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China dealing with peak oil and peak energy?

General discussions of the systemic, societal and civilisational effects of depletion.

Re: China dealing with peak oil and peak energy?

Unread postby Anvil » Sat 25 Jun 2011, 01:51:46

China is close to three areas of major energy production Russia, Central Asia and the middle east. This is a big strategical advantage to China being close to these critical areas makes it easier for china to develop these areas using a no strings attached policy and in the short term when oil production starts to decline dramatically in the next 10 years. Chinas desperate investment strategy of energy development will pay big dividends. Allowing china to keep of soom of the lights on to paving the way for a even more desperate bid to switch to alternative energy.
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Re: China dealing with peak oil and peak energy?

Unread postby stephankrasner » Sat 25 Jun 2011, 05:02:31

$this->bbcode_second_pass_quote('GoIllini', '
')LOL, why do I feel like I'm talking with a Jehovah's Witness? Ever since the disappointment of 1975, they've been desperately claiming the world is still ending in just a year or two and I need to drop what I'm doing and give my life to Jehovah to have a small chance of being saved. Only here, the disappointment happened in 2008. You don't really have anything rational to offer for folks to worry about anymore. We've seen how the US responds to high gas prices; lower birth rates. The pre-2008 analysis was fatally flawed in that we assumed people would keep cranking out kids and desperately trying to own SUVs getting mad to the point of violence at folks who would try to stop them. Instead, energy use in the US has decreased 10% since 2005 and birth rates are down, too. If us idiot Americans can do it, surely everyone else can, too.

The bottom line here is that Malthus was right, but we're looking at an S-curve- or more likely, an S-curve with only a very modest jump over capacity. Not exactly a die-off, more like an attrition-off as fewer people have kids.


If they can get it, they will get it. Many people want children, so much so that they are willing to force it on others (as we can see in state legislation being pushed in 6 states). You said earlier that if we could just get fusion going we would be okay, what do you think would happen if we got back to "the good times" and cheap energy was the norm? When times are good, the babies are plentiful. Politicians and companies like babies. They use more resources than at any other point in a human's life. So you can be sure that cheap energy and resources means a larger population land less resources.

$this->bbcode_second_pass_quote('Pops', 'G')ood discussion. Just a couple of factoids FWIW,
All grain crops are grasses and self-pollinated, also soy and cotton.
Half of the bees in the US are used in california almond production
This page says dryland corn rotated with beans is 75% as productive as irrigated and 85% as profitable with half the energy inputs
Energy inputs to the irrigated crop is 12% of input costs using last years costs, twice that of dryland.
40% of all grain grown worldwide is fed to livestock.


True! almond and fruit production contribute a great deal to "bee farming" But I don't think it would be very enjoyable to live without the food they make possible. 50% doesn't seem like much as a percentage, but imagine losing or having a heavy decline in 50% of our rotatable crops? If Golini's argument is that there will be no die off and people will decrease naturally over time that would make producing more food very difficult.

Dryland is where many of the crops in California are. It's artificially green there.
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Re: China dealing with peak oil and peak energy?

Unread postby stephankrasner » Sat 25 Jun 2011, 05:03:26

$this->bbcode_second_pass_quote('GoIllini', '
')LOL, why do I feel like I'm talking with a Jehovah's Witness? Ever since the disappointment of 1975, they've been desperately claiming the world is still ending in just a year or two and I need to drop what I'm doing and give my life to Jehovah to have a small chance of being saved. Only here, the disappointment happened in 2008. You don't really have anything rational to offer for folks to worry about anymore. We've seen how the US responds to high gas prices; lower birth rates. The pre-2008 analysis was fatally flawed in that we assumed people would keep cranking out kids and desperately trying to own SUVs getting mad to the point of violence at folks who would try to stop them. Instead, energy use in the US has decreased 10% since 2005 and birth rates are down, too. If us idiot Americans can do it, surely everyone else can, too.

The bottom line here is that Malthus was right, but we're looking at an S-curve- or more likely, an S-curve with only a very modest jump over capacity. Not exactly a die-off, more like an attrition-off as fewer people have kids.


If they can get it, they will get it. Many people want children, so much so that they are willing to force it on others (as we can see in state legislation being pushed in 6 states). You said earlier that if we could just get fusion going we would be okay, what do you think would happen if we got back to "the good times" and cheap energy was the norm? When times are good, the babies are plentiful. Politicians and companies like babies. They use more resources than at any other point in a human's life. So you can be sure that cheap energy and resources means a larger population land less resources.

