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General discussion

Paying $3 a gallon for gas right now... maybe this is why.

Mar 12, 2010 11:18AM PST

Discussion is locked

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Were it only that.
Mar 12, 2010 6:24PM PST
Oil is far too valuable to just burn. - Mohammed Reza Palavi, the last Shah of Iran

Welcome to the age of Peak Oil.

In 1956, a prominent geologist for Shell Oil company, Dr. Marion King Hubbert predicted that oil production in the lower 48 states of the US would peak between 1965-1970. He was ridiculed by his colleagues for his prediction and in 1970, US produced more oil than any previous year - exactly the year when the production peaked.

In 1969, Dr. Hubbert went on to predict a peak for world oil production between 1995-2000, based on the best data available at that time. His prophecy about peaking of world oil production is known as Hubbert Peak theory. Even if Dr. Hubbert was proved too early in his prophecy, a 6-8 year margin of error is still a pretty good shot at being a prophet, given the 150 year long history of the oil age.


All this does NOT mean that we'll run out of oil tomorrow; however, it DOES mean that world demand will from now on outstrip supply. New reserves will be discovered and exploited, but they will be: 1) increasingly hard to produce, 2)very expensive to develop and 3) insufficient to meet an ever increasing demand. The result will be ever more expensive oil, which will affect every part of modern society, from agriculture (dependent on oil-based fertilizers and pesticides) to manufacturing (oil-based plastics, fabrics and chemicals) and even pharmaceuticals (oil-based chemicals and even the capsules drugs are packed in).

We have known of Dr. Hubbert's theory of Peak Oil for over 50 years and have squandered all that time on boondoggles such as synthetic fuels, ethanol and now "cap and trade" - none of which address the real issue. The bill's now due, and will be paid in starvation, disease and war without end - and no one seems to care.
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That's a cheery thought...
Mar 12, 2010 9:21PM PST

but I still think "Peak Oil" is a humbug.

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Does it occure to you..
Mar 13, 2010 12:19AM PST

that boondoggles such as synthetic fuels, ethanol and now "cap and trade" are the direct result of people believing the Peak Oil nonsense?

Even if Dr. Hubbert was proved too early in his prophecy, a 6-8 year margin of error is still a pretty good shot at being a prophet

No it's not! It stinks! It's an indication that he was horribly wrong and needs to reexamine his premise.

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It's going to get worse
Mar 12, 2010 10:20PM PST

Not that I know any figures but I would guess that China is still largely under-developed, and only the larger cities are developed to any western level.

If I am right, then we're in for a bad time. With China's over 1 billion population, when they all start needing oil for everything the way the west does, demand for oil is going to go sky-high.

Then there is India, another 1.2 billion, largely undeveloped at the moment..

It's not looking good.

Mark

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Why do you assume...
Mar 12, 2010 10:44PM PST
....when they all start needing oil for everything the way the west does....

That they can't or won't use energy differently or more efficiently?

And that we can't or won't use energy differently or more efficiently?

And that we can't or won't find and use other sources of energy?

I think that the expansion of technologically advanced civilization is a good thing.
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I assume nothing
Mar 12, 2010 10:46PM PST

Just saying that if things go as they are now, it will get worse.

Anyway, I thought you were against using energy efficiently? According to you oil wlll never run out, so what does it matter?

Mrk

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Oh, really?
Mar 12, 2010 11:24PM PST
Just saying that if things go as they are now, it will get worse.

THAT] is an assumption!

I thought you were against using energy efficiently? According to you oil wlll never run out, so what does it matter?

That's just silly and illogical. Just because I think that we will never run out of oil, does not mean I am against using energy efficiently. It matters, obviously because you save money by using oil efficiently. One day we won't be using it at all or very little, then it won't matter.
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(NT) Just extrapolating the obvious.
Mar 12, 2010 11:26PM PST
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That is an assumption....
Mar 12, 2010 11:28PM PST

that I think is unfounded. Extrapolating the obvious has led to many a false prediction. Malthus springs to mind.

