Wednesday, December 28, 2005

"Oil: The High Cost of Low Price," or the world according to the film Syriana.

“Corruption keeps us safe and warm … corruption is why we win.”

On Sunday evening, the Confidential family attended a Baxter Avenue Cinemas screening of “Oil: The High Cost of Low Price,” otherwise known to movie goers nationwide as “Syriana,” yet another highly recommended film with George Clooney’s name attached to it.

See: Drop everything you're doing and go see “Good Night, and Good Luck.

If you’ve seen the “Syriana” trailer, you know that the fast-paced and thought-provoking thriller features a large and talented cast, including Clooney, who produces the film along with Steven Soderbergh. It is directed and written by Stephen Gaghan of the “Traffic” award-winning screenplay fame.

Clooney and Soderbergh (who directed “Traffic”) generally are deflecting all due acclaim for “Syriana” to Gaghan, who like Clooney is a Kentuckian bearing little resemblance to Mitch McConnell. Gaghan's efforts are indeed worthy of high praise, both from polemical and filmmaking standpoints.

In this brief excerpt from an interview at http://www.cinematical.com/, Gaghan discusses a quote that he insists has been mistakenly attributed to him by Soderbergh, to the effect that “oil is the world’s crack addiction.”

… ‘Oil is crack?’ Who said that? Oh. I was mis-quoted. Well, what I was talking about really was the dealer-user paradigm; and what I mean by that is not some fancy phrase, because I’d had experience around drug dealers during my voluminous 19-year research for Traffic ...

... and I’d noticed some times when you could be in somebody’s house, and it could be a totally genteel type of drug dealer, or it could be a more gangster-y drug dealer, but whatever – there was often something similar about them, which is they have children, and the children are staring at violent television, cartoons or some shit, and they’re eating sugar-coated breakfast cereal and they look malnourished, there’s a handgun on the table – there’s always a handgun on the table, like on a coffee table or a table, and it’s so unsettling, and the TV’s going and you’re looking at the handgun and the children are over there and you want to say, 'I’ve got this great parenting book by Mary Hartsell and I just want to give it to you, because I think you could use some advice on parenting. …' But you don’t say that – because that would be breaking an unwritten code. And the unwritten code is the guy has something you need, and you really need it, and you’re not going to fucking bum him out.

… In America, in the West, we have this producer-consumer nation paradigm, and it works like this: 50 years of sort of a bi-lateral, multi-lateral maintenance of the status quo in the Middle East, which involved turning a bad eye to some really bad parenting. Whether it was a repressive regime, extermination of the Kurds, Saudi Arabia with women shrouded, walking 10 feet behind the men, etcetera, etcetera. But we weren’t going to say anything. Why? Because the producer nation, the dealer, has the shit we need – they got the good shit, and we don’t want to knock over the apple cart. To mix the metaphor. So that’s what I was thinking about, and I think it’s really apt. ...

Read the rest here.

We try to keep these considerations simple, and accordingly, Syriana follows the late autumnal Wal-Mart documentary film and previously digested books like “Fast Food Nation” and David Kessler's tobacco expose in the inter-related sense that they all demand that we look into the mirror, irrespective of discomfort, and consider the actual cost that goes into the final price of facets of life otherwise taken for granted at a misleading face value.

When it comes to calculating costs, everything’s intimately connected.

What do deregulated and dangerous slaughterhouses, now back in vogue a century after being exposed by Upton Sinclair, have to do with the price of the hamburgers at Rally's?

What does the calculated exploitation of a hostage local labor force have to do with the price of a sweater at Wal-Mart?

What do geopolitical strong-arm tactics that we claim to abhor – and periodically overthrow dictators for committing without our permission – have to do with the continued availability of petroleum from the Muslim world?

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On December 19, a letter by Edwin A. Hurt of Clarksville was published in the Courier-Journal. Apparently unsettled by recent grassroots campaigns against Wal-Mart, this frequent, plaintive voice from the right-field bleachers sought to provide readers with an economics lesson, writing:

A few weeks ago, I went shopping for some new jeans. The first store I visited had the jeans I wanted. Price? $21.99 per pair. So I decided to try Wal-Mart. There I found the identical jeans. Price? $14.97 per pair. Yes, I bought my jeans at Wal-Mart. In my budget-saving $14 is a good thing.

