format. GREAT quality. There was not a way at the time to send it out to the broadcasting stations live.  

What the public SAW(You and I)  was the image that came from a TV Camera pointed at the Monitor at the space agency.  Grainy, Sketchy etc.

The ORIGINAL was HIGH quality.

Just heard it on NPR(US public Radio) from the engineer who was there.  The tape was stored somewhere and he is trying to find it.  He's 80 something now.

"It was stored somewhere"  my vision is the last scene from Raiders of the Lost Ark and his crate being stored at a gov. site.

NASA's been looking for it (and 700 boxes of other film/data/archives) for over a year now, with no luck. Lame.
Sigh,

Yes the US of A via NASA really did land on the moon. Just go and ask one of the  astronomers who has measured the distance from the moon to the earth with a laser.

Why? Because they bounce the laser off an array that was set up by Apollo astronauts.

try:
http://sunearth.gsfc.nasa.gov/eclipse/SEhelp/ApolloLaser.html

Wikipedia has an exhaustive article about the whole hoax thing:
http://en.wikipedia.org/wiki/Apollo_moon_landing_hoax_accusations

cheers,
BadOS

The MSNBC segment last night was a typical MSM hit piece.  Joe Scarborough had John Stossel versus Megan Quinn and Tyson Slocum.

The promo consisted of a clip from the "Mad Max" movie.  The intro was taken from End of Suburbia, with audio clips of Kunstler and Heinberg.

Megan said that we are probably at the half way point for conventional oil reserves, and that we should hope for the best while planning for the worst.  Tyson said if we hadn't peaked, we were certainly close, and he listed a list of actions.

John Stossel said that "Megan's Group" thought that we had peaked in 1970, and that we have lots of coal and nuclear energy sources.  He said that as prices go up, lots of new energy sources will be brought on line.  His clincher--in response to Tyson's point that lots of our oil comes from unfriendly places--was that Shell estimates that the Canadian Tar Sands alone have enough oil to supply the US for 100 years.

Note that we had all of the elements of the Iron Triangle:  A media guy, Stossel, quoting a major oil company source, Shell, while advertisements, largely by the auto/housing/finance group, ran between the segments.

The net result was to reassure Americans that they can and should proceed with their plans to buy a SUV to commute to and from their suburban mortgages.

"Iron Triangle" Explanation:  http://www.energybulletin.net/15126.html

http://www.bloggernews.net/static/archive000002088.html
Economist Magazine reports Saudi oil production can continue unabated
August 14, 2006

Excerpt:

 In its August 10 edition, The Economist magazine asserts that Saudi Arabia can continue producing oil at its current production levels for 70 years, without having to look for another drop. Further, the magazine claims that the nation could find "plenty more if they look", calling for privitisation of national oil companies to help increase oil production.

 The language is provocative - the world has plenty of oil, and only requires sufficient investment and exploration to find it. This is a line that The Economist has held for some time, certainly since before its now infamous March 1999 issue proclaiming that we were "drowning in oil" and featuring a prediction of US$5 per barrel. That issue was followed by an embarrassing retraction in December of that year, as oil started its steady climb. It now sits above US$70 per barrel.

Even if you agree with them that S. Arabia can do that for 70 years...where does the extra supply come from to cover the extra demand from India and China?  Does that lower the 70 in half to 35.  So, then, what are we going to do in 35 years.

That is my thing. Why bother to argue with people that the supply is going to go down.  Just ask them where the increase is going to come from as the world demand keeps growing and growing.

And yes, I usually get the answer that "science" will figure it out...forever and ever...and we will never have to stop growing.

Rick D.

Yep.Of the total global oil consumption to date, 50% has been consumed since 1985. IMO, eventually China's economy will be the largest ever seen (in real dollars) for any single country, far surpassing the USA's peak.
70 years...

1.02^70 = 3.999
3.99*85MBPD = 339.96
339.96*365 = 124GB/yr

hmmmm...

Look at the name of the magazine. That should tell you all you need to know right there. Wasn't it Friedman who stated that economics cannot know that oil is a finite resource and that economics doesn't even care (or something close to that effect)? The biggest failure of too many economists is that they totally divorce themselves from reality, then build great houses of theoretical cards which fail in the real world. My other quibble with economics is how much of it is really science and how much of it is solipsism? ;) How many testable hypotheses has economics given us? How often are economic hypotheses verified or refuted by experimental data? Too often economics amounts to circular logic finding a way to convince the speaker that he was already right.

Note: I do find value in good economists but they seem to be few and far between.

Thomas Friedman is a pretty good economist. He is worried sick about oil, as he states clearly in his best-selling, "The World is Flat."
It's a social science.  How many testable hypothesis has sociology thrown out?  Econ isn't science it's understanding human nature.  Since we have limited understanding of human nature econ is thus limited.
Sociology has a number of testable and tested hypotheses; some parts of sociology and cultural anthropology are sciences. Specific example: Matrilineal societies tend to be horticultural, and change to a market economy (either agricultural or industrial) destroys matrilineal kinship systems.

Some of economics is science, much of it is not.

BTW, most economists hate and despise sociologists, because sociologists say that we do what we do pretty much because of sociological variables such as norms and values and social institutions such as family and religion and roles and statuses and forms of social control. Economists postulate rational humans, and it is from this axiom that mainstream economics gets into humongous trouble.

For example, most (not all) economists say that the goal of a corporation is to maximize profits. O.K., then explain corporations in the airline industry;-)

The best sociologists, such as Max Weber, take economics seriously, and the best economists, such as Nobel Laureate Herbert Simon, do not fall into the mainstream errors. Milton Friedman is much more of a sociologist than most people give him credit for--see for example the readable book, "Capitalism and Freedom" that he wrote in collaboration with his economist wife, Rose.

For people interested in work at the boundaries of economics, anthropology and sociology, I recommend Foundations of human sociality : economic experiments and ethnographic evidence from fifteen small-scale societies edited by Joseph Henrich ... [et al.].  Oxford ; New York : Oxford University Press, 2004.  Various researchers played some standard rational actor games using real local currency, and found that predicted Homo economicus results were not replicated in any of these societies.  General conclusion - social context makes a huge difference in individuals' "rational" action.  Economics is a social science, whether people in or out of it like it.
Not a good idea to play telephone.
The original Economist article (here) says:

These companies are certainly sitting on a reassuring amount of oil. Saudi Aramco's proved reserves alone could keep the world supplied for several decades. But it is only exploiting ten of its 80 or so fields, so will be able to pump at the present rate for about 70 years even if it never discovers another drop of oil. In fact, Aramco and other NOCs are likely to find plenty more if they look, since their territory has not been very thoroughly explored.

Pay attention to the hedge words ("likely") and actor-unspecified language (who exactly "will be able to pump at the present rate" and pump what? water?) I can keep the world "supplied" all by myself also. Just dole out a drop a year from my fictitious oil can (my proved reserves). It won't match demand. But it will keep the world "supplied".

Actually, the "actor unspecified language" looks like perfectly good modern British (English) grammar to me - they leave stuff out of their sentences in that manner all the time. There's not a scintilla of doubt in my mind that the intended actor is Saudi Aramco. OTOH, whether Aramco will actually be able to deliver oil at their current rate for 70 years is, of course, another matter entirely.
I really don't think you can blame it on the MSM.  As long as Peak Oil is "about" survivalist communtities and die-off, it carries a big "kick me" sign on its back.

I mean, how the heck can a TV producer turn down an opportunity like that, given that PO folks do believe that stuff?

CNN managed to turn it down, somehow.  Their peak oil special wasn't perfect, but it wasn't a hit piece, either.

The problem is not with us, it's with Scarborough Country.  That show is only one step up from Bill O'Reilly and Rush Limbaugh.  

I think the problem is with these types of shows in general. they are merely entertainment.  Thats the reason they can spend hours talking about the ins and outs of the natalie halloway case, and less than 5 mins on something that actually affects all americans.  The goal of those who attend these circuses should be to peak public interest.  People who are inclined will find out more info, and as they do, most will demand to know what is being done about it.
Good point.  It's entertainment, not news.  And the kind of people who watch shows like that don't want to see charts and graphs, or hear any logical arguments.  They want to see some librul verbally beaten up for their amusement.  

Next time, we should send the most "out there" doomer we have.  At least it will get people's attention.  If that's the idea, then Roscoe Bartlett types aren't going to cut it.

Well, the doomiest doomer is Jay.  Which reminds me, I don't recall seeing a synopsis of Nate's(?) or Alan's(?) meeting with Jay a few weekends ago.

I would also argue that doomers don't give the PO movement a bad name.  Most of us don't try to convince anyone about anything.  What does give PO a bad name is the lack of a consistent view within the community of what the data show, i.e., sharp peak, undulating plateau, rapid decline, slow decline, timing, etc.  Further, there really isn't a consensus as to the proper approach to transitioning away from FFs and whether it is feasible in reality, especially considering the Hirsch Report.

What does give PO a bad name is the lack of a consistent view within the community of what the data show, i.e., sharp peak, undulating plateau, rapid decline, slow decline, timing, etc.

You know, you're probably right.  The right-wing spin machine knows this, and uses it to great advantage.  It doesn't matter what you say, as long as you keep saying it.  If you're consistent, people will believe you are correct.  

Unfortunately, reality is messier than that.  I'm reminded of the early days of "creation science"  movement. With evolution under attack, some scientists suggested that the best thing to do was rally around the most conservative, mainstream flavor of Darwin's theory.  "Just until this blows over."  

Probably would have been good PR, but would have been terrible science.

"It doesn't matter what you say, as long as you keep saying it."
Some might call that "on message" and some might call it media discipline. I call it Stalinism. Interesting the best Stalinists are now the Republicans.
Unless you count those who think everything is explained by the market and scream when you tell them that that's a political position.
What does give PO a bad name is the lack of a consistent view within the community of what the data show, i.e., sharp peak, undulating plateau, rapid decline, slow decline, timing, etc.

