Donate Bitcoin

Donate Paypal


PeakOil is You

PeakOil is You

This is really serious the poo has hit the fan

Discussions about the economic and financial ramifications of PEAK OIL

Re: This is really serious the poo has hit the fan

Unread postby nobodypanic » Fri 27 Feb 2009, 18:41:35

$this->bbcode_second_pass_quote('shortonoil', ' ')
WHERE THE NUMBERS COME FROM:


it has been shown that GDP is directly proportional to the amount of energy input into an economy.

thanks. that's pretty much what i thought was going on.
User avatar
nobodypanic
Heavy Crude
Heavy Crude
 
Posts: 1103
Joined: Mon 02 Jun 2008, 03:00:00

Re: This is really serious the poo has hit the fan

Unread postby retiredguy » Fri 27 Feb 2009, 19:23:19

So says Tainter.
User avatar
retiredguy
Tar Sands
Tar Sands
 
Posts: 633
Joined: Tue 11 Jan 2005, 04:00:00
Location: southern Wisconsin

Re: This is really serious the poo has hit the fan

Unread postby shortonoil » Sat 28 Feb 2009, 13:21:27

nobodypanic said:

$this->bbcode_second_pass_quote('', 't')hanks. that's pretty much what i thought was going on.


Energy input increases, material science advancement and the ability to adopt new social traditions are key elements for the building of a civilization. None give us the luxury of avoiding them!

There is the common misconception that conservation of oil can now compensate for much of our energy input. Although it is true that there may be some benefit to be derived from conservation efforts, the return on those efforts are likely to be far less than one would first expect. The energy cost of the efforts themselves, and the maintenance of those results will undoubtedly limit their benefit. The point of diminishing returns for conservation is never very far away, plus in this case it would most likely be self defeating. Applying resources, which could be utilized elsewhere, to conserve oil still leaves one with the original problem - oil.

Compensating for fossil fuels’ declining energy contribution will require technological advancement. Developing those skills/techniques and then applying them throughout the entire social/economic environment will take many decades. Since we have at most a decade and a half to implement solutions, our solutions will have to be s simple and as straight forward as possible. Development of resources, like geothermal, although it produces more expensive power per kWh than coal or nuclear, has the advantage of simplicity and rapid deployment.

Over the next 16 years, in order to maintain its viability, the modern world will have to replace the annual production of 156,000 trillion BTU of energy supply! There is no question that this will be a daunting task. Most likely, impossible. If we are to limit the impact damage from this event (such as the burning of just a few cities after our monetary systems collapse) it will be necessary for us to learn many new social traditions. We will have to learn to tolerate greatly reduced standards of living. We will have to learn to relinquish our cherished and ridiculous symbols of social position, and gain the desire to work in concert toward the reconstruction and rebuilding of civilization.

The alternative? Chaos!

Available Energy
User avatar
shortonoil
False ETP Prophet
False ETP Prophet
 
Posts: 7132
Joined: Thu 02 Dec 2004, 04:00:00
Location: VA USA

Re: This is really serious the poo has hit the fan

Unread postby Cyrus » Sat 28 Feb 2009, 15:19:21

Great to see you posting again Shortonoil!
User avatar
Cyrus
Tar Sands
Tar Sands
 
Posts: 647
Joined: Tue 25 Jan 2005, 04:00:00

Re: This is really serious the poo has hit the fan

Unread postby bencole » Sat 28 Feb 2009, 16:26:24

$this->bbcode_second_pass_quote('shortonoil', '
')
Energy input increases, material science advancement and the ability to adopt new social traditions are key elements for the building of a civilization. None give us the luxury of avoiding them!


It doen't look likely that the energy input to the developed world
is going to increase anytime soon. The situation we are dealing with now is energy input decreases for the future, and how to mitigate the effects to society.



$this->bbcode_second_pass_quote('', 'T')here is the common misconception that conservation of oil can now compensate for much of our energy input.

