Winners and Losers in the Great Global Energy Struggle to Come: The New Thirty Years’ War
A 30-year war for energy preeminence? You wouldn’t wish it even on a
desperate planet. But that’s where we’re headed and there’s no
turning back.
From 1618 to 1648, Europe was engulfed in a series of intensely brutal conflicts known collectively as the Thirty Years’ War.
It was, in part, a struggle between an imperial system of governance
and the emerging nation-state. Indeed, many historians believe that the
modern international system of nation-states was crystallized in the
Treaty of Westphalia of 1648, which finally ended the fighting.
Think of us today as embarking on a new Thirty Years’ War. It may
not result in as much bloodshed as that of the 1600s, though bloodshed
there will be, but it will prove no less momentous for the future of the
planet. Over the coming decades, we will be embroiled at a global
level in a succeed-or-perish contest among the major forms of energy,
the corporations which supply them, and the countries that run on them.
The question will be: Which will dominate the world’s energy supply in
the second half of the twenty-first century? The winners will
determine how -- and how badly -- we live, work, and play in those
not-so-distant decades, and will profit enormously as a result. The
losers will be cast aside and dismembered.
Why 30 years? Because that’s how long it will take for experimental
energy systems like hydrogen power, cellulosic ethanol, wave power,
algae fuel, and advanced nuclear reactors to make it from the laboratory
to full-scale industrial development. Some of these systems (as well,
undoubtedly, as others not yet on our radar screens) will survive the
winnowing process. Some will not. And there is little way to predict
how it will go at this stage in the game. At the same time, the use of
existing fuels like oil and coal, which spew carbon dioxide into the
atmosphere, is likely to plummet, thanks both to diminished supplies and
rising concerns over the growing dangers of carbon emissions.
Tomgram: Michael Klare, The Energy Landscape of 2041
Let’s see: today, it’s a story about rising sea levels. Now, close
your eyes, take a few seconds, and try to imagine what word or words
could possibly go with such a story.
Time’s up, and if “faster,” “far faster,” “fastest,” or “unprecedented”
didn’t come to mind, then the odds are that you’re not actually living
on planet Earth in the year 2011. Yes, a new study came out in the Proceedings of the National Academy of Sciences that measures sea-level rise over the last 2,000 years and -- don’t be shocked -- it’s never risen faster than now.
Earlier in the week, there was that report on the state of the oceans
produced by a panel of leading marine scientists. Now, close your
eyes and try again. Really, this should be easy. Just look at the
previous paragraph and choose “unprecedented,”
and this time pair it with “loss of species comparable to the great
mass extinctions of prehistory,” or pick “far faster” (as in “the seas
are degenerating far faster than anyone has predicted”), or for a change
of pace, how about “more quickly” as in “more quickly than had been predicted” as the “world’s oceans move into ‘extinction’ phase.”
Or consider a third story: arctic melting. This time you’re 100% correct! It’s “faster”
again (as in “than the Intergovernmental Panel on Climate Change
forecasts” of 2007). But don’t let me bore you. I won’t even mention
the burning southwest, or Arizona’s Wallow fire, “the largest in state history,” or Texas’s “unprecedented wildfire season” (now “getting worse”), or the residents of Minot, North Dakota, abandoning their city to “unprecedented” floods, part of a deluge in the northern U.S. that is “unprecedented in modern times.”
It’s just superlatives and records all the way, and all thanks to those globally rising “
record” temperatures and all those burning fossil fuels emitting “record” levels of greenhouse gases (“
worst ever” in 2010) that so many governments,
ours at the very
top of the list,
are basically ducking. Now, multiply those fabulous adjectives and
superlative events -- whether melting, dying, rising, or burning -- and
you’re heading toward the world of 2041, the one that
TomDispatch energy expert and author of
Rising Powers, Shrinking Planet
Michael Klare writes about today. It's a world where if we haven't
kicked our fossil-fuel habit, we won’t have superlatives strong enough
to describe it.
Tom
Winners and Losers in the Great Global Energy Struggle to Come:
The New Thirty Years’ War
by Michael T. Klare
This will be a war because the future profitability, or even
survival, of many of the world’s most powerful and wealthy corporations
will be at risk, and because every nation has a potentially
life-or-death stake in the contest. For giant oil companies like BP,
Chevron, ExxonMobil, and Royal Dutch Shell, an eventual shift away from
petroleum will have massive economic consequences. They will be forced
to adopt new economic models and attempt to corner new markets, based on
the production of alternative energy products, or risk collapse or
absorption by more powerful competitors. In these same decades, new
companies will arise, some undoubtedly coming to rival the oil giants in
wealth and importance.
The fate of nations, too, will be at stake as they place their bets
on competing technologies, cling to their existing energy patterns, or
compete for global energy sources, markets, and reserves. Because the
acquisition of adequate supplies of energy is as basic a matter of
national security as can be imagined, struggles over vital resources --
oil and natural gas now, perhaps lithium or nickel (for electric-powered
vehicles) in the future -- will trigger armed violence.
