We love our cars, our pickup trucks, and our SUVs. They present us
with the possible: freedom of movement, personal mobility. We are no
longer confined by the boundaries of local geography. The open road
calls. Owning a car has become a rite of passage to personal
independence. We have arrived.
And we built our national culture around this concept of personal
mobility. It sets the parameters of our space and time, enables the
range of daily activity, and expands the universe of opportunity.
Approximately 75 percent of America's 135 million workers commute to
work. Alone. One person to a vehicle. Only 12 percent of us bother
to car pool. Public transportation, once the primary means of
personal mobility, now accounts for under 5 percent of commuter
traffic – and this mostly in the highly populated North East
corridor. Of the remaining commuters, 3 percent walked to work and
just over one percent rode a bicycle or motorcycle or climbed into a
cab. The rest of us don't commute at all. We work from home.
Our average travel time to work is 25 minutes. But that statistic
doesn't mean much to the 10 million Americans whose daily commute to
work takes an hour or more, or the millions of Americans who find
themselves fighting frustrating freeway gridlock almost every day.
So here we are. The supreme irony.
We have become the captives of our freedom.
Every workday, over 117 million of us get into our vehicles to
begin the commuting ritual all over again. Doomed conformists
condemned to bear the stress and aggravation of congested freeways.
But wait. Aren't we overlooking something? See that river of
vehicles? Millions of engines burning gasoline and diesel fuels.
Clouds of hydrocarbon waste. We consumed - on average - over 555
million gallons each and every day in 2005. More than 4.8 billion
barrels of motor fuel in a year.(1) Poof. Gone forever. Can we
assume we will always have an unlimited supply of affordable fuels
to sustain our existing means of personal mobility?
No. Of course not. Shortages are coming. I cannot tell you when.
There are far too many variables. But the ominous signs are
everywhere. Fuel shortages. Higher prices.
Our future.
It's Happened in America.
Yes. Here in the United States. Three times in my lifetime.
Ration books in 1942. Long lines at the gas station in 1973. Tension
in 1979.
WW2
Although very young, I was acutely aware of WW2 gasoline
shortages. I was in charge of the ration stamps. Precious little
pieces of paper that bestow the freedom of personal transportation.
I hid them in a special place. Counted each one with care. Each
coupon was good for a little more of the precious fluid. Automobile
owners counted the days until the next issue of stamps were
scheduled to arrive. The distance of every trip was carefully
calculated. They knew to the drop how much gasoline was left in the
tank. And then a crucial decision. Is this trip really necessary?
I do not remember why we got gasoline ration stamps. We did not
have a car. But it was fortunate for our family we did get them.
They could be traded for ration coupons that allowed us to buy other
goods we needed in a land of shortages: food, shoes, fuel oil, and
so on. It was very sad. And frightening. More than once, someone
would knock at our door, pleading for a few pieces of paper.
And of course with rationing came a sleazy black market in stolen
and counterfeit stamps, competition among people of influence for
the special privilege of extra rations, and “back room” deals for
allocations of gasoline. All very ugly.
We were all very glad when WW2 ended.
1973 Oil Crisis
Egypt and Syria jointly attacked Israel on October 6, 1973, on
Yom Kippur, the holiest day of the Jewish calendar. Other Arab
states contributed troops and financial support. When America came
to Israel’s rescue, Saudi Arabia then led the Arab world in an oil
embargo imposed on the United States and other western nations.
Oil prices increased by 251 percent. The current rate of
inflation soared to 6.2 percent in 1973, 10.97 percent in 1974, and
9.14 percent in 1975. Unemployment reached 8.5 percent in 1975.
During this period, American oil consumption dropped by more than 4
percent, and oil consumption efficiency increased by over 20
percent.
Congress took desperate measures. It set a maximum highway speed
limit of 55 mph, ordered all new cars to have fuel economy stickers,
put daylight savings time into effect for the whole year, invoked a
car fuel economy standard of 27.5 mpg, and gave tax credits for the
development or use of alternative forms of energy. President Nixon
ordered the Department of Defense to stockpile oil reserves, had
rationing books printed (never used), called for voluntary
carpooling, and formed the Department of Energy.
