Monthly Archives: May 2017

Conservative election manifesto signals the end of new nuclear power

All of a sudden the UK’s political parties want to have nothing to do with nuclear power.

This much is clear from the party manifestos – notably that of the Conservative Party, published yesterday.

OK, it does not announce an end to Britain’s massive 10GW nuclear power programme set out in the Cameron-Osborne years of government.

In fact, it does not even mention nuclear power. Instead it states that a future Tory government will remain sublimely indifferent to how our electricity is generated, so long as it’s reliable, cheap and low carbon:

“Above all, we believe that energy policy should be focused on outcomes rather than the means by which we reach our objectives. So, after we have left the European Union, we will form our energy policy based not on the way energy is generated but on the ends we desire – reliable and affordable energy, seizing the industrial opportunity that new technology presents and meeting our global commitments on climate change.”

Just compare that to the July 2015 statement of then energy secretary Amber Rudd to the House of Commons energy select committee, seeking to justify the astonishing cost of the Hinkley C nuclear power station to energy users, that: “We have to have secure base-load, so you should not be surprised that we are prepared to pay more for that in order to ensure nuclear is part of the mix. The requirement for nuclear is absolute.”

Or here’s the line from the 2015 manifesto, when nuclear power was, apparently, something to be proud of and trumpeted: “All parts of the UK will soon be helping to deliver secure, affordable and low-carbon energy, from the Hinkley Point nuclear power station … significant expansion in new nuclear and gas … signing a deal to build the first new nuclear plant in a generation …”

Because now, it’s all about keeping costs down, says the 2017 manifesto: “We want to make sure that the cost of energy in Britain is internationally competitive, both for businesses and households … Our ambition is that the UK should have the lowest energy costs in Europe, both for households and businesses. So as we upgrade our energy infrastructure, we will do it in an affordable way, consistent with that ambition.”

And one sure way not to deliver cheap energy to the UK is to build new nuclear power stations. if Hinkley C is ever built, UK energy users will be paying more than double the current wholesale power price, inflation adjusted, for 35 years from the time it opens, something that could cost the UK economy £50-100 billion.

Labour and the Libdems: a pocketful of mumbles

By contrast, Labour does give nuclear power a specific mention it is manifesto – just a rather small one that adds up to no real commitment to anything.

“The UK has the world’s oldest nuclear industry, and nuclear will continue to be part of the UK energy supply. We will support further nuclear projects and protect nuclear workers’ jobs and pensions. There are considerable opportunities for nuclear power and decommissioning both internationally and domestically.”

Let’s decipher. Yes, nuclear power will continue to be part of energy supply as we still have quite a few old nuclear power stations that we are not about to shut down.

What about “We will support further nuclear projects”? What kind of nuclear projects? How about decommissioning, nuclear waste management, production of medical isotopes … ? Do these projects include nuclear power? They’re not telling. Most likely (after all we know that Labour leader Jeremy Corbyn is firmly anti-nuclear) these are warm but empty words to placate powerful nuclear-supporting trades unions like the GMB and Unite.

And what kind of ‘support’? Speeches in the House of Commons? Or tens of billions of pounds of hard cash. It’s hard to say. Does this add up to a firm commitment to build a fleet of new nuclear power stations at massive public cost? Hardly.

The Libdem position is similarly weak, promising only that “We will … Accept that new nuclear power stations can play a role in electricity supply provided concerns about safety, disposal of waste and cost are adequately addressed, new technology is incorporated, and there is no public subsidy for new build.”

We know perfectly well that nuclear power is hugely expensive, intrinsically unsafe due to its potential for massive harm (look only to Fukushima), can only operate with enormous public subsidies, and that no one has yet figured out a way to keep nuclear wastes safely contained for tens of thousands of years, an informed interpretation of this statement might go: “Nuclear power? Not on your nelly!”

As for the Greens, they have yet to publish their manifesto but there can be no doubt that their long term opposition to nuclear power will hold.

UKIP has not yet published a manifesto, but in 2015 said it supported “a diverse energy market based on coal, nuclear, shale gas, conventional gas, oil, solar and hydro, as well as other renewables where these can be delivered at competitive prices.” Which if course nuclear cannot.

Meanwhile the SNP says it wants no new nuclear power stations in Scotland; and Plaid Cymu leader Leanne Wood is opposed to new nuclear power, but her executive supports Wylfa because of the jobs. Got that?

Why the turnaround?

It has surely become clear to politicians that nuclear power is in a death spiral, terminally afflicted by:

  • very high costs, at least double those of conventional generation, which can only be carried by governments, taxpayers and energy users at the expense of more deserving and productive investments;

  • apparently unconstructable reactor designs hit by massive cost overruns and delays in France, Finland and the USA;

  • the bankruptcy of the world’s biggest nuclear power contractor, the Toshiba-owned Westinghouse – lined up to build a massive new nuclear complex at Moorside in Cumbria with three AP1000 reactors – mainly as a result of these cost overruns and delays on AP1000 projects in the USA;

  • the parlous condition of the French parastatals EDF and Areva, which survive only thanks to the inexhaustible largesse of French taxpayers;

  • investor reluctance to have anything to do with new nuclear power stations unless returns are guaranteed in cast iron contracts at huge expense to taxpayers;

  • the continuing lack of a long term solution for nuclear waste storage / disposal;

  • the inflexibility of nuclear power stations, which means that they overproduce when electricity is in surplus, while being unable to keep up with demand when power is desperately needed;

  • the continuing precipitous decline in the cost of disruptive ‘new energy’ technologies such as solar, wind, including offshore wind, grid-scale batteries, power to gas, smart grid, set to continue and gather pace for many years to come.

So what’s the alternative? Given that onshore wind is already the cheapest new source of power generation, and offshore wind costs are falling rapidly (and are already far cheaper than new nuclear), wind power really should have a big role. So check out this statement from the Conservative manifesto:

“While we do not believe that more large-scale onshore wind power is right for England, we will maintain our position as a global leader in offshore wind and support the development of wind projects in the remote islands of Scotland, where they will directly benefit local communities.”

This commits a future Tory government to maintaining a strong pipeline of large offshore wind projects, while opening the door to medium and small scale onshore wind power in England, as well as to large scale wind on Scottish islands and elsewhere in the devolved nations. What it ultimately means is that wind power has a great future in the UK – in stark contrast to previous policy.

Just in case I’m sounding all enthusiastic about the Conservative manifesto, don’t get me wrong. It is the worst on environment, energy and climate of the three main parties, and contains big breaks for fossil fuels including fracking. It’s just a great deal better than we might have guessed a week ago.

And on nuclear power, they (notably the intelligent and pragmatic BEIS secretary Greg Clark) have clearly seen sense.

Libdems set the pace on green energy

And if in some dramatic switch of fortunes Labour wins the election, its manifesto also signals a big switch to renewables:

“To ensure: security of energy supply and ‘keep the lights on’; energy costs are affordable for consumers and businesses; we meet our climate change targets and transition to a low-carbon economy … We are committed to renewable energy projects, including tidal lagoons, which can help create manufacturing and energy jobs as well as contributing to climate change commitments.”

But best of all on renewables are the Libdems, who promise (inter alia) to (direct quotes):

  • Expand renewable energy, aiming to generate 60% of electricity from renewables by 2030, restoring government support for solar PV and onshore wind in appropriate locations (helping meet climate targets at least cost) and building more electricity interconnectors to underpin this higher reliance on renewables.

  • Support investment in cutting-edge technologies including energy storage, smart grid technology, hydrogen technologies, offshore wind, and tidal power (including giving the go-ahead for the Swansea Bay tidal lagoon), and investing heavily in research and development.

  • Pass a Zero-Carbon Britain Act to set new legally binding targets to reduce net greenhouse gas emissions by 80% by 2040 and to zero by 2050.

  • Set up a British Housing and Infrastructure Development Bank to mobilise investment into the low-carbon and sustainable infrastructure the UK needs to remain competitive.

Hinkley C – dead in the water?

There’s just one awkward remaining question: what of the Hinkley C nuclear power station in Somerset, given that contracts between the UK government and EDF to build the twin-unit EPR have already been signed.

Given: complications with Brexit; the specialist, skilled, experienced immigrant labour that would needed for EPR construction; the UK’s departure from the Euratom treaty; the decline in the value of EDF’s revenues with the weaker pound; continuing challenges with the Flamanville reactor and elsewhere with the EPR reactor design; and EDF’s crippling and under-budgetted financial obligations to decommission its nuclear power stations in France … it may well never happen.

Another factor is the new President Macron, who might reasonably prefer that EDF conserve its dwindling resources rather than blow them on a potentially ruinous nuclear project in the UK.

This line of thinking was confirmed this week by his appointment of prominent green activist Nicolas Hulot as the minister in charge of environment and energy – the same Hulot who last month told Liberation newspaper that “While elsewhere the energy transition accelerates, EDF gets closer to Areva, overinvests in costly nuclear projects like Hinkley Point, and does not invest enough in renewables.”

As Reuters reported, “investors expected a pro-nuclear energy policy from the new government. But the appointment of Hulot – France’s best-known environmental campaigner and a former television documentary maker – as ecology minister raised doubts in investors’ minds about the strength of that commitment.”

Not with a bang, nor even a whimper

It now looks increasingly as if the Hinkley C project may be quietly shelved, or even cancelled, with the agreement of both UK and French governments.

And beyond that the prospects for new nuclear power in the UK have never been gloomier. The only way new nuclear power stations will ever be built in the UK is with massive political and financial commitment from government. That commitment is clearly absent.

So yes, this finally looks like the end of the UK’s ‘nuclear renaissance’. Not with a bang, nor even with a whimper, but with a deep and profoundly meaningful silence. Not a moment too soon.

