(Archdruid Report) -- For those of us who have been watching the energy scene for the last few decades, there’s a certain wry amusement to be gained from the daily fare on the peak oil newsblogs. Once the conservation and appropriate tech movements of the 1970s collapsed beneath the weight of the falling oil prices of the 1980s, it became highly unfashionable to question the theory that the market economy could extract infinite resources from a finite planet.
During the quarter century of extravagant waste that followed, conventional wisdom across the industrial world’s political and cultural spectrum insisted that turning sows' ears into silk purses was not merely possible, but a great investment opportunity that would drive a bigger and shinier global economy than the one we already had. A very short time ago, it bears remembering, the suggestion that crude oil might cost more than $60 a barrel within this decade was roundly dismissed as preposterous alarmism, while the grim prospects of economic decline and global famine raised by concerned voices in the Seventies were so far off the radar screens that nobody even bothered to denounce them.
A glance down the leading stories on Energy Bulletin or The Oil Drum makes a tolerably good indicator of how far we’ve come from that comfortable consensus. Today a widely used measure of crude oil prices broke $111, after recovering from a sharp selloff a few weeks back that took it down all the way to the upper $90s. Meanwhile the energy sources and technological breakthroughs that were supposed to come on line once oil hit $30, or $40, or $50 a barrel are still nowhere to be seen.
The wider picture is no more encouraging. Crippling electricity shortages outside the industrial world are starting to play hob with a global economy that depends on Third World factories to produce First World amenities. Likewise, the blowback from US energy policies that poured a fifth of the American corn harvest into ethanol is sending grain prices soaring worldwide, raising the unwelcome prospect that millions of the poor around the planet may not be able to buy enough food to survive the coming months. Barring some improbable deus ex machina that comes along in time to bail us out of the mess we’ve made for ourselves, it’s fair to say, the limits to growth are back.
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