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Back to the city

Discussions about the economic and financial ramifications of PEAK OIL

Re: Back to the city

Unread postby swingbolder » Tue 08 Aug 2006, 17:18:24

$this->bbcode_second_pass_quote('TommyJefferson', '
')They won't be fleeing to anywhere. How would they with no gasoline? They will starve in place.


They'll flee (or try to anyway) the same way people do in 3rd world countries: on foot, with a baby in one arm and bags in the other.

It happens all the time in refugee type situations.
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Re: Back to the city

Unread postby marko » Tue 08 Aug 2006, 20:46:12

$this->bbcode_second_pass_quote('swingbolder', '')$this->bbcode_second_pass_quote('TommyJefferson', '
')They won't be fleeing to anywhere. How would they with no gasoline? They will starve in place.


They'll flee (or try to anyway) the same way people do in 3rd world countries: on foot, with a baby in one arm and bags in the other.

It happens all the time in refugee type situations.


Except that 1) Refugees are generally fleeing TO somewhere that they think will be safer or have food. Where would that be for people in the urban Northeast, for example? Upstate New York is more than a week's walk from Boston or New York for an able-bodied person. How would that person feed him/herself along the way? There are still a few dairy farms and apple orchards in New England, but I don't think that masses of people here will kid themselves that there are enough apples or beef within a couple days' walk to keep them alive for long.

2) Fleeing on foot works only along routes with ample drinking water, because water is too heavy to carry long distances across arid landscapes. That means no escape for people in southern California, for example.

3) Most Americans drinking from streams will quickly get sick as their guts are not acclimated to the local microbes. Also, most Americans are not accustomed to serious exercise or sleeping outdoors and will not be able to go 30 miles before they are in too much pain to go any further.
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Re: Back to the city

Unread postby frankthetank » Tue 08 Aug 2006, 23:16:10

Marko~

They'll come back from Iraq and they won't even have to change outfits!
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Re: Back to the city

Unread postby dinopello » Wed 09 Aug 2006, 00:04:42

$this->bbcode_second_pass_quote('MrBill', '')$this->bbcode_second_pass_quote('Ludi', '')$this->bbcode_second_pass_quote('green_achers', ' ')it seems that humans have always formed themselves into cities


Oh hogwash. The MINORITY of human cultures have built cities, and only during the past 10,000+ years.


That makes me laugh.


Me too. It is meaningless unless you have a common agreement about what constitutes a "city" and what constitutes a "culture".
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Re: Back to the city

Unread postby TommyJefferson » Wed 09 Aug 2006, 10:41:27

$this->bbcode_second_pass_quote('marko', 'H')owever, the surplus population of New Orleans,...


Ouch! That would be funny if it weren't true.

I know most people would consider me "surplus population", and plan accordingly. :)

Towns south of me were deluged by unfriendly refugees after hurricane Rita. The country boys there joke that if something like that happens again, they intend to blow the bridges on US59 and I-45 which cross the San Jacinto river.

I joked that those of us north of Kingwood and Conroe sure would appreciate it.

We were joking of course. I wish to state publicly that I would never support or have knowledge of such acts.
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Re: Back to the city

Unread postby Zardoz » Wed 09 Aug 2006, 13:37:18

$this->bbcode_second_pass_quote('TommyJefferson', '.')..Imagine 24 million people in Southern California suddenly without running water or electricity to pump gasoline into trucks for resupply of grocery stores...


That's exactly my point. That isn't going to happen.

The totalitarian government we'll have in the future will take whatever measures need to be taken to keep the water running and the power on right to the very bitterest Mad Max end.

Please describe a credible scenario in which there is "suddenly" no more water or power for the great urban centers. Please describe how New York City dwellers could wake up one morning with no water and no electricity.
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Re: Back to the city

Unread postby Pops » Wed 09 Aug 2006, 14:23:35

I think it is quite plausible that exurb commuters will decide to move closer to work at some point after buying a smaller cars doesn’t help – that is as long as they can find someone to buy their hobby-horse farm.

But what of the folks in town that can no longer find work? I think it is pretty silly to think they are going to sit and starve on the street, become rampaging ghouls or turn to eating grubs in the park let along spreading out like locusts across the countryside - unless they are looking for part-time farm work.

