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Sunday, June 07, 2026

The Right Is Disappearing: The Choice Is Between the Left and the Far Right


Photo by Mark Dixon via wikimedia commons



I am writing this text with the Americas and Europe in mind, but the phenomena I analyze apply, with modifications, to other regions of the world. We are on the brink of a new world war, facing imminent ecological collapse, witnessing the end of international law, and the end of the distinction between democracy and autocracy. The political paradigm of Eurocentric modernity has globalized to the extent that it has transformed democracy (liberal democracy) into the only legitimate political regime. Based on concrete examples, it is time to acknowledge that this historical process has run its course and is producing perverse effects: liberal democracy exists today primarily to create and legitimize dictatorships; democratic institutions are committing suicide as a normal way of operating. There is resistance, but it will only be effective if those who resist have the clarity to recognize the gravity of what is happening and the importance of what is at stake.

The political paradigm of eurocentric modernity

The results of the first round of the Colombian elections held on May 31 of this year are as follows: Abelardo de la Espriella (far-right): 10,361,499 votes, corresponding to 43.74% of the total voting electorate; Iván Cepeda (left): 9,688,361 votes, 40.90%; Paloma Valencia (traditional right): 1,639,685 votes, 6.92%. These results have certain circumstantial characteristics that I will identify below, but they are not, on the whole, a mere circumstantial episode. Rather, they are a symptom of a profound political transformation that is taking place globally.

The incompatibility between capitalism and democracy is reaching a level that renders the traditional right and centrism obsolete. The contradiction between capitalism and democracy is the foundation of all political options in the modern era, that is, post-French Revolution. It is inscribed in the three basic normative concepts that define this politics – liberty, equality, and fraternity – and in the historical process that, based on them, was set in motion. There is an inherent tension between the three concepts. As isolated values, they aspire to their maximization (maximum freedom, maximum equality, maximum fraternity); as values in constellation, they require negotiation, accommodation, and relativization (possible freedom, possible equality, possible fraternity). In turn, the historical process set in motion had two pillars: the rise of the bourgeoisie to political power with a view to consolidating and expanding the political economy that had originally granted it power – capitalism; and the establishment of liberal democracy as the only legitimate political regime capable of achieving the possible reconciliation of these three normative concepts.

The fundamental contradiction between democracy and capitalism is this: while democracy is based on the ideas of popular sovereignty and national citizenship as ways to reconcile the tensions between the three normative concepts, capitalism aims at infinite accumulation made possible by the ceaseless expansion of the market. Capitalist accumulation and the market recognize only one of these values – freedom– of which, moreover, they have a narrow conception: the only freedom that matters is economic freedom. On the other hand, while the ideas of sovereignty and citizenship point to the primacy of the national geopolitical space, accumulation and the market are always potentially global, even if they are not always so in reality.

The political families of Eurocentric modernity emerged from this conceptual paradigm. They shared a principled recognition of the validity of the three normative concepts and their potential accommodation through democratic means. Thus was liberal democracy born. They differed in the relative weight they assigned to each of these values: while the political forces conventionally designated as right-wing prioritized the value of freedom, left-wing forces prioritized the values of equality and fraternity. The principle of primacy did not imply the negation of any of the three values; it merely implied that the greatest “necessary sacrifices” would be imposed on the values without primacy.

On the margins of this paradigm, yet fully inherent to it, there existed two types of political forces that shared a rejection of the idea of compatibility through accommodation among the three values and, consequently, of liberal democracy. The political forces conventionally designated as reactionary rejected all three values, as they were all individualistic and secularist, and proposed in their place: God, Country, and Family. A subgroup of the reactionary forces, which gained influence over time, proposed the compatibility of “God, Country, and Family” with one of the values of modernity, freedom, understood as economic freedom. Thus emerged the acronym “God, Country, Family, and Freedom”. This subgroup was labeled as the far right and seized power in the 20th century in the form of fascism and Nazism. These regimes took to the extreme the idea that the only value that mattered was economic freedom

The other margin of this paradigm was constituted by revolutionary political forces that likewise rejected the possibility of reconciling the three values and gave primacy, in various forms, to equality and fraternity. For these forces, liberal democracy would always end up prioritizing freedom at the expense of the other values. And because it gave political form to capitalism, liberal democracy would be doomed to commit suicide when economic freedom demanded the total sacrifice of equality and fraternity. The revolutionary political forces took two main forms: communism/revolutionary socialism and anarchism. They differed on the concept of the state, forms of struggle, and the idea of freedom for associated producers (advocated only by the anarchists).

The liberal democracy/capitalism constellation in action

Originating in Europe, this constellation spread to the non-European world through colonialism and the anti-colonial struggle. It has been in constant upheaval since its inception and was set aside at two historical junctures. And in this case as well, what happened in Europe spread, in different forms, to other regions of the world. The upheaval was driven by two main forces: class struggle and imperial rivalries. The two major collapses, with opposing political outcomes, occurred, on the one hand, in Russia in 1917 (the end of capitalism and liberal democracy), and, on the other, in Italy in 1922 and Germany in 1933 (the end of liberal democracy to “liberate” capitalism). They were, in part, a product of unresolved rivalries from World War I and ultimately contributed to the outbreak of World War II.

While it functioned, the liberal democracy/capitalism constellation took the form of social democracy. Theoretically, social democracy is based on the attempt to realize the original idea of liberal democracy, as proposed by its theorists. Of course, the original idea was always contradicted by the practices of its proponents: John Locke and his dealings in the slave trade (stock certificates in the Royal African Company between 1672 and 1675); or the first U.S. presidents, who saw no contradiction between the Constitution and owning slaves (for example, George Washington, between 300 and 600 slaves; Thomas Jefferson, more than 600 slaves; James Madison, more than 100 slaves).

The original idea was to keep two worlds strictly separate: the world of economic values, which have a price and are therefore bought and sold, and the world of ethical-political values (political convictions, beliefs), which have no price and therefore cannot be bought or sold.

