Peak Oil (4)

When finally the sound comes back on, the ex-Colonel of Marines is in mid-flow:

“…But we must take into account the social relations of energy, and value-theory. It is not the finite physical limit of oil that matters right now. It matters what is finite in the context of what is economically essential. Does oil have any perfect substitutes? At this conjuncture, the answer is an unequivocal "no." What is the value of oil in terms of embodied “socially-necessary” labour-time? In other words, can the value of oil rise fast enough for the whole economy to be contained? The answer to that is an unequivocal "yes."

Oil has no perfect substitute. Neither solar cell, nor coal, nor plutonium can run trucks or airplanes. There are theoretical substitutes, but not one shows any promise in the near term of even being developed. It is the lifeblood of the entire global capitalist system, and has been for 100 years. If oil prices go beyond a very operational price of no return, so to speak, the economy will most certainly be contained, very likely to the point of collapse. Imagine the consequences today, for example, if oil prices jumped a mere 50 percent. But if best predictions are correct, and we are entering the era of post-peak production, a steady and accelerating increase in the price of oil is inevitable, and soon.”