by Subjectivist » Mon 14 Apr 2014, 09:12:17
$this->bbcode_second_pass_quote('FloridaGirl', 'L')ike Gail, I've been thinking that our global energy curve could be a shark fin for 4 reasons.
1. Consider Hubbert's bell shaped curve for global oil. There is a finite amount of economically producible oil in the world so the area under the curve is fixed. Hubbert's theory for a field or a group of fields assumes that it is produced as fast as possible. Now consider that the left side of the global oil curve has been limited by demand. Producers like those in OPEC could have produced more. So the left-hand slope of the oil bell curve is lowered and since the area under the curve is fixed, the whole thing is shifted to the right which raises the possible peak and makes the right hand side steeper.
2. As the peak is approached and the price of oil increase (it basically quadrupled), demand gets capped and the peak is flattened. So then the oil that would have been produced in the cap of the curve is shifted to the right which causes the right hand side to get steeper again.
3. What really matters to the economy is the net energy produced. So think about subtracting all the energy it took to produce, refine and deliver the resulting oil products. On the left hand side of the curve, the energy required is relatively small but it increases as the easy and best quality oil is produced. This makes the right hand side of the net energy oil curve even steeper.
4. Our economy is based on a Ponzi like financial system that requires growth. Growth in net energy, of which oil is a large part of, is required for growth of the fundamental economy (see
http://www.peakprosperity.com/crashcourse). Without growth in the fundamental economy, the system collapses. I believe we are in the beginning stages of that global collapse and the extraordinary money printing by the central banks of the world is evidence of that collapse. At some point, the money printing will no longer postpone the inevitable and the system will cease to operate. This almost happened in 2008. Consider what would result when every bank fails. No company can pay their workers or buy materials. Ships will no longer deliver goods because they cannot be paid for. That alone will cut the US's oil supply in half. There'll be no food in the stores and no gas in the gas stations. How will the US producers keep producing if the companies cannot pay for supplies and the workers can't find gas to get to work? The same goes for coal and natural gas so there'll be massive electricity shortages too. This will all result in an even sharper drop off in the oil curve and net overall energy as well.
I hope my theory isn't so but I'm afraid it is. I don't think the right hand side of the curve will be smooth since I think that people will figure out how to restart the system but it will run up on a lower ceiling of energy availability and drop again resulting in a jagged up and down decline.
But this is my hope for climate change as it appears that humans in general are not smarter than yeast and we will not control our consumption. I understand that the climate will probably continue to worsen anyway for a while but it should be "less bad" if we reduce our carbon emissions. My greatest hope is that we are really smarter than yeast and will control ourselves and that is what I live and advocate.
That all sounds plausible up to a point, and to be perfectly honest the part that scares me the most is the #4, global economic collapse. The thing is most people deny it even being a possibility, either because they just do not know how fragile the system is, or they trust the people in charge to prevent it from happening. So long as the economy stays functional the Government can institute rationing to vital industries and personel. Say farming, energy extraction, hospitals, government workers military/police/fire/ambulance and food delivery to population centers.
If the economy collapses organization of limited resources disappears with it and vital services stop except on the most local level. Nurses, Doctors, Police and Fire will still work on the local level so long as the local government can provide them with food for their families. Nobody wants civilization to fall, and that includes the police and oher vital services, but none of them will be sticking around if their kids are going hungry or are at risk.