 


 

Oliver Tickell is contributing editor at The Ecologist.

Dr Ian Fairlie is an independent consultant on environmental radioactivity. He formerly was a senior scientist in the Civil Service and worked for the TUC as a researcher between 1975 and 1990.

 

Sustainable Social Housing… How an eco cabin built entirely from waste shows it can be done

Britain is facing a housing crisis that has led to a rise of both people sleeping on the streets and vulnerable families left on waiting lists for social housing to be available. Since the Recession, house prices in some regions have now recovered and, despite the speculation and uncertainty of Brexit negotiations, are on the rise along with rent.

Add into the mix of rising house prices and rents, an increase in the cost of building materials and other new build costs since 2010, plus a rise in the cost of utility bills, and it’s no wonder so many people are seeking alternative housing.

A Scottish recycling expert has built an eco home using resources that cost nothing and would have ended up in a landfill or in an incinerator. He has not stepped foot into a builder’s merchant for materials. Designed and built in the style of a traditional Scottish cabin, it has both running water and electricity without any utility bills. It has been zero-rated by the local council and so he does not pay any council tax.

Angus Carnie (55) built his eco cabin in his native Carnoustie, Dundee, using materials that were free and can live there for free.

While the interior is pleasantly decorated, the real interest is in the walls. Primarily using waste polymers, the walls are made up of ‘logs’ of shredded plastics that have been compressed together. The foundations are built with old plastic hospital bed sheets, which Angus converted into solid blocks. The cabin is insulated with photocopier toner cartridges, a plastic which is currently unrecyclable, shredded into a fine fibre after he’s used the ink to paint the cabin.

Interestingly enough, Carnie has created a type of plasterboard out of waste plastic, which is lighter, waterproof and is significantly more durable than conventional  plasterboards.

“The whole theme of the house is that I wanted it to be that it used to be something else,” He said as he showed me the floorboards that were from an old church originally and is now part of his kitchen.

“From a material point of view, what I was particularly keen to use was materials that were either going to end up in a landfill or have to be disposed of in an expensive manner.”

Carnie hopes that the thinking and ideas that went into his cabin can be used to help with social housing and combat homelessness in Britain.

The cabin cost only £40,000 to build – £25,000 paid for the land to build on and Angus spent another £15,000 on processing plastic and on the services of an electrician. He did not spend a penny for the raw materials for his one-bedroom property. And what his project has shown is that if a commercial company was to take up his idea and begin producing building materials or entire homes using waste plastic, the overall cost could be significantly cheaper and turnover significantly faster.

“Basically, what I wanted to achieve was to create a social home, because it’s very difficult now in certain parts of the country to get on the housing ladder,” He said. “I felt that, with skillsets that I have of being able to work out what to do with different waste streams, I could, rather than look at individual products, I could build a whole house.”

The use of waste plastic is an interesting choice as it is a seemingly endless resource. It is a potential building material that people and businesses pay to have taken away. Something Carnie hopes the construction industry will embrace more.

Another appealing aspect of his eco cabin is that it is incredibly cheap to live in. The one bedroom property collects rainwater and uses both solar and wind power to provide electricity.

“The Council tax people have visited and zero rated the property because I have no gas, no electricity bills, and no water bills, because the water comes, effectively, from rain.” He says. “They were very impressed.”

“I wanted it to be a very, very cheap house to run, because I think where quite a lot of poverty starts is that houses are badly insulated and they’re expensive to run for heating and lighting. I wanted to erode that cost. One part of that is insulation, and the other aspect was to create your own electricity.”

The rise of utility bills across the big six providers is certainly going to put the squeeze on vulnerable households and making Carnie’s sustainable cabin prototype an attractive idea.

Much like the Oxfam’s ‘Give a man a Fish,’ campaign, this could be an opportunity to provide support to people without continuingly subsidising their utility bills through fuel grants and schemes. Not that I have anything against schemes such as Winter Fuel Payment but this could be a sustainable solution. By providing the right tools and resources, it could mean people stay out of debt and off the street.

While Carnie’s ideas are fascinating and present a range of opportunities, he is not the first to turn to sustainability as a solution to affordable housing.

Oscar Mendez, a Colombian Architect, has been recycling plastics into building blocks and creating shelters for families displaced by violence and housing in Bogota. He has formed a company that specialises in producing these building blocks for construction and has attracted significant funding. Though his venture is still in its infancy, creating a handful of properties, the potential has been recognised and the homes he is producing are cheaper to build compared to traditional housing in Colombia.

In the UK, a hospital in Newport, Wales is trialling the use of a machine by TCG which recycles their used plastic hospital bed sheets into sterile blocks. Since beginning this trial, the prototype machine has saved the hospital £864 per month by reducing waste to a landfill. The sales of these blocks have made this machine financially viable. There is further potential in the near future with the blocks being used as 3D printing filament or used to generate electricity in a biomass plant. The earning potential of a scheme like this could benefit a number of hospitals and trusts.

Last year was also a good year for renewable energy. There had only been a small increase in renewable capacity to 33.4 GW (0.7% or 0.2 GW) in 2016. However, 5.8 GW of capacity that was installed qualified for the GB Fit in Tariff Scheme (FiT). This means there’s been a 30% increase of people potentially generating revenue off their renewable energy plant and reducing their own utility bills.

While these are positive examples, this is just a drop of water in an ocean. With over 1.6 million people on waiting lists for social homes in England, for these ideas to greatly impact social housing and homelessness in the UK, we need a large shift in thinking and how we view waste.

 

 

 

 

Only Conservatives and UKIP back fracking in GE2017

Theresa May today launched the Conservative party manifesto, eager to differentiate her party from the Liberal Democrats that are making a land-grab for the anti-Brexit centre, and a Labour party swinging leftwards and away (or possibly slightly towards) Europe.

But among the Conservatives’ vague anti-immigration promises and plans to tie social care to the value of an individual’s estate was a stark fact – the Tories are now the only major party in the UK that does not oppose fracking.

Both Labour and the Liberal Democrats promised to ban or oppose the practice in this general election campaign.

Labour’s manifesto promised an outright ban, and said the party was against fracking because “it would lock us into an energy infrastructure based on fossil fuels, long after the point in 2030 when the Committee on Climate Change says gas in the UK must sharply decline.”

The Liberal Democrats’ manifesto said the party opposes fracking “because of its adverse impact on climate change, the energy mix, and the local environment.”

Defiant Tories hold to the fracking faith

But the Conservatives maintained that there is a role for the fledgling industry. The manifesto said: “The discovery of shale gas in the United States has been a revolution.”

“We will therefore develop the shale industry in Britain. We will only be able to do so if we maintain public confidence in the process, if we uphold our rigorous environmental protections, and if we ensure the proceeds of the wealth generated by shale energy are shared with the communities affected.”

It is a stark departure from the last general election, just over two years ago, when all three parties supported fracking so long as it was sufficiently regulated. During that election only the Green party promised an outright ban, as it has done so again this time round.

The Tories also reiterated their commitment to maximising recovery of North Sea oil and gas reserves, as well as making the UK a leader in decommissioning services once the wells are spent. The manifesto said:

“We will continue to support the industry and build on the unprecedented support already provided to the oil and gas sector. While there are very significant reserves still in the North Sea, it is expected to be the first major oil and gas basin in the world to decommission fully, and we will take advantage of that to support the development of a world-leading decommissioning industry.”

And to expedite the fracking revolution, the Conservative manifesto promises a new special purpose regulator for the industry, and a ‘Shale Wealth Fund’ to benefit ‘host’ communities:

“We will set up a new Shale Environmental Regulator, which will assume the relevant functions of the Health and Safety Executive, the Environment Agency and the Department for Business, Energy and Industrial Strategy. This will provide clear governance and accountability, become a source of expertise, and allow decisions to be made fairly but swiftly.

“Finally, we will change the proposed Shale Wealth Fund so a greater percentage of the tax revenues from shale gas directly benefit the communities that host the extraction sites. Where communities decide that it is right for them, we will allow payments to be made directly to local people themselves. A significant share of the remaining tax revenues will be invested for the benefit of the country at large.”

Climate change promises

Like Labour and the Liberal Democrats, the Conservative manifesto also pledged to continue to take action on climate change.

Labour’s manifesto promised to put the UK “back on track” to meeting its climate goals. It listed climate change among other major challenges any government must address such as global terrorism and the threat of nuclear war.

The Liberal Democrats likewise said the government has “a duty to future generations to protect our environment and tackle climate change”. It promised to fight a hard Brexit, and maintain the EU’s “high standards” when it came to regulations that aim to tackle climate change.

The Conservatives pointed to the Climate Change Act and the ratification of the Paris Agreement on their watch as proof of their commitment. The manifesto states:

“The United Kingdom will lead the world in environmental protection. As Conservatives, we are committed to leaving the environment in better condition than we inherited it. That is why we will continue to take a lead in global action against climate change, as the government demonstrated by ratifying the Paris Agreement. We were the first country to introduce a Climate Change Act, which Conservatives helped to frame, and we are halfway towards meeting our 2050 goal of reducing emissions by eighty per cent from 1990 levels.”

At the opposite end of this spectrum, as usual, is UKIP. The party also launched its energy manifesto today (though it does not appear on UKIP’s website), and offered a promise to repeal the Climate Change Act, and cut support for wind and solar energy:

 

. “remove VAT from domestic fuel, repeal Climate Change Act, cut subsidies to intermittent energy generation”

 


 

Mat Hope is Deputy Editor at DeSmog.uk. He tweets at @matjhope.

This article was originally published here on DeSmog.uk. Some additional reporting by The Ecologist.