They will do what people in straits have always done and move in with family or friends – they did it during the depression, heck, my kids did it when they were hard up. Long before there is no fuel to be had, people will have lost jobs and homes and made other arrangements. They will fill up the houses of the people they know who still have a job – there will be jobs by the way.

I think if you base your assumptions on waking up one fine day and a majority of the population has expired overnight you are going to be disappointed. Likewise, fleeing from a hurricane doesn’t sound apt either. There is no evacuation-warning siren for unemployment or inflation because they don’t strike overnight. There will be no mass exodus causing traffic jams, no lack of electricity to pump gas in the face of an oncoming permanent recession.

I’m sure there will be migration as in the depression when people in the south went north to work in the automobile plants and Okies went west to work in the fruit or in the defense plants, though I have no guess where they will be going. The weren’t looking for food but for work. Yea some of those folks might rustle a chicken or watermelon if they are hard up but you can bet they wouldn’t get too many miles before facing a little homegrown justice if they did much worse.

As far as totalitarian government, has anyone noticed a shift in acceptance of our current administrations attempt to take more power to the executive branch? Even in a time where people ignore politics and willingly trade freedoms for security I sense a backlash.

Again during the depression the government worked to help people with make-work programs etc., they didn’t confiscate their last jar of peanut butter or round them up in reeducation camps. You may not agree that the programs created during that time or during the oil embargoes were sound and I won’t argue that they didn’t do more harm than good in many instances. But at the time the rich and powerful and monopolies had more power than today and still the majority of programs I believe were aimed at restarting the economy and rebuilding employment.

OK, I feel better!
:)
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Re: Back to the city

Unread postby Dreamtwister » Wed 09 Aug 2006, 14:35:18

$this->bbcode_second_pass_quote('Zardoz', 'P')lease describe a credible scenario in which there is "suddenly" no more water or power for the great urban centers. Please describe how New York City dwellers could wake up one morning with no water and no electricity.


Let's start with the ones that have already happened:

2005 Kashmir earthquake

$this->bbcode_second_pass_quote('', 'M')ost of the affected people lived in mountainous regions with access impeded by landslides that blocked the roads, leaving an estimated 3.3 million homeless in Pakistan. The UN reported that more than 4 million people were directly affected, prior to the commencement of winter snowfall in the Himalayan region. It is estimated that damages incurred are well over US$ 5 billion


If something like that were to hit...let's say...San Francisco (because it's so geologically stable :razz: )... Well, that was only a 7.6. The 1906 San Francisco quake was a 7.8, and look what they say about that:

$this->bbcode_second_pass_quote('', 'T')he earthquake and resulting fire would be remembered as one of the worst natural disasters in the history of the United States, comparable in devastation to the Galveston Hurricane of 1900 and Hurricane Katrina in 2005.


Katrina

$this->bbcode_second_pass_quote('', 'A')lthough power failures prevented accurate measurement of wind speeds in New Orleans, there were a few measurements of hurricane-force winds. From this the NHC concluded that it is likely that much of the city experienced sustained winds of Category 1 or Category 2 strength. However, wind speeds increase with height, and therefore the winds experienced on upper floors of high rise structures were likely to have been significantly higher.

*snip*

Most of the major roads traveling into and out of the city were damaged. The only routes out of the city were the westbound Crescent City Connection and the Huey P. Long Bridge, as the I-10 twin span bridge traveling eastbound towards Slidell, Louisiana had collapsed. The Lake Pontchartrain Causeway only carried emergency traffic.


2003 North American blackout

$this->bbcode_second_pass_quote('', 'T')he 2003 North American blackout was a massive power outage that occurred throughout parts of the northeastern United States and eastern Canada on Thursday, August 14, 2003. Although not affecting as many people as the later 2003 Italy blackout, it was the largest blackout in North American history. It affected an estimated 10 million people in the Canadian province of Ontario (about one-third of the population of Canada), and 40 million people in eight U.S. states (about one-seventh of the population of the U.S.). Outage-related financial losses were estimated at $6 billion USD.

2003 Italy blackout

$this->bbcode_second_pass_quote('', 'T')he 2003 Italy blackout was a serious power outage that affected all of Italy—except the island of Sardinia—for 9 hours and part of Switzerland near Geneva for 3 hours on 28 September 2003. It was the largest blackout in the series of blackouts in 2003, affecting a total of 56 million people. It was also the most serious blackout in Italy in 20 years.

