U.S.Gasoline Use Declining – Keystone XL Pipeline Not Needed

This is a guest post by Lester Brown, president of the Earth Policy Institute and author of World on the Edge.

As the debate unfolds about whether to build a 1,711-mile pipeline to carry crude oil from the tar sands in Canada to refineries in Texas, the focus is on the oil spills and carbon emissions that inevitably come with it. But we need to ask a more fundamental question.

Do we really need that oil? Continue reading

Why World Food Prices May Keep Climbing

Lester Brown Book

Greenpeace has invited Lester Brown to be a guest blogger, providing his unique analyses on climate change, food security, population pressures, and solutions. He is president of Earth Policy Institute and author of World on the Edge in which he promotes Plan B, a roadmap for saving civilization.

In February, world food prices reached the highest level on record. Soaring food prices are already a source of spreading hunger and political unrest, and it appears likely that they will climb further in the months ahead.

Graph on World Monthly Food Price Index

 

As a result of an extraordinarily tight grain situation, this year’s harvest will be one of the most closely watched in years. Last year, the world produced 2,180 million tons of grain. It consumed 2,240 million tons, a consumption excess that was made possible by drawing down stocks by 60 million tons. (See data at www.earth-policy.org)

To avoid repeating last year’s shortfall and to cover this year’s estimated 40-million-ton growth in demand, this year’s world grain harvest needs to increase by at least 100 million tons. Yet that would only maintain the current precarious balance between supply and demand.

Graph on World Grain Stocks as Days of Consumption

To get prices back down to a more acceptable level, it would take perhaps another 50 million tons for a total increase of 150 million tons. Can the world boost this year’s grain harvest by 150 million tons or even 100 million tons? It is possible, because we have had annual harvest jumps of 150 million tons twice over the last two decades, but this year it does not appear likely.

In assessing the world grain harvest prospect, we focus on the big three grains—rice, wheat, and corn—that together account for nearly 90 percent of the harvest. Barley, oats, sorghum, rye, and millet make up the remainder.

We start by looking at rice because, as an irrigated crop, its production fluctuates little. The average annual gain in the world rice harvest, which totaled 452 million tons last year, has been 7 million tons. Let’s assume that we get a 10 million ton gain in rice this year.

Wheat, now the world’s leading food grain, is much more difficult to assess because so much of the harvest is rain-fed, making yields as variable as the rainfall. But since most wheat is winter wheat, which is planted in the fall, is dormant in winter, and resumes growth in early spring, we know that this year the wheat area planted is up by 3 percent. We also have an early sense of the crop’s condition.

We begin with the big four wheat producers—China, India, the United States, and Russia—which collectively produce half the world’s wheat. China, the leading wheat producer, was until very recently suffering the worst drought in its winter wheat-growing region in 60 years. Although rain and snow in late February and early March rains and snow have lessened the drought effect, we could easily see China’s wheat harvest drop from 115 million tons last year to 110 million tons this year. India is officially expecting an 82-million-ton harvest, up 1 million tons from last year.

In the United States—the third ranking wheat producer—the southern Great Plains are suffering from drought. As of the end of February, the U.S. winter wheat crop condition was among the worst in the last 20 years. The U.S. Department of Agriculture estimates the harvest will drop from 60 million tons to 56 million, and this may be conservative.

Russia’s wheat harvest should be up sharply from last year’s heat-devastated crop of 42 million tons. But last fall it was too dry to plant one fifth of its winter wheat, which means many more farmers will plant lower-yielding spring wheat—wheat that is planted in the spring and is harvested in the late summer or early fall. With a little luck, Russia should harvest roughly 58 million tons of wheat.

Adding in the rest of the world’s expected wheat production, can we match last year’s world wheat harvest figure of 645 million tons? We should exceed it. The International Grains Council estimates this year’s harvest at 672 million tons, up by 27 million tons over 2010. This contrasts with the Canadian Wheat Board estimate of 653 million tons, a gain of only 8 million tons. For calculation purposes, let us assume that this year’s wheat harvest is up by 20 million tons for a total of 665 million tons.

