tag: Economics



17
Jan 2008

Oil companies and Climate Change

UPDATE 20-03-2008: A significant error has been revealed in a section of the following post (relating to the amount of CO2 that would have been captured by BP’s Miller Field CCS project). For details of this error, please read the correction / apology: Oil companies and Climate Change Redux. For the calculation estimating the quantity of CO2 emitted by a single barrel of oil, please see: Carbon dioxide emissions per barrel of crude.

This article, therefore, remains as merely a cautionary example about placing too much faith in published figures, and should be disregarded.


Merrick‘s writing an article about the use of hydrogen as fuel (sneak preview: he’s not uncritical of the idea. Update: here’s that article.) and encountered this particular proposal by BP. Now, while the project won’t be going ahead, the proposal itself makes fascinating reading. The basic idea goes something like this…

Instead of building a new Natural Gas power station, BP proposed to build a two-stage plant. Stage 1 would extract the hydrogen from the Natural Gas. Stage 2 would burn the hydrogen to generate electricity. The only emission from burning hydrogen is pure water. Notch one up for the fight against Climate Change, and drinks are on me! BP go so far as to claim this process results in 90% less CO2 emissions than through burning the Natural Gas directly. Which by any standards is pretty damn impressive.

Except. Well… except it’s not really. Because if you step back to Stage 1 of the process, it turns out that extracting hydrogen from Natural Gas leaves you with large amounts of waste, in the form of… you guessed it… CO2 gas. Makes you start wondering what the hell Stage 1 is actually achieving, right? But hey, chill out, all is not lost. Rather than release this CO2 into the atmosphere (which would make the whole hydrogen extraction process singularly pointless) BP instead proposed to capture it. They’d simply pump it into one of their old oil wells that was entering decline, and Bob’s your rather expensive, but nonetheless low-carbon, uncle.

You know what? As a way to reduce the carbon emissions of a Natural Gas power station, that’s really not a bad idea. The electricity produced would be a good deal more expensive (that hydrogen extraction process doesn’t come for free, energetically speaking, and nor does compressing and pumping CO2 deep underground) but it would be far less of a contributor to Climate Change. Based on the planned capacity and lifetime of the plant proposed by BP, there’d be 1.3 million tonnes of CO2 captured that would otherwise have been emitted as a result of burning Natural Gas.

I’ll go on record and state that in principle this is an interesting way to exploit Natural Gas if you are committed to using Gas in the first place*. And if that were the end of the story, this would be an article praising an oil company for getting something right. Which are few and far between in this neck of the woods.

Think like an Oil Company

But that’s not the end of the story. So I’m afraid my praise shan’t be forthcoming. BP have added a little kicker to sweeten the deal for themselves. In what is — and I say this without hyperbole — one of the most astonishing examples of Orwellian doublethink in corporate literature, this kicker appears under the heading “Industrial-scale decarbonized fuels project”:

… the carbon dioxide would be transported by an existing pipeline and injected for enhanced oil recovery and long-term geological storage in the Miller Field. Injecting the carbon dioxide into the Miller Field reservoir more than three kilometers under the seabed could extend the life of the field by about 20 years and enable additional production of about 40 million barrels of oil that are not currently recoverable.

When operational, it is planned that DF1 will create 350 megawatts of carbon-free electricity, enough to power a quarter of a million homes in the UK. The project would also permanently store 1.3 million tonnes of carbon dioxide, the equivalent of removing 300,000 cars from the roads.

See that? The way they just slipped it in there? In return for the 1.3 million tonnes of carbon captured, they’re getting to extract 40 million barrels of oil that would otherwise have remained underground and consequently in very little danger of being converted to atmospheric CO2. Suddenly this isn’t looking like such a great deal for the environment after all. But let’s not be too hasty, how much atmospheric CO2 will be produced from 40 million barrels of oil? If it’s less than 1.3 million tonnes, then we can perhaps, albeit grudgingly, still accept the proposal as better than just burning the Natural Gas. After all, it’s not like we really expected an oil company to be doing something for the greater good. If we’re honest with ourselves, we were always looking for the ulterior motive even as we hoped against hope that it might not be there this time.

So, all that’s left is to find out how much CO2 would get emitted by 40 million barrels of oil, and we’ll know just how much this industrial-scale decarbonized fuels project is benefiting the fight against Climate Change.

It was at this point that Merrick emailed me with the question, “how much CO2 gets emitted when we consume a barrel of oil?” And it got me thinking…

How much carbon per barrel?

I’m afraid there’s no precise answer. No simple formula.

Crude oil is (almost) never used directly. Instead it’s refined into all manner of interesting chemicals, most of which we burn in various engines, but some of which never get converted into CO2 (lubricant oils, plastics, asphalt, etc.). Different grades of crude oil will produce significantly different amounts of each. So a barrel of light / sweet crude might produce lots of petrol and kerosene but only a small amount of asphalt (as a very simple example). But a barrel of heavy / sour crude would produce more asphalt (still less than the amount of petrol produced, but more in comparison with the sweeter oil). This means that, ironically, less of the heavier and more sulphuric stuff, although it’s called sour (and sometimes “dirty”) oil tends to end up as atmospheric CO2 (we coat our roads with it instead).

While we could, no doubt, work out a figure for the CO2 emitted by burning a given barrel of crude oil, it would be very much a red-herring as it almost never happens. To get any meaningful figure for CO2 emitted per barrel we’re going to need to do our calculations on the products of crude oil.

First up, let’s be clear that this is real back-of-the-fag-packet stuff and I welcome input and corrections to this calculation. That said, let’s see if we can’t get some kind of number.

The oil being discussed here is from a North Sea field, so I’m going to assume that it is at least average quality (i.e. we’re not talking about some kind of heavy sulphuric sludge or tar-sand here). Taking Riegel’s Handbook of Industrial Chemistry as our guide, we know that the average barrel (~159 litres) of crude oil to pass through U.S. refineries in 1995** yielded the following products…

1. Gasoline: 44.1% (70.12 litres)
2. Distillate fuel oil: 20.8% (33.07 litres)
3. Kerosene-type jet fuel: 9.3% (14.79 litres)
4. Residual fuel oil: 5.2% (8.27 litres)***

Percentage values from Riegel’s Handbook of Industrial Chemistry, 2003 edition (Page 515, Fig. 15.6). Litre values based upon conversion rate of 159 litres per barrel.