 

Hummus and mindfulness: skills, resilience and relaxation beyond consumerism

We all have to consume; it’s a necessary reality of existence. However, in the ‘consumer society’ the most radical thing you can do is not to consume ‘as directed’ – by finding alternative options that meets your needs while enacting a set of principles in opposition to that overbearing and exploitative economic paradigm.

This principle was self-evident during one of Britain’s darkest consumer crises of late … the hummus shortage.

Honestly, I had to do a double-take. Given how simple it is to make hummus (see recipe below) how on earth could people get so worked up over a shortage of what, I believe, it a pretty sub-standard consumer product anyway.

That, in reality, is the whole point of The Consumer Society.

By externalizing the creation of a product, the consumer cedes both economic and creative power to those who would control the market for their own gain.

Modern economics is based on ‘dependency’

The Harried Leisure Class, by Columbia / Yale University social-economist Steffan Linder, outlined the greatest challenge in modern economics – making people’s ‘spare’ time economically rewarding to business.

Writing in 1970, when people were told that new technology would create a life of ever-increasing leisure (have you heard that again recently too?), Linder’s book examined the contradiction between making people consume when they may not be working as much, and therefore not earning as much money to buy goods.

Creating a dependency on products is a necessary step to make consumption continue. Dependency provides the self-justification for the inevitable over-extension of personal effort, and finance, that continued consumption requires. On food, he outlined the state which existed in the USA in the late 1960s:

“We have no time to cook food. Actual cooking is a time-consuming process, and has been abandoned in favour of thawing and heating, which is not an unqualified advance. We have made the transition from appetizing food to acceptable nutrition.”

Does that sound familiar? Contemporary trends are not new, they just apply to far more people across the planet than they used to.

The ‘cult’ of consumption

The era that Linder described was engineered, deliberately, a decade earlier during the 1950s. Following in the wake of the Washington Consensus, creating economic dependency was a deliberate act by those seeking to create what we now call ‘corporate power’.

One of the most revealing reflections on this process was by written Victor Lebow, published in the Journal of Retailing in Spring 1955:

“Our enormously productive economy demands that we make consumption our way of life, that we convert the buying and use of goods into rituals, that we seek our spiritual satisfactions, our ego satisfactions, in consumption.”

“Rituals”? “Spiritual satisfaction”?

What he’s describing here are the roots of the modern practice of branding, perceived obsolescence, and the warped identity politics which flow from that – transforming shopping into a quasi-religious frenzy.

The apotheosis of Lebow’s idea is embodied in today’s ironic acceptance of our dependency on consumption, whilst at the same time our seeming inability to change that situation.

Curiously, coming right up-to-date, Chuck Palahniuk’s phrase that, “things you used to own, now they own you”, is now set to become reality with the development of the ‘Internet of Things‘.

Hence why non-participation is revolutionary

Which brings me back to the hummus crisis …

The myth at the heart of consumerism is that it is economically and qualitatively better to buy a new product than to repair something, or to create it yourself.

While for most people that might be true for the most complex goods, such as a computer, that’s not true of hummus – and many other things which make up large parts of our everyday life. Food is at the top of that list of ‘easily do-able’ things – not just preparing it, but growing it too.

Gandhi, reflecting the ideas of ‘modern’ simplicity and frugality he took from Thoreau and Tolstoy, entreated us to “be the change you want to see in the world.”

In fact, as Thoreau and Tolstoy outline, to make change in ourselves we need to go further than simply ‘being’, and transition into ‘doing’, by working outside of domineering economic structures.

Most importantly, you should find ways to take enjoyment from that proces – hijacking the momentary reciprocity embodied in acts of consumption by taking pleasure in your own daily acts of creation.

Active’ rather than ‘passive’ mindfulness

One recent movement attempting to find solace in this sea of stress is ‘mindfulness’ – the idea that you should be aware of and live within the experience of the moment.

Mindfulness is often portrayed as a passive, meditative act. But in my experience repetitive or ordered acts like cooking food are quintessentially meditative. More than that, the act of creation is a literal expression of our self-awareness … “I do, therefore I am!”

The case of food is also deeply symbolic.

It embodies a long human tradition surrounding the concept of sustenance, and of connection to those who will partake of the food. This is why food preparation was historically viewed as a quasi-spiritual ‘prayer’, or act of devotion, often surrounded by ritual.

Every act of creating food from raw, natural ingredients – in contrast to Linder’s “thawing and heating” – is a spiritual process beyond that which ordinary consumerism can achieve. That is why the modern pressures of life, by denying us that meditative ‘recreation’, demeans our human capacities.

Involuntary simplicity’

Another popular movement is ‘voluntary simplicity‘ – attempting to respond to the crisis of consumption by consuming less. That’s ultimately my own response.

Lately though, given current economic realities, I’ve started to talk about ‘involuntary simplicity’. To express it in ecological terms, the current trend of rising inequality, and economic austerity, is ‘forcing’ simpler, less-intense patterns of consumption on the major part of the population.

People are protesting to reverse austerity. Likewise, the recent votes for Trump or Brexit can be seen as a protectionist call to preserve the heydays of the consuming lifestyle engineered in the 1950s.

Is this valid in ecological terms – given the pressing ecological limits to consumption? Or is it simply an expression of the material dependency of the addicted consumer? In my view, we need to embrace the ecological dimension that austerity creates; a ‘societal detox’ from the addictive lifestyles created by consumerism.

For what is economic austerity in the developed world if not an unplanned and chaotic form of the ‘contraction and convergence’ process – which many talked of in the 1990s as a solution to many of the world’s ecological ills?

If we could provide an ‘ecologically civilized’ alternative to economic austerity then we’d be addressing many of the globe’s current environmental and social ills.

Making hummus is a symbolic act towards a greater change

I love making food. It’s deep; primal. It speaks not only to my own need for simple, non-processed food, but also to my need to create. Bread, pies, cakes, nut burgers, soya milk and more besides.

The point here is not simply to make hummus. The point – in consciously reversing the process described by Linder or Lebow – is that by extricating ourselves from our economic dependency we simultaneously develop the skills of resiliency.

The act of being involved in preparing your food can, if you live that as a personally creative process, become a profound and basic statement of your greater world view.

How far you go down that route is up to you. Even if we don’t do it all the time, by developing these skills we learn the capacity to ‘do without’ and create our own alternatives. And as mainstream economics fails, enforcing ‘involuntary’ simplicity’ in an desperate act of self-preservation, such skills can be a vital survival tool for us all.

Recipe: ‘Own-made super-strength hummus’

This is my recipe to make five kilos of hummus. I make a five kilo batches and freezing them in small containers as it is far more efficient in terms of time and resource consumption.

You can scale the figures for whatever quantity you require (e.g. to make 1 kilo, divide everything by 5). Note also that this recipe does not use ‘power tools’.

In my view the physical exercise, the smells and textures of the process are an important part of the ‘producer’, as opposed to ‘consumer’, experience.

If you want to make hummus like that in the shops you will need to add another litre or so of water, and use an electric liquidizer to get the same texture. Likewise, use about a quarter of the garlic and about half the amount of tahini – although that will significantly reduce the nutritional quality.

Recipe (main ingredients in bold)

  1. Take around 1.25 kilos of dried chickpeas and soak them for 12 to 15 hours (unless you can grow them, dried pulses are less impacting on the environment than canned). Add 10 grams/1 tablespoon of coarse salt, dissolved in water, and then add more water to cover the chickpeas with at least 50% of their depth in the container. This is because the chickpeas will swell, almost doubling in size, and doubling in weight – to roughly 2.4 kilos.

  2. Drain and refill the water in the pan. Make sure the swelled chickpeas are well covered in water, add another 10 grams of salt, bring to the boil and then simmer until soft enough to mash. This might take 1½ to 2 hours in an ordinary large saucepan. It is more efficient to use a pressure cooker. At 12 pounds pressure they cook in about half the time (roughly 1 hour) using about the same amount of heat – hence why pressure cookers are more energy efficient.

If you can chop garlic and squash the lemons quickly enough you can do the next two steps while the chickpeas boil – otherwise you’ll need to prepare them before.

  1. Peel, squash and chop around 6 large bulbs/400 to 450 grams of fresh garlic. It’s important to crush the garlic first before chopping in order to extract as much of the oil as possible.

  2. Squash and sieve the pips from 10 to 12 lemons to produce around half a litre of lemon juice.

  3. When the chickpeas have boiled drain the water – then rinse with cold water and drain again. This is important not only because it stops you scaling yourself on boiling hot chickpeas, it also stops the heat driving off the nutritious essential oils from the crushed garlic and lemon juice. Then roughly mash the chickpeas, not to purée them, to ensure most of them have burst.

  4. Add the garlic, lemon juice, and 150 millilitres of olive oil – then give everything a good mashing to mix everything together.

  5. Add 1 kilo of tahini. This takes some effort as the oily tahini doesn’t mix easily, but this can be helped by slowing adding around half a litre of warm water at this point. Add more to create the consistency of hummus you desire. Keep mashing until you reach either the ‘crunchy’ (with lumps) or ‘smooth’ texture you want.

  6. Spoon the hummus into small containers. To keep for more than a week or so you’ll need to freeze them. Allow the containers to air-cool until they reach room temperature before putting them in the fridge; then allow them to cool for a few hours/overnight in the fridge before putting them in the freezer. This avoids using excess ‘mechanical’ energy to cool the hummus.

  7. Last, and most importantly, eat the hummus. To defrost a container just take out out of the freezer and leave for a couple of hours before returning it to the fridge. Note, if you follow my ‘super strength’ recipe, while all those garlic oils might make you very healthy you might also find that you’re eating alone☺

Buying the ingredients from superstores the cost is around £3.60/kilo – in contrast to the roughly £5/kilo from shop-bought hummus. However, due to the much higher quantities of garlic and tahini, this recipe creates a qualitatively richer, tastier and more nutritious product.