Then there's the hypothetical:

Solar flares

$this->bbcode_second_pass_quote('', 'T')he space weather disturbance that produced this devastation was a great magnetic storm. Great magnetic storms are awesome disturbances in the near-Earth space environment that occur relatively rarely. The last five occurred in February 1986, March 1989, March 1991, November 1991 and May 1992. The frequency of large and great storms increases markedly as we enter the maximum in the solar activity cycle.

Not mentioned on that page was the magnetic storm in 2003

$this->bbcode_second_pass_quote('', 'H')e points out that during the last "solar max," which lasted from 2000 to 2003, solar storms temporarily knocked out power in the northern parts of Sweden and Canada and destroyed a satellite that was used to verify credit card payments at numerous gas stations in the United States. Air transportation also can be disrupted when solar radiation interferes with the operation of Global Positioning System satellites, or when aircraft that take short cuts over the North Pole have to take longer routes to prevent passengers and crew from being exposed to intense X-ray radiation.

And then there's Terrorist attacks, Cascading failure, meltdowns...need we continue?

There are plenty of scenarios in which a major population centre could be suddenly rendered without power and water. The question is, at what point do the authorities finally throw up thier hands and say "It's not worth the expense of saving"?

If the response to Katrina is any indication of future events, I'm inclined to think we're already at that point.
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Re: Back to the city

Unread postby emersonbiggins » Wed 09 Aug 2006, 14:44:40

$this->bbcode_second_pass_quote('Pops', '
')Again during the depression the government worked to help people with make-work programs etc., they didn’t confiscate their last jar of peanut butter or round them up in reeducation camps. You may not agree that the programs created during that time or during the oil embargoes were sound and I won’t argue that they didn’t do more harm than good in many instances. But at the time the rich and powerful and monopolies had more power than today and still the majority of programs I believe were aimed at restarting the economy and rebuilding employment.

OK, I feel better!
:)


Two points: The Great Depression a) occured during a decidedly more populist political era and b) occured simultaneously during a ramping-up of domestic oil production, the bounty of which manifested itself in the huge construction make-work projects of the time. While I don't doubt populism's ability to make a return to a depressed population, we will surely not have the resources to devote to make-work projects, unless all other economic activity is essentially halted (which could happen).

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Re: Back to the city

Unread postby rwwff » Wed 09 Aug 2006, 14:44:41

$this->bbcode_second_pass_quote('pops', 'I') think it is quite plausible that exurb commuters will decide to move closer to work at some point after buying a smaller cars doesn’t help – that is as long as they can find someone to buy their hobby-horse farm.


This is where I diverge from the folks that say back to the city... I think it is fair to say that most folks who are commuting long distances right now are typically driving vehicles that get 20mpg, and cost an addition 30-40 cents per mile in maintenance, depreciation, insurance and expendables. If gas goes to $6 per gallon, with the same vehicle that only takes the costs from 50 cents per mile to 65 cents per mile. If gas goes to $20 per gallon, then we're getting somewhere on cost, taking it up to $1.30 per mile. However, lets now looks at the extreme adaptation, if that person goes out and buys a scooter that gets 80 miles per gallon, and has an additional cost of 20 cents per mile, that takes it all the way back to 45 cents per mile.

So the limit choices are between staying on the hobby-farm where they could grow their own food if they wished while riding a scooter to work; or moving in to a 1 bedroom apartment downtown while being stuck with public transportation and taxicabs.

This is the basic reason why I do not believe it is possible for gas prices to get so high that people will choose to abandon those 5 acre hobby farms. 30 mile out subdivision houses... maybe, since they don't really loose anything by returning to city core life, even then I kinda doubt it.
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Re: Back to the city

Unread postby Pops » Wed 09 Aug 2006, 14:57:35

Don’t say that, I have my eye on that big McMansion down the road for my future hog barn!
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Re: Back to the city

Unread postby azreal60 » Wed 09 Aug 2006, 15:00:14

Never thought I'd be agreeing whole heartedly with Rwwff, but he's quite correct. It's simple really. America has so much slack in our saleries, that we could really cut alot of consumer spending before we would have problems with paying for gas for his senario. Yes the really long commuters would have problems. And yes, the people who are already on the edge will go over first. But this is why I'm so convinced we won't see huge drops in demand. They will make every effort to conserve. But by and large people are locked into where they live. And they will continue to work where the jobs are, in the cities by and large. So yes, we will continue to consume most of what we do now, market price increase or no. We'll just have to be creative and people will move to cities that are creative with their public transport and their policies with bikes and other forms of non care transport. This will make the difference.

