by Alex Evans | Jul 10, 2007 | Climate and resource scarcity, Global system
Usually when you see phrases like “oil crunch in five years”, you assume that you’re being addressed by a peak-oiler who is about to go on to explain to you the composition of the canned food stash that he’s secured in his attic. So when you realise that you’re actually reading the FT, and the people using the phrase are the International Energy Agency, it’s easy to do a double-take. But there it is, in black and white (well, pink):
In its starkest warning yet on the world’s fuel outlook, the International Energy Agency said “oil looks extremely tight in five years time” and there are “prospects of even tighter natural gas markets at the turn of the decade”.
The IEA said that supply was falling faster than expected in mature areas, such as the North Sea or Mexico, while projects in new provinces such as the Russian Far East, faced long delays. Meanwhile consumption is accelerating on strong economic growth in emerging countries.
The problem is exacerbated by the fact that supply from non-members of the Organisation of the Petroleum Exporting Countries will increase at an annual pace of 1 per cent, or less than half the rate of the demand rise.
The widening gap between rising consumption and lagging non-Opec supply will force Opec to sharply increase its production in the next five years.
Lawrence Eagles, head of the IEA’s oil market division, told the Financial Times: “If we get to the point were there is insufficient supply, the only way to balance the market will be through higher prices and a drop in demand.
IEA’s gloomy pronouncement comes within a week of the UN Food and Agriculture Organisation forecast of food price increases of between 20 and 50 per cent over the next decade, thanks to biofuels, climate change, water scarcity and increased demand (see GlobalDashboard’s one pager on how scarcity trends intersect here).
All of which raises the rather pertinent question: Does anyone, at either national or global level, have a plan to manage all this – or indeed clarity over whose job it is to worry about such a cross-cutting trend?
P.S. If you’re now wondering what you should have stashed in the attic: help is at hand.
by Alex Evans | Jul 7, 2007 | Climate and resource scarcity, Global system
From the FT today:
Food prices are set for a period of “significant and long-lasting” inflation because of demand from China and India and the use of crops for biofuels, according to the head of Nestlé . Peter Brabeck, chairman of the world’s largest food company, said rises in food prices reflected not only temporary factors but also long-term and structural changes in supply and demand.
The Nestlé chairman cited population growth, rising demand from “the phenomena of India and China” and the use of food products by biofuel producers as causes of pressure in international food markets.
Reports from two international organisations this week forecast food price rises of between 20 and 50 per cent over the next decade.
by David Steven | Jun 25, 2007 | Climate and resource scarcity
Interesting differences of opinion about how serious a problem we’re facing…
Potted Bert Metz: To avoid dangerous climate change (a 2 degree increase in mean global temperature), we need to stabilise emissions by 2015 and get them back to current levels by 2040. Even if this is achieved, we’re still going to see very costly damage.
Potted Matthew Hulbert: Don’t expect a ‘seminal moment’ where climate change is definitively linked to conflict, but security is undoubtedly going to get worse. Climate change is an undoubted ‘threat multiplier’. Africa is most vulnerable, where the climate is already challenging, many people live close to the edge, and resilience is in short supply.
Potted Brahma Chellaney: Yeah it’s going to be bad, but the doomsayers are painting too black a picture. “Scaremongering makes it harder to come up with a realistic response.” The green bandwagon is already leading us down some dead ends. Biofuels, for instance, are a sop for the farm lobby, but will push food prices higher and harm the poor. Innovation and ingenuity are the answer. (more…)
by Alex Evans | May 9, 2007 | Climate and resource scarcity
A gaggle of UN agencies have just published a report on biofuels, says the Guardian this morning (see also previous Global Dashboard posts on biofuels). Although the report presents a mixed picture of upsides and downsides, it’s clear about the food security risks:
Expanded production [of biofuel crops] adds uncertainty. It could also increase the volatility of food prices with negative food security implications… The benefits to farmers are not assured, and may come with increased costs. [Growing biofuel crops] can be especially harmful to farmers who do not own their own land, and to the rural and urban poor who are net buyers of food, as they could suffer from even greater pressure on already limited financial resources. At their worst, biofuel programmes can also result in a concentration of ownership that could drive the world’s poorest farmers off their land and into deeper poverty.
Absolutely. Slightly confusing, then, to see UNEP head Achim Steiner saying the opposite, according to the FT last month:
The UN’s top environment official has backed a European Union plan to require the blending of plant-based biofuels into road fuels despite fears by environmentalists that this could lead to increased deforestation in south-east Asia and Brazil. Achim Steiner, head of the UN Environment Programme, said on Thursday that biofuels were needed to reduce global dependence on fossil fuels.
(more…)
by Alex Evans | Apr 13, 2007 | Climate and resource scarcity, Economics and development
ForeignPolicy.com is running a list of predictions that didn’t come true, including free atomic energy for all, global cooling, Japan ruling the world, another 9/11, and too many people on earth. What actually happened on the last of these, they ask?
Birthrates leveled off, food production drastically expanded, and technology improved. The 6.5 billion people alive today are far more than most imagined could possibly be supported a few decades ago. Limited resources and widespread poverty remain challenges for billions, but in nothing like the apocalyptic form that the alarmists predicted. The United Nations now predicts that the world’s population will level off at 9 billion by 2300.
Well, birthrates may have levelled off relatively, but global population certainly ain’t level just yet. (Might be an idea to check those figures, too – the UN’s prediction is actually 9 billion people by 2045, not 2300.) But more generally, here are a few reasons why reports of Malthus’s demise – well, his reputation’s demise, at any rate – may be premature:
(more…)
