On construction, cake, and local economic regeneration: why we should start with the materials

By Rob Hopkins, posted May 16, 2012:

almshousesWhat might we learn from the construction, between 1438 and 1448 of the Hospital of St. John in Sherborne (see above) that might shape the way we think about construction in the 21st century? While the bulk of the building was built using local oolitic limestone, it was dressed with Lias stone from Ham Hill, some 12 miles from the building site. However, in those days, without the internal combustion engine, 12 miles was a long way to carry stone (you try it). The meticulous accounts kept of the project at the time show that the cost of transporting the stone by cart cost more than the stone itself. As Alec Clifton-Taylor says in his seminal ‘The Pattern of English Building’, “it was the great difficulty of transporting heavy materials which led all but the most affluent until the end of the eighteenth century to build with the materials that were most readily available near the site, even when not very durable”.

cherry cakeI often use the analogy, in terms of food, of a cake. Until recently, local production provided the cake (the bulk of our needs) and what was imported was the ‘icing’ and cherry on top, nice to have but we didn’t depend on it. What cheap energy and globalisation has created is a situation where now the cake is imported from wherever in the world it can be found cheapest, and local production is just the icing. In the same way that for food we need to urgently reverse this, for many reasons that will be only too familiar to regular readers of this blog, the same can be argued for building materials.

In the case of these alms houses in Sherborne, it literally was the building’s ‘icing’ that caused the difficulties. With about 30% of UK road freight now due to the movement of construction materials, many of which already have a high level of embodied energy, I’d like to argue here that we need to think about construction in the same way we are starting to think about food, specifically in the context of the Atmos Project, a community initiative I am involved in in Totnes.

Historically, as well as being the only option people had, the use of local materials also led to the evolution of vernacular styles of building, so that each region had its own distinct styles of building, rooted in materials, culture and tradition. As John and Jane Penoyre note in ‘Houses in the Landscape’ “in these simple buildings the available materials are the principal dictators of style”. Mark Gorgolewski writes in The Green Building Bible:

“… as materials closer to their natural state will tend to have had less processing, which often means less energy use, less waste and less pollution. Local materials can reduce the need for transport and benefits the local economy and community”.

Christopher Day writes that “local materials minimise transport energy, suit local climate, support local employment and society and reinforce locality identity, anchoring buildings into local culture … so roundwood instead of sawn, adobe or brick instead of concrete”. As well as having far less embodied energy due to requiring so little transportation, they also often have far less embodied energy in their manufacturre, as the graph below showing overall CO2 emissions by weight [kg] released by production of 1 kg of twenty-four common building materials demonstrates (source). Note that those materials on the right hand side actually lock up more carbon than they emit (depending on how far they are transported of course, a strawbale house in the UK built with Turkish bales would clearly not qualify):

embodied energy chart

Then there’s also the aesthetics. The other day I was in Marlborough in Wiltshire, and took a walk around the town. It is easy to be nostalgic about old buildings, and to assume that they are so characterful and attractive simply because they are old. I would argue that the ambience that comes through in some of the photos below has more to do with the materials than with the age of the building.

The combination of brick, timber and cobbles is far more attractive than just one single material.

Clay wall tiles that were fired in kilns with variable temperatures produced tiles of a range of colours, from black to orange, which gives the tiled surface much more richness.

This timber frame house is a beautiful example of how the materials available locally dictated the design of the building and its character.

There has been a resurgence in interest in the use of natural and local building materials in recent years. Cob building, strawbale, lime plasters, roundwood timber, hemp, clay plasters, have all experienced a renewal of energy, but are still almost only ever used in self build projects, and have yet to cross over into mainstream construction. Yet, as Gill Seyfang points out, they are still very much in a niche and what is needed is “scaling up the existing small-scale, one-off housing projects to industrial mass production”. She argues for the natural/local building niche “adapting itself to resemble the regime”. Key to that will be scale.

Of course, running alongside the discussions about materials is the need to create truly low carbon buildings, in their construction, their inhabitation and eventual demolition/recycling. The Larch and Lime houses built recently in Ebbw Vale are passivhauses (Larch House right), that is they are built in such a way as to require no space heating. When I talked to the architect behind them, Justin Bere, he told me that most of the materials were local (stone, slate, locally made Rockwool etc) but hadn’t veered too far into the world of very local and natural materials. Part of the reason for that is that for the kind of accurate modelling needed for passivhaus certification, data for many of these materials doesn’t yet exist. I would argue that this is a pressingly urgent area for new research.

Enter the Atmos Project. For the past couple of months, as well as my Transition Network stuff, I have been working a day a week on the Atmos Totnes campaign. Atmos has been running for the past 5 years, since Dairy Crest closed their 8 acre site next to Totnes station, and since when it has sat and become more and more of an eyesore (you can read the story so far here). The Atmos Project, as it became known, due to it being home to a building built to house Isambard Kingdom Brunel’s experimental ‘atmospheric railway’, has sought to bring the site into community ownership to develop it as a catalyst for new businesses in the town and as a demonstration of Transition in action.

The initiative did a lot of work, raised bits of funding to do design work, business planning and so on, but seemed to be getting nowhere due to the site’s owners’ unwillingness to engage seriously with the community. So a couple of months ago we started a campaign, aimed to bring sufficient pressure to bear on the site’s owners. We gathered voices from around the community, got a lot of media exposure, got people in the town out for a big photo opportunity and for a public meeting, and a couple of weeks ago, had a very positive meeting with Dairy Crest, and all of a sudden the project is moving forward with an energy that is a delight to see.

The tagline for the campaign has been ‘the heart of a new economy’, and it is seen as a development that in all that it does is focused on skills, training, the creation of new businesses and the boosting of the local economy. It is of a scale where it can do some very exciting things in terms of construction. One of the founding ideas is that the place that the development starts its very first question, is what are the local materials that we have to hand? In the same way that I always used to teach on permaculture courses that the question should be “I’m going to cook a meal, what’s in the garden”, rather than “what’s in the fridge?”, that same principle could and should apply to building materials.

So, as the first part of the design process, and as part of what will form a key part of the brief for whoever ends up being the project’s architect, will be a list of the local materials available to such a project in Totnes. We have commissioned a specialist in this to draw this up, including the places locally where they would be sourced. My initial list off the top of my head is:

Timber: for construction grade timber, internal studwork, window and door frames, roofing shingles, laths, panelling, flooring, wattles, wood fibre insulation.

Clay: for rammed earth construction, cob walling, daubs, clay plasters, cob bricks, clay paints

Hemp: for use in hemp/lime construction, to make insulation, for hemp/lime or hemp/clay plasters and bricks

Slate: for roofing

Stone: for foundations, walls,

Reed: for thatching roofs, and also to make ‘reedboards’, an alternative to plasterboard

Lime: for plasters, mortars, renders, as well as in construction systems such as hemp/lime

Straw: baled, and used in ‘straw bale building’, chopped as an ingredient in plasters

Sheepswool: insulation

Horse hair/other fibres: used to strengthen plasters

Recycled Materials: newspaper processed as an insulation product, car tyres, recycled bricks

It used to be that when a cathedral was built, a temporary village was built around it, with a stone masons’ quarter, a timber framers’ quarter and so on. On the scale of something like the Atmos project, it may well be possible to do something very similar, processing the timber needed on site, making cob blocks, even hand-making tiles for external cladding. If done skilfully enough, integrating training and apprenticeships, it could be a vitally needed new approach to development, especially when combined with the potential for the community to invest into the development.

Panels at Charing Cross tube station in London showing the various trades associated with the construction of Charing Cross in the late 1200s.

A development that from the outset seeks to source it’s metaphorical cake locally. As the Euro crisis continues to unravel at a pace, as the academics are telling us that the only thing that will halt climate change is a massive economic downturn, or at least a huge rethink about how we make economic activity happen, we need a new approach to development.

Work in progress: Cob walls, hemp plaster on the walls, clay plaster onto lath on the ceiling, local timber window frames…

Could it be that we could create new housing, and new work spaces in such a way that each new development produces houses that lock up a lot of carbon in terms of their materials, generate very little carbon during their inhabitation, which create a diversity of new enterprises and livelihoods, show what deep public consultation in relation to development really looks like, all kinds of trainings, opportunities for people to invest in and benefit from the development, which create a huge sense of excitement and anticipation, invites the local community to get involved at regular stages and which create buildings and developments that feel timeless, rather than bound to a particular short-lived era of architectural fashion? I think so. I think the time is right for that, and that’s what we want to do with Atmos. Watch this space.

Originally published at Transition Culture

Visualize Gasoline

By Richard Heinberg, posted May 10, 2012:

Freeway trafficNext time you find yourself in traffic, try this nifty thought exercise. Ignore the cars within your field of vision and imagine instead the contents of their fuel tanks. Visualize gasoline flowing up and down the highway.
 
Let’s assume the typical American car carries seven gallons of refined petroleum product in its tank at any given moment (a 15-gallon tank half-full). That’s a lot of liquid to be carting around. In fact, gasoline is the second-most-consumed fluid in the US after water. Each American household consumes an average of 350 gallons of water per day and 2.5 gallons of gasoline; milk, coffee, and beer clock in at .15 gallons, .12 gallons, and .1 gallons respectively.
 
If you do this visualization exercise, you might find yourself seeing rivulets, streams, and—in the case of big freeways—rivers of gasoline coursing across the land. For the US as a whole, 400 million gallons of gasoline enter the flow every day. But, since we routinely carry more gasoline with us than we intend to use immediately, the total amount in car gas tanks at any given moment is roughly seven times larger, so that America’s gasoline rivers slosh with 2.8 billion gallons on any given day.
 
A real river or stream is the spine of a watershed and the heart of a riparian ecosystem. Trees, shrubs, insects and their larvae, fish, birds, amphibians, and mammals all derive their livelihoods from flowing water.
 
A river of gasoline is sterile by comparison, even though petroleum itself is composed of some of the same main elements as living things—carbon and hydrogen. Oil is a fossil fuel, after all, made of heaps and heaps of dead algae compressed and heated over millions of years so that carbohydrates became hydrocarbons. Gasoline rivers are no place for non-human life forms: only the most daring of weeds and foolhardy of animals venture there, with the latter often ending up as road kill. Indeed, highways could be thought of as rivers of death.
 
Water makes itself seen and felt as it falls from the sky and collects in puddles, ponds, lakes, and oceans. The tiny fraction of Earth’s water that enters municipal delivery systems temporarily disappears into a maze of pipes but soon re-emerges at the ends of faucets and showerheads.
 
Gasoline is covert and furtive by comparison. Oil emerges from wells and, via pipelines, enters refineries; from these, gasoline gushes through more pipes that carry it to regional distribution centers, whence it is delivered by tanker truck to filling stations. We travel to those stations to dispense gas by hose into the tanks of our cars; from those tanks it is delivered to its final moment of combustion within the engine. At no point along its path is oil or gasoline customarily exposed to public view.
 
What we see instead, for the most part, is the automobile—a painstakingly crafted exoskeleton that carries gasoline and humans from place to place—and a landscape substantially altered to suit automobiles. We obsess over our cars: they are our symbols of freedom and status. We judge them by the elegance of their design, their top speed, and their acceleration. We revere their brand names—Mercedes, Ferrari, Jaguar, Bentley, Cadillac, Lexus. We take for granted the gasoline that makes them go, until a gauge or warning light on the dashboard forces us to pull over and buy more. Yet without gas there would be no point to the automobile; even the brawniest Porsche could do no more than ornament a driveway.
 
We complain about the price of gasoline, yet at four dollars per gallon it is cheaper than coffee, beer, or milk—cheaper even than most bottled water.
 
Unlike those other liquids, gasoline is explosive. It literally gives us a bang—and a fairly big bang, at that. Visualize slowly pushing your car miles at a time, your leg and arm muscles straining to move a ton or two of metal, and you may gain some appreciation for how much power is being released by each drop of the gasoline that speeds our cars down the road with virtually no effort required on our part.
 
Visualize gasoline-powered civilization arising as if by some maniacally accelerated evolutionary process. It all began so recently, in the mid-nineteenth century, and spread across the globe in mere decades. Automobiles mutated and competed for dominance on vast networks of roads built to accommodate them. Shopping malls and parking garages sprang up to attract and hold them. And powering it all was an ever-widening but mostly invisible river of gasoline—the poisonous blood of 700 million dinosaur-like machines that now dot landscapes around the world.
 
Visualize gasoline’s combustion by-products spewing out of millions of tailpipes and into the air breathed by children. As we pump oil out of the ground we transfer ancient carbon from the Earth’s crust into the atmosphere at a rate of 5.2 metric tons per car per year. A car that gets 25 miles per gallon of gasoline spews 47 gallons of CO2 per mile (at standard temperature and pressure). Like gasoline, carbon dioxide is invisible most of the time; you have to use your powers of visualization to see the thickening blanket of CO2 that traps more and more of Earth’s heat.
 
Visualize ancient subterranean oil reservoirs rapidly depleting, with half of Earth’s entire inheritance of conventional crude converted to CO2 and water during the lifetime of an average baby boomer (1950-2025). Already, nations are straining to adjust to declining oil abundance, searching for alternatives, and fighting over what’s left. No, we’re not running out of oil. We’ve only begun tapping tar sands, tight oil, and polar oil. But what’s left, though impressive in quantity, will be expensive, risky, and slow to extract.
 
Visualize a time, years or decades from now, when machines designed to burn gasoline sit idle, rusting, and abandoned. No, we won’t quickly and easily switch to electric cars. In order for that to happen, the economy would have to keep growing, so that more and more people could afford to buy new (and more expensive) automobiles. A more likely scenario: as fuel gets increasingly expensive the economy will falter, rendering the transition to electric cars too little, too late.
 
Visualize life without gasoline. You might as well start doing so now, at least in imagination; soon enough, this will no longer be an exercise. Already prices are high and volatile. Next we’ll see international conflicts that shut down big portions of the global oil trade for weeks or months at a time. Strategic reserves will be tapped. The government will commandeer supplies for the military and police. One way or another, you’ll be using much less gasoline than you do today. How will your food be grown and transported? How will you get around? Will your job still exist? How will your community function?
 
Visualizing gasoline won’t make more of it magically appear. But understanding the extent of our dependence on it helps us address our vulnerability to the inevitable process of depletion. Imagining a world without gasoline could be a useful first step in preparing for a future that’s coming at us whether we’re ready or not.

Image: Freeway traffic via shutterstock

The Peak Oil Crisis: Perspective

By Tom Whipple, posted May 9, 2012:

3D street artWhile waiting to see how the Iranian nuclear confrontation and the various Eurozone crises sort themselves out, there is time to step back and look at the interaction of the major forces that will shape our future. While the problems of oil depletion are already upon us, shrinking resources are only a part of global dynamics currently.

There are at least six major forces moving civilization in the world today: 1) population growth: 2) economic growth; 3) political stability; 4) technological innovation; and more recently 5) resource depletion and 6.) climate change. There are, of course, other less obvious change-producing forces at work in the world – theology, geology, and culture to name a few–but these six look like a good place to start thinking about the interaction of change. Our six forces are intertwined so that significant movement in one will eventually result in feedbacks affecting some or all of the others.
 
In the last 200 years a combination of better health technology and services, more productive agriculture, and improved transportation has allowed the world population to grow seven-fold. Although in some areas societal and even political measures are keeping population growth in check, as a whole the world’s population is on course to increase markedly before the century is out. In a finite world this has, and will continue to have, serious implications for our other major engines of change. First is simply the need to grow and distribute food for the 78 million people that we are adding to our population each year. If one includes clothing, shelter, education, medical care, and a better-than-subsistence life style for the new arrivals, you can see that that the global economy needs to do some growing or at least rearrange the way resources are distributed.
 
This steadily growing population will add to resource depletion – fossil fuels, vegetation, and minerals — for at a minimum all those additional people must eat and drink. If they are going to eat warm food or stay warm in the colder climates, they are likely to be adding to the atmosphere’s growing concentration of greenhouse gases and the pace of global warming. The search for a better life is already resulting in mass migrations from poorer to richer regions which in turn is already contributing to political volatility.
 
Then we have the rapid economic growth of the last 250 years based on the exploitation of numerous technological discoveries coupled with the fossil fuels that supplied the excess energy for the increasingly complex societies and interdependent societies that most of us live in today. Today anything less than steady economic growth creates political problems – sometimes serious ones, for most peoples now look to their government to create the environment that will provide jobs and an adequate standard of living for all. Anything less eventually feeds back into social discontent – ranging from election upsets to bloody revolts as we have seen recently across the Middle East.
 
Although technological improvements have been changing civilization for untold millennia – stone tools, fire, wheels, gun powder, etc. – it is only in the last 250 years that science and technology came into its own allowing for rapid changes that we like to think of as "progress." This, of course led to population growth, more economic activity, and increasing complex political organization. In turn, this led to rapid depletion of the resources – fossil fuels, water, agricultural land, minerals, etc. – that are now on the verge of becoming a limiting factor for further economic growth. We are now coming to the realization that without increasing supplies of energy, and other raw materials, more economic growth will be impossible, which in turn will feed back into more political instability, more migration, and if we can’t get the food supply right, a decline in global population.
 
Another important corollary to economic growth has been the over-loading of the earth’s atmosphere with the combustion products of fossil fuels used for energy. It now seems that the global climate is becoming unstable at a rapid pace. Here the feedback is likely to come in the form of lower agricultural production as a combination of droughts, high temperatures, and floods take a higher-than-normal toll on crops and livestock.
 
This will eventually result in increased hunger, malnutrition and higher death rates. Somewhere along the line the effects of climate change may become so bad that a consensus will develop that the burning of fossil fuels must be sharply curtailed or the economic costs of rising temperatures become too much to bear or as some believe do us all in.
 
Interspersed with all the causes and effects that are driving our earth is the question of timing. While climate change may eventually be far more serious than any economic downturn or political discontent, it seems to move so slowly that so some believe we will be over the tipping point of no return before serious change is wrought by political agreement. The same seems to be true of resource depletion. In short we seem to be caught between the "could be extremely important" (climate change) and the obviously urgent (jobs).
 
Is there a way out of all this, or are we doomed to an unknown period of troubles of unforeseeable duration, with falling standards of living and interminable social upheavals? For now, much of the world seems fixated with using various financial tools – taxes, interest rates, money supplies – as solutions to perceived problems without much appreciation that energy supplies simply are becoming too expensive to use in the accustomed manner or that the atmosphere is becoming so unstable that our global food supply is endangered.
 
There are of course solutions. We know how to cut populations humanely and drastically, through limiting births, but this would require a far greater global social cohesiveness that we have presently. There may be something in the next few decades of technological developments – cheap, clean energy or even mining asteroids. For now there seems to be so little understanding of where we are likely to go that we can only wait for things to get worse.
 
Originally published May 8, 2012 at Falls Church News-Press
 

 

Too Hot Not to Notice?

By Bill McKibben, posted May 3, 2012:

Climate activists after tornadoThe Williams River was so languid and lovely last Saturday morning that it was almost impossible to imagine the violence with which it must have been running on August 28, 2011. And yet the evidence was all around: sand piled high on its banks, trees still scattered as if by a giant’s fist, and most obvious of all, a utilitarian temporary bridge where for 140 years a graceful covered bridge had spanned the water.

The YouTube video of that bridge crashing into the raging river was Vermont’s iconic image from its worst disaster in memory, the record flooding that followed Hurricane Irene’s rampage through the state in August 2011.  It claimed dozens of lives, as it cut more than a billion-dollar swath of destruction across the eastern United States.
 
I watched it on TV in Washington just after emerging from jail, having been arrested at the White House during mass protests of the Keystone XL pipeline.  Since Vermont’s my home, it took the theoretical — the ever more turbulent, erratic, and dangerous weather that the tar sands pipeline from Canada would help ensure — and made it all too concrete. It shook me bad.
 
And I’m not the only one.
 
New data released last month by researchers at Yale and George Mason universities show that a lot of Americans are growing far more concerned about climate change, precisely because they’re drawing the links between freaky weather, a climate kicked off-kilter by a fossil-fuel guzzling civilization, and their own lives. After a year with a record number of multi-billion dollar weather disasters, seven in ten Americans now believe that “global warming is affecting the weather.” No less striking, 35% of the respondents reported that extreme weather had affected them personally in 2011.  As Yale’s Anthony Laiserowitz told theNew York Times, “People are starting to connect the dots.”
 
Which is what we must do. As long as this remains one abstract problem in the long list of problems, we’ll never get to it.  There will always be something going on each day that’s more important, including, if you’re facing flood or drought, the immediate danger.
 
But in reality, climate change is actually the biggest thing that’s going on every single day.  If we could only see that pattern we’d have a fighting chance. It’s like one of those trompe l’oeil puzzles where you can only catch sight of the real picture by holding it a certain way. So this weekend we’ll be doing our best to hold our planet a certain way so that the most essential pattern is evident. At 350.org, we’re organizing a global day of action that’s all about dot-connecting; in fact, you can follow the action at climatedots.org.
 
