Peak oil: More than cars

Progressive pundits don’t seem to be fully grappling with the oil problem 10

Earlier this week, Joe Romm said he doesn't see peak oil radically changing U.S. culture, since hybrids and plug-in hybrids will reduce the fuel necessary to get around. Matt Yglesias, reacting to a recent Michael Klare piece, "Beyond the Age of Petroleum," agrees with Joe, saying, "even current gasoline prices are actually quite low as a share of household income by historical standards so even if plug-in technology doesn't materialize (which is hard to believe) we're not on the precipice of such never-before-seen apocalypse."

Atrios weighs in here and here (as do his commenters, with a cumulative 861 [!] comments), saying, "rising oil/gas prices, over time, might impact peoples' behavior in terms of what kind of car they use and how much they use it. ... But ... it's just hard to see how any realistic scenario leads to the kind of of economic and social Armageddon that some authors predict."

The presumption shared by Joe, Matt, and Duncan -- and even by John, in arguing against Matt -- is that cars are the central issue here. Can drivers handle a hike in gas prices? Well, if that's the question, then sure, they can -- gas prices have risen sharply in the last couple years and the economy hasn't so much as twitched. Gas prices will keep going up, but hybrids will increase in market share, plug-ins will come online, and all will be well, right?

Now, I'm no peak oil doomer (by the way, when you're talking with peak oil types, be sure to use the word "doomer" frequently -- they love it!), but it seems to me this is a slightly pinched perspective on the oil problem. Transportation represents 69% of our oil use; light vehicles are 61% of that; thus, what all these folks are discussing, personal vehicles, are about 40% of overall U.S. oil consumption.

That 40% is worrisome, but the other 60% is what keeps the peak oilers up at night. Rapid and continuing escalation in the price of oil will affect virtually every corner of the economy. It will make raw materials more expensive to extract; construction more expensive; infrastructure improvement more expensive; shipping freight more expensive; industrial agriculture more expensive; food itself more expensive; on and on. Oil is not confined to the personal transportation sector -- it's the foundation of industrial economies.

Of course, there are a panoply of efficiency opportunities for every use of oil, not just personal vehicles. I don't expect "economic and social Armageddon" -- or more to the point, I don't like to make predictions, since I, like everyone else, have about as much chance of being right as a dart thrown at a dartboard filled with predictions.

But simply waving your hands toward more fuel efficient cars hardly makes the oil supply problem go away.

David Roberts is staff writer for Grist. You can follow his Twitter feed at twitter.com/drgrist.

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  1. Jon Rynn's avatar

    Jon Rynn Posted 5:51 am
    31 Oct 2007

    Industrial literacyMuch of the reason that various commentators aren't too worried about peak oil is because they are not very literate about how the various pieces of the economy fit together.  Oil use in factories, by the way, besides feedstocks, is negligible (electricity is critical there), so much of the peak oil doomer talk is also uninformed, insofar as we can keep factories going as long as there is...oy vay, coal (or god forbid renewable electricity).
    The rest of the oil use, besides cars and airplanes, is almost all internal combustion engines (by the way, I don't see the airline industry surviving in its current form with very expensive fuel).  So for the big machinery that is used for mining, for construction, and most importantly, for trucking (and some diesel rail) stuff all over the place, including shipping around the world, a rapidly rising oil price would be very painful.  It's not so much the production that would be hurt -- with the big exception of construction -- it's moving everything around.  In particular, trade would be devastated, which is why it's peculiar that American commentators in general, who are usually enamored of trade, are not more concerned -- or maybe they are just not aware of what makes trade possible, which is cheap oil.
  2. odograph Posted 5:58 am
    31 Oct 2007

    CreativityThere are a lot of creative responses yet to be explored.
    We are again arguing pre-adaptation, while "current gasoline prices are actually quite low as a share of household income by historical standards"
    We can pilot, test, report on our adaptation techniques, and they might be picked up as energy prices rise, and more people (each at their own individual threshold) respond.
    (I can report that my Prius works very well for me, though my adaptation in 2005 was "premature" by mainstream standards.)
  3. odograph Posted 6:00 am
    31 Oct 2007

    Corn EthanolBTW, it should be noted that not all experiments in adaptation are successful.  And one nice thing about a slow response is that we don't, in some huge misguided leap, put all our eggs in the wrong basket.
  4. John McGrath Posted 6:06 am
    31 Oct 2007

    Wait a minute!I went with cars because it's the issue Yglesias raised, not because I think, thought, or will think that cars are the sole important factor.
    That said, I think cars are a keystone that, if made oil-free with some speed, could buy the planet precious time.  When you consider that the EWG says we could be at 40 mbd of oil by 2030, we need to pick the low-hanging fruit fast, and personal vehicles are exactly that.  
  5. Sam Wells Posted 10:43 am
    31 Oct 2007

    Yup, light cars on gas gotta goIf you just look at EIA numbers for fuel and bunker use in the U.S., sure, light-duty vehicle take the cake with regards percentage of crude oil usage.  If you look at it from a global perspective, like ships and foreign transportation (e.g., COSTCO shipping from China) you might see a different picture about the "heavy duty engine" aspects.  
    But I think we still have a fundamental problem here.  Crude oil is refined not only into gasoline and distillates like diesel and heating oil, but also is used for everything from making dick rubbers to the material in computer disks.  Even pharmaceuticals are made from crude oil as refined, treated, and cultured.  So what if it is only 0.01 percent of the feedstock, when it is gone it is gone.
    Obviously, the hydrocarbon hose isn't going to be shut off tomorrow, but gradually lose pressure and become a trickle.  
    But be careful about what you hope for.  Some of you tend to gloat about dead gasoline cars on the side of the road, abandoned because there's no more gas.  "Neener neener neener I got me an electric!"
    You're talking about not only an engineering problem but a social one as well.  Be careful.  People have wars over this kind of chit.  /sammie

    Onward through the fog
  6. charlesjustice Posted 4:34 pm
    31 Oct 2007

    the coming stagflation Peak oil is going to hit the U.S. economy hard. The success of Industrialization has to do with cheap fossil fuels.  Our entire economic system depends on cheap energy. Once cheap energy  goes then economic growth slows At the same time the higher price of energy creates inflationary pressures because energy is the lynch pin of the economy.  Everything depends on it:  manufacturing, trade, transportation and housing...   We are looking at a return to the seventies style stagflation as costs go up and businesses go down the tube.  
        What we should be pushing is a massive upgrading of railroads and passenger trains as a way of creating a more energy efficient transportation system.
  7. odograph Posted 10:48 pm
    31 Oct 2007

    trainsThe WSJ reports that "Momentum is growing in Congress to bolster Amtrak and help states expand rail service as lawmakers grow concerned over global warming, transportation gridlock and high oil prices."
  8. FrankRichards Posted 11:31 pm
    31 Oct 2007

    A Problem with Numbers>>Progressive pundits don't seem to be fully grappling with the oil problem
    That would be because the overwhelming majority of them are innumerate. I won't speculate on cause and effect, but that is my observation from forty years of watching current events turn into history.
  9. odograph Posted 11:36 pm
    31 Oct 2007

    ProgressivesWell, as some oil-men like to point out, the left side of the aisle likes to go for the easy one: it's always the oil company's fault.
    When you think you can ride 'evil oil companies' to the next election, it's kind of hard to slow down and say that those companies might be facing a problem.
  10. sensato Posted 1:32 am
    01 Nov 2007

    And then there's foodThanks to the "Green Revolution" of the '50s and '60s, international agribusiness is now reliant on fossil fuel-based fertilizers.

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