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(NT) Never heard of him
Mar 13, 2010 3:54AM PST
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Malthus
Mar 13, 2010 4:58AM PST
http://en.wikipedia.org/wiki/Thomas_Robert_Malthus

http://www.answers.com/topic/malthusian-catastrophe

Malthus believed that human population growth would soon outpace food production, dooming the human race. He failed tgo take into account technological advances in agriculture. The original doom predictor.

There have been many. Paul Erlich was another who turned out to be wrong.

http://en.wikipedia.org/wiki/Paul_R._Ehrlich

http://en.wikipedia.org/wiki/Simon-Ehrlich_wager

It's not clear if Ehrlich consulted with economists. If he had, the flaw in using commodity prices as the best way to understand biophysical limits might have become obvious. Many economists understand the principle of substitution and the dynamic influence of technology with respect to commodity prices. For example, in the absence of any new technologies, copper prices would indeed be expected to increase as growing economies demanded more copper to meet the needs of expanding communications networks and plumbing infrastructure. Technological changes mitigated much of this expected demand as fiber optics replaced copper wire networks and various plastics replaced the once ubiquitous copper pipes throughout the construction industry.

Julian Simon won because the price of three of the five metals went down in absolute terms and all five of the metals fell in price in inflation-adjusted terms, with both tin and tungsten falling by more than half. So, per the terms of the wager, Ehrlich paid Simon the difference in price between the same quantity of metals in 1980 and 1990 (which was $576.07). The prices of all five metals increased between 1950 and 1975, but Ehrlich believes three of the five went down during the 1980s because of the price of oil doubling in 1979, and because of a worldwide recession in the early 1980s.
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I have no doubt oil prices will go up. But we will not run out and eventually other forms of energy will take over. The sky is NOT falling.
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In te 19th Century, many thought we would run out of coal...
Mar 13, 2010 5:04AM PST

by 1900.

http://www.timesonline.co.uk/tol/comment/columnists/graham_stewart/article4743968.ece

At this point, Jevons maintained, the economy would literally run out of steam, reducing Britons to a medieval standard of living. The cost of shipping coal from elsewhere in the world would be prohibitive and, in any case, the leading geologists calculated that other countries would quickly exhaust their stocks as well.

?I draw the conclusion that I think anyone would draw,? wrote Jevons, ?that we cannot long maintain our present rate of increase of consumption.? John Stuart Mill agreed, announcing that his ?treatment of the subject was almost exhaustive?. William Ewart Gladstone was so impressed that he devoted a large section of his famous Budget Speech of 1866 to the findings of Jevons.

Jevons foresaw a conservative party arguing for lower growth to conserve the Earth's scarce resources while a liberal party would preach unrestricted expansion in the vague hope that something might turn up.

And, of course, what Jevons did not factor into his calculations was that something did turn up - oil. Nor did he question that received geological opinion about world coal stocks left underground was wrong by a factor of centuries.

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Still never heard of him
Mar 13, 2010 5:28AM PST

but who is to say he wasn't right?

It's only because of increased food production that we are not starving. I leave out at this point the billions across the world who do not have enough to eat.

So, using the known facts of the day, may be he was right with his calculations.

You keep on about how 'other forms of energy' will take over. At this present time I see no other forms of energy taking over from oil, nor any suggestion that any other form of energy is ready to take over.

May be something will. I don't know. I keep thinking, "may be we will discover faster than light space travel", but I haven't seen any evidence of that yet, and I'm no betting on it at the moment.

Mark

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Using the known facts of the day...
Mar 13, 2010 5:43AM PST

No, he was wrong. If his prediction had been right the western world would have starved to death decades ago.

It's only because of increased food production that we are not starving.

That is my point. He predicted food production would not keep up to population growth. He was wrong.

There are plenty of other energy sources. Coal and nuclear, for example are ready to go now. With a little technological advance solar and wind may become feasible. Geothermal is already in use in some parts of the world. The reason we rely so heavily on oil is that it is the most efficient (cost effective) form of energy available right now and probably will be for some time to come, but there are plenty of alternatives.

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RE: western world
Mar 13, 2010 5:51AM PST

and that's the ONLY world?

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this whole stupid argument is old hat
Mar 13, 2010 8:00PM PST

a simple analogy:
up until August 2006, Pluto was a planet...

would you say that anyone who called Pluto a
planet "pre-August 2006" was 'wrong'?

i certainly hope not, because according to the
"facts of the day" it WAS a planet

,.

