The following discussion is an attempt to bring to the fore The Most important event of our time. That event is called PEAK OIL.
Peak Oil is the term coined by a Texas geologist by the name of M. King Hubbert to describe that point in the earth’s history when mankind has consumed one half of all the petroleum that is available. After that peak, also known as Hubbert’s Peak, production of oil will go into decline. Using clever statistical methodology, Hubbert predicted at The national API meeting in San Antonio Texas in 1956 that US petroleum production would peak about 14 years hence and thereafter go into irreversible decline. He was ridiculed and persecuted for the next 14 years but in 1970, it happened. He had nailed it. US production has been in decline ever since although it has blipped upward about 10% since 2005. He also predicted dire consequences for the US Economy based on his predictions and for this and other reasons he is regarded as the father of Peak Oil. Few people then understood the consequences of Peak Oil and few today as well but finally prescient people worldwide are starting to sound the clarion call of what Peak Oil will mean to our lifestyles.
Where does oil came from? It was a result of photosynthesis in which CO2 and water combine with solar energy to form glucose and in the process release Oxygen.. Glucose fuels the growth and development of the organism which adds mass and complexity, perhaps becoming green algae.. During a period of global warming several hundred million years ago algae and other organisms proliferated, thrived and then died, falling slowly to the bottom of a warm prehistoric sea. If conditions were right, something called a nutrient trap could develop and these organisms were not broken down by oxygen and the carbon instead of being returned to the surface as CO2 became instead sequestered in an accumulating mass of carbon rich matter. I will gloss over the additional details of conversion and oil formation and skip ahead to Pennsylvania when an entrepreneur named Edwin Drake drilled the first commercial oil well in 1859. America was thus first to the petroleum banquet and it was this discovery and utilization of an unimaginably rich and concentrated energy source that fueled an explosive industrial expansion. We have consumed in a period of only 150 years what it took the world more that 100 million years to produce. And now as Richard Heinberg has stated in his book of the same name, “The Party’s Over.”. It is typical of organisms and communities that experience an unexpected energy subsidy to go through a process of overshoot and collapse. We are entering what another well known writer on peak oil, James Howard Kunstler has coined “The Long Emergency.”
The world is today producing about 74 million barrels per day (Mbd) of crude oil. This is just crude and doesn’t include other categories such as ethanol, biofuels etc. WORLD PRODUCTION has been on an undulating plateau since about 2005. The US consumes ¼ of that total. Imports peaked in 2005 at13,714,000 barrels per day and has declined to 11,755,000 per day in the last full year of statistics (2010). This represents a drop of 2 million barrels per day primarily due to the prolonged and severe recession. US production reached a low of under 5 million barrels per day in 2005 but has rebounded over 10% in the past 6 years, primarily due to the Bakken Shale fields in ND. In 2010 the figure was 5,512,000 barrels per day. Put in percentages in 2005 the US was importing 72.5% of its oil products and by 2010 that figure had dropped to 68%. I caution the reader that there are a myriad of categories of petroleum production and the figures are often manipulated to reflect the authors bias or agenda. If you look at all sources of production including lease condensates and so called refinery gains, bio fuels, ethanol production and compare these net imports/exports then the numbers change significantly. For example it drops our imports to about 50%. I have chosen to make my comparisons of crude oil alone. I hope that isn’t terribly confusing. My sources for these figures are the EIA. The link: http://www.eia.gov/totalenergy/data/annual/pdf/aer.pdf. Figures to remember: The US is 4 ½% of the population and consumes 25% of the world’s oil.
It is absolutely fundamental for the reader to grasp how phenomenally important oil has been to the transformation and development of modern society. It is much more than a fuel. It is the feedstock for plastics, fertilizer, pesticides, paints, fabrics, and lubricants, pharmaceuticals, and a myriad of building materials. Indeed, one author has written that oil will eventually become too valuable to use as a transportation fuel.
Oil is the basis of our economic system, a point largely missed by contemporary economists who maintain that it is the allocation of capital and labor that forms this basis. Our growth economy exists because of oil. It is also the basis of our credit and debt based financing of the economy. Oil promotes growth by its very efficiency as a low cost energy source. The low cost energy of oil fuels almost all of our industrial machines and it is in effect itself a kind of machine that converts energy into wealth. It is analogous to having thousands of slaves at our beck and call every day. My 200 hp pickup truck thundering down the highway does the work of 4000 people! Many of the empires of ancient times became empires on the basis of the energy harvested from slaves. At one point it is said that ancient Rome had a ratio of slave to free of 9:1, which was an unsustainable ratio. The contemporary American has the equivalent of 50 slaves working for him 24 hrs a day. This will also prove to be unsustainable. Petroleum has been a primary or contributory cause of many recent wars with the Iraq fiasco only the most recent example. The inevitable depletion of this, the most important energy source ever discovered, will alter our lives going forward like no other event in national or world history.