 


 

Paul Mobbs is an independent environmental researcher and freelance author. He is also the creator of the Free Range Activism Website, FRAW

A fully referenced version of this article is available on FRAW.

The video accompanying this article, entitled ‘Hummus and Mindfulness’, can also be found on the ‘ramblinactivist’ YouTube channel.

 

WITNESS: Drawn to the Frozen South

DRAWN TO THE FROZEN SOUTH

57˚13.10’S

As I sketch on the deck of the ship, I am struggling to stand upright. 300 miles from land, the rough dark blue seas of the two-mile-deep Drake Passage are rising and sinking to their notoriety. The strong wind is cold and after two days of seeing a horizon interrupted only by oversized breaking waves, it feels like we are on our own. But we’re not. The biggest bird in the world is effortlessly following our ship. The unflappable Albatross rarely beats its enormous but elegant wings, making our progress to the Antarctic seem laboured and cumbersome.

This lone, feathered gatekeeper seems to be welcoming our vessel to a special place. We have just crossed the Antarctic Convergence, an invisible border that marks the undersea battle of the relatively warm Atlantic waters with the near-freezing Southern Ocean. The temperature has quickly plummeted as we pierce the cold air bubble that surrounds, and protects, the Antarctic continent.

Unaffected by the cold or the gale, the graceful juvenile Wandering Albatross is inquisitively tracking our progress. Its 10ft wingspan is the longest in the world yet, as our ship climbs the 25ft swell, the bird skims the surface by inches using its knowledge of the rhythm of the surging white crests to avoid touching the sea. Its amazing ability to survive in this isolated, unforgiving and yet vulnerable environment is remarkable.

Vulnerability is a constant theme of my paintings, many of which feature the sadly shrinking Arctic icecap, so this chance to see its bigger more solid twin at the other end of the world is too good an opportunity to miss. I’ve suppressed my guilt of a rarely-taken flight to get to Argentina and am now very comfortably on board the luxurious 10,000 tonne ship Le Lyrial for the sailing to the white continent. This is Antarctic expedition lite.

One hundred years ago Sir Earnest Shackleton incredibly sailed a 22ft heavy wooden lifeboat 800 miles through these same massive seas to reach the safety of South Georgia. On the expansive deck of our rhythmically heaving ship I’m frozen, even with five protective layers on. I try to draw the albatross’ movements with one one hand briefly exposed. The instant cold on my ungloved fingers makes me struggle to understand how Shackleton and his five fellow polar explorers survived these angry and notoriously rough waters.

How any life survives in this remote, icy land is the constant question of the trip. After the long sailing we have our first views of the Antarctic peninsula and I am awe-struck by the size and apparent strength of this harsh region. Peak after peak of mile-high mountains cloaked in glaciers hundreds of feet thick rise out of the iceberg-dotted sea. The grandeur and scale of the whole land has a feeling of permanence. And yet it is so fragile. Every animal exists here on a knife edge, each one evolved to live on its own particularly slim spectrum of prey.

Counter-intuitively, wildlife appears all around us from the sea. Minke whales break the now mirror calm waters releasing a stream of warm breath from their blowholes. Blubbery Weddel seals snoozing on icebergs barely raise their heads as we drift slowly past them. That is another recurring theme of this journey: none of the wildlife knows to be afraid of us. Humans had no contact with Antarctica until around a century ago, so we visitors haven’t been disturbing their peace for long.

ANTARCTIC LANDFALL

64˚53.40’S

Our first steps on Antarctic land feel like a hard won privilege. Not quite as hard won as the polar explorers. They would be shocked to see us in our layers of brightly-coloured high tech clothing being helped off of the Zodiac inflatable boats that gently deliver us to the stoney beach. I’ve been lucky to have seen many remote beaches around the world and virtually everywhere has had plastic sickeningly mixed in the sand. Here in Antarctica it looks as it should, pristine.

Waiting for us on land, the ships naturalists enthusiastically brief small groups of us on the wildlife all around. One hundred people are allowed ashore at one time to try and reduce the human disturbance that we inevitably bring. Again, the fact of being in a place we don’t belong feels like an enormous honour.

Cuverville Island sits in a bay surrounded by mountainous turquoise-tinged glaciers edging, imperceptibly towards the sea. Low grey clouds cloak the encircling peaks and, once we have climbed up from our landing beach, the eerie silence is broken only by the calls of hungry, Gentoo penguin chicks. We have been instructed to keep 15ft away from the moulting birds, but they are having none of that as they strut towards us, inquisitively pecking at our boots.

The three-month old chicks huddle together waiting for their parents to return with food. The distance from the water’s edge of the breeding colonies protects the young from the seals that prey on them, but means the food-laden adults have a daily icy climb. It has taken me ten minutes of stumbling and slipping on steeply sloping ice to reach the pungent, rocky roost. As the returning adult nears its youngsters a comical penguin-suited chase begins. For the twin chicks it’s a more serious affair. As the parent waddles away, its young race after it. The screaming winner gets more regurgitated food while the losing sibling has less, becomes weaker and can struggle to survive.

Last year this precarious food balance was tipped in the wrong direction. More than a third of penguin chicks on the islands died of starvation. In the same area trawlers were ‘suction’ harvesting krill, a tiny crustacean, for our increasing demand for omega 3 food supplements and fish farm food. Scientists believe that with less krill in the area, less food was available to the birds. Fewer surviving penguins means less prey for seals and orca. Many whales and seabirds also live on krill, which is why it is known as a cornerstone food source. When the fishing companies were alerted to the effects of their human-induced krill famine, even though they were fishing within their quotas, they left the area to fish elsewhere…

EXPLODING ICE

64˚53.40’S

The silence is absolute when the strong katabatic winds that descend from the Antarctic ice sheet drop. The lack of any sound, be it birdsong or distant overflying aircraft is so rare in our modern world. This quiet makes the explosive noise of tonnes of ice suddenly moving seem even louder. Multi-coloured glaciers, twenty stories high, infused with blues and algal reds, yellows and greens, reach the end of their journeys to the sea face. They have taken centuries of slow downhill sliding from the mountaintops to reach this point. As they carve into the sea the compressed energy suddenly released sounds like a man-made explosion.

In inflatable boats we keep our distance from the newly-born icebergs and instead visit a group of rowdy young fur seals that are jostling on a stoney beach. The juvenile males band together while they are moulting before they return to their breeding grounds 1,000 miles away. In the 19th century, the seals were hunted for their pelts to near extinction, but now numbers have increased. This success has meant some countries including the UK calling for a reduction in their CITES protection.

Up until 1966 we also slaughtered Humpback whales to the brink of annihilation. Thanks to an agreed moratorium they too are recovering. In Paradise Bay a group that have been surrounding our Zodiac put on a show. In the setting sun the white underside of their elegantly flicked flukes shimmer in the reflected orange light as they dive below the surface. As if this treat isn’t enough, one 40 tonne whale breaches, launching itself clear of the water 35 times. Scientists still don’t know why humpbacks do this. But to see an animal that has a body built for slow ponderous movement, expending so much energy in what looks like just splashing about, is astonishing.

ICEBOUND

65˚13.30’S

Snow and strong winds the next day don’t put us off another Zodiac expedition. We’re in the Lemaire Channel, next to the Antarctic continent. Because the icebergs here have calved off of the thicker mainland glaciers, they are even bigger than the football pitch sized ones we have already seen. Light reacts with the denser more compressed ice creating incredibly vivid blue colours that are highlighted by their astonishingly massive size.

As our skipper tries to zig-zag our 10-man inflatable boat through chunks of freezing pack ice our progress gets worryingly slower and slower. Even in thick parkas and layers of clothing the wind chill is living up to its name. Our snow and ice-covered 22-year old  guide and captain doesn’t seem too bothered. She has lived her whole life on boats in Antarctic waters, growing up on sailing yachts. At one stage we become icebound and have to back out and retrace our rapidly freezing route. I can’t help thinking of the polar explorers in wooden boats tackling the encroaching and capturing ice without a powerful petrol engine. The hot chocolate never tasted so good when we make it back onboard the ship.

KILLER FINALE

64˚44.10’S

On the last day of our Antarctic trip as Le Lyrial weaves past ice-coated islands on our way northwards home we have a final treat. One of the guides spots a thirty-strong pod of Orca. I have become used to seeing so much wildlife in these few days that the humpbacks, seals and penguins mingled in with the the killer whales barely register. The varying sized dorsal fins of orca youngsters, females and the odd towering male fin pierce the calm sea. As they surface to breath, it’s amazing to see subtle greys and yellows as well as their trademark black and white colourings. Eight-feet long seals are dwarfed as they swim next to the pod. The orcas size and obvious power make me glad we’re aboard the ship, rather than on an inflatable.

To see this closely-knit extended family group swimming in its natural surroundings is inspirational. Its sad and shameful that 61 of these intelligent creatures are still held captive in pitifully small tanks around the world for our entertainment.

Leaving the orcas, we journey into the deeper ocean of the Drake Passage heading to our final destination. As the wave size increases, I’m again in admiration of the early explorers who discovered these seas and lands. In 1578 Francis Drake sailed these same vast stormy waters in a 100ft-long ship. Cruising home on a 500ft vessel doesn’t stop the feeling of insignificance wash over me. The trip has made me appreciate that after having the privilege of seeing Earth’s last isolated wilderness, I believe it needs more protection from fishing, oil exploration and, hypocritically I know, tourism.

A lone albatross, our Antarctic gatekeeper, escorts us north to Argentina but leaves us before we make land, saying a final swooping goodbye before it returns to the frozen South.