$this->bbcode_second_pass_quote('Pops', 'G')ood discussion. Just a couple of factoids FWIW,
All grain crops are grasses and self-pollinated, also soy and cotton.
Half of the bees in the US are used in california almond production
This page says dryland corn rotated with beans is 75% as productive as irrigated and 85% as profitable with half the energy inputs
Energy inputs to the irrigated crop is 12% of input costs using last years costs, twice that of dryland.
40% of all grain grown worldwide is fed to livestock.


True! almond and fruit production contribute a great deal to "bee farming" But I don't think it would be very enjoyable to live without the food they make possible. 50% doesn't seem like much as a percentage, but imagine losing or having a heavy decline in 50% of our rotatable crops? If Golini's argument is that there will be no die off and people will decrease naturally over time that would make producing more food very difficult.

Dryland is where many of the crops in California are. It's artificially green there.
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Re: China dealing with peak oil and peak energy?

Unread postby Outcast_Searcher » Sat 25 Jun 2011, 06:33:52

$this->bbcode_second_pass_quote('GoIllini', ' ')Regardless, long run, as fewer people land jobs, fewer people get married and have kids. The fact is that the US will likely be a somewhat older and smaller population country with more wealth in 30-40 years. What is so bad about that? There will not be some gigantic underclass of starving people or corporate slaves as folks here have always purported; these people will not be born due to the weak economy.

I understand and tend to agree with most of your post. The part I DON'T understand is the idea "with more wealth", which I highlighted from your quote.

Do you mean more wealth per capita? If so, maybe, given your low birth scenario, which I agree with from a demographic pressure point EXCEPT that our deteriorating educational standards tend to push it the other way, so net gains there may be minimal.

However, if you mean actual total wealth for the country -- especially relative to the global economy, I have to strongly but respectfully disagree. Wealth is created by productive work and innovation and capital formation.

Look to much of the Asian emerging economies for highly successful examples of that -- plus their culture and governments are doing FAR better than ours via investing in infrastructure and especially EDUCATION needed to productive and skilled workers.

The U.S., OTOH, becomes more and more the opposite of that. Malinvestment. Malincentives. When it doesn't work, whine a lot and do MORE of each. Rinse and repeat. Unless a credible means of strongly reversing this trend emerges (and I don't see it anywhere) -- I believe we will have far LESS wealth as a proportion of global wealth -- and we will deserve it by sowing the seeds of our own destruction via stupidity and short term greed.

If you doubt it, look at the general investment/spending trends and incentives from the previous administration. And then with this administration, bad has gone to worse (of course, continuing to scapegoat Bush makes great sport but doesn't change the reality). 8O

How do you square this with more wealth in 30 to 40 years, especially given the other problems like food issues which you cite in your post?
Given the track record of the perma-doomer blogs, I wouldn't bet a fast crash doomer's money on their predictions.
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Re: China dealing with peak oil and peak energy?

Unread postby Pops » Sat 25 Jun 2011, 08:10:33

Good discussion. Just a couple of factoids FWIW,
All grain crops are grasses and self-pollinated, also soy and cotton.
Half of the bees in the US are used in california almond production
This page says dryland corn rotated with beans is 75% as productive as irrigated and 85% as profitable with half the energy inputs
Energy inputs to the irrigated crop is 12% of input costs using last years costs, twice that of dryland.
40% of all grain grown worldwide is fed to livestock.
The legitimate object of government, is to do for a community of people, whatever they need to have done, but can not do, at all, or can not, so well do, for themselves -- in their separate, and individual capacities.
-- Abraham Lincoln, Fragment on Government (July 1, 1854)
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Re: China dealing with peak oil and peak energy?

Unread postby GoIllini » Sat 25 Jun 2011, 08:27:43

$this->bbcode_second_pass_quote('kiwichick', '2')008 was just an entree

99% of people , at all levels, are still in denial and time is rapidly running out

we possibly could pull up if we took rapid and radical action, but it looks increasingly like we won't


$this->bbcode_second_pass_quote('', 'g')oillini; have you got any of those drugs going spare?