It is time for us residing in this beautiful isolated valley to recognize the reality of Peak Oil and how it will shape the future of Jackson Hole. We can either shape our future adapting in the context of petroleum depletion or fall prey to its effects. I believe that local governments are the best qualified to evaluate our local dependency on oil and what strategies we might employ to try to attenuate and mitigate the impacts of scarce and expensive oil upon our community. I have little expectation of help at least initially from our state or national government. Fortunately we in Jackson have had some farsighted local leaders who love this valley and who have tried to provide a culture of sustainability, community organization and responsible energy consumption. I believe it is now time for the people of this area to come together and devise a master strategy for the future life of our town. I hope Jackson will survive as a healthy place to live and work and raise families but if it does, it will certainly be in a much different form than it is today. If it does, it will become intensely local. Angus Thuermer, one of the editors of the Jackson Hole News and Guide newspaper, remarked to me that Jackson lies at the” end of the food chain.” We are indeed a long way from any metropolitan area. Without petroleum no one and nothing arrives in Jackson. And that means virtually all our food, our fuel, our building materials, our medical supplies, even our elk feed. What do we make in Jackson? Nothing. How would we cope if that pipeline went dry, or if the electrical grid failed? Some of you who were here in the winter of 1978 remember what it was like when the mercury plummeted to 60 below zero. Power lines contracted and snapped, the ceiling in the courthouse collapsed and travel came to a standstill with no electricity, no gas, and no lights. Eventually temperatures moderated but that event gave me a foretaste of what cataclysmic energy deprivation felt like. Our future energy shortages will probably involve shortages of individual energy components, perhaps like what China is experiencing at the moment. In Chendu, the capital of Sichuan province, a city of 10 million, trucks have been lining up at the three stations who have diesel, waiting hours to receive their paltry ration of 40 litres..Gasoline is $4.54/gal in some towns in the eastern Sierra and almost $10 in the Hebrides when they can get it. Maine-iacs in the state of Maine are being asked to conserve electricity because of short supplies. These are places at the end of the food chain too.
My point is that it is time that we develop a plan for coping with energy resource depletion before it is upon us. An event of this magnitude will almost certainly involve a task force approach to assess our vulnerabilities and strengths and local resources to devise our survival plan. This may involve formulating a risk management approach of scenario creation looking at every important component of the community such as communications, policing, delivery of essential services, access to food and water, care of our vulnerable members and all of this to be done in a context of scarce or expensive petroleum or electricity. This town has done a lot of this work already, for example powering all of its municipal operations with renewable energy, but equally important besides crisis management is to look at what changes we might undertake to make this valley and its towns more livable. For most of the 20th century we built our towns to service the automobile and our expanding sprawling suburbs. The existence of sprawl was only possible because of virtually free seemingly inexhaustible energy. In retrospect, it was a terrible expensive mistake. The outlying suburbs are ultimately doomed. We are fortunate we live in a small place and haven’t had the room to expand like our neighboring states to the south and west. But we should take action now. At the very least, we should mandate energy efficiency in all aspects of our lives. This is not something we can leave to market forces. Increasing efficiency is easy. It is the low hanging fruit. This must involve all aspects of county and regional planning. We will need to look at our civic structures and building codes. We should use carrots as well as sticks to ensure compliance. We need first to educate and convince our citizens of the necessity of our task but we will need their cooperation. Increasingly as we localize, we will need to rely more and more upon each other personally. For example, we may need to think of abandoning plats for new suburbs composed of single-family homes and mobile homes. In a cold mountain valley, they are energy hogs. We should look at contiguous structures of higher density with super insulated building envelopes, fuel stingy appliances and perhaps earth sheltered or solar thermal augmented design features. Germany is doing this today. Offer our builders options to reduce administrative and permit costs if they can find ways to build green. For example I would waive all permits if a builder could increase the energy efficiency of a building say, 50 or 100 % over a conventional building. Building material costs can only increase in the future and we must build for extended building lifespan. We should abandon single use zoning and move immediately to mixed use where people could live and work and shop in the same place. Some current absurd codes that require so many parking spots per unit need to be abolished. I recently returned from northern Italy and in Bolzano people can walk to obtain all the necessary and enjoyable niceties of life. The streets are crowded with folks on foot and on bicycles that are easily rented in the town square near the train station. Cars are discouraged but not prohibited. And striking to an American’s eyes, very few people are FAT. Small trucks supply the stores, offices and habitations with their necessary supplies. Many of the workers live on site. The first floors seemed to be shops and restaurants, the next floor was often office space and above the offices were apartments and homes. Alleys allowed the offices and retail shops to function without disturbing pedestrian traffic. We could do this in Jackson. As another local example, we have a sprawling largely single floor hospital that is energy profligate and inefficient as are most hospitals. We have staff and nurses who cannot find affordable housing often coming from great distances over perilous roads from Star Valley and Idaho. Why don’t we have a 4 or 5 story hospital with housing and necessary shops for our staff? I was in just such a hospital in France 30 years ago after a skiing mishap. The nurses lived on site in the hospital in their convent. Why don’t we adopt a livable sustainable sister city instead of cities overseas with which we have little in common. Certainly there are state and federal regulations that will have to be changed to accommodate a healthy new dynamic but it just those existing regulations that have let us to our current predicament.
