The History Of Oil, Protest And The Economy | PopularResistance.Org - 0 views
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petroleum social movements climate change mitchell
shared by Arabica Robusta on 18 Apr 15
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Because production of energy now occurred a long way from where it was consumed, it was more difficult for workers to coordinate actions along the energy chain. Oil also occurs in a fluid form so it’s much easier for managers to supervise or replace workers (as in the recent U.S. refinery strikes), and easier to shift supply routes so that if one area is on strike you can use a different source of supply.
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Something really extraordinary happened in the mid-twentieth century, as we shifted to an oil-based energy system. Economists began focusing not on well-being but on national income, calculated in the narrow terms of GDP. And the growth of GDP was imagined as something that could go on forever. This coincided with a period when fossil fuels, and oil in particular, became extraordinarily abundant. There was a sense that you no longer had to account for the cost of energy, a cost that had previously made limitless growth unthinkable. So oil enabled not only a new form of accounting, but really a new form of failing to account for what you are doing.
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With the rise of oil, it was much harder for workers to interrupt the flow of energy. But that’s not the end of the story of sabotage. The power of sabotage switched hands to the oil companies. See, originally most business firms only had to concern themselves with rivals in the same region, because it was too expensive to transport goods between particular areas of dominance. But oil was so light and easy to transport that competition was a global threat. Oil companies realized that their profits would only continue if they were able to organize sabotage power on a global level, to restrict supply and eliminate rivals. By the 1920’s, a handful of companies like Exxon Mobil (as they are known today) and Shell had taken control of every major site of oil production in the world, outside the U.S. and the Soviet Union, and they maintained that dominance for about half a century. They used this control to strategically limit the production of oil for the purpose of keeping profits high.
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This sabotage takes economic forms as well. Another way of stating my argument about oil companies is to say that these were not companies set up to produce oil, they were companies set up to produce a return on investment. We should think of Exxon, BP, Shell etc. as financial machines, not energy companies. While it may seem like economic life today is dominated by the power of financial firms, the truth is that the history of energy has always been a history of finance.
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Once you realize an oil company functions not to deliver oil but to structure the future as a system of financial flows, then the points of sabotage shift a little bit. This is why I think projects like Carbon Tracker’s “Unburnable Carbon” are really important. Carbon Tracker shows that the share price of fossil fuel companies is a bubble, since it is based on a projected use of energy that is incompatible with keeping the planet livable. This campaign works precisely at the point at which the corporation understood as a set of financial flows is vulnerable—the calculability of future revenue.