Graphic: yellow is demand, green supply.

Asia Times just published the article The rise of the new energy world order by Michael T Klare. Klare writes:

The combination of rising demand, the emergence of powerful new energy consumers, and the contraction of the global energy supply is demolishing the energy-abundant world we are familiar with and creating in its place a new world order. Think of it as rising powers/shrinking planet.

This new world order will be characterized by fierce international competition for dwindling stocks of oil, natural gas, coal and uranium, as well as by a tidal shift in power and wealth from energy-deficit states like China, Japan and the United States to energy-surplus states like Russia, Saudi Arabia and Venezuela. In the process, the lives of everyone will be affected in one way or another – with poor and middle-class consumers in the energy-deficit states experiencing the harshest effects. That’s most of us and our children, in case you hadn’t quite taken it in.

Here, in a nutshell, are five key forces in this new world order which will change our planet:

  • Intense competition between older and newer economic powers for available supplies of energy.

Until very recently, the mature industrial powers of Europe, Asia and North America consumed the lion’s share of energy and left the dregs for the developing world. . . . But that ratio is changing . . .
. . .
In this new stage of energy competition, the advantages long enjoyed by Western energy majors has been eroded by vigorous, state-backed upstarts from the developing world.


  • The insufficiency of primary energy supplies.


By all accounts, the global supply of oil will expand for perhaps another half decade before reaching a peak and beginning to decline, while supplies of natural gas, coal and uranium will probably grow for another decade or two before peaking and commencing their own inevitable declines. In the meantime, global supplies of these existing fuels will prove incapable of reaching the elevated levels demanded.
. . .
. . . So expect global energy shortages and high prices to be a constant source of hardship.

  • The painfully slow development of energy alternatives.

. . . alternatives, which now contribute only a tiny percentage of the world’s net fuel supply, are simply not being developed fast enough to avert the multifaceted global energy catastrophe that lies ahead.
. . .
In global warming terms, the implications are nothing short of catastrophic: Rising reliance on coal (especially in China, India and the United States) means that global emissions of carbon dioxide are projected to rise by 59% over the next quarter-century, from 26.9 billion metric tons to 42.9 billion tons. The meaning of this is simple. If these figures hold, there is no hope of averting the worst effects of climate change.

When it comes to global energy supplies, the implications are nearly as dire. To meet soaring energy demand, we would need a massive influx of alternative fuels, which would mean equally massive investment – in the trillions of dollars – to ensure that the newest possibilities move rapidly from laboratory to full-scale commercial production; but that, sad to say, is not in the cards.

Instead, the major energy firms (backed by lavish US government subsidies and tax breaks) are putting their mega-windfall profits from rising energy prices into vastly expensive (and environmentally questionable) schemes . . .

  • A steady migration of power and wealth from energy-deficit to energy-surplus nations:

In the case of oil and natural gas, the major energy-surplus states can be counted on two hands. Ten oil-rich states possess 82.2% of the world’s proven reserves. In order of importance, they are: Saudi Arabia, Iran, Iraq, Kuwait, the United Arab Emirates, Venezuela, Russia, Libya, Kazakhstan and Nigeria. The possession of natural gas is even more concentrated. Three countries – Russia, Iran and Qatar – harbor an astonishing 55.8% of the world supply. All of these countries are in an enviable position to cash in on the dramatic rise in global energy prices and to extract from potential customers whatever political concessions they deem important.

The transfer of wealth alone is already mind-boggling.
. . .
Russia is now the world’s leading supplier of natural gas, the second largest supplier of oil and a major producer of coal and uranium. Though many of these assets were briefly privatized during the reign of Boris Yeltsin, President Vladimir Putin has brought most of them back under state control – in some cases by exceedingly questionable legal means.

  • A growing risk of conflict.

Will energy-deficit states launch campaigns to wrest the oil and gas reserves of surplus states from their control – the George W Bush administration’s war in Iraq might already be thought of as one such attempt or to eliminate competitors among their deficit-state rivals?

The high costs and risks of modern warfare are well known and there is a widespread perception that energy problems can best be solved through economic means, not military ones. Nevertheless, the major powers are employing military means in their efforts to gain advantage in the global struggle for energy, and no one should be deluded on the subject.
. . .
One conspicuous use of military means in the pursuit of energy is obviously the regular transfer of arms and military-support services by the major energy-importing states to their principal suppliers. Both the United States and China, for example, have stepped up their deliveries of arms and equipment to oil-producing states like Angola, Nigeria and Sudan in Africa and, in the Caspian Sea basin, Azerbaijan, Kazakhstan and Kyrgyzstan. The United States has placed particular emphasis on suppressing the armed insurgency in the vital Niger Delta region of Nigeria, where most of the country’s oil is produced; Beijing has emphasized arms aid to Sudan, where Chinese-led oil operations are threatened by insurgencies in both the South and Darfur.
. . .


In this new world order, energy will govern our lives in new ways and on a daily basis.
It will determine when, and for what purposes, we use our cars; how high (or low) we turn our thermostats; when, where, or even if, we travel; increasingly, what foods we eat (given that the price of producing and distributing many meats and vegetables is profoundly affected by the cost of oil or the allure of growing corn for ethanol); for some of us, where to live; for others, what businesses we engage in; for all of us, when and under what circumstances we go to war or avoid foreign entanglements that could end in war.

This leads to a final observation: the most pressing decision facing the next president and Congress may be how best to accelerate the transition from a fossil-fuel-based energy system to a system based on climate-friendly energy alternatives.

I recommend you read the entire article. This is the world we are living in. Voting, and how we vote in each and every election where we can vote is critical. These facts do not bode well for democracy anywhere.