If you told Exxon or Lukoil that, in order to avoid wrecking the climate, they couldn’t pump out their reserves, the value of their companies would plummet. John Fullerton, a former managing director at JP Morgan who now runs the Capital Institute, calculates that at today’s market value, those 2,795 gigatons of carbon emissions are worth about $27 trillion. Which is to say, if you paid attention to the scientists and kept 80 percent of it underground, you’d be writing off $20 trillion in assets. The numbers aren’t exact, of course, but that carbon bubble makes the housing bubble look small by comparison. It won’t necessarily burst – we might well burn all that carbon, in which case investors will do fine. But if we do, the planet will crater. You can have a healthy fossil-fuel balance sheet, or a relatively healthy planet – but now that we know the numbers, it looks like you can’t have both. Do the math: 2,795 is five times 565. That’s how the story ends.
So far, as I said at the start, environmental efforts to tackle global warming have failed. The planet’s emissions of carbon dioxide continue to soar, especially as developing countries emulate (and supplant) the industries of the West. Even in rich countries, small reductions in emissions offer no sign of the real break with the status quo we’d need to upend the iron logic of these three numbers. Germany is one of the only big countries that has actually tried hard to change its energy mix; on one sunny Saturday in late May, that northern-latitude nation generated nearly half its power from solar panels within its borders. That’s a small miracle – and it demonstrates that we have the technology to solve our problems. But we lack the will. So far, Germany’s the exception; the rule is ever more carbon.
This record of failure means we know a lot about what strategies don’t work. Green groups, for instance, have spent a lot of time trying to change individual lifestyles: the iconic twisty light bulb has been installed by the millions, but so have a new generation of energy-sucking flatscreen TVs. Most of us are fundamentally ambivalent about going green: We like cheap flights to warm places, and we’re certainly not going to give them up if everyone else is still taking them. Since all of us are in some way the beneficiaries of cheap fossil fuel, tackling climate change has been like trying to build a movement against yourself – it’s as if the gay-rights movement had to be constructed entirely from evangelical preachers, or the abolition movement from slaveholders.
People perceive – correctly – that their individual actions will not make a decisive difference in the atmospheric concentration of CO2; by 2010, a poll found that “while recycling is widespread in America and 73 percent of those polled are paying bills online in order to save paper,” only four percent had reduced their utility use and only three percent had purchased hybrid cars. Given a hundred years, you could conceivably change lifestyles enough to matter – but time is precisely what we lack.
A more efficient method, of course, would be to work through the political system, and environmentalists have tried that, too, with the same limited success. They’ve patiently lobbied leaders, trying to convince them of our peril and assuming that politicians would heed the warnings. Sometimes it has seemed to work. Barack Obama, for instance, campaigned more aggressively about climate change than any president before him – the night he won the nomination, he told supporters that his election would mark the moment “the rise of the oceans began to slow and the planet began to heal.” And he has achieved one significant change: a steady increase in the fuel efficiency mandated for automobiles. It’s the kind of measure, adopted a quarter-century ago, that would have helped enormously. But in light of the numbers I’ve just described, it’s obviously a very small start indeed.
At this point, effective action would require actually keeping most of the carbon the fossil-fuel industry wants to burn safely in the soil, not just changing slightly the speed at which it’s burned. And there the president, apparently haunted by the still-echoing cry of “Drill, baby, drill,” has gone out of his way to frack and mine. His secretary of interior, for instance, opened up a huge swath of the Powder River Basin in Wyoming for coal extraction: The total basin contains some 67.5 gigatons worth of carbon (or more than 10 percent of the available atmospheric space). He’s doing the same thing with Arctic and offshore drilling; in fact, as he explained on the stump in March, “You have my word that we will keep drilling everywhere we can… That’s a commitment that I make.” The next day, in a yard full of oil pipe in Cushing, Oklahoma, the president promised to work on wind and solar energy but, at the same time, to speed up fossil-fuel development: “Producing more oil and gas here at home has been, and will continue to be, a critical part of an all-of-the-above energy strategy.” That is, he’s committed to finding even more stock to add to the 2,795-gigaton inventory of unburned carbon.
