The Forge Reference Project

 

Topic: Peak Oil
Started by: Christopher Weeks
Started on: 4/6/2005
Board: Forge Birthday Forum


On 4/6/2005 at 5:59pm, Christopher Weeks wrote:
Peak Oil

Someone referred to this issue in one of the other threads -- maybe the what do I hate thread. It's something that I've just recently been researching.

What do you think about Peak Oil?

If you think it's real, what are you doing about it? If you think it's a hoax, why? And why do you think it's being perpetuated?

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On 4/6/2005 at 7:01pm, Eero Tuovinen wrote:
RE: Peak Oil

Something like that isn't really a hoax, as the perpetrator knows at best only a little more than the victim. Really, do you know somebody who can gauge the socio-military-economical geographical effects of an oil shortage and project those changes 20 years to the future? At best you get reasonable approximations or guesses, which that page essentially is.

That said, I could see it happening. Much depends on the actions of various political bodies around the globe; I find it unlikely that India or China would take steps to develop alternatives, but some western societies might. Which will mean that they'll share those solutions with the USA when the time comes, because otherwise the US military comes aknocking with force. Hopefully the solutions are portable and scalable, otherwise we'll get to live in some interesting times.

As for me personally - don't really care. I've not been vested with political power, so I have no opportunity to help people about this thing. The best I can do is what I do anyway: live nice and prosper. If societal breakdown reaches here, I'll be one fuckin' survivalist bunny you soft city people wouldn't believe. More likely Finland will just scale heavy industry back for a couple of decades, go through a massive rearrangement of agroindustry, and continue on it's merry way. We don't even have oil, so no reason to come kill us.

So my attitude is wait and see - and educate myself in case I some day end up in position of responsibility and have to do something about these matters.

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On 4/6/2005 at 7:18pm, Bob Goat wrote:
RE: Peak Oil

I'm with Eero on this one (except for the fact that I think we already live in interesting times). Wait and see. I started digging through the links on that site and found all sorts of suspect leaps in logic inorder to make facts bend to a certain point of view. That immediately raises red flags to me.

Personally I see it as a real issue that will have to be dealt with in the near-term. However, I don't fell the need to panic.

Keith

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On 4/6/2005 at 7:51pm, Ben Lehman wrote:
RE: Peak Oil

I'm nearly as skeptical about the pessimism as I am about the optimism. My guess is that times will get hard, the massive megalopoli will fall on terrifying economic hard times as the price of gasoline spikes, but there won't be an end of civilization, just a move away from the modern, suburban style of life. I think we may look back on right now as a "golden age of energy" but not that the entireity of the world society is going to collapse.

But

My father is an energy researcher (hydrogen fuel cells) and pretty well connected in the field. HE is enormously pessimistic about the energy future of the US. Like, way more than most people. Probably way more than that site. And he knows more about the issue than I do. Probably than all of us on this forum combined, unless there is another person who has devoted his or her life to the study of energy resources engineering around.

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On 4/6/2005 at 8:01pm, Valamir wrote:
RE: Peak Oil

People have been talking about running out of oil for 30+ years.

Fact is far from running out we have more today than we did in the 70s with more being found all the time.

Technology improves and we can now extract more oil from wells that used to be considered dry. We can take oil out of places that we couldn't ever even reach before. While its true that no new Oil Refineries have been built in the US since 1976, the efficiency improvements that have gone into place means that those same refineries are able to produce much more useable product from a barrel of crude. So not only has the number of barrels of crude increased, the amount of energy we can extract per barrel has increased.

When you look at the VAST reserves still in places like Iraq and Russia and realize those places are still using 1970s era technology...and then extrapolate how large their reserves might actually be if they were exploring, and drilling using modern techniques...and refining using modern techniques...

No friends. We will not see an "Oil Shortage" of civilization threatening proportion in our life times, or our childrens (for those that have 'em). Life will go on...big business will continue to use oil as long as its cost effective to do so. They will bring online alternative energy sources at the rate required (after some lag) to offset any unbearable price increase.