When these three decades are over, as with the Treaty of Westphalia,
the planet is likely to have in place the foundations of a new system
for organizing itself -- this time around energy needs. In the
meantime, the struggle for energy resources is guaranteed to grow ever
more intense for a simple reason: there is no way the existing energy
system can satisfy the world’s future requirements. It must be replaced
or supplemented in a major way by a renewable alternative system or,
forget Westphalia, the planet will be subject to environmental disaster
of a sort hard to imagine today.
The Existing Energy Lineup
To appreciate the nature of our predicament, begin with a quick look at the world’s existing energy portfolio. According to BP,
the world consumed 13.2 billion tons of oil-equivalent from all sources
in 2010: 33.6% from oil, 29.6% from coal, 23.8% from natural gas, 6.5%
from hydroelectricity, 5.2% from nuclear energy, and a mere 1.3% percent
from all renewable forms of energy. Together, fossil fuels -- oil,
coal, and gas -- supplied 10.4 billion tons, or 87% of the total.
Even attempting to preserve this level of energy output in 30 years’
time, using the same proportion of fuels, would be a near-hopeless
feat. Achieving a 40% increase
in energy output, as most analysts believe will be needed to satisfy
the existing requirements of older industrial powers and rising demand
in China and other rapidly developing nations, is simply impossible.
Two barriers stand in the way of preserving the existing energy
profile: eventual oil scarcity and global climate change. Most energy
analysts expect conventional oil output -- that is, liquid oil derived
from fields on land and in shallow coastal waters -- to reach a production peak
in the next few years and then begin an irreversible decline. Some
additional fuel will be provided in the form of “unconventional” oil --
that is, liquids derived from the costly, hazardous, and ecologically
unsafe extraction processes involved in producing tar sands, shale oil,
and deep-offshore oil -- but this will only postpone the contraction in
petroleum availability, not avert it. By 2041, oil will be far less
abundant than it is today and so incapable of meeting anywhere near
33.6% of the world’s (much expanded) energy needs.
Meanwhile, the accelerating pace of climate change will produce ever more damage -- intense storm activity, rising sea levels, prolonged droughts, lethal heat waves, massive forest fires,
and so on -- finally forcing reluctant politicians to take remedial
action. This will undoubtedly include an imposition of curbs on the
release via fossil fuels of carbon dioxide and other greenhouse gases,
whether in the form of carbon taxes, cap-and-trade plans, emissions
limits, or other restrictive systems as yet not imagined. By 2041,
these increasingly restrictive curbs will help ensure that fossil fuels
will not be supplying anywhere near 87% of world energy.
The Leading Contenders
If oil and coal are destined to fall from their position as the
world’s paramount source of energy, what will replace them? Here are
some of the leading contenders.
Natural gas: Many energy experts and political leaders view natural gas
as a “transitional” fossil fuel because it releases less carbon dioxide
and other greenhouse gases than oil and coal. In addition, global
supplies of natural gas are far greater than previously believed, thanks
to new technologies -- notably horizontal drilling and the
controversial procedure of hydraulic fracturing (“fracking”) -- that
allow for the exploitation of shale gas reserves once considered
inaccessible. For example, in 2011, the U.S. Department of Energy (DoE)predicted
that, by 2035, gas would far outpace coal as a source of American
energy, though oil would still outpace them both. Some now speak of a “natural gas revolution” that will see it overtake oil as the world’s number one fuel, at least for a time. But fracking poses a threat
to the safety of drinking water and so may arouse widespread
opposition, while the economics of shale gas may, in the end, prove less
attractive than currently assumed. In fact, many experts now believe
that the prospects for shale gas have been oversold, and that stepped-up investment will result in ever-diminishing returns.
Nuclear power: Prior to the March 11th earthquake/tsunami disaster and a series of core meltdowns
at the Fukushima Daiichi nuclear power complex in Japan, many analysts
were speaking of a nuclear "renaissance," which would see the
construction of hundreds of new nuclear reactors over the next few
decades. Although some of these plants in China and elsewhere are likely to be built, plans for others -- in Italy and Switzerland, for example -- already appear to have been scrapped. Despite repeated assurances that U.S. reactors are completely safe, evidence
is regularly emerging of safety risks at many of these facilities.
Given rising public concern over the risk of catastrophic accident, it
is unlikely that nuclear power will be one of the big winners in 2041.
However, nuclear enthusiasts (including President Obama) are championing the manufacture of small “modular” reactors
that, according to their boosters, could be built for far less than
current ones and would produce significantly lower levels of radioactive
waste. Although the technology for, and safety of, such
“assembly-line” reactors has yet to be demonstrated, advocates claim
that they would provide an attractive alternative to both large
conventional reactors with their piles of nuclear waste and coal-fired
power plants that emit so much carbon dioxide.
Wind and solar: Make no mistake, the world
will rely on wind and solar power for a greater proportion of its energy
30 years from now. According to the International Energy Agency,
those energy sources will go from approximately 1% of total world
energy consumption in 2008 to a projected 4% in 2035. But given the
crisis at hand and the hopes that exist for wind and solar, this would
prove small potatoes indeed. For these two alternative energy sources
to claim a significantly larger share of the energy pie, as so many
climate-change activists desire, real breakthroughs will be necessary,
including major improvements in the design of wind turbines and solar collectors,
improved energy storage (so that power collected during sunny or windy
periods can be better used at night or in calm weather), and a far more
efficient and expansive electrical grid
(so that energy from areas favored by sun and wind can be effectively
distributed elsewhere). China, Germany, and Spain have been making the
sorts of investments in wind and solar energy that might give them an advantage in the new Thirty Years’ War -- but only if the technological breakthroughs actually come.