The day will begin in the Marshall Islands of the far Pacific, where the sun first rises on our planet, and where locals will hold a daybreak underwater demonstration on their coral reef already threatened by rising seas. They’ll hold, in essence, a giant dot — and so will our friends in Bujumbura, Burundi, where March flooding destroyed 500 homes. In Dakar, Senegal, they’ll mark the tidal margins of recent storm surges.  In Adelaide, Australia, activists will host a “dry creek regatta” to highlight the spreading drought down under.
 
Pakistani farmers — some of the millions driven from their homes by unprecedented flooding over the last two years — will mark the day on the banks of the Indus; in Ayuthaya, Thailand, Buddhist monks will protest next to a temple destroyed by December’s epic deluges that also left the capital, Bangkok, awash.
 
Activists in Ulanbataar will focus on the ongoing effects of drought in Mongolia.  In Daegu, South Korea, students will gather with bags of rice and umbrellas to connect the dots between climate change, heavy rains, and the damage caused to South Korea’s rice crop in recent years. In Amman, Jordan, Friends of the Earth Middle East will be forming a climate dot on the shores of the Dead Sea to draw attention to how climate-change-induced drought has been shrinking that sea.
 
In Herzliya, Israel, people will form a dot on the beach to stand in solidarity with island nations and coastal communities around the world that are feeling the impact of climate change. In newly freed Libya, students will hold a teach-in.  In Oman, elders will explain how the weather along the Persian Gulf has shifted in their lifetimes. There will be actions in the cloud forests of Costa Rica, and in the highlands of Peru where drought has wrecked the lives of local farmers.  In Monterrey, Mexico, they’ll recall last year’s floods that did nearly $2 billion in damage. In Chamonix, France, climbers will put a giant red dot on the melting glaciers of the Alps.
 
And across North America, as the sun moves westward, activists in Halifax, Canada, will “swim for survival” across its bay to highlight rising sea levels, while high-school students in Nashville, Tennessee, will gather on a football field inundated by 2011’s historic killer floods. 
 
In Portland, Oregon, city dwellers will hold an umbrella-decorating party to commemorate March’s record rains. In Bandelier, New Mexico, firefighters in full uniform will remember last year’s record forest fires and unveil the new solar panels on their fire station.  In Miami, Manhattan, and Maui, citizens will line streets that scientists say will eventually be underwater. In the high Sierra, on one of the glaciers steadily melting away, protesters will unveil a giant banner with just two words, a quote from that classic of western children’s literature, The Wizard of Oz. “I’m Melting” it will say, in letters three-stories high.
 
This is a full-on fight between information and disinformation, between the urge to witness and the urge to cover-up. The fossil-fuel industry has funded endless efforts to confuse people, to leave an impression that nothing much is going on.  But — as with the tobacco industry before them — the evidence has simply gotten too strong. 
 
Once you saw enough people die of lung cancer, you made the connection. The situation is the same today.  Now, it’s not just the scientists and the insurance industry; it’s your neighbors. Even pleasant weather starts to seem weird.  Fifteen thousand U.S. temperature records were broken, mainly in the East and Midwest,in the month of March alone, as a completely unprecedented heat wave moved across the continent.  Most people I met enjoyed the rare experience of wearing shorts in winter, but they were still shaking their heads. Something was clearly wrong and they knew it.
 
The one institution in our society that isn’t likely to be much help in spreading the news is… the news. Studies show our papers and TV channels paying ever less attention to our shifting climate.  In fact, in 2011 ABC, CBS, NBC, and Fox spent twice as much time discussing Donald Trump as global warming. Don’t expect representatives from Saturday’s Connect the Dots day to show up on Sunday’s talk shows.  Over the last three years, those inside-the-Beltway extravaganzas have devoted 98 minutes total to the planet’s biggest challenge. Last year, in fact, all the Sunday talk shows spent exactly nine minutes of Sunday talking time on climate change — and here’s a shock: all of it was given over to Republican politicians in the great denial sweepstakes.
 
So here’s a prediction: next Sunday, no matter how big and beautiful the demonstrations may be that we’re mounting across the world, “Face the Nation” and “Meet the Press” won’t be connecting the dots. They’ll be gassing along about Newt Gingrich’s retirement from the presidential race or Mitt Romney’s coming nomination, and many of the commercials will come from oil companies lying about their environmental efforts. If we’re going to tell this story — and it’s the most important story of our time — we’re going to have to tell it ourselves. 
 

Originally published at Tom Dispatch

The Peak Oil Crisis: Implications

By Tom Whipple, posted May 3, 2012:

Huffaker gliderLast week we talked about the possibility that researchers have found a second and potentially useful and inexpensive way of converting hydrogen into helium accompanied by a release of significant quantities of energy. 

Many, of course, believe such a discovery is too good to be true, for it implies that in the long run the world might be able to abandon other more expensive ways to obtain energy including oil, coal, and natural gas. Moreover, the new "green energy" renewable technologies – solar, wind, waves, tides, and biofuels – might no longer be competitive because the fuel for the hydrogen reaction would be only water. This of course sounds impossible, until one remembers that during the last 150 years electricity, internal combustion, airplanes, nuclear fission and DNA have all emerged from scientific discoveries. In this light, a more subtle way to coax hydrogen atoms to fuse into helium does not seem completely impossible.
 
Suspending our disbelief for a moment, let’s assume that in the not too distant future it becomes obvious that it is indeed possible to make heat by subjecting hydrogen imbedded in a metal to the proper conditions. The devices claimed to be under development appear to be rather simple and inexpensive to fabricate by today’s standards, are fueled by water, and produce only heat and helium – no toxic emissions, CO2 releases, or radioactive wastes.
 
Some on hearing of this possible new technology correctly point out that the path from the lab bench to widespread adoption usually takes decades, citing automobiles and air travel as examples. This of course is the key issue should this technology prove to be useful.
 
Current trends suggest we may not have decades to reverse what happens by over-reliance on fossil fuels. Liquid fuel prices are on course to reach unaffordable levels with the next 5 to 10 years or so and just what the accumulation of CO2 in our atmosphere is doing to us appears more serious with each passing year.
As of now these heat-producing reactions are, at best, only approaching the Wright brothers’ stage of development. Although some developers are claiming that a simple heat-producing device will be ready for sale within the next few years, even this advance is a long way from being a panacea for our soon-to-be-dwindling supplies of transportation fuels or our ability to produce electricity without driving the world over the tipping point.
 
An important question is how soon devices will emerge that will produce high temperature steam (400-500oC) capable of running power plant turbines – reliably. Whenever such a device becomes viable, it seems likely to be quickly adopted by the world’s utilities for current indications are that the power might be produced for a fraction of current costs and without the hassle caused by efforts to limit emissions and dispose of radioactive wastes. Such a technology also seems useful for inexpensively desalinizing water in very large quantities.
 
After stationary boilers, another early use could easily be for large ships and perhaps even locomotives. Bunker fuel for ships is already coming into short supply so that the prospects for converting ships’ boilers to another source of energy seem good. People are already talking about steam engines for railroads again and I presume a steam-electric hybrid is always a possibility. Powering smaller forms of transportation such as cars and aircraft seems a long ways off. NASA, however, seems to be working on a device to provide the electricity for space craft that have been powered by radioactive decay of plutonium or strontium.
 
Given a sufficient source of cheap energy, buildings could easily become disconnected from networks producing their own heat, cooling, electric power, and even processing their own water supply and wastes. Japanese scientists are reported to be interested in nuclear transmutation of elements as a way of disposing of radioactive wastes. If transmutation should ever be mastered, there are undreamed of possibilities.
 
Getting back to reality, all we really know for now is that a number of groups around the world are, and have been for some time, reporting anomalous heat emanating from hydrogen loaded into certain metals and then heated or subjected to electro-magnetic pulses. The number, geographic breadth of these experiments, and the experience and academic stature of the researchers reporting these results make it unlikely that these results are part of a gigantic hoax or flawed temperature readings as many skeptics claim.
 
We also know that during the last year five or six groups have said they have commercially viable heat producing devices under development. Although there have been a limited number of demonstrations of these devices to outside scientists and the press, nobody as yet has released one of these devices to careful outside scrutiny by independent laboratories that has been made public. None of these groups seems to have any financial difficulties nor are any asking for the public to send them money. Some of these developments seem to be supported by NASA or possibly the U.S. Defense Department although this has not been formally announced.
 
For now there is little to be done but wait for developments. Announcements are promised shortly, but such announcements have slipped in the past. We could be close to another game-changing technology such as electricity; it could stay in the labs for an indefinite period; or the technology could melt away and never be heard of again.
 
Originally published May 2, 2012 at Falls Church News-Press

Top 11 FAQs

By Richard Heinberg, posted May 2, 2012:

Oil journey video slideI’ve been giving lectures on Peak Oil for over a decade now, and always look forward to the question period after the main show. It’s an opportunity to interact with the audience, and to see where my presentation may need tweaking or where my thinking may be shallow or incorrect.

Now Post Carbon Institute is offering a tool to help others who wish to give presentations about our global sustainability crisis—a beautiful PowerPoint called “YOU ARE HERE: The Oil Journey,” featuring a script and images that are geared to general audience with little prior understanding of the issue. Presenters of “YOU ARE HERE” are likely to be bombarded a lot of the same questions I’ve heard over the years, so I thought it might be helpful if I compiled some of those.
 
Here are the top 11, along with brief sample replies and some resources for further reading.
 
Want to get involved and become one of the YOU ARE HERE: The Oil Journey presenters? Sign up for one of our May web based trainings. Contact us via media@postcarbon.org.
 
 
1. But what about natural gas? I’ve heard we had a 100 year supply. Can’t we use natural gas in place of oil? Won’t natural gas be a good “bridge fuel” to get us to a green, growing energy economy?
 
A: Actually, US proven reserves of natural gas amount to only about 12 years’ worth of supply. More gas resources will no doubt be discovered, thus adding to those reserves, but most of the new sources will be in “tight” shale deposits, where production costs and depletion rates are high. Currently there is a shale gas supply glut due to very high rates of drilling a few years ago, when natural gas prices were several times their current level. But now that gas is so cheap, the producers that specialize in shale “fracking” are actually losing money; therefore they’re cutting back on drilling. In a year or two we will see declining production and higher prices. Bottom line: while it’s true that new technology has increased natural gas supplies over the short term, the long-term outlook is more complicated. Natural gas is a depleting fossil fuel, and technology cannot change that fundamental fact. Natural gas will not substitute in any meaningful way for increasingly expensive oil, because very few vehicles currently are able to use natural gas and it will take decades to change that situation—and gas supplies won’t be sufficient even if we could retrofit existing vehicles fast enough. Moreover, the climate impact of producing and burning gas from shale deposits is no better than that of mining and burning coal—so the environmental argument for using more natural gas doesn’t hold up to scrutiny.
 
 
2. I’ve read about the extraordinary potential for “tight oil”—petroleum trapped in low-porosity rocks like shale, that’s produced by hydrofracturing and horizontal drilling. Apparently so much of this is coming from North Dakota now that it’s causing total US oil production to increase. Some people are even saying that America could be oil independent within a few years.
 
A: Yes, tight oil production in North Dakota is booming—but why? Geologists have known about the Bakken oil deposits for a long time, and have had the technology to get the oil out of the ground. But costs of extraction were too high to justify drilling. Now that rates of global crude oil production are stagnant, oil prices are very high—and that makes production of marginal sources like tight oil economically viable. And that in turn means continued production from these sources depends upon continued high oil prices: if the price level falls, production will slow. Several analysts have described recent claims for reserves and potential production rates from tight oil plays as overoptimistic. A realistic forecast shows US crude oil production continuing to increase for the next decade (as a result of additional tight oil and deepwater production), but then resuming its decline. In this most-likely-case scenario, US crude oil production in 2020 will not come close to matching the peak it achieved in 1970. Unless Americans reduce their oil consumption significantly, the nation will still be hooked on imports.
 
Further reading: Jonathan Callahan, “The Bakken: A Modern-Day Gold Rush”; Gail Tverberg, “Is Shale Oil the Answer to Peak Oil?
 
3. What about coal? I heard we have a 250-year supply. Won’t coal keep our economy growing, even if the environmental consequences are awful?
 
A: Several recent studies (including ones by the USGS) have concluded that coal supplies for the US and the world as a whole have been exaggerated. Enormous amounts of coal exist, but the great majority of it is unlikely ever to be mined because of its depth, the insufficient thickness of seams, and the quality of the resource. As with other fossil fuels, we have already picked the low-hanging fruit. Two recent studies conclude that global coal output could peak within the next decade or so. Meanwhile, as China’s consumption grows (that country now uses 4 billion tons per year, fully half the world’s production), coal prices are set to increase substantially even in countries that are self-sufficient in supply, like the US.
 
Further reading: Richard Heinberg, Blackout: Coal, Climate and the Last Energy Crisis, Introduction and Chapter 8; Heinberg and Fridley, “The End of Cheap Coal,” Nature, Vol. 468, November 18, 2010
 
4. Then what about nuclear? Couldn’t modular/thorium/breeder reactors power the world for centuries?
 
A: Too expensive and too risky. A detailed report in a recent issue of The Economist magazine—not known for an anti-nuclear stance—called nuclear power “the dream that failed,” and concluded that its role in the foreseeable world energy picture will never be more than marginal. The ongoing nuclear catastrophe in Japan has led that country to abandon nuclear power, and Germany is following suit. Even though China appears to be doubling down on its nuclear bets, from a global perspective the industry is essentially moribund.
 
Further reading: The Economist, Special Report, “Nuclear Energy: The Dream that Failed,” March 10-16, 2012; Tom Murphy, “Nuclear Options,”
 
5. Isn’t the real problem human population? What’s a truly sustainable human population? Won’t there be a huge die-off?
 
A: Yes, population is a vitally important issue. Population growth exacerbates every problem facing us. As the global economy stagnates or contracts, declines in per-capita output can be reduced by policies to rein in population growth. Moreover, a good argument can be made that family planning investments will benefit the poorest nations first and foremost, since large, poor families tend to spend all their income on food and shelter, leaving no surplus for education or the formation of a small business. But while good population policy is desperately needed, it is no cure-all: changing demographic trends is a slow process, and many of the challenges facing us will converge over the course of the next couple of decades—far too quickly to be adequately addressed by reducing birth rates. So we need to think systemically to address a range of economic and ecological issues simultaneously while doing our best to support seven billion humans and counting.
 
Further reading: Bill Ryerson, “Population: the Multiplier of Everything Else,” in Heinberg and Lerch (eds.), The Post Carbon Reader.
 
6. When I think about all of these challenges, I just get overwhelmed. Where do we go for hope?
 
A: First, address your mental state. If you’re emotionally overwhelmed by information about climate change and resource depletion, you may need to ration your news intake so as to increase your effectiveness at helping tackle these enormous global problems. Spending hours a day in front of a computer screen feeds depression. Take time off, go outdoors, do some gardening, and interact with other people face-to-face. You will probably find inspiration in community resilience-building projects, where you can see and touch the results of your and your friends’ efforts. Cultivate a creative hobby and spend time in nature. Your efforts to save the world will be far more effective if other people perceive your mental and emotional state as being grounded and balanced. That doesn’t mean you should deny and suppress the pain and fear that any healthy human inevitably feels when contemplating the fix we’re in. Allow yourself to feel those emotions (otherwise you’ll be detached and inauthentic at best, unhinged at worst), but don’t wallow.
 
Further reading: Kathy McMahon, “The Survival Mindset”; Rebecca Solnit, Hope in the Dark: Untold Histories, Wild Possibilities
 
7. I’ve been thinking this way for years. The problem is all those people who don’t “get it.” How do we convince them?
 
A: I wish I had a sure-fire answer to that one. Sometimes simple persistence pays off. If people have dug themselves into a certain worldview, it may take time for them to change their views. It’s important for you to have the facts at your command, but it’s just as important to create “frames,” as George Lakoff calls them—stories that make sense of the data. Often simple metaphors, such as “low-hanging fruit,” help people grasp the essential character of situations that might otherwise require lengthy explanation. It’s also important to tailor the message to the audience: if you understand where other people are coming from, it’s much easier to connect with them. Unfortunately, there are many people who are completely invested in maintaining a cornucopian view of the world, and there may be no way of reaching those people. Don’t waste your time on them; focus your attention on people who can be educated.
 
Further reading: George Lakoff, Don’t Think of an Elephant!; Andrée Zaleska, “How to Talk to Your Friends about Climate Change,” ; Kurt Cobb, “Peak Oil and Four Principles of PR”; “Peak Oil and Mass Communication”  
 
8. Isn’t the real problem one of distribution? If wealthy Americans didn’t consume so much, there’d be enough for everyone. Similarly, if the “one percent” weren’t siphoning all the world’s wealth, we’d all be doing fine. Shouldn’t we just be fighting for fairness?
 
A: As long as our economy is set up in such a way that it requires continued growth in order to function, then even if we distribute wealth fairly we will hit resource limits and fail. That’s not to say that equity is unimportant. As the national and global economy inevitably shift from growth to contraction, more equitable distribution will be necessary if we are to maintain social stability. If distribution of wealth becomes even more inequitable (and that’s the current trend), people will rightly conclude that the system is unfair and not worth saving. They will rebel, and governments will crack down brutally to maintain the status quo. The result will be a chaotic, violent collapse of the entire system. It doesn’t have to end this way. If wealth is more evenly distributed as a result of reform, and if everyone is encouraged to understand the challenge facing us, then people can be persuaded to make shared sacrifices in order to build an economy that fits within Earth’s limits.
 
Further reading: Richard Wilkinson and Kate Pickett, The Spirit Level: Why Equality Is Better for Everyone; Cecile Andrews, “Everyone Is a Victim of Inequality,” 
 
9. Aren’t the oil and car companies sitting on patents for free energy devices or carburetors that get 100 mpg? Can’t we solve our energy problems just by defeating these evil corporations?
 
A: I’ve heard stories about suppressed energy technologies, but have been unable to verify them. Typically the stories entail oil or car companies buying up patents and hiding them, but every patent ever issued in the US is freely searchable, so it should be easy enough to find these “suppressed” inventions. On the other hand, many machines that have been patented don’t actually work, and that’s why they haven’t been commercialized. Now, it’s true that the automobile industry actively discouraged the development of new safety features, including seat belts, and also lobbied Congress for decades to delay energy-efficiency regulations. Moreover, the oil companies have spent enormous sums in efforts to distort and mute both the scientific research and the public discussion regarding climate change. Such corporate abuses must be brought to an end, and I support activist efforts to do that. However, even if they succeed, that won’t solve the basic problem: we’ve become addicted to energy sources that are unsustainable, and there are no “silver bullet” alternatives that will enable us to maintain economic growth such as we’ve seen over the past century.
 
Further reading: Rob Hopkins, “Film Review: Why ‘Thrive’ is Best Avoided
 
10. The problems seem so huge, the solutions so small. How can little efforts like Transition Towns hope to deal with war, resource depletion, and climate change, if national governments can’t?
 
A: There are two answers to that question. First: We have to do what we can. Yes, fundamental national and international reforms are needed to deal with global problems like climate change and resource depletion, and activist efforts to address those issues are needed now more than ever. But we are seeing a general deterioration in the ability of our national political system to respond both to converging global problems and to the public’s concerns. Reforming our own national government is a big, multi-decade job, if it’s even possible to accomplish. Our economic and environmental problems will not remain on hold while we put the country’s political system in order, so we have to accomplish what we can where we have more leverage—at the local level. Second: There are good reasons for working at locally anyway, regardless of difficulties in achieving national and international reforms. Localization is inevitable as transport fuels become more scarce and expensive. If we don’t increase local self-sufficiency proactively, the reversal of globalization will result in the collapse of essential support systems—so building local food systems should be our first priority. Also, local organizing creates the necessary basis for political, social, and economic change at higher levels.
 
Further reading: Megan Quinn Bachmann, “From Globalization to Re-Localization,”
 
11. Innovation has solved problems and opened opportunities for us in the past. Why would you think that innovation can’t solve all our problems now? Don’t we just need to put more money into research?
 
A: Innovation will be essential to our adaptation to our new economic reality. Some new technologies (such as renewable energy and ways to use energy and resources more efficiently) will need to expand significantly. But every technology has its costs. Economies cannot grow forever, even if they are based on renewable energy. We must adjust to the fact that our own civilization has reached limits with regard to population, water, soil, raw materials, and energy. In the end, our adaptation will require as much social innovation as technological change, as we learn to live with less, and to live more equitably.
 
 
 
Want to get involved and become one of the YOU ARE HERE: The Oil Journey presenters? Sign up for one of our May web based trainings. Contact us via media@postcarbon.org.