Although it is true that there may be some benefit to be derived from conservation efforts, the return on those efforts are likely to be far less than one would first expect. The energy cost of the efforts themselves, and the maintenance of those results will undoubtedly limit their benefit. The point of diminishing returns for conservation is never very far away, plus in this case it would most likely be self defeating. Applying resources, which could be utilized elsewhere, to conserve oil still leaves one with the original problem - oil.


I disagree, a substantial amount of our energy use is needless waste by
almost any definition. People like to drive large vehicles because
the want more power, people use disposible products because they save time and are convienent. We keep city skylines brightly lit at night for the aesthetic value. We overuse air travel for its convience factor. We use energy in great amounts
merely for the purpose of entertaining our senses, for our modern day fun and amusement. Have you been to Las Vegas?
The return on energy conservation is extremely high not just in terms of the energy supply metric. The environment benefits enourmously from reductions in energy usage is enormous, regardless of whether the source is fossil fuels or otherwise, it's not a diminishing return at all. The scientific community considers
conservation a key point in solving our energy dilema. The effect of peak oil is caused by the overuse of the resource.


$this->bbcode_second_pass_quote('', 'C')ompensating for fossil fuels’ declining energy contribution will require technological advancement. Developing those skills/techniques and then applying them throughout the entire social/economic environment will take many decades.
Since we have at most a decade and a half to implement solutions, our solutions will have to be s simple and as straight forward as possible.


Time to get cracking, no time like the present. If the USA can spend decades planning and pursuing wars to secure supplies of energy, I'm convinced that applying skills/techniques to solving energy problems in the socioeconomc sphere is a realistic undertaking.



$this->bbcode_second_pass_quote('', 'D')evelopment of resources, like geothermal, although it produces more expensive power per kWh than coal or nuclear, has the advantage of simplicity and rapid deployment.


Geothermal is tailored to geographic areas where it is most viable, like iceland. Specific areas are best matched to an ideal
form of renewable energy based on geography. The southwest
for instance would benefit from solar energy to a greater extent
than more northern latitudes.

$this->bbcode_second_pass_quote('', 'O')ver the next 16 years, in order to maintain its viability, the modern world will have to replace the annual production of 156,000 trillion BTU of energy supply!
There is no question that this will be a daunting task. Most likely, impossible.


Not impossible I don't think. The demand for this amount of energy
could be reduced through conservation efforts. It might take a painful sacrifice in some peoples view, things like the elimination of air travel for pleasure or trucking fresh fruit from south america in the winter, but it can be done.

$this->bbcode_second_pass_quote('', 'I')f we are to limit the impact damage from this event (such as the burning of just a few cities after our monetary systems collapse) it will be necessary for us to learn many new social traditions.


True, and possibly relearn some old ones, long forgotten in the computer age.


$this->bbcode_second_pass_quote('', 'W')e will have to learn to tolerate greatly reduced standards of living. We will have to learn to relinquish our cherished and ridiculous symbols of social position, and gain the desire to work in concert toward the reconstruction and rebuilding of civilization.

Well said.

$this->bbcode_second_pass_quote('', 'T')he alternative? Chaos!

True, its best we avoid that alternative
bencole
Lignite
Lignite
 
Posts: 359
Joined: Thu 26 Feb 2009, 03:29:52
Top

Re: This is really serious the poo has hit the fan

Unread postby shortonoil » Sat 28 Feb 2009, 19:17:21

bencole said:

$this->bbcode_second_pass_quote('', 'I') disagree, a substantial amount of our energy use is needless waste by almost any definition.


The functional end of the oil age is now so near that most energy investments made for conservation will not have time to produce a reasonable return on those investments. It would be best to use what little fossil fuel energy resources we have remaining to start developing future sources, and the infrastructure that we will need to use it.

$this->bbcode_second_pass_quote('', 'G')eothermal is tailored to geographic areas where it is most viable, like iceland. Specific areas are best matched to an ideal form of renewable energy based on
geography.


Jack #2 was 23,000 feet deep. Deep enough to produce 700 deg steam almost any place in the Continental US. Thanks to the oil industry, we now have the technology to produce geothermal almost anywhere.


