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Peakoil.com :: View topic - Why We Aren't Cutting Back Like in the 80's
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Why We Aren't Cutting Back Like in the 80's
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MonteQuest
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PostPosted: Thu May 24, 2007 7:51 pm    Post subject: Re: Why We Aren't Cutting Back Like in the 80's Add User to Ignore List Reply with quote

yesplease wrote:
Small errors aside, based on that graph I posted, assuming economic trends remain consistent, in order to see a drop in consumption, we would need to see roughly the same percentage increase in price per year as we saw prior to demand drop post 78. This seems to be a steady ~40% increase in average price per year.


No, we would need to see efficiency gains equal to those achieved back then and experience another depression like that achieved back then.

It was an economic contraction that dropped consumption, not the price of gas at the pump.
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vision-master
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PostPosted: Thu May 24, 2007 7:57 pm    Post subject: Re: Why We Aren't Cutting Back Like in the 80's Add User to Ignore List Reply with quote

The masses will pay about any price to keep driving & they ain't giving up them SUV's or 4x4's. No way Ray...............
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yesplease
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PostPosted: Thu May 24, 2007 7:58 pm    Post subject: Re: Why We Aren't Cutting Back Like in the 80's Add User to Ignore List Reply with quote

MonteQuest wrote:
No, we would need to see efficiency gains equal to those achieved back then and experience another depression like that achieved back then.

It was an economic contraction that dropped consumption, not the price of gas at the pump.


yesplease wrote:
Small errors aside, based on that graph I posted, assuming economic trends remain consistent, in order to see a drop in consumption, we would need to see roughly the same percentage increase in price per year as we saw prior to demand drop post 78. This seems to be a steady ~40% increase in average price per year.


Does anyone read what I post before responding? Both efficiency and GDP are quantified in terms of economics. There will likely be small changes, but the pattern likely be the same. Same crap different dance. Wink
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firestarter
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PostPosted: Thu May 24, 2007 8:18 pm    Post subject: Re: Why We Aren't Cutting Back Like in the 80's Add User to Ignore List Reply with quote

From 1979 to 1983 I worked building Chicago's Deep Tunnel. Even though vehicles largely weren't as efficient as they are now, most of my fellow workers, and myself, drove CARS to work, for various economic and job related reasons (job related because construction workers who owned trucks were persuaded too often by their bosses to use them as unsubsidized company vehicles). In 79 and 80 I carpooled with my dad and another job superintendent in a GREMLIN! In short, the scale of things automobile wise was to my memory way smaller to begin with, and as such the hardships associated with conservation negligible.

As Monte has pointed out many times over the ramifications of conservation today are much more pronounced given the bubbles that have sprouted up with our large, unsustainable living arrangements, not to mention Jevon's Paradox influence vis a vis globalization. IMO it's likely too late for cut backs to have any positive effect. It's different this time round.
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aahala
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PostPosted: Fri May 25, 2007 11:03 am    Post subject: Re: Why We Aren't Cutting Back Like in the 80's Add User to Ignore List Reply with quote

MonteQuest wrote:


It was an economic contraction that dropped consumption, not the price of gas at the pump.


That statement is not supported by the facts.

The price shock and the greatest decline in gasoline useage, preceeded in time the greatest fall in the economy. This is NOT
my opinion, but the historical facts.

Three things were overlapping -- price, efficency and economic
decline, but they were not at their greatest at the same point in
time.
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Pixie
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PostPosted: Fri May 25, 2007 3:54 pm    Post subject: Re: Why We Aren't Cutting Back Like in the 80's Add User to Ignore List Reply with quote

Monte,

Gas prices FELL in the late 80's, when gas consumption went up. Gas prices SPIKED in 1981, and gas consumption went down.

I read that same article, which said that most people believed they'd cut back on their driving at about $4.38 for gas, which is a slightly LOWER price than I was predicting when I started this thread. I feel quite supported by that article.

Look, I am not saying that people will cut back on their driving enough to stop peak oil. All I am saying is that when the gas prices rise that high, you are going to see a paradigm shift in the way people think about driving. People will be experiencing a cost for driving that we have never seen before, not even in the 70's nad 80's. Right now, as pointed out in that article you quoted, most people do see all their driving as essential. I claim that $4+ gas will cause people's brains to do some imaginative thinking that would be impossible before that point, and you will see a change in behavior sometime around that point. AGAIN, I'M NOT CLAIMING IT'LL STOP OIL DEPLETION, and I'm not claiming that bicycles will rule the streets. Wait until $10 gas for that.
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Tyler_JC
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PostPosted: Fri May 25, 2007 4:34 pm    Post subject: Re: Why We Aren't Cutting Back Like in the 80's Add User to Ignore List Reply with quote

Here's an example.

On my street there are between 6 and 10 high school kids depending on the year.

Each one of them takes a separate car into school every day.

They could very easily carpool but they choose not to because gasoline is still very inexpensive, even for teenagers with minimum wage jobs.

Throw $6 gas into the mix and many of them will change their behavior and walk/bike/carpool instead.

No societal chaos, no riots in the streets, no food shortages, just a few kids responding to higher prices and deciding that consuming the resource isn't worth it.

There are hundreds of millions of people in the exact same situation throughout the western world. We consume lots of energy because we enjoy consuming lots of energy, not because we need to consume that much.

