CONTINUATION OF THE URBAN ERA demands a constant growth in energy and material inputs – what could possibly go wrong with that?
| The Honest Sorcerer Oct 2 |

An article published on un-denial got me thinking about the feedback mechanisms which could push global civilization towards a rapidly accelerating simplification. Not because some evil / stupid / fill-in-the-blank people started a war, but because all technological civilizations are inherently unsustainable, and because they must come to an end no matter what.
The Predicament
The manufacturing, use and decommissioning of all our modern technologies require abundant mineral and energy flows. Non-renewable resources are at the core of every product and service we use: from all the metal and plastic parts in your car to the very screen you are reading this essay on. Powering these devices with fossil fuels or “renewables” is but a secondary question to the core of our technological and ecological predicament: the impossibility of maintaining a high-tech industrial civilization on a dwindling resource and ecological base.
Naysayers, of course, treat this as “Malthusian” thinking, as if slapping a label on an idea could automatically negate it. The hand-waving over resource depletion and treating it as a mere technical issue is, however, nothing but a form of denial. See, in order to dismiss the uncomfortable truth of our civilization’s predicament one has to reject a number of well established and proven trends:
- the logical fallacy of endless recycling
- the rapidly worsening energy and material return on investment, and
- the exponentially rising cost of complexity.
A recent study on Critical minerals and the energy transition is a case in point. It comes very close to prove the core thesis of the civilizational predicament, then botches it by setting the input parameters absurdly high and the tolerable level of energy return on investment absurdly low… Disregarding, all the time, the very strong practical connection between fossil fuels and mining—together with the already failing economics of both metals and fossil fuel extraction; not to mention the ecological damage civilization does to this living planet. Despite providing an excellent analysis on recycling, rising energy investment and complexity, the authors fail to properly implement these trends in their models. Well-well, by focusing on theoretical maximum values and not considering the practical realities of resource extraction, one can create all the models they want, yet could still fall short of providing a practical guide to the future.grade to paid
A Reality Check
Let’s start with recycling, my favorite thought-stopper when it comes to dealing with the existential dread techno-utopians feel over having to return to a much lower level of technology use in the future. Because let’s face it: when it comes to high emotions and the money involved in proving that we can have our cake and eat it too, we often have to deal with a deep underlying emotion: fear. It’s not unlike becoming aware of our mortality and the mind over reality transition every one of us is subject to (yours truly included). It’s not hard to see why it’s impossible to preach endless technological progress, together with the increases in human well-being it ostensibly brings about, and coming to grips with the reality of technological development being self-terminating by necessity.
Psychological factors aside, let’s return to recycling and its role in civilization’s self-termination. (I know it’s a harsh word, but it is what it is.) The core theme to understand here is that recycling materials is not—and can never be—perfect: metals are often mixed with other metals in alloys, or exist in such small quantities deeply-buried in complex assemblies that reclaiming them would be totally uneconomical. Think of all the germanium trapped in the silicon wafers of chips, hair-thin copper wiring sheathed in thick plastic, tiny coils, resistors, capacitors, or the metals thrown out with the many too-cheap-to-bother household appliances from defunct hair dryers to broken food processors and toasters.
As someone who worked two decades in and around manufacturing, supply chains and product development I can testify: products are not designed, built and made with 100% recycling in mind in any company around the world. Much of the metals—rare or common—thus end up on a scrap-heap or get melted down into a very low quality alloy used in making steel rebar. Has the material been recycled by weight? Sure, but did we got the copper, cobalt, nickel etc. back? No, these valuable metals are now lost forever, mixed irretrievably with a range of other metals and buried deep into concrete. Relying on recycling alone would thus rapidly deplete the pile of reclaimable materials, and after a few rounds would see us materially bankrupt.
