http://www.commondreams.org/views03/1202-09.htm
Published on Tuesday, December 2, 2003 by the Guardian/UK

Bottom of the Barrel
The World is Running out of Oil - So why do Politicians Refuse to 
Talk About It?

by George Monbiot

The oil industry is buzzing. On Thursday, the government approved the 
development of the biggest deposit discovered in British territory 
for at least 10 years. Everywhere we are told that this is a "huge" 
find, which dispels the idea that North Sea oil is in terminal 
decline. You begin to recognize how serious the human predicament has 
become when you discover that this "huge" new field will supply the 
world with oil for five and a quarter days.

Every generation has its taboo, and ours is this: that the resource 
upon which our lives have been built is running out. We don't talk 
about it because we cannot imagine it. This is a civilization in 
denial.

Oil itself won't disappear, but extracting what remains is becoming 
ever more difficult and expensive. The discovery of new reserves 
peaked in the 1960s. Every year we use four times as much oil as we 
find. All the big strikes appear to have been made long ago: the 400m 
barrels in the new North Sea field would have been considered 
piffling in the 1970s. Our future supplies depend on the discovery of 
small new deposits and the better exploitation of big old ones. No 
one with expertise in the field is in any doubt that the global 
production of oil will peak before long.

The only question is how long. The most optimistic projections are 
the ones produced by the US department of energy, which claims that 
this will not take place until 2037. But the US energy information 
agency has admitted that the government's figures have been fudged: 
it has based its projections for oil supply on the projections for 
oil demand, perhaps in order not to sow panic in the financial 
markets.

Other analysts are less sanguine. The petroleum geologist Colin 
Campbell calculates that global extraction will peak before 2010. In 
August, the geophysicist Kenneth Deffeyes told New Scientist that he 
was "99% confident" that the date of maximum global production will 
be 2004. Even if the optimists are correct, we will be scraping the 
oil barrel within the lifetimes of most of those who are middle-aged 
today.

The supply of oil will decline, but global demand will not. Today we 
will burn 76m barrels; by 2020 we will be using 112m barrels a day, 
after which projected demand accelerates. If supply declines and 
demand grows, we soon encounter something with which the people of 
the advanced industrial economies are unfamiliar: shortage. The price 
of oil will go through the roof.

As the price rises, the sectors which are now almost wholly dependent 
on crude oil - principally transport and farming - will be forced to 
contract. Given that climate change caused by burning oil is cooking 
the planet, this might appear to be a good thing. The problem is that 
our lives have become hard-wired to the oil economy. Our sprawling 
suburbs are impossible to service without cars. High oil prices mean 
high food prices: much of the world's growing population will go 
hungry. These problems will be exacerbated by the direct connection 
between the price of oil and the rate of unemployment. The last five 
recessions in the US were all preceded by a rise in the oil price.

Oil, of course, is not the only fuel on which vehicles can run. There 
are plenty of possible substitutes, but none of them is likely to be 
anywhere near as cheap as crude is today. Petroleum can be extracted 
from tar sands and oil shale, but in most cases the process uses 
almost as much energy as it liberates, while creating great mountains 
and lakes of toxic waste. Natural gas is a better option, but 
switching from oil to gas propulsion would require a vast and 
staggeringly expensive new fuel infrastructure. Gas, of course, is 
subject to the same constraints as oil: at current rates of use, the 
world has about 50 years' supply, but if gas were to take the place 
of oil its life would be much shorter.

Vehicles could be run from fuel cells powered by hydrogen, which is 
produced by the electrolysis of water. But the electricity which 
produces the hydrogen has to come from somewhere. To fill all the 
cars in the US would require four times the current capacity of the 
national grid. Coal burning is filthy, nuclear energy is expensive 
and lethal. Running the world's cars from wind or solar power would 
require a greater investment than any civilization has ever made 
before. New studies suggest that leaking hydrogen could damage the 
ozone layer and exacerbate global warming.

Turning crops into diesel or methanol is just about viable in terms 
of recoverable energy, but it means using the land on which food is 
now grown for fuel. My rough calculations suggest that running the 
United Kingdom's cars on rapeseed oil would require an area of arable 
fields the size of England.

There is one possible solution which no one writing about the 
impending oil crisis seems to have noticed: a technique with which 
the British and Australian governments are currently experimenting, 
called underground coal gasification. This is a fancy term for 
setting light to coal seams which are too deep or too expensive to 
mine, and catching the gas which emerges. It's a hideous prospect, as 
it means that several trillion tonnes of carbon which was otherwise 
impossible to exploit becomes available, with the likely result that 
global warming will eliminate life on Earth.

We seem, in other words, to be in trouble. Either we lay hands on 
every available source of fossil fuel, in which case we fry the 
planet and civilization collapses, or we run out, and civilization 
collapses.

The only rational response to both the impending end of the oil age 
and the menace of global warming is to redesign our cities, our 
farming and our lives. But this cannot happen without massive 
political pressure, and our problem is that no one ever rioted for 
austerity. People tend to take to the streets because they want to 
consume more, not less. Given a choice between a new set of matching 
tableware and the survival of humanity, I suspect that most people 
would choose the tableware.

In view of all this, the notion that the war with Iraq had nothing to 
do with oil is simply preposterous. The US attacked Iraq (which 
appears to have had no weapons of mass destruction and was not 
threatening other nations), rather than North Korea (which is 
actively developing a nuclear weapons program and boasting of its 
intentions to blow everyone else to kingdom come) because Iraq had 
something it wanted. In one respect alone, Bush and Blair have been 
making plans for the day when oil production peaks, by seeking to 
secure the reserves of other nations.

I refuse to believe that there is not a better means of averting 
disaster than this. I refuse to believe that human beings are 
collectively incapable of making rational decisions. But I am 
beginning to wonder what the basis of my belief might be.

© Guardian Newspapers Limited 2003

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