FAQ board image via shutterstock

Local Dollars, Local Sense: The Hidden Power of Cooperatives

By Simone, posted Apr 27, 2012:

Local Dollars, Local Sense coverA group of scholars at the University of Wisconsin recently counted nearly 30,000 cooperatives in the United States operating at 73,000 locations. The vast majority are consumer cooperatives, with 343 million memberships (many people belong to multiple co-ops, hence the number of memberships exceeds the U.S. population). Another 7 million memberships can be found in producer and purchasing cooperatives. Credit unions, which are essentially banking cooperatives, have 92 million members. Electrical utility co-ops reach 42 million Americans. Agricultural cooperatives have three million members.

The cooperative sector owns $3 trillion in assets, generates half a trillion dollars a year in revenue, and pays 856,000 people $25 billion in annual wages. Their multiplier impact on the economy supports more than two million jobs nationally. In Minnesota, which is not only the Land of 10,000 Lakes but also the state with 1,000 co-ops, another survey of just a third of them found they were contributing seventy-nine thousand jobs in the state and more than $600 million in state and local tax revenues.
 
Cooperatives can now be found in business services, child care, hardware, telecommunications, and insurance. In 2009, as Congress was debating whether to include a “public option” in health-care reform legislation, a compromise was seriously considered that would have prioritized the creation of state-based health-care cooperatives—underscoring the increasing importance and bipartisan appeal of these models. More recently Congress has been considering transforming the two home-mortgage giants, Fannie Mae and Freddie Mac, into a nationwide securitization cooperative owned by member banks and credit unions.
 
An underappreciated characteristic of co-ops is that nearly all of them fit our definition of locally owned—that is, probably 99.9 percent are connected to a particular place and owned by geographically proximate members. Even large co-ops that sprawl across the country have many of the characteristics of local businesses. National producers co-ops, like Land O’Lakes and Organic Valley, represent small farmers around the country who are eager to sell, process, and distribute their products regionally. Adam Schwartz, vice president for public affairs and member services for the National Cooperative Business Association (NCBA), says, “No matter how large a cooperative is, because it is owned by the individual farmers or individual consumers or small businesses, I feel very comfortable making a case that co-ops in any form support local business.”
 
David Thompson, a cooperative innovator based in Northern California, contends that cooperatives are critically important builders of community economies. “I’ve often thought about how my local Davis Food Co-op employs about 160 people. At the co-op they have their own accounting, marketing, membership, and personnel department, all of the management is local, buyers are local, the monthly newsletter is printed locally, we advertise in the local paper (Trader Joe’s doesn’t), the books are done by a regional accounting firm, the lawyers are a regional firm. The two Safeways in town each employ about fifty workers, have no buyers on the spot, the administration, advertising and accounting are all done from Oakland, and all of its money at the end of the day is funneled off to Oakland, where the administrative expenses occur. There’s another side of it, too, which is that cooperatives will never move to another town, state, or country because it’s cheaper. Their owners wouldn’t allow it.”
 
The structure of co-ops can vary widely. Most are built around consumers. But some are structured around purchasing and producer members (themselves typically local businesses), some around workers, and some around combinations of all these categories. What they have in common is adherence to principles enunciated in England in 1844 by the Rochdale Equitable Pioneers Society, which was put together by a group of unemployed weavers who had lost their jobs because of the industrialization of the textile industry. Among the key tenets: Anyone who wishes to join a consumer cooperative can. Profits must be split among members according to their “patronage,” which refers to their use of the cooperative, not the amount of their investment in it. Members elect a board that oversees the management. Unlike most U.S. companies, where voting power is based on the principle of “one dollar, one vote,” cooperatives are based on the principle of “one person, one vote.”
 
Co-ops are deeply democratic. And while many are committed to pleasing as many members as possible, few rigidly adhere to the consensus practices that made my experience in Stanford’s co-ops so exasperating. If anything, co-ops transcend political ideology. As Schwartz observes, “For conservatives, cooperatives mean self-help, people doing for themselves what needs to be done. For liberals and progressives, it’s social progress, people doing what the community needs.”
 
Even though most cooperatives start very modestly, some have grown spectacularly. Familiar co-op brands include Nationwide (a mutual insurance cooperative), AgriBank (a Minnesota-based farm-credit cooperative with $36.6 billion in assets), Recreational Equipment Inc. (better known as REI, the Seattle-based sporting goods company), and the Associated Press (a newspaper cooperative). Some cooperatives have scaled up to become significant engines of economic development within their communities. The Hanover Consumer Cooperative Society, based in New Hampshire and Vermont, has twenty-eight thousand members. According to its treasurer, Donald Kreis: “We have a vibrant local ag sector, and one of the reasons is that it’s anchored by our big co-op. Our co-op is a $70-million-a-year business, and it buys a ton of locally produced products. Our co-op offers these vendors favorable payment terms. In doing that, the co-op makes sacrifices, which make it less profitable. The theory is that we can go to the twenty-eight thousand households that own the business and say, you know what, we are going to return a little less to you, because we know we all want to have a vibrant local ag sector.”
 
Another Rochdale principle is to assist other co-ops or groups who wish to start their own co-ops. Kreis tells the story of a small town north of Hanover called Littleton, an hour-plus drive away: “They came to us at one point and said, ‘We love your co-op, we’re members of it, and we’d like you to open a branch store in Littleton.’ Well, Littleton is really a little too far away for our co-op, but we said to them that we’ll help you start your own co-op. You guys can raise money in your community, and we’ll assist you. The people in Littleton didn’t get it at first that we were serious about totally cooperating with them and not treating them as a rival or competitor in any way. Every shred of expertise we had we were willing to share with them: Our merchandising people went up there and helped them start the store; we gave them one of our store managers who was retiring and he became their founding manager; we even subsidized his salary for a while. What was really cool was that we didn’t just help this community start a co-op, we helped educate and raise the consciousness of people in the community about what cooperation really means.”
The Littleton story illustrates that the capital that members put into a co-op not only supports that co-op itself but also the proliferation of other cooperatives and other local businesses. The National Cooperative Business Association is also facilitating the creation of a patient capital fund. (The term patient capital generally means that investors are expected to keep their money in the fund for a long time.) Co-ops like Kreis’s lend their surplus capital to NCBA, and NCBA in turn lends it out to new or expanding co-ops. The Cooperative Fund of New England, another lender to start-up co-ops, gets its capital from socially responsible institutions like the Episcopal Diocese of Hartford, Connecticut.
 
There’s a tendency for those unfamiliar with cooperatives to look down on them as the leftovers of the mainstream economy, implying that if these ideologically driven people simply reorganized themselves into “normal” private companies, they would be more efficient and productive. In fact, just the opposite is true: Cooperatives often enter into economic activities that private businesses will not take on. The most fertile period of cooperative growth was during the Great Depression. Rural electric cooperatives spread across the American plains when it became clear that other investor-owned and municipally owned utilities were uninterested in wiring up sparsely populated regions. Credit unions, as we’ll soon explore, have seen an upsurge during the recent financial crisis.
 
One economic argument, for consumer cooperatives especially, is that putting consumers in the driver’s seat helps to keep prices low. The information flow from consumers to producers is direct and immediate. Outrageous executive compensation, debt-inducing acquisitions, unjustifiable dividends to lure weary shareholders, irrational price inflation and discrimination—all the crazy behavior of conventional corporations—can effectively be banned by mindful consumers in co-ops. “Members naturally have trust and confidence in a co-op,” argues Kreis, “because they own it. And that has both social capital and real capital bound up in it. There’s real business value in being able to look your customers in the eye and say, You can trust us, because you own us, and we’re in business to do nothing other than act in your best interest.”
 
Funerals may seem like an odd place to see the competitive advantage of co-ops, but wherever there are stratospheric profits and monopolistic practices, consumer cooperatives can bring prices back to Earth. “Pomp and circumstance are for royalty,” jokes John Eric Rolfstad, executive director of the People’s Memorial funeral cooperative in Seattle, “[whereas] Baby Boomers want good value, simplicity, and convenience.” His cooperative has eighty thousand members and performs more than a thousand funerals per year. The cost of an open-casket burial is $3,299—less than half of what the average American pays. Mindful of the huge environmental footprint of cemeteries, People’s Memorial encourages members to choose cremation for $649. “Simple final arrangements focus more on the spiritual and existential aspects of life and death, rather than on ostentatious materialism,” says the co-op’s website. In 2009 it issued $164,000 in dividends to its members, partially through patronage payments and partially through price cuts.
 
A second economic argument for cooperatives is that worker participation in running the business (which is certainly the case for worker cooperatives but also is a common feature of consumer cooperatives) increases labor productivity. One study comparing plywood companies in the Pacific Northwest found that cooperatives were 13.5 percent more productive than equivalent unionized plants, noting that cooperative workers could have gone on vacation an extra seven weeks and produced as much as their private-sector counterparts. The efficiencies occurred because management, by involving workers, made smarter decisions about raw materials, machinery, and production methods. Another study of the Mondragon Cooperatives in Spain (elaborated below), by Henry Levin of Columbia University, showed that with only 25 percent of the capital per worker as the nation’s largest five hundred private firms, they were able to add 88 percent to the value of products per worker. That’s triple the productivity!
 
A third economic argument is especially important for local living economies: Cooperatives can help local businesses compete more effectively. An inefficient small business can team up with others through a purchasing or producer cooperative to achieve economies of scale. To put it another way, there is no economy of scale local businesses cannot achieve as long as they are willing to work together through a cooperative. Sunkist, a co-op of citrus growers, enables member growers to deploy a common brand and undertake first-class, well-financed marketing campaigns. Furniture First, headquartered in Harrisburg, Pennsylvania, undertakes collective purchasing on behalf of the small furniture dealers it represents around the country, delivering bulk discounts and volume savings that would not be possible without the collaborative platform. In rural Wisconsin, a purchasing cooperative has boosted the local food movement.
 
“Local food is good medicine for everyone,” says Stephen Ronstrom, CEO of Sacred Heart Hospital in Eau Claire, Wisconsin. “It preserves and expands family farms, provides jobs in production and processing, and keeps money in our community.” To bring local food cost-effectively into the nonprofit hospital, Ronstrom’s staff teamed up with local farmers to create the Producers and Buyers Cooperative. No one farmer can provide the volume needed for the twenty-six hundred meals a day the hospital must serve. But by putting together dozens of farmers, processors, distributors, and institutional purchasers into a single cooperative, the entire system performs like an exquisite ballet. Other hospitals have since joined, and the cooperative anticipates attracting more institutions in the region like public schools, universities, nursing homes, and business commissaries.
 
The savings from collaboration are apparent in the bulk purchasing done by the Lakes Country Service Cooperative (LCSC) in Minnesota. In 1976, the state created eight regional purchasing cooperatives to provide affordable health insurance to its school districts. These have since expanded their memberships to include local governments and nonprofits and are now bulk-purchasing everything from paper to cars. Mark Sievert, city administrator for Fergus Falls, a fourteen-thousand-person town that belongs to the co-op, says the city’s $250 annual membership has led to hundreds of thousands of dollars of savings. In 2009 the co-op purchased $25 million of goods and services for its members, saving them $3.5 million.
 
For communities struggling to create jobs, cooperatives offer an affordable way to pool capital and to start up new businesses. In most states, co-op memberships are exempt from securities registration requirements. And under federal law, cooperative memberships generally are not considered securities. Therefore, all the expensive federal and state registration requirements necessary for unaccredited investors to launch, say, a private grocery store can often be dispensed with if the store is a consumer cooperative soliciting members.
 
But how exactly can a cooperative become an investment vehicle? In a typical consumer cooperative, a new member invests in, say, a $100 share, and then gets discounts on goods and services, and perhaps a patronage refund at the end of the year. If you become a member of dozens of co-ops, covering each of your basic needs like banking, insurance, energy, food, and health care, your capital investment may add up to several thousand dollars. Usually when members leave a cooperative, they can get back their member capital. If that $100 invested in the co-op allows a member to enjoy $10 of discounts or patronage benefits each year, the rate of return is 10 percent—more than double what a typical stock fund will deliver.
 
In the 1975 case of United Housing Foundation v. Forman, the U.S. Supreme Court established that memberships in a co-op, when purchased primarily for the benefits of membership and not primarily for a financial return, are not securities under federal law. Moreover, patronage distributions from co-ops that provide personal, living, or family items are exempt from federal taxation. But state law is more complicated. Whether your specific cooperative membership is or isn’t a security, whether it’s exempt from state blue-sky filings, how it is taxed, how much of a financial return members can realize—everything turns on your state’s exact co-op statutes and tax and other securities laws. And the rules are inconsistent across the country. Every state has at least one co-op statute, and many states have different statutes governing different types of co-ops. Minnesota has seven!
 
But if a cooperative keeps its members and business within a state, then at least all it needs to worry about is state law. Jenny Kassan, my colleague in Cutting Edge Capital, explains: “The minute you cross state lines, if you solicit investors in more than one state, federal law comes into play . . . In Colorado, Washington, Massachusetts, and several other states, cooperative memberships are exempt from the state securities law registration requirements. They can go out, solicit the public to buy memberships in their co-op, and not have to worry about the usual requirement to file a registration with the state regulators.” Cooperative memberships then can open a spigot to other local-investment opportunities.
 
______
Michael H. Shuman is an economist, attorney, author, and entrepreneur, and Director of Research and Marketing for Cutting Edge Capital. He has authored, coauthored, or edited eight books. He helped co-found BALLE, which represents 22,000 local businesses in North America in 80 communities, and is now a Fellow there.
 
This excerpt is from the book Local Dollars, Local Sense: How to Move Your Money from Wall Street to Main Street and Achieve Real Prosperity. It is reprinted here with permission by Chelsea Green Publishing. For more information about this book, visit www.chelseagreen.com.

Interview with Rob Hopkins on In Transition 2.0

By Rob Hopkins, posted Apr 24, 2012:

Jonny Gordon-Farleigh from STIR interviews Rob Hopkins

Transition Town Totnes logo

To mark the release of In Transition 2.0 — an inspirational film about communities printing their own money, growing food, localising their economies and setting up community power stations — I spoke to the Rob Hopkins, co-founder of the Transition Network and Transition Totnes, about energy ownership, cooperative finance strategies, and how storytelling can change our expectations of ourselves and our communities.

STIR: For those unfamiliar with The Transition Network, could you talk about the reasons it was started?

Rob Hopkins: It was started because at the time, in terms of what a response to peak oil might look like, the only responses you could really find anything about were head for the hills with a shotgun and four years worth of toilet roll and those sort of responses. There wasn’t anything that looked like a compassionate response that was about bringing people closer together rather than shattering them apart.

It also emerged out of permaculture, which is a bottom-up, grassroots and solution-led approach. It questions the idea that you need to spend three years studying soil science to get the soil in your garden right for growing, or that you need to spend fours years studying horticulture to grow salad. Well, you obviously don’t and permaculture is about distilling out the things that we need.

And so, I was teaching permaculture and found out about peak oil. In the green movement you often find that the ideas that need to be scaled-up very quickly across society for it to be ready for something like peak oil — and in order for it to be contributing responsibly to the climate crisis — are actually niche and fringe and quite happy being to be niche and fringe. Permaculture was often quite happy to be down a misty little lane off a smallholding in Wales, and it felt to me that we needed something to coaxed all that out and scale it up really quickly.

Transition, then, was originally designed as a Trojan horse that you could chuck permaculture in. It would also act as a detox for the more affluent West, but that also didn’t start out with a blame culture. We deliberately didn’t start out with saying whose fault it was that we are in this mess, but rather that we are all in a mess, what are we going to do about it? And where do we go from here?

S: Paul Piper of Wind-Works in Germany has recently written, “51 percent of all alternative energy in Germany is owned by citizens and farms”. This energy transition is also an increasingly dramatic power shift from traditional markets and its big players into small-scale and community-owned projects.

Is this change in energy ownership as essential to Transition’s vision as the switch in energy source?

RH: Yes! Transition is about community resilience as economic development and it’s about the opportunities to create even more resilience. For example, we need a certain amount of Gigawatts put in place. At the moment in this part of the country we spend millions and millions of pounds every year paying our energy bills. That all leaks out, but we could pay that money to huge energy companies to put in place new energy infrastructure that we need — and we do need some of that because even if the communities pooled every penny that they had, there is no way they would come anywhere close to what is needed to invest for the energy transition. But at the same time, if we can get some of the communities to invest and own some of that energy infrastructure, we estimate 25 percent could be owned by communities and benefit those communities.

What that does is it starts to build the economic resilience of the place. It means more money cycles locally, and that can create more jobs, more training, and more livelihoods in the area. It starts to become a kind of positive loop in the area. And the same goes with food — we can feed everybody through supermarkets, or we can try and do a lot of that through local food systems which make our communities a lot more economically, socially and culturally resilient.

It’s about plugging the leaks in the leaky bucket. You can achieve the kind of renewable energy infrastructure that we need in such a way that it does that, or you can achieve it in such a way that it doesn’t do that. I think certainly it’s going to be much easier to get a lot of the renewables through if they are owned by the communities, in terms of planning and so on. But why not try and go for the win-win-win rather than just the win?

S: One of the major difficulties in starting up these community initiatives — in energy, farming — is the fact that they are usually capital intensive. Are schemes such as the community shares beginning to fill what is called ‘the capital gap’? And what other fundraising strategies have you seen within the Transition Network that have worked well?

RH: Here in Totnes we have the Totnes Renewable Energy Society, which is about to put in a planning application for two 2.3 megawatt wind turbines on the edge of town. That now has 500 members who bought shares in the community. Then you’ve got smaller things, like in Slathwaite in Yorkshire where the community invested £15,000 to take over the old grocery and turn it in to a community-run cooperative village shop, which is going really well. It’s called the Green Valley Grocer, and what it’s done is acted as a kind of catalyst for all kinds of other things in the area.

 

 

Then on the bigger end of it, you’ve got Bath and West Community Energy, which is a different model again, which emerged out of Transition Bath. They got one million pounds of investment from Scottish and Southern Energy, which meant they were able to take a very different model. So something like TRESOC (the Totnes Renewal Energy Society) or the Lewes solar power station and other community energy companies say, invest in us and we will give you a return on your investment sometime, probably in three or four years, we don’t know yet. What it meant with the Bath model, they were able to put up lots of solar PV up around in Bath, in the local schools, and then were able to design and launch their share option and say from the outset you’ll get four percent a year on your investment. This meant people felt sufficiently confident and could start moving their pensions into it — which is kind of the Holy Grail really: Once you are able to start getting that kind of really meaningful investment into these projects.

On the smaller scale you have things like crowdfunding or pledge bank and these kinds of things are really useful. Also Transition initiatives often tend to do quite well in terms of more conventional funding. For example, for the recent energy share thing that Hugh Fearnley-Whittingstall at River Cottage did with British Gas, four of the five winners out of that were Transition projects. There is a whole mixture of different ways to fundraise, but certainly in the Transition Network, we increasingly encourage transition groups rather than think of themselves as a kind of traditional volunteer community NGO that does cakes sales and stuff to raise funding, to think of themselves from the very beginning as a social enterprise and how they can design their awareness raising as a social enterprise.

Totnes is a great example. TTT now is starting to catalyse a number of businesses ideas and social enterprises in the area. We just had an event called the Local Entrepenuers Forum, which brought together people with ideas, with potential investors and mentors. The idea is as those businesses emerge, they’ll start to tithe back to the centre, and start to create this kind of loop of new businesses and a new economy for Totnes.

S: This reminds me of one of the original principles of the Rochdale Pioneers where the condition of being a cooperative would be to support other cooperatives. When Transition initiatives become economically sound do you envision them supporting each other in the same way?

RH: I don’t think we are quite at that stage yet but it is a great aspiration, absolutely. The Rochdale Pioneers have always been a big inspiration for the Transition Network. You have to remember that Transition has only been around for a few years and in some places it is only a few people, but the time when the Rochdale Pioneers became widely relevant was because they were creating work for people. Once they became a significant employer through the shops or through the farm, the tedious discussions about whether cooperatives are a good idea or ‘why do cooperatives?’ really went into the background because this is where the new economy was based.

I hope this will be the case for Transition Totnes in the next five to ten years, where people will come to Totnes, for example, and not even call it Transition but instead they will come and see micro-enterprises and bigger enterprises connected.

S: Local currencies, global bartering systems and moving money from the big banks into credit unions have all returned as viable alternatives.

How important do you think these initiatives are in supporting Transition? And do you think that we could have the desired transition with the current financial institutions in place?

RH: Well, I have just finished reading Nicholas Shaxton’s Treasure Island about offshore banking. It is hard to imagine quite how you could do it with a system like that in place, where half of all the money in the world is in offshore banks. So, the beauty of local currencies is that you can’t do that. A local currency like the Brixton Pound, or say the Bristol Pound — which will be the first city-wide currency — is that they’re designed to lock-up the sterling so that it can’t leave and they turn it into another currency that has a denomination that has no value in an offshore bank.

