by entropyfails » Thu 26 May 2005, 15:00:48
$this->bbcode_second_pass_quote('highlander', 'I')t seems to me there is a logical disconnect between oil and energy. Oil is mostly consumed for transportation. LPG and coal are used to produce power, with which we make all our widgets. Even when there is no oil, we still will have, what, 10 years of LPG and 100 years of coal left. How we transport these energy sources to their point of use could be problematic.
Yeah, but that ends up circling back on itself. Capitalism works by moving goods from areas of abundance to areas of scarcity. If we own a thing worth X, we can move it to a new area where it is worth more than X, (say Z) and collect the profit Y. (Z = X +Y) That equation forms the basis of our economic system. Y, then, serves as the combination of our profit plus transport costs. Y= P + T.
Now in your view, X will stay the same because we will have the energy to run the power plants. (and the point of how much oil keeps this operational seems important as well, as you mentioned. I think X will rise, pushing it closer to Z and thus eating into Y, alternatively many current “X” values sit far beyond reason and will drop, so the jury seems out on this one) Even then, assuming our product has a normal demand curve, an ever increasing T pushes our profits P to 0. Of course, T won’t increase forever, so we need to figure out at what price for a barrel of oil will cause the profit to go to 0 for most of civilization. Simmons feels that that about $180 serves as the point in the modern economic system. After that point, you need to start doing something else because your current structure doesn’t make a profit anymore. Will oil hit this price and cause the transition after peak? I believe so.
Obviously, this transition has many people worried and worried people tend to react irrationally. If we substitute living plant material for oil because of our irrational fear of change, I think we would accelerate the degradation of our ecosystem. If shortages get improperly allocated, millions could die of starvation. These millions will eat their local environment before they die, however. They also have a tendency to pick up a gun and go to where they can find food. So the combination of economic change along with the current level of human advancement serves as the foundation for this crisis.
For this reason, I feel that posting and discussing about Peak Oil on this site helps. If we decide to start changing our way of life in response to this transition, we have a chance of not eating our planet and killing ourselves in the process. However if we continue to do more of the same, I have yet to see anyone post what full horrors await us on that path. Education serves as the only viable option because we only have to change our beliefs to find a way beyond this.