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Yesterday I mentioned Peak Oil (read this Big Picture post for a good primer about Peak Oil) so today I suppose it makes sense to start into Peak Water (again, check out this Big Picture post for a good primer).

While there are plenty of economic tangents to take about either issue (or indeed, from most any Peak “X,” where “X” is an oft-used commodity), I want to prompt the mental fermentation process on the following two issues:

1) Life Necessity v. Non-Life Necessity
I have some serious issues with a handful of executives and shareholders raking in the dough as a result of oil supply/demand factors (plus a few other less obvious factors), while the vast majority of the world struggles to deal with resulting price hikes as they consume the end product. That said, and I do not put this out there lightly, if I had to choose between profiting off of oil and profiting off of water, I would 100% support the oil industry.

Water is a basic and critical human necessity (i.e. you will eventually stop functioning — you’ll die, that is — if you lack access to *potable* water for long enough [say a week or two, depending on a large number of factors]). Let me say it again — mankind would cease to exist without sufficient access to potable water (at least until oil can be turned into a “water pill” by Monsanto for $100,000/20 pills — I’m being cheeky, and extremist, but hey…)

Oil is NOT a human necessity (it is, however, arguably a current societal necessity — i.e. required to maintain current standards of living and production). Humans existed for many, many, many centuries without automobiles, petroleum-based pesticides, fleece jackets, and all of the other petroleum offshoots. Oil, once sucked out of the earth, transported, refined/processed/etc., and transported again, produces or feeds and/or becomes things that are not necessities.

So, I hate to say it, but I do think that if forced to choose between making money off oil or water, hand over fist I would push oil. By extension, I think the very few things that are essential for humans to stay alive (water, food, shelter — assumes clean oxygen and a few other things such as sufficient nutritional balance of the food, but this could go on for 200 pages if I don’t focus more high-level) should be available to as many people as possible for the most accessible price possible (completely free would be fantastic, but show me an economic system that can make that happen in reality, long-term, and not just on paper…).

2) Limited Resources, Increasing Consumption
If the above didn’t ruffle your feathers too much and you are still reading, check out the graphic to the right that Barry includes in his Big Picture post (click on the graphic for a larger version — credit: WIRED SCIENCE, Peak Water, PBS, The Big Picture).

Study the, “How much water does it take to make a…” side of the graphic and then tell me honestly if you do not see some startling issues. First and foremost, take the energy available in one orange (62 calories) and plot it against the energy available in one hamburger patty (279 calories) and you get an approximate 1:5 relationship. Now plot the water requirements to produce each item to find that ratio and you get a 1:50 relationship. (Note that this is before you factor in all of the other resources required to produce the orange and burger respectively, from the grass to feed the cows [or the land used to produce the orange tree] all the way down to the processing and packaging of each food item.)

If you are not following me, let me be blunt: As water becomes more precious, diets and consumption habits will most likely need to shift out of pure necessity (note that if water becomes more expensive, so should that patty of hamburger meat, or those designer blue jeans).

And if you are still with me, what are the various ethical implications that are floating out in the ether related to these two issues?

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A conundrum indeed…

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A film about urban sprawl and peak oil might seem a bit off topic for a business ethics and corporate social responsibility blog, but if you see the connection and/or have an interest in either subject, I highly recommend you check out a fantastic documentary, The End of Suburbia.

If you need some help finding the bridge between this blog and the focus of the film, look no further than the endless forced expansion of the consumer’s appetite for more consumption (homes, cars, clothes, decorations, kitchen gadgets, high-tech gadgets, and so much more) by companies in the pursuit of increasing shareholder return. What’s a homebuilder to do when money is pouring in and competitors are continuing to put up ostentatious and resource-binging skyscraper homes (a.k.a. “McMansions”) at a frantic rate 100 miles out from city centers and lining up 0% down ARMs for the self-delusional nouveau-rich (a.k.a. the negative net-worth and heavily debt-laden soon-to-be or currently former middle class), even if they know deep inside that their business plan is not sustainable long-term (say, when the right crop of inflation and credit turmoil pops up…)? Build more houses of course!

Why not? they ask. Their competitor over at ABC CrazyBig Homes is churning them out like cans of tasty and completely nutritious meat on an assembly line earning a fat bonus each period, and watching their company’s stock price skyrocket. Who cares if the system comes crumbling down later as long as I get mine, they rationalize.

In the off chance that you are not paying attention to what is happening in the US right now, and increasingly around the world, the party is over folks. For those of you who have little adjustment to make when living standards and life styles see a reversion to the mean similar to what is likely to happen in the US housing market, I commend you. For those of you who face a much larger delta, I’d get started on making some adjustments right now.

Even if you are not slightly interested, I say bite the bullet and watch it anyway. Here’s an overview of the film to whet your appetite:

“Since World War II North Americans have invested much of their newfound wealth in suburbia. It has promised a sense of space, affordability, family life and upward mobility. As the population of suburban sprawl has exploded in the past 50 years, so too has the suburban way of life become embedded in the American consciousness.

“Suburbia, and all it promises, has become the American Dream.

“But as we enter the 21st century, serious questions are beginning to emerge about the sustainability of this way of life. With brutal honesty and a touch of irony, The End of Suburbia explores the American Way of Life and its prospects as the planet approaches a critical era, as global demand for fossil fuels begins to outstrip supply. World Oil Peak and the inevitable decline of fossil fuels are upon us now, some scientists and policy makers argue in this documentary.

“The consequences of inaction in the face of this global crisis are enormous. What does Oil Peak mean for North America? As energy prices skyrocket in the coming years, how will the populations of suburbia react to the collapse of their dream? Are today’s suburbs destined to become the slums of tomorrow? And what can be done NOW, individually and collectively, to avoid The End of Suburbia?

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