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Have We Been Wrong?

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

Re: Have We Been Wrong?

Unread postby TonyPrep » Sat 06 Jan 2007, 01:34:33

$this->bbcode_second_pass_quote('TigPil', 'S')trategic metals can always be recycled although the cost of extracting the materials from manufactured goods may be substantially higher than mining.
May be, but I doubt it. We've picked the low hanging fruit of metal ores. They are becoming poorer quality and more costly to mine and process. I doubt that recovering and recycling the already processed metals will be even higher, never mind "substantially higher", than mining and refining are now. But, I don't know for certain.

Of course, I would expect there to be plenty of metal in the forms we would want it, anyway. Why wouldn't there be? What forms would you want it in, that it isn't in already?

I agree with your comments about water and arable land, though.
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Re: Have We Been Wrong?

Unread postby TigPil » Sat 06 Jan 2007, 04:57:10

With respect to metals, I was thinking of studies like this:

http://www.edie.net/news/news_story.asp?id=11010&channel=0

But I think those estimates are based on a population of 6 billion and growing so it may not be much of a concern for a post-peak world.

$this->bbcode_second_pass_quote('Gazzatrone', 'I')s it reasonable to assume that when the poor die of so will the rich that buy the food the poor grow?


As I tried to demonstrate earlier, most of the developed world can produce enough food to feed itself from a caloric perspective. Disruptions in the developing world will impact the variety of what will be available. For example, since there are no developed tropical nations, bananas, pineapples, coconuts, coffee and chocolate may not be readily available. I'm sure the list will be more extensive but I don't know the specifics of current production patterns to give an exhaustive list.

ShroedingersCat: My academic background is in pre-industrial economic history, with some focus on historical demography. I've spent about 10 years working in a variety of capacities in the financial markets, either at hedge funds or independent research boutiques. I have been aware of Hubbert's Peak Oil ideas since the late 90s and have recently refocused on them, which led me to this site.
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Re: Have We Been Wrong?

Unread postby Revi » Sat 06 Jan 2007, 10:28:13

[/quote]

Is it reasonable to assume that when the poor die of so will the rich that buy the food the poor grow?

I think we can put ourselves back on track with this thread concerning EROEI. Especially when you apply it to food production.[/quote]

I think it's already happening. The idea of turning all our excess corn into car fuel will kill lots of people who use that corn to make tortillas in Mexico and Central America. What are they going to use? The land is all taken up down past the middle of Mexico with subsistence farming, and market growing. There is no way they can support Mexico City off of what is grown around there. The extra corn must come from the US. They buy that corn with money that comes from things like oil production, and maybe money derived from industries. When the price of corn goes up, people starve. Simple as that.

There's an old saying: When the US sneezes, Mexico catches pneumonia. The poorer nations will feel it first, but we're next.
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Re: Have We Been Wrong?

Unread postby coyote » Sat 06 Jan 2007, 23:35:46

$this->bbcode_second_pass_quote('gego', 'I')t sounds to me like we are quibbling over the exact details of a horror show.

That's what we do here. :)
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Re: Have We Been Wrong?

Unread postby coyote » Sat 06 Jan 2007, 23:45:30

$this->bbcode_second_pass_quote('Revi', 'T')hey buy that corn with money that comes from things like oil production

Yeah. And now Cantarell's kaput.
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Re: Have We Been Wrong?

Unread postby WildRose » Sun 07 Jan 2007, 00:48:57

$this->bbcode_second_pass_quote('TigPil', '
')
As I tried to demonstrate earlier, most of the developed world can produce enough food to feed itself from a caloric perspective. Disruptions in the developing world will impact the variety of what will be available. For example, since there are no developed tropical nations, bananas, pineapples, coconuts, coffee and chocolate may not be readily available. I'm sure the list will be more extensive but I don't know the specifics of current production patterns to give an exhaustive list.


TigPil, I have a couple of concerns that I'm hoping you can address. You stated above that the developed world should be able to produce enough food to sustain itself with the exception of having the kind of variety it enjoys today.

