Sonntag, 14. Dezember 2014

Peak oil etc.

This is a very interesting idea about Peak Oil from the poster Richard at WUWT. It shows that nearly every thing is infinite.

The fallacy of overpopulation derives from the disproved Malthusian idea which wrongly assumes that humans are constrained like bacteria in a Petri dish: i.e. population expands until available resources are consumed when population collapses. The assumption is wrong because humans do not suffer such constraint: humans find and/or create new and alternative resources when existing resources become scarce.
The obvious example is food.
In the 1970s the Club of Rome predicted that human population would have collapsed from starvation by now. But human population has continued to rise and there are fewer starving people now than in the 1970s; n.b. there are less starving people in total and not merely fewer in in percentage.
Now, the most common Malthusian assertion is ‘peak oil’. But humans need energy supply and oil is only one source of energy supply. Adoption of natural gas displaces some requirement for oil, fracking increases available oil supply at acceptable cost; etc..
In the real world, for all practical purposes there are no “physical” limits to natural resources so every natural resource can be considered to be infinite; i.e. the human ‘Petri dish’ can be considered as being unbounded. This a matter of basic economics which I explain as follows.
Humans do not run out of anything although they can suffer local and/or temporary shortages of anything. The usage of a resource may “peak” then decline, but the usage does not peak because of exhaustion of the resource (e.g. flint, antler bone and bronze each “peaked” long ago but still exist in large amounts).
A resource is cheap (in time, money and effort) to obtain when it is in abundant supply. But “low-hanging fruit are picked first”, so the cost of obtaining the resource increases with time. Nobody bothers to seek an alternative to a resource when it is cheap.
But the cost of obtaining an adequate supply of a resource increases with time and, eventually, it becomes worthwhile to look for
(a) alternative sources of the resource
(b) alternatives to the resource.
And alternatives to the resource often prove to have advantages.
For example, both (a) and (b) apply in the case of crude oil.
Many alternative sources have been found. These include opening of new oil fields by use of new technologies (e.g. to obtain oil from beneath sea bed) and synthesising crude oil from other substances (e.g. tar sands, natural gas and coal). Indeed, since 1994 it has been possible to provide synthetic crude oil from coal at competitive cost with natural crude oil and this constrains the maximum true cost of crude.
Alternatives to oil as a transport fuel are possible. Oil was the transport fuel of military submarines for decades but uranium is now their fuel of choice.
There is sufficient coal to provide synthetic crude oil for at least the next 300 years. Hay to feed horses was the major transport fuel 300 years ago and ‘peak hay’ was feared in the nineteenth century, but availability of hay is not a significant consideration for transportation today. Nobody can know what – if any – demand for crude oil will exist 300 years in the future.
Indeed, coal also demonstrates an ‘expanding Petri dish’.
Spoil heaps from old coal mines contain much coal that could not be usefully extracted from the spoil when the mines were operational. Now, modern technology enables the extraction from the spoil at a cost which is economic now and would have been economic if it had been available when the spoil was dumped.
These principles not only enable growing human population: they also increase human well-being.
The ingenuity which increases availability of resources also provides additional usefulness to the resources. For example, abundant energy supply and technologies to use it have freed people from the constraints of ‘renewable’ energy and the need for the power of muscles provided by slaves and animals. Malthusians are blind to the obvious truth that human ingenuity has freed humans from the need for slaves to operate treadmills, the oars of galleys, etc..
And these benefits also act to prevent overpopulation because population growth declines with affluence. 
There are several reasons for this. Of most importance is that poor people need large families as ‘insurance’ to care for them at times of illness and old age. Affluent people can pay for that ‘insurance’ so do not need the costs of large families.
The result is that the indigenous populations of rich countries decline. But rich countries need to sustain population growth for economic growth so they need to import – and are importing – people from poor countries. Increased affluence in poor countries can be expected to reduce their population growth with resulting lack of people for import by rich countries.
Hence, the real foreseeable problem is population decrease; n.b. not population increase. 
All projections and predictions indicate that human population will peak around the middle of this century and decline after that. So, we are confronted by the probability of ‘peak population’ resulting from growth of affluence around the world.
The Malthusian idea is wrong because it ignores basic economics and applies a wrong model; human population is NOT constrained by resources like the population of bacteria in a Petri dish. There is no existing or probable problem of overpopulation of the world by humans.

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