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Scraping the Bottom

Posted: 04/17/2012 3:38 pm

We are all trust fund babies living off the wealth of our ancestors. I’m not talking Mommy and Daddy. I’m talking Barney.

That cuddly T-Rex and all his dinosaur friends, along with those giant ferns and tiny trilobites, died millions of years ago only to become, very gradually, the energy that fuels our modern life. Until very recently, in geologic time at least, the earth held virtually all of that powerful carbon in a lockbox. “You can’t touch this buried treasure until you come of age,” the earth told humanity.

But before the human species collectively entered adulthood, a status determined by our ability to demonstrate stewardship and postpone gratification, we figured out how to break into the lockbox and loot it. Now the trust fund is heading toward zero, and we’re starting to freak out. We want to keep partying like it’s 1899, a time when our derricks runneth over. But the lights at this rollicking carbon party are starting to flicker, and our creditors are pounding on the door. We’re scrambling to find the money to pay them to keep the liquor flowing and the music playing. But we’re having difficulty scrounging up the loose change. We just don’t want to grow up and face the music of climate change.

You’ve no doubt heard about peak oil. But oil is only one of the precious trust-fund resources that is running out. As Michael Klare writes in his latest book The Race for What’s Left, just about every commodity we depend on is becoming scarce: oil, natural gas, key metals, rare earth elements, and even arable land. As a result, like greedy little kids with a cookie jar, we are scraping the bottom to get all that remains.

“In all likelihood, we are looking at the last oil fields, the last uranium deposits, the last copper mines, and the last reserves of many other vital resources,” Klare writes. “These materials will not all disappear at once, of course, and some as-yet-undeveloped reserves may prove more prolific than expected. Gradually, though, we will see the complete disappearance of many key resources upon which modern industrial civilization has long relied.”

Our desperation can be measured by just how far we will go to extract the last resources. We are digging for oil in the most inhospitable places on earth, buried under Arctic ice or over six miles beneath the ocean floor. We are injecting high-pressure liquid into shale -- fracking -- to release trapped natural gas. We are digging desperately for the minerals that keep our cell phones working and our iPads shiny bright.

Gosh, some of you might be thinking. They keep finding new oil fields every day. Off the coast of Brazil, for instance, the latest seismographic instruments located huge reserves under a mile of salt. This included a “supergiant field” with as much as eight billion barrels of oil. So don’t listen to all these killjoys: let’s turn up the music and dance! Except, oops, eight billion barrels turns out to be not so much oil after all. Writes Joel Cohen in The New York Review of Books, this amount “represented less than one hundred days of the world’s daily oil consumption in 2006.”

And there are consequences, unintended and otherwise, to our desperate efforts to suck up all the remaining carbon. Consider fracking. Originally, environmentalists rather liked the prospects of relying more on natural gas than coal, the burning of which contributes so much to global warming. “If we could convert our coal-fired power plants to natural gas (which in most cases is not that hard to do), carbon emissions would drop,” explains Bill McKibben. “But it’s actually not that simple. Natural gas—CH4—in its unburned state is a remarkably powerful greenhouse gas itself, molecule for molecule many times stronger than CO2. So if even a little bit leaks out to the atmosphere in the drilling process, gas, according to some estimates, can cause even more global warming than coal.”

The problem at this point, despite Klare’s eloquent descriptions of dwindling resources, is that we still have too much accessible carbon. According to a recent OECD report, fossil fuels will still represent 85 percent of the global energy mix in 2050. That means a huge jump in greenhouse gas emissions. We’ll kill off more than a million extra people through the additional air pollution, but that won’t make a dent given the overall population increase of a couple billion. The effect of all those car-drivers and burger-eaters will drive energy consumption and global temperatures skyward.

We must go green, you say. Well, yes, that’s true. But even our green technologies are dependent on these dwindling resources. Lightweight batteries for electric cars require rare earth elements. Photovoltaic solar cells need silicon and platinum, not to mention the rarer minerals gallium and indium. To exploit the renewable sources of energy -- the sun, the tides, the wind -- requires modern technology that depends on precious resources. Still, they’re all better than a lump of coal, as Charlie Brown might say.