I’m going to be very charitable to the BP project and assume that none of the other products**** will end up as atmospheric CO2. They all have sufficient alternative uses to make this possible even if not 100% plausible. Of the four grades of fuel listed above, however, it’s fair to say all of it is destined to be burnt.

The litre values are no good to us by themselves. Each of the fuels has a different specific gravity (a different weight per litre), and it’s the weight of carbon we’re looking for, not the volume. Once we’ve multiplied the volume of each fuel by it’s specific gravity we’ll have a rough “kilogram per barrel” number for each fuel.

1. Gasoline: 70.12 litres x 0.74 = 51.89kg
2. Distillate fuel oil: 33.07 litres x 0.88 = 29.10kg
3. Kerosene-type jet fuel: 14.79 litres x 0.82 = 12.13kg
4. Residual fuel oil: 8.27 litres x 0.92 = 7.61kg*****

Overall, this suggests that the average barrel of crude refined in the United States in 1995 yielded a shade over 100kg of liquid fuels (that’s an uncannily round number… 100.73kg to be exact). Now, we know that a carbon-based fuel will emit 3.15 times its own weight in CO2 when burnt (Source: Calculating the Environmental Impact of Aviation Emissions, Oxford University Study, PDF file). This may seem anti-intuitive at first glance, but it’s a result of each atom of carbon reacting with two atoms of oxygen to produce CO2. The “extra” weight is being drawn from the air (hence why a fuel fire will die out if deprived of oxygen).

Using the 3.15 multiplier, we see that the combined liquid fuels from an average barrel of crude oil will produce roughly 317kg of CO2 when consumed. This means that 40 million barrels will produce 12,680,000,000kg. Or 12.68 million tonnes of CO2. That’s almost ten times the 1.3 million tonnes BP said would be captured.

As an attempt to reduce atmospheric CO2, it’s utterly risible. And describing it as an “industrial-scale decarbonized fuels project” is surely against some kind of trades-description legislation.

Even if this were the lowest grade North Sea crude imaginable, I’m confident that it would be producing at least 75% of the liquid fuels cited in the above “average” barrel. And if it’s higher than average quality, they might even get an extra 10%. So to be absolutely fair, we should calculate a likely range depending upon the crude. Take the 12.68 million tonnes figure, first reduce it by a quarter to get the potential minimum (9.51 million tonnes of CO2). Second increase it by 10% for the potential maximum (13.95 million tonnes of CO2).

9.51 to 13.95 million tonnes of CO2. That’s certainly a wide range, and it can’t be narrowed without knowing the specifics of the oil in question. But even the lowest number is far higher than the 1.3 million tonnes of CO2 that would have been sequestered by the project.

I’m hardly the first person to do the maths on this; surely it’s occurred to somebody at BP already. Surely they’re aware that describing the project as an “industrial-scale decarbonized fuels project” is, in every sense that actually matters, a bare-faced lie. That at a minimum, the extra oil gained in the project would emit over 7 times the CO2 as was captured.

In May 2007 BP cancelled the plan, citing governmental delays in approving the project and in providing adequate incentives. The Miller oil field is reaching the end of its life, and they needed the CO2 in a hurry to extend it. The capturing of 1.3 million tonnes of carbon was never a goal in itself; it was merely a way to falsely paint the project as a way to combat Climate Change. In doing so, BP would then be in a position to drain public money ear-marked for just that purpose (in the form of planning short-cuts, tax-relief and whatever else can be clawed from the pot to incentivise investment in carbon-reduction technologies).

Let’s be very clear about this. BP attempted to dupe the public into backing a project on the basis that it would combat Climate Change, despite (surely!) being well aware that in reality it would demonstrably increase emissions. That’s about as low, as craven… as anti-human as it’s possible to get. And while that may well be normal behaviour for a corporation, we’re complete fools if we consider it acceptable.

* It goes without saying that given the natural resources available to us in this part of the world, all investment in new generating capacity should be in wind and sea.

** I don’t have more recent numbers, but there’s no reason to assume 1995 wasn’t a representative year.

*** 1: automobile grade fuel. 2: includes home heating oil and transportation diesel. 4: industrial grade fuel oils; used in ships and oil-burning power plants.

**** Still gas, coke, asphalt, road oil, petrochemical feed stocks, lubricants, etc.

***** Specific gravities taken from this list. The value of 0.92 is an educated guess for what is a mixture of heavy oils with a range of specific gravities. I will gladly accept correction if someone can point me towards a more accurate number.

UPDATE (16:10): The original date for the cancellation of the project was given as February 2007. In fact it was May 2007. The second-last paragraph has been updated to reflect this. Also, the final two paragraphs were substantially rewritten at the same time. The phrasing was pretty clumsy first time round.
UPDATE (22-01-2008): Although the project proposed by BP for the Miller Field in the North Sea has been cancelled, the principle is clearly an attractive one to oil companies. The government of Abu Dhabi appears to be contemplating just such a scheme, though on an even larger scale. This line from the BBC article made me smile: “The CO2 can be pumped underground, either simply to store it away permanently or as a way of extracting more oil from existing wells, using the high-pressure gas to force more of the black gold to the surface.” Hmmm… is anyone really dumb enough to believe the third largest oil producer in the Gulf won’t use the captured carbon as a tool to extract more oil? So, given what we know from the above calculation, Richard Black, the BBC’s Environment Correspondent, is dangerously wrong when he introduces carbon sequestration as a “technolog[y] likely to be important in a low-carbon future”.

12 comments  |  Posted in: Opinion


21
Jul 2007

I've waited for years to use it…

D: … but what about Adam Smith’s Invisible Hand?
jim: Sorry, but I just can’t take anything seriously that’s named after a 50s B-movie.

