Peak Everything: Preface to the paperback edition

by Richard Heinberg

In titling this book “Peak Everything,” I was suggesting that humanity has achieved an unsustainable pinnacle of population size and consumption rates, and that the road ahead will be mostly downhill—at least for the next few decades, until our species has learned to live within Earth’s resource limits. I argued that the industrial expansion of the past century or two was mainly due to our accelerating use of the concentrated energies of cheap fossil fuels; and that as oil, coal, and natural gas cease to be cheap and abundant, economic growth will phase into contraction. I further pointed out that world oil production was at, or very nearly at its peak, and that the imminent decline in extraction rates will be decisive, because global transport is nearly all oil-dependent, and there is currently no adequate substitute for petroleum. Finally, I noted that the shift from growth to contraction will impact every aspect of human existence—financial systems, food systems, global trade—at both the macro and micro levels, threatening even our personal psychological coping mechanisms.

Nothing has happened in the past three years to change that outlook—but much has transpired to confirm it.

A good case can now be made that the year 2007, when this book originally appeared, was indeed the year, if not of “peak everything,” then at least of “peak many things.” Since then we have begun a scary descent from the giddy heights of consumption achieved in the early years of this century.

SNIP

The only serious argument that world oil production could theoretically continue to grow for more than a very few years is put forward by parties who explain away the evidence of declining discoveries, depleting oilfields, and stagnating total production by claiming that it is demand for oil that has peaked, not supply—a distinction that hinges on the fact that oil prices these days are so high as to discourage demand. But since high prices for a commodity are usually a sign of scarcity, the “peak demand” argument really amounts to a distinction without a difference.

The oil situation is dire enough that one might assume it would be dominating headlines daily. Yet in fact it garners little attention. That’s because the world’s ongoing and worsening oil crisis has been obscured by a more dramatic and obvious financial catastrophe. As we all know only too well, Wall Street banks—which had spent the past couple of decades giddily building themselves a quadrillion-dollar house of cards—went into a free-fall swoon in the latter half of 2008 (right after the oil price spike), only to be temporarily rescued with trillions of dollars of government bailouts and guarantees. It was a spine-tingling show—and would have amounted to months of fine entertainment, had it not been for the fact that millions of jobs, thousands of small businesses, and the economies of several sovereign nations also came tumbling down, and there just weren’t enough trillions available to rescue all of them (it obviously pays to be “too big to fail” and to have friends in high places).

The financial aspects of the crisis were so Byzantine, and the cast of players so opulently and impudently villainous, that it was easy to forget the simple truism that all money is, in the end, merely a claim on resources, energy, and labor. A financial system built on staggering amounts of debt and the anticipation of both unending economic growth and absurdly high returns on investments can only work if labor is always getting cheaper, and supplies of energy and resources are always growing—and even then occasional hiccups are to be expected.

But that set of conditions is so last century.

http://www.energybulletin.net/node/53860