We have a bit of common ground there.

For what it's worth, I don't think consensus has to mean a single percent rate of depletion. It be as simple as saying "estaimtes from oil industry experts(*) range from X to Y percent, and naturally people looking at the higher percentages see more dire outcomes."

* - i know, groan.
I am not a scientist, but read this blog with interest.

I have run a number of local political campaigns and so my comments are from the persuasions perspective.  Much is in how things are framed.

In my thinking about this --  The immutable fact is that oil is a finite resource and WILL be depleted.  The question is when.  

So when I try to talk to people about it, I say that... and then go on to say that no matter when it is, we better be taking steps now to deal with the inevitable dislocation that will come with decreasing supplies of cheap oil and then all oil.  And try to convince them that what could that hurt to be prepared.

I think a lot of people want to do the right thing, but no one is telling them what to do.  I try to ease them into it with suggestions on conservation, etc.  The whole scenario is further complicated by Climate Change and the interconnectedness of the two issues.  With so many people scientifically illiterate it is an uphill climb (particularly when they care more about the American Idol that life on this planet.)

Often the stuff I read here is quibbling about trees and missing the forest.

And I am not ready to learn how to skin a deer and tan his hide to make clothes as one poster suggested... I expect that the clothes that currently hang in my closet will last me until I die if they have to.  Just because there is peak oil doesn't mean that all the things we have just disappear.  

So there you have a laywoman's view.  

And I am not ready to learn how to skin a deer and tan his hide to make clothes as one poster suggested... I expect that the clothes that currently hang in my closet will last me until I die if they have to.  Just because there is peak oil doesn't mean that all the things we have just disappear.  

so how are you going to teach your kids and grand-kids. your cloths may last as long as you live but how are you going to cloth them?
hope for the best, prepare for the worst.
you should at least learn to do it so you can show your kids how to supplement their tattered clothing that was made by children in china and shipped overseas.
and again, a tree

and in my opinion a sidetrack that detracts from the deadly seriousness of the issue.  

What each of us has does not just disappear and it doesn't disappear overnight.

No kids or grandkids, but I would first teach them to knit and weave before skinning.

to ignore a tree and focus on the larger forest is to run into said tree.
either way my point stands, go out and learn now because you will not be able to later. chances are the people in your area  that already will know might die during what will happen during the collapse or the library you have been meaning to get the information might be ransacked for fuel during a cold winter.
"[To] focus on the larger forest is to run into said tree."

Only if you're running.  Each of these examples is like a frenetic, running scared response to 'what if I lose this?', 'what if that's suddenly gone?', which only supports her point.

She's not advocating a passive, sit by and wait response, but one that says you do have to stop, look carefully at the whole scene, and really think about which actions and preparations you really have to enact, while the last-minute crowd is fighting over the peanut butter tubs and ammo.

Yep, if you think it's going to get that bad, teach them to grow hemp and flax, learn to spin and weave. Our ancestors were raising both of those and making cloth from them more than 5000 years ago, hemp more than 10,000 years. Trade cloth (of various weights), thread, string, rope, and paper for leather to use in those places that cloth just isn't durable enough.
"What each of us has does not just disappear and it doesn't disappear overnight."

True enough, unless stolen or we have to move quickly and leave some things behind. Although I hope things here don't get that bad, "prepare for the worst...." I currently work in the "Yacht Management" business and when I'm doing hands-on work my clothes can wear out pretty fast...could be more manual labor in the future for many of us too.

As part of my PO preparation, with the idea that this business might not be around if the economy gets real bad and with "essential needs" (food-shelter-clothing) in mind, I recently purchased a heavy duty sewing machine and am learning to sew boat canvass. Might be a useful skill if there's less yacht work and more clothing/tent work down the road. In the meantime, I have a new hobby.

Best,

Brad

Speaking as an economist and a sailor, let me prognosticate: The demand for sailboats and hence for those who service them will increase.

On the other hand, everybody and her sister-in-law seems to want to become a sail maker. It is a noble profession, but from those sail makers I've known there is no money in it except at the very very top echelon's of sail makers for the most elite racing yachts.

On the other hand, if you can sew awnings, sail covers, biminis, etc., then you may have a good trade.

Well, the doomiest doomer is Jay.  Which reminds me, I don't recall seeing a synopsis of Nate's(?) or Alan's(?) meeting with Jay a few weekends ago.

Actually, it was Nate and me. I spent a weekend there, but Nate spent a whole week with him. I am hoping Nate finds time to write something up.

You're right. I think Megan Quinn expresses this herself in this article:

http://vtcommons.org/node/551

As she says,

...we are not preaching to the choir, we're preaching to the preachers. In fact, we're creating a community of preachers that is pioneering a new culture. Our tool is a different kind of "demonstration," one that doesn't fight the problem but shows the solution. We are creating a social movement through example, not protest.

So David's best strategy may be ignoring Goliath altogether. Instead, he can use his stone to lay the foundation of a decentralized, low-energy infrastructure that can actually be sustained and will, in fact, flourish into a post-peak oil era as long-distance transport and energy transmission decline.

It's harder to post "kick-me" signs on those who lead by example.

I was probably a typical viewer in that I didn't know Ms. Quinn, and didn't know where she stood.

IMO the main thing that came through was that when she was presented with the stick and mud houses and composting toilet crowd, she wouldn't separate them from peak oil.  She allowed the suggestion to stand that those were the peak oil believers.

It would have been more affected to say "A lot of people are attracked to the peak oil cause, but peak oil is not simply a hippie or survivalist movment.  Congressmen, investment bankers [...] find realistic concerns in peak oil."

pfft "effective" of course.
Speaking of congressman, I think Mr. Bartlett would be an ideal candidate to run the talk show circuit.  I still think that his presentations to congress were some of the best introduction to the peak oil crisis that we've seen.  I'd imagine its kind of hard to tie a conservative congressman to hippies and survivalist communities.  I think the real danger is if Peak oil gets caught up in t he same political storm that global warming is in now.  At that point, facts will cease to matter.    
I think its already too late for this. Facts already cease to matter. Even within the PO aware community there are sharp disagreements about where we are headed and why.

Frankly, I'm in the stick and mud houses crowd, not because passing peak demands it, but because the momentum and strength of our current cultural values make any significant accomodation for a reduced energy consumption lifestile extremely unlikely. It isn't the lack of oil that will take us to S&M houses, but the cultural and social conflagrations we will go through as we try to avoid the reality.

In my book, anyone who is looking for a "solution" to PO is barking up the wrong tree. PO is not the central issue - the issue is the growth values that come intertwined with global capitalism.

Well said, and it pretty much sums up my view.

Which the popularity of shows like Scarborough Country only reinforces...

IMO the problem with "growth values" is much too general to lay at the feet of "global capitalism".  If you look back in history, virtually every economy of any stripe - capitalist, socialist, communist, liberal, totalitarian, you name it - has had at its core the notion of interest-bearing loans.  This single fact spells disaster over the long term, because it requires continued overall economic growth to make the mechanism work.

Mankind has shown a hard-wired propensity for growth, in population (though this can show local and regional declines) but more importantly in per-capita consumption.  There are precious few examples of per-capita consumption being reduced in the absence of resource shortages.  This serves to swamp any mitigating effect of reduced population growth.  Combine this aspect of human nature with a global economic system that has an exponential mechanism at its core, and you get gloomy predictions very quickly.  It would be nice if it were just demon capitalism that is at fault, but I strongly believe the problem is more fundamental than that.  Of course that doesn't speak against your argument that there is no "solution", but rather strengthens it.

Here I'll drop in another plug for William Catton's remarkable book "Overshoot".  He makes an utterly persuasive case that the problem is so intrinsic that no amount of fiddling at the edges will improve our prospects.

If you'll reread what I wrote, I never claimed that there was some one to one correspondance between growth and global capitalism. That said, the particular form of single global economic system we now have is responsible for more growth orientation than any system ever previously existant.

As for the condition of "human nature" I'm afraid you may have succombed to western enlightenment version of history where we move from Hobbes "state of nature" to civilization. The fact is our ancestors survived quite nicely for 90,000 plus years without a growth ethic. Sure they were poor by our present standards - but isn't that the point?

Do you believe it is a consensus peak oil position that economic (as opposed to energy) growth is a bad thing?
An economist might ask you to first define growth and further illustrate what assumptions you are working with to determine that economic growth is bad.  Then he'll tell you your assumptions are wrong and walk away rambling something about ceteris paribus.
What if I'm quick, and ask him first? ;-)
He'll say, "pull up a chair, this might take a while."
If you ask an economist a question, you will likely get a clear answer. Possibly a wrong answer, but at least a clear one.

Economists know that GDP does not measure human well-being; economists know that and admit it. The main reason to focus on GDP is because of the close link between growth in real GDP and growth in employment.

In societies where income is tied to personal production, then GDP will continue to be a key concept. However, as there are more and more transfer payments (as we find in all advanced countries, such as those in Europe and the U.S. and Canada), then the link between income and production is weakened and stretched.

Hey, I don't work. But I get a decent income because society has set it up that way--fine with me, and there is nothing wrong with me going to Jamaica or Tortola for a sailing vacation from Social Security and Teachers Retirement Association pension income. The problem of income distribution is closely linked to almost all other core questions in economics and sociology.

No, I don't. That was my point. There are many within the peak oil aware universe who really only see this as a technical issue.
Note that my post is attached to GliderGuider's post, which had the closing:
Here I'll drop in another plug for William Catton's remarkable book "Overshoot". He makes an utterly persuasive case that the problem is so intrinsic that no amount of fiddling at the edges will improve our prospects.
No, I certainly don't think it's a consensus position.  I think it should be, and I think that an ecological analysis points in that direction, but that of course is just my opinion.