This discussion must begin with life’s basic necessities starting with food and water. How can we procure our food locally? How many people could this valley support if we had to feed ourselves? Maybe we should think about permitting sustainable farming practices around our periphery if the soil is suitable for agriculture. That flat fertile land in the National Elk Refuge looks very suitable for agricultural production for the town of Jackson. Kelley Warm springs could be a good place for a geothermally heated greenhouse. We may want to look at a drilling plan to try to prospect for other hot rock geothermal areas to heat our greenhouses .Why not produce electricity domestically? Our consumer owned utility allows net metering but why cannot Lower Valley or our state government help offices and homes become individual mini power plants delivering power to our local grid with wind or PV solar or local hydro? A lot of electricity available on the regional grids is lost to transmission losses. We have a recently rebuilt dam on Jackson Lake, which probably could supply the entire valley with cheap hydroelectric power. I believe it could be done without disrupting wildlife, our recreational businesses or visually impairing the beauty of that great lake. Of course all of these ideas involve difficult trade offs and compromise but obtaining a source of renewable clean energy is a potentially huge payoff.
This is a valley dependent on tourism. Will the tourists continue to arrive from the far-flung corners of the empire if gas or JP4 jet fuel goes to $10, $20 or $50 a gallon or if it becomes rationed? There is one way that they could arrive. That is by rail, the way visitors to Yellowstone used to arrive. Trains are unique in that their engines can run on almost any fuel from electricity to coal to corncobs. The same cannot be said about planes or buses or heavy trucks. Our valley electricity could supply those trains and streetcars and trolleys to move our guests who will always want to see this, the most beautiful valley in America. We should move to electrify our entire national transportation infrastructure immediately. It will take time to lay track and build a rail network but Wyoming is one of the richest states in the country per capita and we need to start this immense project while we still have surpluses. Where will the money come from for this massive project that will rival the interstate highway network in scope and cost? Our country has subsidized automobiles and highway based transportation and aviation for almost a century. The gas tax is $0.18 a gallon and the tax on jet fuel can be as little as 4.4 cents!! We need to drastically raise the tax on petroleum while there is still petroleum to tax. Alan Greenspan recently suggested $3.00/gallon, which is about what Europe charges. In fact it may need to be more because they already have a rail infrastructure. There is no way we can repair and maintain all our roads and bridges nor should we. We need to prioritize our key travel corridors and gradually abandon non-essential maintenance on hard surfaced highways. Get used to gravel roads. They are in your future. Asphalt comes from what? And concrete is extremely energy costly to produce. The 8-lane concrete and steel highway bridge across the Mississippi to Minneapolis cost a small fortune and will have a limited lifespan. A steel rail bridge is far cheaper and faster to build, inspect and maintain. Forget airport expansion projects anywhere. Perhaps they can morph into transportation hubs for a variety of transportation options but air travel will likely become what it was in the dawn of aviation, a conveyance of the wealthy. If you have traveled on France’s bullet trains or Italy’s sleek Eurostar streamliners that silently blow past Ferraris on the autostradas, you’ll soon forget the pleasures of removing your shoes under the grim faces of the TSA.
Our community may need fewer hotels and restaurants in the post Peak Oil Era as our population and businesses strive to live within the carrying capacity of this valley. A lot more of us will probably be engaged in farming and ranching and gardening and few of us will have careers in marketing and human resources. Eventually Wyoming may come to resemble what it looked like at the turn of the last century. It seems to me that that would not be such a bad thing.