Showing posts with label peak oil. Show all posts

The Middle East on Fire

Source: FAO Aquastat, Oxford Analytica


When people from the West and its mainstream media try to analyse what's happening in the Middle East all they talk about is armed conflict and war. But never do they mention the deep fundamental drivers of energy, water scarcity and climate change

Many countries in the Middle East are extremely vulnerable and on the verge of break down because they cannot deal with mounting economic/energy and environmental costs. Only a little disturbance is needed to make these states fall apart and then all hell can break loose. It has nothing to do with what type of people they are, its simply a matter of survival that brings out the worst in people. When water resources dry up, agriculture collapse, there's no way to make and income and food becomes unaffordable people tend to riot no matter which country. Thats what happened during the French revolution, after 1 million died from famine and peasants turned on the ruling elite.

Displaying a complete lack of understanding of the situation, and utter lack of morality, the imperial powers decided to try and grab the regions oil resources by getting rid of Saddam Hussein but instead created a power vacuum that was filled by al-Qaeda extremists who rapidly transformed into the Islamic State. Then followed by a proxy war over resources and power between many different actors in the region. Never ending fighting with no real benefits for anyone involved. The US "divide and rule" strategy is an utter failure. 

Intensifying the fight against extremists doesn't deal with the fundamental drivers of why they exist in the first place. Instead its producing more extremists as the conditions that laid the groundwork for the rise of IS are worsening. The long-term ecological crisis of especially water stress is worsening in the region. Severe drought conditions intensified by water mismanagement and climate change have led to failed crops and lack of clean drinking water. Leading to increasing food import reliance and pushing people to move into the cities where there are no job opportunities, creating tensions. Then government subsidies for food and fuel get slashed as state revenues from falling oil exports decline. This at a time when oil and food prices have steadily risen and have had major spikes on the international market. That's the perfect storm

Absolutely nothing have been done to build local capacity to cope with extreme weather or manage ecosystems more sustainably. The conditions of deepening water scarcity are projected to intensify in coming years and decades. Meanwhile population keeps growing. And that's why the future in the region looks bleak. The US idea of turning Iraq into a booming oil economy is simply nonsense. Even if there is still more oil left in Iraq, compared to Syria, Yemen or Egypt, they too will face peak oil within a decade or so. Hedging your entire future on oil is utterly idiotic and as we witness very destructive.

Yemen reached a production peak in oil in 2001 and has now practically collapsed. Acute water scarcity and lack of food is reaching levels of mass famine. Nationwide fuel shortages are routine and economic activities have come to a halt. Livelihoods are destroyed, people starve and live in misery, and yet the US and UK support Saudi Arabia's bombing campaign of the country. 


The Conflict Shoreline by Eyal Weizman. Shows the aridity line, areas of about 200 millimetres of rainfall a year, considered the minimum for growing cereal crops on a large scale without irrigation, and western drone strikes in red dots


Egypt has become a net importer of oil and food and is struggling to pay its bills for a growing population. Poor water management (irrigation, pollution, dumping of waste) and growing demand has led to water scarcity in the country. Cairo residents don't have access to water for large portions of the day. The U.N. World Water Development report for 2018 warns that Egypt is currently below the U.N.’s threshold of water poverty and dramatically heading towards absolute water scarcity (500 m3 per capita).

Even if we are able to limit global warming to 2 degrees the Middle East and North Africa (MENA) region will become unbearably hot and many parts unlivable in the coming future. Prolonged heat waves and dust storms will plague the already arid region. Destroying much of the region's agricultural potential. Researcher are expecting a climate exodus from the region. Of which we have seen only the beginning. 

Converging crises - Synchronizing failure

Climate mayhem, falling net energy and debt deflation

We are in for another global oil supply crunch from 2018 onwards that many experts say will trigger another severe economic recession if not depression. A fragile global economy, with a massive debt overhang, cannot handle too high oil prices. A large portion of most countries budgets, and individuals budgets as well, are spent on fossil fuel energy. That's why rapid price increases (over $60 per barrel) crushes demand and flips the economy over into a recession. In turn, leading to the bankruptcy of non-profitable unconventional energy ventures like tar sands and fracking. Thus further reducing supply over the long term.


