Cheap oil had allowed populations to explode in precisely those parts of the world that had had, for… — James Howard Kunstler
Cheap oil had allowed populations to explode in precisely those parts of the world that had had, for millennia, a high infant mortality rate and modest life expectancy. Cheap oil was behind the "" that increased the food supply in the nonindustrial world. Oil was also behind many of the medicines and preventives that had neutralized… diseases. Now, suddenly, most of those children… survived, grew up, and produced more children who survived and grew up, and over the course of the twentieth century, the global populations hurtled into extreme numerical overshoot. Populations were, in effect, eating oil, notably in [the form of] food exports from the United States, where agribusiness had completely taken over from agriculture. Local farmers in Africa, Asia, or South America couldn’t compete with corporate Archer Daniels Midland’s oil-and-gas-based grain crops and U.S. government subsidies. There was no point in even bringing their hardscrabble crops to market when sacks of cheap American wheat sat on the docks of Pusan or Colombo. Farmers in those places felt that they had no choice but to migrate to the city and find some other way to get by. The only comparative advantage that these people possessed was their willingness to work for next to nothing. Cheap oil and free-market globalism turned comparative advantage into a new kind of feudalism, with the corporations as the lords and the overabundant locals as the serfs. And then, when the comparative advantage of cheap labor… of one place, […] was superseded by the cheaper labor… of another place, […] the corporations just moved their operations.
p. 187Source: Wikiquote · CC BY-SA 4.0
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At the start of the oil glut, a climactic set of economic relations took shape led by Prime Minister Margaret Thatcher (and joined eagerly by President Reagan and his advisors) that would be called “globalism.” It was not so much a new idea as the logical and inevitable result of mature self-organizing systems elaborating themselves under the influence of renewed, immense energy inputs—the ultimate cheap-oil way of doing business in the closed system [in respect to matter] that is the planet Earth. It entailed the maximization of short-term profit and the minimization of care for future generations. It was the ultimate generator of entropy.
p. 219
Globalism was operated by oligarchical corporations on the gigantic scale, made possible by cheap oil. By “oligarchical” I mean that power was vested in small numbers of people running large organizations who were not accountable for their actions to many of the people who were subject to those actions. By “corporation,” I mean a group enterprise given the legal status of a “person,” with “rights,” but in fact devoid of any human qualities of ethics, humility, mercy, duty, or loyalty that would constrain those rights. As Wendell Berry put it, “a corporation… is a pile of money to which a number of persons have sold their moral allegiance… It can experience no personal hope or remorse. No change of heart. It cannot humble itself. It goes about its business as if it were immortal, with the single purpose of becoming a bigger pile of money.
p. 186
It is assumed now that human beings, prompted by the market, will employ ingenuity to discover a substitute for oil and gas, once the price starts to ramp up beyond the “affordable” range. This assumption is apt to prove fallacious because it ignores the fact that the earth is a closed system [for matter], while the laws of thermodynamics state that energy can’t be created out of nothing, only changed from low entropy to high entropy, and that we have already changed the half [or perhaps a fraction] of our [planet's] oil endowment that was easiest to get into dispersed carbon dioxide, which is now ratcheting up global warming and climate change, which might well put the industrial adventure out of business before human ingenuity can come up with a substitute for oil. The [fraction of] solar energy [that was] stored for millions of years in oil [and was easy to extract] will now be expressed in higher temperatures, more severe storms, rising sea levels, and harsher conditions for the human species, which, despite its… technological [and scientific] achievements, remains a part of nature and subject to its laws.
p. 194