Many gas stations closed on Sundays, refused to sell to customers
they did not know, and restricted fuel sales to 10 gallons per
vehicle. They often had no gasoline. Motorists waited in long lines
for a few gallons of the precious fluid. We turned down our
thermostats, burned more wood and coal, purchased fuel efficient
cars (mostly Japanese), and carpooled. The airline industry canceled
flights and raised the ticket prices.
The oil embargo triggered a worldwide recession. OPEC was now in
a position to manipulate world oil prices.
1978 Oil Crisis
President Jimmy Carter appeared on national television in 1977 to
declare America’s dependency on foreign oil to be “the moral
equivalent of war”. Few listened. Certainly not Congress.
That left America vulnerable – again – when the Shah of Iran was
deposed in 1979. Iranian oil production came to a standstill. Oil
production was further reduced when war erupted between Iraq and
Iran. Shortages pushed oil prices up 162 percent by 1980, and the
price of gasoline doubled by 1981. Inflation exceeded 10 percent per
year for three years in a row. By 1983, unemployment had reached 9.6
percent.
Tens of thousands of Americans waited – sometimes vainly – in
long lines at the filling station. There were shootings, riots and
strikes. Congress reinstated controls on gasoline consumption. Some
areas imposed an odd/even plan on gasoline purchases.
It took until 1983 to get inflation under control. Unemployment
finally declined to 5.5 percent in 1988.
It Happened in Cuba and Venezuela.
Two nations, Cuba (1991), and Venezuela (2002) have gone through
the chaos of oil shortages. In both cases, local meat production and
locally grown fruits and vegetables suddenly became very important.
Local community neighborhoods learned greater self-sufficiency. They
had to change their lifestyle in order to get by with less energy.
And they were forced to make these changes in a hurry.
Cuba 1991
Fidel Castro called it Período especial en tiempo de paz - "A
Special Period in a Time of Peace". It began in 1991, after the
collapse of the Soviet Union. It was a period of economic and
cultural crisis. Cuba suddenly found that Russia was no longer able
to supply it with the economic subsidies and oil products Cuba
needed to survive. Oil imports dropped by approximately 53 percent,
crippling Cuba's oil fired electric power system. Refrigeration and
air conditioning failed. Chronic power shortages crippled
transportation, agriculture, and industrial production. Estimated
GDP declined by 33 percent, real wages fell, and unemployment
soared. There were food shortages.(2) It has been reported that
Cuban adults lost an average of 20 pounds.
The Cuban people adapted to the crisis. From 1991 to 1995, they
introduced locally grown sustainable agriculture, overhauled their
economy, changed their diet, and adopted new lifestyles. They
innovated new modes of mass transit. Authorities enforced
car-pooling. Locally grown fresh vegetable production increased 10
fold. Annual population growth declined from .8 to .4 percent.
Eventually, GDP growth resumed. Although the Cuban people still have
severe economic problems, the "Special Period" got them through
their initial crisis.(3)
Although Castro runs Cuba like a socialist dictatorship, he did
not use coercion to meet the challenges of Cuba's "Peak Oil" crisis.
Instead, he loosened the reins on private enterprise. He told his
people that things would be very hard. The Cuban people were forced
to find their own solutions. They quickly figured out how to get by
with less energy.
In some ways, Cuba serves as a model for an energy detensive
economy. Cuba has ordered 8,000 high mileage buses from China as
well as 12 locomotives to build a rail system. They are continuing
the development of a surface mass transit system with trains to
travel the length of the island, replacing energy intensive air
travel. In January, 2006 Castro announced a plan to decentralize
Cuba’s power system, gradually replacing five decrepit
thermoelectric plants with smaller, regional plants supplemented by
solar and wind power. He also said Cuba had ordered more than 4,000
diesel and oil generators, with more than 3,000 already delivered.
Distributed local power systems are being implemented. Organic farms
and urban gardens. A home grown mass transportation system.
Decentralization and localization. That’s the plan. Conserve,
cutback, curtail, innovate and change. Emphasis on cooperation
rather than competition.(4)
Venezuela 2002
In less than 12 months Venezuela went through a political crisis
and a devastating economic crisis. The coup d’etat of April 11 was
followed by an oil industry lockout and strike that lasted from
December 2002 through February 2003. At the time, Venezuela depended
on oil for 80% of its export earnings, 50% of its government
revenue, and 30% of its GNP. Unfortunately, events drove oil
production down from approximately 3.2 million barrels per day in
October 2002 to a low of 25 thousand barrels per day in January of
2003. Production did not recover until May 2003.
Unemployment increased from 11 percent in 2001 to over 20 percent
in March 2003. Inflation rose from 12.5 percent in 2001 to 30
percent in 2002. The market for personal services was decimated.