2 comments  |  Posted in: Opinion


29
Jun 2007

Biofuels: Genocide with a greenwash

Today the Financial Times reports that BP has begun to significantly invest in biofuel technology, and this week alone has signed two deals to fund biofuel projects…

BP is to invest at least £32m in a joint venture with D1 Oils, the quoted UK based alternative fuels company, to develop the inedible oilseed Jatropha as a biodiesel.

The move is the latest escalation of BP’s move into alternative fuels, following its $400m investment in a joint bioethanol plant with Associated British Foods and DuPont announced earlier this week.

Meanwhile Grain, an organisation representing poor farmers in developing countries, has devoted the entirety of the latest issue of their journal, Seedling, to savagely lambasting the biofuel industry and exposing the extreme destruction it’s causing. The issue can be downloaded (3.4MB PDF) and I urge anyone with an interest in this subject to do so. The editorial opens as follows…

We are devoting almost all of this edition to a single topic — the rapid expansion of biofuels across much of the globe. In the process of gathering material from colleagues and social movements around the world, we have discovered that the stampede into biofuels is causing enormous environmental and social damage, much more than we realised earlier. Precious ecosystems are being destroyed and hundreds of thousands of indigenous and peasant communities are being thrown off their land. We believe that the prefix bio, which comes from the Greek word for “life”, is entirely inappropriate for such anti-life devastation. So, following the lead of non-governmental organisations and social movements in Latin America, we shall not be talking about biofuels and green energy. Agrofuels is a much better term, we believe, to express what is really happening: agribusiness producing fuel from plants to sustain a wasteful, destructive and unjust global economy.

We begin with an introductory article that, among other things, looks at the mind-boggling numbers that are being bandied around: the Indian government is talking of planting 14 million hectares of land with jatropha; the Inter-American Development Bank says that Brazil has 120 million hectares that could be cultivated with agrofuel crops; and an agrofuel lobby is speaking of 379 million hectares being available in 15 African countries. We are talking about expropriation on an unprecedented scale.

But you don’t need to take the word of Grain. After all, they’re an organisation with the radical agenda of “promot[ing] the sustainable management and use of agricultural biodiversity based on people’s control over genetic resources and local knowledge”. Instead ask the UN’s Food and Agriculture Organization. They report that “basic food prices for poor countries are being pushed up by competition for land from biofuels” (BBC article). And this is an industry that’s only just getting going! It is absolutely imperative that it doesn’t get much further. Because if the plan is to replace any liquid fossil-fuel shortfall created by a peak in oil production with agrofuels (and certainly that seems to be BP’s plan), then it will almost certainly result in one of the most devastating famines in history. Millions will die. Because wealthy car owners in the USA, UK, Ireland or Japan are able, and willing, to pay more for a tank of jatropha-seed-oil than a Malawian or Ethiopian can afford to pay for a loaf of bread.

And it’s not even as if a switch to agrofuels would help address that other looming crisis — climate change. It will just make that situation worse too.

UPDATE: For lots more info, check out Biofuelwatch (http://www.biofuelwatch.org.uk/)

2 comments  |  Posted in: Opinion


19
Mar 2007

Food miles. More complicated than you may think.

For me, food miles have become the single biggest factor when I do my weekly shop. They over-ride pretty much all other considerations these days. “Nothing from outside Europe” is the basic rule… broken only very rarely for certain tropical fruit. Usually in a fit of “Goddamn it! Mango is my favourite food! We’re all going to die someday and I’m denying myself my favourite food! It’s right there in front of me, for a price I can afford. I’m surrounded by people buying apples flown in from Chile despite the fact that they’re on a shelf next to some Irish ones and I’m denying myself a single mango. I’m a frakking hair-shirted weirdo! That’s it! I’m buying one!”

And yes, I do use that many exclamation marks when I’m thinking about it.

But by and large I spend time making sure that everything I buy is sourced from as close to me as is possible. I vividly recall standing in the supermarket one afternoon and pointing out to the woman next to me that she was buying Chilean apples rather than Irish ones. I’ll never forget the look of contempt I got… “I’ll buy what I want!” she insisted in brittle tones. There’s a part of me convinced that she now goes out of her way to buy food from the furthest flung corners of the earth just to spite me. She had that kind of look in her eyes and a terrible hiss in her voice.

It’s a little disheartening to say the least; the thought that my watchful attitude towards food miles is now merely balancing out the damage done by saying, “Excuse me, but did you realise that by choosing the Irish apples you’d be doing your part to combat Climate Change?” in as friendly a voice as serious ol’ me is capable.

Of course, it’s not quite as simple as “Buy homegrown. Save the planet. Everyone lives happily ever after.” Because nothing’s ever that simple. Well, almost nothing. In fact it’s questionable as to whether it’s even possible any more. Can Europe grow enough food to support its population? According to the Optimum Population Trust (OPT), for example, it most certainly can’t. They claim that Western Europe’s arable land is only capable of carrying approximately a third of our current population at “present lifestyle”. This number increases to two thirds if we reduce our levels of consumption to what OPT describes as a “modest lifestyle”.

You can download the Excel Spreadsheet containing detailed global numbers, but for a brief flavour of OPT’s calculations; with zero food imports, the UK has a ‘present lifestyle’ carrying capacity of less than one third its current population. Belgium and Luxembourg; one tenth. France; a half. Germany; a quarter. Holland; one eighth. And so on.

The only Western European nations that come even close to being able to support their own populations at current levels of consumption are Finland, Ireland and Sweden. If you reduce consumption to modest levels, you can add Norway and Denmark to that list. The implications are clear… unless Europe reduces its population significantly, it will need to continue to import large amounts of food from Africa and elsewhere just to prevent starvation (note: this is even if we restrict our consumption to sensible / modest levels).

And that’s not the end of the story either. Hypothetically, what if Western Europe was suddenly capable of supporting the current population? Would we find ourselves in the “Buy homegrown. Save the planet. Everyone lives happily ever after.” situation? Sadly not. As this post over at worldchanging (via Gyrus) makes clear, Western Europe’s voracious appetite has led to a large number of poorer nations retooling their entire economy to function as an extension of European arable land. Huge areas of Kenya, for instance, are devoted to growing salad vegetables for European tables. If that market disappears, it will result in significant problems for Kenyan farmers.