WITNESS is our new blog series which invites our contributors to write about social or environmental issues currently on their radar

This Author

Gary Cook is a conservation artist and Arts Editor of the Ecologist. He travelled as a guest of Le Lyrial Antarctic cruises: https://en.ponant.com/destinations/antarctica

For more on his work or to contact him, see below:

For more on his work or to contact him see below.

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Online: cookthepainter.com

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Rewilding America – The People & The Land

It’s time for us as a people to come together, to form an understanding about our natural environment, and our connection to it. If we are to survive long into this century and beyond, our society will have to learn to re-indigenize itself.

This will be a painful process for those dependent on creature comforts – on the electrical grid’s continuous power supply, on the streams of TV, Netflix, even the Internet itself, on factory-made pharmaceuticals, etc.

It will be difficult too for those whose illusions are about to be shattered, for those who thought they could live for so long and have it so good at the expense of others and to the detriment of their natural, wild surroundings.

We aren’t going anywhere. There will be no moon and Mars colonies to flee to. Isn’t it suspicious, though, how little talk there is about the parallels between the past colonialists of North America and the sci-fi dream of future colonies in space? Any potential future space colony wouldn’t be a glitzy affair: it would be similar to past and present immigrants and refugees streaming across continents, trying to escape death, privation, despair.

In short, the dream of human habitation of the solar system exists because of the utter destruction of landscapes and the indecency of human societies in many parts of our planet.

Imagine if we actually decided to collectively care for our own world instead of having daydreams and wasting billions on rockets and gadgets to propel us towards the “final frontier”.

Doesn’t that sound nice?

Luckily for us, the resilience of our planet towards habitat degradation is very, very strong. That is why a policy of rewilding must be introduced into mainstream thinking and politics.

Coined by David Foreman, rewilding refers to conservation methods that strengthen and maintain wildlife corridors and large-scale wilderness areas, with an emphasis placed on carnivores and keystone species which act as linchpins for ecosystem stability. Rewilding leads to increased connectedness across previously fragmented habitat due to roads, railways, urban sprawl, etc.

In the Americas, please consider educating yourself and others about these issues, and donating to a few of the fine organizations promoting wildlife corridors, such as: the Yellowstone to Yukon Initiative, the Paseo del Jaguar program led by Panthera, and the American Prairie Reserve.

Strengthening our ecosystems will provide a higher quality of life for future generations, as well as your children and grandchildren. Now that’s a return on investment.

Forget about yourself, your fragile ego, and your “standards of living”, for a moment. Western capitalism and colonialism has been degrading habitats for centuries, with benefits mostly accruing to white, older men. Only by giving back to the land, and in many cases, non-intervening and letting our soils and waterways heal on their own, will allow for a more equal distribution of wealth. It is natural resources, not money, which are the real inheritance we will leave behind to our youth.

The distribution of the “common-wealth”, by the way, used to be far more equitable hundreds of years ago, when land was freely available for hunting, fishing, foraging, and farming. Yes, there is less abject poverty in Europe and the US today compared to centuries ago, but it has come at a steep cost: there is no self-reliance, no collectively and culturally stored traditions of farming, crafts, weaving, pottery, home-building.

Corporations have swallowed all this, citing the “need” for specialized divisions of labor. Self-sufficiency and homesteading are looked upon with scorn, and we are told to buy everything we could ever need (and desire), instead of co-producing tools, clothes, food, and more.

Sharing of community resources needs to be re-instilled in the populace. The average garage, shed, or extra closet of today’s Westerner is filled with useless crap used maybe a few times a year, all purchased from a few companies. Recycling usable equipment and renting for small fees throughout the communities would significantly decrease consumption and foster closer neighborhood ties.

Today, the legal webs and labyrinths of “property laws” and low-wage work have imprisoned the average person. So has the spread of capitalism and unequal distribution of money, division of labor, separation of classes. The lives of masses of working people – the precariat – are just as unstable and misery-inducing as they were centuries ago, when Frederick Douglas said: “Experience demonstrates that there may be a slavery of wages only a little less galling and rushing in its effects than chattel slavery, and that this slavery of wages must go down with the other.”

This all underscores the need for a rewilding of the American people, not simply expanding our National Forests and wildlife refuges. It calls for a transformation in consciousness, to promote understanding of different cultures, openness towards change, and advocating for compassion and peace.

We can begin by starting to support a 15 dollar wage, to fight for climate science funding, to promote renewable energy. Yet there needs to be an understanding that those actions, while a good start, are simply a few first baby-steps towards re-orienting our culture.

Ultimately, the longing for spiritual rejuvenation and community empowerment will break through the cage of modernity – if we are not first destroyed by ecological devastation and/or economic collapse.

Longing, in all actuality, is too mild a term; actually, there is an intense craving for unique and authentic notions of identity, for belonging to a caring culture, for sharing and cultural blending. There is also, to an extent, evolutionary reasons and epigenetic possibilities for the deep desires, for instance, to want to sing and dance around a fire, to go on long walks to calm the mind, to talk to plants and animals, to feel the Earth’s joys and pains, to partake of psychedelic plants. It’s what our species has done for millennia, and no freeways, high-rises, fluorescent-lit malls, or gated communities can possibly make up for these urges.

Inner calmness and contentedness, feeling joy at other’s successes, altruistic actions of bravery, spontaneity, the creative act, and transpersonal experiences all teach us that our egos are illusions.

The drive of the ego is the drive of civilization, with all its life-denying baggage. It is this ego-based desire to dominate; to harness and pillage nature, which expands outwards to include all lifeforms, including even our close loved ones. The judgments and pain inflicted on others are projections of our own, deep inner hurting. The ego shifts the blame, projecting, always outwards onto others, always disguising and rationalizing its selfish deeds. 

Indigenous life is not without problems, but it recognizes and integrates the shadow-side of ourselves: there was no need for modern psychology until modern, Western man ramped up the process of destroying the world, all in order to fill the gaping void within the soul.

Thus, rewilding our psyches will mean dissolving the ego, recognizing it as a small part of the mind, occasionally useful in survival-enhancing or problem solving situations, but not as an absolute master of our sense of self. In short, it must be acknowledged that there are many aspects to individual minds, spectrums of ways of thinking, just as specific brain-waves exist, and differing states of sleep and dreaming.

Shrinking the ego will re-establish our commitment to protecting the Earth. As creator and protector of life, our planet, along with crops, animals, mountains and rivers, all have been venerated and deified across history. Thus, the sacredness of life and its continuity can be seen for the miracle it truly is.

New spiritual and religious groups will be founded, with cross-fertilization and syncretism causing an explosion of kaleidoscopic cultures. Shrinking petty individual desires and grievances enlarges our view of nature: it allows for free living and amicable relations, promoting an idea of an Unconquerable World which can triumph over the capitalist-dominated, chaotic, absolutist, totalitarian impulses of modern life.

This has serious implications. What cannot be used, i.e. extra physical products, food, and extra income must be given away to less fortunate countries. Open-source medicine and technology will have to be distributed to developing nations to stave off the worst symptoms of global warming and habitat degradation.

In the wealthy West, the rich should look to the example of the Indigenous, where in some tribes the chieftains distributed their personal wealth among their tribe, often to be rewarded in kind at a later ceremonial/seasonal time of the year.

Companies that produce weapons or various useless waste will be forced to shut down. Education will be reoriented to focus on the potentialities of each individual student, not as a one-size-fits-all indoctrination mill, churning out damaged, submissive, domesticated youth.

Green constitutions will have to be drafted to provide regulations to protect humans and wildlife from unnecessary pollution and production. It’s not just the West that will lead: the Chinese must realize, and be planning for, the eventuality that the demand for crappy plastic goods and gadgetry at big-box stores is going to decline, worldwide, in the coming decades.

A new international order based on the UN, or otherwise, will be needed to uphold climate change commitments, speedily develop renewable energy tech, sustainable agriculture plans, and distribution of resources. Basically, this requires a shift from an anthropocentric outlook to an ecocentric outlook.

This will require a global awakening, and a moral/spiritual transformation of consciousness. It is the only way for our societies to move forward.

Adaptability and having a broad range of skills and a wider knowledge base will be preferred over the narrow, technological elitism we see today in the corporate world and reflected in culture and the media.

Ultimately, rewilding ourselves means learning how to live free, i.e., unlearning what our consumer-based culture has brainwashed us into believing.

I don’t intend to shy away from the hard political questions of what the world and the US could look like in the near future, if the above steps are taken. Most likely, the modern nation-state will perish, America included. Our national experiment has been blood-drenched and steeped in genocide, slavery, domination by capitalists, and structural racism from the very beginning. A new era of cooperation is called for, with true democratic consensus and citizen involvement in governance as well as the workplace.

Smaller areas based on bioregionalism and the city-state will replace the nation-state (which Gore Vidal, among others, spoke out in favor of) and will be more likely to prosper, as they will be more likely to provide for their citizens. Climate refugees and nomadic ways of life will increase for those fleeing disaster, or simply seeking better opportunities. Decentralization of power as well as a closer connection to the land will foster a reawakening of the tribal ways of life, where tight-knit communities care for the sick, the elderly, disabled, and troubled souls, instead of shunting them into various soul-crushing institutions like jail, care homes and mental hospitals, etc.

A new era of solidarity and care for the meek must begin. This will mean feeding the millions per year who die of starvation, drought, lack of medical care, etc. This will mean reprioritizing our lives, with no excuses.

Radical egalitarianism and faith in the boundless potential of each and every person must be instilled in our societies. Some will denounce this as radical, utopian, unachievable. Those who say so are without hope, without faith, having been indoctrinated by mainstream media and enshackled by capitalist ideology.