Oil shortage is hooey...

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On 4/6/2005 at 8:08pm, Andy Kitkowski wrote:
RE: Peak Oil

Yeah, I saw that interview on the Daily Show, too: Basically every time a shortage in "usable" oil is spotted, technology improves to the point where a huge source of oil, previously untappable, becomes tappable and refinable. The next oil on the horizon is called, IIRC, "sand oil", which apparently there is a HUGE supply of in N America. They can't refine it yet, but they're working on it...

That was an interesting point of view. Dunno if it'll hold, but again: Interesting times.

Plus, I've got fingerless leather gloves and mismatched football pads in my closed anyway- If the oil wars come and go, I'll be there alongside Mad Max.

-Andy

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On 4/6/2005 at 8:09pm, Valamir wrote:
RE: Peak Oil

Ben Lehman wrote: I'm nearly as skeptical about the pessimism as I am about the optimism. My guess is that times will get hard, the massive megalopoli will fall on terrifying economic hard times as the price of gasoline spikes, but there won't be an end of civilization, just a move away from the modern, suburban style of life. I think we may look back on right now as a "golden age of energy" but not that the entireity of the world society is going to collapse.


Absolutely, lifestyles may well change.

The network of roads and highways built in depression era America combined with cheap energy, cheap cars, and the post WWII prosperity led to the suburbanization of the country. Could traffic congestion, higher energy prices, concern with commuter polution, and efforts by municipalities to revitalize down town areas lead to a re-urbanization of American cities? Certainly within the realm of possibility. Or could the development of new wireless technologies and ever increasing internet band width lead to a major trend towards telecommuting? Which could allow Americans to avoid the traffic and energy costs without having to move back to urban areas. Lots of possibilities.

Lifestyles change and adapt to conditions. As long as capital is free to flow to where its needed to finance that adaption life goes on.

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On 4/6/2005 at 8:13pm, Ben Lehman wrote:
RE: Peak Oil

Valamir wrote: As long as capital is free to flow to where its needed to finance that adaption life goes on.


BL> You make that sound simple, or easy. Capital flows freely when people live well. "When people live well, people live well" is a bit of a tautology.

In order to keep capital freely flowing in the future, we need to start looking into non-oil solutions soon. Because exponential demand means that, no matter if the entire earth is made out of oil, we're going to run out with 2-3 generations. A society interested in the next quarterly report will crash and burn when that happens.

yrs--
--Ben

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On 4/6/2005 at 8:18pm, Bob Goat wrote:
RE: Peak Oil

Valamir wrote: Or could the development of new wireless technologies and ever increasing internet band width lead to a major trend towards telecommuting? Which could allow Americans to avoid the traffic and energy costs without having to move back to urban areas. Lots of possibilities.

Lifestyles change and adapt to conditions. As long as capital is free to flow to where its needed to finance that adaption life goes on.


Telecommuting still uses oil. Food transport uses oil (when was the last time you ait something grown and processed locally). Fuck, everything uses oil. Plastics, heat, electricity. Telecommuting isn't a solution for dwindling supplies.

Capital flows on a river of oil. When that river becomes a stream, that capital stops moving the way it did.

Keith

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On 4/6/2005 at 8:23pm, kenjib wrote:
RE: Peak Oil

There are a couple of folks on dailykos that have been giving very informed analysis of peak oil from a progressive viewpoint over the last few months:

http://www.dailykos.com/user/Stirling%20Newberry
http://www.dailykos.com/user/Jerome%20a%20Paris

I think that it is pretty clear that oil supplies will not be able to keep up with rapidly accellerating demand in the near future, even factoring in attempts to utilize difficult to extract reserves (some of which, like shale and sand bound oil take more energy to extract than they produce). The oil companies know this today as do many officials of various governments (definitely including the U.S. White House). While Ralph points toward the improvements that have been made in the recent past, investment by oil companies in new technology and exploration has actually been rapidly grinding to a halt. They know that it won't be profitable and they are maximizing their profit potential accordingly.

