Register

Peak Oil is You


Donate Bitcoins ;-) or Paypal :-)


Page added on January 21, 2013

Bookmark and Share

Peak Oil’s Impact: Holiday Marketing

Consumption

Oil plays an essential role in almost everything that touches our everyday lives. From the food we eat to the means by which we transport ourselves, our goods, and our services, to what we grow, build, have, own, need, and do, oil is almost always an important element. But the painful truth now and soon is that the ready supply of oil and gas that we almost always take for granted is on its way to becoming not-so-ready—recent production increases notwithstanding.

What happens when there’s not enough to meet all of our demands, to say nothing of those of every other nation—including the many countries seeking more growth and prosperity? What sacrifices will we be called upon to make? Which products will no longer be as readily available? Which services? Who decides? What will be decided? Who delivers that message to the designers and producers and shippers and end users? What’s their Plan B? And how will we respond when decisions are taken out of our hands? Where exactly will the dominoes tumble?

There is nothing on the horizon that will work as an adequate substitute for the efficiencies and low cost and ease of accessibility that oil has provided us. We simply do not have the means to make that happen—not the technological capabilities, not the personnel, not the industries, not the leadership … yet. Clearly, we do not have enough time to do it all with effortless ease and minimal disruptions.

Piecemeal approaches that address some small aspect of need for some short period of time in some limited geographical area for just a few consumers is in the end a monumental waste of limited resources, time, and effort. We can’t wait until we’re up to our eyeballs in Peak Oil’s impact to start figuring out what to do. We’re too close as it is. We’re going to have to be much better, much wiser, and much more focused. **

Here’s the latest contribution to my Peak Oil’s Impact series—observations and commentary on how Peak Oil’s influence will be felt in little, never-give-it-thought, day-to-day aspects of the conventional crude oil-based Life As We’ve Known It. Changes in all that we do, use, own, make, transport, etc., etc., are inevitable. A little food for thought….

My wife is in sales … the real estate/financial services industry, and she’s quite good. Quite successful, too. Top ten nationally, as a matter of fact, for a company whose name is instantly recognizable to anyone who’s ever done any banking or purchased real estate.

One of her holiday-season rituals, when her daily responsibilities decrease ever so slightly as the holidays near and thus allow her more time outside the office than is usual, is to become Santa’s cookie elf. Dozens upon dozens of favorite treats from a friend’s bakery—unfailingly a hit in every office she visits—are her calling card as she makes the rounds to the real estate and law professionals in the area with whom she does business. The contact with peers she much-too-infrequently meets with in person is a welcome assignment.

Re-establishing the personal friendships is the biggest bonus for professionals like these whose normal working hours afford them almost no time to nurture those important relationships. So too do the relaxed, friendly gatherings afford them all the opportunity to solidify their business relationships. The benefits are reaped every time a referral call is made over the course of the next twelve months.

The cookies my wife purchases are always an important door-opener, and they always work. They are far from her only marketing effort of course, but the personal touch and thoughtfulness go a very long way in having made her one of her company’s leading professionals for more than a decade.

The owner of the bakery likewise appreciates the large sum of money my wife spends out of her own pocket each year. Although the holiday season is the time when my wife makes her largest purchases there, she also makes use of those treats on other occasions during the year.

Customers like my wife are invaluable assets for the owner. The staff she maintains are no less dependent on that business. Her suppliers, the drivers who make deliveries to her store, the various service technicians who keep her kitchen equipment functioning or replaced as need be likewise draw indirect benefits from the bakery store clientele.

The ovens, miscellaneous kitchen supplies, paper goods, wrapping, cookie containers, and all the other items on what is no doubt a long list of supplies do not magically appear inside the bakery. Companies hire suppliers to build/manufacture/maintain/replace the items on that list, and they too depend on transportation up and down their own supply chains. Every employee up and down that line is also a beneficiary of the bakery owner’s success, as are the countless other small and large businesses in that industry who supply us all with treats as well as nutritional necessities.

As evidenced by the good will my wife maintains with her fellow professionals, there are vital intangible benefits to the process as well. Having an SUV makes it much easier for my wife to cart around her deliveries. That isn’t powered or maintained on good will, needless to say.