I have some doubts about the ability of North Americans to produce all the food they'll need when they can't rely on oil to do so. The large cities in Canada and the northern US have relied upon certain areas in the US for the majority of their fruits and vegetables; a look around the supermarket tells us that many vegetables come from California, even some varieties that do grow in the more northern locations. Why is that? Is it because in the northern areas we have shorter growing seasons and would not be able to produce the amounts of crops that we need for our large cities year-round? Or is it just because we've decided to buy these fruits and vegetables from the southern US states and would, in fact, be able to grow what we need if we decided to? I know that in Alberta, for example, we can't grow kiwis and grapes and have to buy these elsewhere; but would we, and other highly-populated northern cities, be able to grow enough of the crops that do grow locally to feed our burgeoning populations?

Distribution is another consideration. If trucks can't bring the goods, perhaps the railway will be ramped up enough to deliver the products everywhere. If not, we will have to rely on whatever we can produce locally.

That brings me to the question of whether growing conditions locally will be adequate. For example, in Ontario, with a large population, or northern US cities, will there be enough land locally with enough soil that is not damaged to grow produce for millions? Of course, growing everything locally will also mean that we are at the mercy of our climate - a cool, rainy summer would mean a significant shortfall in the crops produced, whether those crops are vegetables or grains.

In the southern locations in the US, aquifer depletion could affect the ability to produce enough food locally, given that those areas are more highly populated now than they ever have been before.

I hope this all makes sense. Your thoughts? Anyone else?
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Re: Have We Been Wrong?

Unread postby TonyPrep » Sun 07 Jan 2007, 01:01:44

$this->bbcode_second_pass_quote('WildRose', 'O')f course, growing everything locally will also mean that we are at the mercy of our climate - a cool, rainy summer would mean a significant shortfall in the crops produced, whether those crops are vegetables or grains.
Good point.

In Australia, because of a prolonged drought, production of the three main resource crops - wheat, barley and canola - will be cut by more than 60 percent this year.
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Re: Have We Been Wrong?

Unread postby TigPil » Sun 07 Jan 2007, 18:57:10

WildRose: Those are definitely some interesting questions.

The current agricultural production patterns have more to do with industrial agriculture than the specific suitability of crops to specific regions. It is economically more efficient for one company to raise all the lettuce they produce in California rather than raise it in a variety of different locations. Thus the agricultural output of specific states and regions has grown more and more specialized. Rising transport costs will reverse this pattern as the economic distance between points of consumption and production increases, regional production will become more diversified.

However, there are absolute limits that are related to climate and geography. Not all areas are suitable for producing every variety of crop. This has been historically the case and one can compare the culinary traditions of the North European countries (England, Germany, Scandinavia, Russia) with the South European ones (Italy, Spain, France) to see the impact of food diversity on culinary traditions. The same will hold true in North America, with regions further north having a lower diversity in terms of local production (assuming there is almost no interregional trade) than those closer to the equator. Seasonal availability will also become a more important factor, as currently certain products are obtained from the southern hemisphere during our winter season.

When I say that North America can produce enough food, I am only focusing on caloric quantity and not dietary diversity. The cheapest and most efficient production will be in the form of grains (wheat and corn mostly, with rye, barley and millet for some diversity and some rice production further south). Vegetables of one type or another can grow in the full climatic range of North America, although colder parts may be limited to root vegetables. Fruits will be far more problematic as many of them prefer warmer climates that only prevail in some regions. So while it will be possible to provide 2000 calories per person in North America after peak oil, the diversity and quality of that diet may be far different from what it is today.

Distribution from countryside to cities will also be a problem and will depend on how transportation develops. Before the use of oil, railroads were the main source of food transport from the agricultural heartland to the more densely populated northeast cities of the US. Agriculture may become less mechanized and therefore more labor intensive so people may resettle from the cities to the countryside to some extent, helping relive the pressure. But overall I imagine food production and distribution will be prioritized over most other economic expenditures and the food production and distribution networks will continue to function in a more limited capacity.
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Re: Have We Been Wrong?

Unread postby Ludi » Sun 07 Jan 2007, 19:12:59

TigPil, it's not clear to me how the agricultural system will be supported financially during this unending collapse.

You say that food production and distribution will be prioritized and I'm sure that's true, but once people spend 100% of their income on food, there's no more they can spend.
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Re: Have We Been Wrong?