So, yes, it is difficult to imagine a successful transition on the scale that is required with the offshore banking system still in place. Before I read Treasure Island I was ignorant of the extent of offshore banking and was horrified by every page. We do need new financial institutions and new ways such as local currencies for creating strong local economies. The great thing about local currencies is that they focus the mind on local concerns.

 

 

In addition, we also need a lot more planning protection for communities in terms of multinational supermarkets muscling in and trying to take them over. This has been the experience of a few Transition Initiatives where they are locked into struggles with big corporations who are compromising their local economy.

Ironically, some of the things that will benefit us in the Transition Network are being pushed through the localism agenda by the government. These developments are quite useful to Transitioners and I am not sure the government appreciates the implications of this. For example, the right to buy, the right to try, and neighbourhood-led planning measures are useful tools. Here in Totnes, we have a campaign called Atmos, which is working to take on a derelict site near the railway station and develop it as a catalyst for a new economy — as an incubator space for various kinds of businesses. The owners of the site seem very reluctant because they are conventional in terms of development.

However, measures like neighbourhood-led planning will allow us to cut them off round the back and close down their options. We didn’t have these tools three or four years ago, and some of the tools have emerged almost by accident and there are some we still need to invent.

I still think, though, that the key obstacle to this happening is our belief that we can do it. Generally, the obstacles we put in our way to convince ourselves that we can’t do things can be shifted if you put enough energy into it. For example, when we started the Transition Network, people said to us ‘that’ll never work because…’. In the first Transition book there is a list of seven buts — which were all the reasons people will give to why it will not work. And here we are!

S: The strategy group Smartmeme say if we are to change the world, we have to change the story. How do those working within the Transition Network change the story from competition and growth to cooperation and sustainability?

RH: I think that Transition, in the main part, is about storytelling. When people come to visit Transition they say ‘It’s amazing what you’re doing with the Brixton Pound’. We don’t actually do any of those things! We basically put out an idea and invitation, and when people pick it up they do amazing things. Our role is gathering in those stories and retelling them — and there are some amazing stories coming out of the network.

When we started Transition Totnes, I initially thought of it as an environmental process but I think it has become a cultural process. It is changing the story a place tells about itself and the story here, in Totnes, has really begun to shift in the last five years. Only five years ago it was the wacky la-la land and hippy-dippy capital of the South West. Then about a year-and-a-half ago the Western Morning News, who had previously taken great joy at sniggering down their sleeves at wacky Totnes for the last forty years, ran an editorial Hippy Town Comes of Age. This basically said, ‘Well, maybe they’re right, and maybe we should stop taking the piss because they might be on to something’.

Even local politicians who do not have any serious interest in Transition go out for events in other places and people say, ‘Oh, you’re from Totnes – Transition Town Totnes!’ There is one lady here whose daughter went to Canada and was kayaking in the Great Lakes and saw another boat and thought she would go over and say hello. While they were introducing each other, the other person said ‘Totnes! Transition Town Totnes!’ So telling these stories helps to change the expectations people have, change the conversation, and change what people believe is possible.

Also, Transition has changed the story of the end of oil, from the vision where we will all be eating cats out of dustbins to actually believing that we could do something amazing. We actually have a few different stories that we tell ourselves as a society. Firstly, everything goes wrong and collapses and we end up like the The Road; or, we have a Star Wars techno-fantasy story where we will be flying around on our own hover boards, eating algae, and visiting the moon for holiday; or, we have the business-as-usual approach that believes the future will be just like today but with a few solar panels on the roof. What Transition has done is introduce another story about how it could be and has already started to make it happen.

So, we overlook storytelling at our peril!

S: You have just premiered in Transition 2.0. In the global communities that make up the Transition Network, what inspiring examples and developments have you seen since the last film?

RH: Well, the first film was a wiki-production: we invited people to record their activities, send us the tapes — which we panned for gold — and then made it into a film. This was in the really early stages and while there were a few good stories, there were also projects filming the fact that they had just installed an energy meter! The new film is much stronger and it tells a story: it begins with small projects like the starting group and then it grows and grows.

One of the great stories is of a guy growing food in a neglected, deprived neighbourhood in Pittsburgh. A moving story is about a community in Japan that was affected by the Tsunami and whose response to the crisis was to set up an energy company in Fujimi. There is also the story of the community growing food at Kilburn underground station.

 Food growing Kilburn

Growing food at Kilburn Underground station

 

What we are really pleased about is that we are able to include sixteen stories from seven different countries and no one got on a plane. We crowdfunded to raise money to pay local professional filmmakers in each location to do the work.

The film concludes by asking the question: When things become difficult in a community, through economic crisis or natural disasters, to what extent has Transition thinking seeped into the drinking water as a way to inform the response? There are two stories, which close the film, from New Zealand and Japan. After the disasters in these countries, the situation was obviously really tough and it was transitional thinking that got them through.

Originally published at STIR

 

Two Cheers for the JOBS Act

By Michael Shuman, posted Apr 23, 2012:

Plant shoots from penniesFor nearly a century local investing has been essentially illegal, and Wall Street has monopolized all the investment options for the average investor. Thanks to the JOBS Act that President Barack Obama recently signed into law, local investing in job-creating small businesses is now legal.

Unfortunately, there has been a tremendous amount of misinformation spread about this Act, much of it by liberals I usually admire. They should be the people most eagerly embracing this bill for what it does — giving people a chance to revive Main Street economies across America.

Jim Hightower, for example, condemns the bill for "deregulating Wall Street." In fact, the bill spells the end of Wall Street as we know it. It allows the 99% of us who are not wealthy ("unaccredited investors") to put our money in the local businesses we love by removing what were once impossibly difficult and expensive legal hurdles. Those barriers were so targeted against small business and small investors that they resulted in almost none of our long-term savings — now totaling $30 trillion — being invested into the local half of our economy. The JOBS Act ends this misallocation of capital for good.

To me it’s ironic, and disappointing, that folks like Hightower, Robert Kuttner, and Eliot Spitzer were committed to the status quo and to maintaining Wall Street’s monopoly on capital. How could such great thinkers get this issue so wrong? Here are my top five reasons:

First, the critics misunderstand who promoted this bill. Kuttner, for example, blames Obama for being "always eager to curry favor with Wall Street donors…" Wall Street lobbyists played, at most a peripheral role, it was small business owners and "makers" like Woody Neiss and Paul Spinrad who led the charge. Innovative thinkers in the White House, like Doug Rand at the Office of Science and Technology Policy, played a pivotal role in shaping the president’s views about entrepreneurship. Non-Wall Street insiders like IndieGogo, a crowdfunding web site, and the nonprofit Sustainable Economies Law Center, pushed hard as well.

Second, the critics, who are justifiably skeptical of wholesale deregulation, don’t like to concede that any form of regulation has been a failure. But any honest assessment of the history of securities law would observe that we essentially regulated local finance out of existence while permitting Bernie Madoffs to operate freely. For decades, the SEC has held annual meetings where small business owners have urged reforms — modest deregulations that could open up capital to small companies, such as allowing small-dollar, local investments to be exempted from securities filings. The SEC never implemented any of those suggestions — even a recommendation that $100 investments be exempted.

Third, the critics have tremendously exagerrated the dangers of fraud. The casual reader of the liberal critiques might conclude that the sale of fraudulent securities is now legal, and that "boiler room" operations will be set up to bilk grandma of her life savings. Yet state and federal laws against securities fraud remain in effect. In fact, the JOBS Act adds a number of new provisions for preventing fraud, by requiring that crowdfunding offerings only be made through registered intermediaries.

Why, moreover, should anyone be banned from spending, investing, or donating a couple of hundred dollars any damn way they please? Every American, irrespective of income, is allowed to lose their life’s fortune on lotteries and casinos. Why not allow more reasonable risk tasking on building community economies? If grandma is not wealthy, the JOBS act limits her risk in any one business to the lesser of $2,000 or 5% her assets.

Fourth, the critics do not appreciate that there are other approaches to preventing fraud. E- bay has all but eliminated fraud through consumer and business evaluations of one another. So have other crowdfunding sites in the United Kingdom. In other words, the SEC’s premise — that the only way to prevent fraud is by banning unaccredited investors from making their own judgments — is flat out wrong.

Perhaps the critics’ most appalling misunderstanding is the fraudulence of the status quo. Every day the SEC allows investment advisers on AM radio to hawk the stock market, promising 10-20% annual returns, when in fact the returns — once inflation and compounding are taken out — are closer to 3%. These misrepresentations have convinced Americans that putting 100% of their savings into Fortune 500 companies is safer and provides a better return than investing in local business. In reality, the stock market is becoming an increasingly dangerous and unregulated casino where trades are done by computers that cause flash crashes when they malfunction. The JOBS Act will allow local businesses to begin to compete for a fair market share of investment dollars and provide returns that are equal to, if not slightly greater than, the true returns provided by Wall Street.

I agree, the bill is imperfect. I’m not thrilled with the deregulations of larger companies. And the bill legalizes all kinds of crowdfunding, local and nonlocal. But we can make it better. We should start educating the public about the importance of favoring local investment over abstract ones hundreds or thousands of miles away. Knowing the business in which one invests — knowing the products, the entrepreneur, the workforce, etc. — is the best way to prevent fraud.

It’s worth adding that after the bill was signed, 25 of the people who were most instrumental in passing the bill — none from Wall Street, by the way — got together to discuss ways we could create internal checks and balances on the marketplace, to improve quality control and help identify hucksters. I hope similar groups form in every community to create an honor roll of local businesses they know and trust — perhaps businesses that embrace open-book accounting — and that they then encourage residents to prioritize their crowdfunding.

Like it or not, Wall Street’s stranglehold on investment is over. We now have a new legal landscape that we can play a pivotal role in shaping. Everyone who cares about the vitality of Main Street needs to step up, not out.

Michael Shuman is the author of Local Dollars, Local Sense: How to Shift Your Money from Wall Street to Main Street and Achieve Real Prosperity (Chelsea Green Publishing, 2012) . He is a fellow of the Post Carbon Institute. He attended the Rose Garden bill signing ceremony.

Image – Coins with seedling via Shutterstock

The Power of a Radically Affordable Irrigation Pump

By Sandra Postel, posted Apr 19, 2012:

Water pump in rice filedOne of the more transformative technologies ever developed for the world’s poor farmers is a water-lifting device called a treadle pump.

It looks and operates much like a Stairmaster exercise machine that you’d find in a gym.  But the dollar-a-day farmers who use these devices are not trying to lose pounds; they’re trying to gain them.
 
More than 850 million people in the world today are chronically hungry.  It is a sad irony that most of them live on farms, typically cultivating small plots in South Asia and Sub-Saharan Africa.
 
These farm families go hungry because they have neither the resources to make their land productive enough to meet their food needs nor sufficient income to buy the food they need.
 
For many of them, the missing ingredient is water.  And that’s where the treadle pump comes in.
 
Traveling through Bangladesh some years ago, I saw vast areas of brown, barren land. It was January – the dry season in this monsoonal country – when there is too little rainfall to plant crops with any hope of a harvest.  Without access to irrigation water, small farmers leave their land fallow, which in turn leaves them hungry and poor.
 
But northeast of Dhaka, the fields were green and bustling with activity.  Men and women, children and parents, were operating treadle pumps, often under colorful canopies for some relief from the sun.  In the pump’s original version, designed by Norwegian engineer Gunnar Barnes, the operator pedals up and down on two poles (called treadles), which activates a cylinder that suctions water up through a shallow well. The water then empties into an irrigation ditch and travels down the field to irrigate small plots of rice and vegetables.
 
For a total investment of some $35, Bangladeshi farmers could irrigate half an acre (0.2 hectares) during the dry season.  Not only could they then feed their families, and get out of the hunger trap, they could also take some higher-value vegetable crops to market – and escape the poverty trap, as well.
 
Working with Barnes and other partners, the Denver-based International Development Enterprises (IDE) developed a highly successful marketing and promotion campaign to sell treadle pumps to Bangladeshi farmers through the private sector.  IDE’s approach was to work locally to develop a full supply chain – manufacturing, sales, installation and repair – so that the treadle-pump industry could be self-sustaining.
 
Today, some 84 manufacturers produce treadle pumps in Bangladesh, and, since 1985, some 1.4 million pumps have been sold to Bangladeshi farmers.
In his book, Out of Poverty: What Works When Traditional Approaches Fail, IDE founder Paul Polak estimates that treadle pump investments by farmers totaling $37.5 million combined with donor investments of $12 million are generating net returns to Bangladeshi farmers of $150 million per year.
 
Following on this success, other organizations (as well as IDE) have helped introduce variations of the treadle pump into countries in Sub-Saharan Africa and elsewhere.  In 1998, the non-profitKickStart began marketing a line of pumps called the MoneyMaker in Kenya, Mali, and Tanzania, and later in Burkina Faso and Malawi.
 
KickStart’s best-seller is the $300 Super MoneyMaker Pump, with sales to date totaling nearly 158,000.  Sales of its lighter, $100 Hip Pump have exceeded 32,000.
To help poor women buy pumps themselves, KickStart has established a Mobile Layaway program, which allows women farmers to save for a pump by sending micro payments to KickStart through their mobile phones.  Many are able to buy a pump within ten weeks.
 
In March, U.S. Secretary of State Hillary Clinton presented Kickstart with the first-ever Innovation Award for the Empowerment of Women and Girls.  In presenting the award, Secretary Clinton noted, “If you just stop and think that 60 to 70 percent of the small-holder farmers in the world are women, this (initiative) has enormous potential.”
 
Treadle pump adopters won’t have to do the hard labor of treadling forever.  As they move up the income ladder, they’ll turn to a labor-saving irrigation system, perhaps powered by diesel or solar energy. With the extra time, women may start a business.  Girls will attend school.  Unleashed from poverty and hunger, the entrepreneurial spirit will soar.
 
The power of a water pump – designed, as Paul Polak puts it, for “radical affordability” – is not to be underestimated.
 
Originally published April 18, 2012 at National Geographic Newswatch
 
Image: A Bangladeshi farmer operates a treadle pump to irrigate her family’s rice field. Photo courtesy of International Development Enterprises.

 

Changing the climate in our schools

By Bill Bigelow and Bill McKibben , posted Apr 18, 2012:

By Bill Bigelow and Bill McKibben
Maybe you’ve heard. We are facing a climate crisis that threatens life on our planet. Climate scientists are unequivocal: We are changing the world in deep, measurable, dangerous ways — and the pace of this change will accelerate dramatically in the decades to come.

Then again, if you’ve been a middle school or high school student recently, you may not know this.

That’s because the gap between our climate emergency and the attention paid to climate change in the school curriculum is immense. Individual teachers around the country are doing outstanding work, but the educational establishment is not. Look at our textbooks. The widely used Pearson/Prentice Hall text, Physical Science: Concepts in Action, waits until page 782 to tell high school students about climate change, but then only in four oh-by-the-way paragraphs. A photo of a bustling city includes the caption: "Carbon dioxide emissions from motor vehicles, power plants, and other sources may contribute to global warming." Or they may not, the book seems to suggest.

IAT’s Coordinated Science: Physical, Earth and Space Science devotes several pages late in the book to climate change, and concludes with this doubt-soaked passage:

Some people take the position that the increase in carbon dioxide should be reversed. They believe this is necessary even though the size of the contribution to global warming is not certain. It is their belief that the consequences would be very difficult to handle. Other people take a different position. They consider that it would be unwise to disrupt the world’s present economy. They consider the future danger to be questionable. The big problem is that no one is certain that rapid global warming will take place. If it does, it may be too late to do anything about it!

The danger of climate change as "questionable"? ExxonMobil itself could not have produced a more skeptical approach.

These textbooks are not mere egregious outliers; they are typical of commercially produced science and social studies teaching materials. In fact, a partnership between the American Coal Foundation and Scholastic to create a propagandistic 4th grade curriculum was ended only last year, when educators and environmentalists exposed the lessons’ absurd pro-industry biases. Scholastic’s curriculum, The United States of Energy, was distributed free to tens of thousands of elementary teachers. It showed gleaming piles of coal, along with many of its alleged benefits. Students didn’t learn of a single problem, including coal’s huge contribution to climate change.

"…the enormity of the climate crisis demands that educators, scientists, environmental activists, parents, and students join together to pull down the barriers between disciplines, and to rethink the curriculum. The cost of continuing with business as usual is too steep."

But as state legislatures get into the business of writing school curricula, things may go from awful to worse. Take Tennessee. It just became the fourth state — following Louisiana, Texas, and South Dakota — to pass a law that requires global warming to be taught as one of a number of "scientific controversies."

The fact that Tennessee is home of the infamous 1925 Scopes Monkey Trial makes the new law ironic, but not funny. As the American Association for the Advancement of Science explains, "Asserting that there are significant scientific controversies about the overall nature of these concepts when there are none will only confuse students, not enlighten them."

If you happen to be a member of the one percent that owns a coal company, oil wells, or a pipeline, young people’s confusion is a good thing. For the rest of humanity, the passivity generated by this confusion is tragic.

Of course, educators cannot simply blame the lack of climate education on greedy corporations and the legislators they buy. In high schools, too often teachers regard the walls between disciplines as fixed and legitimate. Most social studies teachers thus far seem willing to leave discussion of carbon dioxide, the mechanics of the greenhouse effect, and "feedback loops" to the science department. And science teachers, overwhelmed by the requirements of their own discipline, are reluctant to trespass into the social causes and consequences of climate change. Teachers of other disciplines — drama, language arts, math — may wonder about the relevance of the climate for their subjects. And elementary teachers may think that climate change is too depressing or too complicated for their children.

But the enormity of the climate crisis demands that educators, scientists, environmental activists, parents, and students join together to pull down the barriers between disciplines, and to rethink the curriculum. The cost of continuing with business as usual is too steep.

The good news is that addressing this crisis with the urgency that it deserves offers the possibility of revitalizing schools as young people develop the consciousness and commitment that the earth desperately needs.

And this work needn’t be grim, as some educators have already discovered. For instance, a workgroup of teachers in Portland, Ore.,wrote a role-play on the impact of climate change on indigenous peoples throughout the world — from island nations like Kiribati to the Yup’ik of Alaska — in which students assume the personas of indigenous activists and propose global solutions.

And of course there’s always straight-up physics and chemistry — understanding the mechanics of climate change is classic science education.

A curricular full-court press on the climate offers a compelling renunciation of the numbing test-preparation that passes for education in so many schools these days. As Rethinking Schools editors wrote recently, "This endeavor demands that young people exercise their utopian imaginations to consider alternatives of all kinds. And it invites them to ‘talk back’ to those interests that promote and benefit from endless consumption — including the publishers of their own textbooks."

This is our chance to develop a generation for whom climate awareness is as natural as logging onto Facebook.

The Trouble with Money

By Chris Martenson, posted Apr 17, 2012:

dollarsA Broken Narrative

Recently I was asked by a high school teacher if I had any ideas about why students today seem so apathetic when it comes to engaging with the world around them. I waggishly responded, "Probably because they’re smart."

In my opinion, we’re asking our young adults to step into a story that doesn’t make any sense.

Sure, we can grow the earth’s population to 9 billion (and probably will), and sure, we can extract our natural gas and oil resources as fast as possible, and sure, we can continue to pile on official debts at a staggering pace — but why are we doing all this? Even more troubling, what do we say to our youth when they ask what role they should play in this story — a story with a plot line they didn’t get to write?

So far, the narrative we’re asking them to step into sounds a lot like this: Study hard, go to college, maybe graduate school. And when you get out, not only will you be indebted to your education loans and your mortgage, but you’ll be asked to help pay back trillions and trillions of debt to cover the decisions of those who came before you. All while operating within a crumbling, substandard infrastructure. Oh, and by the way, the government and corporate sector appear to have no real interest in your long-term future; you’re on your own there.

 

Yeah, I happen to think apathy is a perfectly sane response to that story. Thanks, but no thanks.

To understand how our national narrative evolved (or, more accurately, devolved) to become so unappealing, we have to take an honest look at money.

Money is Not Wealth

Money is just a marker for real things. As long as you can exchange your money for real things, your money represents value. Because we tend to conduct all of our most meaningful transactions using money, our perspective can become warped to the point that we think it is the money itself that has value.

The economy is measured in these units, these markers, which we call "money." But money is not the same thing as the economy. Far from it. And money has no value on its own, but only in relation to the things we can exchange it for.

The economy consists of real needs and wants being fulfilled. On one end of the spectrum, we have the basics like food, water, shelter, medical care, and other necessities. On the other end of the spectrum, we have 15-minute neck massages at the airport. Everything else lies in between 

Money, on the other hand, is simply a facilitator of exchanges.

When we reduce the economy to its simplest form, it really consists of a growing number of people trying to meet their needs and wants. More people (~80 million more each year) simply translate into increasingly greater demand for the earth’s limited and ever-limiting resources.

Since our human desire to consume is virtually limitless, a key role of money is to provide the scarcity necessary to divvy up a limited amount of goods and services among the population. There has to be a balance between money and the things that humans can produce and distribute, or else prices get out of whack.

