Monday, September 28, 2009

Oil's Well

The appearance of books like CRUDE WORLD are excellent leading indicators for the continued health and growth of an industry under attack.

Despite the cries of backward-thinking people, the greatest surge of prosperity in human history has been made possible by the existence and use of oil. Energy -- cheap energy -- is the key. Oil has answered many prayers, and yields enormous benefits, even to those who want to believe it is evil.

Some of the world's nitwits have riveted themselves to the notion of Peak Oil, that point where global production reaches its maximum. Then, because oil is a finite rescource, it is believed production will decline as the difficulty of finding and exploiting reserves increases.

Of course we have no idea how much oil is below the Earth's surface. True, global reserves are finite, but our approximations of those reserves are limited by our ability to measure them, and our ability is limited. Thus, today's reserve estimates are obviously low.

But what does it matter. We know oil we will deplete Earth's oil reserves and that it will take at least another 100 years to drain them.

What do we do till then? Wind? Solar? Coal? Nuclear? When it comes to knowing the amount of energy available from specific sources, we know exactly how much wind and solar power are available. Nothing man can do will change the amount of sunlight striking the Earth or the amount of wind sweeping the land.

Thus, when it comes to measuring Peak Sun or Peak Wind, we already know. Those who worship Sun Power make useless claims about the amount of solar energy striking the surface of the Earth. As if it matters to American consumers of electricity how much sunlight strikes the oceans covering 70% of the Earth's surface. Solar panels may someday cover a lot of open land in sunny regions of the country. But not without a fight.

Covering vast tracts of sun-bleached land with solar panels will offend millions of people who will resent and oppose this plan to interrupt Nature's way. Imagine solar panels covering the ground in Monument Valley, Arizona. Of course putting a solar-panel roof over millions of acres of desert land is something that will happen only in the imaginations of Sun Worshippers. There's no chance utility companies will receive approval to convert flat desert land, the habitat of many plants and animals, into solar catchments.

Meanwhile, the nitwit author of this mindless book, seems to have confused the forces of backwardness that have dominated the oil-producing regions of the middle east with the most liberating and powerful modernizing force ever. Nothing gives more evidence of the retarding damage caused by Islam than oil. And nothing shows the retarded dopiness of a misguided polemicist more clearly than one who argues that a middle east culture that wants to return the world to the 7th Century is going to carry the day.

The End of Oil?

CRUDE WORLD
The Violent Twilight of Oil

By Peter Maass

Illustrated. 276 pp. Alfred A. Knopf. $27

Oil is the curse of the modern world; it is “the devil’s excrement,” in the words of the former Venezuelan oil minister Juan Pablo Pérez Alfonzo, who is considered to be the father of OPEC and should know. Our insatiable need for oil has brought us global warming, Islamic fundamentalism and environmental depredation. It has turned the United States and China, the world’s biggest consumers of petroleum, into greedy, irresponsible addicts that can’t see beyond their next fix. With a few exceptions, like Norway and the United Arab Emirates, oil doesn’t even benefit the nations from which it is extracted. On the contrary: Most oil-rich states have been doomed to a seemingly permanent condition of kleptocracy by a few, poverty for the rest, chronic backwardness and, worst of all, the loss of a national soul.

We can’t be rid of the stuff soon enough.

Such is the message of Peter Maass’s slender but powerfully written new book, “Crude World: The Violent Twilight of Oil.” Unquestionably, by fueling better and faster transportation and powering cities and factories, oil has been critical to modern economies. But oil has also made possible the most destructive wars in history, and it has left human society in a historical cul-de-sac. Despite much hue and cry today, Maass argues, we seem unable to move beyond an oil-based global economy, and we are going to hit a wall soon.

Maass, a contributing writer for The New York Times Magazine, tends to endorse the predictions of industry skeptics like Matthew Simmons, who argues the earth is about to surpass “peak oil” supplies. Even with the recent fallback in prices, the petroleum that’s left to discover will be harder and more expensive to extract. Last year’s $147-a-barrel oil was just a “foretaste of what awaits us,” Maass writes.

Maass is less interested in crunching oil-supply numbers, however, than in exposing the cruelty and soullessness of human­kind’s lust for this “violence-­inducing intoxicant,” as he calls it. His book teaches us an old lesson anew: that the true wealth of nations is not discovered in the ground, but created by the ingenuity and sweat of citizens. It’s the same lesson the Spanish learned centuries ago when they discovered gold, the oil of their time, in the New World. They piled up bullion but squandered it on imperial fantasies and failed to build enduring prosperity, while destroying the civilizations from which they seized it.

