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United States as energy exporter: Is it “fake news”?

United States as energy exporter: Is it “fake news”?

Much of the media coverage of the American energy industry implies that America has become a vast and growing exporter of energy to the rest of the world and that this has created a sort of “energy dominance” for the country on the world stage.

Whether such reports qualify as so-called “fake news” depends very much on three things: 1) How one defines “fake news,” 2) whether writers of such reports qualify the words “imports” and “exports” with the word “net” and 3) which energy sources they are discussing.

In this case let’s define “fake news” as claims that official, publicly available statistics show plainly to be false. By that criterion anyone who claims that the United States is a net energy exporter would certainly be guilty of propagating “fake news.”

Energy statistics from the U.S. Energy Information Administration (EIA) show that in November 2017 (the most recent month for which figures are available) the United States had net imports 329.5 trillion BTUs of energy in all its forms.* That’s down from a peak of 2.74 quadrillion BTUs in August 2006, something that is certainly a turnabout from the previous trend. But all claims that the United States is a net energy exporter must be labeled as unequivocally false.

It turns out, however, that most people making misleading claims about America’s energy situation don’t actually say or write things which are technically false. What they do is use language which intentionally or unintentionally misleads the reader or listener.

For example, the claim that the United States is an exporter of crude oil is true. But that claim is entirely misleading. While the United States exports about 1.5 million barrels a day (mbpd) of crude oil, it also imports 7.5 mbpd.

…click on the above link to read the rest of the article…

Climate change: The feel-good catastrophe

Climate change: The feel-good catastrophe

Last week my newly adopted home of Washington, D.C. had two back-to-back days of summer in the middle of winter. The first day the temperature reached 78 degrees (when the high is normally 48 degrees). That was a new record. The next day the high was 82 degrees (normally 49 degrees). Not surprisingly, that was a record, too.

People were walking the streets in T-shirts and shorts. Last week’s balmy interlude felt like those late spring days which provide a preview of the summer ahead. Everyone was telling me I had to get outside so I could to take advantage of such great weather—which I did.

But the long walk I took on day one was not a particularly happy one. As most of the rest of the Washingtonians I encountered were experiencing the feel-good part of the feel-good catastrophe called climate change, I was experiencing the catastrophe part.

That’s the problem with the initial phase of climate change in many areas: It feels good. In my longtime home of Michigan, people often commented positively about the increasingly mild winters there (except for the winter sports enthusiasts). How do you explain to people that that good feeling is the harbinger of something really, really bad?

Yes, people say, they know such warm days in winter are not good. But, why not enjoy the weather anyway? They have a point. Still, if the climate is giving so many people feedback that makes them feel better, how will anyone ever take climate change seriously enough?

Now, climate change did little to comfort the people of Texas, Florida and Puerto Rico during the hurricane season last year. But it’s too easy to dismiss those incidents if you don’t actually live where the hurricanes hit. For most of us, climate-change enhanced hurricanes are something that happen to other people.

…click on the above link to read the rest of the article…

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LNG comes to Boston, a harbinger of the future?

LNG comes to Boston, a harbinger of the future?

The most curious natural gas story of the year so far comes out of Boston and seems to have echoes of a deepening Russia-related scandal in Washington. A liquefied natural gas (LNG) tanker bearing natural gas produced in part in Russia delivered its cargo to the Boston area for insertion into the natural gas pipeline system there. Apparently, the Russian company that supplied some of the gas may fall under U.S. sanctions against the financing and importation of Russian goods.

One of the many ironies of the delivery is that the United States is simultaneously importing LNG in one place even as it exports LNG from another. (I’ll explain later why this may become a more frequent occurrence in the years ahead.)

The hue and cry from the natural gas partisans blamed Boston’s predicament on the lack of pipelines to carry growing gas production from the nearby Marcellus and Utica shale deposits to needy Bostonians whose gas supplies had been depleted by a deep winter freeze.

Within the context of this narrow appraisal, the partisans are mostly correct. Attempts to bring more pipeline gas to New England have come to grief, especially in New York state where residents have strongly opposed new natural gas pipelines and storage facilities.

In addition, the state banned hydraulic fracturing—the main method for extracting gas from the Marcellus and Utica deposits—in 2014, claiming the process threatened water supplies. That ban, of course, prevented any shale gas development in southern New York under which the deposits lie. And, it brought into disrepute all things related to hydraulic fracturing or “fracking” including natural gas pipelines and storage facilities.