So now let’s imagine a world where real things are in limited (and limiting) supply, and then compare this idea to our money supply in order to get a sense of where things are headed.

This is a chart of Money of Zero Maturity (MZM), which is the largest and most comprehensive accounting of money in the Federal Reserve system and has been ever since M3 was abandoned.

If that looks like an exponential chart to you, you are correct. Sure, there are a few wiggles and jiggles along the way, but the system of money we’ve been living under and setting our expectations around is an exponential money system. For it to remain in balance with resources that come from the earth, we need those to expand exponentially, too.  If they don’t — and they can’t forever — things will get out of whack. And it’s probably no surprise to hear my view that money is what is increasingly out of whack in this story, not the earth’s resources.

One feature of exponential systems is that the amount of accumulation of whatever it is that is being measured increases over time. If we draw a few arrows on the above chart, we can see that money is accumulating in our system at a faster and faster pace:

"Stage 3" in this chart shows what has been happening since 2008. Aside from the little hump there in 2008, MZM is accumulating at the fastest pace in history. Isn’t that interesting? Even as employment is historically very weak, income growth is stagnant, the economy is limping along, and inflation is (allegedly) quite low, the US is manufacturing money at the briskest nominal pace in the series.

The reason that we’ve not experienced massive inflation (yet) is that the money that is being injected into the system is basically just piling up and not really doing anything. It’s just sitting there. One measure of this is the so-called ‘velocity’ of money, which is not actually a measured value but an inferred one, derived by dividing the stock of money into GDP. The higher the resulting number, the faster each unit of money is racing around in the economy trying to do something (which usually means to spend itself before inflation steals its value).

In fact, the velocity of money is at an all-time low and seems to be headed lower. When this money all finally decides to go out and spend itself while it still has some value, it will be quite a process to observe. Just think of stored-up money like potential energy, the same as a massive snow cornice hanging precariously over a steep gully. It’s not a question of if, but when it will finally release and cause the value of money to plunge.

And the point I am trying to make is that there are two sources adding to the pressure here. One is the amount of money being piled up, and the other is the dwindling quality of oil. Adding more and more snow to the situation (as the Fed and other central banks are busily doing) is not really helping anything, and neither is a decrease in the net energy returns of new oil discoveries.

Just for kicks, here’s a chart of money in circulation (including cold, hard cash and coin) stretching back through time to around the creation of the Fed.

Is that a picture-perfect exponential chart or what?

Now the other side of the money situation is, of course, debt. Here we see something quite remarkable, which is that somehow the Fed has managed to achieve a new all-time high in total credit market debt.

I say "remarkable" because what really should be happening here is de-leveraging, not re-leveraging. We should be seeking to decrease the total amount of debt, not increase it. But of course, that is not the business of the Fed. Its business is strictly to keep the exponential money and credit systems growing exponentially.

Well, that and assuring that the big banks never have to have an unprofitable quarter.  But that’s another story for another day.

Yet even with the heroic efforts of the Fed to push, badger, cajole, and horse-whip the aggregate amount of debt higher, its efforts are falling short. Note that we are still many, many trillions away from the trend line, which is what we’d need to get back to in order for things to return to ‘normal,’ as abnormal as those times really were.

Recall my other main point about debt, which is that it must double slightly faster than once every decade if we want the future to mirror the past four decades. This means that from 2008 to 2018, credit market debt will need to expand from $52 trillion to $104 trillion, or a bit more than $5 trillion per year, to keep us on the same "normal" trajectory.

Part of my skepticism about the odds of things returning to "normal" rests with the difficulty I have conceiving of what exactly it is that the US might find to suddenly go another $50 trillion into debt for.

If the US cannot find a way to go that much further into debt, then all of the many fine and subtle, overt and gross ways that we’ve come to expect the economy and financial markets to work will no longer apply. Many things will change and will simply operate very differently if no other reason than credit growth has slowed to a relative crawl.

As we are now four years past the 2008 crisis and we’ve only just managed to eke out a nominal new high in total credit market debt, this means that we are roughly $20 trillion behind the curve. You could do worse than this for an explanation as to why the national budget is such a wreck, why incomes are not keeping pace, and why the nation’s infrastructure and capital investment are in such poor shape.

The bottom line is that, as expected and predicted here many times over the years, money creation with an eye towards keeping the credit markets expanding is the name of the game.

And the problem is that money is not wealth. It’s only a marker for wealth.  Simply increasing the money supply without understanding where we are in the energy story is an incredibly risky, if not foolish, thing to do. 

That’s the trouble with money.

Change Is Coming

Look, I hate to be the bearer of what many will consider to be bad news, but things are not ever going to go back to "normal" if we define normal as the period from 1950 to 2000 during which relatively constant economic growth and slightly-faster-than-that debt growth went hand in hand.

Everyone currently in a position of power honed their skill sets during a period of time when the pie was reliably growing and the skirmishes centered around how best to lay claim to one’s own portion of the expansion.

Unfortunately for those with these skill sets, we have entered a brand new epoch, where, for a variety of inter-related reasons, old-style economic growth is no longer possible. These reasons are partly demographic, partly related to reaching the mathematical limit of growing one’s debts faster than one’s income (or GDP, in this story), and partly related to the end of cheap (and easy) oil.

It is this last part, the oil story, which has almost entirely eluded the intellectual grasp of our monetary and fiscal masters. I don’t blame them, as mastery of the physical sciences is not a requirement of any classical economics departments in any of the universities that churn out our PhD economists.

This is very strange, when you think about it, because economics is entirely rooted in the process of extracting and converting natural wealth into material wealth. Without the primary inputs of the earth, there would be NO secondary or tertiary wealth for us to divvy up (via a money-driven rationing process) or develop exotic derivative products around.  Economics should be the study of energy and resource flows as well as money.

Imagine if medical scientists did not have to learn about digestion and nutrition as a part of their training. After such a course of study, they might come across an emaciated patient complaining of low energy and prescribe exercise because that’s been proven to boost energy in most people. Of course, they would then be mystified by why the patient deteriorated and did not recover.

Today we find the world’s central banks mystified as to why trillions and trillions of freshly-printed fiat units, be they dollars or euros or yen, are not resuscitating the world economic system. The answer might just be grounded in the observation that we are out of cheap and easy oil. The very food of the economy is no longer as packed with calories as it once was, and the patient is losing weight.

What I am describing here is nothing less than a complete and utter paradigm shift that is so profound and so large that it will, paradoxically, escape detection by most people. That’s just how gigantic shifts seem to happen: They go largely unnoticed, perhaps because they are too big to internalize.

If an ever-decreasing net energy return is slowly starving our patient, which we might detect each and every time we spend $80 to $200 to fill our gas tanks (depending on whether we live in the US or Europe), then how should we position ourselves for this very different future?

What sorts of things will change whether we wish them to or not? And what is actually under our personal control?

A Crisis Is a Terrible Thing to Waste

Times of great upheaval offer a gift — the chance to really sit down and rethink things. Certain fundamental questions can arise, such as Do I have the right job? and What should my kids study in college? and Should we really have increased total derivatives by $100 trillion after the financial crisis erupted in 2008?

When faced with the sort of predicament we currently find ourselves in, even more existential questions might dominate our thinking, such as Is there more to life than working hard, buying stuff, taking on debt, and getting older? or even What’s the meaning of life? The primary narrative telling us that we are supposed to work hard, consume harder, and keep ourselves centered on the treadmill that we seem to have been born upon is beginning to unravel.

It’s a mark of maturity to use a moment of crisis as an opportunity to engage in introspection and as a springboard for personal (or societal) growth and development. Unfortunately, there are virtually no signs that either our dominant culture or our leadership is that mature.

So our opportunity here is to really question ourselves and our actions, hold them up to the bright light of day, and decide what needs to change, what we should keep, and what new things we might start doing.

In Part II: True Prosperity, we explore what constitutes real wealth, both material and intangible, as well as what alternative aspirations we can consider as individuals and as a society if we find the courage to change (or at least step out of) our broken narrative .

With the certain change discussed above headed our way, how do you personally want to enter that future? What will your work be? What will your relationship be to those around you and the place where you live? Where will your happiness come from?

Is your strategy simply to do more of the same and hope for the best? Or do you plan to use the time we still have to reposition your priorities, your behavior, and your resources to meet that new future with as much resiliency as possible?

Click here to access Part II of this report (free executive summary; enrollment required for full access).

Originally published at chrismartenson.com

Image: American dollar bills from the U.S. via shutterstock

Will Modern Phoenix Outlast the Prehistorical Hohokam?

By Sandra Postel, posted Apr 10, 2012:

Casa GrandeDarell Duppa, a late nineteenth century pioneer of the American Southwest, may barely warrant a historical footnote, but he left one memorable legacy: he named the capital city of the state of Arizona.

With a classical education and five languages under his belt, Duppa was no typical Western pioneer.  He drank and gambled, to be sure, but he also read Roman and Greek classics in their original languages.  Born in France, he later headed to America and eventually landed in central Arizona.
 
When it came time to name the new settlement that had grown up along the Salt River, Duppa drew on his knowledge of ancient mythology and chimed in that Phoenix, the mythical sacred firebird that rises anew from its own ashes, would be the perfect name.
 
“Prehistoric cities, now in ruins, are all around you; a prehistoric civilization existed in this valley.  Let the new city arise from the ashes of those ruins,” he proclaimed.
The civilization Duppa was referring to was the Hohokam, a remarkable people who lived in the valleys of the Salt, Gila, Verde, Santa Cruz and San Pedro rivers of south-central Arizona for a thousand years, from 450 to 1450.
 
The Hohokam formed one of the earliest and greatest irrigation societies of the Western world.  In the lower Salt River valley, the site of modern Phoenix, the Hohokam built canal networks spanning 300 miles in aggregate length. They turned some 70,000 acres of desert into flourishing fields of beans, corn, squash, and cotton.  Villages sprung up about every three miles along the major canals, each covering about 15 square miles and cultivating some 2,400 acres.
 
The productivity of this irrigation civilization yielded food surpluses that freed up time for other endeavors.   Many villages took pride in their ball court, a large oval depression where villagers gathered to enjoy games and public events. The artistically gifted crafted distinctive red-on-buff pottery, as well as beads, bracelets, painted shell ornaments, and beautiful ceramics.  With the Chaco people to the north, they exchanged cotton for turquoise.
 
In short, the Hohokam boasted impressive engineers, builders, artists, irrigators, farmers, athletes, entrepreneurs, and traders – and they built a civilization that weathered a millennium.
 
As I explored the ruins of the Hohokam on a recent trip to central Arizona, one question kept popping into my mind:  will modern Phoenix thrive as long as the Hohokam did in these desert environs?
 
I had pondered this question before, when a study published in late 2010 found that the mega-drought in the Southwest that lasted two decades during the middle of the 12th century, and that almost certainly contributed to the Hohokam’s demise, could happen again as human-induced greenhouse-warming turns the region’s climate hotter and drier.
 
But standing amidst the ruins of Pueblo Grande, which sits a stone’s throw east of Sky Harbor Airport, and then passing over the bone dry Gila River as I headed out to Casa Grande, a Hohokam ruin southeast of Phoenix, a more fundamental question arose: with or without climate change, will the water supply that supports this vast enterprise hold out for a thousand years, and if so, how?

Crossing the dry Gila River en route to Casa Grande. photo by Sandra Postel
 
About half of the Phoenix water supply comes from the Salt River Project, which employs six dams, 1,300 miles of canals and 255 high-volume wells to capture water from the Verde and Salt River watersheds. These surface supplies are already fully used. Heading north out of Phoenix, I crossed the Salt River and nearly missed it.  This major river, which had serviced the Hohokam for a millennium, was completely dry.
 
Some two-fifths of the capital’s supply comes from the Central Arizona Project (CAP), among the last of the huge federally subsidized Western water projects.  The CAP carries Colorado River water from Lake Havasu on the California-Arizona border 190 miles to Phoenix and an additional 146 miles south to Tucson – a total of 336 miles, and uphill.   At its final point, the CAP canal is 3,000 feet higher in elevation than where it begins.  The CAP is Arizona’s biggest user of electricity.
 
Most of the remaining one-tenth of Phoenix’s water supply comes from underground aquifers that are being depleted. Hydrologists estimate that the Basin and Range aquifers beneath Phoenix and Tucson would last about 400 years at 1980 (pre-CAP) depletion rates.
 
Overlay climate change and prospects for a sustainable water supply get dimmer. In times of shortage, California gets its full allotment of Colorado River water before Arizona gets any. That means the CAP canals could at some point run as dry as the Salt and Gila rivers already have.
 
Of course none of this is news to Arizona or Phoenix water officials.  They are preparing for dry days by banking some CAP water underground. Conservation and recycling are modestly stretching the supply.  And farmers will no doubt continue to sell water to Phoenix and other Arizona cities.
For the Hohokam, the capital and energy needed to acquire their water was as visible as the sweat on their backs. Archeologists estimate it took nearly a million person-days of human labor to construct just the trunk lines of one of the Hohokam’s major canal systems.  That’s equivalent to 2,740 people working seven days a week for a year.  And that’s not counting maintenance and repair.
 
For modern Phoenicians, by contrast, abundant water arrives at their doorsteps cheap enough to irrigate big lawns and fill swimming pools – arguably proof of modern water management’s success.
 
And maybe this is the defining difference between the two cultures’ relationship with water: for the Hohokam, visible costs and the hard reality of water’s limits, while for the Phoenicians, hidden costs and an illusion of plenty.
 
So which culture will win the endurance test?
 
We’ll find out by 3012, at the latest.

Census and Experts Confirm Death of Sprawl in US

By Warren Karlenzig, posted Apr 10, 2012:

Originally posted at Common Current.

The United States has reached an historic moment. The exurban development explosion that defined national growth during the past two decades has come to a screeching halt, according to the latest US Census figures. Only 1 of the 100 highest-growth US communities of 2006—all of them in sprawled areas—reported a significant population gain in 2011, prompting Yale economist Robert Shiller to predict suburbs overall may not see growth “during our lifetimes.”

We are simultaneously witnessing the decline of the economic sectors enabled by hypergrowth development: strip malls and massive shopping centers, SUVs and McMansions.  The end of exurban population growth has been accompanied by steep economic decline in real estate value, triggering a loss of spending not only in construction, but also home improvement (Home Depot, Best Buy) and numerous associated retail sectors that were banking on the long-term rising fortunes of “Boomburbs.”

The fate of these communities has been so dire that for the first time in the United States suburbs now have greater poverty than cities.

In 2009, I attributed the financial crash in these car-based communities to economic factors perpetrated by the higher gas prices that had first started showing impacts in late 2006 and peaked in 2008. Others including The Brookings Institution’s Christopher Leinberger, and William Frey, along with NRDC’s Kaid Benfield have pointed to longer term demographic shifts and societal desires toward renting in denser mixed-use neighborhoods. The looming specter of excess greenhouse gases may also be playing a role in the marked reduction of driving among younger Americans (16-39 year olds), who increasingly prefer to live where they can walk or bike to their local store, school or café.

The “Death of Sprawl” chapter I wrote that was published by the Post Carbon Institute in 2009 (and in the Post Carbon Reader in 2010) provided a case study on Victorville, California. Located 75 miles outside Los Angeles, Victorville’s rise and crash epitomized the hangover of the go-go sprawl era.

During the financial system’s Derivative Daze, Victorville grew from 64,000 in 2000 to more than 108,000 by 2005: no-money-down-housing developments and “liar loans” fueled speculative investments that pumped up the desert city’s average home value to almost $350,000. The large numbers of workers that moved to Victorville had to commute long hours before dawn and after dark to get to work in Los Angeles, without the benefit of local public transit. There are still few options for those who wish to walk or bicycle to stores, jobs, schools or local amenities, and the average near 100 degree summer temperatures make such endeavors foolhardy.

 

When gas prices began to go up in 2006, real estate sales in the region began to dry up as people ran for the exits. As the doors slammed shut, foreclosures in California’s Inland Empire (Victorville and other parts of California’s sprawling San Bernardino and Riverside counties), Las Vegas and Florida began to trigger a nationwide real estate meltdown. To stick with our illustration, Victorville houses plummeted from an average of nearly $350,000 in 2006 to $125,000 by late 2009. Likewise, new home permits in Victorville went from 7964 in 2004-06 down to 739 in 2008-10: a drop of more than tenfold! The average home sale now brings around $110,000, less than a third of 2005-2006 prices.

Institutional investors and homebuyers alike have avoided for the past five years the nation’s scores of Victorvilles; the new data and pronouncements by experts such as Shiller, author of The S&P/Case-Shiller Home Price Index, likely put the last nails in the coffin of speculative, auto-dependant sprawl.

Recent US Census data confirms that the future of the United States is no longer about an economy based on the false and dangerous pretenses of unfettered greenfield development, with its unhealthy and climate-destructive sprawl-scape of fast food, big box retail and freeway-bred exurbs. National policies and investments should strengthen and improve existing cities and suburbs, including transit infrastructure, building retrofitting, clean energy, walkability, bicycle networks and neighborhood redesign–all areas where quality local job and community engagement opportunities can flourish.

We’ve known for some time that planning for more sustainable metros, both cities and suburbs, makes better sense in terms of protecting local food, water and land resources, as well as in reducing pollution and carbon emissions. Now we know that such actions have been proven to make much better short-term economic sense, while acting as tangible investments for the long term.

Warren Karlenzig is president of Common Current, a global consultancy for sustainable urban planning and development.

 

Talking Happiness

By Richard Heinberg, posted Apr 5, 2012:

 

I’m writing this on a plane, on my way home from four conferences on the “new economy.” Clearly there is rapidly growing interest in this subject, due in no small degree to the ongoing disintegration, and worsening dysfunction, of our present economic system. All four conferences (one in Berkeley; one in Tarrytown, New York; one at Harvard, organized by students; and one at the United Nations) were interesting and important, but the UN conference on “High Level Meeting on Wellbeing and Happiness: Defining a New Economic Paradigm,” organized by the nation of Bhutan, was especially noteworthy.

That conference encompassed four days, of which the first, third, and fourth were working sessions tasked with producing an agenda and preliminary report. The second day was a more public event (still by invitation) in which I participated. Six hundred dignitaries, scholars, and NGO representatives crowded into a windowless UN meeting hall for six hours of speeches, comments, and questions—all focused on the government of Bhutan’s initiative to replace or augment GDP as a measure of national and global economic progress.
 
Bhutan has already done impressive work along these lines, beginning in the early 1970s, developing a “Gross National Happiness” indicator and continuing to refine methods of measuring personal, social, and environmental well-being. This tiny Himalayan, mostly Buddhist, kingdom of 800,000 still has a low per capita GDP, but its citizens are among the happiest in the world. The current King and Prime Minister are evidently unwilling to rest on these accomplishments; they have set their sights on global happiness.
 
The conference featured opening statements from UN Secretary General Ban Ki Moon, the President of the UN General Assembly, the President of Costa Rica, and official representatives of France, Australia, the UK, Israel, Morocco, and Thailand. Renowned economists Jeffrey Sachs and Joseph Stiglitz spoke of the limitations and perversity of GDP and of recent efforts to develop alternatives. All the speakers seemed delighted to endorse the notion that happiness is a desirable societal goal.
 
Fittingly, the boldest and most eloquent statement of the day came from Lyonchhen Jigmi Thinley, the Prime Minister of Bhutan, who observed that GDP growth is killing the planet, destroying our future, and making humanity less equitable and, on the whole, more miserable. This framing of the situation placed him on one side of a subtle (and in fact never clearly articulated) divide that persisted throughout the conference—a schism between those who see GDP growth as fine and necessary, especially for poor nations, though needing supplementation with growth in other dimensions; and those who see further GDP expansion as unattainable or undesirable.
 
The inadequacy of the former, ostensibly more moderate, position was revealed in a presentation late in the morning by Mathis Wackernagel of the Global Footprint Network, who pointed out that humanity is already using resources at one-and-a-half times the rate Earth can regenerate them annually (the temporary imbalance being enabled by a one-time-only drawdown of fossil fuels). This being the case, then presumably our global consumption of resources—and hence the global economy itself—must actually shrink substantially if we are to avert the catastrophic consequences of ecological overshoot.
 
The strategy of reining in population as a way to reduce total consumption without as much per capita sacrifice was not mentioned by anyone during the day.
 
Neither did anyone in the room explicitly call for de-growth. There were plenty of expressions of disgust at overconsumption in rich nations such as the US, and at the predatory behavior of the financial elite (the now-infamous “one percent”). But most speakers hewed to a politically safe notion that less-industrialized nations need more GDP growth in order to eradicate poverty.
 
Vandana Shiva of India garnered hoots and vigorous hand-claps for her insistence that farmers and the food system be put front and center in economic reform, pointing out that agriculture is responsible for 75 percent of the ongoing loss of biodiversity on the planet, and that the majority of people in many poor countries are farmers who are being forced by global agribusiness either to go into debt to adopt expensive soil-killing technologies, or to give up and move to the city (or, in the worst instance, commit suicide, as a quarter-million Indian farmers have done).
 