Since the early 1970s global energy costs have steadily increased. Even if oil prices have oscillated with recurring spikes and drops, as the economy tries to adjust, the overall trend is a steady increase. This is due to the fact that extraction has become increasingly difficult and costly, yielding ever lower return on investment. The problem of course is that we built our economies based on cheap energy that yielded relatively high net energy to society. But that is a thing of the past and now we are struggling to afford our current lifestyles. Thats basically why we started this massive global debt bubble, pulling forward future consumption with cheap credit. But costs will eventually have to be paid.

We have now reached a point when all the energy and resources available to society are required just to maintain our existing level of complexity. A phenomenon puzzling many commentators, calling it secular stagnation. All these factors have made the global economy so fragile that even small perturbations from climate change, wars or falling credit could tip the system over into a deflationary spiral. With economic inequalities already increasing, increasing social instability, this is a recipe for disaster. 

No economy will be able to recover unless it transitions to non-fossil fuel energy sources and writes down its debts. And even then net energy will likely be much lower, meaning that society still has to lower its overall consumption of energy and resources. Implying a voluntary measure to reduce organizational complexity in society. Something few previous civilisations managed, perhaps the British did when they dismantled their empire. 

Implication for food security



Global food prices have increased steadily since 2005, about the time of global peak oil, now at 1970s highs or above. Further exacerbating the problem is booming populations, freshwater scarcity and climate change. 

Today’s population levels depend on fossil fuels and industrial agriculture. Especially vulnerable to rising food prices are people with low purchasing power and without subsistence farming to fall back on. We know that food price increases that reach 200 on the FAO index have led to riots and unrest.

Many countries in the Middle East are especially vulnerable due to convergence of several different crises. State revenue losses from falling oil exports, due to depleting resources and higher domestic consumption, with a need to cut food and fuel subsidies usually make people very upset. Especially when, as is the case in the region, people have no way of making a living coupled with overexploited water reservoirs and eroded soils. As if that wasn't enough, scorching heat and significant risk of recurrent droughts makes the entire region utterly unsustainable. Without energy they have nothing. The chances for further conflict and wars in the region are high. Massive, continuing, migration flows towards Europe is to be expected. 

The infamous ‘Doomsday Clock’ is again at two and a half minutes to midnight  -  the closest since 1953

The struggle to survive a collapsing society

Mohamed Ataya, a 31-year-old Syrian tends to his plants on the rooftop of his damaged building in the Syrian rebel-held town of Arbin, in the eastern Ghouta region on the outskirts of the capital Damascus last week. Ataya, who used to be a professional football player before the war, cultivates seeds for sale. Reddit March, 2017.

The crisis of civilisation


People seem confused, deluded by mainstream media into to wishful thinking, about the current state of affairs in the world. But there is that uneasy feeling that all the alarming reports about peak oil, climate change, desertification, species mass extinction, freshwater scarcity, dying coral reefs, melting of polar ice caps and toxification of our environment are piling up. In fact, we are currently living in a time of a collapsing civilisation, the end to wasteful resource use and reliance on fossil fuels. Everything is becoming increasingly expensive leading to falling standards of living and a majority of the world's population who can barely afford food, shelter or gas for transport anymore. When food becomes too expensive people riot and revolt against the ruling elite. Conflict arises and sometimes it breaks out into wars. Syria being the prime example. For Syrians who are still within the country's borders a total and rapid collapse has long since been underway and is continuing to this day. Look at the man watering his seeds in a city of concrete ruins. Its utterly sad and beautiful at the same time. That is reality. And we will be seeing more of it as entropy starts moving in from the periphery of the global economy towards the centre.




Since it's clear now, almost fifty years after The Limits to Growth (1972) was published, that humans will not take preemptive action to avoid a collapse of the system, the global economy will have to shrink. And the process has been underway for some time now, especially since 2008, it's just that some regions will feel it much harder and sooner than others. Nobody is safe from its crushing effects, that's why building resilience is important for every community on Earth.


People who are well aware of the seriousness of our current situation are suggesting radical ideas because they know there will be mayhem as hundreds of millions of people will be displaced due to a rapidly degrading biosphere and unstable climate.