The only consensus position I can find in the PO community is that there will be a production peak at some point.  Beyond that, all bets are off.

Why can't we just take the Japanese example (economic growth with a reduction in total oil use) as confirmation that the connection can be broken. I suggest that the oil and economic growth binding is common because it works, with cheap oil. Expensive oil, or oil shortages, can clearly change that relationship.
I have no doubt that the connection with oil can be broken.  But if you revisit the Japanese example, you'll find they did not break the connection with energy in general, nor with other resource usage.  They are still modern, techno-industrial human beings after all.

I maintain that due to what the Club of Rome calls the "world problematique" we are in for a very hard time. Humanity is facing a multidimensional set of challenges, all of them intertwined, and all of them having the simple notion of population growth at their root.  "Solving" the oil linkage doesn't address any of the dozen or so other problems, though solving it is of course preferable to not solving it.  IMO an ecological perspective is essential to understanding what's going on, which is why I keep plugging Catton.

In "peak oil" that's all it takes.  My opinion is that discussion of "peak energy" is futile, because the projected dates put it out too far beyond our ability to make rational technological prediction.

(to tell me about "peak energy" you'd have to be able to tell me about the final EROEI of thin film, nanotech, or concentrator solar cells, 50 years out.)

I agree that the notion of "peak energy" is pointless, which is why I never use such an idea in my arguments.  If peak oil on its own doesn't get us then peak energy certainly won't.

That's not the same as saying we'd be out of the woods, but if we could successfully transition away from petroleum we'd at least be able to turn our attention and energies to any of the other dozen potential civilization-busters lurking in the wings.

That seems sensible to me.

Do we have a consensus on this?

No consensus for me.

if we could successfully transition away from petroleum we'd at least be able to turn our attention and energies to any of the other dozen potential civilization-busters lurking in the wings.

Well said...
But this is precisely where it hurts, "any of the other dozen potential civilization-busters" !
The true problems are population, growth and diminishing returns.
Peak oil is only the most pressing problem right NOW (short of GW which is a somewhat different kind of beast).
Even stabilizing population and growth is no guarantee against the vicious side effects of the "low hanging fruit" preference.

John Browne himself admits this preference :

Companies work by prioritising what they do. They take the easiest steps first - picking the low hanging fruit - and then they move on to tackle the more difficult and complex problems. That is the natural business process.

Why not looking for a more general approach?
Having to chase next for the "other dozen potential civilization-busters" will only be more hellish than peak oil (due to the very efforts and ressources used to "solve" peak oil).

Lasciate ogni speranza voi ch'entrate.

The E-ROI of renewables (like wind, solar, etc)is high enough now, and rising.  Has anyone suggested that the E-ROI of renewables (like wind, solar, etc) might drop in the future?
Why can't we just take the Japanese example (economic growth with a reduction in total oil use) as confirmation that the connection can be broken.

You have to be a little careful with that example. I don't think many people want to emulate the Japanese economic experience over the last decade. We could say the same thing about Russia, or even Europe. Their consumption has fallen, or not grown, but their economies have collapsed and not shown that much growth, respectively.

I agree with your point, but the choice of examples is difficult when people assume greater growth is automatically better.

I don't think so.

I don't think there's even a consensus that energy growth is a bad thing, although it's a common idea.

The only consensus is that fossil fuel growth is a bad thing.

Not true; the growth in energy consumption will lead to more ecological destruction. How much can we take?
hmm.  Fossil fuels certainly cause ecological destruction, but how do windmills or solar panels do that?
They do it indirectly, by supporting a continuation of the consumptive patterns we have already established.  It's not just fossil fuels that cause ecological devastation.  There is also water and soil pollution related to industry and agriculture, soil fertility depletion, fresh water depletion, the depletion of ocean fish stocks, massive extinctions due to habitat loss and pollution, and the general loss of biodiversity.

All of these will continue in the absence of fossil fuels if we simply replace our energy sources.  In the long run, the main problem that fossil fuels cause is global warming. However, even if we get a handle on that there is still plenty of ecological devastation to go around, simply due to our numbers, and our consumption imperative.

The solar folks I see are also doing big efficiency and conservation moves at the same time.  A SunFrost refrigerator is expensive, but much cheaper than a solar system to support "a continuation of the consumptive patterns we have already established."
Absolutely - most energy-aware people in the first world are doing conservation or outright powerdown.  The majority of global society does not fall into that category.  They're either not energy-aware, or not first-world.

And I agree that finding a whole new solar system would be an expensive solution to the problem ;-)

There is also water and soil pollution related to industry and agriculture, soil fertility depletion, fresh water depletion, the depletion of ocean fish stocks, massive extinctions due to habitat loss and pollution, and the general loss of biodiversity.

Exactly, Peak Water soon!
Cost of water shortage: civil unrest, mass migration and economic collapse

Of course given the names in the study (Shell, Coca-Cola, Procter & Gamble, Cargill) I expect the conspirationist minded to howl "scare propaganda" but nevertheless...

Have lemurs shown a hard-wired propensity for growth?  Bobcats?  Algae?  Most populations find a dynamic equilibrium with their ecology.  I agree that all of our historical economies have shown such signs of growth, but I disagree that this is fundamental to our species.  In fact, most humans in most places at most times have not shown this tendency at all.  The kind of complex society that does—and they are all complex societies based in agriculture—is an extremely novel thing in the history of our species; that's a perspective I think we need to bear in mind.
Have lemurs shown a hard-wired propensity for growth?



I like to move it move it!
Catton describes the ecological notion of a "climax community" that has dynamic equilibrium based on resources that are continually available.  He also makes the point that any  "detritus ecosystem" - of which mankind's use of fossil fuel is virtually a canonical example - will exhibit overshoot and die-back.  He uses algal blooms as an illustration - they grow prolifically using detritus nourishment, then die back when the food is gone.  This can happen on a yearly cycle due to annual replenishment of the food source. If the food source is not replenished, as is the case with fossil fuels, the cycle can only happen once, or at least will reoccur on such a long timescale as to make no difference.

On the question of stable human societies, I would argue that they are an example of climax communities that are inherently limited by the energy available in their environments. As such they will exhibit a constant rate of excess births and excess deaths.  As people move into more energy-rich environments, or learn to exploit energy sources previously unused, they have always always grown both population and consumption to the limits of their new circumstances.

And yes, lemurs and bobcats follow the same laws.  All species will grow if the excess death rate is reduced, because they all exhibit excess births to compensate for such things as accidental deaths, resource scarcity and predation.  It's a survival mechanism that results in rapid population growth if the excess death rate is reduced.  Humanity is in no way different, no matter how much  pride we might take in our exceptional reasoning ability.

Would you agree that humans have voluntarily reduced their fertility rates from about 5, 50 years ago, to something very close to replacement now (about 2.6), and that this decline shows no sign of stopping; that most of the world is at or below replacement; and that this has been a result of affluence and education, not resource limits?

I'm talking about fertility rates, of course, not absolute growth rates, but fertility rates tell you about people's ability to choose not to have children, and eventually will reduce absolute growth rates.

I certainly wouldn't.  First World fertility rates have dropped, not voluntarily, but because the marginal return on child-rearing has dropped.  Our society is more complex, so children cost more, and provide less return.  In the Third World, the marginal return on child-rearing remains high, and so fertility remains high as well.  Since the First World is dependent on the Third World, modernization is a trend that can only go so far, so the fact that our overall, global fertility rate continues to rise in lock-step with our food supply does not seem terribly likely to change.  Individuals may make choices, but I fail to see any evidence for voluntary action in the changes to groups.
For some of your comments, see my later posts.

" the fact that our overall, global fertility rate continues to rise in lock-step with our food supply"

Fertility rates are falling, not rising.

Define "fertility rates," because this contradicts the data I've seen.
Fertility rate is defined as the average number of children per woman.  So, a theoretical replacement rate would be 2 children, one for each parent.  In practice the replacement fertility rate is defined as about 2.1, to account for infant and child mortality.

This rate has been relentlessly dropping for the last 50 years (It peaked after WWII in large part because of the introduction of public health practices in the 3rd world which suddenly dropped infant and child mortality rates).  It was around 5 for the whole world. In 1992 it was 3.0, and in 2000 it was 2.8, and in 2005 it was 2.6.  It's expected to drop below replacement relatively soon for the whole world.  At that point absolute growth will continue because of a demographich overhang: a large young generation which which will replace itself, after which in about 2050 total population is likely to hit around 9 billion, and start falling.

The US is right at 2.1, and would be pretty stable if not for immigration. Japan is at about 1.4 IIRC, and is expected to start falling in 2007 in absolute numbers (the Japanese are kind've alarmed: their longevity continues to increase, and their birthrate continues to fall.  They hate the idea of immigration, but they like early retirement - something has to give.  Probably the early retirement, which is not so bad).

That is nonsense Jason. I am having a baby in October and such a decision has absolutely nothing to with economics. Nick is spot on here. We will try to have 2, not because we can't afford to have 4 or because we can't afford to not have 4, but because we don't want more than 2 for non-economic factors. It is obvious that as birth control techniques and affluence in general has spread population growth in those countires has (IN GENERAL) fallen despite increasing life expectancy.  
"Fertility rates are falling, not rising."

I meant to say:

"Overall, global fertility rates are falling, not rising."

I'd add, the've dropped from about 5, post WWII, to about half of that (2.6), and show every sign of dropping to replacement of 2.1 and continuing to fall below that.  That's what has happened basically everywhere in the world except Africa and the ME.

What about India and China?  And "except for Africa and the ME" is discounting a pretty significant part of the population there.  "All the data agrees with me, except for the data that doesn't"?  I specifically said that these numbers come from willfully ignoring the Third World, and why that's simply not legitimate.
The figures I gave are for the whole world, including Africa, ME, China and India.

China is at or below replacement fertility rate.  India is still above, though some regions have gone below.