This separation (never complete) formed the basis of social democracy. By social democracy, I mean the coexistence of capitalism and liberal democracy, in which the capitalist class (generally, the bourgeoisie) is forced by the workers’ struggle to make certain concessions to the value of equality in order to preserve the continuity of capitalist accumulation and the globalization of markets.

Historically, these concessions have been the workers’ right to unionize and strike, and social policies in the form of social rights – ranging from labor rights and the public pension system to public education and healthcare, and the concept of public goods (which cannot be commodified) and public service as an operating ethos. In short, a market economy coexisting with a non-mercantile society – that is, a society defined by social relations devoid of a logic of commercial exchange (fraternity mediated by the state). These concessions transformed the state into a privileged arena of political contestation.

The collapse of the liberal democracy/capitalism constellation

Collapse is always the culmination of a crisis that unfolds over time. The crisis of social democracy became evident following the so-called Washington Consensus in the mid-1980s, which declared the unsustainability of the social-democratic capitalist model and proclaimed as the sole global model of capitalism a version that had until then been a minority within economic theory and had only been fully implemented under dictatorial conditions: the Pinochet dictatorship that followed the 1973 coup d’état against Chilean President Salvador Allende, orchestrated by the CIA and Henry Kissinger.

This version became known as neoliberalism. In general terms, it consists of: economic deregulation, trade liberalization, privatization of all state activities capable of generating profits, replacement of progressive taxation (where the wealthier pay proportionally more taxes than the poorer) and the consequent replacement of state financing through taxation with financing through loans in the globalized financial capital market (the great deregulation).

The end of the Soviet Union marked the beginning of the final collapse of social democracy. The neoliberal model brought about two reversals that went unnoticed by the public and the vast majority of social and economic theorists. On the one hand, anti-social-democratic democracy became a condition imposed worldwide by the World Bank and the International Monetary Fund for financing developing nations. The reversal consisted of the following: whereas previously democracy, to be viable, presupposed certain minimum preconditions of development (agrarian reform, urbanization, the creation of middle classes fearful of losing the little or much they have in the event of any attempt at a socialist revolutionary upheaval), from now on the establishment of liberal democracy became the precondition for development policies. No funding without liberal democratization (the infamous “structural adjustment” on the periphery of the world system and the no less infamous “austerity” in the more developed countries).

The second reversal, equally overlooked, consisted in the fact that, whereas until then it could be said with some credibility that capitalism was regulated by democracy (the theory of regulation), from this point on capitalism began to regulate democracy, and democracy was permitted only to the extent that it served the free operation of capitalism.

These two reversals presupposed that the separation between the realm of ethical-political values and the realm of economic values would be eliminated or, at the very least, diminished. One of the instruments used was the deregulation and consequent opacity of political party financing. In the U.S., this occurred with the 2010 Supreme Court decision, “Citizens United v. Federal Election Commission”, through which it became possible to finance party activities without limits. This deregulation went hand in hand with the possibility of obscuring the source of funding through so-called “dark money.”

If the influence of capital on politics had already overshadowed other influences in the past – notably those of labor unions – from that point on it became absolutely dominant. Thus, the floodgates were opened for the realm of economic values to eventually absorb the realm of ethical and political values. In other words, from then on it became possible for everything in politics to be bought and sold, just as it happens in the economy. Grand corruption disappeared because it was legalized. Petty corruption became systemic because, in the meantime, the ethos of public service and concern for the common good had vanished from the memory and practice of the vast majority of state officials.

The Supreme Court’s ruling was the final blow to American democracy. Today there is no democracy in the U.S.; there is an oligarchy with regular elections to decide which oligarchic group governs. Citizens have very little ability to decide on what truly matters and is important for the free operation of capitalism. Therefore, the country that most promotes regime change (the infamous “regime change”) is the country that first undergoes that change, with the result the rest of the world knows: increased social inequality, civil war, depoliticized crime, systemic disinformation through corporate media concentration, and the fragmentation of social cohesion. This is the cruelest mirror of the U.S., the country of the original “regime change.”

From this follows a lesson and an observation. The lesson is that the liberalization and opacity of political party financing imply the death certificate of democracy. In Portugal, that death certificate is being drafted under the pretext of data protection (the same pretext that – combined with the freedom of speech protected by the First Amendment to the Constitution – led to the suicide of American democracy). The observation is that it should come as no surprise that the U.S. today fundamentally supports far-right governments and politicians. These are the governments and politicians that best serve the interests of the American oligarchy and most closely identify with its ideology.

The Interregnum: the end of traditional democracy, the beginning of what?

We are living in a period of Gramscian interregnum: the old liberal democracy/capitalism constellation has not yet completely disappeared, and the new one that will follow it has not yet fully taken shape. What are the main characteristics of this interregnum?

The ambiguity of the anti-system drive

Neoliberalism has been erasing from the memory of the working classes the effectiveness of democracy in defending their interests or improving their living conditions. The final crisis of the liberal democracy/capitalism constellation opens the space for the growth of the anti-system drive. In light of what I mentioned above, this drive is ambiguous insofar as, in the past, the anti-system forces were the far left and the far right. The anti-system drive is merely the manifestation of a malaise with no solution in sight within the current system. It corresponds to an individual and collective existential condition that manifests as an excess of fear without the compensation of any hope without major changes.

In fact, we can say that the anti-system drive benefited Colombia’s President Gustavo Petro in the 2022 elections. Although he is a politician of the system, with a brilliant track record as a senator, he had a far-left past that lent credibility to the possibility that, finally through him, some hope might be restored to those disenfranchised by the liberal democracy/capitalism constellation. And that expectation was not entirely thwarted. On the contrary, there were improvements in the living conditions of the working classes; there was a genuine desire to reconcile the nation through the Total Peace plan; land was distributed to poor peasants; through memorable interventions at international forums, notably at the UN, President Gustavo Petro restored to millions of Colombians the pride of being Colombian after decades of the insulting equation: Colombian = drug trafficker.

