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A #TALE OF TWO CITIES - #ECONOMICS AND #SCIENCE COLLIDE

  SURREAL ECONOMICS OR CONCRETE SCIENCE? ORIGINAL POST It  was the best of times, it was the worst of times, it was the age of wisdom, it wa...

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Showing posts with label #economics #earth #accounting #wealth #theory #adamsmith #oil #extraction #consumption #depletion. Show all posts
Showing posts with label #economics #earth #accounting #wealth #theory #adamsmith #oil #extraction #consumption #depletion. Show all posts

Tuesday, 17 January 2023

A #TALE OF TWO CITIES - #ECONOMICS AND #SCIENCE COLLIDE

 SURREAL ECONOMICS OR CONCRETE SCIENCE?




It was the best of times, it was the worst of times, it was the age of wisdom, it was the age of foolishness, it was the epoch of belief, it was the epoch of incredulity, it was the season of Light, it was the season of Darkness, it was the spring of hope, it was the winter of despair, we had everything before us, we had nothing before us, we were all going direct to Heaven, we were all going direct the other way—in short, the period was so far like the present period, that some of its noisiest authorities insisted on its being received, for good or for evil, in the superlative degree of comparison only.

Charles Dickens
A Tale of Two Cities

It is fascinating to note that the profound symbolism contained in what many believe to be the greatest novel ever written can be metaphorically applied to the human condition today. The great question facing humanity centers on how to measure its state, progress, and the remaining possible extent of human activities.  Are we wisely using the planet's resources and how long can these resources last and thereby human activities be sustained? To answer these questions we need metrics and numbers to know how we're doing and to see where we're going; for how long.

CITY ONE - SURREAL ECONOMICS

Over time the two cities have evolved to provide the metrics to answer these questions. The first city we refer to as the Theories of Surreal Economics. Its primary metric is global GDP and as we can see from the chart below human progress and achievements have been utterly astounding over the past 300 years, and by the way, so has population growth. What could be better?





GLOBAL POPULATION GROWTH





CITY TWO - CONCRETE SCIENCE

Well, the second city we refer to as the Truths of Concrete Science as they use a different set of metrics that present an opposing view of the human condition and the physical state of the planet's resources and what is required to sustain human activities. The key metrics thus work to measure the overall physical climate, resources, and ecology.  In other words, the real wealth of the planet and, not the abstract surreal version used by the first city.

Here are some charts that show how we're doing using these concrete metrics.

First, here is a recent report from our contact and friend Dr. James Hansen, a world-renowned climate scientist who was the first to testify before the US congress in 1988 and warn the lawmakers about the impending warming of the planet. The chart presented in Table 1  below is deeply disturbing - as it forms a graphical hockey stick similar to the GDP and Population charts above. 

This means that there is a high correlation and good chance of causality between GDP/Population growth and global warming. Extending these variables forwards means that we are heading to ever higher temperatures unless immediate actions are taken to either mitigate or somehow reverse this terrible trend. 

But climate is not the only concern of the second city. The next is resource consumption and how long before these critical resources are practically exhausted for global economic purposes.  Some researchers have targeted the exhaustion date at 2050 based on the current known planetary supplies. We can see from the hockey stick chart below - that just our consumption of critical energy sources over the past 200-plus years also strongly correlates with charts for GDP/Population growth.





These exponential growths in human activity, population, and global warming also adversely affect the other plants and creatures living on the planet which all work together to form the ecology and thereby provide a survivable habitat for humanity. There is also always the possibility that should any small critical link in the ecology be broken, then the whole system could crash into an abyss where unknown, unknowns would prevail.  

The hockey stick chart below again shows a correlation that infers increased human activity, GDP, and population growth results in species' extinctions increasing in tandem. We know that they can survive without us - but, can we survive without them?






CONCLUSION:

So there you have it - two different cities with the two views and realities that they assert. One says don't worry everything is fine - be happy. The other says we are rapidly heading into the abyss where we face the unknown, unknowns of dire consequences. It is truly amazing that what Charles Dickens historically wrote in 1859, can also apply symbolically to our world today - however, the biggest difference today is - we are simply running out of time to get it right.  