…click on the above link to read the rest of the article…

The stock market swoon and our hatred of (some kinds of) volatility

The stock market swoon and our hatred of (some kinds of) volatility

The steepest one-day point drop in the history of the Dow Jones Industrial Average last week shook stock investors into an awareness that all is not sweetness and light in the financial markets. The sudden downside stock market volatility had been preceded by the breathless upside volatility of a months-long melt-up—one that had financial gurus outbidding each other to increase their targets for major stock indices. (See here and here.) Investors, too, felt that heaven had arrived on Earth, at least financial heaven.

After years of steady gains—with only the occasional drop—stock and bond market investors had gotten used to narrow swings in price that didn’t disturb their sleep. In fact, whenever the stock (or bond market) looked like it might crash, the world’s central banks offered reassurance both in words and deeds. The deeds included unprecedented buying of bonds (which kept interest rates low) and in some cases the purchase of stocks. The Bank of Japan and Swiss National Bank are two central banks which buoyed stocks through purchases though they bought stocks for different reasons.

Whether the current volatility presages a market meltdown or not, I’ll leave to others. But volatility in the stock market isn’t the only kind of volatility humans don’t like. In fact, the entire project of human civilization might be characterized as an attempt to dampen volatility. The basis of civilization, that is, living in settlements, is agriculture, especially agriculture devoted to the production of grains. Why grains? Because grains can be stored from season to season and thereby smooth out food supplies throughout the year and cushion an unexpected drop in supplies from year to year due to drought, floods or other natural catastrophes.

…click on the above link to read the rest of the article…

Ruin is forever (revisited): Why your death isn’t as bad as that of all humankind 

Ruin is forever (revisited): Why your death isn’t as bad as that of all humankind

It should be obvious that the death of an individual human being isn’t as bad as the death of all humankind. But that’s only true if you accept the following premise laid out by Nassim Nicholas Taleb in his upcoming book, Skin in the Game:

I have a finite shelf life; humanity should have an infinite duration. Or I am renewable, not humanity or the ecosystem.

The quotation actually comes from a draft version of one chapter available here. The book is not yet out.

But what does this mean in practical terms? The simple answer is that human societies should not engage in activities which risk destroying all of humanity. Nuclear war comes to mind. And, most, if not all, people recognize that a nuclear war would not only result in unthinkably large immediate casualties, but also might threaten all life on Earth with a years-long nuclear winter.

But are we humans risking annihilation through other activities? Climate change comes to mind. But so do our perturbations of the nitrogen cycle which we are now at the very beginnings of understanding. In addition, the introduction of novel genes into the plant kingdom with little testing through genetically engineered crops poses unknown risks not only to food production, but also to biological systems everywhere.

The thing that unites these examples is that they represent an introduction of novel elements (artificial gene combinations not seen in nature) or vast amounts of non-novel substances (carbon dioxide, nitrogen compounds and other greenhouse gases) into complex systems worldwide. Scale, it turns out, matters. A population of only 1 million humans on Earth living with our current technology would almost certainly not threaten climate stability or biodiversity.

…click on the above link to read the rest of the article…

Who will drink the last glass of water in Cape Town?

Who will drink the last glass of water in Cape Town?

Because Cape Town sits between picturesque beaches and mountains, it is a favored travel destination. And, its weather during the summer is described as “almost too perfect.” That’s in part because it rains very little in the summer in this second most populous city in South Africa.

Water, water everywhere, but not a drop to drink

Trouble is, starting in 2015 the rainy season never arrived. One year, then two years and now three years of extreme drought have brought the city’s water supplies almost to exhaustion. Barring extraordinary rains or even more draconian cutbacks in water usage than have already occurred, Cape Town officials say they will have to turn off water to most household taps and businesses sometime in April. They’re calling it “Day Zero.” Hospitals and essential public facilities will be exempt. Most residents would have to line up at designated water supply stations for a daily allocation of 25 liters.

Cape Town’s current troubles were not necessarily foreseeable in the usual sense. Yearly long-range weather forecasts raised no alarmswhen they were released since they did not predict an extreme drought for that year.

The causes of the city’s water problems are, in fact, multiple. First, Cape Town’s population has risen 80 percent since 1994 (the end of white rule) to 3.75 million people putting extraordinary demands on its water system. Second, average rainfall has been gradually decreasing for decades and has reached its lowest since 1933. Comparable records before that are not available. One calculation cited in the above linked article is that the current drought is the worst in more than 300 years. Another calculation suggests the multi-year drought is a once-in-a-millennium event. Third, climate change is almost certainly increasing the likelihood of such a drought though there is no way to prove the link to this particular drought.