Recently, in an interview, China Miéville explained this quite well: “We underestimate at our peril the kind of onslaught of received opinion from the media, from the sort of cultural establishment, basically kind of ruling out of court any notion of fundamental change.

“Ridiculing it as ridiculous, to the extent that, you know, when you start to talk about wanting a better world you see the eyes rolling. What kind of despicable pass have we come to, that that aspiration raises scorn? And yet that’s where we are, for huge numbers of the political establishment.”

What sort of ideology can replace this cynicism, this nihilism? What kind of world to we want to create? I defer to Carl Rogers: “Let me summarize my own political ideology, if you will, in a very few words. I find that for myself, I am most satisfied politically when every person is helped to become aware of his or her own power and strength; when each person participates fully and responsibly in every decision which affects him or her; when group members learn that the sharing of power is more satisfying than endeavoring to use power to control others; when the group finds ways of making decisions which accommodate the needs and desires of each person; when every person of the group is aware of the consequences of a decision on its members and on the external world; when each person enforces the group decision through self-control of his or her own behavior; when each person feels increasingly empowered and strengthened; and when each person and the group as a whole is flexible, open to change, and regards previous decisions as being always open for reconsideration.” (1)

 (1) May, Rollo, et al. Politics and Innocence: A Humanistic Debate. Saybrook Publishers, 1986, p.6

This Author

William Hawes is a writer specializing in politics and environmental issues. His articles have appeared online at Global Research, CounterPunch, Dissident Voice, The World Financial Review, Gods & Radicals, and Countercurrents.org. He is author of the e-book Planetary Vision: Essays on Freedom and Empire

You can reach him at wilhawes@gmail.com

This article first appeared at counterpunch.org

 

 

 

 

 

Election 2017: finally, a real choice for Britain’s voters

There seems to be a consensus that we are in a political crisis.

I don’t dispute the claim, but I would suggest that this crisis predates Brexit by a long way.

It’s a crisis that cuts right to the heart of our society and has been worsening over a period of decades.

The failure to recognise it, and adequately respond, has played a decisive role in creating the conditions for Brexit, Trump and the politics of hate that has been gaining momentum across Europe.

There are various aspects to it. One of the most obvious is inequality. For decades, inequality has been rising in this country. People have been working longer for less, and wealth, rather than trickling down, has been flowing upwards. An investment deficit, soaring house prices, insecure, low-paid work and rising tuition fees created a population with dwindling disposable incomes.

To function, the economy required vast sums of private debt. A deregulated financial sector was happy to oblige, engaging in reckless lending. As we now know, this paved the way for the financial crash of 2008.

The response to the recession that followed has been a politics of austerity that continues to punish the most vulnerable in our society. It’s led to over a million people using food banks; to 16 million Britons with savings of less than £100; and to 4 million children living in poverty, the vast majority of whom have at least one parent in work.

It’s led to roughly 24,000 elderly people a year dying because they can’t afford to heat their homes properly, and to workers suffering the biggest fall in wages among the world’s richest countries.

The worst off are being hit hardest. A couple of years ago, it emerged that the most deprived area in the country was suffering cuts worth £807 per household while the most affluent area was getting away with per household cuts of just £28.

Today, many children and chronically sick people are being hit by multiple cuts all at once. The impact on disabled people has been so extreme that a UN inquiry recently concluded that there have been “systematic violations” of the rights of people with disabilities. This was after ten thousand people died shortly after being declared ‘fit for work’ by our government.

At the other end of the spectrum, the richest 10% of UK households own more wealth than the other 90% combined, and we have more billionaires than ever before. Compounding the problem, researchers estimate that over £100 billion a year is lost to tax avoidance, with some of the largest corporations paying no tax at all.

Was austerity necessary?

Now was this austerity necessary? Not according to textbook economics which tells us that reducing spending during a recession is pretty much the worst thing that can be done.

In fact, economic historians have shown that policies of austerity have never managed to revive a flagging economy. Oxford economist Simon Wren-Lewis found that austerity after 2010 slowed our recovery, costing the nation over £100 billion.

Austerity was and is a crisis for millions of people in this country – it has destroyed lives, well-being, wealth and mental health on a significant scale.

Yet it was widely accepted as necessary by both major parties and the media. A banking crisis that had its origins in the irresponsible and illegal behaviour of the private sector was repackaged as a crisis of government spending.

The question was not whether we needed cuts but where and how quickly they should fall. Mervyn King, while Governor of the Bank of England, summed up the situation, when he said “The price of this financial crisis is being borne by people who absolutely did not cause it”; and “I’m surprised that the degree of public anger has not been greater than it has.”

Austerity was widely accepted as necessary by both major parties and the media.

Market fundamentalism

Growing inequality is bound up with another aspect of the crisis we face: the erosion of democracy. The last few decades have been marked by a turn towards market fundamentalism – an approach that has transferred wealth and power from the public sphere to the private, and on a global scale.

Today, 1% of humanity owns as much wealth as the other 99% combined, and some of the largest corporations control more wealth than many nations.

The most powerful actor in the market, the corporation, is driven by the profit imperative. This commitment to profit not only results from market competition, it’s enshrined in law – corporations have long been legally obliged to maximise profits for their shareholders.

A corporation can increase profits in various ways. Some of these can benefit society as a whole, such as creative innovations. But there are many easier ways to generate profits that are seriously damaging: increasing demands on workers while reducing wages, using natural resources without paying for them; polluting while leaving others to pick up the bill; manufacturing unhealthy wants through manipulative advertising; and extracting subsidies, tax breaks, and bail-outs from the state.

Here’s a striking example: the IMF calculated that the world’s governments are subsidising the fossil fuel industry to the tune of $10 million a minute. In the UK, while cutting vital subsidies to renewable energy, the Tory government’s contribution to the fossil fuel industry stands at £9 billion a year.

All of this is going on as climate scientists warn that we are on course to create a planet able to support less than a billion people by the end of the century. In other words, business as usual for the fossil fuel industry means wiping out most of humanity – and our taxes are helping them do it.

And because of the warming that’s already occurred, millions are dying and being displaced each year. Today, few acts are as violent as the burning of oil, gas and coal.

When democratic power fails to regulate the market to protect the public interest, market power will regulate democracy to protect corporate interests. To defend citizens, workers and the environment, a democratic state must limit the ways in which corporations are allowed to pursue profit.

The state has the power to impose regulations, extract taxes and cordon off parts of the economy from the market, such as healthcare and education. This enables the public to obtain with their votes what they cannot afford in the market.

From the perspective of the corporation, a well-functioning democracy is an obstacle to profit. The obvious solution is to take control of the state through the capture of regulatory agencies, the lobbying of government, the funding of political parties, the establishment of think thinks, and by ensuring that the revolving door between high level industry and government keeps on spinning.

Market power will regulate democracy to protect corporate interests.

Manufacturing consent

There have always been two ways to gain the consent of the governed. The first is to change the government to please the public. The second is to change the public to please the government.

Almost a century ago, the influential US intellectual Walter Lippmann wrote about the need to “manufacture consent” as a solution to the threat of democracy. Since then, techniques for controlling the flow of ideas, facts and perspectives through society have been increasing in sophistication.

There’s a rich, though little known, history about how public relations, informed by psychological research, have been used to subvert democracy – it ought to be widely studied. The latest developments draw on big data.

You may have heard of a company named Cambridge Analytica, owned by a US billionaire. According to a recent Guardian investigation, by exploiting the growing field of psychometrics and drawing on vast stores of personal data, this company has played a decisive role in influencing electoral outcomes, including the EU referendum.

People are rightly outraged by this. But such meddling isn’t new. Every election is interfered with by politically motivated billionaires – some foreign, like Rupert Murdoch, others domestic such as Lord Rothermere. Almost all our media is owned by a handful of billionaires. This elite group controls close to 80% of the press.

Being billionaires, their interests tend to conflict with those of most ordinary people. In their hands, media becomes a political weapon to ‘manufacture consent’.

This isn’t simply a matter of opinion. Decades of academic studies have demonstrated the systematic right-wing biases of the UK media – including the BBC – on a range of issues, and poll after poll shows how public opinion reflects this distortion and bias.

Ignoring history and economic orthodoxy, the media has functioned as a megaphone for the government’s austerity narrative. Researchers at University College Dublin examined the coverage of austerity after the 2010 UK election, looking at four leading national papers: The Daily Telegraph, The Times, the Financial Times and The Guardian.

They found a clear pro-austerity bias. Of 347 articles, only 21% showed any opposition to austerity. Another way of demonstrating this bias is to analyse which ‘experts’ were invited to comment on the cuts. Most were bankers, politicians and economists who failed to predict the crash. Only 1% came from a trade union.

A look at public opinion over the period shows how influential the austerity narrative became. According to YouGov polls, from 2010, public opposition to austerity steadily declined with each passing year. As this decline occurred, the proportion of people who believed the cuts were ‘too slow’, doubled.

The most popular cuts were often those that targeted the most vulnerable: the disabled, the unemployed and those receiving housing benefit. By 2014, an ICM poll showed that the public, by a wide margin, trusted the Conservatives most ‘to manage the economy properly’.

As Malcolm X put it, “If you’re not careful, the newspapers will have you hating the people who are being oppressed, and loving the people who are doing the oppressing.”

Ugly scapegoating

This year the UK has dropped to 40th in the press freedom world rankings. This suggests that journalists in the UK are less free to hold power to account than those working in Jamaica, Chile or South Africa.

Although we all have the same freedom to speak, we do not all have the same freedom to be heard. Most of the time, that freedom belongs to the wealthy few who own and subsidise our media. It’s a freedom that comes with a hefty price tag.