Of course, I’m not suggesting that’s a good enough reason for us to be flying mange-tout and sugar-snap peas up from the equator. Frankly when you realise that amongst the nations bordering Kenya are three (Ethiopia, Sudan and Somalia) which suffer regular devastating famines, the fact that Kenya is growing baby corn for our salads instead of regular corn to prevent local starvation becomes rather sinister. We all know the old cliché that famine is not a result of food shortages, but is instead a consequence of inequitable distribution and political corruption. Nonetheless, how many of us are aware of our own culpability in this inequity when we buy Kenyan vegetables?

God bless the market, eh? We in Europe can currently pay more to a Kenyan farmer to airlift fresh salad on to our table than an Ethiopian can pay the same farmer — his or her neighbour — to put staple food items on to theirs. As Tim Worstall (blogging economist) so eloquently put it, “Making money from customers is what businesses do, it is the very reason for their existence.” Market capitalism ensures that agriculture is a business like any other. It does not exist to feed the hungry, it exists to generate profit. Market economists see this as a good thing.

I don’t, needless to say. But as I’ve already illustrated, there is no easy solution here. Europe simply cannot grow enough food to feed itself. We could reduce our consumption significantly and still not have enough land. That said, I would nonetheless urge Kenyan farmers to restructure their economy, accept the pay cut, and start to feed their neighbours. Our inability to feed ourselves is our problem, and leaving hundreds of thousands of nameless black people to starve half a world away is not an ethical solution to that problem*.

For now, I shall continue to support Irish farmers 100% (OK, 99.9%… I’ll still buy the occasional mango). And as transportation fuel becomes less abundant, driving the price of imported food ever upwards, it will become easier to do so. But Europe will soon need to face up to this problem of how we feed our massive population. And between peak oil and climate change, it seems unlikely that using Africa and South America as our personal gardens will be an option for very much longer.

* A first, small, step towards an ethical solution, of course, might be to stop dumping so much food into landfills.

11 comments  |  Posted in: Opinion


20
Feb 2007

Green Party support for BioFuels [updated]

This is a copy of a letter I’ve just emailed to one of my parliamentary representatives, Mr. Paul Gogarty TD. He’s a member of the Irish Green Party and my email was in response to a mail-shot on the subject of energy. Much of the leaflet was sound information on energy efficiency, renewables, grants for installing solar panels and heat pumps, a denunciation of nuclear energy… all good stuff. But the very first item is an article under the headline, “Biofuels can create new Irish jobs”. This piece heralds the worrying news that the EU has apparently set a target of almost 6% of transportation fuel to be sourced from biofuelstock by 2010.

I have a lot of time for The Greens, but am simultaneously irritated by their apparent desire not to rock the boat too much. If society decides to take the issue of Climate Change seriously, and in the face of a peak in oil and gas supply, then it will mean that individuals consume significantly less energy than they currently do. And although this may well provide long-term health and fulfillment benefits, it will be extremely uncomfortable, unpopular and maybe even unpleasant in the short to midterm.

Anyways… the letter…

Dear Paul,

I received your latest mail-out today (entitled €NERGY). With the exception of The Green Party, there is nobody in the political mainstream that comes even close to representing my views. Yet you seem to be doing your level-best to alienate even me, and turn my Green vote into a protest spoilt-ballot.

Your leaflet made some interesting points about energy efficiency, offered a rational dismissal of nuclear power and provided some useful information about renewable energy grants. But it also contained an extremely worrying recommendation of biofuels. You may as well have lauded China’s expansion of coal-power on the front page.

In fact, both your website and this latest mail-out trumpet “Biofuels” as a responsible alternative to fossil fuels. This is itself a wildly irresponsible position. The Chief economist at the UK’s Department for International Development recently estimated that “the grain required to fill a 25-gallon SUV gas tank with ethanol will feed one person for a year”. He may have been ’rounding-up’ the numbers for effect, but it still makes a mockery of biofuels as ‘ethical’ in a world where millions starve.
http://www.owen.org/blog/673

Even worse, George Monbiot’s excellent article, ‘Worse Than Fossil Fuel’, explains exactly why large scale biofuel projects have traditionally worked out as being even more carbon intensive than burning oil or gas!
http://www.monbiot.com/archives/2005/12/06/worse-than-fossil-fuel/

We live at a time when global climate change is perhaps the largest issue faced by our civilisation, and at a time when oil and gas supply could well be peaking. Organisations like The Green Party need to be loudly and frequently emphasising the need to dramatically scale back our energy usage as a society.

Yet such calls, where they are made in your literature, are greatly outnumbered and overshadowed by the glowing promise of more jobs (“Biofuels can create new Irish jobs”) and shiny new technology. One of the physical definitions of energy is ‘the ability to do work’. Our economy (the sum total of the work carried out by society) is no less than a giant engine to convert energy into material wealth. By promising more jobs, you are merely promising to accelerate that process.

Anyone who genuinely seeks to reduce carbon emissions needs to accept that the primary method of doing so must be a scaling back of economic activity. To promise such a thing may well seem like political suicide, but it would be honest. And I’ll always vote for the honest man above the good politician.

Yours sincerely,

Jim… (name and address provided)

[UPDATE] A Reasonable Response

Rather to my shock, Paul Gogarty TD responded to my email within a couple of hours of my sending it. More than that, he responded in a reasonable and measured manner which made my initial letter seem a wee bit shouty. I should probably make it a rule in the future not to write letters to politicians immediately having written a blog entry. It’s one thing being a bit strident and righteous when proclaiming to an unseen audience of billions; it’s quite another in a letter to another person.

Paul comes across very well in his response. I was just about to email him and ask if it was OK to post it here, when he posted it himself in the comments below (hi Paul!) which is where I’ll add a few further comments when I’ve worked out exactly what they are.