If people were less ignorant about economics, the hue and cry over Wal-Mart would quickly subside. Our price-coordinated economy rewards efficiency and punishes inefficiency. It should be obvious that it is more efficient to deliver 10,000 pairs of jeans to Wal-Mart than it is to deliver 1,000 pairs to 10 separate stores.

Thomas Sowell quotes the classic definition of economics as stated by British economist Lionel Robbins: "Economics is the study of the use of scarce resources, which have alternative uses." From this definition, it should be obvious that the scarce resources being used to deliver to Wal-Mart is a more efficient alternative use. Read Basic Economics: A Citizen's Guide to the Economy by Thomas Sowell.

To paraphrase the Reagan-era Doonesbury, exactly how do you make sense of such wishful credulity as “rewards efficiency, punishes inefficiency” without resorting to hallucinogenic drugs?

All the more reason, then, for the Confidential household to laugh out loud at the regime-friendly theories of free-market economists like Sowell, who tells us with a straight face that “price coordination” governs the distribution of “scarce resources” that might otherwise be used for “different purposes,” all of which is well and good if applied to the elusive level playing field that most Americans cling to believing exists in spite of voluminous evidence to the contrary, thus enabling us to avoid the terrifying cognitive dissonance lurking behind the door of our collective anxiety closet.

Actually, it’s quite fine with me that we recognize capitalism for the stage-managed, fixed phenomenon that it really is – if, and only if, we agree to strip it of the naïve mythology that so clouds the rosy view of its predominantly unthinking adherents, effectively blinding them to the myriad ways that Wal-Mart, McDonald’s, Anheuser-Busch and the U.S. government conspire to jury rig the “freedom” that we persist in believing is part and parcel of the economic mechanism.

Not coincidentally, it is the very same economic mechanism that best explains the reality of our involvement in the oil-rich Middle East and Central Asia, and as depicted in “Syriana,” it’s an ultimately constraint-free mechanism that has far more in common with crack addiction than most holiday mall rats, compliant churchgoers and Republican precinct committeemen care to fathom.

11 comments:

Anonymous said...

I have not viewed the film, but certainly do not disagree with many of your comments.

I do think that your comment:
"it’s an ultimately constraint-free mechanism that has far more in common with crack addiction than most holiday mall rats, compliant churchgoers and Republican precinct committeemen care to fathom."
is somewhat unfair.

As a Christian, conservative, republican, I fully admit there are similarities and the United States is and has been enabling the problem.
But, I do not believe this falls only into the categories listed and I believe it is unfair to label them as such. The majority of Dems, and others also bury their heads in the sand regarding these issues.

If you were president, how would you fix the problem?

It is easy to define the problems but much harder to fix them working within the system we have established.

All4Word said...

How about this, HB?

Associations, parishes, ecumenical councils, and pastors from every pulpit begin to preach that gluttonous consumption of oil is a failure in stewardship? Changing the culture to one of proper Christian stewardship of this planet would be one step toward empowering a President, eliminating "much harder to fix them working within the system we have established," as you put it.

There's a culture war for you.

All4Word said...

NAC...

The letter-writer you cite is more unintentionally funny than you noticed. Although his narrative recites a savings of less than $7 (and I won't dispute his assertion here), he concludes with the declaration that "saving $14 is a good thing."

Hilariously, he then goes on to scold (other) Americans for woeful economic sense (ignorance). Not to mention arithmetic sense.

The New Albanian said...

Randy, nice catch with regard to Mr. Hurt's fun with math.

Your point about Christian stewardship is well taken, and certainly not on the sermon agenda down at Southeast.

This Sam Harris book has me feeling militant.

Anonymous said...

All4word

I am sorry, but I really cannot follow your statements. I am probably just reading it wrong.

I agree that gluttony of anything is wrong, whether it be food, oil, sex, etc. Moderation is the key.

Better self-reliance on our own resources would allow us to not be endebted to anyone else and therefore be able to hold them accountable for their misgivings. But we still need to maintain good relations.

jon faith said...