Unread postby JPL » Sun 07 Jan 2007, 20:38:09

$this->bbcode_second_pass_quote('Ludi', 'T')igPil, it's not clear to me how the agricultural system will be supported financially during this unending collapse.

You say that food production and distribution will be prioritized and I'm sure that's true, but once people spend 100% of their income on food, there's no more they can spend.


Ludi, TigPil,

I appreciate what you are both saying but I think the core problem is social rather than technical.

Fertile land in England immediately prior to the Industrial Revolution produced (up to) an average of 2 and-a half tons of grain-equivalent per acre. These days the same area of land produces about one ton.

300 years ago, in Europe, over 50% of the population worked on (or nearby) the land. Now that figure is nearer 2%. So although the yield-per acre has gone down, the yield per unit of economic input (man-power) has gone massively up.

I totally agree with Ludi that the social/financial set-up these days is not going to deal very well with the changes that are necessary (understatement of the year, I think!) - nevertheless the work CAN be done.

The reason why it WILL be done is simple - we have 6 billion people to feed. It won't be done overnight, but it will be done - there is simply no choice - we all have to eat ;o)

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Re: Have We Been Wrong?

Unread postby Ludi » Sun 07 Jan 2007, 21:21:06

Yes, I agree it is a serious social issue. Very few people in industrialized countries grow food.

It is also a fact you cannot learn to grow food while you are starving to death.
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Re: Have We Been Wrong?

Unread postby Revi » Sun 07 Jan 2007, 21:38:49

We can relearn how to grow food, but it will take at least a generation. Some of us are doing it already. A garden is an amazing thing to start with. Not much investment, some work to plant and weed, but what a payoff! Fresh tomatoes are a wonderful thing. Asparagus fresh from the garden is so tasty. It will take a change in most people's mentality, however. I think most will just die. I'm putting a fence around my garden, and it's not just to keep the groundhogs out!
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Re: Have We Been Wrong?

Unread postby WildRose » Mon 08 Jan 2007, 00:02:20

$this->bbcode_second_pass_quote('TigPil', 'W')hen I say that North America can produce enough food, I am only focusing on caloric quantity and not dietary diversity. The cheapest and most efficient production will be in the form of grains (wheat and corn mostly, with rye, barley and millet for some diversity and some rice production further south). Vegetables of one type or another can grow in the full climatic range of North America, although colder parts may be limited to root vegetables. Fruits will be far more problematic as many of them prefer warmer climates that only prevail in some regions. So while it will be possible to provide 2000 calories per person in North America after peak oil, the diversity and quality of that diet may be far different from what it is today.


Tigpil, thanks for addressing my questions. You did give me some answers and you also brought my concerns into better focus, which I'm sure will benefit everyone here who has considered these issues.

I'm still doubtful, though, about scale. When my mom and dad grew up in the 40's and 50's (in Manitoba and Ontario), their parents grew most of what the family ate. Much produce was canned or kept in sand in a root cellar. However, they lived in sparsely populated areas where there was lots of land for farming. Even though the growing season was short, they had lots of space for growing all they needed.

I'm concerned that so many areas are highly populated without a lot of space for growing food. This is particularly true in Ontario and in the northeast states, while cities on the prairies have some expanse of land between them. I believe I've read, on a couple of occasions, that a family of 4 need a minimum of an acre to grow the food they require. If this is true, I'm thinking that areas with high population and short growing seasons will be hard pressed to feed everyone. So many people live in apartment buildings and condos with no yard for growing food. Add in a couple of poor growing seasons due to excess rain or drought and, well, that's what worries me.
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Re: Have We Been Wrong?

Unread postby TigPil » Mon 08 Jan 2007, 03:27:42

It will really be a matter of how quickly oil supplies drop off and what alternatives are available and how quickly they are ramped up. Lets say oil supplies to North America drop at a rate of 5% per year and alternate energy production (nuclear, coal, renewables) only replaces 1% because we have failed to make timely investments in infrastructure (as is the case right now). This means that we have a net 4% drop in oil derived energy per year.