Which honestly, makes peak oil all the more likely to happen faster. We Can't reduce demand, it's built into our infrastructure.
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Re: Back to the city

Unread postby Dreamtwister » Wed 09 Aug 2006, 15:04:06

$this->bbcode_second_pass_quote('rwwff', 'T')his is where I diverge from the folks that say back to the city... I think it is fair to say that most folks who are commuting long distances right now are typically driving vehicles that get 20mpg, and cost an addition 30-40 cents per mile in maintenance, depreciation, insurance and expendables. If gas goes to $6 per gallon, with the same vehicle that only takes the costs from 50 cents per mile to 65 cents per mile. If gas goes to $20 per gallon, then we're getting somewhere on cost, taking it up to $1.30 per mile. However, lets now looks at the extreme adaptation, if that person goes out and buys a scooter that gets 80 miles per gallon, and has an additional cost of 20 cents per mile, that takes it all the way back to 45 cents per mile.


Interesting cost analysis. I have a question, though.

How many people are going to drive a scooter to work in...say...Denver, especially at a time when government budgets might not be able to afford things like snowplows?

Actually, I have another question.

Even if those people do switch to scooters, will they still be able to afford food, which also has to be trucked in over those same poorly maintained roads? What about heating oil?

No, I'm afraid that whether everyone huddles into the cities, or dispurses over the countryside, the commute will still have to die.
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Re: Back to the city

Unread postby marko » Wed 09 Aug 2006, 15:04:25

$this->bbcode_second_pass_quote('Dreamtwister', '')$this->bbcode_second_pass_quote('Zardoz', 'P')lease describe a credible scenario in which there is "suddenly" no more water or power for the great urban centers. Please describe how New York City dwellers could wake up one morning with no water and no electricity.


New York suddenly without power is easy to imagine. It has happened before. (http://en.wikipedia.org/wiki/2003_North ... a_blackout) It is likely to happen again as natural gas shortages force power-plant shutdowns.

New York suddenly without water is harder. The system is 95% gravity-fed (http://www.nyc.gov/html/dep/html/history.html) and does not require power to supply most customers. The only way to shut it down would be to blow up multiple aqueducts, which would require a lot of coordination and explosives. It is hard to imagine.
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Re: Back to the city

Unread postby emersonbiggins » Wed 09 Aug 2006, 15:09:23

$this->bbcode_second_pass_quote('azreal60', 'N')ever thought I'd be agreeing whole heartedly with Rwwff, but he's quite correct. It's simple really. America has so much slack in our saleries, that we could really cut alot of consumer spending before we would have problems with paying for gas for his senario.


It's exactly this "extraneous spending" that's holding this economy together. You cut consumer spending, you cut jobs: plain and simple. More money for Joe Sixpack's commute means he's less likely to eat out, tip as much, buy that plasma TV or move to a larger house. These are not trivial decisions in the least. In fact, collective decisions like these are what will sink the economy in short fashion.

$this->bbcode_second_pass_quote('azreal60', 'W')hich honestly, makes peak oil all the more likely to happen faster. We Can't reduce demand, it's built into our infrastructure.


Can't argue with that; such is the economy built on ideas of perpetual growth.
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Re: Back to the city

Unread postby Dreamtwister » Wed 09 Aug 2006, 15:25:12

$this->bbcode_second_pass_quote('marko', 'N')ew York suddenly without water is harder. The system is 95% gravity-fed (http://www.nyc.gov/html/dep/html/history.html) and does not require power to supply most customers. The only way to shut it down would be to blow up multiple aqueducts, which would require a lot of coordination and explosives. It is hard to imagine.


That link is out of date, but I found the relevant information here.

Judging by the information found there though, I would say New York's water system is fairly unique in it's stability. Other major cities (particularly cities in Nevada and Arizona) are less resiliant. It's not hard to imagine a sustained drought rendering Las Vegas uninhabitable. Then there's the whole issue of security at Hoover Dam...
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Re: Back to the city

Unread postby Pops » Wed 09 Aug 2006, 15:29:36

So 15 cents a mile at 40 miles round trip per day (which is what my commuting neighbors are driving) is $6 bucks a day, $30/week, $120/month, $1,140/year.