8 comments  |  Posted in: Opinion


5
Oct 2006

Privatising Aer Lingus (redux)

Y’know, way back in April I argued that privatising Aer Lingus was an absurd idea. It would essentially be trading an important public asset for a small increase in wealth for the already wealthy. Aer Lingus was a successful public service, doing roughly what the people of Ireland needed of it. It was under our control and had a legal obligation to serve our needs. How could we possibly expect to improve on that by putting it under someone else’s control and giving it a legal obligation to serve their needs?

It makes no sense to me. I guess most people believe that the needs of wealthy investors will tend to coincide with the needs of the average member of the Irish population. That’s not an article of faith I share.

Of course, there was one way the Irish government and their policy of selling off the family silver could screw over the Irish people even more than floating Aer Lingus… they could flog it to Ryanair for a bargain-basement price. You gotta love Bertie; he’s found a way to do both.

Yes folks; it seems that Michael O’Leary, CEO of Ryanair, has authorised the purchase of 16% of Aer Lingus and put in a bid for controlling interest. He’s paying 27% above the floatation price. So the people with the money to invest in Aer Lingus have made 27% on their money in a little over one week. And unless Aer Lingus has done something remarkable during that week to make their value soar, it poses the question of why the Irish people had their goods sold off at a price substantially lower than someone is obviously willing to pay.

Did the investors need that 27% more than the Irish people needed Aer Lingus? Let’s hope so. Because it’s gone for good. And people fond of flying Ryanair will be happy to hear that it comes in two colours now.

2 comments  |  Posted in: Opinion


15
Aug 2006

Bloody markets

The problem, as is so often the case, is free markets. You see, they are maybe possibly perhaps a half-decent way of handling the distribution of new computer games. For instance. But they’re an awful way of dealing with essential non-renewable resources. Seriously awful. In fact, if you had to design a system with the express purpose of bungling resource management you’d probably arrive at something a lot like free market economics.

We’ve arrived at a system which provides as motivation for the production and supply of essential non-renewable resources; the generation of profit. And it bestows the right to choose how the resource should be consumed onto those wealthy enough to purchase it.

I see it as being somewhat akin to a national blood bank / transfusion service being run exclusively for the profit of those who own the system. And to make matters worse, there’s a cabal of millionaires who get their kicks buying blood to bathe in. I mean, let’s be honest, there’s no reason at all for a defender of the free-market principle to object to that.

Certainly if millionaires are buying blood to bathe in, it’ll raise the price and – presumably – generate a greater supply. But this is a finite resource we’re talking about. Over 10% of the population has “needle phobia”. Another 10 – 15% are barred from giving blood because of various contamination issues. And health and safety recommends that nobody should donate blood more than once a month (restricted to 4 times a year in many countries). It’s a finite resource and increased demand will not generate an increased supply beyond the limits imposed by nature.

So first our hypothetical cabal raises the price beyond the capability of the NHS to pay for transfusions, then it raises it beyond the capability of most private patients to pay. Do proponents of the free market believe this is an acceptable situation? Is it OK for rich people to deliberately waste a resource vital to sustain the lives of those with less purchasing power? Is it still OK when it’s your ten-year-old daughter dying in hospital because Peter Stringfellow, Andrew Lloyd-Webber and Richard Branson want to sit in a bath of blood?

Of course, nobody bathes in blood. Leastways nobody you’d invite round for dinner. But I was drawing an analogy, not suggesting that Richard Branson actually has a blood fetish (though you do have to wonder about Lloyd-Webber… nothing would surprise me about him). And it’s an analogy that can be applied more directly than perhaps you’d imagine.

There are rather worrying reports emerging from some of the poorer African nations; Zimbabwe in particular. These reports are unconfirmed and I’ve only read them (thus far) on peak oil mailing lists (so I’m not using them as “evidence”; merely illustrative examples of how market forces will affect essential resource distribution… i.e. if this is not happening now, then it will be soon). As the recent rises in oil price kicked in, the poorest nations have been forced to cut back on the quantity they imported. This is what free markets are all about, after all.

However, in Zimbabwe this is resulting in a major curtailing of the – already decrepit – ambulance service*. People are dying right now because western consumers are willing to pay more for petrol to drive their SUVs to the hypermarket than the Zimbabwean health service can afford to pay to keep their vehicles on the road.

Bloody markets, eh?

* Yes, yes, I’m aware that the unique political disaster occurring in Zimbabwe is a major factor in the collapse of the health service (and just about everything else). However I trust you’re smart enough to realise that merely explains why Zimbabweans can’t afford to fuel their ambulances. Saying “Oh! Oh! Mugabe is a Bad Man!” loudly while sticking your fingers in your ears doesn’t actually redress the basic injustice that people are dying for want of a global resource while others are frivolously squandering it.

5 comments  |  Posted in: Opinion


4
Aug 2006

Frances Fitzgerald: candidate for The Man

A leaflet fluttered through my letterbox yesterday. It was from a local politician… a prospective Fine Gael (Fee-neh Gale) candidate in next years General Election. Her name is Frances Fitzgerald and her leaflet is a bit of early canvassing for next year, outlining some of her policies on mostly local – but also some wider – issues.

It took all of five seconds to establish that she has a whelk’s chance in a supernova of ever getting my vote. But that was never likely let’s face it. Fine Gael are a conservative centre-right party with a capitalist ideology. If there’s a mad independent candidate with staring eyes who is running on a ticket of whatever the aliens tell him… then he will better represent my views than Frances Fitzgerald. Because if Frances is standing for a party which seeks to perpetuate our rampant over-consumption and unsustainable economic growth, then she’s standing on the opposite side of the barricades to me.

The policy part of her leaflet opens with a section on crime. It’s beyond predictable; real mass-psychology 101 stuff, y’know? Open with fear. Scared people are more compliant… more receptive to any future statements you make once you’ve adopted the guise of “protector”. And what better way to do this than talk about…

  • “more Gardaí­ on the beat”;
  • “more [Garda] cars and CCTV”;
  • “implement a policy of zero-tolerance”; and
  • “ensure that criminals serve their time… not back on the streets posing a threat”.