The ambiguity of the anti-establishment drive can be identified in different places and contexts. For example, in the regions of Germany that belonged to the communist bloc during the Soviet Union’s existence – the former German Democratic Republic – is where the far-right (AfD, Alternative für Deutschland) is growing the most. In the last federal elections, this party won 34.5% of the vote, while in the regions of what was then West Germany it won only 17.9%. It turns out that these same voters, when asked for their assessment of the communist regime, are mostly (albeit conditionally) in favor of it. What they recall with nostalgia are benefits such as these: job security, free housing and healthcare, the absence of rampant consumerism driven by advertising, the possibility of a stable family life, and one month – and sometimes more – of vacation per year. What they naturally reject is the secret police, the lack of freedom of expression, censorship, and the prohibition or extreme difficulty of traveling abroad. They become disillusioned upon concluding that perhaps they wanted the best of both worlds and that this is impossible.

We can conclude that due to the severe erosion imposed on the liberal-democracy/capitalism constellation in recent decades, the anti-system drive is now legitimate and can be directed toward two opposing political orientations: the far right and the far left. The problem is that at this moment of interregnum the only actual orientation is that of the far right, and the possibility of this drive turning toward the far left is today the unspoken nightmare of those in power. For this reason, they do everything in their power – and with the utmost extremism – to prevent such a shift from occurring, using the most sophisticated means of manipulating public consciousness, silencing the voices that might expose their game, and manufacturing permanent crises to make it impossible for those in power to think beyond the current affairs and for ordinary citizens to think beyond the next day. The creation of permanent crises, the incessant threat of war or foreign intervention, paralyze the possibility or the will to think, to act, and to resist.

In Colombia, we can say that the anti-system impulse oriented toward the far left has been exhausted by Gustavo Petro and is not available to Ivan Cepeda. Colombians are left with no choice but to choose between the left and the far right. In this context, Colombia is on the verge of producing a turning point in the interregnum whose significance extends far beyond Colombia.

The collapse of the traditional right-wing candidate in Colombia is so pronounced that it demands an analysis of the complex formation of the anti-system drive. In this interregnum, the traditional right has only one option: to unite with the far right in the hope of saving the system that has served its interests for decades. It so happens that the right-wing candidate, Paloma Valencia, sought to blend two incompatible signals of the anti-system drive. On the one hand, her Uribista background pointed toward the far right, but on the other hand, by choosing an openly gay vice-presidential candidate (Juan Daniel Oviedo Arango), she sent a signal of an anti-system drive that was not only hostile to the far right and the conservative right but also aligned with the left, which has been legitimizing diverse sexualities. This confused her followers, and many likely even felt betrayed. Consequently, they defected from her camp and threw their support behind the far-right – which is openly misogynistic, homophobic, transphobic, and xenophobic.

Extremes see only extremes

The goal of the anti-system drive is never the construction of an alternative system. This explains why, when it comes to power, the far right knows only how to destroy, never to build. The goal of extremism is to imagine another extremism and turn it into an enemy. One does not engage in dialogue with the enemy; one must simply destroy it.

For the far right, there is no right or center except to absorb them, and above all, there is no left. The entire left is the far left. This is the false polarization with which current politics deceives us. The people are not polarized; it is their cell phones that are. In other words, we are facing a massive fabrication of polarization based on the assumption that it will produce only the far right. The fabrication of the enemy takes two forms today, one secularist and the other religious.

Secularist extremism

For the far right originating from the traditional secularist right, the entire left is the far left – it is communist, neo-communist, or Castro-Chavista (a neologism coined by Colombia’s former (far) right-wing president, Álvaro Uribe). In a media landscape completely dominated by the right, being a leftist has become an insult, a stigmatization that provokes revulsion, while being a fascist is for now an unspoken term, used only in private and among like-minded individuals.

Religious extremism

In the Americas, and increasingly in Africa and India, the political use of religion is an increasingly effective tool for instilling extremism. In the Americas, evangelicalism – especially Pentecostal evangelicalism advocating prosperity theology – is largely responsible for the current indiscreet charm of billionaires. Pentecostal evangelicalism is today a powerful political force, at the legislative, executive, and judicial levels alike.

While for secularist extremism the left is communism, for religious extremism the left is the incarnation of the devil.

The end of soft coups

The first characteristic of the interregnum we are experiencing is the massive production of political extremism. The second is the intense, violent, and flagrantly unlawful interference by the hegemonic power in the domestic politics of countries within its sphere of influence. After the collapse of the Soviet Union, the U.S. became the sole global hegemonic power. Its primary area of interference has always been Latin America. Interference has always existed, but in recent times it has taken two forms that disguised its true objectives under the guise of defending democracy. At the same time, its objectives were pursued in a way that concealed the violence of the drive pushing them.

These two forms were the color revolutions and the soft coups. While color revolutions dominated in Europe and North Africa, soft coups dominated in Latin America. They were so named because they were coups d’état carried out within the framework of apparent constitutional normality and with recourse to democratic institutions. The real objective of all of them was to provoke the removal or deposition of democratically elected presidents, but who were considered hostile to U.S. interests. The manipulation of the judicial system was fundamental to successfully carrying out the soft coups. The first occurred in Honduras in 2009 with the removal of President Manuel Zelaya. This was followed by the coup in Paraguay in 2012 to remove President Fernando Lugo, the coup in Brazil in 2016 to remove President Dilma Rousseff, and the coup, also in Brazil, in 2018 to disqualify presidential candidate Lula da Silva.

The New U.S. Security Policy, adopted during President Donald Trump’s second term, set aside soft coups and began to legitimize more violent interventions that explicitly violate international law. These interventions have two fundamental pillars: the military pillar and the financial pillar.

The military pillar lies, for example, in the omnipresence of warships off the coasts of the countries targeted for intervention, the jamming of satellite communications necessary to activate anti-aircraft defenses, the reinforcement of existing military bases on the continent, the bombing of fishing boats navigating in the territorial waters of these countries, the capture and abduction of democratically elected presidents, and take them to prisons in the U.S. where they will be put on trial. For internal U.S. use, the term “narco-terrorist state” was invented to legitimize these violent interventions. In recent times, the country most violently targeted with the widest range of measures has been Venezuela.