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Completely irrelevant...
Mar 13, 2010 10:21PM PST

Two entirely different situations which are in no way comparable. No matter what the perception, either something happened or it did not. A fact is a fact, regardless of the opinions of the day.

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Completely irrelevant?
Mar 13, 2010 11:02PM PST

"No matter what the perception, either something happened or it did not. A fact is a fact, regardless of the opinions of the day."

Perhaps true, but to say that someone 'failed to take into account" something or other before they happened is completely inappropriate.

So by Ed's logic, Newton erred with his "3 Laws of Motion" because he failed to take into account Einstein's theory of relativity, proposed over a century later?

Ridiculous.

Mark

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No, MarkFlax, you miss the essence of it...
Mar 13, 2010 11:14PM PST

Whether Pluto is a planet or not is a matter of classification, not fact. By the standards of yesteryear, which were very loose, Pluto was classified as a planet. By today's stricter standards, it is now classified as a dwarf planet. Pluto itself did not change.

Newton WAS wrong (incomplete), but within the limits of the mechanical world in which we live, his laws apply.

Malthus made certain predictions which did not come true. Therefore he was wrong.

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Nope!
Mar 13, 2010 11:42PM PST

"Your" essence was that this person, (keep forgetting his name because in reality it matters little to me and I don't use him as any reference), was that he failed miserably with his predictions because he failed to take into account future developments, and so he is discredited.

You're wrong.

Mark

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I realize that it is important to you...
Mar 13, 2010 11:52PM PST

that I be wrong on this, so let's stipulate that I am wrong. Satisfied?

I AM impressed that you've gone to never having heard of Malthus before in your life to now being an expert on the accuracy of his predictions.


"but still it moves"

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By the way...
Mar 14, 2010 4:09AM PDT

Malthus knew about advances in agriculture, but he discounted them because he didn't think they would ever have a significant enough impact to counter the increase in population.

It's not a matter of he failed miserably with his predictions because he failed to take into account future developments. That would be like saying that he didn't predict the future because he didn't know what would happen in the future. Duh! His failure was that he misunderstood the relation between food production and population, which was his entire thesis.

IMO, it was a failure of imagination. He just didn't appreciate what people were capable of doing.

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Billions across the world...
Mar 13, 2010 5:52AM PST
who do not have enough

That's because of politics/war, etc. which keep them from adopting the more advanced agricultural techniques we use in the west.
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RE: politics, war, etc
Mar 13, 2010 6:00AM PST

I guess etc. includes resources/money? (to purchase/develop the more advanced agricultural techniques)

Was he wrong?

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Mark, did you read...
Mar 13, 2010 10:03AM PST

Mark, did you read Aldous Huxley's Brave New World? If so, do you remember "Malthusian belt" and "Malthusian drill"?

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Re: Whether or not Malthus was 'right'
Mar 14, 2010 1:47AM PST

Some familiarity with Malthus would be expected in most basic economic or technical curricula so I am surprised you are not already familiar with his work. Regardless, the question of whether Malthus was 'right' or 'wrong' boils down to a philosophical or possibly semantic question. I don't want to get into that debate.

IMCO, it is perfectly clear that Malthus made an incorrect assumption. All predictions of Malthusian disaster that I have seen were incorrect because all of them made an assumption that technological change would not create sufficient change in the growth of resources required for the desired outcome. In Malthus' case IIRC he estimated agricultural/food production required to support growing population based on an assumption of linear growth in food production vs geometric growth of population. The Club of Rome in the 70s predicted a Malthusian disaster (in Limits to Growth - which was required reading in my economics classes) based on oil scarcity, again predicating their conclusions on lack of adequate technological progress.
http://en.wikipedia.org/wiki/Club_of_Rome
http://en.wikipedia.org/wiki/Malthusian_catastrophe
Malthus' predictions were clearly wrong, at least at that time, because they were predicated on invalid assumptions about growth in food production. I don't recall whether or not Malthus himself entertained that possibility when he made his predictions. I'll leave it to you to decide whether that means Malthus made an error.