Leaving the theatre on Christamas Eve all I could manage after viewing Syriana was the same indolent shrug that convulsed through my frame after vieiwing other concept films such as Crash, Hotel Rwanda and the above-mentioned Traffic. Do people really act according to stereotypes; genocide is bad, that's why we watch it depicted in suburban cineplexes; do middle-aged white men really drink too much?
I told Roger the other day, people who are informed will be impressed by the fluidity of the camera and a few performances, but they won't reach an epiphany. Those that aren't informed and only live to work wonky math on blue jeans retail. . .well, they will find incomprehensible.

BTW - what exactly is Christian stewardship of the planet?

All4Word said...

Jon, If I'm not mistaken, HB knows exactly what Christian stewardship means - it's evangelical code for "hey, why are we supporting drilling in ANWR?"

Teddy Roosevelt wouldn't recognize his Republican Party.

HB, instead of leaping to the defense of the GOP (and your point is well taken about the responsibility of others, as well), don't you wish the Biblical message could be used to change the culture?

Or perhaps yours is a dominion theology?

WWJD?

Anonymous said...

In a Christian context, stewardship refers to the responsibility that Christians have for the gifts that God has bestowed. In some settings, stewardship is operationalized as time, talent and treasure.

How are you relating christians with not supporting ANWR drilling? Based on the above definition, God bestowed nature to us and we are entrusted to utilize it appropriately. That does not in any way preclude drilling or any other appropriate use.
I am not aware of any rational or factual basis for that thought process.

I am all for drilling anywhere within the continental US or any territory we control. I am also for increased funding for alternative fuel and energy sources.

That is good stewardship of what we have.

Jeff Gillenwater said...

The following paragraph is from an article in a Rocky Mountain Institute newsletter, circa 2001. The full text is here.

Let's suppose that a compliant Congress, steady high oil prices, and successful exploration did find the hoped-for 3.2 billion barrels of profitably recoverable oil beneath the Refuge. Over a typical 30-year field life, that averages 292,000 barrels per day, enough to produce about 156,000 barrels of gasoline per day. That would run just two percent of America's present fleet of cars and light (non-commercial) trucks. That much gasoline could be saved by making those vehicles a mere 0.4 mpg more efficient. During 1979–85, new light vehicles gained 0.4 mpg every five months. This trend ended when President Reagan rolled back the efficiency standards—thereby wasting one Refuge's worth of oil, and promptly doubling oil imports from the Persian Gulf. Had the efficiency trend continued, America wouldn't have needed a drop of oil from the Gulf since 1985.

Choosing to ignore readily available and scientifically agreed upon information such as that above to advance the case for increased energy corporation profits does not constitute good stewardship. Just stupidity.

Unfortunately, stewardship efforts thus far seem focused only on brainpower conservation. We have untapped reservoirs of that enough to last for generations.

Highwayman said...

Here Here Bluegill! Well said!

As a former mechanic there is little in life that gives me a rush quite like the first time I fire off an internal combustion engine after rebuilding it. At that instant my soul soars.

However, a century plus after its initial developement, it is still only 30% efficiant at best. That means for every btu of energy that is created during the combustion process only a third of it does actual work (turns the wheels). The other two thirds either evaporates into the air as excess heat or goes out the tailpipe into the atmosphere. Moreover, try as we may we will never be able to breathe what comes out of that tailpipe regardless of how we alter its chemical composition.

Long story short it's a dinosaur that should have been buried thirty years ago.

We have the technology to devise better modes of transport. We as a nation spend money like it grows on trees so that argument won't wash either.

What we lack is the intestinal fortitude to A;live with a little less than instant gratification, and B; insist that our government stick with governing and refrain from corporate managing!

Washington has no more business being involved in free enterprise than it has being involved in religion.

Jeff Gillenwater said...

It's especially troubling that the diesel motor was originally designed to run on vegetable-based oil rather than petroleum-based fuels. A good part of our "car culture" has been a totally unnecessary energy company scam since the early days.

By simply using the diesel motor as it was intended, we could save much environmental devastation, provide struggling family farms with honest pay for honest work, and solve a lot of international political conflicts.