Available Energy
User avatar
shortonoil
False ETP Prophet
False ETP Prophet
 
Posts: 7132
Joined: Thu 02 Dec 2004, 04:00:00
Location: VA USA
Top

Re: This is really serious the poo has hit the fan

Unread postby shortonoil » Sat 28 Feb 2009, 19:23:00

Cyrus said:

$this->bbcode_second_pass_quote('', 'G')reat to see you posting again Shortonoil!


Thanks.
User avatar
shortonoil
False ETP Prophet
False ETP Prophet
 
Posts: 7132
Joined: Thu 02 Dec 2004, 04:00:00
Location: VA USA
Top

Re: This is really serious the poo has hit the fan

Unread postby bodigami » Mon 02 Mar 2009, 01:18:29

$this->bbcode_second_pass_quote('shortonoil', '(')...)

The world is now entering a 16 year period of declining GDP. The chart below gives the economic contraction that can be expected for the next four years and the world’s decline in net worth that will result:
$this->bbcode_second_pass_code('', '
Year GDP Decline % Net Worth Net Worth decline
‘08 5.9 423.5 26.5
‘09 6.3 396.8 26.5
‘10 6.7 370.3 26.5
‘11 7.1 343.9 26.5

Net Worth in trillions $
')
(...)


Why 16 years and not 17 or 15? Do you think that the economy will recover in 16 years? If so, why?
bodigami
Permanently Banned
 
Posts: 1921
Joined: Wed 26 Jul 2006, 03:00:00
Top

Re: This is really serious the poo has hit the fan

Unread postby bodigami » Mon 02 Mar 2009, 01:39:31

$this->bbcode_second_pass_quote('Battle_Scarred_Galactico', 'N')uclear war is not certain at all, if you honestly believe it is what are you even doing here posting Bencole ?


Nuclear War is a possibility that must not be forgoten.
bodigami
Permanently Banned
 
Posts: 1921
Joined: Wed 26 Jul 2006, 03:00:00
Top

Re: This is really serious the poo has hit the fan

Unread postby Sixstrings » Mon 02 Mar 2009, 03:50:57

I'm not sure about Shortonoil's prediction. Annual GDP declines of 6% would mean an excruciatingly drawn-out downward spiral. I think society could only take about three years of that before major social upheaval causes the decline to pick up at an exponential rate.
User avatar
Sixstrings
Fusion
Fusion
 
Posts: 15160
Joined: Tue 08 Jul 2008, 03:00:00

Re: This is really serious the poo has hit the fan

Unread postby sjn » Mon 02 Mar 2009, 08:16:02

$this->bbcode_second_pass_quote('Sixstrings', 'I')'m not sure about Shortonoil's prediction. Annual GDP declines of 6% would mean an excruciatingly drawn-out downward spiral. I think society could only take about three years of that before major social upheaval causes the decline to pick up at an exponential rate.

I think you're drawing the right conclusion there Sixstrings. That in no way invalidates shortonoil's projection though. He isn't attempting to model all the systemic feedbacks, simply the upper bound given a BAU scenario.
User avatar
sjn
Elite
Elite
 
Posts: 1332
Joined: Wed 09 Mar 2005, 04:00:00
Location: UK
Top

Re: This is really serious the poo has hit the fan

Unread postby Ludi » Mon 02 Mar 2009, 11:52:24

$this->bbcode_second_pass_quote('bencole', '
')Time to get cracking, no time like the present. If the USA can spend decades planning and pursuing wars to secure supplies of energy, I'm convinced that applying skills/techniques to solving energy problems in the socioeconomc sphere is a realistic undertaking.



I hope you'll post more about what you're doing to that end.