Add a doubling of propane, maybe 800 gallons at an additional $3/gal is another $2,400.

Electricity will continue to go up as well

And an up tick in interest rates on the cards, general inflation on everything else, more than likely stagnating wages, falling RE values and banksters getting wise and tighten up causing an inability to continue borrowing…

I don’t think it’s just gas prices we are worrying about.
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Re: Back to the city

Unread postby rwwff » Wed 09 Aug 2006, 15:30:03

First off, I'd never pick any place that gets innundated with that slimy, wet, white stuff like Denver. But lets run with Denver for the purposes of discussing your points anyway.

$this->bbcode_second_pass_quote('Dreamtwister', 'I')nteresting cost analysis. I have a question, though.
How many people are going to drive a scooter to work in...say...Denver, especially at a time when government budgets might not be able to afford things like snowplows?


If the government can not afford to plow the state highways, there will be no jobs worth having in the city.

$this->bbcode_second_pass_quote('', 'A')ctually, I have another question.
Even if those people do switch to scooters, will they still be able to afford food, which also has to be trucked in over those same poorly maintained roads? What about heating oil?


Heating oil is an unnecessary luxury, as is AC. When its super cold, everyone in the hobbyfarm house will have to sleep in a small room with a wood burning stove. I apologize ahead of time if I don't think this is a spectacular hardship.

Food.. If they haven't learned to can, freeze, store, and/or dehydrate food by then, what the heck did they go buy a house on acreage for in the first place? HobbyFarm five acres plus some middle class job is more than adequate to keep a family fed and more or less comfortable.

$this->bbcode_second_pass_quote('', 'N')o, I'm afraid that whether everyone huddles into the cities, or dispurses over the countryside, the commute will still have to die.


My point is that when it becomes so expensive that the commute will have to die for the reasons you specified, jobs in the cities will be an ancient, distant memory. ie, the jobs will die long before the commute becomes untennable.
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Re: Back to the city

Unread postby marko » Wed 09 Aug 2006, 15:30:26

$this->bbcode_second_pass_quote('rwwff', 'T')his is where I diverge from the folks that say back to the city... I think it is fair to say that most folks who are commuting long distances right now are typically driving vehicles that get 20mpg, and cost an addition 30-40 cents per mile in maintenance, depreciation, insurance and expendables. If gas goes to $6 per gallon, with the same vehicle that only takes the costs from 50 cents per mile to 65 cents per mile. If gas goes to $20 per gallon, then we're getting somewhere on cost, taking it up to $1.30 per mile. However, lets now looks at the extreme adaptation, if that person goes out and buys a scooter that gets 80 miles per gallon, and has an additional cost of 20 cents per mile, that takes it all the way back to 45 cents per mile.


Your costs per mile look affordable, until you multiply them by the number of miles people are actually driving. Houses sold in the recent housing boom have often been 50 miles or more from the nearest urban center. Multiply your numbers by 100 (roundrip commute) and then by 20 work days per month. The current commute, at 50 cents per mile, adds up to $1,000/month. That is serious money, on top of a mortgage. How many people have been swinging this just by refinancing their house every time it appreciates? At $1.30 per mile, the monthly cost goes to $2,600. That probably exceeds the median take-home pay.

And this is assuming gas at "only" $20. I don't think that it will get much higher than that in the next 10 years, but what about 20 or 30 years? Gasoline is likely to become a substance like fine wine that is affordable only to the very rich, after the military and security services have claimed their share.

Considering that many dual-income households will be losing one of those incomes as the economy shrinks and that the price of food and anything else requiring transport will rise relative to wages, I just don't see how most households will be able to keep this up. Either they stay where they are and take up full-time intensive gardening and part-time local odd jobs or they move closer to their money job.
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Re: Back to the city

Unread postby rwwff » Wed 09 Aug 2006, 15:35:56

$this->bbcode_second_pass_quote('Pops', 'D')on’t say that, I have my eye on that big McMansion down the road for my future hog barn!


He may have his eye on one of your five acre fields to plant his Post Peak garden on.

In a more neighborly way, you might be able to get him to pay you current retail prices for that beef you're raising, providing you do the slaughter, butcher, wrap'n'pack trick for him. Could be some income sittin down there in that McMansion...
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