Klare recommends a “race to adapt” by competing to be ultra-efficient and more reliant on renewables. This is, of course, reasonable. We just have to quicken the pace. A lot. For instance, I was surprised to learn, on a recent visit to the Bay Area, that San Francisco now requires all citizens to separate out compost. Actually the law went into effect back in 2009. No other major city that I know of has followed suit.

A more radical potion would be to stop looting the lockbox before it’s completely empty. In other words, we should consider keeping some of that carbon in the ground. At the end of last December, an unlikely coalition of film stars, governments, and soft drink companies raised over $100 million to defray the costs of not drilling for oil in the Amazonian rain forest in Ecuador. “Supporters of the scheme argued that it could be a model for change in the way the world pays to protect important places,” writes John Vidal in The Guardian. “The money raised is guaranteed to be used only for nature protection and renewable energy projects. Nigeria, Cameroon, Gabon and other countries with oil reserves, have investigated the possibility of setting up similar schemes as an alternative to traditional aid." 

It’s one thing to pay Ecuador or Gabon to show restraint. But what will it take to stop BP and Chevron and Total and the China National Petroleum Corporation from going after every last drop of fossil fuel? Extraction is in their very DNA. They will only turn to other pursuits when it’s profitable to do so. The international community, in other words, has to rig the markets to make extraction a lot more expensive and renewables a lot more profitable.

Raising the price of gas would certainly discourage its use -- and that would be a good thing -- but the pain would fall largely on the consumer. Most carbon taxes operate this way. Beginning this July 1, the Australian government will assess a carbon tax of $23 for every ton of carbon dioxide pollution. The top 500 polluting companies will pay the tax, generating revenues of $24 billion over three years, which will go tax cuts, social welfare, energy efficiency, and green technology investments. But the companies will likely pass the costs on to the consumers.

Carbon taxes are useful, but we should consider taxes on extraction that are steep enough to discourage the oil, natural gas, and mineral companies from even breaking ground. It is extraordinarily risky to dig beneath the Arctic ice and drill miles beneath the ocean floor. But those risks -- and the environmental consequences -- are not reflected in the costs of the operation or the price of the extracted materials. Only by establishing a more sensible cost to extraction can we discourage companies from going to extremes.

The bigger change we have to make is not with markets but with mindsets. At some point, we trust fund babies have to grow up. We have to stop sponging off our elders and prepare to leave something for the next generations.

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We are all trust fund babies living off the wealth of our ancestors. I’m not talking Mommy and Daddy. I’m talking Barney. That cuddly T-Rex and all his dinosaur friends, along with those g...
We are all trust fund babies living off the wealth of our ancestors. I’m not talking Mommy and Daddy. I’m talking Barney. That cuddly T-Rex and all his dinosaur friends, along with those g...
 
 
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HUFFPOST SUPER USER
MrBIgp
If I'm wrong, please show me
05:50 PM on 04/19/2012
We are not running out of uranium, the price will go up, but the price of uranium is only a small part of the price of nuclear electricity. Generation IV reactors will be able to utilize a much higher percentage of the uranium than do today's plants. If we develop the liquid fluoride thorium reactor, it will provide tens of thousands of years of electricity. Our greatest resource is human ingenuity.
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HUFFPOST SUPER USER
MrBIgp
If I'm wrong, please show me
11:25 PM on 04/18/2012
Rare earth metals are not rare and are not "dwindling" - shortage is due to policy failure.
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HUFFPOST SUPER USER
MrBIgp
If I'm wrong, please show me
02:04 PM on 04/19/2012
Rare earth metals are about as plentiful as copper, nickle, zinc and lead. The main problem is that they are hard to process, required expensive chemical waste treatment. Also, there is always a substantial amount of thorium in rare earths which is slightly radioactive and due to extreme regulations, it is classified as radioactive waste. Therefore, it is a regulatory nightmare to dispose of. China doesn't care about these problems. They now produce almost all of the rare earth metals.

http://en.wikipedia.org/wiki/File:Elemental_abundances.svg
HUFFPOST SUPER USER
William50
11:59 AM on 04/18/2012
If you believe this you are living in a small apartment in a mega city. Get out and see what the real people are doing.
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HUFFPOST COMMUNITY MODERATOR
SShaw490
A man hears what he wants and disregards the rest
11:17 AM on 04/18/2012
I don't know whether the big problem is dwindling resources or exploding numbers of people who want to use those resources. Up to recent times, the number of people on the Earth that lived an advanced, consumptive lifestyle was maybe one billion - basically the West + Japan and some of Eastern Europe. Today, that number is more like 2 billion, and as the BRIC nations continue to develop, it's going to increase from there. Until recently, 80 million bbl/d was plenty of oil for the world; today we need nearer 90, despite REDUCED consumption in the US.