Now for corn. Two countries tell the story here: the United States and China, which produce 40 and 20 percent, respectively, of the 814-million-ton world corn harvest. Combining the expected 4 percent increase in U.S. planted area with a 10-ton-per-hectare yield, the U.S. corn harvest could increase by 25 million tons. China’s corn harvest, which has fluctuated around 165 million tons for the last three years, is not likely to increase given its tight water situation. For the remaining 40 percent of the corn harvest, we will assume a gain of 15 million tons. All together this takes the world harvest up by 40 million tons.

Let’s review the global numbers. It will take 100 million tons of additional grain just to maintain the current precarious situation and close to 150 million tons to restore some semblance of stability in the world grain market. We can count on a 10-million-ton increase in this year’s rice harvest. We are hoping for a 20-million-ton rise with wheat and a 40-million-ton jump in corn. Let us also assume that minor cereals increase by 10 million tons over last year. This would give us a total increase of 80 million tons, not enough to prevent further price rises.

Table on Grain Production in Selected Countries and the World

Estimating world grain production is becoming more complex and difficult. On the demand side of the equation, there are three sources of growth: the addition of 80 million people per year, some 3 billion people moving up the food chain consuming more grain-intensive livestock products, and the massive conversion of grain to fuel ethanol in the United States.

On the supply side, there was a time when grain production was on the rise almost everywhere. That world is now history. In a number of countries, grain harvests are shrinking because of aquifer depletion and severe soil erosion. Rising temperatures are also taking a toll. And some agriculturally advanced countries have run out of new technology to raise land productivity.

In 18 countries containing half the world’s people, overpumping for irrigation is depleting aquifers.  Among the countries where harvests are falling as aquifers are depleted are Saudi Arabia, Syria, and Iraq. World Bank data for India indicate that 175 million people are being fed with grain produced by overpumping, which by definition is a short-term phenomenon. The comparable number for China is 130 million people.

In some countries such as Mongolia and Lesotho, grain production has fallen by half or more in recent decades as severe soil erosion has led to wholesale cropland abandonment. In North Korea and Haiti, soil erosion is undermining efforts to raise output.

In several agriculturally advanced countries, the backlog of unused technology has largely disappeared. Japan’s rice yield per acre has not increased for 16 years. China’s rice yield, now approaching that in Japan, may also be about to level off.

In France, Europe’s leading wheat producer, yields have been flat for a decade. Wheat yields have also plateaued in Germany and the United Kingdom. In Egypt, Africa’s leading wheat producer, wheat yields have been flat for six years.

wheat yields

At this point, it seems unlikely that we will get the 100-million-ton grain harvest increase this year that would be needed just to maintain the current rather precarious situation. Instead, it looks more likely that we will reduce stocks further. It may be somehow possible to avoid a rise in world food prices in the months ahead, but at this point it seems unlikely.

Let No Man Say It Cannot Be Done

World on the Edge

Greenpeace has invited Lester Brown to be a guest blogger, providing his unique analyses on climate change, food security, population pressures, and solutions.

He is president of Earth Policy Institute and author of World on the Edge in which he promotes Plan B, a roadmap for saving civilization.

We need an economy for the twenty-first century, one that is in sync with the earth and its natural support systems, not one that is destroying them. The fossil fuel-based, automobile-centered, throwaway economy that evolved in western industrial societies is no longer a viable model—not for the countries that shaped it or for those that are emulating them.

In short, we need to build a new economy, one powered with carbon-free sources of energy—wind, solar, and geothermal—one that has a diversified transport system and that reuses and recycles everything. We can change course and move onto a path of sustainable progress, but it will take a massive mobilization—at wartime speed.

Whenever I begin to feel overwhelmed by the scale and urgency of the changes we need to make, I reread the economic history of U.S. involvement in World War II because it is such an inspiring study in rapid mobilization. Initially, the United States resisted involvement in the war and responded only after it was directly attacked at Pearl Harbor. But respond it did. After an all-out commitment, the U.S. engagement helped turn the tide of war, leading the Allied Forces to victory within three-and-a-half years.

In his State of the Union address on January 6, 1942, one month after the bombing of Pearl Harbor, President Franklin D. Roosevelt announced the country’s arms production goals. The United States, he said, was planning to produce 45,000 tanks, 60,000 planes, and several thousand ships. He added, “Let no man say it cannot be done.”

No one had ever seen such huge arms production numbers. Public skepticism abounded. But Roosevelt and his colleagues realized that the world’s largest concentration of industrial power was in the U.S. automobile industry. Even during the Depression, the United States was producing 3 million or more cars a year.

