PEAK OIL: PERMANENT CRISIS CAPITALISM

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Worldwide capitalism has entered a period of permanent crisis due to the phenomenon known as Peak Oil.

This means that global oil production is approaching its maximum or has already reached it. After peak production there will be a year-on-year decline in oil production though demand for oil will still be increasing. This will cause a continuous, year-on-year rise in the market price for oil.

When the imperialists invaded Iraq, the Left knew this was to gain possession of Iraq’s oil. But the Left did not know that behind the invasion was the approaching Peak Oil crisis, one which capitalism has never before had to face.

Even in the Great Economic Depression of the 1930s, capitalism could still rely on abundant supplies of cheap oil. But easily produced conventional oil supplies will soon begin to run out. In fact cheap oil has already run out. In April 2008, oil reached $100 a barrel. Only the fall in demand resulting from economic catastrophe has brought it below this level, though the price remains historically high.

In view of the impending energy crisis, which has in fact already started,^Note we are putting forward the theory of “Permanent Crisis Capitalism”. This means that because oil production has gone into permanent decline, capitalism worldwide has entered a period of permanent crisis that will continue until either the working class takes power or capitalism degenerates into a new global barbarism.

The idea of Peak Oil refers to the moment when worldwide oil production reaches its maximum level, or peak. This is of decisive importance to the world economic system because following peak production there will be a gradual decline in world oil output year by year.

Many writers and theorists believe that global oil production has already reached the peak stage. The consequence for the capitalist system of the increasing scarcity of oil will be catastrophic, because industrial society as presently constituted cannot function without an abundant supply of cheap oil.

We live in a world where everything is dependent on the availability of cheap oil: all forms of transportation including cars, trains, aviation and ships, all industrial farming, all kinds of production processes.

The energy crisis facing capitalism is the first of its kind and therefore poses an unprecedented challenge. Increasing demand for oil in a world where oil production is declining is already leading to rocketing increases in oil prices and threatens economic disaster for capitalism.

We believe that the energy crisis caused by oil depletion will combine with the contradictions of capitalist production, leading to the collapse of the system. The imperialists are aware of the developing crisis, and have attempted to ensure their oil supplies by the invasion of Iraq and other adventures. As the crisis deepens, there is a danger that the ruling capitalist elites will turn to military dictatorship or fascism; but political manoeuvres cannot bring the oil back.

Peak oil means that capitalist civilisation is reaching its end. As this fossil fuel based civilisation disintegrates, society will be faced with the choice between barbarism or socialism.

We welcome your views on the Peak Oil energy crisis debate at peakoil@oneparty.co.uk.

Please visit http://www.oneparty.org.uk/ for details of Communist Party Alliance.