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The Logic of Abundance

The last several posts here on The Archdruid Report have focused on the ramifications of a single concept – the importance of energy concentration, as distinct from the raw quantity of energy, in the economics of the future. This concept has implications that go well beyond the obvious, because three centuries of unthinking dependence on highly concentrated fossil fuels have reshaped not only the economies and the cultures of the industrial West, but some of our most fundamental assumptions about the universe, in ways all too likely to be disastrously counterproductive in the decades and centuries ahead of us.

Ironically enough, given the modern world’s obsession with economic issues, one of the best examples of this reshaping of assumptions by the implications of cheap concentrated energy has been the forceful resistance so many of us put up nowadays to thinking about technology in economic terms. It should be obvious that whether or not a given technology or suite of technologies continues to exist in a world of depleting resources depends first and foremost on three essentially economic factors. The first is whether the things done by that technology are necessities or luxuries, and if they are necessities, just how necessary they are; the second is whether the same things, or at least the portion of them that must be done, can be done by another technology at a lower cost in scarce resources; the third is how the benefits gained by keeping the technology supplied with the scarce resources it needs measures up to the benefits gained by putting those same resources to other uses.

Nowadays, though, this fairly straightforward calculus of needs and costs is anything but obvious. If I suggest in a post here, for example, that the internet will fail on all three counts in the years ahead of us – very little of what it does is necessary; most of the things it does can be done with much less energy and resource use, albeit at a slower pace, by other means; and the resources needed to keep it running would in many cases produce a better payback elsewhere – you can bet your bottom dollar that a good many of the responses will ignore this analysis entirely, and insist that since it’s technically possible to keep the internet in existence, and a fraction of today’s economic and social arrangements currently depend on (or at least use) the internet, the internet must continue to exist. Now it’s relevant to point out that the world adapted very quickly to using email and Google in place of postage stamps and public libraries, and will doubtless adapt just as quickly to using postage stamps and libraries in place of email and Google if that becomes necessary, but this sort of thinking – necessary as it will be in the years to come – finds few takers these days.

This notion that technological progress is a one-way street not subject to economic limits invites satire, to be sure, and I’ve tried to fill that need more than once in the past. Still, there are deep issues at work that also need to be addressed. One of them, which I’ve discussed at length elsewhere, is the way that progress has taken on an essentially religious value in the modern world, especially but not only among those who reject every other kind of religious thinking. Still, there’s another side to it, which is that for the last three hundred years those who believed in the possibilities of progress have generally been right. There have been some stunning failures to put alongside the successes, to be sure, but the trajectory that reached its climax with human footprints on the Moon has provided a potent argument supporting the idea that technological complexity is cumulative, irreversible, and immune to economic concerns.

The problem with that argument is that it takes the experience of an exceptional epoch in human history as a measure for human history as a whole. The three centuries of exponential growth that put those bootprints on the gray dust of the Sea of Tranquillity were made possible by the conjunction of historical accidents and geological laws that allowed a handful of nations to seize the fantastic treasure of highly concentrated energy buried in the Earth’s fossil fuels and burn through it at ever-increasing rates, flooding their economies with almost unimaginable amounts of cheap and highly concentrated energy. It’s been fashionable to assume that the arc of progress was what made all that energy available, but there’s very good reason to think that this puts the cart well in front of the horse. Rather, it was the huge surpluses of available energy that made technological progress both possible and economically viable, as inventors, industrialists, and ordinary people all discovered that it really was cheaper to have machines powered by fossil fuels take over jobs that had been done for millennia by human and animal muscles, fueled by solar energy in the form of food.

The logic of abundance that was made plausible as well as possible by those surpluses has had impacts on our society that very few people in the peak oil scene have yet begun to confront. For example, many of the most basic ways that modern industrial societies handle energy make sense only if fossil fuel energy is so cheap and abundant that waste simply isn’t something to worry about. One of this blog’s readers, Sebastien Bongard, pointed out to me in a recent email that on average, only a third of the energy that comes out of electrical power plants reaches an end user; the other two-thirds are converted to heat by the electrical resistance of the power lines and transformers that make up the electrical grid. For the sake of having electricity instantly available from sockets on nearly every wall in the industrial world, in other words, we accept unthinkingly a system that requires us to generate three times as much electricity as we actually use.

In a world where concentrated energy sources are scarce and expensive, many extravagances of this kind will stop being possible, and most of them will stop being economically feasible. In a certain sense, this is a good thing, because it points to ways in which nations facing crisis because of a shortage of concentrated energy sources can cut their losses and maintain vital systems. It’s been pointed out repeatedly, for example, that the electrical grids that supply power to homes and businesses across the industrial world will very likely stop being viable early on in the process of contraction, and some peak oil thinkers have accordingly drawn up nightmare scenarios around the sudden and irreversible collapse of national power grids. Like most doomsday scenarios, though, these rest on the unstated and unexamined assumption that everybody involved will sit on their hands and do nothing as the collapse unfolds.

In this case, that assumption rests in turn on a very widespread unwillingness to think through the consequences of an age of contracting energy supplies. The managers of a power grid facing collapse due to a shortage of generation capacity have one obvious alternative to hand: cutting nonessential sectors out of the grid for as long as necessary, so the load on the grid decreases to a level that the available generation capacity can handle. In an emergency, for example, many American suburbs and a large part of the country’s nonagricultural rural land could have electrical service shut off completely, and an even larger portion of both could be put on the kind of intermittent electrical service common in the Third World, without catastrophic results. Of course there would be an economic impact, but it would be modest in comparison to the results of simply letting the whole grid crash.

