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How expensive does oil have to get before your habits change?



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THE day after the M74 extension got the go-ahead, I passed a group of young people in the centre of Dundee with flasks, sleeping bags and fold-up chairs.
Not a campaign against Scotland's most expensive motorway but a 24-hour subzero queue for tickets to T in the Park.

Pondering my own naivety I was reminded of a German student who joined an anti-Apartheid campaign 25 years ago. We occupied a Barc
lays Bank secretarial pool instead of the bank's operations centre and disrupted "milk-round" interviews of a washing powder manufacturer after they swapped rooms with the sanctions-busting RTZ.

Achim returned to Germany in despair. His diagnosis was that British youngsters accepted the political status quo and poured discontent into the commercial music industry instead. In Germany, disillusioned youth got organised – in Britain, we just wrote songs.

This may account for the relative strength of our music industries. But it may also explain the near total absence of spirited debate about the nature of our post-oil future. And that future is coming our way – not next century, next decade or next government, but perhaps in two years' time.

"By some estimates, there will be 2 per cent annual growth in global oil demand over the years ahead, along with, conservatively, a 3 per cent natural decline in production. That means by 2010 we will need an additional 50 million barrels per day."

Not the words of a green evangelist but US vice-president Dick Cheney – while still CEO of Halliburton. Warnings like his have been largely ignored but a new film aims to bring oil production into mainstream debate just as Al Gore did with climate change.

A Crude Awakening: The Oil Crash has no big money behind it, no former US presidential hopeful fronting it and, unfortunately, no audience-friendly editor finessing its bleak and uncompromising message – that our oil-based existence is about to end. Oil supplies are flatlining whilst demand is rising exponentially. No vast new fields have been found. And exploitation of new resources like tar sands is stretching our human and technical ingenuity to the limits. The world's oil production peak is past, we're currently running down the other side, but we're still behaving as if we were back in the good old 1980s.

The US oil boom buckled before the North Sea oil started to flow. In the 1950s the US produced half the world's oil and was an exporter. Today, it consumes a quarter of the world's oil and is an importer – only 2 per cent is "homegrown". The vulnerable position of the US has shaped their foreign policy ever since. Whilst Scots have been quick to see through George Bush's real motives in the Middle East, we've lessened our own dependence on oil not one iota.

Perhaps we think supplies still come from the North Sea? Perhaps we think they always will? And why wouldn't we? No elected political leader has had the considerable guts needed to tell us that a shortfall between demand and supply of 10 to 15 per cent is enough to shatter an oil-dependent economy and transform the way we live.

The only obvious indication of trouble has been the rising oil price. And yet, the public evidently thinks politicians can cap it. Today, business leaders are calling on the Chancellor to scrap intended rises in fuel duty. With prices rising from $68 to $90 a barrel, they argue, the government's share in tax and VAT has already soared.

In 1996, oil cost $10 a barrel. It costs $100 this year. And according to ex-OPEC analysts featured in A Crude Awakening the price of $200 may be just two years away.

It's almost impossible to imagine how a world without copious, cheap oil supplies will operate. Ironically, the archaeologists excavating Scotland's past along the M74 route can help. They've found an old pharmacy, a dentist's surgery, and the site of Caledonian Pottery – innovative in the 1880s for using gas kilns instead of solid fuel. Past worlds abandoned as times changed.

Hugh McBrien, consultant for West of Scotland Archaeology Service, says: "We showed some kids a teapot they couldn't tell us what it was. This generation can't recognise teapots because they've never seen their parents use one."

That's how quickly societies change. The essential becomes forgotten. The habit becomes the exception. So we'd better start documenting our oil junkie days now. The days we thought driving daily between cities was normal. The days we drove to malls for everything and jetted off to warm, exotic destinations without bringing back presents – because they were already available and cheaper here.

We are oil junkies. Without brave political leadership few of us will kick the oil habit – until rising prices force us. Perhaps we know that. And perhaps that's why retro TV like Life on Mars has become so popular – 40 and 50-year-olds love glimpses of the time before North Sea oil wealth transformed Britain.

At the risk of sounding like a Luddite, the baby boom generation grew up without central heating, microwaves or cars. Has our oil-fuelled affluence given us greater satisfaction?

Society thrived before cheap oil. And when government planners view oil as one important fuel source amongst many, we will thrive again.