Why not create a climate passport, actually, give it to all those people who cannot live anymore in their original homes, which gives them access to all the countries who destroyed their home, like the United States” - H.J Schellnhuber (Climate Change: A Last Call for the Planet, 2018)



Well, sure... that probably wont happen but it shows the inequality of the issue and where, to the centre of the global economy, people with the possibility to do so will be fleeing as their own areas are devastated. The world's richest 10% account for half the carbon emissions while the poorest 3.5 billion account for just a tenth. 

Now, climate is not the only issue here, it's just one of the symptoms of a full world. Syria suffered lost state revenue from declining oil exports due to a peak in production, massive population growth, reduced food and fuel subsidies, at the same time as they had the worst drought in 900 years. It's a combination of converging crises that crushes nations that lack resilience. This is only one way that collapse manifests. But it will impact every nation, either direct or indirect, and cause instability and hardship for ordinary people while a small percentage of the rich continue to overexploit remaining resources.

Complacent adults and brave children

The Roman government kept the populace happy by distributing free food and staging huge spectacles to divert attention from a empire in decline, i.e. to prevent people from revolting. And that's basically the same short-term policies current governments employ to appease the public and distract them from collapse. The public may still voice their grievances but according to history they won't revolt until the bread and circuses stops. A surprisingly effective strategy it seems, even today.

Marx once said that "religion... is the opiate of the masses", meaning that it reduced people's immediate suffering and provided them with pleasant illusions which gave them the strength to carry on. Nowadays, such plesasant illusions are not only provided by religion but also by the entertainment industry, media and medical science in form of legal narcotics.

People were more worried about peak oil and accepted the science of climate change some years ago but then denial increased and they got meme fatigue, tired of reading about it. Looking at google trends on the search word peak oil we can see how interest was high from 2004-2009 but then dropped off significantly.
In the case of climate change the interest is more stable over time but when we look at related topics like global warming we see the same tendency of meme fatigue and denial increasing over time. And similar queries with the biggest increase in search frequency, not top search words, relate directly to climate denial and ignorance on the topic. Especially coming from North Americans, which is a reflection of how indoctrinated they are.



However, while many westerners seem in denial or complacent about climate change the topic seem to be of growing interest in nations like Kenya, Bangladesh, UAE, Saudi Arabia, Indonesia, India and Malaysia. Countries that are already hit hard by a changing climate, for example, 40% of Indias population suffer from acute water scarcity. 




So, my theory is that the “comfy” delusional westerners won't revolt until the bread and circuses stop. Not until costs rise even further, in form of direct taxes or indirect by inflation/deflation, and food subsidies stop coming will people rise up and demand change. Despite the gross inequality in modern societies and falling living standards people stay passive like sacrificial lambs . They are simply too comfortable in the current system. But there is yet hope. The younger generation, that have nothing to lose, may yet drive some change. Lets end with "Gretas cry for help"


The big meltdown - 2020?

Charles Blomfield's painting of the 1886 eruption of Mount Tarawera based on eyewitness accounts

Are we headed for the next succession of financial destruction? It’s been ten years since the global financial crisis (GFC) of 2008 that almost ruined western industrial civilisation. And while rich people in the west, at least mainstream media, seem to have the impression that we now are “back to business” lots of people around the globe are suffering from the reality of limits to growth that struck at the heart of the global economy in 08. Even if more fortunate people, like Swedes, can go on deluding themselves (for a little while) that there’s no problem with our current perverse growth paradigm there are people who don't have that luxury. Just take a look at most of the countries in the Middle East and you will quickly understand how peak oil, water scarcity, food crises, overpopulation and climate change can trigger endless misery and suffering (read Nafeez Ahmeds excellent book on this).

Contrary to the dominant narrative of “progress” I see major systemic crises converging towards the year 2020, or sooner! Are we reaching a major tipping point or simply another wave of entropy entering the system?