Mineral extraction and primary metal production, therefore, cannot stop. In fact, it has to constantly increase in scale even as mining companies are forced to fight an uphill battle with depletion—necessitating the deployment of ever more complex and energy hungry methods and technologies. For a visual illustration compare an artisan copper mine a few centuries ago (or a present day cobalt mine in Congo) where people collect high grade, high metal content rocks (ores) using a pickax and a basket, and a modern day open pit mine where massive trucks haul hundreds of tons of dirt containing less than 0.5% metal. Yes, it is not a typo: modern mining operations blast, dig, haul and crush rocks containing a pound of pure metal per a ton of dirt.
There is no way you can do this without massively increasing the material, technological and energy investment compared to a much simpler operation. Sure, this constant rise in complexity brings with it the creation of new jobs and skills, but also the need to use more complex, bigger, heavier machinery and computer systems to monitor and coordinate these activities (now assisted with AI). All of which is contributing to an ever higher energy consumption. Problem is, that mined ore grades (expressed in % of metal content) degrade over time, as we harvest all the high quality stuff first and are forced to move on to the next, lower grade batch. And as ore grades decrease, the energy, emissions and water intensity required to obtain that same dumb pound of metal will continue to grow. As Calvo et al. found in 2016:
“Analyzing only copper mines, the average ore grade has decreased approximately by 25% in just ten years. In that same period, the total energy consumption has increased at a higher rate than production (46% energy increase over 30% production increase).”
Oh, and by the way, the same is true to recycling as well: just as declining ore grades raise the energy demand of the primary production of metals, so does the energy demand of secondary production increase as the end of life recycling rate gets higher. In essence once we want to recycle anything else than the easy stuff—scraps from the shopfloor or pure copper wires as thick as your arm—we will have to go further and exert more energy to reclaim the metals we now simply throw away. As I alluded to above and as another study on the subject found: “Our empirical analysis of 48 metals shows that their recycling is mainly impeded by their low concentrations. In many cases, the metal concentration in end-of-life products is lower than that in natural ores.” Put in plain English: it’s much easier (and cheaper) to dig up low-grade dirt, than to collect, separate then recycle much of the metal in use out there. No wonder, the authors conclude: “The energy requirements for recycling copper from end-of-life products already reach the magnitude of those for primary production.” I have to put an emphasis on the word: already.

The process of falling metal concentration—both in mines and scrap-heaps—and the subsequent rise in complexity and energy demand per ton of metal processed gets reflected in prices as well. ‘Then rising prices will solve the issue’—comes the usual retort. And sure enough, so far they did—but there is a catch. Without an ever growing demand for these metals, high prices—needed to maintain production—would simply collapse, and see many mining operations going bankrupt. Rising complexity requires a forever-growing market to support the increasing cost of designing, manufacturing and operating new mining and recycling technologies. A growing market, on the other hand, requires a healthy, growing economy able to invest in new technologies (“renewables,” electrification, AI etc.) not to mention a strong (and growing) consumer base able to pay for it all.
It all looks good on paper, but what happens when the “consumer base” (a.k.a. the population) stops growing, begins to age, get impoverished by high energy prices, taxes and mortgages, or laid off?
Or what happens when the next round of innovation would require more resources and more energy than what the current system could physically provide? (Ahem, AI, anyone? Or how about mining in space? Fusion, perhaps?)
Or what happens when mining and drilling companies run out of “prime acreage”—where returns are high enough to justify investment—and what remains of our “infinite” resource base turns out to be wholly uneconomic to get? (Sure, 0.0068% of Earth’s crust is copper, but who in their right mind thinks that’s economic to go after?)
Or what happens when all those prior investments in technology, high living standards, stock market bubbles etc. can no longer be financed as interest rates rise and incomes dwindle?
Or what happens when wars begin to actively reduce energy and material flows worldwide?
Or what happens when global oil production—still powering 99% of all mining, agriculture, construction, militaries and transportation to this very day—stops growing due to all these reasons above and when the net energy derived of oil begins to fall?
Or, last but not least, what happens when all of these arrive at once?