LOL, why do I feel like I'm talking with a Jehovah's Witness? Ever since the disappointment of 1975, they've been desperately claiming the world is still ending in just a year or two and I need to drop what I'm doing and give my life to Jehovah to have a small chance of being saved. Only here, the disappointment happened in 2008. You don't really have anything rational to offer for folks to worry about anymore. We've seen how the US responds to high gas prices; lower birth rates. The pre-2008 analysis was fatally flawed in that we assumed people would keep cranking out kids and desperately trying to own SUVs getting mad to the point of violence at folks who would try to stop them. Instead, energy use in the US has decreased 10% since 2005 and birth rates are down, too. If us idiot Americans can do it, surely everyone else can, too.

The bottom line here is that Malthus was right, but we're looking at an S-curve- or more likely, an S-curve with only a very modest jump over capacity. Not exactly a die-off, more like an attrition-off as fewer people have kids.

$this->bbcode_second_pass_quote('', 'D')o you mean more wealth per capita? If so, maybe, given your low birth scenario, which I agree with from a demographic pressure point EXCEPT that our deteriorating educational standards tend to push it the other way, so net gains there may be minimal.

Gaah, yes, that was what I meant. More wealth and resources per capita. Bear in mind that the rich and professional class tend to send their kids to private schools or high-quality suburban schools, so as the lower middle class stops having kids, average educational quality is going to increase.

$this->bbcode_second_pass_quote('', 'L')ook to much of the Asian emerging economies for highly successful examples of that -- plus their culture and governments are doing FAR better than ours via investing in infrastructure and especially EDUCATION needed to productive and skilled workers.

The U.S., OTOH, becomes more and more the opposite of that. Malinvestment. Malincentives. When it doesn't work, whine a lot and do MORE of each. Rinse and repeat. Unless a credible means of strongly reversing this trend emerges (and I don't see it anywhere) -- I believe we will have far LESS wealth as a proportion of global wealth -- and we will deserve it by sowing the seeds of our own destruction via stupidity and short term greed.

See, the US really doesn't need to worry about this stuff quite as much when we own 35% of the world's agricultural productivity. For that matter, Australia, Canada, and Argentina don't, either. A country like Germany or Japan or China needs to innovate a whole lot more than the US does.
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Re: China dealing with peak oil and peak energy?

Unread postby babystrangeloop » Sat 25 Jun 2011, 18:57:08

$this->bbcode_second_pass_quote('GoIllini', 'L')OL, why do I feel like I'm talking with a Jehovah's Witness? Ever since the disappointment of 1975, they've been desperately claiming the world is still ending in just a year or two and I need to drop what I'm doing and give my life to Jehovah to have a small chance of being saved.

Absurd. We don't offer any hope like that.

Go play with the Hopkinsites if you want hope.
$this->bbcode_second_pass_quote('GoIllini', 'T')he pre-2008 analysis was fatally flawed in that we assumed people would keep cranking out kids

Um, moving this to the other side of the world fixed what?
$this->bbcode_second_pass_quote('', '[')b]World's baby No. 7 billion could be born in UP
Rema Nagarajan / Times India, TNN / Jan 24, 2011

In the midst of all the handwringing over population explosion in the country, the Indian government might miss preparing for a global record-setting event — the birth of the baby that would take the population of planet earth to the seven billion mark.

$this->bbcode_second_pass_quote('GoIllini', 'T')he bottom line here is that Malthus was right, but we're looking at an S-curve- or more likely, an S-curve with only a very modest jump over capacity. Not exactly a die-off, more like an attrition-off as fewer people have kids.

I have a rock that repels tigers; I haven't seen any tigers yet when I've held it so far.
It also prevents die-offs; I haven't seen any of those yet either.
So your argument is we will be safe because fewer people are having kids in rich countries? *snork* :D
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Re: China dealing with peak oil and peak energy?

Unread postby GoIllini » Tue 28 Jun 2011, 07:27:34

$this->bbcode_second_pass_quote('GoIllini', 'T')he pre-2008 analysis was fatally flawed in that we assumed people would keep cranking out kids

Um, moving this to the other side of the world fixed what?
$this->bbcode_second_pass_quote('', '[')b]World's baby No. 7 billion could be born in UP
Rema Nagarajan / Times India, TNN / Jan 24, 2011

In the midst of all the handwringing over population explosion in the country, the Indian government might miss preparing for a global record-setting event — the birth of the baby that would take the population of planet earth to the seven billion mark.
[/quote]

Not the US's problem. Poor but well-fed Cubans have trouble making it 90 miles to Miami in a boat. How are you going to get thousands of miles across the Atlantic or Pacific to the Americas without gasoline, fish, or other food, as the doomers predict? Continental-Europe-Asia-Africa may be in trouble, but the Americas/Australia/NZ/perhaps the UK will be OK.

