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Page added on September 28, 2012
‘High-priced fuel syndrome’ the undiagnosed cause of the ailing global economy
An energy analyst has concluded that the key factor causing the world’s economic woes is ”high-priced fuel syndrome“ which induces sluggish growth and range of other ailments.
Peak oil expert Gail Tverberg has written a lengthy report for Our Finite World in which she observes that lofty fuels costs are stymieing the growth of the global economy and industrialized nations in particular.
According to Tverberg’s analysis the developed world is worst afflicted by high-priced fuel syndrome due to their copious oil dependence, and the fact that the liquid fossil fuel has been especially expensive over the past several years.
At this point, Europe is hardest-hit by high-priced fuel syndrome. In part this is because Europe is a big importer of both oil and gas, and both are high-priced. European countries have also encouraged the use of high-priced renewables, adding to their difficulties.
Tverberg has dire forecasts for the global economy if dependence upon exhaustible fossil fuels persists. The crux of the issue is not so much their relative abundance as much as their relative cost.
While many people have laughed at the issue of the world “running out of oil” (or natural gas, or some other substitute fuel), it seems to me that they have basically missed the point. There is always lots of fuel in the ground, or available through devices we create that produce “renewable” fuel. The major issue is that the fuel becomes too expensive for the economy to afford.
5 Comments on "‘High-priced fuel syndrome’ the undiagnosed cause of the ailing global economy"
BillT on Fri, 28th Sep 2012 2:39 pm
“… There is always lots of fuel in the ground, or available through devices we create that produce “renewable” fuel…”
Another techie dreamer. ‘Renewables’ ALL start in the mines of the earth and all are mined with oil powered machines.
While the cost does affect use, it does NOT make more available … EROEI limits that idea. Money is NOT interchangeable with energy.
Kenz300 on Fri, 28th Sep 2012 3:40 pm
Every country needs to develop a plan to balance its population with its resources, food, water, energy and jobs. Greater energy self sufficiency will require local energy sources with local jobs. Wind, solar, wave energy, geothermal and second generation biofuels made from algae, cellulose and waste will all become a bigger part of the energy mix.
Sharpie on Fri, 28th Sep 2012 9:57 pm
And those fuel costs (assuming fuel continues to be available for mindless consumption and not allocated solely for emergencies) will continue to stymie growth – growth that we’ve considered normal and good for what ails us. You CANNOT grow an economy without a constantly growing supply of oil (on a finite planet, that is). Something’s wrong here, no?
SilentRunning on Sat, 29th Sep 2012 12:24 pm
Kenz300> Every country needs to develop a plan to balance its population with its resources, food, water, energy and jobs.
Sadly, we’ve waiting too late in many parts of the world, and “the plan” will have to look something like “kill your neighbor to the east and west, and then there will be enough food for you.” ;-(
Arthur on Sat, 29th Sep 2012 2:45 pm
White people are giving the good example by having children at rates far below replacement levels, in the US, Europe and Russia. Russia for instance with current trends will go down from 140 million now to 70 million later this century. Unfortunately the rest of the world, with the exception of China, Japan and Korea, do not follow the good example. The most likely scenario for the near future will be the one described by Jean Raspaill:
http://en.wikipedia.org/wiki/The_Camp_of_the_Saints
The dilemma imposed upon European civilization (US, EU, Russia) will be: “are we going to commit suicide for humanitarian reasons or not?”. I already know the answer that will emerge, certainly in Europe and Russia, once the downturn really starts to bite.
Expect Alan Cecil, the New World Order guy, who wants us to commit suicide as a society, to shout: “racist!”.