Monthly Archives: February 2014

Beginning of the End? Oil Companies Cut Back on Spending | Our Finite World

The new strategy is, in effect, maintaining dividends by returning part of capital. It is clearly not a very sustainable strategy.

It will take a while for these cut-backs in Capex expenditures to find their way through to oil output, but it could very well start in a year or two. This is disturbing.

What we are seeing now is a cutback in what companies consider “economically extractable oil”–something that isn’t exactly reported by companies. I expect that what is being sold off is mostly not “proven reserves.”

In this talk, it looks like lack of sufficient investment is poised to bring the system down. That is basically the expected limit under Limits to Growth.

In theory, if an expansion of China’s oil demand does bring oil prices up again, it could in theory encourage an increase in drilling activity. But it is doubtful that economies could withstand the high prices–they are already having problems at current price levels, considering the continued need for Quantitative Easing to keep interest rates low.

A recent news item was titled, G20 Finance Ministers Agree to Lift Global Growth Target. According to that article,

Mr Hockey said reaching the goal would require increasing investment but that it could create “tens of millions of new jobs”.

The cutback in investment by oil companies is working precisely in the wrong direction. If these cutbacks act to cut future oil extraction, it will bring down growth further.

via Beginning of the End? Oil Companies Cut Back on Spending | Our Finite World.

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Creating a life that reflects your values and satisfies your soul is a rare achievement…

Bill Watterson’s “cartoonist’s advice,” in comic form by Zen Pencils, aka Gavin Aung Than..

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Efficiency without Sufficiency is Lost: A Critique of Technology Optimism

The solution to the unintended consequences of modernity is, and has always been, more modernity – just as the solution to the unintended consequences of our technologies has always been more technology. – Ted Nordhaus and Michael Shellenberger

The Simplicity Institute’s co-director, Samuel Alexander, has been doing some work recently with the Melbourne Sustainable Society Institute, and has just published the first of a number of working papers, entitled ‘A Critique of Technology Optimism: Efficiency without Sufficiency is Lost’:

‘Technological optimists believe that humanity will be
able to solve environmental problems primarily through technological application and advancement, while continuing to focus attention on economic growth. From this widely held perspective, sustained growth of the global economy will eliminate global poverty and raise living standards for all, without destroying the necessary ecosystems that sustain life as we know it. There can be no doubt that this promise of technology is seductive – material abundance for all, while solving environmental problems. But is this promise credible? If not, what are the implications? This paper presents an evidence-based critique of techno-optimism, arguing that the vision of progress it promotes is unrealisable due to the limits of technology and the inherent structure of growth economics. The considered application of technology is, without doubt, an essential part of any transition to a just and sustainable world, but it is argued that there must also be a value-shift away from growth economics toward a ‘post-growth’ or ‘steady state’ economy based on material sufficiency.’

The full paper is available at the following link:
1_Critique_of_Techno_Optimism-with-blurb.pdf.

 

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