Also, I hope you'll tell us what you do for a living which isn't "wasteful" of energy.
Ludi
 
Top

Re: This is really serious the poo has hit the fan

Unread postby shortonoil » Mon 02 Mar 2009, 18:19:18

BUDGET APOCALYPSE

$this->bbcode_second_pass_quote('', '
')Doug Noland: "Over the past decade, the “optimists” often cited the federal government’s positive fiscal position as evidence of the health of the overall economy and soundness of our prosperity. It should be clear these days that the protracted boom's massive inflation of private-sector Credit had grossly inflated government receipts (among other things). Indeed, over the 12-year period Federal Receipts inflated 88% (to $2.651 TN) and State & Local receipts increased 92% (to $1.903TN). This crucial facet of the inflationary boom spurred federal and state & local spending growth of 80% and 93%, respectively. State & Local governments will now attempt to maintain these inflated levels of expenditures, while the federal government will move aggressively to grossly inflate already inflated spending. The budget now calls for federal expenditures this year to
approach $4.0 TN. This compares to spending of about $1.6 TN back in 1995. The federal deficit is projected to expand by a combined $3.0 TN during fiscal years ’09 and ’10. This would amount to a 60% increase in federal debt in only two years. Today’s unparalleled expansion of federal debt and obligations is being dressed up as textbook “Keynesian.” It’s rather obvious that we are in dire need of some new books, curriculum and economic doctrine. But from a political perspective, the title is appropriate enough. From an analytical framework perspective such policymaking is more accurately labeled “inflationism” – a desperate attempt to prop inflated asset prices, incomes, business revenues, government receipts, and economic “output”. There have been many comparable sordid episodes throughout history, and I am not aware of any positive outcomes....Today, the deeply impaired financial sector is incapable of assuaging the system's bloated Credit needs.... In the final analysis, the bust has left multi-Trillion dollar holes in various sector balance sheets. Moreover, Patterns of Spending throughout the economy have been forever altered. Year-after-year of reckless lending has quickly come home to roost in a Big way.
Our federal government has commenced the process of attempting to fill holes through the massive inflation of government Credit and obligations (by the Trillions). Depending on the reader’s perspective, I risk appearing either the master of the obvious or a rabid sensationalist. Yet the stakes associated with the current course of fiscal and monetary policy are absolutely momentous. And I am compelled to write that “if you’re notconfused you don’t understand the nature of the problem.”...But I do fear that we now face Trillion dollar deficits as far as the eye can see. I don’t expect “Keynesian” policies to have much success in reinvigorating busted asset markets. I’ll be surprised if private-sector Credit creation bounces back anytime soon. I fear policymaking will do more harm than good when it comes to needed economic restructuring. And my worst fears of policymaking (fiscal and monetary, democrat and republican, national and local) bankrupting the country are being anything but allayed. Similar to my belief that mortgage Credit growth should have been limited to, say, no more than 4 or 5% annually during the boom, there is today a very serious need to incorporate some reasonable limits on the expansion of federal debt and obligations. " (emphasis mine)


$this->bbcode_second_pass_quote('', 'G')DP in the U.S. fell at a 6.2% seasonally adjusted annualized pace in the final three months of 2008, revised from the initial estimate of a 3.8% drop, the Commerce Department reported.


White House Estimates
$this->bbcode_second_pass_code('', '
Real GDP
2008 1.30
2009 (1.20)
2010 3.20
2011 4.00
2012 4.60
2013 4.20
')

Available Energy Model
Estimates
$this->bbcode_second_pass_code('', '
United States
Year GDP % Net Worth Net Worth Decline
‘08 (5.9) 423.5 26.5
‘09 (6.3) 396.8 26.5
‘10 (6.7) 370.3 26.5
‘11 (7.1) 343.9 26.5

* Net Worth in trillions
** all figures year end results
')


It has been the massive inflation of private-sector Credit that has allowed for the massive expansion of state, local, and federal expenditures in recent years. This massive expansion is projected by the White House to restart, which is expected to provide much of the needed financing for the massive deficits to come. “The federal deficit is projected to expand by a combined $3.0 TN during fiscal years ’09 and ’10.”

The $3 TN deficit number is based upon White House Estimates of GDP growth of -1.2% for ‘09, and +3.2% for ‘10. If this Keynesian dart throwing estimation method does not work (the -6.2% already reported indicates that it probably won’t) and the Available Energy model* does, the deficits will have grown to -5.4 TN by ‘11.