That’s a distillation of the first four items in her 5-point plan to “restore law and order to all our communities”. The fifth and final point talks about investment in “recreational facilities for young people”. In the name of all that’s sacred! Does a politician who thinks in such an unimaginative and insultingly simplistic way honestly believe she can represent my views?

Solving crime

Look, if there is indeed a crime problem then let’s make a serious attempt to solve it. No, no, I’m not suggesting that we’re ever going to stop murder and mayhem. That’s never going away. We’re apes, and there’ll always be plenty of folks willing to act as a reminder. But despite this, clearly we could choose to address the crime problem more rationally than we’re doing at present.

I mean, tell me; has “more CCTV” ever resulted in “restoring law and order”? I lived in the UK for a while… land of the everpresent cycloptian eye. Everywhere you turn in London there’s a half dozen CCTV cameras peering at you accusingly. Yet they appear not to have eliminated crime in London as yet. Presumably, therefore, to have the desired effect we’ll need more than they’ve got in London. How many more Frances? Do you want us living in a world where our every moment is scrutinised by the lens?

I know a book about that.

And when you proudly proclaim your intolerance Frances, like a badge of honour, then I shudder at the thought of being represented by someone with so little compassion. Zero tolerance, eh? Whenever I hear a politician utter that phrase I hear a distant response… “let he who is without sin cast the first stone”. And I want to demand that politician imagine their life today if their every past transgression had been treated with zero-tolerance. Demand they tell me whether the compassion and forgiveness of others had any part at all in forming the person they are today. And why they seek to deny that to others.

Zero-tolerance is not a policy. It’s a way of looking at the world. And one that I will never vote for.

Of course I’m well aware of how difficult it is to accurately trace lines of cause and effect when it comes to something as complex as a social system. There’s just too many damn variables. Nonetheless, there’s a phrase from systems engineering… “predictable consequence”. It’s important to read that phrase as a technical term; one which is ever-so-slightly different to the literal. Think of it as a defined as “on the balance of probabilities and based upon what we know of the most influential factors of the system, this is a likely outcome”.

The point of the phrase is that it’s how the analyst identifies something that requires action. If I say that a predictable consequence of running a system at the required pressure would be blown valves; I’m not saying that the valves will blow. I’m saying they need to be replaced. It may sound like splitting hairs, I guess, but the distinction is a real one.

Now, to describe our drug policy as counter-productive is like describing the sun as warm. We have decided, voluntarily, to place one of the world’s largest and most lucrative industries entirely into the hands of violent criminals. We have voluntarily surrendered all control over the manufacture and distribution of some of the world’s most addictive substances. We have passed laws to ensure that the consumption of these substances is made vastly more dangerous than is necessary. And we have entire government agencies working tirelessly to drive up the price of these addictive substances.

The predictable consequence of that set of policies is a crime wave. It would not be stretching it too much to suggest that we’ve somehow managed to implement a set of drug policies which maximise the social damage of drugs. Rational drug law reform will not “solve crime”. However it will radically reduce the amount of violent and acquisitive crime in our society. So as a first step, I’d argue that’s the sensible place to start.

It’ll certainly do more to reduce crime than extra policemen and a couple of youth centres.

Improving public transport

Fine Gael is committed to introducing competition in the Dublin Bus market. By allowing private operators to tender competitively for licences…

Ohhhhhkaaaayyyy… I guess she’s really not after my vote. Well, it’s nice that she’s upfront about it.

Here’s my thing… this is what I actually want my bus to be. First and foremost, I want it to be a public service. Now that may sound selfish. “What about all those millions of people who want it to be a profitable business, eh?” you ask. But the thing is… are there really that many of them? Because I’ve yet to actually meet one, despite their prevelance in the political media circus.

I want a bus that leaves Rathcoole every half hour and takes me straight into the city centre bypassing the bottleneck that is Clondalkin. I don’t want the bus to make any profit, merely cover costs* and I want it to run 24 hours day (though the frequency can drop to one an hour between midnight and 5am).

That would be a public service. The fact that Frances Fitzgerald believes it would be a bad idea (or, mindbogglingly, that such a service is actually beyond the ability of Fine Gael to organise) suggests that her first desire isn’t to be a public servant. Rather she seeks to serve the interests of that portion of the population who would genuinely prefer the bus to be run primarily as a profitable business.

That can only mean the shareholders of the corporations tendering for the rights to make money out of our public transport. Good to know. All I need to do is become a wealthy shareholder in a predatory corporation seeking to run my bus service at the lowest possible cost to themselves and the highest possible cost to me. Then Frances Fitzgerald might want to represent my interests. Yay Fine Gael!

Almost time to take to the streets

Oh there’s plenty more, but really, who cares? If this is the best that mainstream politics can offer us… well, it’s clearly time to look outside mainstream politics for the solutions we need to the problems we’ve created. It’s time we swept aside the empty nonsense of the Frances Fitzgeralds of this world.

Woe betide the next politician to leaflet my street…

* In fact, I would like it subsidised by the taxpayer. But I’ll leave that last demand until a future election (one step at a time).

3 comments  |  Posted in: Opinion


6
Jun 2006

Again with the Peak Oil

So what’s the relationship between “peak oil” and climate change? Is there one? After all, with less of the stuff to burn, there’ll be less “greenhouse gas” emissions. Right? Does fossil fuel depletion have a silver lining?

Well. No. I’m afraid not. Leastways if there is a silver lining on peak oil’s cloud, it’s not an antidote to anthropogenic climate change.

But you knew I was going to say that right? After all, I’m always soooo negative. But it’s not like I want to be a harbinger of doom. Nothing would give me greater pleasure than announcing; “hey! y’know all that peak oil malarky? Turns out it’s a bunch of arse. Magic pixie dust from space-land will sort everything out!”

One day I’ll have some good news for you. I promise. But statistically speaking it’s unlikely to be today.

Less oil = More emissions. Huh?

I know, I know. Counter-intuitive or what? But the world is a lot like that. It’s rarely as it seems. And even when it is, chances are you’re looking at it wrong. It’s a bit like Oliver Kamm walking into a room containing other people and not being punched repeatedly in the face by all present. Common sense insists it shouldn’t happen. Yet apparently it does.