Game theory suggests that in the interest of self-preservation, a nuclear war is also unlikely for governments outside Iran.

$this->bbcode_second_pass_quote('', 'I') have a rock that repels tigers; I haven't seen any tigers yet when I've held it so far.
It also prevents die-offs; I haven't seen any of those yet either.
So your argument is we will be safe because fewer people are having kids in rich countries? *snork* :D


Keyword here is "we". In the industrial gasoline-consuming world, people would rather be able to sleep at night about their finances than have kids. You may very well be right that the developing world is screwed. But my theory is born out by the action we're seeing in the markets- gasoline demand from the West is declining as people have fewer kids and buy more efficient cars. Five years ago, the doomer model predicted we'd be in the midst of a civil war right now. My model (you can search my past posts) predicted we'd have a period worse than the '70s but not as bad as the '30s as we adjusted to a world after cheap oil. Now energy prices are declining or at least leveling off without the predicted wars, famines, and die-offs predicted for the west by the doom and gloomers. By Occam's razor, my model offers a much better explanation for what's going on than the conspiracy theories offered by the doomer model.

I'm not saying you should sell your island in Lake Superior yet (I'm still planning a nice garden for mine), just asking that you use the same reason in reevaluating the doomer model that you first used in reevaluting the cornucopian model. Bottom line is that I'm not seeing a serious j-curve here for the west.
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China reeling with peak oil and peak energy?

Unread postby babystrangeloop » Tue 28 Jun 2011, 08:50:52

How China could solve all their energy problems
$this->bbcode_second_pass_quote('', '[')b]China braces itself for severe power shortages; With priority given to residences, businesses are to feel worst effects
BY KEITH BRADSHER / The International Herald Tribune / June 23, 2011

The official newspaper China Daily reported Tuesday that large office buildings in Shanghai were being asked to turn off their air-conditioning for an hour this summer each time the outdoor temperature exceeded 35 degrees Celsius (94 Fahrenheit). In addition to factory blackouts, nonindustrial businesses like stores will be asked to close in Shanghai when the temperature climbs above 37 degrees Celsius (98.6 Fahrenheit), the newspaper said.

$this->bbcode_second_pass_quote('', '[')b]Trains fly on Beijing-Shanghai high-speed railway
Zhu Shaobin / Xinhua / June 27, 2011

Electricity outlets behind seats are provided on the CRH380 EMUs. Passengers can use their laptops or other digital devices without worrying that the batteries will run out.

They should just plug the grid into the train since there would not be any more worry about running out.
http://en.wikipedia.org/wiki/Doublethink
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Re: China reeling with peak oil and peak energy?

Unread postby GoIllini » Tue 28 Jun 2011, 09:29:07

Well, this is what happens when you get too much central planning in an economy.

A Keynesian economist will say China is doing exactly what they're supposed to- building useless stuff in make-work projects. An Austrian will say they're crazy for doing anything. A Chicagoan or certainly a Malthusian will say they're just doing too much and subsidizing the wrong things.

Expect a big crash in coal prices when China's regulatory problems in the electricity market hit the wall of reality. 10% economic growth isn't sustainable over three decades just about anywhere
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Re: China reeling with peak oil and peak energy?

Unread postby babystrangeloop » Tue 28 Jun 2011, 09:47:20

$this->bbcode_second_pass_quote('GoIllini', 'E')xpect a big crash

At least you got part of it right.
$this->bbcode_second_pass_quote('', '[')b]China’s debt ‘time bomb’
Bloomberg News / June 27, 2011

China’s first audit of local government debt found liabilities of 10.7 trillion yuan ($1.7 trillion) and warned of repayment risks, including a reliance on land sales and investment in stocks.

A total of 148 financing vehicles set up by regional authorities already had more than 8 billion yuan in overdue debt, while more than 5 percent of such companies used new bank borrowing to repay existing loans, according to an audit report posted on the National Audit Office’s website.

“Some local government financing platforms’ management is irregular, and their profitability and ability to pay their debt is quite weak,” Liu Jiayi, the country’s auditor-general said today, according to a transcript of his webcast. Some governments have offered illicit guarantees to such companies, while others rely on land sales to help them repay, Liu said.

... UBS AG estimated in a June 7 report that local government debt could be 30 percent of gross domestic product and may generate around 2 to 3 trillion yuan of non-performing loans. Credit Suisse AG economist Tao Dong said it was the biggest “time bomb” for China’s economy.