Sometimes the irony is almost Borat-scale obvious: In early June, Secretary of State Hillary Clinton traveled on a Norwegian research trawler to see firsthand the growing damage from climate change. “Many of the predictions about warming in the Arctic are being surpassed by the actual data,” she said, describing the sight as “sobering.” But the discussions she traveled to Scandinavia to have with other foreign ministers were mostly about how to make sure Western nations get their share of the estimated $9 trillion in oil (that’s more than 90 billion barrels, or 37 gigatons of carbon) that will become accessible as the Arctic ice melts. Last month, the Obama administration indicated that it would give Shell permission to start drilling in sections of the Arctic.
Almost every government with deposits of hydrocarbons straddles the same divide. Canada, for instance, is a liberal democracy renowned for its internationalism – no wonder, then, that it signed on to the Kyoto treaty, promising to cut its carbon emissions substantially by 2012. But the rising price of oil suddenly made the tar sands of Alberta economically attractive – and since, as NASA climatologist James Hansen pointed out in May, they contain as much as 240 gigatons of carbon (or almost half of the available space if we take the 565 limit seriously), that meant Canada’s commitment to Kyoto was nonsense. In December, the Canadian government withdrew from the treaty before it faced fines for failing to meet its commitments.
The same kind of hypocrisy applies across the ideological board: In his speech to the Copenhagen conference, Venezuela’s Hugo Chavez quoted Rosa Luxemburg, Jean-Jacques Rousseau and “Christ the Redeemer,” insisting that “climate change is undoubtedly the most devastating environmental problem of this century.” But the next spring, in the Simon Bolivar Hall of the state-run oil company, he signed an agreement with a consortium of international players to develop the vast Orinoco tar sands as “the most significant engine for a comprehensive development of the entire territory and Venezuelan population.” The Orinoco deposits are larger than Alberta’s – taken together, they’d fill up the whole available atmospheric space.
So: the paths we have tried to tackle global warming have so far produced only gradual, halting shifts. A rapid, transformative change would require building a movement, and movements require enemies. As John F. Kennedy put it, “The civil rights movement should thank God for Bull Connor. He’s helped it as much as Abraham Lincoln.” And enemies are what climate change has lacked.
But what all these climate numbers make painfully, usefully clear is that the planet does indeed have an enemy – one far more committed to action than governments or individuals. Given this hard math, we need to view the fossil-fuel industry in a new light. It has become a rogue industry, reckless like no other force on Earth. It is Public Enemy Number One to the survival of our planetary civilization. “Lots of companies do rotten things in the course of their business – pay terrible wages, make people work in sweatshops – and we pressure them to change those practices,” says veteran anti-corporate leader Naomi Klein, who is at work on a book about the climate crisis. “But these numbers make clear that with the fossil-fuel industry, wrecking the planet is their business model. It’s what they do.”
According to the Carbon Tracker report, if Exxon burns its current reserves, it would use up more than seven percent of the available atmospheric space between us and the risk of two degrees. BP is just behind, followed by the Russian firm Gazprom, then Chevron, ConocoPhillips and Shell, each of which would fill between three and four percent. Taken together, just these six firms, of the 200 listed in the Carbon Tracker report, would use up more than a quarter of the remaining two-degree budget. Severstal, the Russian mining giant, leads the list of coal companies, followed by firms like BHP Billiton and Peabody. The numbers are simply staggering – this industry, and this industry alone, holds the power to change the physics and chemistry of our planet, and they’re planning to use it.
They’re clearly cognizant of global warming – they employ some of the world’s best scientists, after all, and they’re bidding on all those oil leases made possible by the staggering melt of Arctic ice. And yet they relentlessly search for more hydrocarbons – in early March, Exxon CEO Rex Tillerson told Wall Street analysts that the company plans to spend $37 billion a year through 2016 (about $100 million a day) searching for yet more oil and gas.