The symptoms of this can be found in the global economy itself with the rate of global growth stagnating (i.e. energy and debt limits) and tensions between countries competing for limited resources increasing. We also see it in the political sphere where maniacs with empathy deficit disorder get into power as a response to people's frustrations and start talking about all kinds of warfare: cultural, economic and military. We already see social unrest, conflict and trade wars but also talk about military wars connected to resources, mainly oil. Most societies are already very vulnerable, lack resilience to withstand further shocks, so a global financial meltdown could escalate fairly rapidly into chaos and destruction. When people lose everything, and they don't know why, they tend to get angry and violent. How will the US act? Will they unwind the empire, all military bases etc., or spend every bit of their last resources to plunder the planet? The place is more like an oligarchy so the über rich might decide they want the last of the oil, not for the people but for themselves. Europe is a basket case and is likely to break down, every nation on their own eventually. If a economic collapse doesn't do it, the flood of climate refugees will.

As for Sweden, we will see our massive housing bubble pop and a deep recession meanwhile people fleeing from the middle east will want to immigrate here. With the nationalist and xenophobic party, the Sweden Democrats, now being the third largest party things could turn out to their advantage as people become poorer and are likely to blame immigration issues. Similar to what we see in the rest of Europe. There is, however, a fairly strong left still in play in Sweden and to my surprise they got 10% of the votes in this year's election. So perhaps there is still some balance left in the political system, but without any major blocs the grownups in the government has yet to come to an agreement about how to rule, so maybe not. While they argue about who get what seat the world is on fire, and so it goes with large bureaucratic structures that become incompetent. And so the likelihood of social unrest increases.

As for the UN climate targets last chance of bending the emissions curve, I'm pretty pessimistic. A global financial meltdown will put all those hopes on hold and even if action did occur its likely too late to stop the climate from going above the 2C target. Moreover, what we need is not “green growth” but actual downsizing which would happen when the economy contracts. If we won't voluntarily give up consumption, mother nature will do it for us. But of course, it won't be what most people hoped for, it likely won't be a civilised and peaceful decent.

Will there be a global financial meltdown soon? Somewhere between 2018-2020? Well, I don’t know, but what's certain is that something has to give since we live on a finite planet where endless growth is impossible. There's no negotiating with nature.

Help! Colossus has taken over the planet

We need to talk about energy and population

I was listening to the latest Radio Ecoshock show, featuring Stanford biologist Paul Ehrlich, when I realized that I haven’t really mentioned the population problem as much as I should in this blog. Indeed, the topic is problematic because people don’t like to talk about it and most environmental scientists have even given up speaking about it since most feel that “there is nothing we can do about it”. To some extent that’s correct, we cannot force people to have fewer kids (or we don't want to do that).

However, by voluntarily lowering energy use per capita it could lead to fewer kids, and it's better to plan for such a future than to be forced into lowering ones energy usage by “other means” (poverty, famine, war etc.). Throughout history, the expansion of the human population resulted from a steadily growing energy supply. But this increase came from finite fossil energy, that have (2006) or is about to peak, globally (2015-2020). My contention is that an average human living a western lifestyle, of massive over consumption, could lower his/her energy use and still have a perfectly okay life.

From Ape to Colossus

According to William R. Catton (2009) calculations the 3 million humans around 35,000 B.C. only used enough energy (food and wood for fire) to be equivalent to Common Dolphins.
Credit: Chris_huh (CC-BY-SA 3.0)

In 8,000 B.C., when there were an estimated 8 million people who made some use of animal power, wind, and river currents each human was on average equivalent to a somewhat larger Atlantic Humpbacked Dolphin.


By 1500 A.D. there were 350 million humans, each the average energy equivalent to the still larger Risso’s Dolphin.
Credit: Chris_huh (CC-BY-SA 3.0)

In 1800 A.D., as the Industrial Revolution was just beginning to exploit fossil energy there were almost 1 billion humans, each on average now the energy-converting equivalent to a Beluga Whale.


From this point on many of the world’s people, especially the rich, would as fossil fuel users become “colossal” in terms of energy use. By 2000 A.D. the human population reached 6 billion with an average per capita energy use of more than a dozen times that of our old ancestors. By this time, an average American were using as much energy as a full grown Sperm Whale. Only there were 300 million of them.


Credit: Kurzon (CC-BY-SA 3.0)



And finally, by 2009 A.D, Catton estimated that an average American used as much energy as a 41 ton heavy dinosaur. Turiasauris is among the largest dinosaurs known at 36-39 m in length and with a weight of 40-48 tonnes.