The financial pillar includes embargoes, the freezing of assets and reserves abroad, tariffs, punishment of companies in the target country and in other countries that do business with them, and interference in national financial systems under the pretext of possible corruption or the existence of drug trafficking funds. Cuba is the country that, since the beginning of the Cuban Revolution, has been the target of the most military and financial coups for the longest period of time.

Imperial rivalries intensified

The end of soft coups stems from the intensification of imperial rivalries. As I said, after the fall of the Soviet Union, the U.S. became the sole hegemonic power in the modern world system. That solitude was short-lived. The contradictions inherent in capitalism have led China to develop exponentially over the last thirty years and become what it is today: the world’s factory. Whether acting alone or within the context of the BRICS, China has been emerging as a rival hegemonic power. The rivalry has been intensifying and takes various forms. In Europe, the war in Ukraine aims to block China’s access to Europe and weaken its closest ally, Russia. In the Middle East, the transformation of Israel into a sub-imperialist techno-fascist state aims to cut off China’s access to the Mediterranean and deprive it of the Middle East’s natural resources.

In Latin America, the heavy-handed approach is particularly severe because China has become the main trading partner of many countries on this continent. Furthermore, Latin America is home to one of the largest founding members of the BRICS, Brazil. The most recent symbol of this heavy-handed approach is the creation of a new military alliance between the U.S. and the “friendly” countries of the subcontinent, an alliance significantly celebrated in Miami in 2026. At present, the Shield of the Americas consists of 12 countries: Argentina, Bolivia, Costa Rica, the Dominican Republic, Ecuador, El Salvador, Guyana, Honduras, Panama, Paraguay, Trinidad and Tobago, and the U.S. Glaringly absent are three important middle-income countries: Brazil, Colombia, and Mexico. These are the countries that must remain on high alert if they do not want to fall into the hands of the far right (and the U.S.) in the near future.

Hi-Tech extremism

Following the anti-system drive, the end of soft coups, the use of political religion, and the intensification of imperial rivalries, the most important characteristic of the interregnum in which we live is the far-right’s use of the most sophisticated technologies for manipulating consciousness, now with the massive use of artificial intelligence and the way algorithms can address millions of people as if they were addressing each one individually and personally with tailored messages. This is something far more sophisticated and effective than the infamous Cambridge Analytica, the computer-based political decision-making manipulation machine responsible for Brexit (the United Kingdom’s exit from the European Union).

This type of capitalist investment in far-right parties and candidates comes at a cost, and this explains, in part, why far-right parties are generally the best-funded. The case of Colombia fully confirms this fact. Abelardo de la Espriella’s high-tech campaign is well described in Lucas Ospina’s article published in La Silla Vacia on May 29, 2026. It is the same process that brought other far-right or extreme-right politicians to power in Latin America (Trump in the United States in 2016): Bukele in El Salvador (2019), Bolsonaro in Brazil and Milei in Argentina (2023), Noboa in Ecuador (2023), Mulino in Panama (2024), Asfura in Honduras (2025), Kast in Chile (2025), and Fernández in Costa Rica (2026). It is possible that Keiko Fujimori in Peru will join this group in the near future.

The effectiveness of high-tech extremism cannot be underestimated in any way. In the 2022 Colombian elections, many commentators believed that if the campaign had lasted one more week, the far-right candidate, Rodolfo Hernández, might have won the election.

The die is cast

In another article, I will address the future of the left in this new context, where it has become the sole bulwark defending democracy against the far right. It will be important to ask then: how can we build a conception of democracy that does not commit political suicide by repeatedly electing fascists?

In the current American and European context, democrats have no choice but to vote for the left-wing party or presidential candidate. The far right uses democracy to come to power, but once in power, it has no intention of exercising it democratically. Populism is its best disguise today. For example, in Portugal, the Chega party, the second-largest party, is far-right. As I write, it opposes the labor law reform proposed by the traditional right-wing government currently in power. But it is clear that, once in power, the Chega party will propose the same law or one even more harmful to workers. In light of this, voting for the left today means, above all, saving what remains of democracy so that we can later try to strengthen it in order to resist the false democrats with greater conviction. If the left “forgets” the need to strengthen democracy, it will be committing suicide.

In the future, other issues must be addressed. What is the future of the left if the traditional right disappears entirely? How can we build a conception of democracy that does not commit suicide by repeatedly electing fascists? What will the left of the future look like? These are the topics of an upcoming text.

For now, the choice facing democrats is expressed in two messages sent by prominent figures to the candidates competing in the second round of Colombia’s elections.

Donald Trump’s message to candidate Abelardo de la Espriella on his social media:

Congratulations to Colombian Presidential Candidate, “EI Tigre (THE TIGER),” Abelardo de la Espriella, a Smart, Strong, and Tough Leader, on his decisive Victory in the first round of the Colombian Presidential Election! Abelardo fights tirelessly for, and loves, his Great Country and People, just like I do for the United States of America. As President, Abelardo would be tremendously successful in leading Colombia to Grow the Economy, Create Jobs, Promote Trade, Stop Illegal Immigration, Crack Down on Crime and Drugs, and Restore LAW AND ORDER! Abelardo will face off against a Radical Left Marxist in the Runoff on June 21st – The results of this Election are very important to the future of Colombia and its relationship to the United States. Because of his tremendous accomplishments in life, and his political support for me, personally, it is my Honor to give Abelardo my Complete and Total Endorsement. “EL TIGRE” ABELARDO DE LA ESPRIELLA WILL NOT LET THE WONDERFUL PEOPLE OF COLOMBIA DOWN!

President DONALD J. TRUMP

Message to Iván Cepeda from Jesuit Father Pacho de Roux, who served as president of the Truth Commission established following the 2016 Peace Accords with the guerrillas, and to whose Advisory Council I had the honor of belonging:

Iván, who am I to give you advice, but accept this word from a friend.

Congratulations. You ran a very good campaign. You kept hope alive.

You dedicated yourself body and soul.