45% of the entire federal budget is now being borrowed. $5.4 trillion in additional debt (108% increase) would also need to be borrowed in addition to the present 45%. This would drive bond values downward dramatically. Interest rates would grow to double digit numbers, and the equity markets would completely collapse. In the event of a contracting economy, such as the one outlined above, the federal government is likely to find that it will be unable to further service its newly birthed debt monstrosity!

The great majority of this growing debt is sprouting around a financial black hole, which is forming in the vicinity of the nation’s largest banks. We are being told repeatedly that saving these economic abominations is essential to the security of the nation; that they are too big to fail. We are constantly being reminded that we must understand that no matter what the consequences may be, we must continue to pump the entire Treasury of the nation into them - if need be. We are rarely reminded that $9.7 trillion in loans and guarantees that have already been bled into these dissolving carcasses!

A declining economy means that we need less banking capability to service that economy, not the same amount. Why then are we betting the solvency of the entire nation (and probably the world) on institutions that we don’t need? Institutions which are now insolvent, and which we probably can’t rescue. Why are we attempting to rescue them with a plan which is based on an almost methodological theory that has proven itself repeatedly to have little predictive capability.

Why is JP Morgan, Citi, Wells Fargo, Bank of America, GS and the other money sinks of the financial world not being dismantled; sold off for what ever they can bring. How is it that the entire nation is being asked to hemorrhage to death to save these already decaying zombies?

Are the people in Washington who are planning this fiasco incredibly stupid and insane - or are they desperately hoping that we are?

*The AE model has been back tested 35 years and forward 5 with fairly accurate results. Government estimates haven’t been right for three years in a row since 1929.
User avatar
shortonoil
False ETP Prophet
False ETP Prophet
 
Posts: 7132
Joined: Thu 02 Dec 2004, 04:00:00
Location: VA USA
Top

Re: This is really serious the poo has hit the fan

Unread postby bencole » Mon 02 Mar 2009, 20:53:41

-
Last edited by bencole on Tue 26 May 2009, 06:00:17, edited 2 times in total.
bencole
Lignite
Lignite
 
Posts: 359
Joined: Thu 26 Feb 2009, 03:29:52

Re: This is really serious the poo has hit the fan

Unread postby bencole » Mon 02 Mar 2009, 21:19:00

$this->bbcode_second_pass_quote('shortonoil', '[')b]bencole said:

$this->bbcode_second_pass_quote('', 'I') disagree, a substantial amount of our energy use is needless waste by almost any definition.


The functional end of the oil age is now so near that most energy investments made for conservation will not have time to produce a reasonable return on those investments. It would be best to use what little fossil fuel energy resources we have remaining to start developing future sources, and the infrastructure that we will need to use it.



Don't forget about the return on investment from protecting the environment. Since we are biological entities we need a to preserve some remnant of the natural world in order to live half decently. Exhausting our remaining fossil fuels as quickly as possible, to develop alternative sources or infrastructure, carries much risk and uncertainty in this regard. For every barrel of oil or tonne of coal that stays in the ground due to conservation, we all breath a little easier. One example, the tar sands is an area of boreal forest the size of the entire state of florida, it is being destroyed simply so that americans can continue to enjoy their current driving habits. We need that forest to breath, shifting away from fossil fuels is the only way to save it. IMO it would be best to leave as much fossil fuel resource in the ground as we can.
Last edited by bencole on Mon 02 Mar 2009, 22:36:59, edited 1 time in total.
bencole
Lignite
Lignite
 
Posts: 359
Joined: Thu 26 Feb 2009, 03:29:52
Top

Re: This is really serious the poo has hit the fan

Unread postby Ludi » Mon 02 Mar 2009, 21:34:52

Thank you for the response, bencole. I'm not sure how being a student is making a living.... Are you on scholarship, or loans, or? Sorry, it's just one of my little things, curiousity about what folks do for a living. :)

