The New York Times wrote:
>> Oil Industry Sets a Brisk Pace of New Discoveries
>> By JAD MOUAWAD

Michael Klare wrote:
> As it happens, though, anyone who jumped to the conclusion that this field
> could quickly or easily add to the nation's oil supply would be woefully
> mistaken....

Thus, I put a question mark in the subject line of this thread.

As I've said before, I think that if we are actually encountering peak
oil, that's a _good thing_. We need to stop burning oil as soon as
possible, in order to slow, stop, and reverse the global warming
process. I'm hoping that Klare is right about a trend toward
increasing per-barrel cost of extracting petroleum over time, while
also hoping that this cost is reflected in the market price of oil
(discouraging its purchase and use).  I hope that all fossil fuels
(coal, natural gas, etc.) suffer the same fate.

On a theoretical level, the standard peak oil scenario goes back to
David Ricardo and Thomas Malthus: the world population grows and grows
and hits diminishing marginal returns in extraction of minerals from
nature. (For these economists, it was agriculture using up the natural
fertility of the soil). Thus, the economy settles down into a
miserable "stationary state" due to natural constraints.

A modern leftist version of this theory might blame capitalism instead
of population growth, saying that capitalism inherently acts like a
toddler, always testing limits and going beyond them: touching the
burner on the stove, being burned, being chastised, but then trying
again, or trying some new dangerous behavior.[*] This is a cyclical
theory rather than one about long-term trends, however: the resulting
rise in the price of oil not only discourages the utilization of oil
(e.g., by raising the efficiency of its use or development of
substitutes for it, such as natural gas) but encourages further
development of new and cheaper ways to extract it. Any recession that
results from higher oil prices (or from any other cause) would also
reduce demand. This reaction to the high price of oil would cause a
fall in its price, encouraging a movement into a new "let's burn a lot
of oil" boom.

Thus, we would see a cycle, one I haven't seen in doomsday scenarios
about peak oil. As far as I can tell, the emphasis is on
Malthus/Ricardo stationary states with a different culprit than
population.

To my mind, Marx would have had a different emphasis, following his
dictum that "the real barrier of capitalist production is capital
itself" (emphasis suppressed). It's not only that capitalism always
leaps beyond barriers, leading to (almost always temporary)
destruction. In addition, the nature of unfettered or neoliberal
capitalism does not only involve the abuse of labor (when it doesn't
face resistance) but also the progressive destruction of nature, as
with global warming. In mainstream economic terms, the problem is that
the "price system" of markets does not deal with external costs
(pollution) well at all: in fact, markets encourage pollution because
purchasers of polluting products do not pay the full cost. In
addition, the costs of reversing pollution's typically exceed the
benefits of its creation. Making matters worse, these costs are
usually paid by a different group of people -- the working class,
taxpayers in general -- than the group who reap the benefits.

Instead of seeing merely a cyclical story of rising and falling oil
prices, in this view, the process of destroying the earth is more of a
trend -- unless there is some sort of government action. Whether or
not this action actually reverses the trend -- or reverses it without
the working class and other subordinate groups bearing all of the
costs -- depends on what we do, i.e., what popular struggles we see on
the political, economic, and societal levels.

-- 
Jim Devine / "Segui il tuo corso, e lascia dir le genti." (Go your own
way and let people talk.) -- Karl, paraphrasing Dante.

[*] Speaking of which, I spoke to a student who had had _two_ "texting
while driving" accidents (while there was a story about a much more
serious case of this phenomenon recently on US National Public Radio).
Two? why didn't she learn from the first accident? It's probably
because texting is addictive (for some people, at least). Capitalism's
"damn the torpedoes, full speed ahead!" expansionism seems to mirror
the self-destructive behavior of an addict. Of course, one reason it
does so is because of capitalist hopes and expectations that the costs
can be shoved off on the working class and other dominated groups or
on nature.

BTW, if there has been an increase in individual addictive behavior in
recent decades (something I perceive), maybe it's because, in this
neoliberal age, people have been taking capitalism's systemic behavior
to heart and are imitating it. If we're all supposed to be capitalists
(ahem -- "entrepreneurs"), we should act that way, while blaming
ourselves for any failure to attain that exalted status. Such failure
encourages addiction, too, as a way to kill the pain.
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