Macrobiotic Life

Peaceful scenario of the peak oil crisis:

The only thing we need to transition to is a zero-growth economy, which is going to be forced upon us. Peak oil does not mean the collapse of modern agriculture, however, and population die-off. This mantra among peak oil theorists is flawed. Bear with me here. Here’s why:

Peak oil destroys oil demand. When the price gets too high non-essential industries collapse first (airlines, car manufacturers, etc.) We’ve seen what happens then. The price of oil drops. It starts rising again as there’s some economic recovery, but eventually the price gets too high again and more industries collapse. Each collapse make the subsequent recovery smaller. It’s a bumpy down slope.

But agriculture won’t collapse during these high price peaks, because people need to eat. They will spend their last dollar on food. They will stop flying. They will stop buying new cars. But they can’t stop eating. So even if food prices rise during these brief oil-price peaks, agriculture won’t collapse. Remember also that the world food crises in many countries in 2008 was not due to the rising cost of oil (or natural gas) needed to produce food. Those amounts are marginal. Rather, it was the result of biofuels diverting cropland, and the UN and other world organizations woke up to that danger. It’s doubtful that will happen again on the scale it did in 2008. It’s doubtful economic recovery will ever increase enough to produce oil prices that high again, making biofuels competitive. Remember demand destruction REDUCES oil prices. Peak oil will over time REDUCE oil prices by destroying demand. This is such an important point.

Some important stats:

All farm machinery combined (tractors, combines, etc.) uses less than 1% of world oil consumption.
Producing nitrogen fertilizer uses less than 5% of world natural gas consumption.

As long as supply remains greater than demand and the price remains low (which is virtually assured because peak oil = industrial collapse) there will be plenty of oil and natural gas around for agriculture for a very, very long time. Even the transportation of food, which clearly uses more oil than farm machinery, will not be affected by oil depletion for these same reasons. Transporting furniture around the world from IKEA might slow down, but nobody is going to stop buying food.

Only when people are completely broke without a penny to their name will they stop buying food. But when this happens the government starts buying it for them, because otherwise the result is food riots, and that is bad for the upper classes as well.

Hence there is no imperative to localize food production. Most locations around the world can’t live on locally produced food anyway. Most States in the US are net food importers. Most countries are also.