The more important question, of course, is whether technology will continue to overcome growth limiting resource shortages as some in this forum believe, or whether the pessimists are correct when they believe a-la-Malthus that a resource crisis is inevitably approaching.

I think it is patently silly to suppose that technology will not mitigate resource shortages to some degree, but it is arguably unwise to assume that technology will always overcome all resource constraints. It seems to me that a middle way should be found that promotes conservation while simultaneously looking for technological breakthroughs.

FWIW: I think the same policy logic is relevant regarding climate science. I don't understand climatology/meteorology well enough to comment on the (lack of) merits of the science on either side, but I am quite convinced that conservation makes sense as a goal whether or not there is a looming crisis and that technological developments will substantially determine what is possible regarding reduction of carbon footprint. I am a bit concerned that efforts to reduce carbon footprint will fall victim to the 'tragedy of the commons' and I have no idea how to alter that.

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did i miss something?
Mar 14, 2010 3:24AM PDT

#Some familiarity with Malthus would be expected in most basic economic or technical curricula so I am surprised you are not already familiar with his work.#

is Mark an economist or some kind of technician?

from the little i do know of Malthus, i would say that the Dust Bowl and the potato famine proved that he was right in many things he said

,.

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No
Mar 14, 2010 3:41AM PDT

The mere existence of famine does not prove Malthus right. The Dust Bowl and potato famine were not caused by population increase, but by other additional factors.

Malthus should be known to all educated people, not just economists. It's kind of disturbing that he's not.

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I think it depends on how you define resources...
Mar 14, 2010 3:35AM PDT

It seems likely that we could clone meat and vegetable/plant materials in factories very soon if needed. That would free us from dependence on the soil and all its limitations.

Looking further ahead, it's not out of the realm of possibility that food could be synthesized out of raw chemicals. That would mean that as long as there are carbon, hydrogen and oxygen atoms and a few other elements there would always be food.

As far as determining whether Malthus was right or not, under a Malthusian theory, as population increases the amount of food (calories/capita) should slowly decrease. In reality it has increased in Western (and many other) nations. A prediction only has to fail once to be wrong.

In contrast, Newton and Kepler's work can be used to reliably predict what bodies will do in motion. NASA uses them every day with a high degree of precision. Newton's predictions are correct every time.

Einstein's work does not contradict Newton, rather he supplements it. A car going 60 MPH is affected by relativity, but the effects are so infinitesimal that they can't be measured without sophisticated equipment.

I agree that Malthus should be at least mentioned in schools. I am kind of shocked that MarkFlax never heard of him. BTW, I was not saying that everything Malthus thought or said was wrong or worthless. He contributed a lot and was a great thinker.

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I don't think Malthus has been proved wrong yet ...
Mar 14, 2010 10:32AM PDT

Malthus was clearly wrong regarding the expected short term disaster. That is not the same as being proved wrong in the long term. Although you are correct that there are various potential technical solutions to problems of food scarcity, none of those is a sufficiently mature technology to address long term needs. I suspect the technologies will mature and current barriers to food and energy production will be overcome. I don't KNOW that they will be overcome. There is a difference.

I don't think Malthus' failure to accurately predict a short term disaster disproves the underlying concepts at all. It just shows that Malthus underestimated our ability to apply technology to agriculture, as you pointed out. Unfortunately, it does not necessarily follow that we will continue to be successful in using technology to increase food yield.

One of my biggest concerns in this regard is that something will happen to disrupt the technical progress that has permitted food production to grow as rapidly as it has. It does not require a great deal of imagination to picture any number of catastrophes that could do this. The catastrophes could be natural (eg: change in climate, rapidly spreading disease, ...) or man-made (eg: a result of terrorism or biowarfare) or political (eg: banning of useful technology). I'm sure it would not take too long to come up with other possibilities.

One example of a biological threat involves the Cavendish banana.
http://www.popsci.com/scitech/article/2008-06/can-fruit-be-saved
It is true that if the Cavendish becomes extinct it will not be the end of bananas as we know them and even if we lost all bananas it would not create mass starvation but the case of the threatened banana illustrates just one of the threats to food production. Future threats may not be quite so limited in their impact.