The full article contains 894 words and appears in The Scotsman newspaper.
Page 1 of 1

  • Last Updated: 17 February 2008 8:27 PM
  • Source: The Scotsman
  • Location: Edinburgh
  • Related Topics: Lesley Riddoch
 
1

The Strategist,

18/02/2008 00:19:51
North Sea oil wealth didn't transform Britain. Consecutive UK Govt's have piddled it all away.
2

Socrates2,

18/02/2008 01:25:34
yawn
3

Unimpressed one,

18/02/2008 08:10:08
We've been hear this scare story for decades. However new fields are always being discovered and prevention of extraction is usually only held back by the shrill clamour from eco-bams.
4

democracy,

Scottish Borders 18/02/2008 11:29:20
"How expensive does oil have to get before your habits change"? This article headline would be more appropriately aimed at the Scottish electorate who go to the polls and vote for a Unionist party!
I just see this article for what it is, and that is a Unionist rag propoganda. A number of independent experts (not Unionist or nationalist opinion) have already declared that there will be around 50% of the oil still to be claimed from the north sea existing wells, and they would expect some finds in and around the western isles in the forseeable future.
5

Tartan Army,

18/02/2008 13:22:31
#3 "uimpressed one"

http://wolf.readinglitho.co.uk/mainpages/discoveries.html

Discoveries of oil peaked in the 1940s, the last major finds were in the 60s, and there is a clear declining trend since then.

Consumption on the other hand has increased fairly consistently, until 2005 when the peak in oil production occurred. The rise in oil price over the past 10 years has been due to the market adjusting to the new reality - production isn't rising to meet demand anymore.

6

Seoras67,

Edinburgh 18/02/2008 13:28:49
Another doom and gloom scare story from Ms Riddoch. Oil may be 200 dollars a barrel in a couple of years, there again it may not. I may win the lottery next week, there agin, I may not. All my life I've read scare stories from Ms Riddoch and her like. In the 1970s the Club of Rome predicted that Planet Earth would use up its stores of oil and essential minerals eg tin, lead etc by now. That was based on usage rates as applicable in the early 1970s. Guess what, despite demand having grown hugely since then more resources are available today than back then. No chance of any aplogies from those prophets of doom though. Running out of oil, of gas, of lead, aluminium etc; not being able to grow enough food to supply a growing population; being wiped out by Aids or SARS or Bird Flu. All predicted, all shown to be groundless. Despite the whingeing of our professional doommongers ordinary people will do what ordinary people have always done. Treat such warnings with the contempt they deserve and get on with their lives. How about a story, based on actual fact rather than opinion, showing how life has improved for the vast majority on the planet over the last 40 years?
7

Undertow,

Dundee 18/02/2008 18:47:53
Seoras67,

I don't believe you actually know what Limits To Growth (The Club of Rome report) said. Why not take a look at "Peak Oil and "The Limits to Growth: two parallel stories"

http://europe.theoildrum.com/node/3550
8

Colin, Glasgow,

18/02/2008 21:15:33
At the end of the 19th century they worried that the sun would run out of fuel within a century. They didn't know about nuclear fusion.

There is no telling what might happen before the shortage of oil becomes a problem. Using fusion, 10g of hydrogen can supply all your energy needs for your whole life. With sufficiently large amounts of energy almost anything else is possible, including reclaiming any other natural resources and if necessary reconstructing them from their constituent elements. The only real limit is the second law of thermodynamics - and we are a very, very long way from testing that limit on a universal scale.

It's a shame optimistic stories don't sell newspapers. It seems we have become so affluent that some people are compelled to feel miserable about the future, otherwise they feel guilty about their good fortune.
9

The Ghost of Sir William Arrol,

The Forthy Bridge 18/02/2008 23:14:00
An excellent article, sadly, but truthfully very well informed. Can't say it's smart building new motorways or new Forth Bridges just as oil supplies falter, but there you go. I suppose the new bridge is going to have trams, so it won't be a total waste of money. There have been some recent notable and sensible decisions though. The daft £1 billion railway link to Edinburgh airport has been kicked into touch. In ten year's time when the airport is an all but deserted facility it will be seen as a very enlightened move not to build such an expensive link. If it had been built, it would have been a huge white elephant. Using the money instead to electrify the railways is much smarter!

 

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