…click on the above link to read the rest of the article…

The energy of Bitcoin, the information economy and the (possible) decentralization of the world

The energy of Bitcoin, the information economy and the (possible) decentralization of the world

The near vertical rise and fall in price of the cryptocurrency Bitcoin in recent months has been accompanied by reporting about the energy used to run the Bitcoin network. The amount is enormous, more than enough to supply the entire country of Ireland.

Many other cryptocurrencies operate under less energy-intensive designs. But the more than 1,000 other digital coins beyond Bitcoin certainly use a considerable amount of energy though there is no overall estimate I’m aware of. (For the technically minded, here is a discussion of two popular methods associated with validating transactions, one of which is considerably less energy-intensive.)

We’d like to think that the information economy of which these newfangled currencies are part bears lightly on the broader environment. But as I pointed out in my piece “The Unbearable Lightness of Information,” much of what happens in the information economy is simply focused on extracting more resources more quickly to create more goods and services for more customers. The physical economy isn’t disappearing. It is merely being exploited more completely using digital information.

And beyond this, “Every person who works in the so-called information sector of the economy must be housed, clothed, schooled, provided transportation, provisioned with household goods, given opportunities for entertainment and recreation, [and] supplied with a wide array of public services.”

Having said all this, I find one aspect of the blockchain technology behind the explosion in digital currencies to be promising. This technology offers a possible path for decentralizing banking and finance and myriad other Internet-related services we’ve come to rely on from big corporations.

…click on the above link to read the rest of the article…

Protagoras and the Anthropocene: Can man still be the measure of all things?

Protagoras and the Anthropocene: Can man still be the measure of all things?

The ancient Greek philosopher Protagoras is famous for his saying that man is the measure of all things. Though we don’t know much about Protagoras or his written work except for quotations appearing in other ancient works, the general view is that Protagoras was the father of moral relativism in philosophy.

The Protagoras’s complete statement has been translated as follows: “Of all things the measure is man, of the things that are, that [or “how”] they are, and of things that are not, that [or “how”] they are not.” It is unlikely that Protagoras believed that physical truths about the natural world such as the freezing point of water depended on one’s personal standpoint.

But under Protagoras’s tutelage in matters of values, we are left only with the measuring instrument called “man” (or more inclusively “humans”). In the age of the Anthropocene—that still-not-official geologic age in which humans are designated as the most potent geologic force on the planet—those issues thought to relate solely to the lives of humans do NOT, it turns outs, relate simply to humans.

While we may choose to celebrate the material progress of humankind, we do so heedless of the wider costs to the stability of the biosphere. Those who focus only on measures that exclusively relate to what we regard as human well-being miss the broader picture and mislead their audience. (They often say “the world” is getting better when they mean certain measures of human well-being are moving in a direction we regard as good.)

But, human civilization thrives under very specific environmental conditions, namely the ones experienced since the end of the last ice age. That age, the Holocene, has been marked by a moderately warm and stable climate which made possible agriculture and the concomitant rise of cities.

…click on the above link to read the rest of the article…

Hawaii’s existential choice: Tourism, food and survival

Hawaii’s existential choice: Tourism, food and survival

Hawaiians used to feed themselves quite easily on this island paradise. With the arrival of Europeans and Americans came European and American ideas about plantation agriculture. Hawaii became a producer of coffee, sugar, pineapple, papaya, rice and other plantation crops.

While destroying Hawaii’s diverse food system, the growers created a prosperous agricultural trading economy with mainland markets as customers. But competition from low-cost producers elsewhere has more recently devastated that economy. The last remaining sugar plantation closed in 2016.

The decline of the previously large sugar and pineapple industries now make Hawaii much more dependent on tourism as a source of income. Tourists are Hawaii’s largest industry. They spent $15.6 billion in 2016 on vacations there representing about 18.5 percent of the total economy. That certainly underestimates their importance as many additional support services are needed to maintain the businesses that service the tourists.

As tourism has grown, land used for agriculture has declined by 68 percent since 1980. Some of the former plantation operators have turned themselves into land development companies to take advantage of the tourism and real estate boom.

The result is that Hawaii—a lush, fertile group of islands with the ability to grow crops year round—now imports 90 percent of its food.

Importing food is not a problem in and of itself. It turns out that some of the world’s top food importing nations such as China, the United States and Germany are also top food exporters. They choose to specialize in what they grow most efficiently and export some of it, while importing foodstuffs which other countries are more efficient at growing by reason of climate, soil, water availability, labor costs and other factors.