Africa and ME is perhaps 15% of the world's population.  Their still-high numbers are countered by even lower numbers elsewhere.

Try these stats...
http://www.un.org/esa/population/publications/WPP2004/wpp2004.htm
China, IIRC, is 1.7 due to forced sterilization for many years.  India is above replacement rate, and will pass China by 2050. FWIW, the "medium" UN projection of approximately 9 billion by 2050 scares the hell out of me, given the resource depletion and environmental destruction we've seen with 6.5 billion.
Yeah, I'd be a lot happier with less than that.  At the very least we're going to get a lot more species extinctions, and there's a decent chance GW will flood Florida and Pakistan...sigh.
i call bunk on that claim.
why? it's statistics statistics can easily be made to always come out in favor of what you say, all you have to do is control how many people you survey, who you survey, or how you survey.
These are not survey based.  They're based on public health statistics gathered by PH departments in cities, counties, states and countries around the world.  They come from birth certificates and death certificates.  They are very concrete.
they are still statistics, it can easily be made to look how you want just by picking and choosing which country's you look into.
hhmmm.  Well, these stats are for the whole world.  Beyond, I'm not sure how to respond.  Do you have specific examples?
Yes, we have reduced our overall fertility rate.  Was it voluntary?  I think the right answer is, "Partly, sometimes."  There are several theories about why fertility rates have dropped. One is the Demographic Transition theory you cite, another is the Economic Opportunity theory put forward by Virginia Abernethy, yet another is that education and empowerment of women is the key.  I think it's likely a combination of all three factors are at work.

If we were able to stop all further births and maintain our population at 6.5 billion for the next 25 years, would that help our predicament significantly?

" Was it voluntary?  I think the right answer is, "Partly, sometimes.""

Well, what I'm trying to get at is that the "overshoot" model assumes that birth rates never fall (until malnutrition, perhaps), and that death rates rise at the end due to resource constraints.  In fact, we have falling birth rates due to conscious decisions, and falling death rates. Completely the opposite of the overshoot model.

Why is this important?  Because the overshoot model suggests that our growth is out of control and will stop only due to coercion by resource limits, when the facts suggest that it is in some sense under our control, and that growth is slowing due to reasons entirely unrelated to "overshoot".

"If we were able to stop all further births and maintain our population at 6.5 billion for the next 25 years, would that help our predicament significantly? "

Thats's a whole different question, and could be phrased as:  While humanity may have put the brakes on population growth for reasons unrelated to resource limits of growth, is it possible that we've done so too late?

That's a good question.  I think the answer is clearly "No, if we handle things properly", but that's a big if.  It's clear that we have our work cut out for us, and no time to waste.

Do you mean to ask: "Would aggressive pop control measures be a good idea?"?

Yes, aggressive population control measures would be a good idea.  Yes, a hundred times yes, even to the draconian outer limits. It won't fix the problem, but it would help.

As to "Are we in overshoot?", my understanding is that overshoot isn't defined by birth and death rates, but by current population level relative to long-term carrying capacity.  In other words, I believe that a population can be in overshoot before the essential resource is exhausted, and this can come about either through continuous population growth or continuous overconsumption of the resource.  As soon as you know that a scarce, unsubstitutable resource can limit or reverse the population's growth you are in overshoot.  Once the resource limit bites, you are onto the crash side of the curve as opposed to the growth side.

While we haven't hit the resource limit yet, we do know that one will probably occur.  The fact that we face multiple potential resource limits of which oil is just the closest and most drastic makes the probability of hitting "a" resource limit much closer to 1.  That makes it overshoot as I understand it.

hmmm.  Well, what I was trying to come to a consensus on is this question:  " Is population growth coming to an end, albeit slowly, and is this happening for reasons unrelated to overshoot?.

I think the answer is clearly yes.  I think it might be helpful to come to a consensus on this, as some posters on TOD seem to think otherwise.

Now as to the question of whether we are in overshoot as you define it:  that's what I was trying to address in my second thing about whetther it's too late.  I guess I simply say I'm more hopeful than that.

Well, what I was trying to come to a consensus on is this question:  "Is population growth coming to an end, albeit slowly, and is this happening for reasons unrelated to overshoot?

No.  

I think the answer is clearly yes.  I think it might be helpful to come to a consensus on this, as some posters on TOD seem to think otherwise.

How can we come to a consensus when there's clearly strong disagreement on the issue?

Well, I thought there was a possibility of agreement with the original poster.  I've given a fair amount of info for my logic.  What are the reasons you disagree?
China's population growth is slowing because of their one-child policy.  Often brutally enforced.  The one-child policy is clearly due to overshoot.  China has suffered regular dieoffs in the past, and is painfully aware of the consequences of overshoot.  They are the only major country that maintains large stores of food, in case of famine.

Population growth worldwide is slowing, but it is not ending.  Having three kids instead of four is not the end of population growth.  

Moreover, I think peak oil will unwind many of the factors that led to the slowing growth rate.  If people are forced to go back to farming, suddenly kids will be free labor again, instead of a burden.

Even in China, rural families are exempt from the one-child policy.

"China's population growth is slowing because of their one-child policy.  Often brutally enforced.  The one-child policy is clearly due to overshoot.  China has suffered regular dieoffs in the past, and is painfully aware of the consequences of overshoot.  They are the only major country that maintains large stores of food, in case of famine."

All true, except that their policies are not caused by hitting a resource wall, but by the chinese planning in order to avoid hitting a resource wall.  Those two things are very different: they demonstrate people are not yeast, that they plan ahead and don't just grow until resource constraints stop them by raising death rates.

It's conceivable that it's too late to avoid hitting a catastrophic wall, but we're definitely not yeast.

"Population growth worldwide is slowing, but it is not ending. "

If you define it as exponential growth with no end in sight, it actually is ending.  See my other posts in this drumbeat.

Nick, you need to be very careful with your language here. It is the rate of population growth that is slowing. Population growth continues. Indeed, because of the age of the population, even if we dropped to replacement level birth rates as of today, the population would continue to grow.
If you look at my earlier posts, you'll see I maed careful distinctions between fertility rates vs absolute growth.

Yes, the general consensus in the public health/population planning community is that population growth is likely to continue, at gradually falling rates, for another 40 years or so.

I think GliderGuider has just volunteered for "population control". Anybody else want to volunteer?
Hi Nick,

Something I don't understand about this overshoot:

6.5 billion is a big number, people cite that as "proof" that we are in overshoot, as if it is self-evident.

Well I think that 500 million is a big number. The people who call it overshoot might have said the same thing if we were at 500 milloin people. Who know's what number is too much. I can come up with some other big numbers:

How many square metres is the surface of the earth - a lot - does that mean it is to big?

How many insects are there on the planet? More than people, probably. Does that mean the insect population is also in overshoot?

I think for overshoot to have any credibility, you have to come up with a credible, objective way of measuring what is the capcity of a planet? I think that is almost impossible to do, so presumably people who call it overshoot are just talking bla, bla, bla?

Can anyone here derive the capacity of the planet from a set of sensible objective starting principles?

It's not the numbers that determine whether an organism is overshooting its environment, of course, but whether its environment can support both its resource usage and waste production.

If you would really like to get a quantitative look at the situation regarding humans, take a look at the first three chapters of the book "Limits to Growth: The 30-Year Update".  In them you will find your request addressed explicitly, with all the assumptions, techiques and numbers laid out for your delectation.

If you are interested in being able to do any critique beyond a drive-by, I'd recommend the book as presenting a dispassionate, objective and above all quantitative look at the question of overshoot.

Interesting, check out the "Customers who bought this item also bought" section of the "Limits to Growth: The 30-Year Update" page:

http://www.amazon.com/gp/product/193149858X/103-8763986-5949409?v=glance&n=283155

Well, well.  There seems to be a theme developing here...
I know that I shouldn't judge before reading, but I am deeply skeptical about these kind of estimates. From experience in scientific research I am sure that a sensible prediction for the capacity of a complex system like earth would be almost impossible. We can't even get the weather right three days out.
There are individual overshoots that are observable today.  I think the state of our oceans is a big one.  We went from thinking they were limitless, to arguing about limiting our actions, to general agreement on sustainable practices ... too late.  We overshot healthy oceans with sustainable yields, and no doubt in part due to human population pressure.

... add 'em up and I think there is a global overshoot going on.  It's just an open question in my mind whether that leads to a more monochrome future with increasingly reduced biodiversity, or a genuine crash.

This group has had scientific credibility for thirty years now.  They don't so "predictions", rather they present the results of computerized models - simulations - with a variety of input conditions, assumptions and influences.  The variety of results they generate leaves a fair bit of room for interpretation.  Since you mentioned weather, what they are doing bears more resemblance to climate modeling than weather prediction.

Try it, you'll like it.

Suppose the earth can sustainably support twenty billion people. Does that mean we should have no concern for population growth now? I think not.

Why not?

Because Malthus was right. Look at Bangladesh or Pakistan or most African countries--mass misery primarily because of overpopulation.

The ancient philosophers Plato and Aristotle thought that population policy was of prime importance to good and sustainable societies (by which they meant city-states).

In ancient Rome, proletarians got their name because of fertility. Having lots of kids makes your society poor. Ask any Bangladeshi. The tragedy of the commons is that the way incentives are set up in agricultural societies it may benefit a family to have many (poor) children so that each can contribute a pittance to the support of their elderly (i.e. over about age forty-five) parents.

What would be an ideal population for the earth? Based on contemporary technology I'd say that it would be far below five hundred million--possibly as low as fifty million. Don't get me wrong, I'm not advocating mass murder and genocide, but in terms of human flourishing I see almost no advantages (and many disadvantages) to a large human population. And by "large" I mean any population much above the relatively stable population of homo sapiens that the earth supported rather well during the first ninety-eight percent (or thereabouts) of the time humans were on this planet.