The Cascade
Maintaining modernity requires constant growth. Not just from a financial standpoint, but from a purely technological perspective. Without an ever growing demand for raw materials, extraction collapses under the weight and cost of its rising complexity—not to mention the rising interest payments on debts taken on to finance it all. Modernity in general, and not just oil and gas, has become a giant Ponzi scheme—a bubble of truly epic proportions. Should it stop growing, it would immediately begin to contract—collapsing at a much faster rate than what it took for it to grow.
“Steady state” is mathematically impossible in such a system: technological civilizations either grow or shrink rapidly. As their highly concentrated, easy-to-get mineral and natural resources deplete, and as their industries need to adopt ever more sophisticated ways to go after lower and lower grade sources, complexity and energy consumption begins to rise faster than the amount of raw material and energy returned to society. And since energy production is a function of material output (either directly such as coal, or indirectly via “renewables”¹), there is less and less surplus left for the rest of society to share. Wealth and power begins to concentrate as a result, and the average citizen gets materially poorer by the day. This socioeconomic feedback loop then begins to erode demand through lower birth rates and falling disposable income. Falling demand and an exponential rise in energy and material costs then makes further material expansion impossible, till contraction sets in and demand is completely destroyed in a self-reinforcing feedback loop.
This won’t happen overnight though. Scarcity, resulting from the first round of production collapse, would begin to raise prices again, stopping the cascade before it could become complete. The weakest players break, then the “equilibrium” is restored. A round of consolidation follows: assets are bought up and production restarts, but cannot be restored completely as the market can no longer support it. Buffers and resilience suffer a blow, and never get restored. Jobs are lost forever. Consumer sentiment and spending get a hit. Demand begins to quietly decline, again.
‘But, but, but… What about financial stimulus?’ Can new money restore demand? I’m afraid not. Given the fact that most oil and metal production now comes from mines past their peak, and new projects are few and far between, stimulus would only lead to higher inflation. Which would then be used by mining and drilling companies to pay back their debt, buy back some of their own stocks, pay higher dividends or to merge with one-another. New exploration, however, would not commence as the number (and quality) of potential drilling sites, where returns would be reasonably high, is falling like a rock—for decades now. The US shale oil business is a case in point.
As a result of persistent resource depletion, wars and economic decline, annual metal and oil output is much more likely to fall, than to increase over the years and decades ahead. The resulting scarcity will then further erode buffers and resiliency, till enough bricks are knocked out to start another round of collapse. This time, though, the lack of raw materials and energy will likely trigger a cascade of company failures across multiple supply chains. You know the story: “For want of a nail, the shoe was lost. For want of a shoe, the horse was lost…” And so on, and so forth. Then, as enough productive capacity is destroyed, a new “equilibrium” sets in, again. Buffers and resilience suffer another blow, and never get restored. More jobs are lost forever. Consumer sentiment and spending gets another hit. Demand continues to fall without a sound. Rinse and repeat.
Years and decades into this process six continent supply chains begin to fragment into smaller, more manageable chunks. Products get localized. World trade diminishes. Demand for fuel and raw materials continue their long decline. Technological and societal simplification accelerates. Roles which were added on the way up are now erased. And just as the Romans towards the end of their civilization could not believe what’s happening to their mighty empire, the top scientific and political elite will continue to pin their hopes on the next big, shiny and new innovation ahead—not realizing that we’ve already entered the self-reinforcing loop of the great simplification.
Viewed from a distance, say two hundred years from now, the end of modernity will look like a fabled supernova explosion: one day it worked, the other day it all fell into ruins. On the ground, here and now, however, this all looks like a series of never ending crises: a global health crisis in one year, a war in the next—all against the backdrop of a relentless economic and ecological decline. On and on, for decades—just like in Rome. ‘But hey, this time it’s different!’ No it’s not. Not at all. ‘Is this the end of the world then?’ No, its the beginning of a new era, marking the onset of the de-industrial revolution.