…click on the above link to read the rest of the article…

Is Washington tacitly operating under a new monetary theory?

Is Washington tacitly operating under a new monetary theory?

In 2002 when soon-to-be-dismissed U.S. Treasury Secretary Paul O’Neill warned then Vice President Dick Cheney that the Bush administration’s tax cuts would drive up deficits and threaten the health of the economy, Cheney famously answered: “You know, Paul, Reagan proved deficits don’t matter.”

In the wake of the recently approved federal tax cut,voices concerned about the damage that deficits will do are rising again.

What’s curious is that since Cheney’s rebuke of O’Neill, growing federal government deficits seem not of have mattered. In fact, the largest deficits ever boosted the economy after the 2008-09 recession, exceeding $1 trillion annually for four years.

All of this suggests that the federal government has for a long time been operating under an unspoken monetary theory, namely, that government spending does not need to be backed by revenues and that the debt issued to fill the gap between spending and revenues will have little effect now or in the future.

But isn’t there some level of federal debt which would cripple the federal government and the U.S. economy?  A common metric for measuring this debt is the ratio of federal debt to annual gross domestic product (GDP). When one looks at a graph of this, the growth in debt seems perilous, rising from a low of around 30 percent of GDP in the early 1980s to more than 100 percent of GDP today.

Seemingly more perilous is the rapid growth in Japanese government debt. That debt has soared from a low of around 40 percent of GDP in 1990 to almost 200 percent of GDP now. Yet, the oft-prophesied demise of Japanese government finance has not occurred.

…click on the above link to read the rest of the article…

Do we have the wrong model of human nature?

Do we have the wrong model of human nature?

Are we wrong to believe that competitiveness must and always will be the central animating principle of human action? Media studies scholar Michael Karlberg thinks so. In fact, he believes that another animating principle, mutualism, is both central to human interaction and necessary to aid human society in meeting the myriad challenges it faces regarding climate change, inequality, governance, education and many other issues.

I saw Karlberg speak recently at a private gathering in Washington, D.C. He is measured in his tone, clear in his delivery and compelling in his logic. He poses the following question: If nearly all of our institutions are premised on competition (commerce, politics, education, recreation and many others), is it any wonder that our competitive instincts are honed and expanded while our cooperative ones atrophy?

Karlberg is not naive enough to believe that all this can be changed overnight. But he does make a convincing case that competitiveness is as much a problem emanating from social institutions that inculcate and incentivize competition as it is a problem of human nature.

The way forward, he asserts, is to build new institutions that emphasize cooperation; it’s a sizable task, but one which has already begun as he explains at the end of a TEDx talk which he gave in 2012. However utopian this goal may seem, Karlberg reminds us that the current “culture of contest,” as he styles it, has given us the existential threat of climate change spawn by endless economic growth and consumption. In fact, the “culture of contest” is creating a series of social and ecological challenges so profound that unless we change that culture we may drive ourselves toward extinction.

…click on the above link to read the rest of the article…

Human well-being, economic growth and so-called decoupling

Human well-being, economic growth and so-called decoupling

Some people claim that humans—called breatharians—can live on air alone. Others claim we can have economic growth without increasing our resource use, so-called decoupling. Neither claim withstands scrutiny though here I am only going to deal with the second one.

Hidden beneath the claim of decoupling is the assertion that human well-being and economic growth are synonymous. But, human well-being is far from a one-dimensional economic variable linked unalterably to more income and consumption. So, saying that economic growth must at some point come to an end to maintain the habitability of the planet is not the same as saying that human well-being must also stop improving.

On the contrary, a stable society in harmony with the workings of the natural world in a way that maintains the habitability of the biosphere for humans would seem to be an essential characteristic of a society which offers a high degree of well-being to humans. Destroying that habitability through endless economic growth then is contrary to human well-being in the long run.

All of this should seem obvious. But so often the advocates of growth or “sustainable” growth tell us that ending growth would destroy the chance for countless people to attain well-being in our modern industrial world. While that has some truth within the narrow context that measures well-being as a function of economic output, it misses the point above. An uninhabitable world is really, really bad for human well-being.

The answer these advocates say is economic growth decoupled from increased resource use. But as two recent papers suggest, this is an oxymoron.