Imagine what a paradise China could be with only ten or twenty million people. Now it is a pit, and rapidly getting worse in terms of environmental destruction. For China, population stability came much too late.

Will the human population crash? I do not know, and neither does anybody else. But the larger the population (above rather low levels), the greater is the likelihood of a crash. Even without a crash, mass misery based on overpopulation is increasing every single decade, and the probability of this trend being reversed is slim to none.

Although Malthus got some details wrong, in essence he was correct.

What are the most densely populated countries on earth?

Holland, Japan, Hong Kong, Britain.

Oh yeah... these coutries are really suffering as a result of over population. BS.

Do you seriously believe that any of the countries you mentioned could maintain anything at all resembling current living standards without being able to exploit the cheap and nonrenewable resources of other and poorer countries?

BTW, I believe Taiwan should be on your list of prosperous and densely populated countries.

What happens when the cheap fossil fuels stop flowing??????

I am not making any assertions about what happens when oil runs out. I am simply pointing out that the link made above between "over-population" and "economic outcome" doesn't hold up to scrutiny.
doesn't hold up to scrutiny.

Huh?
Another case of selective blindness/selective dumbness.
Did you READ Don's reply?

BTW, another amateur for "dialectics" :

not making any assertions about what happens when oil runs out.

Making a diversion on the main argument (dense populations not sustainable on a LOCAL basis) by switching to a subsidiary point.
This seems to be everyone's favorite trick.

I believe you to be wrong unless you specify time frame.

They only exist(as someone pointed out) because of input from other areas.

I could appear to be "Economically"  prospering if you look at a very short period of time while I run up my credit card.  If you don't include what will happen to me when the bill comes due.  I might not look so "Economically"  properous.

It's just that the whole world has been living on it's Petroleum "Credit Card" for a hundred years.

Well,  The bill is in the mail and will need to be paid.

Holland, etc will not look so properous when they have to pay up. And not "Borrow" any more.

JC

"Do you seriously believe that any of the countries you mentioned could maintain anything at all resembling current living standards without being able to exploit the cheap and nonrenewable resources of other and poorer countries?"

Sure.  

What happens when the cheap fossil fuels stop flowing??????

They switch to renewables.  I'm not saying it's easy, or guaranteed, but it is possible.  

Again, Deffeyes:  "there are plenty of energy sources other than fossil fuels. Running out of energy in the long run is not the problem. The bind comes during the next 10 years: getting over our dependence on crude oil."

Not one of these four nations mentioned can feed itself, even given our level of technological sophistication. All four import the majority of their foodstuffs. Hmmm.....
They choose not to grow all of their own food.  Other countries choose not to manufacture all of their own windmills.  

The city of New York imports food.  It's not a problem in a complex economy.

I can counter that arguement with respect to both Britain and Japan, as I've lived there. Neither has sufficient agricultural area to grow enough food for it's populace, and in the case of Japan, has not for at least the better part of a century now (pre-WW2).

I agree that in a complex, energy cheap world this is not a problem, simply buy it elsewhere and have it transported.  But that seems problematic in a future setting.

hmm.

according to this http://web-japan.org/trends00/honbun/tj000604.html

"Japan used to maintain quite a high self-sufficiency rate on a calorific supply base; in fiscal 1960 it was 79%, about the same as that of Britain now."

The article says that in 2000 Japan grew about 40% of it's food, and suggests that much of the decrease was due to switching from rice to meat.

Yes, Japan will be in for a hard time if food transportation becomes difficult due to energy shortages.

I would think that Hong Kong and Holland are pretty close to their food suppliers, and that transportation to them wouldn't take much energy.

I don't know specifically how much energy water transportation takes.  Anyone?

Hello Everyone here,

I understand that oil depletion has very important and difficult effects. I made two points completly unrelated to oil depletion:

  1. I don't think anyone is able to calculate the capacity of the planet given it is such a complex system - again, we can't even get the weather forecasts right.

  2. A high population density has not historically led to a poor economic outcome. I would suggest it may actually be the opposite historically.

So why is everyone responding to me as if I had made any assertions about oil depletion?
I don't think anyone is able to calculate the capacity of the planet given it is such a complex system - again, we can't even get the weather forecasts right.

I agree with you there, and have stated as much. We don't know the carrying capacity. We "feel" that we are in overshoot, but who knows exactly what the capacity will be in 50 years?

Thanks RR, I seemed to be overwhelmed with Doomers for a minute.
Thinking about these sorts of things in the absence of hard data leaves you open to a lot of bias.

On the question of whether anyone is able to forecast carrying capacity, you state an opinion.  How much investigation have you done on the work that is being performed on this question?

I gave you a pointer above to the new version of Limits To Growth, in which the authors describe their extensive efforts to quantify this exact measure.  They attempt this in full and explicit recognition of the complexity of the system.  Nonetheless, they have been able to satisfy themselves that such a measure is achievable, though obviously with error bars that vary between the incorporated subsystems.  Their position is that at the beginning of this millenium humanity had probably overshot the earth's carrying capacity by about 20%.  You may disagree with their conclusion, but not if you haven't read their description of how they arrived at that number.  To simply say "I don't think anyone is able to calculate the capacity of the planet" doesn't cut it.  People have calculated it, so you need to deal with their analysis if you wish to remain intellectually honest.

On your second question of whether high population densities lead to poor economic outcomes, it all depends on whether a densely populated country has been able to exploit "ghost acreage" either in other countries (through trade or empire) or by using their own natural resources either domestically or as trade goods.  Countries that can trade or that have high levels of resources (especially renewable resources) can tolerate high levels of population for long periods in relative comfort.  Countries without those advantages cannot.  The problem is that the global per capita ghost acreage is declining as the population rises, since most usable land area is now occupied and the seas are now fully exploited.

I strongly urge you to read at least "Limits to Growth" and William Catton's "Overshoot" if you wish to be able to make comments that are more than just an expression of your own opinion.

My point is: we're not doomed.  The authors of LTG would agree:

"1. increase the consumption levels of the world's poor

  1. reduce humanity's total ecological footprint

  2. support technological advances (e.g. to achieve #1)

  3. support personal change (e.g. to achieve #2)

  4. think in terms of longer planning horizons "
The book states that the authors have a range of opinions on the probable outcome.  The book presents a number of mitigation proposals, but tries to stay agnostic on the probable outcome.

This is not the case when they are speaking personally.  Here's Dennis Meadows at ASPO-5, for example:

Dennis Meadows, author of Limits to Growth, told ASPO-5 that almost all of his 35 year old predictions of ecological collapse are coming true. 'We're facing a lot of peaks and oil is just one of them. We are also drawing down our fertile soils, groundwater, and forest stocks.' Meadows is pessimistic about our collective ability to address these issues. 'Politics, with its short-term election cycles, just isn't equipped to deal with problems that demand short- term privation. That's why collapse occurs. We are fundamentally unable to do the things we must do to avoid collapse. Sustainable development is possible, but not likely, and probably too late', he said. Meadows claims that collapse is not inevitable, but it will very tough to avoid. 'There is no possibility that alternative energy sources will rise fast enough to offset the decline in oil', he said. According to Meadows, 'Global society will most likely adjust to limits by overshoot and collapse, not by growth.'

He really doesn't sound that optimistic, does he?  In fact, he kind of sounds like a doomer.

"He really doesn't sound that optimistic, does he?"

No, he doesn't.  hmmmhhh....

He does say that "collapse is not inevitable", but then he says " it will very tough to avoid."

Not completely pessimistic, but really, really not optimistic.    

OTOH, he says "There is no possibility that alternative energy sources will rise fast enough to offset the decline in oil", and that statement is clearly not true.  It's certainly possible that alternatives will not rise fast enough, but I can find no good support anywhere for such a flatout pessimistic statement (I've discussed this elsewhere - If you'd like, we can discuss it further).  I think it likely that renewables will not rise fast enough to prevent serious global warming( and I would agree that global warming is likely to be very destructive), but I don't think that's what he's talking about - he seems to be talking about economic overshoot and collapse, in part caused by peak oil.  If he believes such a flat statement he clearly hasn't done his homework  (I'm assuming he doesn't present himself as an independent energy specialist with information no one else has, but rather as a generalist who is integrating other people's work).  As oil appears to be a key element of his analysis, I have to conclude that his analysis is flawed  and his outlook is overly pessimistic.

I would be curious what the official LTG statements are about energy.  

Regarding Meadows' opinion on the probable growth rate of renewables, I have to say his assessment doesn't seem outrageous when you look at the multidimensional utility of oil (and especially if you include NG) in the context of of a global decline of, say 5% (which is itself an opinion-based estimate, presented here for the sake of argument).  Let's do some back-of-the-envelope calculations on that basis.

5% of current oil production is a bit over 4 Mbpd, or 1.5 billion barrels over the first year.  To replace all the energy of that 1.5 billion barrels of oil we would need to put online over 2 trillion KWH of replacement energy.  This of course then needs to be done every year thereafter to retain Business As Usual.

Now most of this oil is used for fuel, so the actual work done is much less than the raw energy available, duue to processing, delivery and mechanical losses.  OTOH, if you are going to switch all that fuel consumption over to electric, biodiesel or alcohol-fueled vehicles,  there will be serious energy losses incurred on that side of the equation as well.  For now let's use a nice generous fudge factor.  Let's say we need to replace only half the energy - 1 trillion KWH - and see where that gets us.

First we look at wind.

Global installed nameplate wind power is expected to go from 59 GW to about 210 GW over the next 8 years.  Assuming linear growth that's around 20 GW of nameplate capacity per year.  Given a 25% capacity factor, that gives an annual addition of (20*0.25*365*24) = 45625 GWH, or .05 trillion KWH.  That's only 5% of what will be needed.

On the solar side, Greenpeace estimates that there will be 280 TWH of solar generating capacity onlune by 2020.  That gives us 20 TWH, or .02 trillion KWH per year.  That's just 2% of what's needed to cover a 1 trillion KWH decline.

