
(Archdruid Report) -- The recent downward lurch in the price of oil, among its other effects, has provided a good look at the downward arc of a cycle of public discourse about energy that will likely become all too familiar during the months and years ahead of us. As oil prices rose to new records a few weeks back, the media bristled with pundits warning about an imminent energy crisis in language ranging from sober to apocalyptic. Now that prices are cycling down again, another round of pundits has surfaced in the media, insisting that the first lot were wrong and we really can burn as much energy as we want.
These same frenetic swings in popular media and public opinion showed up in the 1970s, of course, and this is not the first such cycle we’ve seen since energy prices began climbing out of the basement in 2003 or so. I suspect a comparison of the rate of pro- and anti-peak oil pieces in the media with upward and downward movements in the price of oil would find a solid positive correlation, though my college statistics classes are far enough in my past that I’ll let someone else apply for the grant.
Such short-term gyrations deserve attention. As I’ve suggested in several posts here, much of the impact of peak oil – and indeed of the wider crisis of industrial society, of which peak oil forms only one aspect – takes the form of increased volatility rather than linear change. This in itself is a source of serious economic and social disruption; if governments, businesses, and families have no way of knowing whether gasoline, or diesel fuel, or home heating oil will be $3 a gallon or $6 a gallon six months from now, planning for the future becomes an exercise in high-stakes gambling, especially as the same uncertainty percolates through the rest of the economy in the form of unstable energy and raw material costs.
Still, these short-term effects are only half the story. Behind them, and more than half hidden by them, is the long-term trend that has lifted energy prices from the all-time lows of the 1980s and 1990s to today’s troubling levels. If that trend continues into the future, as seems most likely, not many of the economic arrangements of the last thirty years are well equipped to survive the experience. The resulting transformations will play out on many levels, but one of the most important – and the one I want to talk about today – is the political sphere.
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