What will be the impact of a 4% annual drop in oil supplies year by year? Well the first few years probably will have relatively minimal impact. Gasoline prices will rise and consumers will cut back their transportation. Personal vehicles consume just over 40% of the oil used in North America and transportation as a whole consumes almost 2/3 of the total. The 6% used by air carriers will also decline although I think the 16% used by trucking will be initially unchanged. Throughout these first few years rising fuel prices will trickle through into inflationary pressure on a variety of goods that have fuel as an input, most importantly food.

We all seem to be in agreement that food production will be prioritized once governments realize that there is an energy crisis. Currently the two industrial usage inputs that may flow into agriculture make up about 2 million barrels per day of US consumption but a significant amount of this must not be for other types of industry. So I will make an aggressive estimate that 1 million barrels are used for agriculture, for powering farm equipment and as feedstock primarily for pesticides. Trucking currently uses 16% of US oil consumption but again this covers a wide range of goods so lets say that 4% of total oil consumption is related to food distribution. This means that about 2 million barrels of oil are essential to food production. So at a 4% annual drop rate in oil supplies, it will take 23 years from the onset of peak oil until the prioritized area of food production is affected. This is without changing current production patterns or lowering consumption at all but I think production patterns will change as people try to balance food requirements with other basic needs.

In those 23 years, a lot of adjustments can take place. If mechanized agriculture has to be phased out then a lot of people will have to move back to the countryside and employment in agriculture will rise from the current 2-3% to much higher levels (depending on how unmechanized agriculture beceomes). In 1900 40% of the US labor force was involved in agriculture and 40% of the population lived in a rural context. I suppose that would be the worst case scenario since there was basically no agricultural mechanization at that time.

$this->bbcode_second_pass_quote('Ludi', 'T')igPil, it's not clear to me how the agricultural system will be supported financially during this unending collapse.
You say that food production and distribution will be prioritized and I'm sure that's true, but once people spend 100% of their income on food, there's no more they can spend.


I don't see prices going to 100% of people's income. Currently food is about 13% of expenditures and this includes some premium for food not eaten at home. This percentage has been going down for the last 150 years as our economy has become more complex and food production became less and less labor intensive. In the first few years the increase will be gradual and people will have to cut back on other areas of expenditure. Eventually as oil keeps declining the government will have to intervene not only in ensuring that energy is prioritized to the food producing sector but that the resulting food is distributed appropriately. I would expect the introduction of some kind of rationing system.

Even in the absence of government intervention, market mechanisms should keep food prices significantly below 100% of income. Money and goods have no intrinsic value relative to each other. The monetary value of a particular good is based on the relative demand for that good compared to other goods. If the price of food rises then the relative value of other goods will have to decline. Some goods will become uneconomical to produce because the price consumers would be willing to pay would be to low and thus those products will disappear from the economy. Since consumers will need water, shelter and clothing in addition to food, the demand for those will produce a non-zero monetary value for them and prevent food from being 100% of income for that reason. The relative value of food may rise dramatically from its current 13% of income to a much larger piece of the economy.
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Re: Have We Been Wrong?

Unread postby TonyPrep » Mon 08 Jan 2007, 04:15:22

$this->bbcode_second_pass_quote('TigPil', 'W')hat will be the impact of a 4% annual drop in oil supplies year by year? Well the first few years probably will have relatively minimal impact.
A 4% drop is a net 5% drop, assuming a minimal demand growth of 1%. After 2 years, that will be almost 10% behind what the consumption would have been. I doubt that a 5%, then 10% deficit in oil will have minimal impact. You were probably talking about food, though the impact on society as a whole will likely affect food also. The oil won't be prioritised for food immediately (after all, the EIA, and CERA, will be telling the government that this is a short term blip and Saudi Arabia will be boosting production any year now) and even if this is attempted, many, even most, of the general public won't like it, no matter how reasonable it sounds. Even if oil was smoothly prioritised for food production, pesticides, fertilizers and farm fuel will cost more, as will all other supplies to farms. This could lead to cutbacks that reduce production, or farmers going out of business. It can also lead to much higher food prices.

I don't think it can be assumed that the impact will be minimal in the first few years. It is quite possible that the first few years will see the highest impact.
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Re: Have We Been Wrong?