Hydro will add very little, because most suitable sites are altready in use.

So, using the current growth projections of both solar and wind, we can plug 7% of the gap created by a 5% decline in oil production.  Biofuel has too many problems to add more than 1% per year over the medium term, so that leaves nuclear power to pick up the slack.  And of course nuclear power isn't renewable.

And of course this thumbnail analysis doesn't even address the probable peak of NG, which will affect the production of plastics and fertilizers.  So, unless we can increase our production of solar and wind capacity by 15 times in the very near future, I think Meadows is entirely justified in his position.

If you're interested in LTG's "official" position on energy, I'd strongly urge you to buy the book.  It's a very worthwhile investment.

hmmm.  interesting post.  I'll have to think about it, and do a few calculations, but let me say the first couple things that come to mind.

First,  my thought about Meadows opinion is that he was making an unqualified statement.  He didn't say "If oil supplies fall as quickly as some analysts think they might....", or "Oil supplies could fall so quickly that..."  He said "There is no possibility...".

I think you'd agree that there is considerable disagreement over depletion rates and their timing.  For instance, Westexas is pretty pessimistic, and AFAIK Stuart thinks we'll have a plateau for at least a few years.  I believe ASPO thinks peak won't happen for about 3 years.  What if all liquids rise slightly for 3 years, and are flat for another 2 years, and then decline at, say, 2% per year?  My sense is that most TOD people would feel that was a little optimistic but not impossible, and it would have to be far, far worse than that to cause collapse.  So for Meadows to make such a flat statement reduces his credibility.

Secondly, growth rates (and cost reductions) for wind and solar are exponential.  That means that growth will be smaller in the short term, and greater in the long term.  This means that if a oil crisis were to hit hard, very soon, that renewables could contribute very little - greater efficiency, conservation and recession (or depression, depending on the depth of the supply crisis) would be the responses.  OTOH, I think your sources greatly underestimate the growth rates, and potential for wind and solar in roughly 10-15 years.  The average installation you used for wind, for instance, was 20 GW per year worldwide, and yet in the US alone there is 11 GW planned for 2007 - see page 8 of http://www.nei.org/documents/Energy%20Markets%20Report.pdf

Realistically, I think greater efficiency, conservation, reduced economic growth and renewables are all going to happen.  The mix is the interesting question, and it depends on how well government, private firms, and consumers react, and on depletion.  If serious depletion (greater than 4% per year, say) hits sooner than, say, 10 years, then I would guess that we would probably have economic stagnation or recession for several years until alternatives can grow.  

That was longer than I meant to write right now.  I don't mean it to be complete, but I wanted to give you an answer right away.  I'll try to write more later, with better numbers.

If we were able to stop all further births and maintain our population at 6.5 billion for the next 25 years, would that help our predicament significantly?

no.
any country that will willingly submit to this will automatically put it's self at a disadvantage compared to those country's who continue on as normal. a higher population still gives one country a very good advantage, more feet they can put on the ground in any military conflict. and as Iraq, Afghanistan, and Lebanon now proves even high technology is defeated by simple numbers of willing fighters.
Population growth is slowing mainly for one simple reason: We have birth control methods nowadays that weren't available in the past. That's partly why birth rates have been slowing faster in more developed countries where birth control methods are more readily available.

In general, we are beginning to see the breakdown of the old system. Humans will transition to a more sustainable society simply because they have to. It doesn't have to entail mass die-off, but it may. The end result may well be a more spiritual society in which cooperation and wise use of resources is valued more than greed, growth, and acquisition.
The end result may well be a more spiritual society in which cooperation and wise use of resources is valued more than greed, growth, and acquisition.

Let's hope so, that would be nice to everyone living by those times.
But what about the transition?

- WHAT has to be changed?
- How much does this COSTS in money, energy, deaths?

Have lemurs shown a hard-wired propensity for growth? Bobcats? Algae? Most populations find a dynamic equilibrium with their ecology.

ALL species animal or vegetal DO HAVE a "hard-wired propensity for growth" otherwise they would just NOT SURVIVE.
It happens that the "equilibrium with their ecology" is met by the action of predators or ressources shortage.
We have ressources shortage (peak oil and others) and are our own predators (Middle East & als).

What are you complaining about?

I'm not.  That's rather my point.  I read Catton years ago, and by my understanding, there is such a thing as a stable, climax community.  Part of that is that the urge to grow is bracketed and turned into a good thing, it actual keeps the community stable.  I usually compare it to a tent: it's the tension that keeps it up.  It's when you manage to slip from the usual ecological confines—like we did with agriculture, and again with fossil fuels—that you get into overshoot, and then crash.  Think of cutting one of the ropes that hold your tent up—what happens?  The original comment made it seem like this is a problem of human nature; I don't think it's human nature at all, but animal nature.  There's some amount of comfort in there, though: it means that equilibrium will always be restored, and we're not condemned to an eternal pattern of growth.  We can live in dynamic equilbrium with a given ecology, just like any other animal.
I agree that what we're talking about is not just "human nature", but in fact applies to all living organisms.

I don't believe you can have a climax community if there are significant detritus stockpiles in the niche.  A climax community requires constancy in the resource base in order to match excess births with excess deaths on an ongoing basis.

Yes, humans can theoretically live in dynamic equilibrium, but we'll have to get rid of the cheap, easy oil first.

Agreed.
"all our historical societies"
Absolutely correct. History begins when? Maybe 3000 years ago? You want 5000? Most humans, by raw population numbers have lived in historical times, most human societies are prehistorical. What we know about them is diddle.
What we think we know about "human nature" is imaginary. What the doomers know about our genetic hardwiring is an ideological flight of fancy.
What we think we know about "human nature" is imaginary.

Get learned!
Plus, how is this more "imaginary" than philosophical/religious so-called "wisdom"?

What the doomers know about our genetic hardwiring is an ideological flight of fancy.

Even "hard science" is a "flight of fancy" OUTSIDE the error margins.
Are you pretending you know better?
Please explain.

Exactly! I've allways said that intrest is the root of all evil, the main cause of the nest-spoiling we do.
Darn it, darn it, son-of-a-gun, global capitalism is NOT the problem. Communism was harder on the environment and more materialist than any variety of capitalism ever has been. For a dramatic illustration, compare the environmental devastation in East Germany with the preservation and enlightenment in highly capitalistic West Germany. Same culture, extremely different outcomes.

Conclusions:
Mixed economies based on varieties of welfare-capitalism may be viable in the long run. The jury is out here. Countries such as Sweden, Finland, Iceland and Germany offer grounds for hope.

Socialism in any of its varieties has never worked for more than fifty years--and where it has "worked" it has been at horrendous human and environmental cost. Take Cuba for example: Without its underground American dollar cash economy (highly capitalistic, e.g. among sex workers), the society would have come crashing down years ago. Only by tolerating a parallel capitalistic gray economy has Castro been able to hold onto power. This dual economy is striking and has divided Cuban society into two classes--those with access to dollars and those with none.

No offense intended, Don, but the dinstinctions you are making are products of an ideological worldview that was used for base competetive reasons, not for their explanatory value. "Communism" never existed. The state controlled economy of the FSU was a part of the world economy. Yes, it was environmentally whacked, but that was a relatively technologically backward region attempting to catch up to the "developed world" They took shortcuts. But their motivation was always connected to the emerging global economy. The same goes for your observations on socialism (for every Cuba a Sweden?) - you are only talking about gradations of state interference or control of the economy.
"Communism never existed."

If by that statement you are referring to the imaginary communism of Plato or "Utopia," you are correct by definition.

But the Soviet Union and East Germany most emphatically did exist, and their devastation of the planet in the quest of rapid economic growth is not in question.

There are real differences in economic systems. Some are vile, such as that of the Soviets. Some are pretty good and seem capable of improvement, such as the mixed-capitalism country of Sweden, where most resources are privately owned but there is a strong twentieth century tradition of transfer payments based on high taxes.

I find it rather funny when Magnus Reddin complains of the imperfections in Swedish politics and society, because these are mere warts on a very healthy body. He may acknowledge that his government is far more efficient, effective and enlightened than in most other places, but he grumps mostly about relatively little things in his society.

BTW, I've always thought that a big reason for Sweden's success was that it exported most of its poor people and failures to Minnesota, where there descendants now dress up in traditional costumes, gorge on smorgasbrod (sp?) and dominate the economy and to some extent the politics of the best of the fifty states. (Incidentally, I have no Swedish ancestry that I know of, but the Swedish/Lutheran/Minnesotans tolerate me and other mongrels with "Minnesota nice.")

"But the Soviet Union and East Germany most emphatically did exist"

Yes they did. Your error is believing the propoganda that these were communist states. Your belief in this propoganda is further demonstrated by your labeling of the soviet economic system as "vile."

Apparently I didn't explain myself very well, because you didn't address what I thought was the core of my argument - that these other economic systems remain part of the global economy. The scandanavian economies are an excellent example. They have been able to do what they do largely because of the global economy, in essence carving out eddies in the global flow where they could weather the business cycle storms.

The former Soviet Union and East Germany were very poor countries to begin with, Don. East German was decimated during WW2, and Russia was a poor, backward, agrarian state when the Tzar still ruled it. Apples and oranges cannot be compared.
West Germany was more devastated by Allied bombs than East Germany, because of the limited range of bombers and fighter escorts. The two parts of Germany were about equally poor by May of 1945.

West Germany benefited mightily from the Marshall Plan, and East Germany suffered mightily from Soviet depredations, but even taking those factors into account, I do believe that the striking difference in development between East and West Germany speaks volumes.