Prince Charles of Great Britain put in an appearance by video recording, eloquently ticking off the ecological and social crises brought on by industrial growth and calling for development along other lines.
 
Spiritual leaders of several faiths chimed in to point out that happiness, as a state of mind, can be actively cultivated regardless of one’s material circumstances.
 
Many mentions were made of the Rio Plus 20 meetings set to take place later this year, where nations will propose and agree upon strategies to expand the “green economy.” While all speakers seemed eager to include happiness and well-being economic indicators in those discussions, the prospects are not good. It’s late in the game: the Rio agenda is already largely set.
 
Further, that agenda may actually be regressive in its implications for people and planet. I had recently come from a meeting of indigenous leaders and ecological economists, most of whom are actively preparing for the Rio gatherings. The word from the indigenous leaders is that the “green economy” (as designed and marketed by the world’s wealthy nations and big corporations) will actually consist mostly of a monetization or commodification of nature’s services, such as carbon sequestration by forests. Indigenous communities may in some instances benefit from payments for forest protection, but in the end the result will likely be competition and division among native communities, along with an explosion of trading in carbon derivatives—which will merely further enrich the “one percent.”
 
There are likely to be impediments to the realization of a global happiness and well-being agenda. As one of the speakers pointed out, unless all nations make substantial new investments in surveys and the management of statistics, the adoption of Gross National Happiness targets and metrics will be practically meaningless. I might further mention (though no one did so publicly at the conference) that governments will find it nearly impossible to reduce their manic pursuit of GDP until they find another way of financing their operations (since declining GDP means a declining tax base).
 
A Chinese delegate offered a highly nuanced and somewhat admonitory official comment, while a handful of EU official representatives made somewhat more encouraging noises. But notably absent was any official representative of, or statement from, the United States. One can only imagine the puzzlement among State Department functionaries at the notion of Gross National Happiness, or the hoots of derisive laughter in Congress should the issue ever arrive there for consideration.
 
The next steps following from the conference include a report to the Secretary General, which will be forwarded to all UN member nations; the establishment of an ongoing commission to further study the development of a new economic paradigm; and the building of a global new-economy movement that includes youth organizations and a wide range of NGOs.
 
I had the sense of being at a milestone event, at which a couple of heads of state and several high-level national government representatives were saying almost exactly what ecological economists like Herman Daly have been telling us for years. Here is a nation—a tiny one, but a nation nonetheless—making its voice heard in the international community, calling for an end to the monomaniacal pursuit of GDP growth above all else. Despite the difficulties ahead, this is a cause worth celebrating and supporting. Once it becomes clear that further GDP growth will be ever more difficult to achieve, national leaders will desperately need ways to make life tolerable for their increasingly restive constituents. It’s plain that environmental, psychological, and social well-being must be the new goal, and we can thank the government of Bhutan for realizing this and blazing a trail that others may follow.
 
image credit: Stan Honda, AFP

Bill McKibben on Keystone, Congress, and Big-Oil Money

By Elizabeth Kolbert, posted Apr 2, 2012:

Author/activist Bill McKibben says environmentalists cannot ease up after their recent victory in the fight against the Keystone XL pipeline. In a conversation with Yale Environment 360 contributor Elizabeth Kolbert, he talks about what he’s learned about the power of the fossil fuel industry — and why the battle over Keystone is far from over.
 

by Elizabeth Kolbert

Bill McKibben is a patient man. Twenty-three years ago, he published The End of Nature, one of the first books written for a general audience that laid out the issue of global warming. Nearly two decades later, after the U.S. and the international community continued to fail to take action, he moved from journalist to activist, founding 350.org, which has grown into a global movement to solve the challenge of climate change. In January, he and 350.org won a surprising — if short-term — victory when President Obama put the controversial Keystone XL oil pipeline on hold pending further review.

Bill McKibben

Last week, McKibben sat down with Yale Environment 360 contributing writer Elizabeth Kolbert to talk about the Keystone project and about what the pipeline battle has taught him about how Washington, D.C., operates. In a wide-ranging discussion, he explained why he believes environmentalists only win temporary victories, why activists must keep up pressure on the Obama administration, and why he’s concerned about the president’s “all-of-the-above” energy strategy. One thing he was unprepared for, McKibben said, was the true extent of the influence the fossil fuel industry’s campaign money has on Congress and how difficult it will be to end federal oil and gas subsidies.

“It’s as if the politicians are sort of pillows in front of the fossil fuel industry,” he told Kolbert. “And you spend all your time going after them and don’t get at the guys behind them.”

Elizabeth Kolbert: You led the fight against the Keystone XL pipelinethis summer and fall and the Obama Administration rejected the application for construction of the northern leg of the pipeline. But just a few days ago the president announced that he was expediting the permitting process for the southern leg. So what’s going on?

Bill McKibben: Well, part of it is just a little bit of the rooster taking credit for the dawn — you know, they didn’t need a permit from the president for the southern leg, unfortunately. It’s a great shame, and we’re working hard with our friends in Texas and Oklahoma to try and block it. And it was also a great shame to see the way in which the president did it. It has to make one have some foreboding. If he’s really as completely into pipelines as he was saying, that increases the odds that eventually he’ll approve the [Canadian] border crossing.

Kolbert: Back in November when the administration turned down the application for the pipeline you wrote to opponents of the pipeline, “Big news we won, you won.” Now was it a win or was it just a temporary reprieve?

McKibben: Well, as I said in that letter, and as I’ve said probably 5,000 times since, all environmentalists ever win is temporary victories. That’s the only kind we get. And this one may be more temporary even than most. We’ll see. We’ll see some time before or after the election. I mean, clearly, if Mitt Romney wins the election, then definitely they get to build a pipeline. And if Barack Obama wins they may get to build it. He says he’ll make a decision in 2013. And the Senate may push him to do it sooner. Who knows? We barely won the fight we had in the Senate a few weeks ago, a couple of votes. But we sent 800,000 messages to the Senate. It was the biggest burst of concentrated environmental activism in many years.

Kolbert: You did get out an extraordinary number of signatures, and you got out an extraordinary number of bodies, and you got an extraordinary number of people who got arrested. And yet we still see this.

McKibben: Well, yes. So this is the thing, and it’s instructive. It has been for me. I mean we’ve had hundreds of thousands, millions of people engaged in this fight, and yet it’s still almost impossible even to win small temporary victories. And what it demonstrates is the unbelievable power of the fossil fuel industry.

I mean, I’m not used to Washington so it almost — it didn’t shock me, I’m not that naïve — but it startled me that they took a vote in the House of Representatives to speed up construction of this thing. And 234 people voted 

Even if we manage to stop this pipeline, it doesn’t stop global warming – not even anywhere close.”

for it. And they’ve taken $42 million from the fossil fuel industry. And you can predict exactly how people are going to vote by how much money they took. The first Democrat in the Senate to vote for it, to demand Keystone, was Joe Manchin from West Virginia. He’s taken more money from the fossil fuel industry than any other Democrat. I mean, it’s almost mathematical, you know. It’s elegant in its mathematical precision. And I hadn’t quite understood that.

Kolbert: Journalists are not known for their romantic view of American politics. But in the last few years, you’ve sort of made this transition from journalist to activist that, as you’ve pointed out, you didn’t even expect yourself to make. What have you learned in the process about politics?

McKibben: Well, it’s money-soaked, and so without enormous effort nothing happens. It’s not clear to me that we aren’t kind of, when we take on these political fights, aren’t kind of punching ourselves out. It’s as if the politicians are sort of pillows in front of the fossil fuel industry. And you spend all your time going after them and don’t get at the guys behind them. And I think more and more we’re going to have to try and engage the fossil fuel industry itself. So beginning this year we need to really go after the subsidies that they get paid. It’s not going to end the fossil fuel industry. Even without them, they’re still by far the richest industry on Earth, whatever. But at least it’s a way to start challenging them head on. Because they’re very much definitely not used to losing. And the most interesting thing with the Keystone stuff, in a way, was that they lost temporarily anyway. And it just drove them nuts. I mean, they’re “take no prisoners.”

Kolbert: So is that the next step for opponents of the pipeline? What is the next step?

McKibben: It’s not clear, at least not clear to me, what the next political stage of it is. But opponents of the pipeline are mostly people who are engaged in this larger fight about climate. And so one of the things that’s next for us is just remembering that even if we manage to stop this pipeline, it doesn’t really stop global warming. Not even anywhere close. It’s one skirmish in a huge, huge war. I guess what’s next, in a sense, is trying to figure out how you go from playing defense to playing offense. And this fight about subsidies is one way to do that.

Kolbert: I read an online debate you did on the Huffington Post with Ezra Levant, who had made this argument, which I’ve actually had people tell me, that getting oil from the Canadian tar sands is the ethical alternative to buying oil from the OPEC dictators. And one of the charges that he made, and I just quote, is “if the anti oil sands lobbyists who pressured Barack Obama to reject the Keystone pipeline proposal really cared about carbon emissions they’d have directed all their energy to campaign against coal power instead.” 

McKibben: The point is we have to somehow manage to beat all this stuff. There’s too much carbon — way too much carbon in those oil sands, and there’s even more carbon in the coal fields. Which is why we’re deeply engaged in this fight to prevent these coal ports from being built on the West Coast. I was just out in Bellingham [in Washington state] working on that. It’s why, in Kosovo, we’re in the middle of this big fight to stop this huge coal-fired power plant they want to build. And in South Africa. And it’s why we’re taking on subsidy stuff all over the world. So in that sense, he’s completely right. But it’s an absurd defense of the tar sands. It’s like, well, there’s a lot of other carbon somewhere else. Yes there is. And we’ll fight that, too.

Kolbert: Obama and his team are calling his energy strategy “all of the above.” There’s a piece in the [New York] Times today about how the Republicans are indigant because they point out that was their energy strategy.

McKibben: I said some place the other day, you know, “all of the above” doesn’t strike me as a particularly intellectually serious strategy. What if someone running for president says, “I have an all of the above foreign policy? I like all countries equally.” Everyone would say, “You do? Really? North Korea and England are sort of the same, in the same category?” So saying we’re going to do a lot of oil drilling, and open up every coal seam we can find, and we’ll have some solar panels, doesn’t engage really with the physics and chemistry of climate change.

Kolbert: I mean does Obama even have an energy strategy at this point?

McKibben: Well, at the moment, like all presidents, he has one — his entire being is focused on re-election… And to this degree one has to sympathize: 

Everyone, me included, made the mistake of relaxing after 2008.”

The oil industry, these guys are pouring everything they have at him. The Koch brothers the other day said, “We’re going to spend $200 million on the election.” if you’re Barack Obama’s campaign guys, that’s terrifying to hear. And to that degree, one understands I suppose the fix he’s in.

But it is sad, in part because in the last campaign, when Hillary Clinton and others said, “We have to have a gas tax holiday to deal with rising gas prices,” Barack Obama was the one guy who said, “You know what, that’s a stupid idea, let’s don’t do it.” And he actually benefited politically from it. Because he talked to Americans as if they were adults on all of this. And I think we’re capable of having that conversation.

Kolbert: When I heard about the decision the other day that [the administration was] going to expedite those permits whether or not they actually needed them, I thought it sounded like a classic move of a politician who was taking the environmental vote for granted, that these people don’t have anywhere to go. I mean, is he right?

Bill McKibben arrest outside the White HouseMcKibben: Well, you know, it’s going to be hard to gin up the “Environmentalists for Romney” campaign… The calculations they were making in the fall, I’m sure, when they were responsive on Keystone, was, “We need people to be enthusiastic.” It’s a different stage now, and he’s campaigning. And the true ugliness of the GOP guys is clearer probably than it was on these issues. The thing that we all have to get out of the habit of is thinking, “Elect the right guy and we’re OK.” But if you elect the right guy then the definition of the right guy is, “He might listen to you if you put enough pressure on him,” OK? You could put endless pressure on Rick Santorum and nothing would happen. This is a guy who is campaigning with a piece of shale rock as his prop.

But the point is Election Day is no more important a political day than any other day on the calendar. It’s important, but so is every other day when you’ve got to get up and push whoever it is as hard as you can. And on

Natural gas was going to a bridge fuel… It turns out that the math doesn’t work.”

Election Day I think the main thing is trying to find someone who might be pushable. Everybody made the mistake, me included, of relaxing after 2008. Which at least in the case of energy was a mistake. Because, trust me on this, the oil industry and the coal industry didn’t relax for a minute. They were there every moment of every day. With the ever-present and extremely powerful profit motive to keep them focused and concentrated on their business.

Kolbert: Another big issue which I’m sure you get asked about all the time in the energy climate realm nowadays is fracking. And you hear a lot of talk about how natural gas could be a bridge fuel that’s going to lead us away from coal and toward renewable. What are your thoughts?

McKibben: Three or four years ago there was a certain part of me that was hopeful that we were going to find a lot of natural gas, and it was going to be a bridge fuel. It just turns out that the math doesn’t work. You’ve got this problem — a big problem, it looks like — with these fugitive methane emissions. We don’t know exactly how much. But even if you just converted the whole world to natural gas… The IEA [International Energy Agency] ran what they called a “Golden Age of Gas” scenario, and it had all of us off coal or something by 2025 and we’re all on gas… I can’t remember all the details, but it was a gas-run world. And the atmosphere then was still 660 parts per million C02. What we actually need is a bridge away from fossil fuels, or maybe we should dispense with the “bridge” metaphor and just nerve ourselves up to take the jump across the chasm into the new world.

Kolbert: I certainly don’t need to tell you, we just had a winter, in the Northeast at least, without snow, and now we’ve had this really weird June-in-March heat wave. And I saw on the 350.org website that you’re planning an event in May on the theme, “Time to connect the dots.” Do you think people are starting to connect the dots?

McKibben: I do. The polling shows that by six or seven percent increase this year in Americans who believe in and take climate change seriously. It’s back up near two-thirds or something. And the biggest reason that people cite is extreme weather, which we’ve had a lot of. Last year had more multi- 

We can’t get anywhere near [a global agreement] as long as the fossil fuel industry exerts the power it does.”

billion dollar weather disasters than any year in American history. So this last week it’s been just insane. If you’re looking at the numbers instead of just kind of enjoying the heat, it’s not just creepy. It’s wild. I mean there’s no way that you should be breaking old temperature records by 30 degrees? There’s no way that places should be, you know, the record low for the day is higher than the record high previously for the date? There’s never been numbers anything like this… And this “connect the dots” day is important because our tendency is to think of these things as a one-off. It’s just how our psychology is.

Kolbert: In a couple months, there’s going to be another UN summit in Rio. But it seems like people have basically given up at this point on international agreements. Have you?

McKibben: The same problem as in this country. We do need an international framework because this is a global problem and eventually we’re going to have to solve it with a global agreement. But we can’t get anywhere near it as long as the fossil-fuel industry exerts the power it does in one national capital after another. That’s what happens. I mean you get to Copenhagen and just everybody, every leader who’s there knows, “I can’t get this deal through, you know, whatever system I have — my politburo, my parliament, my congress — even if I want to do it because there’s too much power in the fossil fuel industry.” So all we can try to do is just kind of keep this creaking thing alive in case we make some real political progress… 

The thing we can’t let it do is be a distraction from the actual work of movement building. We can’t go to these things expecting that that’s where the problems will be solved… I mean I remember being at Kyoto and at the end of it the lobbyist for the oil industry — they’d actually done something in Kyoto, they actually agreed to some actual agreement — and this lobbyist said, “I can’t wait to get back to the Congress where we have these things under control.” I thought he was blowing smoke, but he was absolutely right. That’s how it works.

Kolbert: Wow, that’s a great line. The failure of the U.S., in particular, to confront climate change is sometimes cited as an indictment of the country’s major environmental groups. And your own turn to activism could also be interpreted as an indictment of those groups. Do you think that that’s fair? Do they deserve some of the blame?

McKibben: Who knows? I’m not a good enough historian. But I know that when we had this Keystone fight, everybody joined in. And it was really fun to watch and fun to work with. And everybody did the parts that they were

If you were a betting person, I’m afraid you’d be wise to bet we might not pull this out.”

good at. So we get to the Senate and then people from NRDC [Natural Resources Defense Council] and LCV [League of Conservation Voters] and the Sierra Club and National Wildlife Federation — man, they’re good at getting into senator’s offices and giving them briefings and showing them PowerPoints. And, I mean, not only am I not good at that, I’d be terrible at it. I am not good at kind of pretending to respect people I really don’t – [laugh] all kinds of skills that I’m afraid it requires.

Kolbert: So it’s been more than 20 years since George Bush Sr. signed the “Framework Convention on Climate Change.” And by that point already your own book, The End of Nature, which had really introduced climate change to a lot of people, was already a couple years old. But as you put it recently, we’re no closer to dealing with climate change than we were in the late 1980s. So 23 years after the publication of The End of Nature, what gives you any reason, any optimism at this point, that it is going to get dealt with?

McKibben: Well, I’m not all convinced it is going to get dealt with. You know, you wrote that we seem to be on kind of a suicide mission as a civilization. And that case is easier to make than the case that we’re going to figure out how to deal with it. So I don’t know. I’m very hopeful that in the last few years we’ve finally built a big global movement that gets bigger all the time that didn’t exist before. And I’m hopeful that we’re getting closer to the nub of the problem.

We spent 20 years basically working on the model — let’s have our great scientists go talk to political leaders and tell them the problem, and then we’ll do something. This was a perfectly good model for what to do, but what it didn’t reckon with was the fact that while they were talking, the fossil fuel industry would be bellowing in the other ear — just bellowing this toxic mix of threats and promises and whatever else. I think we’re at the point where we kind of understand what the problem is in a way that we didn’t. And we’ll see if we can take it on… Mother Nature provides an almost endless series now of teachable moments. We’ll see if we can take advantage of them.

If you were a betting person, I’m afraid you’d be wise to bet that we might not pull this out. But I just don’t think it’s a bet you’re allowed to make. I think the only thing that a morally awake person can do when the worst thing that ever happened is happening is try and figure out how to change the odds — with not any guarantee that it’s all going to come out OK. Because it may not. I mean it clearly isn’t going to come out 100 percent OK. We’ve already had big losses and they will get worse. Whether or not we can stop short of complete catastrophe, we’ll find out. And we won’t find out in a hundred years, we’ll find out rather more quickly than that. Our lifetimes will be more than long enough to see whether or not we actually grabbed hold of this problem or not.

I guess the only other thing is just that this, what’s the alternative? [laugh] Existential despair just seems like a kind of poor strategy in many ways.

Originally published at Yale Environment 360.

 

The Peak Oil Crisis: Our Natural Gas Glut

By Tom Whipple, posted Mar 29, 2012:

Natural gas burnerWith global warming driving down the demand for natural gas as a home heating fuel and natural gas drillers producing record amounts, an oversupply situation has developed quickly. Stocks of natural gas are rising. As a result natural gas prices have fallen way below profitability and drillers are scrambling to cut back production.

The natural gas surplus that is in our underground storage facilities may be full before fall, forcing producers to slow production until a market for the gas can be found. There are only so many things we can do with an excess of natural gas: you can export it; burn it in power plants; turn it into other products in petrochemical plants; increase its use in vehicles; and burn it to heat buildings.
 
Given the pace at which temperatures are rising, less, not more, home consumption seems likely so only one of these uses can be accomplished quickly – burning it in electricity generating plants. As the price of natural gas becomes cheaper, power companies are already increasing its share of the fuels used for power generation and are closing older coal-fired plants. Wherever prices are favorable we will likely see more of this in the immediate future.
The other major ways to increase natural gas consumption will require considerable investment and take many years to implement. U.S. natural gas is so cheap by world standards that some see large profits in exporting natural gas to energy-deficit regions such as Japan, Korea, Europe, and even the Caribbean islands. To do this on a large scale will require investments in liquefaction plants that will turn natural gas in liquid which can be transported economically. A backlash to this idea is already arising from those who believe we should be using the energy at home and not be shipping it at rock bottom prices to other countries.
 
Building more petrochemical plants to convert the natural gas surplus into plastics and other materials seems to be under serious consideration. In recent years this business has been shifting to the Middle East to take advantage of the cheap natural gas prices, but now that U.S. prices have fallen so low, the large investments required seem more attractive.

We now get to transportation fuels which is a very interesting case. Natural gas used in transportation comes in two very different forms – compressed and liquefied. The compressed version is rather simple to distribute and use. Compress natural gas directly from the distribution pipe into a suitably equipped vehicle and away you go. The big drawback to compressed natural gas (CNG) vehicles is that it requires a lot of storage space on a truck or car to go any distance. Nothing, as yet, can touch a good tankful of diesel for energy density – the vehicle range you can squeeze out of the tank.
 