And so it is:

'we had everything before us, we had nothing before us, we were all going direct to Heaven, we were all going direct the other way—in short, the period was so far like the present period, that some of its noisiest authorities insisted on its being received, for good or for evil, in the superlative degree of comparison only.' 
- Charles Dickens




Global Temperature in 2022

FULL ONLINE REPORT

12 January 2023
James Hansen, Makiko Sato, and Reto Ruedy
Global surface temperature in 2022 was +1.16°C (2.1°F) in the GISS (Goddard Institute for Space Studies) analysis[1],[2],[3] relative to 1880-1920, tied for 5th warmest year in the instrumental record. The current La Nina cool phase of the El Nino/La Nina cycle – which dominates year-to-year global temperature fluctuation – had maximum annual cooling effect in 2022 (Fig. 1). Nevertheless, 2022 was ~0.04°C warmer than 2021, likely because of the unprecedented planetary energy imbalance (more energy coming in than going out). The already long La Nina is unlikely to continue, tropical neutral conditions are expected by Northern Hemisphere spring, with continued warming as the year progresses. Thus, 2023 should be notably warmer than 2022 and global temperature in 2024 is likely to reach +1.4-1.5°C, as our first Faustian payment of approximately +0.15°C is due.
Table 1. Rank of 10 warmest years in the instrumental record, based on GISS temperature analysis.
 


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Friday, 18 March 2022

#Oil #Prices Boom 10% As #Ceasefire Stalls Creating #Market #Frenzy

 OILPRICE.com


Oil Prices Spike Nearly 10% As Hopes Of Ukraine Ceasefire Fade



As the White House continues to push back against the oil industry over high gasoline prices, WTI and Brent crude rallied on Thursday to gain nearly 10% by 3:30 p.m. ET.

Oil prices rebounded substantially on Thursday after a major selloff earlier in the week. That earlier selloff had stripped away nearly all the gains that crude oil had made after Russia’s invasion of Ukraine and resulting sanctions.

By 4:30 pm, WTI’s gains had eased somewhat, but was still trading up $8.21 on the day at $103.30 per barrel. Brent crude was trading up $8.55 on the day at $106.60.

Gasoline prices, which were already on the rise in the latter half of 2021, spiked after Russia’s invasion of Ukraine on supply fears surrounding the possibility of sanctions on the world’s third-largest crude oil producer after the United States and Saudi Arabia. When crude oil prices finally began to ease earlier this week on stock builds and hopes of a speedy resolution between Ukraine and Russia, it was hoped by many Americans that gasoline prices would ease in lockstep.

But with crude oil prices rising once again, the prospects of an imminent gasoline price dip in the United States has all but disappeared.



The Wall Street Journal

Remember Higher Oil Prices Spark Inflation




Tuesday, 15 March 2022

Today's Top #Energy #Headlines - March 15, 2022

 March 15, 2022

In the Know, Ahead of Markets, Deciding Wisely...'



Energy Prices Soften But Food Supplies Concerns Grow




Do We Really Know Why Shelves Are Empty?










Other Top Headlines Not Linked

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Monday, 14 March 2022

Can #Non-OPEC Production Mitigate #Oil #Shortages?

 


November Non-OPEC Oil Production Ticks Up


Below are a number of oil, crude plus condensate (C + C ), production charts for Non-OPEC countries created from data provided by the EIA’s International Energy Statistics and updated to November 2021. Information from other sources such as OPEC, the STEO and country specific sites such as Russia, Brazil, Norway and China is used to provide a short term outlook for future output and direction for a few countries and the world.



November Non-OPEC production increased by 410 kb/d to 49,870 kb/d. Of the 410 kb/d increase, the biggest increase came from the US with 244 kb/d along with a number of smaller increases. The other increasing countries were Brazil 74 kb/d, Kazakhstan 82 kb/d and Russia, 63 kb/d for a total of 463 kb/d. The biggest declines occurred in Guyana 86 kb/d and Norway 85 kb/d.  

Using data from the March 2022 STEO, a projection for Non-OPEC oil output was made for the time period December 2021 to December 2023 (Red graph).  Output is expected to reach 52,082 kb/d in December 2023, which is 295 kb/d lower than the January pre-covid peak of 52,377 kb/d. Note the projected drop for December 2021.

The current December 2023 output of 52,082 was revised down by 474 kb/d from the previous February report. The downward revision is primarily related to the STEO’s downward projection of close to 500 kb/d for Russian output, relative to February 2022. The revision is due to sanctions imposed by the US and its allies and the difficulty Russia is having in finding buyers for its oil. See Russia chart below for further details.


