Territorial borders in the Arctic Ocean, showing the United States, Canada, Russia, and Greenland. University of Durham, UN, Marum.

By Richard Heinberg
10 January 2012 From competition among hunter-gatherers for wild game to imperialist wars over precious minerals, resource wars have been fought throughout history; today, however, the competition appears set to enter a new—and perhaps unprecedented—phase. As natural resources deplete, and as the Earth’s climate becomes less stable, the world’s nations will likely compete ever more desperately for access to fossil fuels, minerals, agricultural land, and water. Nations need increasing amounts of energy and raw materials to produce economic growth, but the costs of supplying new increments of energy and materials are burgeoning. In many cases, lower-quality resources with high extraction costs are all that remain. Securing access to these resources often requires military expenditures as well. Meanwhile the struggle for the control of resources is re-aligning political power balances throughout the world. This game of resource “musical chairs” could well bring about conflict and privation on a scale never seen before in world history. Only a decisive policy shift toward resource conservation, climate change mitigation, and economic cooperation seems likely to produce a different outcome. The United States—the world’s current economic and military superpower— entered the industrial era with a nearly unparalleled endowment of natural resources that included an abundance not only of forests, water, topsoil, and minerals, but also of oil, coal, and natural gas. Like all other nations, the U.S. has approached resource extraction using the low-hanging fruit principle. Today its giant onshore reservoirs of conventional oil are largely depleted, and the nation’s total oil production is down by over 40 percent from its peak in 1970—despite huge discoveries in Alaska and the Gulf of Mexico. Its total coal resources are vast, but rates of extraction probably cannot be increased significantly and will likely begin to decline within the next decade or two. Unconventional hydrocarbon resources (such as natural gas liberated by the hydrofracking of shale deposits) are beginning to be commercialized, but come with high investment costs and worrisome environmental risks. U.S. extraction rates for many minerals have been declining for years or decades, and currently the nation imports 93 percent of its antimony, 100 percent of its bauxite (for aluminum), 31 percent of its copper, 99 percent of its gallium, 100 percent of its indium, over half its lithium, and 100 percent of its rare earth minerals.[1] America has much to lose from any substantial reshuffling of global alliances and resource flows. The nation’s leaders continue to play the game of geopolitics by 20th century rules: they are still obsessed with the Carter Doctrine and focused on petroleum as the world’s foremost resource prize (a situation largely necessitated by the country’s continuing overwhelming dependence on oil imports, due in turn to a series of short-sighted political decisions stretching back at least to the 1970s). The ongoing war in Afghanistan exemplifies U.S. inertia: most geostrategic experts agree that there is little to be gained from the conflict, but withdrawal of forces is politically unfeasible.
 
The United States maintains a globe-spanning network of over 750 military bases[2] that formerly represented tokens of security to regimes throughout the world—but that now increasingly provoke resentment among the locals. This enormous military machine requires a vast supply system originating with American weapons manufacturers that in turn depend on a prodigious and ever-expanding torrent of funds from the Treasury. Indeed, the nation’s yawning budget deficit largely stems from its trillion-dollar-per-year, first-priority commitment to maintain its military-industrial complex. The U.S. currently engages in “special operations” in 120 countries[3], using elite commando units skilled in assassination, counterterrorist raids, foreign troop training, and intelligence gathering. These teams can be deployed to support U.S. geopolitical interests in a variety of ways, including influencing elections or supporting factions within revolutions. The U.S. also maintains the world’s most lavishly funded ($80 billion in 2010) intelligence bureaus, the CIA and NSA, which conduct electronic and human information gathering activities in virtually every country on the planet.[4] Yet despite America’s gargantuan expenditures on intelligence gathering and high-tech weaponry, and its globe-spanning ability to project power and to influence events, its armed forces appear to be stretched to their limits having continuously fielded around 200,000 troops and even larger numbers of support personnel in Iraq and Afghanistan for the past decade, where supply chains are both vulnerable and expensive to maintain. In short, the United States remains an enormously powerful nation militarily, with thousands of nuclear weapons in addition to its unparalleled conventional forces, yet it suffers from declining strategic flexibility. The nation still retains an abundance of natural resources, but its consumption rates of many of those resources have grown to nearly insatiable levels, necessitating growing flows of resource imports from other nations. Meanwhile, its ability to pay for those imports is increasingly in question as its domestic economy shrinks due to financial system volatility, government spending cutbacks, high unemployment, an aging workforce, and shrinking average household net worth. For all of these reasons, the U.S. is widely characterized as “an empire in decline.” […]

Geopolitical implications of “Peak Everything”