There’s much to say on these issues, but the central point is this: in our society, the principle of one pound one vote has overwhelmed the principle of one person one vote. We have a system dominated and corrupted by concentrated wealth, one that has left millions of people behind to struggle on under increasingly adverse conditions.

Combined with our hopelessly outdated first past the post system and ongoing gerrymandering, it’s clear that our system is in crisis. But it’s a system that exploits the crises it creates, feeding off its own failures.

The financial crisis is being exploited to dismantle the welfare state and the NHS. And Brexit is being exploited to tear up workers’ rights and environmental protections. It’s a system that exploits the crises it creates, feeding off its own failures.

Many who today are outraged by Brexit have long failed to recognise and respond to the deeper systemic crisis. Sheltered by privilege, and taking our lead from the media, too many of us have been complacent about the multiple ways in which our system is failing, and the scale of the suffering and anger it’s causing.

When we fail to respond to crises that do not yet affect us, we pave the way for others to exploit them for their own gain. Invariably this takes the form of ugly scapegoating which channels people’s anger where those doing the channeling find it politically useful.

In recent years, people of colour, Muslims, Jews, LGBTI communities, disabled people and immigrants have all been targeted. The resistance to acknowledge, let alone confront, the root causes of our failing system created the conditions for Brexit, Trump, and the rise of hate politics.

So yes, Brexit is a significant and unwelcome development, one that if mishandled may compound many of the problems we face. But it’s a symptom not the disease.

Business as usual

Many commentators appear to have learned the wrong lesson from the turbulence of 2016. Former Prime Ministers Tony Blair and John Major have identified the problem as one of ‘political extremes’. Blair has warned against the ‘far-right’ and ‘far-left’, positioning himself as the defender of the voiceless middle ground, while Major recently urged us to return to the ‘solid centre’.

But the centre ground of political opinion, where many feel most comfortable, is not where extremes are avoided, it’s where they are normalised.

Today’s centre ground is part of an ideological spectrum distorted by concentrated power. It’s a social construct, commanding most loyalty from those whose privilege protects them from the ravages of the system they support.

There is nothing moderate, reasonable or balanced about occupying this political terrain. To do so is to favour business as usual: the ongoing erosion of democracy, the acceleration of inequality, the support of abusive regimes, the destruction of the conditions for our existence, and the dehumanisation of those whose suffering is politically inconvenient, whether they be drowning in the Mediterranean or queuing up at food banks.

So how should we respond? We should reject the centre ground and embrace radical, compassionate, bold politics, and support it in all its forms: whether we’re talking about general elections or public protests.

To clarify, the meaning of the word ‘radical’ is bound up with the idea of getting to the root of something, getting to the core or origin of a problem. And that’s what we must do.

For many years we’ve been facing at least three profound crises: a democratic crisis, an inequality crisis, and an existential, environmental crisis. There’s simply no way to tackle these crises without subverting the wealth-concentrating, expansionist logic of capitalism.

So without a surge in radical politics, these crises will only deepen. After all, the political and corporate elite has shown itself more ready to accept the destruction of the ecosystem, and with it most of humanity, than to question capitalism.

Radical politics – or social democracy?

Radical politics, even diluted versions of it, have always been opposed by the establishment. Its figureheads have always been attacked.

We saw this very clearly during the Democratic primaries, when it was well understood that Bernie Sanders stood a far better chance of beating Donald Trump than Hillary Clinton. Polls indicated that Bernie’s rejection of establishment politics, his willingness to confront Wall Street, big business and the corporate media resonated with more Americans than Hillary’s message.

Despite this, the liberal media and the Democratic establishment rallied behind Hillary: a defender of Wall Street with a history of supporting new wars and escalating existing ones, who wrote during the campaign that environmental activists fighting to protect life should instead “get a life”. Frankly, if you’re not yet radical, you haven’t been paying attention.

By failing to provide an honest, compelling, analysis of what had gone wrong with society and how to make it right – something Bernie came far closer to offering – the liberal establishment paved the way for a dangerous demagogue who gave the wrong answers to some of the right questions.

Hillary’s defeat is symptomatic of an establishment, on both sides of the Atlantic, committed to holding the amiable mask of liberalism firmly in place over a corrupt, exploitative, unsustainable, system.

Since the election of Jeremy Corbyn we have seen our own version of this dynamic play out. Under the leadership of Ed Miliband, Labour was committed to ‘austerity-lite’: cuts were needed, they claimed, but not quite as many or quite as fast as the Tories were planning.

After losing the 2015 election, Miliband resigned, and the only anti-austerity candidate on the ballot, outsider Jeremy Corbyn, surged to victory on a wave of popular support, earning the largest mandate ever won by a party leader.

The media onslaught that followed has been quite remarkable. As subsequent research has shown, the British press, including the BBC, have “systematically undermined” Corbyn with “a barrage of overwhelmingly negative coverage”.

It’s worth noting that in Scandinavia, Jeremy Corbyn would be regarded as something like a mainstream social democrat, which only shows how far the UK centre ground has shifted to the right. This is Tony Blair’s legacy, and the reason Margaret Thatcher described him as her greatest achievement.

This legacy helps to explain why it’s not just been the Tories and the media attacking Corbyn – from day one he’s been actively sabotaged by an intransigent bureaucracy and powerful figures within his own party. What we’re seeing is an ideological struggle for the soul of the Labour Party.

Thatcher’s legacy

How far the UK centre ground has shifted to the right is Tony Blair’s legacy, and the reason Margaret Thatcher described him as her greatest achievement.

In truth, the Labour Party has always been two parties crammed into one. Since its creation, a struggle for what it would stand for has raged between those who offer a deeper critique of society – let’s call them ‘radicals’ – and those who embrace and defend the status quo but want to curb the worst excesses of the system – let’s call them ‘liberals’.

Over the last century, time and again, the liberals have shown that they are willing to undermine their electoral chances rather than allow Labour to be turned into a vehicle for radical politics. For much of the party’s history, this group has maintained a tight grip on the Parliamentary Labour Party. For the first time in my life, that grip has been seriously loosened. This is a rare and valuable opportunity.

It should be said that the campaign against Jeremy Corbyn has been extremely effective. Even now, weeks before a general election, you’ll find prominent authors, journalists and celebrities – themselves Labour supporters – using their substantial public platform to chip away at Corbyn’s credibility.

Given that this election is a life and death affair for many of the most vulnerable in our society, this is deeply irresponsible behaviour.

Personally, I find much to admire in Corbyn. Of course, he’s not perfect – mistakes have been made – but to focus on this is to miss the point. It’s foolish to echo the superficial narrative of the establishment and personalise this historic political moment.

Our focus should always be on the broader struggle for democracy, equality and survival – a struggle in which the virtues of unity and solidarity are paramount. It’s foolish to personalise this historic political moment.

Shifting from personality to substance

When we shift from personality to substance we find that Labour are committed to scrapping Theresa May’s Brexit plan on day one.

They are committed to introducing a bill to ensure workers’ rights are protected, to guaranteeing that EU nationals can remain in the UK, to negotiating tariff-free access to the European market and to allowing MPs to vote on the final deal.

Beyond Brexit, Labour are offering one of the most progressive manifestos in living memory and the boldest environmental policies of any major party in British history.

If such a desperately needed policy platform proves to be unelectable, it will not be one man’s failure. It will be the failure of each and every one of us to create the conditions for its success.

But we still have time. Let’s use it well.

 


 

Raoul Martinez is a philosopher, artist and award-winning filmmaker. Creating Freedom, a radical and highly provocative rethink of freedom, is his first book. It was described by the Guardian as “Exceptional … this year’s essential text”.

Related Articles: Jeremy Corbyn – a mainstream [Scandinavian] social democrat by Jonas Fossli Gjersø.

Read it: Labour’s 2017 election manifesto.

This article was originally published here by openDemocracy under a Creative Commons Attribution-NonCommercial 4.0 International licence.

Creative Commons License

 

Australia axes climate change adaptation research

The 2017 federal budget has axed funding for the National Climate Change Adaptation Research Facility (NCCARF), an agency that provides information to decision-makers on how best to manage the risks of climate change and sea level rise. The Conversation

The NCCARF received A$50 million in 2008 to coordinate Australia’s national research effort into climate adaptation measures. That was reduced in 2014 to just under A$9 million.

For 2017-18, a mere A$600,000 will be spread between CSIRO and NCCARF to support existing online platforms only. From 2018, funding is axed entirely.

This decision follows on from the 2014 streamlining of CSIRO’s Climate Adaptation Flagship, and comes at a time when a national review of Australia’s climate policies is still underway.

Despite a growing global impetus to address the risks of climate change, there is evidence that Australia is being hampered by policy inertia.

A review of 79 submissions to the Productivity Commission’s inquiry on Barriers to Effective Climate Change Adaptation, published in 2014, found that “adaptation first and foremost requires clear governance, and appropriate policy and legislation to implement change.”

‘Lives and money will be saved by strong climate adaptation measures’

Earlier this year the World Economic Forum listed “failure of climate change mitigation and adaptation” as one of the top five risks to the world, in terms of its potential impact. Meanwhile, in Australia, local governments, professionals and community groups have consistently called for more national policy guidance on how best to adapt to climate risks.

The government’s decision to slash funding for climate adaptation research is therefore at odds with the growing urgency of the problem. The Intergovernmental Panel on Climate Change, in its most recent major assessment report, pointed out that Australia can benefit significantly from taking adaptation action in highly vulnerable sectors.

These areas of vulnerability include: the risk of more frequent and intense floods; water shortages in southern regions; deaths and infrastructure damage caused by heatwaves; bushfires; and impacts on low-lying coastal communities.

To put it simply, lives and money will be saved by strong climate adaptation measures.