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Oil Shortages Forever - OPEC Says No Supply To Replace Russia







Thursday, 3 February 2022

TOP DAILY #ENERGY #HEADLINES - February 3, 2022

EDITOR'S COMMENTS - The End of Fossil Energy

Oil prices take a bit of a breather as OPEC adds more production nonetheless rumors persist regarding depletion that could take oil prices well over $100 barrel and negatively affect inflation and interest rates. We are facing perilous economic headwinds. 




Oil Ticks Lower as Traders Digest OPEC+ Decision to Add Barrels



GLOBAL OIL DEPLETION




Wednesday, 2 February 2022

TOP DAILY #ENERGY #HEADLINES - February 2, 2022

 Editor's Comments

As oil prices continue to rise their upward moves will put more pressure on inflation and for the FED to raise interest rates to protect the sale and rollover of US bonds and treasuries - ultimately to maintain the reserve currency status of the US dollar to avoid hyperinflation, economic collapse, and unprecedented political /social unrest. Not looking good. 

https://www.quora.com/Is-the-US-dollar-going-to-collapse-in-2022.

TOP HEADLINES

  • Oil climbs toward 7-year highs on U.S. stock draw, eyes on OPEC+ move

  • Oil Holds Near Seven-Year High as Traders Count Down to OPEC+

  • The Lack of Fossil Fuel Investment Is Hindering The Energy Transition

  • Surprise Crude Draw Suggests Tighter Oil Market
  • OPEC+ seen sticking to policy despite oil price rally -sources
  • New Energy Deals Are Transforming Geopolitics In The Middle East
  • OPEC Underproduction Is Driving Bullish Sentiment In Oil Markets
  • OPEC+ struggles to hit production targets with oil demand on the rise
  • Islamic State hits back, aided by power vacuum in Iraq and Syria
  • U.S. to send fighter jets to assist UAE after Houthi attacks
  • Nigeria Lost $4bn to Oil Thieves in 9 Months, Says Tony Elumelu
  • Guyana Delivers Again: New Discovery Made Offshore
  • There’s a Russia-Sized Mystery in China’s Electricity Sector
  • Tokyo’s daily COVID-19 infections exceed 20,000 for first time
  • Bill Gates Invests in Carbon Capture Startup After Tech Breakthrough
  • California Warns of Another Dry Year After Snowless January
  • Exxon, Chevron Hit Gushers of Cash as Big Oil Companies Lure Back Investors
  • The Global Gas Crisis Has Made American LNG Hot Again
  • ExxonMobil sees US Permian production growing by over 25% in 2022, narrows capex range
  • Orsted expects pickup in wind speeds to lift earnings
  • Gas flows to Europe halted again via Yamal pipeline after short resumption
  • EV Sales Reach ‘Inflection Point’ With Fast Growth in China and Europe
  • Shell Forced to Reroute Oil Supplies After Cyberattack
  • Gazprom’s Gas Exports Slump By 41% In January
  • Egypt, Iran, Sudan receive most of Russia’s January wheat exports: lineup

  • END OF OIL





  • Friday, 28 January 2022

    #IMPORTANT - CRITICAL NEAR TERM #THREATS TO #HUMANITY

     


    CRITICAL NEAR TERM THREATS TO HUMANITY

    Exponential population growth and its commensurate economic growth on a finite planet. As MIT researchers' modeling projected in 1972 we are now near collapse as we have exceeded the planet's carrying capacity. Sadly, we were warned long ago but did little if anything about it. https://donellameadows.org/archives/a-synopsis-limits-to-growth-the-30-year-update/ 




    2 Exponential depletion of key industrial materials and energy resources plus freshwater will make it impossible to create and have a low energy future after 2050- if not, sooner. https://www.youtube.com/watch?v=cdXdaIsfio8





    Melting ice caps and particularly the Arctic circle where a BOE (Blue Ocean Event) could occur in 2-3 years and wipe out all life on earth due to ​an ​extreme heat comparable to prior mass extinction eventshttps://www.scientistswarning.org/2022/01/12/arctic-death-spiral/