Biofuels and algae: Many experts see a
promising future for biofuels, especially as “first generation” ethanol,
based largely on the fermentation of corn and sugar cane, is replaced
by second- and third-generation fuels derived from plant cellulose
(“cellulosic ethanol”) and bio-engineered algae. Aside from the fact
that the fermentation process requires heat (and so consumes energy even
while releasing it), many policymakers object
to the use of food crops to supply raw materials for a motor fuel at a
time of rising food prices. However, several promising technologies to
produce ethanol by chemical means from the cellulose
in non-food crops are now being tested, and one or more of these
techniques may well survive the transition to full-scale commercial
production. At the same time, a number of companies,
including ExxonMobil, are exploring the development of new breeds of
algae that reproduce swiftly and can be converted into biofuels. (The
U.S. Department of Defense is also investing in some of these experimental methods with an eye toward transforming the American military, a great fossil-fuel guzzler, into a far “greener” outfit.) Again, however, it is too early to know which (if any) biofuel endeavors will pan out.
Hydrogen: A decade ago, many experts were
talking about hydrogen’s immense promise as a source of energy.
Hydrogen is abundant in many natural substances (including water and
natural gas) and produces no carbon emissions when consumed. However,
it does not exist by itself in the natural world and so must be
extracted from other substances -- a process
that requires significant amounts of energy in its own right, and so is
not, as yet, particularly efficient. Methods for transporting,
storing, and consuming hydrogen on a large scale have also proved harder
to develop than once imagined. Considerable research
is being devoted to each of these problems, and breakthroughs certainly
could occur in the decades to come. At present, however, it appears
unlikely that hydrogen will prove a major source of energy in 2041.
X the Unknown: Many other sources
of energy are being tested by scientists and engineers at universities
and corporate laboratories worldwide. Some are even being evaluated on a
larger scale in pilot projects of various sorts. Among the most
promising of these are geothermal energy, wave energy, and tidal energy.
Each taps into immense natural forces and so, if the necessary
breakthroughs were to occur, would have the advantage of being
infinitely exploitable, with little risk of producing greenhouse gases.
However, with the exception of geothermal, the necessary technologies
are still at an early stage of development. How long it may take to
harvest them is anybody’s guess. Geothermal energy does show considerable promise, but has run into problems, given the need to tap it by drilling deep into the earth, in some cases triggering small earthquakes.
From time to time, I hear of even less familiar prospects for energy
production that possess at least some hint of promise. At present, none
appears likely to play a significant role in 2041, but no one should
underestimate humanity’s technological and innovative powers. As with
all history, surprise can play a major role in energy history, too.
Energy efficiency: Given the lack of an
obvious winner among competing transitional or alternative energy
sources, one crucial approach to energy consumption in 2041 will surely
be efficiency at levels unimaginable today: the ability to
achieve maximum economic output for minimum energy input. The lead
players three decades from now may be the countries and corporations
that have mastered the art of producing the most with the least. Innovations
in transportation, building and product design, heating and cooling,
and production techniques will all play a role in creating an
energy-efficient world.
When the War Is Over
Thirty years from now, for better or worse, the world will be a far
different place: hotter, stormier, and with less land (given the loss of
shoreline and low-lying areas to rising sea levels). Strict
limitations on carbon emissions will certainly be universally enforced
and the consumption of fossil fuels, except under controlled
circumstances, actively discouraged. Oil will still be available to
those who can afford it, but will no longer be the world’s paramount
fuel. New powers, corporate and otherwise, in new combinations will
have risen with a new energy universe. No one can know, of course, what
our version of the Treaty of Westphalia will look like or who will be
the winners and losers on this planet. In the intervening 30 years,
however, that much violence and suffering will have ensued goes without
question. Nor can anyone say today which of the contending forms of
energy will prove dominant in 2041 and beyond.
Were I to wager a guess, I might place my bet on energy systems that
were decentralized, easy to make and install, and required relatively
modest levels of up-front investment. For an analogy, think of the
laptop computer of 2011 versus the giant mainframes of the 1960s and
1970s. The closer that an energy supplier gets to the laptop model (or
so I suspect), the more success will follow.
From this perspective, giant nuclear reactors and coal-fired plants
are, in the long run, less likely to thrive, except in places like China
where authoritarian governments still call the shots. Far more
promising, once the necessary breakthroughs come, will be renewable
sources of energy and advanced biofuels that can be produced on a
smaller scale with less up-front investment, and so possibly
incorporated into daily life even at a community or neighborhood level.
Whichever countries move most swiftly to embrace these or similar
energy possibilities will be the likeliest to emerge in 2041 with
vibrant economies -- and given the state of the planet, if luck holds,
just in the nick of time.