I tend to despair a bit when I think of the global issue - then I realize that this is like voting. I'm one person with one vote about how the world is going to work. I get to vote every day, by driving a Volt, by limiting my commutes, by recycling everything I can, by sending my son to college to become an Environmental Scientist, by consuming less of everything and trying to elect poltical people who believe in responsible behavior. In short, by acting like an adult.

The world is going to do whatever it's going to do. I'm voting with my wallet and with my lifestyle. It's just one vote in a big constituency, but I'm going to do what I can and hope for the best.
HUFFPOST SUPER USER
DanInLA
11:07 AM on 04/18/2012
Commodities have always been scarce.
HUFFPOST SUPER USER
MassWG
11:05 AM on 04/18/2012
Part 1

" But even our green technologies are dependent on these dwindling resources. "

A smart nation would use as much of these dwindling resources as possible RIGHT NOW, while they are still relatively cheap and plentiful, and devote their use almost entirely to building a more efficient, more renewable energy infrastructure.

We could be that nation. Without a radical increase in spending or borrowing, we could engage in a radical SHIFT in spending/borrowing, shifting from consumption/destruction of wealth (military spending, bureaucratic redundancy, bridges-to-nowhere porkulus, etc.) to production/investment. Corporations and citizens would benefit from that investment, but they would have to WORK (and actually produce) and sacrifice in the short term to realize long term gains.

Unfortunately, Keynesian-type economists (ala Krugman) seem to make no distinction between types of spending, since they see the goal of spending as increasing consumer demand rather than achieving a real return on investment. They are correct that our economy, as currently structured, is driven by consumption (and by leveraging debt). But they are incorrect in thinking that model is at all sustainable or desirable.
HUFFPOST SUPER USER
MassWG
11:04 AM on 04/18/2012
Part 2

And of course right-wingers refuse to even consider the possibility of productive government spending (at least partly because recent history supports that doubt, given that corporate/political interests now completely outweigh the public interest in policy making). What we need is a fiscally-conservative progressive agenda (oxymoronic, yes), one that can smash the status quo and accept that we can borrow/tax our way to prosperity only insofar as we get a true return on the funds we borrow/tax (in excess of the minimal amount required to run a limited government, of course - we can't expect a return on military, justice system, etc.).

When money was tied to gold, governments were forced into thinking/acting somewhat realistically and responsibly, or else they paid an immediate price. Fiat money allows governments (especially one with global reserve currency) to kick the can down the road. We may be getting close to the end of the road.

Is it possible to have such a thing as a limited-government progressive?
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HUFFPOST SUPER USER
shankapotomus
10:42 AM on 04/18/2012
You can tell he doesn't have a clue.
11:41 AM on 04/18/2012
And you base that on what facts, exactly?
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HUFFPOST SUPER USER
shankapotomus
01:00 PM on 04/18/2012
That we have way plenty of all of it, we just now now we have more oil than the Saudi's.
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HUFFPOST SUPER USER
grappler1987
Heaven is a gift, not a reward
10:19 AM on 04/18/2012
"The international community, in other words, has to rig the markets to make extraction a lot more expensive and renewables a lot more profitable."

