The transition to post oil

Post Carbon Institute Fellow Rob Hopkins gives us the hard facts that we are running out of oil and it is taking immensely more energy to extract the oil that remains. Can technology solve the impending crisis? How shall the transition proceed? This talk parallels many of the observations of Hopkins' earlier paper, entitled "Searching for a Miracle," both of which should serve as a wake up call for massive conservation efforts. We need to be "loving and leaving all that oil has done for us," and getting ready for the transition:

The fundamental disturbing conclusion of the report is that there is little likelihood that either conventional fossil fuels or alternative energy sources can reliably be counted on to provide the amount and quality of energy that will be needed to sustain economic growth—or even current levels of economic activity—during the remainder of the current century. This preliminary conclusion in turn suggests that a sensible transition energy plan will have to emphasize energy conservation above all. It also raises questions about the sustainability of growth per se, both in terms of human population numbers and economic activity.

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U.S. falling far behind on the green race

Robert F. Kennedy recites some startling facts demonstrating that if you want to see how to really invest in one's economy, you should follow the lead of China, not the United States:

The Chamber has continued to argue, idiotically, that energy efficiency and independence will somehow put America at a competitive disadvantage with the Chinese. Meanwhile, the Chinese have shrewdly and strategically positioned themselves to steal America's once substantial lead in renewable power. China will soon make us as dependent on Chinese green technology for the next century as we have been on Saudi oil during the last.
While the U.S. is busy using massive amounts of tax dollars to prop up corrupt Wall Street banks, China is weaning itself off of fossil fuels.

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Use nudity when potentially child-killing chemicals don’t garner enough attention

Back in September, Senator Al Franken and Rep. Steve Israel has introduced the "Household Product Labeling Act," which will enable consumers to determine whether potentially harmful chemicals are present in the household cleaning products they use. Here's the full text of the Senate version of the Act. Here's the problem:

In many households across the country, the entire family pitches in on household cleaning chores. The effort is obviously intended to keep everyone healthy by cutting down on germs, bacteria, and mold. But unfortunately, many of the ingredients in commonly used cleaning products may be dangerous themselves. Current law requires that product labels list immediately hazardous ingredients, but there is no labeling requirement for ingredients that may cause harm over time. Many chemicals contained in household products have been shown to produce harmful health effects. Consumers have a right to know which of these potentially harmful chemicals might be present in their kitchen and bathroom cupboards. This information is particularly important to families with small children, who as we all know have more direct contact with floors and household surfaces. This legislation simply makes that information readily available to consumers, giving them the opportunity to make an informed choice about the chemicals they bring into their homes.
This is an incredibly important bill, because consumers should have a right to know the chemicals to which they are exposing their families (see here for related post). How do you promote a bill when the "mere" sickness and death fail to attract enough attention? A private company called Method decided to shoot this clever (and somewhat provocative) video:

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Buffett’s bet on peak oil

Warren Buffett is lauded as one of the greatest investors of all time, if not the greatest. He's the second-richest person in the world, and known as the "Oracle of Omaha" for his seemingly prescient investments. For example, in the wake of the collapse of Bear Stearns and during the height of the market panic that followed it, Buffett stepped in and negotiated a deal with Goldman Sachs. He acquired $5 billion worth of preferred shares, which would pay him a 10% dividend, as well as warrants with the rights to sell those shares at any time within 5 years from the time of the transaction. As of September this year, those warrants were "in the money" to the tune of $3.1 billion, and that doesn't include the $500 million in premium payments that Goldman pays every year. Those lucrative terms (punitive for Goldman Sachs) left others wondering why the Treasury Department could only negotiate a 5% dividend, but that only added to the mystique and legend of Warren Buffett. At the time, Buffett was quoted as saying "If I didn't think the government was going to act, I would not be doing anything this week," referring to the massive bailout bill which was indeed enacted by the government. It's deals like that that enable one to become one of the richest people in the world. But it's also that background that has some on Wall Street scratching their heads at the news that he was purchasing Burlington Northern railroad. The Wall Street Journal discussed how the acquisition seemingly broke two of Buffett's cardinal rules on investments: 1) buy undervalued stocks or companies, for obvious reasons and 2) don't split your own stocks, as it dilutes the equity of the existing shareholders. Bloomberg quoted a hedge fund principal as saying, "It could be five years before the logic of [Buffett's purchase of] Burlington Northern becomes clear." Even Buffett admits that the purchase was "not cheap" and that it represents an "all-in wager"on the future of the American economy. And there can be no doubt that it is a significant investment-- he's liquidating other rail investments totaling $691.3 million while the Burlington Northern purchase will cost some $26 billion-- an increase in his railroad holdings of some 3,600%. And this bears repeating, he's splitting stock to get it done. This is the first time ever that Berkshire Hathaway (Buffett's investment company) has split shares. He's so reluctant to split shares, the class A shares regularly trade over $100,000 per share, an unheard-of valuation.

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Peak coal

For those of you who read this shocker that the worldwide oil reserves are dwindling much faster than official reports have been coyly indicating, don't get too cozy with the concept that we can always move on over to coal. At least that is the opinion of Richard Heinberg of the Post Carbon Institute. He claims that cheap coal is running out quickly too, and that we will have hit peak coal by 2025. There are a lot of good reasons for avoiding coal. It's a dirty fuel that has spawned dozens of massive ecological disasters, including this one in Tennessee. Another reason to not depend on coal is that there might not be enough of it to consider it to be a long-term solution. And please tell me: why is "conservation" still such a dirty word to so many people out there when it is the cleanest and easiest why to even out energy input and outgo?

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