A partial solution to this problem is to use liquefied natural gas (LNG) rather than compressed natural gas as a fuel. A tank of LNG will give you 2.4 times the range of a similar sized tank of compressed gas thereby making it practical for cross country vehicles. While a CNG truck might only go 100 miles, an LNG one could go 240 miles between fill ups. LNG, however, has its own problems. To make it you have to lower the temperature to -260oF and then keep it that way until it goes into the vehicle’s engine.
When LNG is made for shipping between countries on massive ships, it is cooled in liquefaction plants that usually cost $2-3 billion and are spread over hundreds or thousands of acres. Not particularly practical for a truck stop! Once you get the gas down to -260oF you have to keep it in special cryogenic tanks and be able to handle the problem that a small amount is constantly boiling off in a gaseous state. It can be moved in special tanker trucks, but not by pipeline.
 
With CNG not containing enough energy to move large trucks and LNG expensive and hard to make and handle, there has been very little movement towards natural gas propelled trucks until recently. However, this is changing rapidly. With diesel fuel now pushing $4.50 a gallon in many parts of the country and showing every sign of moving to $5 later this year, the circa $2 a gallon cheaper LNG is irresistible for long-haul truck operators who are burning some 20,000-40,000 gallons per truck each year.
 
Nearly all the major truck manufactures are now selling trucks that run on LNG so that the payback time for the additional cost of an LNG engine is now said to be less than a year. The second problem of widespread adoption of LNG trucks is getting LNG to truck stops across the country. A major program to make this happen is underway. Starting with using LNG at the ports of Los Angles and Long Beach where LNG has been widely adopted as a way to reducing pollution, LNG stations have been established along the route from Southern California to Las Vegas. Plans are underway to install another 250 LNG stations along America’s trucking routes in the next few years. If the price spread between diesel and LNG holds up or increases, it seems likely that the use of LNG for large trucks will become widespread by the end of the decade.
 
Much of this change will come from the development of small-scale LNG plants that can produce 10,000-30,000 gallons per day and only cost in the range of $2-3 million making them affordable for deployment along the nation’s trucking routes.
 
While all this sounds nice – replacing at least some of the 35 billion gallons of diesel burned on the nation’s highways each year with a domestic source of energy while making some reductions in air pollution and possibly greenhouse gases – natural gas remains a finite source of energy. Production is already dropping in the well-hyped shale gas fields around Ft Worth and in Louisiana. While there is still much gas-bearing shale left to drill and frack, it is not going to continue much longer when shale gas costs $6 or so to produce and sells for $2.
 
The gas glut story still has a way to play out.
 
Originally published March 28, 2012 at Falls Church News-Press
 

Image via shutterstock

Bill McKibben: On May 5, join me in connecting the dots on the climate crisis

By Bill McKibben, posted Mar 26, 2012:

dot to dot earth

Across the planet now we see ever more flooding, ever more drought, ever more storms. People are dying, communities are being wrecked — the impacts we’re already witnessing from climate change are unlike anything we have seen before.

But because the globe is so big, it’s hard for most people to see that it’s all connected. That’s why, on May 5, all over the earth, we will Connect the Dots.

In places from drought-stricken Mongolia to flood-stricken Thailand, from fire-ravaged Australia to Himalayan communities threatened by glacial melt, we will hold rallies reminding everyone what has happened in our neighborhoods. And at each of those rallies, from Kenya to Canada, from Vietnam to Vermont, someone will be holding a…dot. A huge black dot on a white banner, a “dot” of people holding hands, encircling a field where crops have dried up, a dot made of fabric and the picture taken from above – you get the idea. We’ll share the images from around the world and give climate change a human face – we’ll hold up a mirror to the planet and force people to come face to face with the ravages of climate change.

Anyone and everyone can participate in this day.

Many of us do not live in Texas, the Philippines, or Ethiopia – places deeply affected by climate impacts. For those of us not in directly-impacted communities, there are countless ways to stand in solidarity with those on the front-lines of the climate crisis: some people will be giving presentations in their communities about how to connect the dots. Others will do projects to demonstrate what sorts of climate impacts we can expect if the crisis is left unchecked. And still others of us will express our indignation to local media and politicians for failing to connect the dots in their coverage of “natural disasters.”

However you choose to participate, your voice is needed in this fight — and you can sign up to host a local event here: www.climatedots.org/start

(For more general info about the day, check out our new website here: www.climatedots.org)

350.org has done giant global days of action before (over the last three years we’ve helped coordinate over 15,000 events in 188 countries) and they’re always beautiful moments when our movement stands together. This year we’ll use that same captivating tactic to draw attention to the struggles of our friends around the world – the communities already feeling the harsh impacts of climate change.

These will be beautiful events, we’re sure. But they will also have an edge.

It’s right that we get a little angry at those forces causing this problem. The fossil fuel industry is at fault, and we have to make that clear. Our crew at350.org will work hard to connect all these dots – literally – and weave them together to create a potent call to action, and we will channel that call directly to the people who need to hear it most.

May 5 is coming soon; we need to work rapidly. Because climate change is bearing down on us, and we simply can’t wait.

The world needs to understand what’s happening, and you’re the people who can tell them.

Please join us – on May 5th, we need you to send the most important alarm humanity has ever heard.

Reflections on a Thirsty Planet for World Water Day

By Sandra Postel, posted Mar 26, 2012:

Dollar photo by Derek and Kristi

The Mahanadi River in Orissa, India, ebbs to a trickle during the dry season. Photo credit: James P. Blair.

Water, I have learned, means different things to different people.

To the novelist D. H. Lawrence, water was mysterious.  It is “hydrogen two parts, oxygen one, but there is also a third thing, that makes it water and nobody knows what that is.”
 
To the anthropologist Loren Eiseley, water was supernatural: “If there is magic on this planet, it is contained in water.”
 
And to the ancient Greek poet Pindar, water was quite simply “the best of all things.”
 
But for millions of people in the developing world – especially women and girls – water means a daily struggle to trek to a source, carry fifty pounds of it home, and then hope against hope that drinking it won’t make a family member sick or die.
 
For millions of poor farmers, water means the difference between hunger and a full belly, and between a well-nourished child and one stunted from malnutrition.  Without a way to access irrigation water or store enough rainwater in the soil, the long dry season is often a trying time of one meal a day.
 
For river people around the world, who rely on fish for protein and income, water is home to the aquatic life that sustains them, day in and day out.
 
Water is essential to all of life, and to all of our lives.  And so it is fitting that once a year, on March 22, the world takes a moment to celebrate and contemplate this magical, mysterious, essential, life-giving compound called H2O.
 
The idea for an International World Water Day crystallized at the 1992 Earth Summit in Rio de Janeiro, and the next year, the United Nations (UN) General Assembly designated March 22, 1993 as the first World Water Day.
 
Every year since then the UN has selected a different water theme for the day.  Past themes have focused on water and cities, culture, sanitation, pollution, disasters and trans-boundary cooperation. This year’s theme is water and food security, with the tag line: “the world is thirsty because we are hungry.”
 
For me, this year’s theme is the 800-pound gorilla of water challenges.  Agriculture accounts for the lion’s share of global water consumption.  We “eat” at least a thousand times more water than we drink. The thirsty business of growing crops – in the ways and places that we do to meet the demands of seven billion people – is the primary reason earth’s rivers are running dry, aquifers are being depleted, and lakes are shrinking before our eyes.
 
Demographers project that the world will add another one billion people by 2025.  That means, between now and then, an additional 210,000 people will join the global dinner table every night.  At the same time, many millions will achieve incomes sufficient to add more meat to their diets.  Because it takes water to grow the grain to feed the cows, pigs and chickens, this means the water footprint of that global dinner table could rise considerably faster than population growth.
 
I ran some numbers.  Under some quite conservative assumptions, it could take an additional 1,314 billion cubic meters of water per year – equal to the annual flow of 73 Colorado rivers – to meet the world’s dietary needs in 2025.
 
That’s a disheartening prospect. Where in the world can we find affordable farm water equivalent to 73 Colorado Rivers without hastening the depletion of rivers, lakes and aquifers?
 
But maybe that’s not the right question.  If the goal is to meet the world’s food needs sustainably, the question we should ask is, how do we provide healthy diets for eight billion people without going deeper into water debt?
 
Now that’s a horse of a different color.  And that’s the challenge I address in my five-point plan of action for World Water Day 2012:
 
  • First, provide incentives to farmers to double water productivity – that is, to get more crop per drop.  A host of measures – from more efficient irrigation systems to conserving soil moisture to growing crops more appropriate to the local climate – can help do this.
  • Second, motivate the top billion consumers to eat less meat. We’re now feeding 35 percent of the global grain harvest to livestock.  Instead of three meat servings a day, maybe try one a day.
  • Third, restore degraded rangelands through managed intensive grazing, which can increase both carbon and water storage in soils.  Move from grain-fed to grass-fed beef, saving croplands to feed people and using rangelands for sustainable meat production.
  • Fourth, expand access to affordable, small-scale irrigation in the hunger zones of Sub-Saharan Africa and South Asia.  Along with harvesting local rainwater and storing moisture in the soil, affordable irrigation systems designed for the dollar-a-day farmer can boost food security and incomes among the poorest farm families.
  • And fifth, reduce food waste.  From farm fields to dinner plates, about one-third of the global food supply is wasted – which means the water consumed to produce that food is wasted, too.
Taken together, I believe these actions could feed eight billion people sustainably in 2025.
 
So let’s get started.
 
Originally published March 22, 2012 at National Geographic

The Peak Oil Crisis: Parsing the Bakken

By Tom Whipple, posted Mar 22, 2012:

Bakken oil wellThere is a lot of talk recently that "tight oil" as found in North Dakota’s Bakken and other shales in the Southwest will save America from stagnant global oil production and increasing gasoline prices. The current glut of natural gas which has brought prices to a 10-year low has forced companies drilling for gas to curtail their activity and move the crews and rigs to North Dakota and Texas where money can still be made in drilling for shale oil. New well completions in North Dakota are expected to surge again this year.

A recent pronouncement by a noted analyst says that America’s "tight oil" (shale oil) production could reach 3 million barrels a day (b/d) by 2020 which will again put us among the top few global oil producers. On digging a little deeper into the issue, however, many have a problem with all the optimism.
 
In January 2012, oil production in North Dakota hit 546,000 b/d, up from 342,000 b/d in January 2011, 253,000 b/d in 2010, and 187,000 b/d in 2009. With more drilling crews on the way, it is easy to see why optimists are projecting that millions of barrels per day will come from the various US shale deposits by the end of the decade. If we were talking about conventional oil coming from conventional oil fields, the optimists would probably be right — but we aren’t.
 
It took the production from 6,617 wells to produce North Dakota’s 546,000 b/d in January. Divide the daily production by the number of wells and you get an astoundingly low 82 b/d from each well. I say "astounding" because a good new offshore well can do 50,000 b/d. BP’s Macondo well which exploded in the Gulf a couple of years ago was pumping out an estimated 53,000 b/d before it was capped.
 
Now a North Dakota shale oil well is not in the cost class of a deepwater offshore platform which can run into the billions, but they do cost about three times as much as a classic onshore oil well as they first must be drilled down 11,000 feet and then 10,000 horizontally through the oil bearing layer before the fracturing of the rock can take place. The "fracking" involves at least 15 massive pumps that inject water and other chemicals into the well. Take a Google Earth flight over northwestern North Dakota. The fracked wells are hard to miss as there are now about 9,000 of them and they are each the size of a football field.
 
There is still more — fracked wells don’t keep producing very long. Although a few newly fracked wells may start out producing in the vicinity of 1,000 barrels a day, this rate usually falls by 65 percent the first year; 35 percent the second; and another 15 percent the third. Within a few years most wells are producing in the vicinity of 100 b/d or less which is why the state average for January is only 82 b/d despite the addition of 1300 new wells in 2011.

From here on the path ahead seems clear. We seem on course to drill another 2,000 or so in 2012. As long as the price of crude stays up, this pace can continue for a while. The drilling can spread into Montana and Canada until diminishing returns set in. While recently drilled wells may be producing well, the vast bulk of the wells will be close to depletion. While some predict that the Bakken will be producing a million b/d within a few years, it will not stay there long as depletion rates are simply too high.
 
There is a lot more to the U.S. shale oil story, however, than simply the Bakken shales in the upper Midwest. The Eagle Ford shale in southwestern Texas has been drawing considerable attention as a major source of oil and natural gas. However, it is the Monterey shale in southern California that is likely to become the biggest shale oil resource of all. Whereas the Bakken and Eagle Ford shales are estimated to contain about 3.5 million barrels each of recoverable oil, the Monterey shale with 15 billion barrels is 64 percent of the 24 billion barrels estimated to be trapped in U.S. shale formations.
 
While this 24 billion barrel figure sounds impressive to politicians looking for a talking point, it really is only about 9 months’ worth of current global oil consumption.
As we have seen with the Bakken and the various natural gas bearing shales we have been drilling of late, it takes an awful lot of expensive wells and environmental disruption to get the oil out. One estimate of the Energy Returned on Energy Investment (EROEI) for the Bakken shale suggests that the EROEI is six. This means that it may take one oil barrel’s worth of energy to produce six barrels of Bakken shale oil. This is getting very close to the theoretical point at which it really is not worth the effort and all the economic disruption.
 
The aspect of this "energy independence" story that the optimists continue to ignore is that, while oil production from shale may be climbing, depletion of our other sources of oil continues apace. Alaskan oil production is falling rapidly as is shallow offshore production in the Gulf and at least some of the offshore platforms are not turning out to be anywhere near as productive as planned. For its part, the EIA forecasts that U.S. shale oil production will reach a peak of about 1 million b/d around 2020, and deepwater production will increase by about another 500,000 b/d before peaking. This would put total US oil production in 2020 around 6.5 million b/d, far below the current demand of 18 million b/d.
 
A lot of what happens from here on out depends on the direction of oil prices during the rest of the decade. If prices climb substantially above current levels for whatever reason, there will obviously be a major economic contraction followed by a drop in prices. As we saw in 2008, if prices get below cost of production which in the case of shale oil is very high, the industry contracts in the same manner as we are witnessing with shale gas.
 
Shale oil is clearly nothing to bet our future on.

Originally published March 21, 2012 at Falls Church News-Press
 
Image credit: Seth Haynes, USGS

Fun with Trends

By Richard Heinberg, posted Mar 19, 2012:

Population growth chartIf current population trends continue . . .   

  • The population of the United States will increase to over 600 million by 2080, and in 2150 it will equal China’s present size.
  • World population will achieve 14 billion by the year 2075 and 30 billion by 2150.
 
If current energy trends continue . . .
  • By 2015 China will be importing more oil than the United States does that year.
  • By 2030 China will be absorbing all available global oil exports, leaving none for the US or Europe.
  • In just 8 years China will be burning as much coal as the entire world uses today.
  • Natural gas will be virtually free in the US by 2015.
  • Officially assessed US natural gas reserves will be exhausted by 2025.
 
If current economic trends continue . . .
  • China’s economy will be 8 times as big as it is today by 2040.
  • China’s economy will surpass the size of the present global economy before 2050.
  • The US federal debt will double—from $14 trillion to $28 trillion—by 2022.
  • In 2072, the federal debt will amount to $896 trillion, or $1,629,091 for each American (assuming a US population then of 550 million).
  • By the end of the century, each American will “owe” over a billion dollars.
  • Thanks to the doubling of US households living on less than $2 per person per day between 1996 and 2011, in 150 years there will be about 1.5 billion Americans living on practically no income.
  • The number of billionaires in the world (having grown from 793 to 1210 in just two years, from 2009 to 2011) will equal the world population in only 70 years. (Given the previous trend, this is especially gratifying news: since the rate of growth in the number of billionaires in the world exceeds the rate of growth in extreme poverty in the US, this means each American will become a billionaire before his or her grandchildren plunge into desperate poverty).
 
If current technology trends continue . . .
  • Thanks to Moore’s Law (whereby the number of transistors that can be placed inexpensively on an integrated circuit doubles approximately every two years), within 20 years transistors will be the size of an atom, and after another generation or so, “transistors” (if they can be called such, at that point) they will be the size of an electron.
  • It will eventually be possible to download into a computer all the memories and even the personality of a human individual.
 
If current environmental trends continue . . .
  • Due to the decades-long decline in male sperm counts, apparently caused by a proliferation of environmental hydrocarbon-based, estrogen-mimicking pollutants, the human species will go extinct sometime within the next two centuries.
  • With China’s coal consumption climbing at 8 percent per year, annual global greenhouse gas emissions will skyrocket, setting off multiple strong self-reinforcing environmental feedbacks that will ensure the melting of all polar ice, the death of the oceans, and the collapse of most agricultural production on the planet.
 
*          *          *
 
Trends do tend to continue for a while; otherwise they wouldn’t be trends. But sometimes trends in different areas work against each other and end up canceling each other out. In fact, all trends (except perhaps the expansion of the universe) eventually reach limits and stall out or reverse themselves.
 
Because projecting future magnitudes according to current trends requires relatively simple math, and because doing so sometimes enables analysts to make accurate short-term forecasts of things like population, sales volumes, and commodity prices, trend watching can confer a sense of mystical power. We can predict the future—and maybe even profit by doing so!
 
But, as Benjamin Disraeli famously said, “There are three kinds of lies: lies, damned lies, and statistics.” Indeed, projecting existing statistical trends out over long time periods often leads to absurd conclusions. Hence the necessity, when observing trends, of knowing (or at least being able to guess successfully) which ones are important or trivial, and which ones are likely to persist longer than others. A skilful trend watcher will note not only the rate of change in a given magnitude, but the rate of change to the rate of change: for example, while world population is growing at a rate of about 1.1 percent annually, its pace of growth has diminished in recent years, and that’s an important factor in forecasting world population for, say, 2050 or 2100.
 
In addition to generalized critical thinking skills, citizens need the ability to assess statistics-based claims in order to arm themselves against people with a political axe to be honed, or buck to be made, by hawking a particular trend. Unfortunately, policy makers don’t always have (or use) these skills, and so it’s common to encounter unrealistic assumptions about our future based on trends unlikely to continue for long. Often this is not just a matter of sloppy thinking: policy makers want certain trends to go on—because if they didn’t, there’d be hell to pay.
 
The obvious example is economic growth. Government officials assume (based on trends over the past few decades) that national economies will continue to expand forever, just as transportation planners assume that automobile traffic will always proliferate. Therefore more highways and suburbs are justified, and more public debt—because of course tax revenues will increase. Never mind that, in the US, there’s little basis for further real economic growth in light of debt levels and demography; or that vehicle miles traveled have actually declined significantly in recent years. Those are inconvenient trends that politicians and road-builders hope will simply go away. But will they? Certainly not if global oil supplies continue to tighten (another inconvenient trend): scarce oil will discourage both economic growth and driving.
 
Because business-as-usual assumptions are based on numbers, they appear both reassuring and authoritative. But which numbers matter?
 
More and more numbers look alarming. There’s a trend—a trend of trends! It might be difficult to total up the disturbing (versus reassuring) trends in the world and determine the rate of change in abundance of the latter versus the former. But it’s hard to avoid the subjective impression that more trends these days point to frightful or absurd outcomes.
 
Reality check: A snapshot of trends in the year 1200 would have shown temporary rapid change in a few variables (for example, in localized numbers of deaths from famine), but most rates of change were comparatively negligible. Not so in 2012, when rates of change in resource availability, species abundance, greenhouse gas concentrations, and debt levels yield doubling times measured in decades or, in some cases, mere years. Absurdity—or calamity—arrives fast at those rates.
 
If many key rates of change are accelerating, does this mean we are approaching some sort of historic discontinuity? If so, when will it arrive? What will it actually look and feel like? We can only guess; it all depends on which trends prove decisive. We’d all like to believe the world-weary French proverb, Plus ça change, plus c’est la même chose (“The more things change, the more they stay the same”). But what if the less witty formulation is truer: “The more things change, the more they change”?
 
Amid this uncertainty, there are two things we probably can conclude with some significant degree of confidence. First: many important current trends won’t continue for long. Second: if you like change, this is a great time to be alive.
 
Image credit: Population Growth Chart – via Shutterstock

Dear Wall Street: I Quit.

By Ken White, posted Mar 15, 2012:

scary vampire squid imageNews flash: The culture at Goldman Sachs is “toxic and destructive,” and “purely about how [Goldman Sachs] can make the most possible money off of [clients].”
 
So says a Greg Smith, who ended 12 years at the Wall Street giant with a 1,256-word kiss-off letter (more than a little reminiscent of Jerry Maguire’s “mission statement”) published in the New York Times. Goldman Sachs, for its part, is shocked — shocked! — that rumors the firm really is a vampire squid have been confirmed by a reformed tentacle.
 
In a related development, the rest of Wall Street continues to Hoover up some $30 trillion of Americans’ wealth, scatter it who-knows-where in the global economy… and (hopefully) trickle down some returns to Jane & José Jones.
 
