You are currently browsing the tag archive for the ‘2008 oil crisis’ tag.

Addiction

Addiction is hell

Thomas L. Friedman and I don’t always see eye to eye, but this recent editorial of his is right on:

When a person is addicted to crack cocaine, his problem is not that the price of crack is going up. His problem is what that crack addiction is doing to his whole body. The cure is not cheaper crack, which would only perpetuate the addiction and all the problems it is creating. The cure is to break the addiction.

He goes on to quote economist Paul Romer: “A crisis is a terrible thing to waste,” which pretty much sums up the reason we did a “historical pre-enactment” of the 2008 oil crisis in World Without Oil. Through the artifice of a game, we got to have the learning opportunity a crisis presents, without the crisis itself.

President Bush understands our oil addiction – he used the term himself, in a State of the Nation speech. As Friedman elucidates, what Bush doesn’t understand is how to cure addiction. After 9/11, he told the nation to go shopping while he worked up a pretense to invade a country with huge oil reserves. This is some kind of twisted War On Drugs approach to oil addiction: you occupy your dealer. The only thing is, the War On Drugs isn’t working either.

So now we have: This is your economy. This is your economy without cheap oil. Any questions? Artwork by ~~zorro~~ via Flickr.

Formerly vibrant neighborhoods

Formerly vibrant neighborhoods

The credit crisis is grabbing the headlines in America, as Fannie and Freddie starve on the empty calories of their bad loans, IndyMac Bank goes into federal conservatorship, and so on. The latest Harper’s Index gives the underlying numbers:

Chance that a U.S. home is currently vacant: 1 in 35

Rank of this among the highest recorded vacancy rates in U.S. history: 1

An article in The Economist (July 12) backs up the numbers: 18,600,000 U.S. housing units stand empty. It goes on to say that “formerly vibrant neighborhoods have taken on the dilapidated air of ghost towns” and “municipal taxes go unpaid” and “boarded-up homes invite looting, drugs and other criminal activity” – all outcomes foreseen in the WWO game. What we didn’t foresee: that cities would respond by demolishing the homes. But that’s actually being contemplated, according to the article.

The media hasn’t yet connected the 2008 credit crisis to the 2008 oil crisis, but again WWO teaches us the connection is there. As explained in an earlier post, the Petro Razor is at work here. Communities with forced commutes are on the wrong side of the Razor are likely never to recover; I’ve already heard anecdotal evidence that this process is underway.

Meanwhile, in a short article on Page 10A, we learn that Russia has reduced oil flow to the Czech Republic without warning or explanation. The move comes three days after the CR inked an agreement enabling the U.S. to build a missile-tracking radar station on Czech soil, So now begins the petropower plays among nations, also foreseen in WWO? The event that set off the global oil crisis was this: oil suppliers “unilaterally renegotiated their contracts,” delivering less oil than promised, which is exactly what’s happening to the Czech Republic. So is this a one-off, or a canary going thud in the coal mine? Stay tuned. Photo by judepics via Flickr.

It was the world's first serious alternate reality game, a cooperative pre-imagining of a global oil crisis. Over 1900 players collaborated in May 2007 to chronicle the oil crisis with their own personal blog posts, videos, images and voicemails. The game ended after simulating the first 32 weeks of the oil shock, but its effects continue, as game designers analyze its unique gameplay and we all watch the continuing drama with global oil prices and supply.