Just look at the differences in insulation of buildings in East vs. West Germany--remarkable; in the East it was cheaper to burn more coal, while in the West more efficient building codes encouraged large amounts of insulation, better windows, etc. Also, the pollution in East Germany, Romania, etc. was something out of a nightmare, while by the sixties West Germany was actively cleaning up the environment. Take a look at the history of the Rhine River, and contrast that to what happened to major rivers in the Soviet Bloc.


I find it rather funny when Magnus Reddin complains of the imperfections in Swedish politics and society, because these are mere warts on a very healthy body. He may acknowledge that his government is far more efficient, effective and enlightened than in most other places, but he grumps mostly about relatively little things in his society.

Warts or tumors, they irritate a lot, especially when you can come to a logical conlusion about a lot of them being avoidable and notice that there are reasonable suggestions for action against them. If reasonable solutions then are tested and things incrementally get better you have a very healthy society and if it isent it will be within a generation or two.

Now we need to exercise our democracy in a comparision of ideas and I hope the extremely successfull idea of expanding government and government transfers of money has come to its end. So far I am fairly pleased with the public debate, it is so far on a higher and more constructive level then during the last elections.

To come thru the peak oil downslope in good order we need to shrink our government and make it more efficient while making it easier to start new businesses and get more efficient production of all kinds of state managed services. It will be a time of change when old business die and new can and must be started and if we dont handle that well we will become nedlessly poor. We wont be able to pay as manny bureaucrats, state or private, and there wont be as much money for people withouth a job or retirees. Our economy must encourage manny more of these people to work for each other for this to work out well. They have learnt that the state provides and it has more or less done so but now will manny of these resources disappear or be needed for investments in infrastructure and so on.

Isent there an expression "biting the bullet" for something like this? We need to get about 1/3 of our state to willingly commit organizational suicide. The current government have built some parts of the gun such as initiating a very extensive commision about consolidation of  regional municipialities and so on and they state that 20% of the man hours used in private enterprise for handling official papers could be avoided but the have been unable to pull the trigger and fire manny party members, instead the increase in state size have continued. Independant think tanks suggest that about a 40% reduction is possible. The opposition dont dare to mention so high figures but have a death list for authorities that can be closed down or consolidated with other authorities.

Such drastic downsizings have been done in some extensive municipiality organizations setting some intresting examples.

The first generation were often called "buy and sell". The producing part of the municipality organization that for instance provided care of elderly people were organized as a separate company that also were separated from the buildings. The local politicians then acted as buyers making a service specification and having an open tender that the municiality producing organizations often lost. I am not good with exact figures but some parts of my own municipiality care of elderly function is now about 2/3 private with about half a dozen companies. Quality have been more or less unchanged from this but costs are way down. This also solved the problem of having two crowds of picketing people at the same time, one demanding higher pay and one demanding better service for the money or lower taxes. This even proved popular with the local socialist party politicians. The savings potential is probably exhausted now and it favors larger companies.

The second slightly newer is like the US liberal school check. If you need a public service you get a check valid for a large number of service providers and then you choose any of them. The very first experiment were for medical pedicure, almost zero bueraucracy and one skilled person can start a hole-in-the-wall shop. It worked very well and when peiople get a taste for it it gets popular among all parties members. Tomorrow I will campaign togeather with two other opposition parties and one of the main suggestions within our municipiality is to start using this system. The expectation is for it to not lower cost but get more quality for the money, provide niches for lots of new small companies and thus create jobs and strenghten the entrepreneur culture, get a better worker/bureucrate ratio and get people to become less socialistic in the way they think. And regarding peak oil it will be a generator of social capital and if things turn ugly and the tax money dry up much of it can function as a regular free market.

This will all get better if the governmnet election goes well from my point of view since I am sure we will respect the traditional but weakening municipiality political freedom more. Such experimentation as above have been severely limited by the socialist governmnet but not completely stopped. I am sure that we will provide more slack if they want to experiment in the municipialities where the socialists win. Especially since the properties tax will be made into a municipiality tax.

Things would be more cheerfull if I only cared about peak oil preparations since both sides have promised a lot and it is logical for them to deliver on these promises given the economical changes underway. If the election goes against me I have to worry about any greens closing another symbolic reactor and having a few thousend new buerocrats in half a dozen new authorities organizing the building of post peak oil infrastructure etc in an inefficient way.


BTW, I've always thought that a big reason for Sweden's success was that it exported most of its poor people and failures to Minnesota, where there descendants now dress up in traditional costumes, gorge on smorgasbrod (sp?) and dominate the economy and to some extent the politics of the best of the fifty states.

I have another but related theory. The poorest did not move to USA, they could not afford it. We had back then in the early 1800:s a very well organized and backwards society withouth industrialization but a lot of old raw material exporting industries if you get the difference. The ruling class were well off, farmers were free as allways but most were poor. But other countries pulled way ahead of us and we more or less decided to industrialize as the Japanese did and copied the best we could find in England and most of all Germany including all this theoretical stuff about a free marker. The industrial era also provided ships to enbale mass migration to USA and this bled the country on a very lartge percentage of the population wich I think scared the powers that were and this gave a major boost for liberalism and then a light form of socialism. We absolutely had to make it better to stay here then move to USA. I dont know if we succeeded or if you closed your borders.

I got a feeling that we are entering the same kind of era as about 150 years ago. We must make our state run better again and this time it is not for the population leaving but for a tragic waste of personal potential among the jobless and for the end of the oil era.

Btw, Finland is better run then Sweden and Denmark has made a good job with reorganizing and consolidating authorities. we used to be the best dammit. ;-)

If Sweden is not the best-run country in the world any more, it is still very close to the top. O.K., maybe I'd rather live in Denmark than in Sweden, but the differences are marginal.

Magnus, I think you are correct to focus on the gap between the ideal and the real, between good and better, but I do wish you would travel to the U.S. or any Latin American country or even to Russia to see how badly really bad government can screw up a society.

Do you live in Utopia? Of course not. But you live in a good society that has the potential to get much better.

The U.S. is living off its moral capital, and we are just about at the bottom of the barrel. Our public educational systems from kindergarten through twelfth grade are almost unmitigated disasters. Our health care system is shamefully unfair. Racial hatred and religious bigotry are widespread in the U.S. and possibly getting worse. We have relatively little support for public transportation (though that may be changing a little bit). The cars we manufacture are mostly low-quality compared to what Volvo and Saab put on the market. I could go on . . . .

Should not USA have an enourmous potential? You still have wealth and lots of entreprenuership as far as I can tell from over here.

There are a large number of Swedes who envy the US culture for integrating immigrants. It seems like it takes generations over here and we are quite clumsy when different groups start or continue hating each other. The basic Swedish behaviour seems to be the same as for sound or crazy neighbours, their busienss is not my business and as long as they dont do anything very stupid I dont care about what they do and ignore them. This makes it very tough to get into Swedish society, businesses and so on even if you have large freedoms in being whoever you want to be. This did not stop xenophobia, gayophobia, etc but when those battles were fought in the western culture it seems to have been easy victoriers in Sweden or have perhaps only given larger do-as-you-please-while-I-ignore-you zones. The intellectual trend of multu-culture fits in this pattern untill it crosses borders that dont budge and we for instance get a rucus about the tradition of cutting labia and sometimes more of females. I am definately sure that our culture sometimes is superior.

There is no recipie for making cultural Swedes out of immigrants but sometimes we have some luck. This hot summer has immigrants everywhere fancied taking a bathe or swim in the numerous lakes. This were reported in news media as a problem due to all the drownings. But if they go swimming in summer and perhaps even sign up for a course to learn to swim they are well on their way even if they swim in muslim style clothes.

I think or rather hope I have seen some signs of secularisation. If we get sizable groups who insist on imposing new strict religious values on everybody besides themselves I think we will strect as a rubber band for about two generations and accommondate that and then bounce back with all hell breaking loose.

Some problems seems to parallell each other. The crime rates are higher in areas with manny immigrants. The worst part since it eats social capital is bully and hate crimes mostly among young immigrants but also against non immigrants. Its hard to do something about it and some of the reaction is tougher centences that usually start years too late for the criminals to chage behaviour easily. This has led to some crowding in prisons and now a prison building program to get back to single cells only, if I have understood it right. One intresting thing to do about it is to convert hired often municipiality owned flats into owned flats wich makes people care more about their apartment, the house they share with their nearest neighbours, and it seems to then go beyond that. It seems to be very good in combination with a 30-40 year renovation of the houses and perhaps some new bicycle lanes and so on. But most of the problem is jobs, jobs and jobs, especially now when times are going to get tough.

Btw, I suspect that manny americans should have an fairly easy time integrating in Swedish society. A Kunstlerian suburbia dweller could live here his whole life withouth any problem for anybody. :-)

Our education system is a mitigated disaster with some hopefull parts. I think the lesson to learn is that you should not prioritize quantity before quality and dont let theoretical socialist write the curriculum. Finland run their schools in a better way but liberals who would like to analyze a school check systems effect on a partly failed schooling system should visit Sweden.

Part of the problem the U.S. has is that it is large--both in geography and in terms of population. When the Titanic lookout saw the iceberg through the mist it was much too late for the huge ship with so much momentum to make a quick turn to avoid the ice; also the Titanic was going "Full Steam Ahead!" which was an insane thing to do, even without the benefit of hindsight. The U.S. is like the Titanic, with the lookouts shouting, the radio man sending warnings, but the Captain is drunk, and the First Mate is entertaining the rich passengers instead of tending to business.

A sailing ship, almost any sailing ship, can turn drastically in a distance no more than twice its length, partly because it is small but also because it is slow, has a relatively large rudder and especially because its sails give it far more turning ability than any steam-driven ship. Sweden is much smaller than the U.S., much more homogeneous, has a much better educated population than the U.S. and a political system that, while imperfect, seems to be able to make many important changes--maybe not right away, but soon enough to avoid disaster. Thus, I look at Sweden somewhat as I would a sailing ship in contrast to the U.S. Titanic.