It is time to accept the truth of reality. It is right that they recount the votes, but that is not the issue; the truth that the ballot boxes reveal is the degree of moral prostration and darkness in much of our society, regardless of the manipulations or fears that cause this situation

And we must move forward from that truth. You are right when you speak of a moral revolution, of a change of consciousness. Your moment is now, to transform the truth of the result into a call to enthusiastically embrace what you embody: bold passion and hope, with challenge and generosity, and perseverance amid difficulties, as you have done; and at this crucial moment, that very ethical passion is drained if you use its value to attack your opponent for his moral baseness as a mafia-like and corrupt figure whom we know well.

Do not let your passion stray down that path, because you will not change the corrupt one, nor will you shake the dark conscience of those who follow him; on the contrary, you will harden their hearts in evil.

Your moral integrity, your enthusiasm for the cause, your call to Hope, your transparent, ethical, positive, and courageous discourse – that is what is needed now.

You have that. Do not diminish your moral greatness by campaigning AGAINST the moral abyss; dedicate these three weeks to giving everyone the best of yourself.



Boaventura de Sousa Santos
Boaventura de Sousa Santos is the emeritus professor of sociology at the University of Coimbra in Portugal. His most recent book is Decolonizing the University: The Challenge of Deep Cognitive Justice.




Sunday, May 31, 2026

New gold rush threatens indigenous havens in Brazil’s Amazon


By AFP
May 28, 2026


In February, guns were briefly drawn on both sides when chief Bepdjo Mekragnotire and a group of Kayapo warriors came across miners in a canoe - Copyright AFP Evaristo Sa


Fran BLANDY

Indigenous chief Bepdjo Mekragnotire is once again preparing to lead a group of warriors to chase wildcat gold miners away from his people’s territory in Brazil’s Amazon rainforest.

Wearing a red feather headdress, Bepdjo told AFP of rising tensions with intruders in the Bau Indigenous Territory in Para state, four years after his people expelled almost 200 prospectors.

“The miners are stubborn. They enter by any means. Because today the price of gold is very high,” Bepdjo, 45, told AFP in Pykany, a village of his Kayapo people in a territory neighboring Bau.

“We have to expel them, otherwise, they’ll just keep pushing in.”

The price of gold — a safe-haven asset in troubled times — has hit a new era of record highs amid global instability.

This is pushing wildcat miners into relatively untouched areas like Bau.

In February, guns were briefly drawn on both sides when chief Bepdjo and a group of Kayapo warriors came across miners in a canoe. He said they kicked out 24 people.

Afterward, a coalition of Indigenous organizations, in a letter seen by AFP, warned authorities including the IBAMA environmental agency, of “the imminent risk of a large-scale armed conflict,” and asked them for help.

Bepdjo is tired of waiting.

“We don’t know how many prospectors are inside, we just get there and see,” he told AFP.

Jair Schmitt, acting president of IBAMA, told AFP that the agency was focused on Indigenous territories “facing particularly critical situations. IBAMA cannot be physically present in every area.”



-‘Deeper into the jungle’ –



Experts see protected Indigenous lands as one of the best defenses against climate change and deforestation.

From the air, on a flight with Greenpeace, AFP witnessed the crushing pressure on protected areas — and the difference that the tribal areas make.

Vast landscapes of rivers gouged out for mines and forest broken by farmland came to a dramatic halt at the border of the Indigenous territories, where the lush green canopy resumed as far as the eye could see.

Amazon Mining Watch said an area of 223,000 hectares was impacted by mining in Brazil between 2018 and 2025 — almost 80 percent of it illegally.

Since leftist President Luiz Inacio Lula da Silva returned to office in 2023, his government has cracked down on wildcat mining. His far-right predecessor Jair Bolsonaro had been accused of fostering a climate of impunity in the Amazon.

But mining barons, whose operations have turned from true artisanal mining to multi-million dollar operations using large machinery and fleets of small planes, have adapted quickly.

Nilton Tubino, appointed by Lula’s government to lead operations to protect Indigenous territories, told AFP that a “new gold rush” was fueling illegal mining across the Amazon.

“The miners are retreating deeper and deeper into the jungle,” he said.

“We are constantly grappling with the challenges posed by the sheer scale of these territories… and the organizations’ capacity to rapidly rebuild what we destroy.”

In the past three years, IBAMA has destroyed more than 690 excavators, 1,300 barges and 80 aircraft — equipment worth almost $800 million.

Schmitt of IBAMA said the greatest difficulty was “confronting organized crime” as major factions, the Primeiro Comando da Capital (PCC) and Comando Vermelho (CV), have expanded into the Amazon.

These groups were on Thursday designated as terrorist organisations by the United States.

– ‘Ghost mines’ –



The Escolhas Institute, which analyzes Brazil’s gold supply chain, said the country produced 71 tons of gold in 2025, mainly exported to Canada, Switzerland, and the United Kingdom.

Brazil is working on new legislation to bolster gold tracking, alongside police initiatives like a library of gold “DNA” to trace the origin of the ore back to specific sites in the Amazon.

Larissa Rodrigues from the Escolhas Institute said that due to a government clampdown, gold that previously “exited Brazil through the front door” was being smuggled out through countries like Guyana or Venezuela.

Other loopholes exist to launder gold, such as “ghost mines,” detailed in a Greenpeace investigation published Friday.

The sites hold artisanal mining permits and declare gold sales but when you fly over them, there is no sign of extraction activity.

Danicley de Aguiar, coordinator of Greenpeace Brazil’s Indigenous Peoples’ campaign told AFP that gold taken from protected areas was likely laundered through such schemes.

Fernando Lucas, president of the Federation of Gold Miners’ Cooperatives in Para, told AFP that he was sick of miners being “branded as criminals”.

He said many want to operate legally but get caught up in red tape and called for a more “organized, sustainable model.”



– ‘Temptation’ –



Chief Bepdjo is also dealing with divisions among his own people, some of whom — including his predecessor — support wildcat mining.

The dispute pushed some village residents to move to the other side of the river.