We're all of us being supported in some way by the system. We can claim we aren't being "wasteful" but if we rely on this wasteful system, we are being wasteful to a large degree. I'm quite guilty of "waste" myself.
Ludi
 

Re: This is really serious the poo has hit the fan

Unread postby patience » Mon 02 Mar 2009, 21:45:05

bencole,

I agree on the need for downsized transportation. What are your thoughts on trucks and tractors out here in the Grain Belt? My neighbor farms about 60 acres/year and raises about 2.2 million chickens/year. He needs big trucks. I run a small machine shop, and get along just fine with a 4 cylinder S-10 Chevy and an old VW Rabbit.
Local fix-it guy..
User avatar
patience
Resting in Peace
 
Posts: 3180
Joined: Fri 04 Jan 2008, 04:00:00

Re: This is really serious the poo has hit the fan

Unread postby bencole » Mon 02 Mar 2009, 21:50:56

$this->bbcode_second_pass_quote('pstarr', '')$this->bbcode_second_pass_quote('bencole', 'A')s for ways I avoid wasting energy specifically, I don't have a car, I walk, bike, or use mass transit. I don't travel by plane. I avoid buying products with heavy packaging, or that are imported from far distances. I recycle or compost nearly everything and avoid throwing anything away. I don't use any 2-cycle IC engines in any equipment, I own a snowshovel, a rake, and a push lawnmower, etc, etc. There are numerous options , but I'm sure a large number people, if they tried, could easily cut their per capita energy consumption by 50% or more. Admittedly there are many people who require an automobile to provide a living for themselves, but there are many potential options here as well. I think a good government initiative for the short term would be to cap displacement at small 4 cylinder engines and govern them to 75 kW for all new production cars and trucks, including imports, and offer these as the only options for purchase. A lot of vehicles that are on the road are oversized, overpowered, and underoccupied for there purpose, there is room for conservation here. Send all those V-8 pickups and SUVs to the scrap heap where they belong.

I don't mean to diminish your efforts bencole and I do appreciate the steps you have taken, but I believe what you have listed is of little consequence.

Everything you have conserved is at the consumer level. The bulk of energy use per capita is for the infrastructure we all take for granted. So the electricity to treat your water and waste, to grow and transport your food, to power the city or town you live in remains unchanged. The roads, powerplants, dams, trains, repairman, service industry workers, refiners, recyclers, scrap dealers and processors THESE ALL USE ENERGY ALL DAY ALL YEAR ALL THE TIME in spite of your little consumer efforts

See what I mean? Sorry :cry: but we need to change this entire entropic open-energy-cycle system to get off the petroleum hayride.


Sorry, didn't mean to make you cry a river, I was just asked what I was up to, not saying its perfect by any means, but that's one of the reasons I read this site.
One persons efforts alone won't cause a earthquake, but the efforts of mainy people working in conjunction will have a substantial effect. A lot of infrastructure was also built to facilitate the consumer lifestyle and encourage it, by abandoning or dismantling this infrastructure energy savings could be realized. Look at the effect already on the consumption of oil by the USA due to the drop of consumer activity over ther past 6 months. Of course your correct, there are hundreds of millions of people in N America and the task of reducing the energy demand of core infrastructure is daunting but that is the grand challenge that we are still seeking a solution for, to establish a standard of living
in harmony with nature. Energy will still be used in large quantities in the future, we still need it, but the rate at which it will be availible we be less. Learning Conservation helps prepare for that future reality I think.
bencole
Lignite
Lignite
 
Posts: 359
Joined: Thu 26 Feb 2009, 03:29:52
Top

Re: This is really serious the poo has hit the fan

Unread postby bencole » Mon 02 Mar 2009, 22:05:32

-
Last edited by bencole on Tue 26 May 2009, 05:59:33, edited 1 time in total.
bencole
Lignite
Lignite
 
Posts: 359
Joined: Thu 26 Feb 2009, 03:29:52

PreviousNext

Return to Economics & Finance

Who is online

Users browsing this forum: No registered users and 0 guests

cron