Don't rig it. Develop a more competitive solution. Rigging drives up cost and the poor get hurt the most.
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Robert McGehee
I used to be indecisive...Now, I'm not sure.
09:59 AM on 04/18/2012
Most people in the United States think (?) that every barrel of oil produced here will be consumed here. Need oil independence? Simple, drill more. Well, that's just not the way things work. Most oil produced is sold on the international market. That mean to the highest bidder. I have seen figures from the Energy Department, detailing month by month oil production and oil export. Amazing how often we export the majority of our production.
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HUFFPOST SUPER USER
niumarmion
a temporary being
09:51 AM on 04/18/2012
The author is making a mistake by using a historical perspective due to the current magnitude of the human population and its growth rate. Peak natural resources is just one aspect of the unsustainability of the planet.
11:43 AM on 04/18/2012
the 'magnitude of the human population and its growth rate' is actually dropping:
http://en.wikipedia.org/wiki/File:World_population_growth_rate_1950%E2%80%932050.svg

As the economy grows (using natural resources), more people get out of poverty (using natural resources) and have less people. Population has basically leveled off and will probably decline over the next hundred years. What is it with liberals recycling debunked theories from the sixties and seventies. Oh and who needs to stop having kids? Oh ya 'those' people.
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HUFFPOST SUPER USER
niumarmion
a temporary being
03:32 PM on 04/18/2012
You are making typical western-based assumptions. This report by the U.N. refutes them:

http://www.un.org/esa/population/publications/longrange2/WorldPop2300final.pdf

Also, the increase in the people getting out of poverty will accelerate the consumption of natural resources. That is why the U.S., which does not have the largest population, is the world's largest consumer of natural resources.
Bernique
Solar is clean, cheap and plentiful
08:58 PM on 04/18/2012
marmion -- multinationals want more and more and more consumers. They don't care about the planet, or how the consumers live. It's diabolical. We are on a rapidly unsustainable situation that is good for ... wars and conflicts, and their profiteers.
08:57 AM on 04/18/2012
The major difference being: children don't know better and greedy adults...don't want to know better. And when the 'jar' is empty...what then???
cosmicdart
paragon of paradigms
08:45 AM on 04/18/2012
Perhaps a world war might reduce our worldwide population from seven billion to seven million, and then all will be well once again. The only other alternative is to get access to the nearly unlimited natural resources of our Solar System through the use of spacecraft and robotics. A nuclear war would also cause global cooling.
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HUFFPOST COMMUNITY MODERATOR
SShaw490
A man hears what he wants and disregards the rest
11:19 AM on 04/18/2012
That's kind of like trying to fix a rattle in your car by crashing it into a school bus.
cosmicdart
paragon of paradigms
04:40 PM on 04/18/2012
This is how human beings always fix things. In general, most people, as a collective, are rarely rational. The human historical trend is for inadvertent self-destruction. There's a third alternative, but that requires non-existent rationality.
11:45 AM on 04/18/2012
so your solution is one of two ridiculous ideas. A total annihilation of the species or a ridiculously costly mining operation in space. LOL. You need to take off the tin foil hat!
cosmicdart
paragon of paradigms
04:43 PM on 04/18/2012
I have a third alternative, but most human beings aren't rational enough to make it work. War is how we have always solved all of our problems. We're much more destructive towards each other than we are of our ecology, and this is what will save our ecology in the long term.
07:21 AM on 04/18/2012
Commodities are scarce because the world population has double in the last 50 years....
11:48 AM on 04/18/2012
And if you put all the people on earth in one spot, it would cover an area less than the size of Great Britain. So what population has doubled! We are healthier and more prosperous as a species ever! More people have risen out of poverty (which will slow pop growth too) than ever before. There are less people living in true poverty (less than $1 a day) than ever before in the history of mankind! You and this article are nothing more than killjoys. Do you tell kids there is no Santa too?
03:57 AM on 04/18/2012
Are we smart enough as a species to think our way through this problem, or are we doomed to let the finitude of the planet coupled with dumb algorithms (e.g. the "invisible hand") to eventually ... what? Easter Island on a global scale.
HUFFPOST SUPER USER
MassWG
11:18 AM on 04/18/2012
We are definitely smart enough to think our way through this problem, but three things must also occur:
1) We can't allow ourselves to OVERTHINK the problem or let ideology cloud our thoughts
2) We have to come to some consensus on appropriate and equitable courses of action
3) We would have to have the collective courage, resolve, and willingness to actually ACT

I think the list starts out as completely impossible and gets more difficult from there.
04:46 PM on 04/18/2012
Let's hope we have it in us to manage this more difficult than impossible task before hitting rock bottom. Otherwise we'll be the laughingstock of the galaxy, not to mention our own beetle population.