... The cost of five-year credit-default swaps protecting Chinese government bonds from default jumped 16 basis points this month to 89, according to data provider CMA, which is owned by CME Group Inc. and compiles prices quoted by dealers. ...
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Re: China dealing with peak oil and peak energy?

Unread postby babystrangeloop » Wed 29 Jun 2011, 08:57:56

$this->bbcode_second_pass_quote('', '[')b]Chinese Car Industry Increasingly Powerless
By Bertel Schmitt / The Truth About Cars / June 15, 2011

Japanese carmakers are battling the power shortages after the March 11 tsunami. Often, they are asked why they didn’t move more of their production abroad, like to China. A lot of them did, only to face bigger power problems in China. China is heading for what Reuters calls “its worst power shortage since 2004.” While the lights stay on in Japan, cities in Southern and Eastern China have regular blackouts.

The Guangdong Province city of Zhongshan notified all factories that they will receive electricity only four days a week. According to The Nikkei [sub], “roughly 100 Japanese companies have factories in the city, including autoparts makers and electronics firms. Power cuts at autoparts factories could impact local operations of Japanese carmakers.”

Dongguan, another city in Guangdong Province, has been halting the supply of power to factories for a day or two per week since April. Nearby Guangzhou has started asking firms to reduce their power consumption.

In Shanghai, a main hub of Chinese car manufacture, companies have been notified that the supply of power to their factories will be suspended for two weeks in August.

... I have several of my China suppliers effected by “power off” days. The power is not actually shut-off, you are just required to stop production on designated days. However you can have office staff come in and work. ...


$this->bbcode_second_pass_quote('', '[')b]Police crack down on two strikes in China
By John Chan / WSWS / June 27, 2011

The strike had erupted after the management forced employees to work on a weekend for no extra payment because a power blackout on the previous Wednesday, which had stopped production, had been deemed “a day off”. Given the frequent power outages in recent months, this caused anger among workers, who are regularly forced to do 5-6 hours overtime a day. Their wages are also withheld if they are 10 minutes late for a shift, and they lack basic safety gear such as gloves.
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Re: China dealing with peak oil and peak energy?

Unread postby Anvil » Thu 21 Jul 2011, 18:51:51

China makes break through in nuclear fusion tec by installing a experimental 20 MW fast breeder reactor out side of Beijing recently.

China forward visions of a future with out fossil fuels will help it succeed with out cheap energy. Were other countries USA and Euro country will fail because they have shut down there experimental programs because of pressure from fossil fuel companies who would be put out of business by the cold fusion tec.

http://blogs.wsj.com/chinarealtime/2011/07/21/china’s-nuclear-scientists-unveil-latest-breakthrough/

China invest record 211 billion dollars in green tec in 2010.

http://www.bizmology.com/2011/07/21/glo ... 1-billion/
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Re: China dealing with peak oil and peak energy?

Unread postby Anvil » Tue 26 Jul 2011, 04:01:00

I just found this awesome article on Chinese investment 1 dollar in renewable technology to every three dollars spent on there defence budget. Making the point that the USA spends 1 renewable - 41 dollars military.
http://www.fastcompany.com/1768764/infographic-how-china-is-soaring-past-the-us-clean-tech-industry?partner=gnews
I love this fresh totally unheard of comparison between renewable and defence budgets.
This makes a vivid point in my mind that china spends nearly as much on military vs renewable and if this isent a sign of a nation dealing with peak energy then i dont know what is.
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Re: China dealing with peak oil and peak energy?

Unread postby Anvil » Mon 01 Aug 2011, 18:54:36

http://www.chinadaily.com.cn/bizchina/2011-07/29/content_13008255.htm

http://www.ft.com/cms/s/0/50f42d70-bc42-11e0-80e0-00144feabdc0.html#axzz1TopWGVgd

China is making ground braking progress in developing renewable solar power by recently stating that its is implementing a new feed in tariff solar panel incentives. Like the the tariff system already available for its wind turbine program sense 2009. That has seen china become the worlds largest installer and export of wind turbines. These new incentives for the solar industry should go away toward achieving Chinas 2020 goal of 15% renewable and should reduce the summer black out in China in the long term helping its economy remain competitive. This deal comes at a time were the Euros are reducing its incentive to make renewables says the article. The Chinese are well and truly showing up the rest of the world in there radical programs to deal with peak energy.

China is not closing it eyes to the future like the rest of the world.
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