For example, I suspect that genuine reform is possible for Swedish schools. American schools are so bad that I think they should all be turned into refuges for the homeless (of whom we have many) and the administrators all fired. Perhaps worst, fifty years ago teaching attracted many of the best and brightest people. Today fine people still go into teaching, but many of them soon leave, because the system is so bad; mediocrities rule the schools and too many (not all) teachers are in despair or ignorant or unmotivated. Our educational system has decayed beyond reform. If I were emperor, I would abolish it immediately and go back to one-room school houses within easy walking distance of home, and I'd staff these computer-age learning centers with smart and dedicated people of the highest quality. The teachers' unions must go. (But they won't.)  

What syncronises the US schools? I have a hard time believeing that all of them are bad or about as bad in such a large country.

Over here they have for a long time been syncronized by strong government control and centralized teacher education. But this control have been loosed up by transfering them to municipialities wich sometimes have been bad for their budgets and so on. And the "free school" reform opening up for any kind of school that conforms to a list of requirements has opened up for large new differences.

The number of schools that have been closed due to awfull quality in the education is small but they excist and it is usually blamed on the physical building being bad. What usually happens (I dare not say more since I have not read the research myself) when a number of  "free schools" are started is that the competition for pupils force a renewal of the municipiality schools and the average performance is better in all the schools but the worst do anyway shrink into nothing. This gives the local politicians one of the worst jobs there is, closing a school that a few old generations have liked and feel nostalgic about and moving around children to other schools while parents complain loudly.

The difference in quality, organization and ways to teach is then what ultimately drive the parts of the schooling system that are getting better. Those practical demonstrations are of course recieved with rabid hatered by the ideological people who are sure that even more of the same medication that has given us the quality problems is what is needed to create the perfect school and perfect citizen.

Its almost a textbook demonstration of the benefits with free markets even if the financing is 100% tax money. And it is the main benchmark for the oppositions new ideas. Get them rooted and popular across all groups in society in this way before the next election and they will continue to bring benefit in a way that cant be stopped.

This idea or something like it should be perfect for a free market society full of entreprenurship such as USA, have you tried it in any state at any time?

Sweden has a strong central government, the federal government in the US only has limited power.

This is very similar in Germany. In some states (Bavaria, Baden-Würtemburg) schools are ok, according to PISA and other studies, whereas in other states (Bremen, Nordrhein-Westfalen) schools are bad.

As a matter of fact, Bayern and Baden-Württemberg have been governed by conservatives for some 40 years, Nordrhein-Westfalen by social-democrats.

However, the new conservative government in Nordrhein-Westfalen has recently started a reform. Parents can now freely choose the school they send their kids to across municipial borders. Schools can select their teachers, the number of kids per teacher is reduced. Rankings of school tests will be published now.

This will start competition among the schools, which is good, but a problem at the same time. We will soon have schools without any native German, so things will get worse where they are already bad, especially in districts with a high number of immigrants. How can competition improve that?

We have had free schools for decades, such as Catholic schools or Waldorf schools, but not all of them achieve higher quality compared with state schools.

JK Galbraith, who you profess to admire, called the FSU state capitalism. Same as USA. Oh well.
The Soviets called it socialism. Perhaps socialism is identically equal to "state capitalism."
Don, could you elaborate on the "capitalistic economy" of Cuban sex-workers?

Visit Jamaica. From there you can go to Havanna without getting your passport stamped. Bring dollar bills. Lots of them. Do participant observation research;-0. Sailors have long regarded Havanna as a paradise for, shall we say, easily available beautiful women. This tradition goes back at least four hundred years, and so we should not blame it on Castro, but the dichotomy in Cuban society today is striking--those with dollars live well, while those on rationed rice and beans just scrape by.
I've gone to Cuba so you all don't have to.

You can achieve the same atmosphere by visiting the city of Santa Ana in Orange County, California. Same cuteness, er, lack of prevelent cuteness but some cuteness there, of the women. Same grizzled hard-cases (men), same general run-downedness of streets, buildings, people, trees. Same "hmmm.... I think I've had all my shots" food.

Cuba has a coast, so for that go to Laguna Beach which is nicer. Getting back to Orange Cuba, next door you have Little Saigon, incredible cutie-spotting and good food. You can't read any of the signs, but in case you get in trouble, Bac Xi is "doctor".

Now, back to the real Cuba, it's 'koo-ba' not "kew-ba" that will show you as an American right away, althought those are so rare there they'll just figure you're a Brit. They love dollars, and many shopkeepers will refuse to take the Cuban money if they smell a dollar on you. Cuba needs the dollars for international exchange, and I was happy to give 'em my American play-money. Cuba is an extremely class-bound society, there are different classes of political/security cronies, and these are often set up on racial lines - they'll have for instance, blacks doing general security police duties watching over the native Cubans, since someone's much happier to snitch on the "other" group than their own. They have encampments of black refugees, from Haiti or somewhere? They have these little shacks and seem to just stand around much of the time, not much to do. There's not much traffic on the roads and if you don't include the military vehicles, not much at all. The standard Cuban vehicle is an old bicycle, pedaled by a skinny Cuban guy with his obese wife on the back. Housewives stand in the street and gossip, no one watches for cars because there effectively aren't any.

When I was there, their Peak Oil experience was just sinking in. Cuba would be a good place to go to see a country a decade along in the Peak Oil experience. The farms and the methods they're using to provide medical care, clean water, etc., would be very interesting. I think their population now is actually healthier than the US's. Warts and all, I think Cuba is a heroic country for enduring under the shit the US has been handing it for all these years. It's a much better place to look at clinics and been seedlings than at T&A.

But Don;
  The existence of a 'cash-marketplace' is not the same thing as 'Capitalism', any more than having a group of oligarghs calling them selves 'the State' makes their ownership of 'the means of production' an actual 'Communism'.

  As far as devastation is concerned, I would have to ask what would our 'Capitalist/Imperialist'  nations would look like if we had allowed the destruction we've created to simmer and stew as much on our own soil as it has on our 'colonies' and 'client-states' .. of course, as our energy needs get more dire, we are literally 'eating our own national body' by chewing up our precious appalachians, and spitting out the sad remains of our great plains topsoils-blended with synthetic chemicals down our fine waterways.

  I think we in the USA have had more land to destroy, so we've been able to go about it for longer and not have to really face the results, besides 'offshoring' much of it to the rainforests, the oceans, the new Desert-Republic of Haiti, etc.  Capitalism might be strung up eventually by the rope it eagerly sells to us, but it has done plenty of hanging by it's own accord, in the meantime.

  I don't know if it's the various economic systems or the modern, industrial arts overall that are more to blame.. or is that simply saying 'is the bug in the software or the hardware'?

Bob Fiske
Bob Fiske

As Bob Fiske remarks, a "cash-marketplace" is not capitalism, and since you acknowmedge that Cuba "sex exports" have beeing going on for at least four hundred years current communism has not much to do with this either.

I will certainly not enjoy the "just scrape by" Cuban life myself but in pretty short order this will not be a matter of choice anymore.

Cuban life happens to be better sustainable in hard times:

The power of community: How Cuba survived peak oil

It does not really matter if they have been driven here by communism, US hostility and quite unwillingly.

Dear Don,

Your example of environmental devistation in East Germnay is not entirely indicative for Communism. What you aim at is what we in Europe call the "black triangle", which is a part of Germany, Poland and the present Czech replublic, which all dug/dig browncoal in strip mining operations, devastating entire ecosystems.

OTOH by communists way many swamps, wetlands, forrests and the like remained in tact.

As my wife grew up under the communist anexation in Eastern Europe, and her grandfather died in labor camp becausee he helped people accross the Iron Curtain, you'll understand that I'm not a communist.

However they did a fine job at conserving nature in Poland, Czech Rublibic, Romania, and possibly other countries, as far as I know.

I've been to the black triangle several times and it's killing you, no mistaking about that

I think the guy is 80 years old, and while he might give a credible speech I doubt he could handle the sharpies out to make a name for themselves in the usual stupidvision format show.  PO awareness is much more widespread than most people here think.  I first became aware of it by reading an article in  "The American Conservative" approx. one and a half years ago.  So give it time this issue is being worked at from both ends of the political spectrum and sooner or later media savy message people will dispose of the looters that occupy the middle these days.
"I mean, how the heck can a TV producer turn down an opportunity like that, given that PO folks do believe that stuff?"

IMO, I think that they deliberately decided to avoid oil industry people that would make a hard quantitative case that we are at or near Peak Oil and that could rebut the tar sands argument.  Having said that, I'm sure that Megan probably could have done a good job of rebutting Stossel, but she wasn't given a chance.  You could see that Megan was pretty pissed when they ended the segment without giving her a chance to rebut Stossel.

I got that the first time, that they avoided rational establishment types.  It struck me as the show started last night that they probably dropped you because you sounded to rational and established in your telephone interivew.

But they didn't make up their PO guests from whole cloth.  They showed the viewers a segment of the PO "community" that is sure as heck out there.

Liefe After the Oil Crash is the number one google result for "peak oil," right?

But Odo... if you've investigated the peak oil issue, the chances are that you've also investigated the "Limits to Growth" issue and have connected the dots re: fossil fuels and climate. Data everywhere points to significant depletion in forests, fisheries, acquifers and ice fields. You don't have to visit doomer places like "Die Off" or read Kunstler to understand these things. You can read mainstream books by Jared Diamond or Elizabeth Kolbert. Or lurk here at TOD.  

In the gross depletion context, how does someone like Megan Quinn argue for the current "American Way of Life"? Logic suggests that if you understand aquifer depletion, you don't dismiss composting toilets. If you understand forest depletion you don't dismiss rammed earth construction.

Peak Oil advocates are destined to carry this baggage because oil is not the only resource in trouble, and, compared to water and soil tilth, probably not even the most pressing.

I think the mistake we make is catching rather than pitching