How this will play out is much more tricky though, and here is where I think the Peak Oil predictions in those web pages are entirely speculative. The problem is that there are several other issues that could be coming up soon to dramatically change the playing field to the point of making predictions now highly suspect. The rise in assymetric warfare, the potential for a reinvigorated nuclear arms race (except now proliferating more quickly into a larger number of less stable nations), the dramatical accelleration of imbalance in wealth and ownership, global warming now beginning to show signs of practical and immediate impact on our lives, and the potential impending collapse of the U.S. dollar that holds up the world economy, are just a few examples. Then there are the very dramatic issues that could show up suddenly and almost without warning yet also have a huge impact, such as the unification of the Islamic world under a centralized political entity, a constitutional crisis and the collapse of democracy in the U.S. caused by either fraud in the electoral process or a hasty fear-filled reaction to another major terrorist attack, a dramatic realignment of the world order based on the shockingly rapid disintegration of the U.S.' status as benign post-WWII world hegemon, or the rapid emergence of a new and unexpected energy source like cold fusion.

All of these things and countless more have the potential to emerge as major issues in the near future, along with peak oil, and the interaction between these various forces are very volatile and unpredictable. Any one of them could rise to enough of a crisis level that something like peak oil would become totally eclipsed or at the very least play out from within a very different political/economic frame. Any one of them could also simply never really become a problem.

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On 4/6/2005 at 8:27pm, Vaxalon wrote:
RE: Peak Oil

I'm of the opinion that the rising cost of oil will drive the development of replacements. Cleaning up coal and nuclear, renewables, etc.

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On 4/6/2005 at 8:29pm, Ben Lehman wrote:
RE: Peak Oil

Vaxalon wrote: I'm of the opinion that the rising cost of oil will drive the development of replacements. Cleaning up coal and nuclear, renewables, etc.


BL> You are a man of great faith. I admire that even as I think it is wildly incorrect.

yrs--
--Ben

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On 4/6/2005 at 8:31pm, Vaxalon wrote:
RE: Peak Oil

That's not to say that there won't be huge economic displacements while that happens.

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On 4/6/2005 at 8:58pm, Walt Freitag wrote:
RE: Peak Oil

I'm the one who mentioned the issue (on the Get It Out Of Your System thread). I expressed the worst-case scenario purely for amusement value. I believe that the problem is real but the predictions of its effects are exaggerated.

It's always easier to predict, and proclaim, "total collapse" than it is to think through the complexities of what is actually likely happen, taking into account that humans do stuff to adapt to changes. This is a failure of imagination. It reminds me of all those nuclear-holocaust stories that conveniently assumed an eventual 100% death rate, because even a 1% survival rate would leave an enormous number of people who would then, y'know, do stuff, and who knows what?

But, things are going to change. I can't walk through a suburb at nighttime and look at the decorative outdoor lighting illuminating trees and walkways without thinking, "Do these people have any ideea how hard you have to pedal a stationary bike to generate enough power to keep even one of those bulbs lit?"

The key to predicting the changes, I believe, is to examine current uses of energy in terms of labor actually saved.

the peak oil site wrote: A single gallon of gasoline contains the energy-equivalent of 500 hours of human labor... It only takes one gallon of gasoline to propel a three-ton SUV 10 miles in 10 minutes. How long would it take you to push the three ton SUV 10 miles?


An irrelevant question. It would take me one hour to bicycle the 10 miles. (Maybe less, if I no longer have to worry about dodging speeding three-ton SUVs!) Thus that particular one gallon of gasoline, as it was actually used, yielded only the functional equivalent of 1 hour of my labor, not 500. Which means (1) the SUV has a very high fuel-to-benefit ratio which makes it a prime candidate for it to be vastly reduced in usage, as we all already knew; and (2) if that particular gallon of gasoline were unavailable, the consequences would be 500-fold less severe than stated.