After his State of the Union address, Roosevelt met with auto industry leaders, indicating that the country would rely heavily on them to reach these arms production goals. Initially they expected to continue making cars and simply add on the production of armaments. What they did not yet know was that the sale of new cars would soon be banned. From early February 1942 through the end of 1944, nearly three years, essentially no cars were produced in the United States.

In addition to a ban on the sale of new cars, residential and highway construction was halted, and driving for pleasure was banned. Suddenly people were recycling and planting victory gardens. Strategic goods—including tires, gasoline, fuel oil, and sugar—were rationed beginning in 1942. Yet 1942 witnessed the greatest expansion of industrial output in the nation’s history—all for military use. Wartime aircraft needs were enormous. They included not only fighters, bombers, and reconnaissance planes, but also the troop and cargo transports needed to fight a war on distant fronts. From the beginning of 1942 through 1944, the United States far exceeded the initial goal of 60,000 planes, turning out a staggering 229,600 aircraft, a fleet so vast it is hard even today to visualize it. Equally impressive, by the end of the war more than 5,000 ships were added to the 1,000 or so that made up the American Merchant Fleet in 1939.

In her book No Ordinary Time, Doris Kearns Goodwin describes how various firms converted. A sparkplug factory switched to the production of machine guns. A manufacturer of stoves produced lifeboats. A merry-go-round factory made gun mounts; a toy company turned out compasses; a corset manufacturer produced grenade belts; and a pinball machine plant made armor-piercing shells.

In retrospect, the speed of this conversion from a peacetime to a wartime economy is stunning. The harnessing of U.S. industrial power tipped the scales decisively toward the Allied Forces, reversing the tide of war. Germany and Japan, already fully extended, could not counter this effort. British Prime Minister Winston Churchill often quoted his foreign secretary, Sir Edward Grey: “The United States is like a giant boiler. Once the fire is lighted under it, there is no limit to the power it can generate.”

The point is that it did not take decades to restructure the U.S. industrial economy. It did not take years. It was done in a matter of months. If we could restructure the U.S. industrial economy in months, then we can restructure the world energy economy during this decade.

With numerous U.S. automobile assembly lines currently idled, it would be a relatively simple matter to retool some of them to produce wind turbines, as the Ford Motor Company did in World War II with B-24 bombers, helping the world to quickly harness its vast wind energy resources. This would help the world see that the economy can be restructured quickly, profitably, and in a way that enhances global security.

The world now has the technologies and financial resources to stabilize climate, eradicate poverty, stabilize population, restore the economy’s natural support systems, and, above all, restore hope. The United States, the wealthiest society that has ever existed, has the resources and leadership to lead this effort.

One of the questions I hear most frequently is, What can I do?

People often expect me to suggest lifestyle changes, such as recycling newspapers or changing light bulbs. These are essential, but they are not nearly enough. Restructuring the global economy means becoming politically active, working for the needed changes, as the grassroots campaign against coal-fired power plants is doing. Saving civilization is not a spectator sport.

Inform yourself. Read about the issues. Pick an issue that’s meaningful to you, such as tax restructuring to create an honest market, phasing out coal-fired power plants, or developing a world class-recycling system in your community. Or join a group that is working to provide family planning services to the 215 million women who want to plan their families but lack the means to do so. You might want to organize a small group of like-minded individuals to work on an issue that is of mutual concern. You can begin by talking with others to help select an issue to work on.

Once your group is informed and has a clearly defined goal, ask to meet with your elected representatives on the city council or the state or national legislature. Write or e-mail your elected representatives about the need to restructure taxes and eliminate fossil fuel subsidies. Remind them that leaving environmental costs off the books may offer a sense of prosperity in the short run, but it leads to collapse in the long run.

During World War II, the military draft asked millions of young men to risk the ultimate sacrifice. But we are called on only to be politically active and to make lifestyle changes. During World War II, President Roosevelt frequently asked Americans to adjust their lifestyles and Americans responded, working together for a common goal. What contributions can we each make today, in time, money, or reduced consumption, to help save civilization?

The choice is ours—yours and mine. We can stay with business as usual and preside over an economy that continues to destroy its natural support systems until it destroys itself, or we can be the generation that changes direction, moving the world onto a path of sustained progress. The choice will be made by our generation, but it will affect life on earth for all generations to come.