Australia needs a coherent policy approach that goes beyond the current focus on energy policy, although climate adaptation is indeed an important issue for our electricity grid as well as for many other elements of our infrastructure. A coherent, whole-of-government, approach to climate risk is the economical and sensible approach in the long term.

Federal government should do its job

Like it or not, the federal government has to take a leading role in climate adaptation. This includes the ongoing need to address existing knowledge gaps through well-funded research.

The federal government is the major funder of leading research in Australia, delivered through CSIRO, the National Health and Medical Research Council, the Cooperative Reserach Centres, the Australian Research Council and universities. This role should not be divested.

Without climate adaptation research, Australia can expect significantly higher infrastructure damage and repair costs, more death and disease, and more frequent disruption to services – much of which would be avoidable with the right knowledge and preparation.

The damage bill from the 2010-11 Queensland floods alone exceeded A$6 billion. Since 2009, natural disasters have cost the Australian government more than A$12 billion, and the private sector has begun trying in earnest to reduce its risk exposure.

In response to these known risks, there is demand for robust policy guidance. Effective partnerships between government, industry and the community are crucial. One such example led by the NCCARF is CoastAdapt, an online tool that collates details of climate risks and potential costs in coastal areas.

For projects like this, success hinges on full engagement with all relevant spheres of government, industry, research, and the community. There is more to be done, and it needs leadership at the highest level.

 


 

Tayanah O’Donnell is Research Fellow, University of Canberra.

Josephine Mummery is Research Fellow and PhD Candidate, climate change policy, University of Canberra.

This article was originally published on The Conversation. Read the original article.

 

Oil industry’s sunset years: low prices, weak demand, poor outlook

Big oil is getting smaller. Many of the oil services companies that are employed when new fields are being developed have been laying off workers, and oil companies have been writing down their assets.

The problem is the persistent low price of oil. Despite the best efforts of OPEC – the organisation representing the developing world’s oil producing countries – to limit production and put a squeeze on supplies, oil prices have risen only slightly.

This has put many potential fields in the category of being too expensive to exploit – particularly in the case of the tar sands of Canada, and in the Arctic and difficult-to-reach offshore locations.

One of the areas where small fluctuations in the price of oil make a big difference is in the expansion of the fracking industry in North America, which led to the glut of oil on the world market.

Oil industry majors shed 300,000 workers

The US, once the world’s biggest importer of oil, has increased home production so much that it now provides more than 75% of its own oil. This has left OPEC countries looking for new customers.

The world’s oil field services companies, which rely on the oil industry majors such as Exxon, BP and Shell to employ them in exploiting new fields, have been shrinking as a result.

According to research by oil and gas consulting service Rystad Energy, about 300,000 people in the sector have lost their jobs between 2014-16. That is about 35% of the total workforce of the world’s top 50 oilfield services companies.

It was the North American shale industry that took the largest single reduction, with two of the largest land drillers, Nabors Industries and Helmerich & Payne, announcing a series of staff cuts, resulting in an overall reduction of more than 50%.

International companies that tend to be working on larger long-term projects took more modest cuts of between 20% and 30%, but these are still substantial.

The key to the future of many of these companies is what happens to the price of oil now. It had slumped to $40 a barrel before the latest OPEC production cut, then rose to nearly $60, before dropping back again to near $50.

Oil price falls ‘a blip’, insists oil industry

The oil industry remains optimistic that these prices are short term, believing that the oil price will rise again above a threshold that makes investment in new fields worthwhile.

Oil and Gas Journal reported Audun Martinsen, Rystad vice-president of oil field service research, as saying that the North American companies were again recruiting more staff.

Rystad expects shale-focused operators to increase their spending by 30% in 2017, while it thinks offshore spending will grow, beginning in 2018, as more final investment decisions are made.

“With more projects offshore being revived in 2017, we expect the offshore layoffs to stabilise and start to increase later in 2017”, Martinsen said. “Already we see this trend in Norway, and it is only a question of time before it starts elsewhere.

“The race for the best hands and brains has started in the industry, and the companies that have laid off people in a responsible manner are likely to have a competitive edge going forward.”

However, outside the oil industry, commentators are not so sure. The constant expansion of the oil majors for more than a century has gone into reverse. The industry is suffering from competition from biofuels on one side and electric vehicles on the other.

More efficient vehicles flip oil demand into ‘death spiral’

Motor manufacturers have been forced by regulation to make vehicles more efficient, and expanding markets such as India and China are moving fast to cut pollution. China in particular is leading the way on electric and hybrid vehicles, and many commentators believe the sector is set for rapid growth over the coming decade.

These trends have led to the Institute for Energy Economics and Financial Analysis (IEEFA) warning investors to get out of ExxonMobil shares.

It says the decline in the price of oil, from a maximum of $147 to around $50, leaves the company unable to cover the massive costs of operations and investment. The empire is bound to shrink, taking the price of shares down with it.

According to the International Business Times, the company may be in a “death spiral”. Quoting the IEEFA report, it says that while Texas-based Exxon Mobil may be considered the world’s largest oil company, there are danger signs about its future.

The company was established in 1990 after a merger of separate companies, Exxon and Mobil. In April, Standard & Poor’s Global Ratings service demoted ExxonMobil’s perfect AAA credit score to AA+ for the first time since the Great Depression of the 1930s.

Most recently, the company has come under fire as a result of what critics call a lack of transparency with regard to the value of its reserve in the face of oil industry woes and climate change.

The New York Attorney General, Eric Schneiderman, and the US Securities and Exchange Commission have both opened investigations into ExxonMobil’s accounting practices and how the company factored environmental change into its financial reporting. 

 


 

Paul Brown writes for Climate News Network, where this article originally appeared (CC BY-NC-ND).

 

Oil industry’s sunset years: low prices, weak demand, poor outlook

Big oil is getting smaller. Many of the oil services companies that are employed when new fields are being developed have been laying off workers, and oil companies have been writing down their assets.

The problem is the persistent low price of oil. Despite the best efforts of OPEC – the organisation representing the developing world’s oil producing countries – to limit production and put a squeeze on supplies, oil prices have risen only slightly.

This has put many potential fields in the category of being too expensive to exploit – particularly in the case of the tar sands of Canada, and in the Arctic and difficult-to-reach offshore locations.

One of the areas where small fluctuations in the price of oil make a big difference is in the expansion of the fracking industry in North America, which led to the glut of oil on the world market.

Oil industry majors shed 300,000 workers

The US, once the world’s biggest importer of oil, has increased home production so much that it now provides more than 75% of its own oil. This has left OPEC countries looking for new customers.

The world’s oil field services companies, which rely on the oil industry majors such as Exxon, BP and Shell to employ them in exploiting new fields, have been shrinking as a result.

According to research by oil and gas consulting service Rystad Energy, about 300,000 people in the sector have lost their jobs between 2014-16. That is about 35% of the total workforce of the world’s top 50 oilfield services companies.

It was the North American shale industry that took the largest single reduction, with two of the largest land drillers, Nabors Industries and Helmerich & Payne, announcing a series of staff cuts, resulting in an overall reduction of more than 50%.

International companies that tend to be working on larger long-term projects took more modest cuts of between 20% and 30%, but these are still substantial.

The key to the future of many of these companies is what happens to the price of oil now. It had slumped to $40 a barrel before the latest OPEC production cut, then rose to nearly $60, before dropping back again to near $50.

Oil price falls ‘a blip’, insists oil industry

The oil industry remains optimistic that these prices are short term, believing that the oil price will rise again above a threshold that makes investment in new fields worthwhile.

Oil and Gas Journal reported Audun Martinsen, Rystad vice-president of oil field service research, as saying that the North American companies were again recruiting more staff.

Rystad expects shale-focused operators to increase their spending by 30% in 2017, while it thinks offshore spending will grow, beginning in 2018, as more final investment decisions are made.

“With more projects offshore being revived in 2017, we expect the offshore layoffs to stabilise and start to increase later in 2017”, Martinsen said. “Already we see this trend in Norway, and it is only a question of time before it starts elsewhere.

“The race for the best hands and brains has started in the industry, and the companies that have laid off people in a responsible manner are likely to have a competitive edge going forward.”

However, outside the oil industry, commentators are not so sure. The constant expansion of the oil majors for more than a century has gone into reverse. The industry is suffering from competition from biofuels on one side and electric vehicles on the other.

More efficient vehicles flip oil demand into ‘death spiral’

Motor manufacturers have been forced by regulation to make vehicles more efficient, and expanding markets such as India and China are moving fast to cut pollution. China in particular is leading the way on electric and hybrid vehicles, and many commentators believe the sector is set for rapid growth over the coming decade.

These trends have led to the Institute for Energy Economics and Financial Analysis (IEEFA) warning investors to get out of ExxonMobil shares.

It says the decline in the price of oil, from a maximum of $147 to around $50, leaves the company unable to cover the massive costs of operations and investment. The empire is bound to shrink, taking the price of shares down with it.

According to the International Business Times, the company may be in a “death spiral”. Quoting the IEEFA report, it says that while Texas-based Exxon Mobil may be considered the world’s largest oil company, there are danger signs about its future.

The company was established in 1990 after a merger of separate companies, Exxon and Mobil. In April, Standard & Poor’s Global Ratings service demoted ExxonMobil’s perfect AAA credit score to AA+ for the first time since the Great Depression of the 1930s.

Most recently, the company has come under fire as a result of what critics call a lack of transparency with regard to the value of its reserve in the face of oil industry woes and climate change.

The New York Attorney General, Eric Schneiderman, and the US Securities and Exchange Commission have both opened investigations into ExxonMobil’s accounting practices and how the company factored environmental change into its financial reporting. 

 


 

Paul Brown writes for Climate News Network, where this article originally appeared (CC BY-NC-ND).