The implication that without cheap oil, everything suddenly requires 500 times as much labor, depends on the assumption that if gasoline were unavailable I would instead push my SUV, and many many other assumptions like it. Which is clearly absurd. It's a distorted picture that arises when you take current life, remove most of the energy supply, and change nothing else. It kind of reminds me of a TV commercial I've seen for an automatic garage door opener with a battery backup feature, depicting the plight of a family trapped in their car in their own fucking driveway because of a power failure that prevents their garage door opener from working!

One wonders whether the authors have ever been poor enough to be unable to afford to drive cars or to heat their homes as comfortably as they'd like to. If not, it may be understandable that they'd imagine life coming to a halt under such dire circumstances. I, for one, know otherwise.

Statistics like "making a computer requires X amount of fuel and Y amount of fresh water" are false. The falsehood is in the word "requires." Computer manufacturerers currently use that much water and fuel because it's most cost-effective to do so. Manuacturing is an optimizing game. If using twice as much fuel would reduce the total manufacturing costs enough to offset the cost of the fuel plus save an additional ten cents, the manufacturers would do it. Let's suppose they've done that already, reducing the unit manufacturing costs by ten cents while doubling its fuel requirements. What's going to happen when the cost of the additional fuel rises by eleven cents per computer manufactured? Suddenly they'll go back to using half as much fuel, and the cost per unit will go back up by twenty-one cents (ten cents because the ten cent savings previously achieved go away, and eleven cents because of the increased cost of the portion of the fuel they're still using).

On the other side of the coin, there are some uses of energy where the energy equivalent of a few gallons of gasoline would save, not a mere few hundred hours of labor, but years or lifetimes. Chainsaws, computers, and telecommunications are good examples. Using scarce expensive fuel or limited alternative energy sources for such purposes will continue to make economic sense. Hence we will still have chainsaws, computers, and data networks. And trains, and probably busses, and some (but not all) farm machinery.

It's interesting to speculate on what life looks like when you mix present and near-future technology with limited energy. We won't stop making microfiber because warm clothing (and/or heated clothing) is more energy efficient than heating houses to near 70 degrees F. Electronic systems that darken any part of a video screen that your eyes are not directed toward at that moment become worthwhile. Your washing machine might have to wait for a sunny afternoon, or a breeze, before starting its load. Nonperishable goods might be moved by fleets of low-speed robotic trucks powered by the heat collected by the road surface, or semi-robotic ships powered by a combination of water temperature gradients and sails.

Alas, all that tech might not prevent hot baths and showers from becoming infrequent luxuries. Genetically engineered anti-BO body bacteria might be a good business opportunity for a biotech startup.

- Walt

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On 4/6/2005 at 9:07pm, Bob Goat wrote:
RE: Peak Oil

Walt Freitag wrote: Alas, all that tech might not prevent hot baths and showers from becoming infrequent luxuries. Genetically engineered anti-BO body bacteria might be a good business opportunity for a biotech startup.


Man I would kill for that right now. I went running today at lunch and boy howdy!

Keith

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On 4/6/2005 at 9:55pm, Harlequin wrote:
RE: Peak Oil

Actually that last ain't a risk, IMO. One of the best and most efficient solar 'power' apps being sold now is simply water heaters; the glorified version of a set of water pipes painted black to put on your roof. Saves heating that amount of water using gas or electric. I've considered it, seeing as I have this huge roof which all looks straight south... but insolation where I live sucks.

So of the things you're likely to have to trade off... hot water is low on the list. Depending on where you live, of course. But otherwise I think Walt's bang on the money; substitute some other luxury-use instead.

As a note, though, things like the fresh water requirements for making computers are not going to be able to go down very far. I work in a related industry, and it costs a huge amount of ultrapure water (DI water, so pure that drinking it could destroy your intestines by reverse osmosis), which is energy+water, to do semiconductor processing. There's not a lot of room for resource savings there, I'm afraid... you rapidly hit a tradeoff where less waste purifying the stuff means more waste as yields go down.

For my part, I've simply been making home improvements (when otherwise warranted) with the assumption that the price of oil will at least triple during the lifetime of the appliance. This seems to have worked well so far. It's a long shot from going off-grid, but if it has a hope of paying for itself in today's gas prices, I say it's actually a bargain.