Over the longer term, just as the twentieth century was the era of rural electrification, the twenty-first promises to be the era of rural de-electrification. The amount of electricity lost to resistance is partly a function of the total amount of wiring through which the current has to pass, and those long power lines running along rural highways to scattered homes in the country thus account for a disproportionate share of the losses. A nation facing prolonged or permanent shortages of electrical generating capacity could make its available power go further by cutting its rural hinterlands off the power grid, and leaving them to generate whatever power they can by local means. Less than a century ago, nearly every prosperous farmhouse in the Great Plains had a windmill nearby, generating 12 or 24 volts for home use whenever the wind blew; the same approach will be just as viable in the future, not least because windmills on the home scale – unlike the huge turbines central to most current notions of windpower – can be built by hand from readily available materials. (Skeptics take note: I helped build one in college in the early 1980s using, among other things, an old truck alternator and a propeller handcarved from wood. Yes, it worked.)

Steps like this have seen very little discussion in the peak oil scene, and even less outside it, because the assumptions about technology discussed earlier in this post make them, in every sense of the word, unthinkable. Most people in the industrial world today seem to have lost the ability to imagine a future that doesn’t have electricity coming out of a socket in every wall, without going to the other extreme and leaning on Hollywood clichés of universal destruction. The idea that some of the most familiar technologies of today may simply become too expensive and inefficient to maintain tomorrow is alien to ways of thought dominated by the logic of abundance.

That blindness, however, comes with a huge price tag. As the age of abundance made possible by fossil fuels comes to its inevitable end, a great many things could be done to cushion the impact. Quite a few of these things could be done by individuals, families, and local communities – to continue with the example under discussion, it would not be that hard for people who live in rural areas or suburbs to provide themselves with backup systems using local renewable energy to keep their homes viable in the event of a prolonged, or even a permanent, electrical outage. None of the steps involved are hugely expensive, most of them have immediate payback in the form of lower energy bills, and local and national governments in much of the industrial world are currently offering financial incentives – some of them very robust – to those who do them. Despite this, very few people are doing them, and most of the attention and effort that goes into responses to a future of energy constraints focuses on finding new ways to pump electricity into a hugely inefficient electrical grid, without ever asking whether this will be a viable response to an age when the extravagance of the present day is no longer an option.

This is why attention to the economics of energy in the wake of peak oil is so crucial. Could an electrical grid of the sort we have today, with its centralized power plants and its vast network of wires bringing power to sockets on every wall, remain a feature of life throughout the industrial world in an energy-constrained future? If attempts to make sense of that future assume that this will happen as a matter of course, or start with the unexamined assumption that such a grid is the best (or only) possible way to handle scarce energy, and fixate on technical debates about whether and how that can be made to happen, the core issues that need to be examined slip out of sight. The question that has to be asked instead is whether a power grid of the sort we take for granted will be economically viable in such a future – that is, whether such a grid is as necessary as it seems to us today; whether the benefits of having it will cover the costs of maintaining and operating it; and whether the scarce resources it uses could produce a better return if put to work in some other way.

Local conditions might provide any number of answers to that question. In some countries and regions, where people live close together and renewable energy sources such as hydroelectric power promise a stable supply of electricity for the relatively long term, a national grid of the current type may prove viable. In others, as suggested above, it might be much more viable to have restricted power grids supplying urban areas and critical infrastructure, while rural hinterlands return to locally generated power or to non-electrified lifestyles. In still others, a power grid of any kind might prove to be economically impossible.

Under all these conditions, even the first, it makes sense for governments to encourage citizens and businesses to provide as much of their own energy needs as possible from locally available, diffuse energy sources such as sunlight and wind. (It probably needs to be said, given current notions about the innate malevolence of government, that whatever advantages might be gained from having people dependent on the electrical grid would be more than outweighed by the advantages of having a work force, and thus an economy, that can continue to function on at least a minimal level if the grid goes down.) Under all these conditions, it makes even more sense for individuals, families, and local communities to take such steps themselves, so that any interruption in electrical power from the grid – temporary or permanent – becomes an inconvenience rather than a threat to survival.

A case could easily be made that in the face of a future of very uncertain energy supplies, alternative off-grid sources of space heating, hot water, and other basic necessities are as important in a modern city as life jackets are in a boat. An even stronger case could be made that individuals and groups who hope to foster local resilience in the face of such a future probably ought to make such simple and readily available technologies as solar water heating, solar space heating, home-scale wind power, and the like central themes in their planning. Up to now, this has rarely happened, and the hold of the logic of abundance on our collective imagination is, I think, a good part of the reason why.

What makes this even more important is that the electrical power grid is only one example, if an important one, of a system that plays a crucial role in the way people live in the industrial world today, but that only makes sense in a world where energy is so abundant that even huge inefficiencies don’t matter. It’s hardly a difficult matter to think of others. To think in these terms, though, and to begin to explore more economical options for meeting individual and community needs in an age of scarce energy, is to venture into a nearly unexplored region where most of the rules that govern contemporary life are stood on their heads. We’ll map out one of the more challenging parts of that territory in next week’s post.

What do you think? Leave a comment below.

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