Credit: Matthew Martyniuk (CC-BY-SA 4.0)

Oil supply shock, food shortages, and potential starvation in Sweden?


In 2013 the Swedish Institute of Agricultural and Environmental Engineering (JTI) released a report about potential impacts on the country’s food supply from sudden oil import shocks. JTI looked at three different scenarios, where oil imports would be redistricted (-25%, -50%, -75%) for a period of 3-5 years. Not enough time to make a transition to some other fuel. 

In the worst case scenario, where 75% of oil imports disappear, the authors stated that the diesel price could increase to some SEK 160/litre, and we would likely experience widespread starvation! Food supplies, in stores and warehouses, would only last for 10-12 days. Swedes don’t even know that the government has said that it’s up to the citizens themself to provide for their own food needs in a crisis situation. Most people seem to believe we still live in the 1970s when Sweden was a socialist country, not any more, not since the neoliberals came into office and started dismantling healthcare, defence, education etc. There is no emergency preparedness!

Without fossil fuels (oil and gas) we wouldn't be able to produce enough food in Sweden. This is partly due to our high food imports (50%)​, large-scale mechanisation of farms, loss of small-scale farmers and high costs (taxes) on farming. Most farm machinery runs on diesel while oil is used for heating and transportation. Areas like Stockholm and parts of Norrland are especially dependent on food imports. For example, the Stockholm region only produces some 5% of the milk consumed and less than 10% of the meat.

Today there are no food or fuel reserves, instead the entire country is totally dependent on “just-in-time” supplies. Again, in the worst case scenario, there will be no cooking oil, 75% less fruits and berries, 67-70% less grains, 40% less milk, and 64% less pigs, chickens and eggs. The only thing increasing is sheep and cow meat since a lot of land only will be used for grazing.

Based on SPBI data

Swedes can be kept over the starvation line if only 25% of oil imports disappear, but we will experience food shortages and risk of starvation if a larger oil shock occurs (50-75%). Looking at the export-import data some commentators have estimated that 90% of all oil imports will be gone by 2030. And this is probably a conservative estimate since it doesn’t account for sudden shocks due to an economic crisis, conflict, and so on. 


In a recent opinion poll (2013) two out of every three (63%) Swedes stated that they wouldn't be able to handle a shorter crisis. People in Gotland, Öland (islands) and Småland were most worried about a future crisis (49% think they will experience a crisis). Most people (58%) can only manage for about one week but it's likely that the respondents underestimate how much resources are actually required for everyday life. For example, water (3 litres/day) and heating during the winter.


Sweden's food supply is in any case extremely vulnerable to a shortage in oil imports, and Swedes are not prepared despite a lacking government. Our dear politicians have absolutely no plan on changing this, instead they claim “we need to stay competitive” totally missing the point that growth is over! (0.3% per capita GDP growth the last decade). The situation is not made better by half of all our oil imports now coming from Russia that we are engaging in trade wars with (sanctions etc). 


Limits, desperate times and crazy solutions

Source: Pixabay CCO Public Domain

What about oil?

Oil is like a two edged sword. Considering climate change and ecological degradation we should stop using it tomorrow. Greenhouse gas emissions is only one of the reasons. Another is our usage of oil to make plastic products that now fill the oceans and kills marine life. On the other hand, we have made our civilisation totally dependent upon oil for transportation, food production, medicines and keeping the economy going. Economic growth is basically a function of energy (oil) per capita consumption. Also, in Sweden we import a staggering 50% of all the food we consume, while farmers go into debt or have to close down their farms (which is totally outrageous). If there is a serious oil shock we might not be able to feed our population and people would starve! One report said that we perhaps could eat more horse meat since we currently have 360 000 horses only for recreational use. That is a bizarre proposal for solution. 

I wonder what will happen when credit run dry due to an economic slow down, can we still import the oil we need? Looking at the current situation of falling commodity prices one might think that this would be a good thing. But I'm afraid it could be just the opposite. First of, it is lack of demand that has caused the current falling prices, people are broke and debt saturated, not some myth about "Saudi-America". Second, falling prices means that many commodity companies will face bankruptcy which eventually would mean falling supply. And once supply falls I'm not sure it will be able to come back online again as no one will fund these expensive and risky operations in a economic downturn. So either if there is a shock or we simply cannot afford it, we are very vulnerable to a loss of oil imports.