It's examples like that which have convinced me that the fast crash die-off by 2012 scenario is completely inaccurate. We have a tremendous amount of waste that can be removed from the system before the essentially services get cut off.
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firestarter
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PostPosted: Fri May 25, 2007 4:54 pm    Post subject: Re: Why We Aren't Cutting Back Like in the 80's Add User to Ignore List Reply with quote

Tyler_JC wrote:


It's examples like that which have convinced me that the fast crash die-off by 2012 scenario is completely inaccurate. We have a tremendous amount of waste that can be removed from the system before the essentially services get cut off.



The waste you speak of has been creating a bubble existence (jobs) writ large. Conservation to my mind means a number of things, not the least of which is a severe contraction in the employment sphere. The ripple effects subsequent to the dynamics above could very well be catastrophic to our ponzi economy. While the fast crash die-off isn't a necessary corollary of cutting back on our happy motoring utopia I still wouldn't completely rule the chain reaction, doomer scenario out.
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I_Like_Plants
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PostPosted: Fri May 25, 2007 8:28 pm    Post subject: Re: Why We Aren't Cutting Back Like in the 80's Add User to Ignore List Reply with quote

firestarter wrote:

The waste you speak of has been creating a bubble existence (jobs) writ large. Conservation to my mind means a number of things, not the least of which is a severe contraction in the employment sphere. The ripple effects subsequent to the dynamics above could very well be catastrophic to our ponzi economy. While the fast crash die-off isn't a necessary corollary of cutting back on our happy motoring utopia I still wouldn't completely rule the chain reaction, doomer scenario out.


I have to agree - luxuries have been made necessities, and almost all of us make our living supplying the luxuries. Our ponzi economy is not immmune to a cascade type failure at all - it's just that we haven't had once since 1929.
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MonteQuest
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PostPosted: Fri May 25, 2007 11:04 pm    Post subject: Re: Why We Aren't Cutting Back Like in the 80's Add User to Ignore List Reply with quote

Tyler_JC wrote:
We have a tremendous amount of waste that can be removed from the system before the essentially services get cut off.


You know, I'm becoming convinced that people cannot think systematically on here.

There is no such thing as waste, neither in nature or in our current economic system.

Waste in nature is some other species food.

Waste in our economic system is someone's job.
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MonteQuest
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PostPosted: Fri May 25, 2007 11:07 pm    Post subject: Re: Why We Aren't Cutting Back Like in the 80's Add User to Ignore List Reply with quote

aahala wrote:
MonteQuest wrote:


It was an economic contraction that dropped consumption, not the price of gas at the pump.


That statement is not supported by the facts.

The price shock and the greatest decline in gasoline useage, preceeded in time the greatest fall in the economy. This is NOT
my opinion, but the historical facts.

Three things were overlapping -- price, efficency and economic
decline, but they were not at their greatest at the same point in
time.


I'm 56 and was right in the thick of things and lost a business due to the depression of 1982.

How old are you?
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Tyler_JC
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PostPosted: Fri May 25, 2007 11:51 pm    Post subject: Re: Why We Aren't Cutting Back Like in the 80's Add User to Ignore List Reply with quote

MonteQuest wrote:

There is no such thing as waste, neither in nature or in our current economic system.

Waste in nature is some other species food.

Waste in our economic system is someone's job.


So that person can't find a new job that uses less energy?

Companies can't reduce resource consumption without cutting the payroll?

Discovering ways to use resources more efficiently is what has lead to the massive decrease in energy intensity over the past century.

Until relatively recently, natural gas was considered a liability and a waste product. If an oil company found a pocket of natural gas, the gas would be burned off on-site in order just to get rid of it. Then we realized that natural gas was a useful fuel for making electricity and they stopped burning it just to get rid of it.

Currently, there is plenty of natural gas (6000+ TCF) but transportation challenges prevent this natural gas from reaching the market.

Waste in nature may be someone's food, but waste in the economy is often just that, waste.

Excessive bureaucracy might create jobs for the bureaucrats but it destroys jobs in the private sector. Wasteful government spending on bridges to nowhere in Alaska will certainly create jobs in the Alaskan bridge construction industry...but it will cost jobs somewhere else.

When capital in an economy is misallocated (wasted) there is a net loss of jobs. We just never get a chance to see the productivity that could have been.
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Blacksmith
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PostPosted: Sat May 26, 2007 12:44 am    Post subject: Re: Why We Aren't Cutting Back Like in the 80's Add User to Ignore List Reply with quote

I forget who was the President in the 1980's
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johnmarkos
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PostPosted: Sat May 26, 2007 1:09 am    Post subject: Re: Why We Aren't Cutting Back Like in the 80's Add User to Ignore List Reply with quote

Blacksmith wrote:
I forget who was the President in the 1980's


I try to forget who was the president in the 1980s.

Then I try to forget who is the president now.
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firestarter
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PostPosted: Sat May 26, 2007 7:12 am    Post subject: Re: Why We Aren't Cutting Back Like in the 80's Add User to Ignore List Reply with quote

On a side note think of all the jobs that are dependent on the Iraq war (military industrial complex in general), the drug war (prison industrial complex in general), the "schooling crisis" ("education" industrial complex in general) and other various crap-storms manufactured over the years. A contraction in any of the above would lead to serious economic dislocations, thus they don't go away without much kicking and screaming if at all. On the other hand a contraction in the way we generally consume energy (conspicuous consumption, for starters) would be downright catastrophic. We must motor on exponentially at all costs...or else...
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