The first thing that I want to stress is that there’s a fundamental sloppiness with the term “peak oil”. In reality, when I (and most informed people) use the term, we are using it as a shorthand for “peak oil and natural gas”. Even ASPO uses the shorthand… the name of the organisation is actually “Association for the Study of Peak Oil and Gas” but they clearly realised that ASPOaG isn’t the catchiest of acronyms.

There’s now data to suggest that conventional crude oil production peaked late last year. Dr. Colin Campbell has made it clear that total oil production will peak within 5 to 15 years of conventional crude. His analysis also suggests that we’ll reach a peak in natural gas production within a few years of peak oil production. Gas, however, has an entirely different depletion profile to crude oil (often referred to as the natural gas “cliff” to distinguish it from the relatively gentle Hubbert “curve” of oil depletion) and production rates plummet rapidly soon after hitting peak.

Unfortunately, as any free-market-economist-type person will tell you, even if oil and gas were to begin depleting (a scenario many of them will actually deny… insisting that greater demand will lead to greater investment leading to greater supply; what I refer to as “The Spoilt Child Hypothesis”), the market will merely switch to supplying alternatives. The demand isn’t for oil per se, but – more abstractly – for the uses that oil can be put to.

At this point some economists will use the phrase, “the infinite transformability of units of production”. However they’ll use it out of earshot of me as I’ve a tendency towards violence when I hear it.

Economists: Right about one thing

Well, they’re probably right about slightly more than one thing. But in this case they’re right about people not wanting oil for oil’s sake (or gas). They want something that’ll make their car go, or something that’ll generate the electricity for their homes, or something that’ll keep them warm in the winter and cook their food.

Unfortunately there are no adequate substitutes for either oil or gas. But there are plenty of inadequate ones. Which is where the carbon emissions problem raises its sooty head.

If the market is given free rein to attempt to fill the supply shortfall as demanded by consumers of the high-energy lifestyle, then we will see an inevitable return to coal-fired power plants. Replacing gas power generation with coal would see a massive increase in carbon emissions. Don’t believe that guff about “clean coal”… it’s sleight-of-hand, like the electric car; merely moving the emissions away from the end user. The atmosphere doesn’t distinguish between emissions from a “clean coal” processing plant and those from burning “dirty coal” in your fireplace.

And it doesn’t end there.

A reduction in fossil-fuel availability will inevitably result in an increase in wood-burning and consequent increase in deforestation. As any school-child will tell you, trees are the planet’s natural solar-powered carbon sequesters. With fewer trees, less of our carbon emissions will be recycled out of the atmosphere. And this is part of a particularly vicious positive-feedback loop. Less trees begets less trees. Just ask the Easter Islanders.

And then there’s the staggeringly destructive idea of automobile biofuels. People don’t demand petrol, they merely demand that their cars work. And if palm oil will make them work, then they’ll fill up with palm oil. During the past 20 years, more than 85% of the deforestation in Malaysia was carried out to clear land for palm oil plantations for the export market. Not only did this involve the displacement of indigenous peoples and mass slaughter of wildlife, but also the drainage of large areas of swampland.

Anyone paying attention in biology class knows the problems associated with draining swamp and bogs… as the peat and mosses dry out they decompose releasing huge quantities of greenhouse gasses. Palm oil, it seems, is almost as big a contributor (barrel for barrel) to anthropogenic climate change as its fossil counterpart.

Not a supply-side problem

This is the crux of the matter. And it’s something that perpetual-growth capitalists just can’t get their head around. The problem we face is not how to replace oil and gas to meet the demands of energy-hungry consumers. The problem is how we manage the demands of those consumers so that they become less energy-hungry and more responsible.

I don’t know the precise solution to that problem. But I do know that it can’t be provided by free markets.

12 comments  |  Posted in: Opinion


23
May 2006

The Euston Manifesto (critique #1)

I’ve recently been thinking about my time as a philosophy undergraduate. Mostly this has been inspired by the fact that I’m considering a return to academia in the not-too-distant future… becoming a fulltime philosopher again for a spell. It’s a dirty job but someone’s got to do it. And frankly, I’m not sure I trust anyone else to do it properly.

The second reason for my undergraduate reminiscing was The Euston Manifesto. For those of you who are unaware of this document, it’s a recently published political manifesto (so recent it hasn’t happened yet… the official launch date is May 25th). It has as a preamble…

We are democrats and progressives. We propose here a fresh political alignment. Many of us belong to the Left, but the principles that we set out are not exclusive. We reach out, rather, beyond the socialist Left towards egalitarian liberals and others of unambiguous democratic commitment. Indeed, the reconfiguration of progressive opinion that we aim for involves drawing a line between the forces of the Left that remain true to its authentic values, and currents that have lately shown themselves rather too flexible about these values. It involves making common cause with genuine democrats, whether socialist or not.

Upon reading this, I was instantly transported back to first year political philosophy seminars. I had a lecturer who would have used the phrase “wet western wanker” when referring to the author of such a paragraph. In fact it’s precisely the sort of thing he’d have written himself as a parody of “wet western wank”. And I guarantee he would have met the first sentence, We are democrats and progressives, with a cynical, “well who the fuck isn’t?” I’m not condoning his attitude… I’m just saying…

I Won’t Be Signing Up

And not just because it’s full of wet western wank. In fact, what I find most objectionable about this document is the other stuff… the pro-globalisation stance that almost gets obscured by the meaningless platitudes. But before I get into the detail of the manifesto, I’d like to point out that the first time I visited its website, my PC informed me “The website bloggers4labour.org would like to set a cookie. Will you allow it?” Then, the very first name that caught my eye when glancing at the signatories was ‘Oliver Kamm’.

So it got off to a bad start. Though the actual content of the document merely compounds the badness.

The Euston Manifesto is comprised of a preamble, 15 statements of principle, a bunch of elaborations and a short conclusion. It can be read in full on this webpage. I’m not going to analyse it line by line, or even principle by principle. There’s much that’s bland and uninteresting but which I wouldn’t have a major problem signing if it featured in a manifesto alongside some genuinely good ideas. Instead I’m just going to highlight what I see as the serious problems with it… the inherent self-contradictions and the dodgy wrong-headedness.

