Planetwatch series – Ominous Convergence
Another crisis, no less damaging, is gradually looming on the horizon – oil crisis. Recent reports indicate that world oil reserve estimates are grossly inflated. Hubbert’s peak, long rubbished as fantasy, after all might have had a grain of truth. However, oil hungry nations chose to underplay the hypothesis to keep prices at bay. Crude oil reserves are depleting. Cost of exploration and production has increased. The age of low hanging fruits, the easily accessible oil deposits is over. Today, new crude discoveries have to be extracted from remote, inhospitable terrain or leached out of tar sands. Stringent environmental and safety regulations have also increased the cost of production, refining and distribution. Oil prices have been steadily climbing and hover around $80.00 today. Countries forewarned of an impending crisis are scouting the globe to strike oil deals. Hedge funds and venture capitalists are moving in to exploit the scarcity. A recent web article (Link) cited knowledge of impending oil crisis as the logic behind Warren Buffett’s acquisition of an US Railway company. Right now the hype is focused on climate change and Copenhagen negotiations. It won’t be long before skyrocketing oil prices push climate change concerns to the background.
Human civilization across the globe, in cities and villages alike, is heavily dependent on crude oil and fossil fuels. Declining availability will force oil producing nations to drastically cut down production in order to safeguard themselves. Oil prices would soar, purchasing power of nations would plummet and global economy would nosedive. Credit will vanish. Countries will go bankrupt unable to raise money through taxes.
Imagine the sledgehammer power with which world would be battered when these mutually reinforcing forces, climate change, oil crisis and economic meltdown, converge. It would tremendously strain the dwindling natural resources and tapering oil reserves. Agriculture and food production would decline. Instead of the calamitous, earth shattering forces shown in the movie 2012, it would be hunger, epidemics and natural disasters that decimate humanity. Consequences for a relatively poor and overpopulated country like India are indescribable. With politicians and bureaucrats are still bickering over emission cuts, it is virtually impossible to avert disaster.
When societies undergo intense stress, the survival struggle could rapidly escalate into war. Many countries have large nuclear arsenal under their disposal presumably as a deterrent. It is not difficult to envisage a situation where unscrupulous politicians or military decide to use nuclear weapons to resolve differences.
End of the world have been predicted many times over in the course of human history. But now, more than ever, circumstances and catalysts exist which could realize our worst fears. My fervent hope is that when world leaders meet to negotiate, the welfare of humanity would be their prime concern rather than short term political gain.