As “Is Decoupling GDP Growth from Environmental Impact Possible?” explains,while society has been getting gradually more efficient at producing goods and services, we are not anywhere near economic growth without increased resource use. The apparent decoupling in Germany and some other countries is probably due to the following factors:

…click on the above link to read the rest of the article…

Be kind, it’s all connected

Be kind, it’s all connected

In a conversation over the holiday I posited to a friend that the modern worldview which guides human action practically worldwide has all the hallmarks of a religion. I contended that this “religion” is at the root of our ecological predicament and that changing the current perilous trajectory of humankind would entail the adoption of an ecologically sound religion to replace it.

When I say religion, I mean “worldview,” and I believe the two are synonymous. Even if one has a supposedly secular worldview that relies on economics, psychology, biology or any other field for an explanation of how the world works, it will inevitably look like a religion since such worldviews have unquestioned (and often unquestionable!) premises and may make claims to explain all the social and/or physical phenomena we experience. These secular worldviews tend to be reductionist, describing the interactions of humans with one another and the physical world as nothing but a product of economic laws, human psychology or biological imperatives.

One cannot invent a religion. Religions either grow out of an accretion of spiritual and philosophical traditions over time or they start with a charismatic figure who brings a new set of ideas and standards into a society and is later labelled a divine prophet or the originator of a new philosophy or discipline.

I’ve tried to imagine what the shape of an ecologically sound religion/worldview might be. My friend wisely offered the following humble beginning: “Be kind. It’s all connected.”

The first two words are familiar to anyone affiliated with a religion. It is the equivalent of “Love thy neighbor.” But the second phrase creates an altogether more expansive meaning for the first, implying that we should not only be kind to our fellow humans, but to all nonhuman entities, animate and inanimate.

…click on the above link to read the rest of the article…

Agriculture and climate change: Is farming really a moveable feast?

Agriculture and climate change: Is farming really a moveable feast?

There is a notion afoot that our agricultural production can simply migrate toward the poles in the face of climate change as areas in lower latitudes overheat and dry up. Few people contemplate what such a move would entail and whether it would actually be feasible.

One assumption behind this falsely reassuring idea is that soil quality is somehow roughly uniform across the planet. But, of course, this is completely false. Soil quality and composition vary widely, often within walking distance on the same farm. Farmers simply moving north (or south in the Southern Hemisphere) in response to climate change will not automatically encounter soil suitable for farming.

We must also consider that lands not previously farmed may very well be forested. Knocking down the trees and clearing the stumps might make such lands arable. But the loss of carbon storage that trees represent would only make climate change worse.

Quite often we think of rural areas as being undeveloped. But nothing could be further from the truth. Agricultural regions have complex networks involving roads, communications and electricity grids, irrigation systems, grain elevators, farm supply and machinery merchants, rail depots, agricultural research stations and field projects, government-sponsored agricultural assistance centers and the specialists attached to them, and entire towns which act as gathering places and service centers for those working in rural communities. All of this would have to be duplicated in newly opened agricultural lands for which pioneering settlers would have to be recruited. These pioneers would have to want to live in previously unsettled or sparsely settled areas with few amenities.

…click on the above link to read the rest of the article…

Look at the big picture, avoid groupthink, remember history

Look at the big picture, avoid groupthink, remember history

A friend of mine recently outlined as follows his method for thinking about important issues: Look at the big picture, avoid groupthink, and remember history.

First, the big picture. People too often think only about the narrow field in which they work or the community or nation in which they live. But whatever the topic, there is always a context that includes the rest of world and the interplay of actors and forces in many locales and fields of endeavor.

Let me provide an illustration (not one provided by my friend). If I want to understand the state of renewable energy in the United States, I’d certainly want to know also the state of that industry in other countries including their regulatory regimes; the structure of their industry whether public, private or a combination; and the state of research and development. I’d also want to know how renewable energy fits into the total picture of energy use, for example, its current share of consumption compared to competing sources of energy and its growth rate. Further, I’d want to know about the emergence of electric vehicles, a major new user of electricity, and about the industry that produces them. I wouldn’t stop there, but what I’ve outlined so far conveys the scope of inquiry that I’m recommending.

Next I’d want to check into any relevant claims made in the media and by family members, friends, and co-workers in order to avoid groupthink, that is, believing something merely because I’ve heard it from others. For example, if someone claims that the dominant form of energy in human society in 2030 will be solar (and someone did), I would want to find the basis for such a claim if there is one and also see if the current trends suggest that this is likely.

…click on the above link to read the rest of the article…

Olduvai IV: Courage
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Olduvai II: Exodus
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