Limits to growth

Ordinary people are not aware of how precarious our situation really is since government officials have started changing their statistics. Since 2010 they have chosen to exclude GDP per capita measures adjusted for inflation, something that almost no journalist seems to have questioned. What has been seen as a "Swedish miracle" of strong GDP growth compared to rest of Europe, since 2008, has been total fiction that mainstream media fell for without critical analysis. Looking at the numbers, GDP per capita adjusted for inflation, we can see that Sweden actually only grew by 0.3% per year between 2006-2014 (see diagram). Compared to other "developed" nations Sweden places somewhere in the middle, with Poland having strong growth (3,5%/year) while the Greeks have suffered de-growth (-3,1%/year). What also becomes evident is that most of these countries have actually been stagnant or suffered de-growth. Something that is no surprise for those who are aware of the limits to growth, the fact that we live on a finite planet with a limited amount of natural resources and dwindling energy.  
Source: OECD statistics

Political theatre that serves no one

As with most things these days our politicians don't really have a plan for any of the above situations. It seems to be a rule these days that the more serious the situation gets the more they fight about inconsequential things. This becomes evident in the latest budget discussions. The conservatives don't want to raise taxes while the social democrats want to tighten finance but at the same time makes the debt problem even worse!

The central bank has adopted negative real interest rates and supported buying of securities in a desperate attempt to stimulate the economy while the government has presented a budget that is supposed to be financed by raising taxes and lowering government spending. This sends the signal of a totally incompetent government that has no clue of what its doing. These policies will only benefit the people who have financial assets, speculating on houses and stocks, while savers are being punished. Thus, making the debt crisis worse. The private sector has an enormous amount of debt (252% of GDP), way above the stagnant GDP per capita income, which according to one study makes Sweden the number one country with the largest private sector debt in the world.

Source: The Telegraph

Fictive wealth 

It is no wonder that the Swedish people are growing impatient with the political elite, especially when they present a story that does not fit with reality. The self serving myth of the "Swedish miracle" only help worsen the debt crisis at the same time as politicians escape responsibility. Swedish household debt has sky rocketed and now widely exceeds disposable income. The housing bubble reaches new highs for every month. But this is not real wealth, only fictive wealth, no products or services have been created. As most people probably understand, even if they repress it, there cannot be large deviations from the real economy without an eventual correction. It is not hard to figure out how it will end, rapidly growing asset prices in a country where income is stagnant is not sustainable. The hard part is telling when the bubble will pop. So when Swedes say "the Greeks have themselves to blame" then this will surely have to apply to the Swedes also when the crisis hits. All our debt is in the private sector, which is what kills economies, while the Greek debt is in terms of government debt.

A global slowdown   

Signs of deflation are now everywhere. Back in 2008 the central banks of the developed world and China decided to double down on failed policies that had promoted massive debts to accumulate in the private sector, that eventually led to a near implosion of the banking sector. Now here we are 8 years later and with $60 trillion in new debt that has not led to any significant recovery of the real economy, only asset inflation. But there is a limit to how much debt people can and are willing to take on. 
Source: The Telegraph

Now we see global currency markets in disarray, for example the Swedish krona lost 2.0%. The global debt bubble could be bursting leading to tightening financial conditions and a flight to safety into the US dollar. Emerging markets are struggling due to falling commodity prices. China has stumbled and is doing all it can to prevent a stock market collapse. Manufacturing and shipping is way down. And the list goes on, something is definitely happening. 

Desperate measures

Since interests rates are at zero, or negative, central banks have lost this weapon in their toolkit. All the stimulus that piled up even more debt has not led to any substantial recovery in the real economy. No monetary policy in the world can change the fact that we have reached limits. But desperate times have led to even more desperate measures. All G20 nations have put in force so called "bail-ins" which means that the big banks can take depositors savings next time there is a crisis. This is what happened in Cyprus. The EU is pushing Sweden to do the same and most likely we will go along with it, according to some sources it could come into effect by 2016. In other words, no one is safe when the next crisis hits. And all the suffering to come will be due to humanity's inability to understand that infinite growth on a finite planet is impossible and doomed to fail miserably.