“Very often the miners themselves come to talk to us, offering money, saying ‘you’ll have a car, you’ll have women’, so it’s a temptation. A young person who doesn’t think it through will want those things,” said Takagmoro Kaiapo, 25, son of the former chief.

Saturday, May 16, 2026

The Hormuz Choke Point And The Twilight Of Petroleum – OpEd



May 16, 2026 
By Juan Cole


After British troops had beaten German Field Marshal Erwin Rommel’s tank forces at the Second Battle of El Alamein in Egypt on November 4, 1942, British Prime Minister Winston Churchill declared, “This is not the end. It is not even the beginning of the end. But it is perhaps the end of the beginning.”

The same might now be said about humanity’s struggle to defeat the dire threat of global climate change caused by our never-ending burning of fossil fuels. The illegal war of aggression on Iran, abruptly launched on February 28, 2026, by the governments of Israeli Prime Minister Benjamin Netanyahu and President Donald Trump, has indeed provoked a global energy crisis of a unique kind. The Iranians, of course, responded by imposing a blockade on the Strait of Hormuz that promptly removed about 11% to 13% of all petroleum from the world market, day after day, week after week, setting off a cascade of steeply rising prices for diesel fuel, gasoline, and natural gas.

Donald Trump’s brilliant idea of joining the blockade of that Strait should be considered the equivalent of coming to the aid of a strangulation victim by pressing a pillow over his or her face. The shortages hit first in Asia (particularly reliant on fuel flows from the Strait of Hormuz) and Africa and then in Europe. The German air carrier Lufthansa only recently cut 20,000 summer flights for fear of fuel shortages (and it will undoubtedly prove all too typical). Nor will the U.S., despite having its own supplies of oil, escape such negative developments. While there have been oil price crunches before, as in the 1970s and 1980s, this one is different. It’s a watershed moment globally, heralding the Ragnarök — the Norse “twilight of the gods” — of petroleum.

Forced to Run on One Engine

While American drivers have been complaining this spring about high prices at the pump, in the Netherlands and Denmark consumers are already paying the stunning equivalent of around $10 a gallon. In Asia, where reliance on petroleum that travels through the Strait of Hormuz is enormous, the situation is far worse, since there are already distinct shortages of fuel of a staggering and still growing kind. Philippines President Ferdinand “Bongbong” Marcos, Jr., recently declared a national energy emergency, as his country had only a little over a month’s worth of petroleum left. Hundreds of gas stations, nearly 3% of the country’s total, announced temporary closures, resulting in long lines at those that remained open.

South Korea, which unwisely dragged its feet when it came to turning to green energy, is now scrambling to find just three months’ supply of petroleum from non-Hormuz sources, but the world’s 10th-largest economy faces a potential economic cataclysm. The government has already restricted parking for commuters. The rise in gasoline costs has led many consumers to simply stay home if they can, spurring a buying spree of novels and video games. South Korean President Lee Jae Myung, a human rights lawyer, implicitly blamed Israel’s blatant disregard for International Humanitarian Law for the calamity, engaging in a days-long internet flame war with Tel Aviv in early April.

In Bangladesh, the state-owned Eastern Refinery has been forced to close due to a lack of crude oil to process. Meanwhile, the government has allowed gasoline and diesel prices to rise by 11% to 15%, putting pressure on the costs of transportation, agricultural production, and consumer items, while creating endless lines for what gasoline remains. With boat operators, ferries, and fishing boats unable to secure enough diesel fuel for their motors, a whole range of livelihoods are being hurt. As Al Jazeera reported, Bangladeshi ferry operator Abir Hussain typically offered this complaint: “We are struggling to maintain our regular schedule. We are forced to run on just one engine to conserve diesel, due to the fuel shortages.”

Heavily dependent on fossil gas for its electricity plants, Bangladesh has already suffered widespread outages, harming factories and schools — and, of course, even if the Strait of Hormuz were to reopen soon, the pain throughout Asia is likely to be long-lasting.

Stagflation

Oil price crises are hardly new. Because of a boycott of Europe and the United States by Arab oil producers during the 1973 Arab-Israeli War, and the rising power of the Organization of Petroleum-Exporting Countries (OPEC) cartel, the price of petroleum actually quadrupled between 1970 and 1980. That energy crisis produced economic malaise in the United States, where the economy became afflicted with “stagflation” — both stagnation and inflation, two phenomena not usually found together.

So much capital flowed to the oil states of the Persian Gulf then, particularly Saudi Arabia, Kuwait, and Iran, that President Richard Nixon and Secretary of State Henry Kissinger schemed to avoid deflation in the U.S. by pressuring those countries to buy enormous amounts of American military equipment. Over the decades, that oil-arms nexus would drive the United States toward ever more ruinous conflicts in the Gulf region, since arms manufacturers and oil companies, two of the more influential corporate sectors in American politics, had a motive for lobbying repeatedly to get Washington to intervene there. And of course, their behind-the-scenes pressure to continue the country’s forever wars in that region would be bolstered by the Israel Lobby.

The Islamic Revolution in Iran in 1978-1979, the Iran-Iraq War of 1980-1988, the Gulf War of 1990-1991, and the Russian invasion of Ukraine in 2022 were all further shocks to the energy system. The major industrialized countries responded to such challenges by increasing their fuel efficiency, while switching to nuclear power, coal, and natural gas for ever more of their electricity and heating. In the U.S., in part because of government regulation, the average passenger car went from a fuel efficiency of 13.5 miles per gallon in 1975 to 27.5 miles per gallon by 1985, while global per capita use of petroleum declined after the 1970s oil shock and has never recovered.

The Great Hormuz Fuel Crisis


The Great Hormuz Fuel Crisis of 2026 has the potential to permanently reduce petroleum demand far more radically. The deadlock in the Strait of Hormuz has all the hallmarks of a chronic ailment. After all, Israel and Iran have struck each other four times now — in April and then October 2024, in the 12-day war of June 2025 (when President Trump joined in), and again this spring. None of those four military actions successfully established Iranian deterrence, leaving Tehran eternally vulnerable to further Israeli and U.S. strikes.