Unread postby EnergyUnlimited » Mon 08 Jan 2007, 05:21:41

$this->bbcode_second_pass_quote('TonyPrep', '
')I don't think it can be assumed that the impact will be minimal in the first few years. It is quite possible that the first few years will see the highest impact.

Disagree. First few years can be mitigated by enforced conservation (less oil will be used due to higher prices and possible reglamentation).
The real hardship will come only later, when "easy conservation opportunities" are exhausted and even essential (prioritized) demand cannot be satisfied.
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Re: Have We Been Wrong?

Unread postby TonyPrep » Mon 08 Jan 2007, 05:58:50

$this->bbcode_second_pass_quote('EnergyUnlimited', '')$this->bbcode_second_pass_quote('TonyPrep', '
')I don't think it can be assumed that the impact will be minimal in the first few years. It is quite possible that the first few years will see the highest impact.

Disagree. First few years can be mitigated by enforced conservation (less oil will be used due to higher prices and possible reglamentation).
If it's enforced through higher prices, why won't those higher prices hit farmers, both increasing prices and production or profitability? I'm not predicting this will happen; I just don't think it's a given that the first few years will see minimal impact, especially to food production. In other areas, actual scarcity will see big effects, which might eventually scale down as society adjusts to lower energy. I don't think current society can adjust but it's possible and, if so, the early years will likely be worse. If it doesn't adjust, all bets are off.
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Re: Have We Been Wrong?

Unread postby Doly » Mon 08 Jan 2007, 07:30:15

$this->bbcode_second_pass_quote('TonyPrep', 'I')f it's enforced through higher prices, why won't those higher prices hit farmers, both increasing prices and production or profitability?


It's a no-brainer for any government in the world that food production and imports must be protected if it looks like there's any problems with either. I think it's extremely unlikely that the first years would cause any kind of serious issues with food availability.

$this->bbcode_second_pass_quote('TonyPrep', '
')I don't think current society can adjust but it's possible and, if so, the early years will likely be worse. If it doesn't adjust, all bets are off.


I think a good analogy with an economic shock is a person that suffers a serious accident. Because most people only have experience with small wounds, they tend to assume that people are in the worst state immediately after the accident. The truth is, after a serious accident, people will always get worse before they get better. This is because just after the accident, they are very close to the state of entirely healthy. Loss of blood and any damage to organs starts taking their toll after a while.

I think the same would happen with peak oil. Even if society adjusts fairly quickly, things will get worse before they get better. At the beginning, we are still close to a working economy. As things start failing, it will get worse.

I don't think you can say "if society doesn't adjust". It will adjust, eventually. Even if you think we'll go back to the preindustrial state after massive dieoff (and I don't think so at all), society will reach some kind of sustainable state eventually.
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Re: Have We Been Wrong?

Unread postby TonyPrep » Mon 08 Jan 2007, 07:41:23

$this->bbcode_second_pass_quote('Doly', '')$this->bbcode_second_pass_quote('TonyPrep', 'I')f it's enforced through higher prices, why won't those higher prices hit farmers, both increasing prices and production or profitability?
It's a no-brainer for any government in the world that food production and imports must be protected if it looks like there's any problems with either.
We'll see. You seem to have great faith in governments reacting to the problem in a timely manner.
$this->bbcode_second_pass_quote('Doly', 'A')t the beginning, we are still close to a working economy. As things start failing, it will get worse.
But things will start failing as soon as supplies start to dwindle. There may not be panic but I doubt that the reaction will be well coordinated, to begin with (if at all). It will be left the market, at first. We'll be close to a working economy, but only, for certain, in time. The rest isn't certain.$this->bbcode_second_pass_quote('Doly', 'I') don't think you can say "if society doesn't adjust". It will adjust, eventually. Even if you think we'll go back to the preindustrial state after massive dieoff (and I don't think so at all), society will reach some kind of sustainable state eventually.
But that won't be this society, it will be another society. That's why I said "if it doesn't adjust". Adjusting means retaining present society in some form that's recognisable as today's society. To reach "some kind of sustainable state", society will have to be completely different.
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Re: Have We Been Wrong?

Unread postby Ludi » Mon 08 Jan 2007, 09:26:16

TigPil, how will the government fund its intervention in the food production and distribution system?
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