Where better to start, then, than Principle 5? It’s the worst offender, and alone makes for a flawed and deeply objectionable manifesto, the signing of which puts a person on very much the wrong side of the barbed-wire fence.

5) Development for freedom.

We stand for global economic development-as-freedom and against structural economic oppression and environmental degradation. The current expansion of global markets and free trade must not be allowed to serve the narrow interests of a small corporate elite in the developed world and their associates in developing countries. The benefits of large-scale development through the expansion of global trade ought to be distributed as widely as possible in order to serve the social and economic interests of workers, farmers and consumers in all countries. Globalization must mean global social integration and a commitment to social justice. We support radical reform of the major institutions of global economic governance (World Trade Organization, International Monetary Fund, World Bank) to achieve these goals, and we support fair trade, more aid, debt cancellation and the campaign to Make Poverty History. Development can bring growth in life-expectancy and in the enjoyment of life, easing burdensome labour and shortening the working day. It can bring freedom to youth, possibilities of exploration to those of middle years, and security to old age. It enlarges horizons and the opportunities for travel, and helps make strangers into friends. Global development must be pursued in a manner consistent with environmentally sustainable growth.

Ibid.

OK. First off. If you talk about “environmentally sustainable growth” you are (knowingly or not) peddling a dangerous lie. There is a widely-held misconception that the findings of The Club of Rome and their famous report; The Limits to Growth (download an abstract in RTF format); have somehow been discredited. That there are in fact, no limits to growth and that growth can carry on “sustainably” (i.e. indefinitely). This is simply not the case.*

I’d go further and say that the philosophy of sustainable growth is a powerfully regressive one which ranks alongside fascism in its potential to generate human suffering. But it’s not just the last line of Principle 5 that’s problematic. I find the opening statement little short of mind-blowing. “We stand for global economic development-as-freedom…” Are they serious? And if they are, then it’s perhaps no accident that they decided to use the rhetoric of totalitarianism to express it.

I’m sorry, but no matter how many empty platitudes you pad it with (against environmental degradation… once again; “well who the fuck isn’t?”) the decision to equate freedom and economic development proves that The Euston Manifesto is little more than an attempt to recast rapacious capitalism as “the friendly, cuddly” planet-despoiling philosophy.

6) Opposing anti-Americanism.

We reject without qualification the anti-Americanism now infecting so much left-liberal (and some conservative) thinking. This is not a case of seeing the US as a model society. We are aware of its problems and failings. But these are shared in some degree with all of the developed world. The United States of America is a great country and nation. It is the home of a strong democracy with a noble tradition behind it and lasting constitutional and social achievements to its name. Its peoples have produced a vibrant culture that is the pleasure, the source-book and the envy of millions. That US foreign policy has often opposed progressive movements and governments and supported regressive and authoritarian ones does not justify generalized prejudice against either the country or its people.

Ibid.

Can someone say “straw man”? Look, there are clearly people who have a “generalized prejudice” against American people or against America as a country. But that’s not anti-American in the political sense. Those people are bigots and are no different from the numerous English people who feel antipathy towards the French or the numerous French people who feel antipathy towards the non-French.

However, given that Principle 8 is entitled ‘Against Racism’, I would have thought that a specific principle attacking anti-American bigotry would be unnecessary. So obviously that’s not what Opposing anti-Americanism means in the context of The Euston Manifesto.

Instead, what we have here is yet another transparent and irritating attempt to conflate legitimate political anti-Americanism with bigotry. It’s a tactic beloved of dishonest rightwing newspaper columnists and mirrors the tactic of equating opposition to Israeli government policy with anti-semitism. I find it impossible to trust people who resort to this tactic. It’s a deep-seated dishonesty and it casts a dark shadow over their motivations.

I am – politically speaking – anti-American. I disagree profoundly not merely with the political aims and policies of the current United States government, but also with the aggressive global marketing of US culture and economic philosophy. And yet I have American friends and family (like many Irish families we have a branch in the States). I lived there for a year. New York is my favourite city. I adore American film, literature and music. There is no contradiction.

Principle 6 of The Euston Manifesto is not about being “against anti-Americanism”; it’s about being in favour of pro-Americanism. It is the active support of US foreign policy and the embrace of corporate capitalism. It stands hand-in-hand with Principle 5. A pledge of allegiance to the Land of The Free(dom-as-economic development). Why else the need to dishonestly paint those who consider themselves politically anti-American as bigots?

And there’s more

But not right now. You’ll have to wait for ‘critique #2’. I want to address the subject of “democracy” and that deserves an essay to itself… Principle 1 of The Euston Manifesto (the ‘We Heart Democracy’ bit) provides an interesting context in which to do that. Also I believe that there may even be a ‘critique #3’ as I’d like to highlight a particularly glaring self-contradiction in the manifesto (the “No apology for Tyranny” yet active “political pro-Americanism” paradox), elaborate a little on the implications of the pro-globalisation stance and analyse the language used when discussing terrorism, internationalism, heritage and freedom. So until then.

* I will gladly defend The Limits to Growth in the comments should anyone wish to challenge it – so long as they provide a reference. I’m sick of hearing lines like “Well The Limits to Growth said we’d run out of oil by the year 2000. So why should we believe anything else they say?” I feel like forcing them to sit down with a copy of the book and demanding, “Show me. Show me where it says that. Because it bloody well doesn’t!” See, what happened was this… the book was published and became a surprise bestseller. Sold millions of copies. And just like A Brief History of Time, roughly 1% of the people who bought it had either the requisite education to understand much of it, or the time / inclination to gain that education. But nobody liked to admit that of course. Having struggled in bafflement to the middle of chapter two, they gave up. As a result they end up confidentally repeating every misconception that gets passed around as though they’d read it themselves. I’m not claiming that the report is flawless in every detail (it isn’t); merely that the general conclusions, methodology and philosophy outlined within it are incontravertible.

33 comments  |  Posted in: Opinion