And yet Israeli Prime Minister Netanyahu’s determination to destroy Iran’s industrial base has also failed so far. Of course, that doesn’t mean the Israeli elite won’t try again once their country and the U.S. have built back up their depleted stores of interceptors and so become more confident that Tel Aviv will be able to withstand further Iranian ballistic missile and drone barrages. In addition, Iran’s new claim that, from here on in, it will have the right to charge tolls for passage through the Strait of Hormuz, though it may have some support in international law, is unacceptable to the U.S., the Arab Gulf states, and Israel, and so forms an irritant likely to lead to further conflict.

In short, Israel and the United States have destabilized the Persian Gulf and global oil and natural gas supplies for the foreseeable future.

How different today’s crisis is from the Middle Eastern one set off by Washington’s Operation Desert Storm, aimed at expelling the Iraqi military from Kuwait in 1991. Since the strength of Baathist Iraq then lay in its armored forces, the U.S. and its allies could use their own armor and air power to bottle them up inside Iraq and deny that country’s military the ability to further destabilize the Persian Gulf region.

In contrast, since then Iran has put much of its military energy into ballistic missile and drone production, weapons that, no matter what the U.S. and Israel do, can continue to strike sites across the Middle East. While petroleum prices doubled during the Iraqi occupation of Kuwait in 1990, they quickly fell once it was over. Subsequent losses from sanctions on Iraq and oil fires in Kuwait were offset by increases in OPEC production, especially in Saudi Arabia. That country is, in fact, one of the few major swing producers left in the world. The U.S. and Russia still produce a great deal of crude oil, but they use most of it themselves. On the other hand, because of its vast oil fields and small population, Saudi Arabia can vary its production, lowering it when the price falls too low for its liking and increasing it substantially during a crisis.

Phantasmagoric Assertions


At the moment, however, the Saudis can’t substantially offset the shortfall in crude oil through Hormuz because it’s caught up in the crisis itself and its pipeline to the Red Sea has limited extra capacity; nor, despite President Trump’s phantasmagoric assertions, can the U.S., since it’s not a net exporter but a net consumer of crude oil. It is, however, a net exporter of liquid hydrocarbons, including hydrocarbon gas liquids (HGLs), primarily propane, which make up about 25% of total U.S. gross “petroleum” exports. Propane, however, is mainly used for heating buildings and you can’t fill up on HGLs at the pump. Since gasoline and diesel prices are set by the world market, the U.S. production of crude will not keep American prices at the pump from rising.

The oil supply for vehicles is relatively inelastic. And yet a world that used roughly 104 million barrels a day of petroleum in 2025 has been limping along this spring with as little as 92 million barrels a day, while chronic shortages loom, even once the Strait of Hormuz is reopened, since numerous major refineries in the region have been badly damaged. Demand also will remain relatively inelastic as long as owners locked into vehicles with internal combustion engines have to keep on buying gasoline and diesel fuel (no matter how high the prices go) to get to work, ensuring that those prices will remain elevated until the supply increases substantially.

The Hormuz crisis, however, differs from past oil shocks in significant ways. As a start, it’s happening at a time when scientists are discovering ever more unsettling consequences from fossil-fuel-caused climate change — most recently, a potentially calamitous slowdown in or possibly even future collapse of the crucial Atlantic Ocean current system by midcentury, which could have a devastating impact on the planet. As a result, wise governments have an increasing motivation to enact policies encouraging the electrification of public transport of every sort and so much else as well.

In addition, the recent conflict in the Strait of Hormuz signals an ongoing geopolitical volatility in the heart of oil country that may not subside, even though the latest oil war has arrived at a time when there is an increasingly robust alternative to gas-powered transportation in the form of electric vehicles (EVs), to which consumers are already switching in striking numbers. Countries are also turning ever more to wind and solar power, no small thing since the crunch in the Strait also affects the global distribution of natural gas from Qatar. The five countries in the European Union with the most green energy are set to savenearly $10 billion more in costs than fossil-heavy EU countries.

The Elephant in the Showroom

In the United Kingdom, EV sales spiked a record 24% in March over the same month last year. Moreover, there was a potentially game-changing turning point there, as the average cost of an electric vehicle for the first time fell below that of a similar gasoline-powered car. Meanwhile, renewable energy generation in England also swelled strikingly.

Asia, however, was the place that saw the most dramatic changes. Vietnam now makes its own electric car, the Vinfast, and its sales skyrocketed by 127% in March. Some 40% of new vehicle sales there last year were already electric, a percentage that is expected to rise rapidly in the wake of the Strait of Hormuz disaster. Vietnamese schoolteacher Dao Thi Hue caught the mood of the moment while visiting a Vinfast dealership by saying, “Driving an EV is so much better than driving a petroleum vehicle, in terms of costs and also in terms of saving fuel, queuing to fill up.”

Of course, the elephant in the global EV showroom is China. In 2024, it produced more than 12 million electric, hybrid, and fuel-cell vehicles (also known as “New Energy Vehicles”). That figure amounts to 70% of global production and EVs accounted for 53% of new car registrations in China last year. Moreover, China already has the ability to produce 20 million EVs annually, so it is only producing at 65% capacity. And the rush to buy electric vehicles isn’t just focused on passenger vehicles but also on heavy trucks.

Although domestic sales in China faced some headwinds because government incentives for such purchases lapsed late last year, March sales of 1.25 million New Energy Vehicles there were up slightly from the previous year and recent sales were up 67% from this February’s. The big news, however, is that Chinese EV growth was driven primarily by exports, a record 371,000 units in March, a 130% increase over the same month in 2025. Chinese lithium battery exports were also up in the first quarter by 50.1%, a figure that is only expected to grow as the effects of the Hormuz blockade tear through the world economy. Overall, China’s Greentech exports are surging.

Periodic Shocks


Count on this: ever more consumers are likely to purchase electric vehicles globally, since they’re immune to the periodic price shocks caused by Persian Gulf instability. Moreover, their sticker prices continue to fall. New discoveries of lithium resources and new, less expensive batteries also promise to bring their prices down even further. Moreover, China’s Contemporary Amperex Technology Company (or CATL), a giant battery manufacturer, has just announced that it has developed a new battery that will enable an electric vehicle to travel 932 miles on a single charge (which, by the way, would only take six and a half minutes to complete).