- Eric

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On 4/6/2005 at 10:31pm, Valamir wrote:
RE: Peak Oil

Ben Lehman wrote:
Vaxalon wrote: I'm of the opinion that the rising cost of oil will drive the development of replacements. Cleaning up coal and nuclear, renewables, etc.


BL> You are a man of great faith. I admire that even as I think it is wildly incorrect.

yrs--
--Ben


But its happening already. There are folks looking at ways to make coal burn cleaner...coal...there's still plenty of that.

There's a big lobby for increased Ethanol use, and for the first time ever a gallon of ethanol is now significantly cheaper than a gallon of gasoline. New ethanol plants are being built by the dozen and detroit is already producing cars that can be retrofitted in the future to burn 85% ethanol mixes if that were necessary. They aren't geared to do that today because the technology adds several thousand to the price of a car and its still cheaper to run on gasoline. But if at some point in the future the price of oil becomes such that that's not the case, the technology already exists to reduce the amount of gasoline burned on our nations highways by a tremendous amount. There's absolutely no reason to do that as long as oil is cheaper.

Its not as if one day all of the wells in the world will stop pumping and the next day everyone will wonder what to do.

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On 4/6/2005 at 10:50pm, Ben Lehman wrote:
RE: Peak Oil

Valamir wrote:
Its not as if one day all of the wells in the world will stop pumping and the next day everyone will wonder what to do.


BL> Boy, Ralph. I just love it when you argue against things that no one has said. That's just awesome. It's the best.

I'm skeptical of everyone. I am skeptical of the people who say that society is going to fall apart, because societies tend to be pretty robust. I'm skeptical of free-market fundamentalists who apparently have never seen an exponential growth function in their entire lives. And I'm skeptical as hell about people who can't be bothered to listen to what others are saying.

I don't care if you find out how to burn coal so it smells like daisies. You cannot, and will not, keep up with exponential growth.

Let us assume, briefly, that the use of energy is going to continue on its exponential curve, which is reasonable, because that's exactly what it has done for the entire course of humans as a species and at least some of life before that. In fact, I wouldn't be surprised if it goes back to the dawn of life.

Let us assume that the entire earth, not just the biosphere, but the entire globe, is through and through constituted entirely of oil.

How long until we tap that source dry?

160 years.

That is not a lot of time. And that's a serious best-case-scenario.

Now, our energy sources are presently located entirely within the biosphere, a tiny shell around the earth, thinner than the skin on an apple. That's coal, natural gas, petroleum. Anything. So we've got a lot less time that 160 years.

This is a problem.

Now, one or both of the following things is going to happen. Because I'm an optimist, I imagine it will be a little of both.

1) The exponential will break. That means dramatic changes around the way that humans use energy or a massive die-off or both. Die-off means war, famine, oppression, riots, starvation, and general social collapse.

2) We will need to discover new, hopefully renewable, sources of energy to slake our thirst. This is building functional nuclear fission, some development in fusion, solar, wind, hydro, tidal and geothermal.

Right now, we're at a hunter-gatherer stage of civilization, in terms of energy. It can't last forever. If people are preparing now to try and change the way we use energy and the way we get it, in order to avoid more traumatic problems, then more power to them. Let's break the exponential gently. If we can manage it, things will turn out much better for all involved.

But this is all beyond the realm of quarterly reports, or even annuals, so I wouldn't expect any publically traded corporation to take a serious interest in the problem. You act like a die-off can't happen, like economics will fix everything. Die-offs and social collapses have happened all throughout human history. Sometimes the most economically reasonable choice is to hole up in a compound with a bunch of guns. No reason to think it wouldn't happen again.

yrs--
--Ben

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On 4/6/2005 at 11:17pm, Christopher Weeks wrote:
RE: Peak Oil

Ben Lehman wrote: Now, our energy sources are presently located entirely within the biosphere, a tiny shell around the earth, thinner than the skin on an apple. That's coal, natural gas, petroleum. Anything. So we've got a lot less time that 160 years.