And so I’ll ask the very same question I’ve asked before: When the supply of depleting conventional crude oil continues to decline, and reliance turns to the inadequate supply of inferior quality, more expensive, harder to come by unconventional sources such as the tight oil formations in the U.S. and the Canadian tar sands cheered on by certain factions of the energy and media industries, what gets prioritized in such a way that every cog of these multiple supply chains are still supplied at current levels and relative costs?

If that does happen, what gets sacrificed as a result?

How much more difficult is it going to be in the years to come to sort all of this out and develop alternative means of providing these goods and services if we’re not having the conversations now with real-life facts to guide us—before we’re having serious problems? Waiting is a strategy, but it’s usually not a very good one.

Peak Oil Matters



8 Comments on "Peak Oil’s Impact: Holiday Marketing"

  1. BillT on Mon, 21st Jan 2013 3:21 pm 

    We simply will NOT have all of those services/industries/supplies. Just as the financial system will speed faster and faster toward the inevitable wall, so will the energy system keep pretending that nothing is wrong until the lights start to go out, and stay out. Gas is $20 then $30, then rationed, then for business only, then for government only and then… We live in a finite world. The bottom of the barrel is visible through the thin film of oil left in it. But we are looking under the barrel for any that seeped into the ground. Looking for one more ‘fix’.

  2. GregT on Mon, 21st Jan 2013 4:08 pm 

    For those of us that can see the big picture, it is like watching a train wreck in slow motion.

    It will become more apparent to more and more people though, as the train continues to accelerate towards the end of the line.

  3. SOS on Mon, 21st Jan 2013 4:31 pm 

    Unfortunatel for somey, the big picture is one of ample oil supplies. There is no physical shortage of oil. There has never been as much low hanging oil reserves as are emerging now. To ignore those facts is to not see the big picture. The only problem with oil supplies is politics, the politics of shortage, the politics of peak oil.

    This author offers speculation and unsupported opinion as fact. What happens if the world doesn’t run out of oil is just as factual as saying what happens if the world does? We have been running out of oil for a long time:

    In 1939 the US Department of the Interior said that American oil supplies would last only another 13 years.

    In 1949 the Secretary of the Interior announced that the end of US oil was in sight.

    Now there are more recoverable reserves than ever before. What happened to the big picture in 1939 and 1949.

  4. poaecdotcom on Mon, 21st Jan 2013 5:11 pm 

    the peak can only and will only be seen in hindsight, the rear view mirror. 7 years after 1939 and 1949 world production showed we were not near peak. 7 years after 2005 we are still flat lining despite record prices and a doubling of investment.

    Ask yourself, why are we hightailing it to the Artic? and cleaning pelicans?

    The increasing production game is up, that is why.

  5. GregT on Mon, 21st Jan 2013 5:35 pm 

    In 1956 Marion King Hubbert predicted that US oil production would peak in the late 1960s to the early 1970s. He was correct, US oil production peaked in 1970, and it has never returned to the levels seen then.

    Just as a glass of water starts to run out when you begin drinking it, oil started to run out when we began producing it. Whether the glass is half full or half empty is irrelevant. If you keep drinking the water it will eventually run out.

  6. Dmyers on Tue, 22nd Jan 2013 12:34 am 

    So much that we take for granted should not be. So much is riding on the cookie bakery. If only so much complexity were able to pay off like it used to.

  7. BillT on Tue, 22nd Jan 2013 4:51 am 

    SOS…you are right. There IS more oil and gas than we will ever use … because the system that makes recovery possible will crash long before the last barrel or CF is recovered. Loooong before, like in the next couple of years. Then the Petro game is over.

    The oceans contain more gold than has been mined in all of history, but there it will stay because it is not practical to try to recover it. Ditto for many more minerals that will NEVER be recovered for use. EROEI.

  8. luap on Tue, 22nd Jan 2013 1:30 pm 

    SOS..if there is so much low hanging fruit why are we drilling for oil in the arctic or miles down under the sea or destroying large parts of Alberta contaminating water supplies, not to mention contaminating water supplies in the Us by fracking…SOS please try to see the real picture

Leave a Reply

Your email address will not be published. Required fields are marked *