    Nuclear War - as populations grow and resources decline the chances of this event will increase - if we don't do it in Ukraine then Pakistan and India are the next possible conflict situations - as both face serious economic and political stresses due to growing populations and declining resources. https://www.nature.com/articles/d41586-020-00794-y





    5  Ecocide and biosphere destruction are leading to the current 6th extinction of thousands of species, plants, and wildlife annually both on land and sea - in all likelihood also one of the leading causes behind the ​possible lethal contageous ​pandemics among many animals sweeping the planet today and tomorrow. https://www.endecocide.org/de/2015/09/30/stopping-the-sixth-extinction-ecocide-law/



    • 6 - Complete Economic Collapse - we are running out of ​the ​key fossil fuel energy and material sources (oil, natural gas, and coal) ​while prices are ​also ​not high enough to entice oil producers to explore and develop properties. Moreover, US debt - both on and off the Federal Reserve balance sheet - is estimated to be over $100 trillion and cannot ​possibly ​be repaid by future generations from the economic production of goods and services as there will be no underlying energy and material resources for such activity which in turn backs the value of the dollar. 

    • Similar events are right now occurring in Lebanon, Turkey, Sri Lanka, Afghanistan, Venezuela, et al - all experiencing a collapse in their currencies for these reasons. An imbalance of resources, population, corruption, and national debt.  A situation that is becoming endemic in developing nations.


    • The US dollar may possibly lose its reserve currency status in the near future resulting in domestic hyperinflation bringing famine, massive social unrest, and violent internal conflict.  Another reason for the loss in status is that US bonds are now considered to be trash by top experts - i. e. worthless. Why? They can never be repaid in full without ample future resources and production and they are hence viewed to be in a technical de facto default by leading experts. 

    •  https://www.marketwatch.com/story/the-former-king-of-his-asset-class-bill-gross-now-says-bonds-are-trash-11630574701





    • Moreover, it is utterly certain that cryptocurrency and blockchain cannot provide any solutions to our physical-mathematical predicaments because they are the greatest hoax and financial Ponzi scam in a long time with no real concrete value or tangible asset backing.

    • Ironically, High Technology and its deities are thus clearly not our saviors nor panacea - as all they really do is just make pillaging the planet much easier and more efficient in the short term. Thereby, their primary role is speeding our path to collapse and extinction. 

    • Also, so what if we can now possibly build fusion nuclear plants  - how will they help us to restore the lost topsoil, replenish freshwater and aquifers, replace non-renewable energy, reverse climate change, restore Arctic Ice and other non-renewable material resources? Not going to happen for 250 million years or so.




    THEY ARE NOT HUMANITY'S DEITY nor A PANACEA

    • https://ourfiniteworld.com/2021/12/03/is-it-possible-that-the-world-is-approaching-end-times/

    • Quite simply, therefore - the writing is on the proverbial wall. Do the numbers and mathematics.

    • So that is it in a nutshell; meaning we may either only have a few years left or barely enough reserves in terms of energy, fresh water, topsoil, and material resources to get us to 2050. The solutions are not in economic or green energy schemes as we are well over the carrying capacity of the planet. 

    • Population and resource ratios are way out of balance and still growing. We remain pawns subject to the unforgiving physical laws of the universe just like bacteria in a petri dish endlessly pursuing energy and procreating  - thereby causing all the energy available to be consumed. That law being- Entropy. 

    • It is not negotiable.  
            We have always shared this law and its Paradise Lost with all other living cellular species past, present, and future.  
    • Any hope of a longer sustainable future however appears to largely rest in achieving a dramatic drop in population below; say,  1 billion in the next decade or so  - albeit such a reduction seems to be merely wishful thinking - as we are too far down the road and beyond tipping points whereby the threats of an Arctic BOE,  lethal worldwide pandemics, global famine and disease, economic and monetary collapse, or nuclear war are very real near term possibilities. We ran out of time to get it right.



    Conclusion

    It is very unlikely we can reduce populations in short order or remedy all of the critical threats mentioned. Our biggest mistake? Humanity had failed to understand and apply the implications of the exponential function to the population, climate, ecological, and resource constraints of a finite planet. And now we head towards the same destiny as the other 99% of the species who once lived on and enjoyed the wonderful treasures of this paradise. Now lost.

      This is the greatest shortcoming of the human race.



    :1

    Dream, Believe, Inspire