Is this claim inclusive of the area theorized to be producing petroleum by abiotic organisms? I mean, obviously "biosphere" includes all life, but there might be life much deeper than is traditionally meant by that. I haven't decided yet if the Deep Hot Biosphere folks are onto something (and I probably won't until the theory is mainstreamed) but if so, the equation changes some.

Not that I disagree with your basic premis about exponential demand growth.

More troubling, for the near term is that there are maybe two billion people on Earth who haven't been using much oil like we all have who will be wanting to right about now.

Ralph, did you look at the link I started this with? I'd be interested to hear comments specifically on the economic parts since those are the most muddled to me. It's easier to be afraid of a global depression because of complexities of currency than the tech since I too think that if our infrastructure stays good and we make a concerted effort, we'll probably manage the change OK.

Chris

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On 4/7/2005 at 12:19am, Valamir wrote:
RE: Peak Oil

Ralph, did you look at the link I started this with? I'd be interested to hear comments specifically on the economic parts since those are the most muddled to me. It's easier to be afraid of a global depression because of complexities of currency than the tech since I too think that if our infrastructure stays good and we make a concerted effort, we'll probably manage the change OK.


The whole site is muddled. The entire premise of it is absurd. It sounds really scary...but then look at the source for his data "The association for the Study of Peak Oil". Gee...that's convenient, what a surprise that "data" collected/massaged/invented by the Peak Oil nuts supports the Peak Oil story.

Give it five years...the exact same site will be there, but all the dates will have changed so that the end is always just around the corner. I mean as soon as you get to the "why isn't the mainsteam media covering this" section you have proof positive that the guys a crackpot. Because they'd start a panic? What...every news organization in the world got together and agreed to not cover this story...everybody EXCEPT these guys...? The very thought is ludicrous. A media that loves to take pot shots at Bush would be all over a story like this...it would be the Big Oil Cover Up of the Century.

But no...only this small band of intrepid truth seekers dare to expose the danger to an unsuspecting public.

I mean, the site sounds convincing, he's done a decent job of not appearing like a hysterical lunatic...but Skully and Mulder investigated more plausible scenarios than this. Its just repackaged "Repent For the End of the World is at Hand". People stopped believing in comets and religious apocalypse...so now its energy...there's always been doom sayers out there.

But to answer your question on the economics a little bit...the fallacy of the guy's position becomes pretty clear when he starts talking about the effect on currency.

See the possibility of Oil being denomonated in Euros instead of dollars is another ripe source for doom prophets. The scenario basically goes like this: The world needs oil, oil is priced in dollars, so the world needs dollars to buy oil. The demand for dollars to buy oil keeps the dollar as being a strong reliable currency. If oil is no longer priced in dollars, demand will fall, the dollar will collapse, America will lose billions and oversees investors will yank money out of American markets in favor of markets priced in the now dominant Euro.

The truth is that there will be some effects as currency pricing works itself out, and Russia has already started (or will soon) pricing its oil in Euros. There will be some level of economic impact. But then the doom and gloomers get a hold of it and a little bit of truth...a factor that analysts can take into account when making projections becomes a crisis of epic proportion.

So this guy, so desperate to make his case, throws that little crisis in on top of everything else. I mean if he were right. And oil were to suddenly become a huge crisis nearly overnight as he suggests...oh my god the food trucks can't even make it to Wal Mart we're all gonna starve...it'll be mass hysteria...then a) what the fuck difference will it make what the currency does...that's like the passengers on their way to lifeboats on the Titanic being worried that the galley's run out of caviar. and b) how much sense does the world switching to Euro pricing make in such a scenario...like the US is the only country that uses oil. Like while we're overhere reduced to eating our pets everything will be peachy keen in Europe? If the worst were to happen, it would happen over there too...which means repricing in Euros would be pointless because their economy wouldn't be in any better shape than ours.

But he couldn't resist throwing another doom scenario onto the pile.

Really, and I don't mean to offend anyone who might be worried, but its utter nonsense.

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