Destruction, or at least a lack of progress, has been the fate of most of the nations unlucky enough to sit on top of large pools of “black gold” today. They have grown corrupted by it, their leaders relieved of the need to show accountability as long as they can buy off well-connected foreigners and pay for the security and protection they need from their own angry, disenfranchised citizens. In starkly titled chapters — “Fear,” “Greed,” “Empire,” “Alienation” and so on — Maass shows how each oil state has found its own way to failure. “Just as every un­happy family is unhappy in its own way, every dysfunctional oil country is dysfunctional in its own way,” he writes.

Equatorial Guinea’s savage leader, Teodoro Obiang, plunders virtually every cent of his nation’s wealth, aided by Riggs Bank of Washington, which sometimes sent employees to the embassy to pick up bulging suitcases of cash. Locals don’t even get the benefit of jobs because the manual labor is supplied by Indians and Filipinos brought in by Marathon Oil. Walking around the capital, Malabo, one night, Maass does manage to find a booming source of local employment: young Guinean girls called “night fighters” because they jostle for a chance to sell their bodies to the oilmen from Texas or Oklahoma. “The men in Malabo might not find jobs in the oil industry, but it is clearly possible for their desperate sisters to earn a few dollars,” he writes. Traveling to Ecuador, Maass discovers graffiti on one of the pipelines that cut through what was once pristine Amazonian rain forest: “Más Petróleo = Más Pobreza.” More oil equals more poverty. For him, it sums up the confiscatory approach that Texaco took to that country, leaving it a stripped land oozing with toxic pollutants.

The major oil producing nations have fared little better. Seventy years after the discovery of its first great reservoir, Saudi Arabia remains a medieval principality with a bare patina of modernity. The country’s long reign as the world’s No. 1 oil supplier has been good for the Saudi princes but a Faustian bargain for the rest of us, having led to the petrodollar-funded spread of extremism and the rise of Osama bin Laden. Post-Soviet Russia has become a kind of petro-fascist state where the head of Lukoil slavishly keeps a picture of Vladimir Putin on his desk rather than photos of his family. Venezuela is resurrecting socialism, this time as farce, under the buffoonish Hugo Chávez, who hosts a TV talk show called “Aló Presidente” while turning his national oil company into a “development agency with oil wells” that furthers his hold on power. Iran’s whole modern history has been twisted out of shape by its oil riches, starting with the American-British coup that toppled Prime Minister Mohammed Mossadegh in 1953 and restored Shah Mohammed Reza Pahlavi.

The unhappiest countries are those where oil has led to war, none more so than Iraq, even if no one will acknowledge the truth about America’s 2003 invasion. “The refining process transforms this black swill into a clear fluid without which our civilization would collapse,” Maass writes. “Quite often a corollary process of political refining occurs to sanitize the truth of what’s done to keep oil in the hands of friendly governments. Just as cars cannot run on unrefined crude, political systems choke at the unfiltered mention of war for oil.” He cites George W. Bush’s claims that the invasion of Iraq had nothing to do with oil. Still, the question hangs out there: Why was the Oil Ministry one of the only places guarded by United States troops in the early days of looting?

By the end of Maass’s long indictment, one wants the horror to end. Let’s all move on from oil already. Indeed, it is tempting to imagine what sort of globalization we might have today if Max Steineke and his exploratory team from Standard Oil of California hadn’t discovered quite so much petroleum when they pierced Saudi Arabia’s first great reservoir in 1938. If less human ingenuity had been applied to finding oil over the last 70 years, and more to developing other sources of energy, the world economy — and the environment — might be far healthier. The World Trade Center might even still be standing.

But Maass doesn’t fully deliver on the promise of his subtitle. Is this really the twilight of the oil economy? We still seem utterly drenched in the gunk, and the author’s occasional hints at the alternative history that might have been — if only Ronald Reagan hadn’t dismantled those solar panels that Jimmy Carter put on the White House roof! — are not terribly satisfying. He says that the combined technologies exist to move beyond oil, but he doesn’t go into any real detail. In his final chapter, Maass gives us an evocative glimpse of one future alternative he would prefer — a giant wind farm he discovers along Interstate 10 in California. “Set against the blue sky and the brown desert, in rows of rotating white arms that glint in the sun, the turbines have the appearance of futuristic totems waving at us, luring us forward,” Maass observes, before driving on in his car.

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