The peak oil crisis: We are starting to dim

While waiting to see how the contest between a demand-killing recession and shrinking oil stockpiles plays out, it might be worthwhile to spend a little time reviewing the world's electricity situation. Although it has received scant coverage in the U.S. media, in many parts of the world, the electric grids are shutting down for long periods each day. In a few places the electricity is now off most of the time. Some of this is due to droughts which have reduced the hydroelectric generating capacity in many parts of the world. Some is due to the price of oil which has simply become too expensive to use in thermoelectric generating stations and in a few places the electricity is out or has been greatly reduced because of civil strife.

Iraq, Nigeria, Gaza and Pakistan are the most prominent instances of the latter. Even the climate has contributed to the problem as a wave of unusually cold weather has enveloped the Middle East, Central Asia and Siberia, forcing many to use electric heat as their only means of survival. Currently, there is some form of power shortage starting in southern China and ranging south to Vietnam and then westward across the subcontinent to Africa. Parts of Bangladesh, India, Nepal, Pakistan, Iran, Iraq, and many places in central and southern Africa have reported shortages. These range from minor inconveniences to cities where the economy is close to shutting down. Problems have been reported in Central and South America and nearly everywhere where oil-fired power plants are used to generate electricity.

Thus far the developed countries have largely avoided problems due to better electrical infrastructures, domestic fuel supplies, or the ability to pay whatever it costs to obtain the necessary fuel. In effect, the rich have outbid the poor who are now suffering the consequences. If you are poor, you can forget nuclear power and all those advanced solar, wind and wave generators. Their cost is likely to skyrocket and the rich are likely to have a lock on production for decades. Sad as it may seem, we may have a situation shaping up where the world will shortly be divided into countries that have general access to electricity and those who don't. What this means for the billions around the world that will be without it is difficult to contemplate. They can certainly forget electric cars for awhile and it is a good bet their governments will restrict or maybe even eliminate household use.

Post a Comment:

Comments are closed for this entry.

« General Motors CEO:... | Main | Stocks plunge, 2007... »

Most popular blog postings on lowem.log :

1. Singapore SIBOR rate falls to 0.94% in Nov 2008, lowest since Jul 2004
2. Baltic Dry Index falls 93% as shipping rates plunge, signalling global economic collapse
3. Singapore SIBOR rate falls to 1.31%, lowest since Nov 2004
4. Singapore SIBOR interest rates fall to 1.5%, lowest since Dec 2004
5. Live spot gold price quotes chart on COMEX
6. 2010 Honda Civic Hybrid preliminary specifications released
7. Fuel prices seen stoking Malaysia inflation in 2008
8. How to insert currency exchange rates into Google Spreadsheets

Featured articles on lowem.log :

1. ABC Guide to Beating Inflation in Singapore and Elsewhere
2. Singapore inflation rate hits new 26-year high of 7.5% in Apr 2008
3. Baltic Dry Index falls 93% as shipping rates plunge, signalling global economic collapse
4. 67000 China factories closed in H1 2008 as global economic collapse takes hold
5. 2010 Honda Civic Hybrid preliminary specifications released
6. Peakoiler buys 2008 Honda Civic Hybrid FD3
7. NYMEX crude oil recovers from $32.40 low after 2.2 mbpd OPEC production cut announced
8. Singapore SIBOR rate falls to 0.94% in Nov 2008, lowest since Jul 2004