So, how about writing your own resignation letter to Wall Street? Thought you did that when you “moved your money” by opening a checking and savings account at a local bank or credit union? You did! Partly.
 
But what about the rest of your money? Most long-term savings in stocks, bonds, mutual funds, pension funds, and life insurance funds are part of that $30 trillion flowing into Wall Street. Meanwhile, not even 1 percent of that vast pool of capital reaches local small businesses.
 
What if you could invest in Main Street instead of Wall Street? What if you could move away from the poor returns, impoverished ethics, and impoverishing impact of the out-of-control globalized economy? (Of course, not every Wall Streeter has the ethics — or hair — of Rod Blagojevich, but do you really enjoy swimming with sharks?)
 
Wouldn’t it make more sense to entrust your hard-earned capital to someone you know, or have some reason to trust…say, an organic farmer adding a new crop, or a local artisan expanding production?
 
We all have doubts about the ability of any investment to produce returns in these unsettling times. But as PCI Fellow Michael Shuman points out in Local Dollars, Local Sense, instead of lending our retirement money to the Goldman Sachses of the world, we can use it to help build local businesses and resilient regional economies. When we invest in the future if our own communities, we truly reap more than we sow.
 
And while we’re at it, let’s get our local institutions — churches, colleges, and community foundations — to keep their funds closer to home. They say they’re doing God’s work. So, ironically, does Goldman Sachs CEO Lloyd Blankfein. But who benefits from a relocalized economy, and who counts on a sucker being born every minute?
 
We all have the power to do the right thing, even in the face of overwhelming pressure to follow the crowd. Greg Smith found his voice. What are you and your money saying about your values?

The peak oil crisis: surging gasoline

By Simone, posted Mar 15, 2012:

Dollars stuff into gas tankWith the EU’s debt crisis and the Iranian confrontation relatively quiescent, attention has turned to the incessant increase in U.S. gasoline prices. The Capitol Hill gas station, where at least some members of Congress fill up, is currently selling regular for $4.49 a gallon. If you prefer to do business at the Watergate Exxon it will set you back $5.39 for regular. For a real taste of the future, then be sure to come in a full-sized SUV with a big V-8 and a 33 gallon gas tank – a fill-up will only be $188 for premium.

Before we get to what is happening in America, however, it is worth reminding ourselves that gasoline prices in Europe are now above or approaching $9 a gallon and are at an all-time high when expressed in Euros. This is due to the falling value of the Euro and the array of supply disruptions which have plagued European refiners and pulled down EU reserve stocks in the past year.
 
High gasoline prices have played a role in U.S. election campaign rhetoric going back to Jimmy Carter’s day when Carter was forced to defend the high prices that ensued from the Iranian revolution and hostage crisis. Four years ago, then candidate Obama excoriated the Bush administration for the price spike of 2008. In reality, other than to release crude from the Strategic Petroleum Reserve, there is very little a President can do to affect oil prices in the short term. Decisions made by governments, such as where to drill, or how efficient cars must be, may have a measurable impact a decade or two from now but to claim the ability of the U.S. government to influence prices short of that is pure demagogy.
 
In recent years the American people have become somewhat inured to higher than normal gasoline prices. Economically weaker drivers have been forced from the market or have cut back consumption and the rest have adjusted as needed. This has been helped by a steady stream of economic commentary assuring us that things were much worse back in the 1970′s and that prices still have a ways to climb before wreaking real economic havoc.
 
Gasoline prices have not been in the forefront of Election 2012 until recently when polls of the electorate showed that the 30 cent gasoline price increase in the last month was, in the words of Forbes Magazine, "freaking out" the voters. The President’s disapproval ratings soared with the gasoline prices. Nearly two-thirds of the voters say they disapprove of the way the President is handling gasoline prices and only 26 percent approve of his energy policies. Interestingly, 54 percent of those polled believe the President can control gas prices.
 
Some of the public’s perceptions stem from the President’s election opponents, who after getting into trouble on various social issues of late, have turned to gas prices as a winning issue. In reviewing the opponents’ official platforms, none of them seem to have any plan to lower gas prices other than by removing government regulations, restrictions, permitting etc. The candidates, of course, are aided in this effort by industry groups who have long sought to be free from as many constraints as possible and have spent untold millions on advertising to convince the voters that less regulation means lower gasoline prices. Consideration of climate change or anything else to do with the environment is demonized as keeping us from having cheaper gasoline is an omnipresent theme in all platforms.
 
For its part, the White House has struck back with a report noting that U.S. has cut foreign oil imports by 2 million barrels a day (b/d) since the President took office and that drilling and domestic oil production are at recent highs. This report, of course, is a political document in which the administration suggests it deserves credit for developments in most cases outside of its control. Oil imports are down because of the ongoing recession, and more recently very high prices, not any deliberate administration policies. To be fair, the Obama administration has now removed so many constraints on drilling that the oil companies have enough opportunities to explore for and exploit oil deposits for many years ahead. Issues such as drilling off the coasts are unlikely to be productive and are largely red herrings. Except for immediate approval of the Keystone pipeline, which incidentally is likely to raise, not lower, gasoline prices in the Midwest, the U.S. oil industry seems relatively happy with its current lot. They continue to express concerns about regulation of fracking but with drilling for shale gas trending down, this is not an urgent issue.
 
At least some of the mainstream media is beginning to understand the realities underlying America’s gasoline price problem and is beginning to look behind the political bombast far enough to develop a somewhat realistic appraisal of our energy situation. A recent Washington Post story on the political dispute says, "Today’s oil prices are the product of years and decades of exploration, automobile design and ingrained consumer habits combined with political events in places such as Sudan and Libya, anxiety about possible conflict with Iran, and the energy aftershocks of last year’s earthquake in Japan."
 
All this is good. The story goes on to discuss growth in Chinese demand (400,000 b/d each year); the role of speculators (they only magnify the speed and size of the price movement, not the direction); the Keystone pipeline (nothing to do with price for a while); the tight global market for oil; and releases from the Strategic Petroleum Reserve.
 
The Post, however, has to take one more giant step before it comes completely in touch with reality. One searches in vain for any mention that conventional petroleum production, from which our high-priced gasoline is made, has been stagnant for the last six years – i.e. global oil production is peaking. Once this threshold is crossed we (the press, the administration, political candidates, and the body politic) can begin a meaningful discussion of our options for the future.
 
Originally published March 14, 2012 at Falls Church News-Press

Image credit: Images_of_Money/flickr

Here are three ingredients. Now form an initiative

By Rob Hopkins, posted Mar 14, 2012:

A chordI seem to have done rather a lot of talks in schools recently.  I did one last week which included showing clips from the film ‘In Transition 2.0’ and talking about all kinds of stories from Transition initiatives around the world.  It was also the first one I have done yet where no-one was texting at the back of the room, which was a nice change (might one assured way to raise educational standards in schools be to make sure none of them have a mobile phone signal?  Bit radical.)  One of the questions I was asked was about how Transition got started, a question I am asked with alarming regularity still).  It got me thinking about the whole question of getting things started.

Speaking to students afterwards, I got the sense that there is a lot of nervousness about just starting things.  They might fail, and leave you looking ridiculous.  Or rather, that there is a sense that you have toknow something will work before you start it.  Transition is living evidence that that isn’t the case.
 
Thinking about it on my way home on a packed train to Reading, I thought that the initiating of Transition, back in 2005/6, required, in hindsight, a particular recipe, of which I, and those others involved at that stage, were largely unconscious at the time:
 
  • Being deeply driven by the scale of the challenge and wanting to do something about it now
  • A dash of old punk ‘do it yourself’ spirit (for me, anyway)
  • A naive belief that the bits we didn’t know how to do someone else would come along and add into the mix
  • A reckless lack of self-consciousness about admitting that there were large parts of this that we hadn’t figured out yet but which we trusted would emerge in time
  • Some deeply wonderful and patient co-creators who arrived very early on
  • An instinctive sense that it needed to be a response underpinned by compassion rather than survivalism
  • A vision underpinned not by abstract ideas but things I had already seen in practice on people’s farms, in their gardens, in their homes
  • Being prepared for the possibility that it going completely wrong wouldn’t be the worst thing in the world, combined with
  • A passionate belief that this was what we wanted to give our time, creativity and passion to, and that we were prepared to give it large chunks of our lives, our energy, our hearts to it
As I stood there answering the students’ questions, I was reminded of one of the finest examples of all this, especially the punk ‘do it yourself’ bit, which I first saw aged 14 and which partly shaped my attitude to life ever since.
 
It comes from one of the earliest, and most classic, punk fanzines, called ‘Sniffin’ Glue’.  Fanzines, for any of you too young to remember such things, were the blogs of 30 years ago, where boys (mostly) would pour out appallingly self-indulgent stuff about the bands they liked, haircuts, politics, their favourite films and so on, on crap typewriters, cut it up with pictures and stuff, photocopy it, and then sell them out of sweaty hands, largely at gigs.  “Wanna buy a fanzine?” became a phrase one would hear many times during an evening at a gig, from a bespectacled youth with a laden satchel over his shoulder.
 

Image detail from the front cover of ‘The Underground’ fanzine, No. 3. 1985.
 
I loved them.  Indeed I still have quite a few of them.  Titles such as ‘Vague’, ‘Communication Blur’, ‘Hungry Beat’, ‘Attack on Bzag’, and one of my favourites, “Are you scared to get happy?”  They were raw, passionate, and disposable.  They also, on occasion, contained some of the best writing I have read, still to this day.  Anyway, back to ‘Sniffin’ Glue’.  I was a bit young for it really, as I was only 9 when it was published, but this particular page became so celebrated that it was often reprinted in others.  Here it is.
What I love about it is that it captures the spirit that for me shone through punk.  Whilst many may remember it for silly hair dos, crap records and people spitting at each other, for me it was always about ‘do it yourself’.  Don’t like the music press?  Start a fanzine. Don’t like the records you’re hearing?  Start your own label.  Don’t like the clothes on sale?  Make your own.
 
In relation to my checklist above, this page from Sniffin’ Glue captures that.  Have a go.  Three chords are enough to get you started, you’ll pick up some more once you get underway.  Your passion, your love of music, your energy, is far more important than your technical prowess.  I saw bands where there were rarely more than 3 chords on show, but somehow it all just held together, there was such a focused determination, such a LOVE for what they were doing.  I love all that, me.
 
For me, Transition at the beginning was 3 chords, a fine tune in our hearts, and a desire to try and see if we could play it.  It’s a useful metaphor for the students I was talking to when they asked me how they might start Transition where they live.  In terms of Transition, we could say, perhaps, “here are 3 Transition ingredients, now form a group”.  Perhaps those 3 ingredients, the key ones to get you started, are Coming together as groupsForming an initiating group and Running effective meetings (ok yes, well Iknow that is actually two ingredients and one tool, if you want to be pedantic about it).  They’re a pretty potent initial few to get you started.
 
They are enough to get you moving, laying foundations, up and doing something instead of wishing someone else would do something.  They have you starting something, building some solid foundations, and starting to create a sense that something is happening that will bring in others, and that will spur you to start drawing in more ingredients to what you are doing.  You will draw in new ingredients when you feel you need them, you will have created something that has the energy of self-organisation about it.  This is why the Transition:Launch training focuses on the first few ingredients, rather than the entire journey.  Start at the beginning and grow out from there.
 
Of course in reality it is a bit more complex than that, but for me what matters is a sense of what is possible.  The idea that you need to become a virtuoso musician before you can form a band is likely to put 99% of people off the idea that they can create music at all.  The idea that you just need to master 3 chords and then you can get started is so much more empowering and enriching.  In the same way, the idea that you would need to study facilitation, permaculture, Transition, change management, planning, and so on, to some dazzlingly competent level before you can start a Transition initiative, would mean only about 3 people would get going with it.   So, instead, here are three ingredients, now form a Transition initiative.  Feels like the best advice I can come up with for a room full of enthused teenagers.
 
You can find out more about the ingredients of Transition either in ‘The Transition Companion‘ or in the on-line directory of ingredients on the Transition Network website
 
Originally published March 13, 2012 at Transition Culture

China Coal Update

By Richard Heinberg, posted Mar 8, 2012:

Loading coalWorld coal production and consumption data for 2011 are not yet compiled and published, but one key number is in. China’s Ministry of Industry and Information Technology reports that the country’s coal output rose 8.7 percent from 2010 to reach 3.88 billion short tons last year. For comparison, US consumption in 2010 was just over 1 billion tons—and holding steady (mostly due to cheap natural gas prices). If the current trend continues, China will burn well over 4 billion tons of coal in 2012, four times as much as the US. 

Asia-Pacific coal consumption dwarfed that of the rest of the world last year, accounting for about 70 percent of total world coal consumption, assuming a continuation of the 9.1 percent growth seen from 2009 to 2010. Asia-Pacific coal output has doubled, and doubled again (a 400 percent increase) since 1980.
 
China alone is now responsible for just about half of the world’s coal consumption, which amounts to nearly 8 billion short tons.
 
Chinese greenhouse gas emissions totaled 8.24 billion metric tonnes of CO2 equivalents in 2010; the 2011 figure will likely clock in at over 8.8 billion tonnes. The US racked up 5.5 billion metric tonnes of emissions in 2010, out of a world total of 33.5 billion tonnes.
 
The US still ranks first in terms of per capita emissions among the big economies, with 18 metric tonnes emitted per person; China emits under 6 tonnes per person, while the world average stands at 4.49 tonnes per person.
 
Two questions beg discussion:
First, When and how will China’s coal consumption stop growing? Given that current consumption rates are off the charts when compared to forecasts being issued just a few years ago, and that production problems (due to increasing mine depths and transport bottlenecks) are becoming more common, will consumption hit a sharp peak and decline rapidly—perhaps within the next few years? The country is reorganizing its mining industry and building new rail lines; over the short term, this could alleviate some of the supply pressures that caused Beijing to become a net coal importer in 2009. However, exponential rates of growth never continue for long on this finite planet of ours. At seven percent annual growth, China’s coal output would double every 10 years; is even one more doubling even remotely possible? What will be the economic consequences for China when production finally does top out?
 
Second, can the world save itself from a climate apocalypse unless China leads the way? Talk of “climate justice” (which emphasizes the higher per-capita emissions of wealthy nations) is all well and good, but the harsh reality is that even drastic emissions cuts by the US will mean relatively little unless China also cuts soon and fast. So far, indications are that Beijing is keeping the carbon pedal to the metal, despite concurrent efforts to become a world leader in renewable energy. Barring a dramatic global emissions policy breakthrough, resource limits and economic contraction seem to offer the main hope for keeping climate change to merely “catastrophic” levels.
 
China Coal Consumption chart
Source EIA
 

Why not frack?

By Simone, posted Mar 8, 2012:

Fracking diagram[Excerpt]: In one sense, the analysts who forecast that “peak oil”—i.e., the point at which the rate of global petroleum extraction will begin to decline—would be reached over the last few years were correct. The planet is running short of the easy stuff, where you stick a drill in the ground and crude comes bubbling to the surface. The great oil fields of Saudi Arabia and Mexico have begun to dwindle; one result has been a rising price for energy.

We could, as a civilization, have taken that dwindling supply and rising price as a signal to convert to sun, wind, and other noncarbon forms of energy—it would have made eminent sense, most of all because it would have aided in the fight against global warming, the most difficult challenge the planet faces. Instead, we’ve taken it as a signal to scour the world for more hydrocarbons. And it turns out that they’re there—vast quantities of coal and oil and gas, buried deep or trapped in tight rock formations or mixed with other minerals.

Getting at them requires ripping apart the earth: for instance, by heating up the ground so that the oil in the tar sands formation of Canada can flow to the surface. Or by tearing holes in the crust a mile beneath the surface of the sea, as BP was doing in the Gulf of Mexico when the Deepwater Horizon well exploded. Or by literally removing mountaintops to get at coal, as has become commonplace across the southern Appalachians…

Read full article

Originally published March 2012 at the New York Review of Books. This is a review of ‘End of Country’ by Seamus McGraw, ‘Under the Surface: Fracking, Fortunes, and the Fate of the Marcellus Shale’ by Tom Wilber and ‘Gasland’ a documentary film by Josh Fox.

Image credit: Al Granberg/ProPublica

The peak oil crisis: East Coast refineries redux

By Tom Whipple, posted Mar 7, 2012:

RefineryIt has been six weeks since we last discussed the problems that could be in store for the U.S.’s East Coast due to closing of refineries in the Philadelphia area.

Last week, the U.S. Department of Energy issued a second, more detailed report on what could happen to the availability of oil and prices in the event the third and largest of the three Philadelphia refineries in question be forced to close down this coming July. In contrast with most DoE reports, this one contains a clear, unambiguous warning that there likely will be serious troubles later this year and on into 2013 in the form of local shortages and higher prices for gasoline and other oil products.
 
To recap the problem, two of the nine East Coast refineries with a capacity of 363,000 barrels a day (b/d) have recently been closed down. Sunoco which owns a large Philadelphia area refinery (with a capacity of 335,000 b/d) is seeking a buyer and says it will close the refinery in July unless one can be found. These three refineries comprised 50 percent of the East Coast refining capacity as of last summer. Interestingly, the Sunoco’s Philadelphia is the oldest continuously operating refinery in the world having been established in the 1860s. The company says the price of imported crude which costs refiners roughly the going rate in London, plus about $2 a barrel for shipping, simply makes refining along the East Coast unprofitable.
 
There is some good news in the situation, however, as a refinery in Delaware recently reopened after a two year shutdown adding another 182,000 b/d to regional refining capacity; the bad news is that a big refinery in the Virgin Islands recently closed, halting the 200,000 b/d of refined products it was sending to the East Coast so the region is currently down about 380,000 b/d.
 
Adding to the problem is the issue of West European exports to the Northeastern U.S. Last year, the region imported about 250,000 b/d of gasoline from Europe. With the EU in the process of losing some 600,000 b/d of Iranian crude in the next few months, exporting gasoline from the EU may be a touch more difficult later this year. Although it may be hard to believe, an alternative source for gasoline seems to be India, which is already sending 40,000 b/d to the U.S.’s East Coast. While the Indians have a lot of refining capacity, they are starting to have problems getting crude from Iran.
 
The EIA says the refinery situation, which will be greatly exacerbated if the third one shuts down in July, will leave us with two kinds of problems. The first will be to where find additional barrels of gasoline and low sulfur diesel and how to transport them to the region and the second will be distributing these products to those areas that have been completely dependent on the Philadelphia area refineries.
 
The most serious problems are likely to develop in Pennsylvania and Western New York State where oil products are delivered by pipeline from the refineries in question. There seems to be no quick fix for moving oil products into Pennsylvania and Western NY as the product pipelines originate at the refineries and reworking the piers, pipelines and storage terminals to adapt them to handle finished products rather than crude brought in by ship will take time and be expensive.
Shortage-induced price spikes, however, would make it profitable to move tanker trucks of gasoline and distillates into the fuel-short areas. The EIA estimates that the breakeven point for moving a tanker load of gasoline the 300 miles from NY Harbor where there is adequate supply of gasoline and diesel to Pittsburgh or Western New York would be about 20-30 cents a gallon. Long haul trucks and drivers are likely to be in short supply, however, raising shipping costs well above the breakeven point. The existing product pipeline network can bring gasoline and other products from the Midwest as far to the east as Pittsburgh, but from there on the distribution of finished gasoline, heating oil, and diesel would have to be rail or road tanker.
 
Ultra Low Sulfur Diesel (ULSD), which is now the standard fuel for trucks, trains, heavy equipment etc. will be the most difficult to find and distribute and would likely be the first to develop shortages. While there are adequate sources of ULSD along the U.S. Gulf coast, getting them to the Northeast may be a problem. The pipelines are fully utilized and the Jones Act requires that shipping between U.S. ports be in US flagged ships. There are very few available tankers meeting the requirements available and cost of using them is three or four times as much as foreign flagged ships.
 
Another problem is that most of New England, starting with NY State this summer, is scheduled to switch to ultra low sulfur heating oil which was to have been refined in the Philadelphia refineries. This will increase the consumption of ULSD by 70,000 b/d in the winter. Even with the relaxation of the Jones Act and the environmental regulations, there seems to be a potential for problems in the near term.
 
The Pennsylvanians in Congress are very concerned about the situation. The House has scheduled hearings for March 19 and the Senate is planning to hold them also. Some have suggested that the Federal Government intervene in order to keep the Sunoco refinery operating, but this seems difficult to do in that it is losing considerable amounts of money and the owner wants to get out of the business. Finding a buyer in the next few months also seems unlikely given the large number of refineries that have come on to the market recently. Profitable refining seems to be one of the casualties of high oil prices.
 
Given enough time, the markets and the infrastructure will rebalance, but for now it looks as if the Northeast may be in for some abnormally high gasoline and diesel prices in comparison to the rest of the country.
 
Originally published March 6, 2012 at Falls Church News-Press