Customers had neither transportation nor cash. The banking system
limited withdrawals. Small businesses were forced to close. Fuel
deliveries had to be protected by the National Guard. Consumers
waited for hours to fuel their cars and trucks. The availability of
air travel evaporated. Caracas became a ghost town. Only a few
abandoned cars could be found on previously busy 8 lane freeways.
Price regulation was introduced to prevent profiteering. There was a
shortage of food in urban areas. Thousands of farmers responded by
bringing locally produced meat, fruit and vegetables into the City.
This – in a nation with plenty of oil.
The resumption of oil production brought about economic relief
and life began to improve by the fall of 2003.
Conclusion
There are four concepts that thread their way through all five of
these oil shortages.
1. There was plenty of oil in the ground. These oil shortages had
nothing to do with world oil reserves or potential production. They
happened anyway.
2. All five oil shortages were related, or directly caused, by
cultural conflict. A world war. Two regional wars. Cold war
isolation. Internal political and labor strife. Above ground factors
caused a decline in oil production.
3. All five oil shortages had a chaotic impact on the affected
national economies. All had higher rates of inflation. With the
exception of WW2, all produced higher rates of unemployment. Real
GDP growth was erratic.
4. Government could not avert the economic or cultural impact of
an oil shortage. People had to fend for themselves. Solve their own
problems. Adjust their own lifestyles. We had to solve our personal
transportation problems, find new jobs, scramble for food resources,
learn to conserve fuels, improve energy efficiency, and so on.
Government regulation and welfare could only provide a minimum of
support.
On the other hand, we have to be impressed by the resiliency of
the human spirit. In every case, we did adjust, we did innovate, we
did take the initiative, and we did survive.
So, here we are.
Every week, thousands of trucks ply our freeway system,
delivering vital goods and services to our communities. They all run
on fuels derived from oil. Every day, thousands upon thousands of
containers move over our docks, millions of passengers land at our
airports, and multiple thousands of rail freight cars move through
our nation. All powered by oil. Every workday roads are paved, roofs
are replaced, tires are changed, prescriptions are filled, lawns are
fertilized, bugs are sprayed, and garments are purchased. All of
these transactions depend on the unlimited availability of low cost
oil.
We are a voracious consumer of energy. We have developed an
energy intensive economy and lifestyle. Our culture assumes energy
will always be inexpensive and readily available. Our values, laws,
regulations, social customs, ambitions, and social progress have
been inexorably linked the ever-increasing consumption of coal, oil
and natural gas. Material abundance and population growth mirror
energy consumption. The freedom of personal mobility is ingrained
into our psyche. These things, we believe, are a natural right.
They are not.
America is vulnerable to an energy shortage. We almost had
another one in 2005. And eventually a chronic downtrend in energy
consumption will occur because it is no longer affordable or readily
available. We are going to learn to live in an energy detensive
world. Our energy intensive lifestyle will give way to a daily
routine that consumes less energy.
Detensive. The word of our future.
References
(1) Source: U.S. Energy Information Administration
(2) Portions of the information on Cuba courtesy of Megan Quinn,
Outreach Director, for The Community Solution, a program of
Community Service Inc., a nonprofit organization in Yellow Springs,
Ohio. This article appeared in the special Peak Oil issue of
Permaculture Activist, Spring 2006
http://www.permacultureactivist.net/.
(3)For more information about the Cuban experience, do an
Internet search on "Cuba GDP 1991 2000" or go to www.state.gov and
search for "Cuba: Economic Summary".
(4)In June 2005, President Fidel Castro spoke at the inaugural
session of the First PetroCaribe Energy Summit of Caribbean Heads of
State and Government. He said that an oil crisis is just around the
corner, "it will take place during the current decade". Castro
believes the human species faces possible extinction because it is
running out of mineral resources. He also said that no Caribbean
country will be able to afford to purchase oil if it exceeds $100 a
barrel. The solution? Reduce oil consumption by two-thirds.
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