These are potentially internal-combustion-engine-killing developments. Governments of countries lacking significant oil resources like India are already committing themselves to vast build-outs of charging stations and creating ever more incentives to buy EVs and phase out gas-driven vehicles. Because the Hormuz crisis is hitting Asia (with its vast population of 4.8 billion people) hardest, the new and somewhat frantic commitment by so many of its governments and its consumers to the electrification of transport will have the effect of further dropping prices globally for electric batteries and other technology and so will be pivotal in the fight against climate change.

In short, count on one thing: however devastating the immediate effects of the disaster in the Strait of Hormuz, the latest horrific Iran war is also helping to change the world forever in ways that could prove positive indeed.

This article appeared at FPIF and was originally published in TomDispatch.

Global Oil Stockpiles Plunge as Iran War Chokes Supply

  • The IEA said global oil inventories fell by 250 million barrels over March and April as supply losses mounted.

  • Restricted tanker traffic through the Strait of Hormuz has shut in more than 14 million barrels a day of oil.

  • OPEC trimmed its 2026 oil demand growth forecast while traders remained broadly bullish on crude.

The West’s international energy watchdog has warned that oil stockpiles were being drained at a record rate last month as the US’s war in Iran continues to choke supply in an “unprecedented” supply shock.

The International Energy Agency revealed that around 4m barrels of oil a day were tapped from back-up supplies in April, within a detailed report on the global market.

It said: “More than ten weeks after the war in the Middle East began, mounting supply losses from the Strait of Hormuz are depleting global oil inventories at a record pace … Observed global inventories, including oil on water, were drawn down by 250m barrels over March and April, or 4m barrels per day.”

The war has, in effect, closed the Strait of Hormuz through which tankers usually carry around a fifth of the world’s seaborne crude. The fragile ceasefire has not significantly boosted traffic.

The IEA labelled it “an unprecedented supply shock”, in words that chimed with fears of a looming fuel supply crunch, including of jet fuel into the peak summer holiday travel season.

The report included some stark numbers on the impact of the war: “With Hormuz tanker traffic still restricted, cumulative supply losses from Gulf producers already exceed 1bn barrels with more than 14 mb/d of oil now shut in.

“Global oil supply declined by a further 1.8m b/d in April to 95.1m b/d, taking total losses since February to 12.8m b/d.”

‘Unprecedented supply shock’

The agency said that “the petrochemical and aviation sectors are currently most affected” and pointed to price spikes ahead, as well as a “plunge” in “refinery crude throughputs” by 4.5m b/d” in the second quarter.

Then came an update from OPEC, the representative body of some of the world’s most influential oil-exporting nations.

It cut its 2026 forecast for global oil demand growth to 1.2m b/d in its latest Monthly Oil Market report, trimmed from 1.4m b/d in the previous edition.

It described the revised rise as “healthy”, but it reflected overall cuts to demand forecasts for the second, third and fourth quarters of the year.

OPEC said oil market traders trimmed their bets on a higher oil price, as “net long positions declined over April, mainly in ICE Brent”, the main international crude benchmark. It cited “profit-taking from previously accumulated long positions” amid “mixed geopolitical signals and potential de-escalation” in the Gulf.

Nonetheless, OPEC said, “Hedge funds and other money managers maintained a broadly bullish stance on the crude oil market” in the month.

During April, Brent Crude peaked at around $140 a barrel, depending on the exactitudes of the contracts concerned. Crude for physical delivery in the month crossed above $141, at the height of the tensions, while the shortest-term futures contracts hit $138 a barrel.

On Wednesday, Brent was at $107.43, down on the day by about 0.3 percent.

Crude over $100 and beyond has stoked a wave of concern about an inflation shock, caused by higher energy prices rippling through the global economy.

The IEA said: “A weaker economic environment and demand-saving measures will increasingly impact fuel use”.

Russian oil exports rise

But the Paris-based outfit also pointed to increased supply away from the world’s crude-producing heartlands.

It said: “Producers outside of the Middle East also pushed output higher and lifted exports to record levels in response to the crisis.

“Indeed, 2026 supply growth expectations from the Americas have been revised up by more than 600 kb/d since the start of the year, to 1.5m b/d on average.”

And there was insight into the knock-on effects for a nation also at war, in Ukraine rather than the Middle East:

“Russia’s crude oil exports have also risen, as repeated attacks on its refineries have cut domestic use and led to higher shipments, while the United States temporarily waived sanctions on Russian oil on water,” the agency said.

Overall, the IEA expects global oil demand to fall by 2.4m b/d year-on-year in the second quarter.

“For now, the steepest losses are seen in the petrochemical sector, where feedstock availability is becoming increasingly constrained. Aviation activity is also running well below normal levels”.

By City AM

The Fuel Shortage That Could Reshape Global Trade

  • Declining diesel and jet fuel supplies are making long-distance global trade increasingly unsustainable.

  • That decline points to a future world divided into two major economic spheres centered on the Americas and East Asia.

  • Energy scarcity, rather than politics alone, is driving geopolitical conflict and economic restructuring.

The war with Iran is not going well. It is difficult to supply US troops with adequate food and other necessities. With summer arriving soon, the region will soon be an even more inhospitable place for ground troops to fight. An underlying problem is that the world economy was reaching resource limits even before the Iran War began, adding to the difficulties.

The most pressing resource limit is distillate fuel oil–an industry term for what we think of as diesel and jet fuel. This fuel is heavily used in transportation. It is also used extensively in agriculture and industry. Somehow, the system needs to cut back on these fuels for international trade so that more fuel is available for agriculture and industry.

President Trump of the US and President Xi of China will be meeting in Beijing on May 14-15. This meeting would seem to be the perfect time to start reorganizing the world with shorter trade routes, so that the world economy uses less fuel for transportation. China and the US are the two great powers in the world. Keeping trade mostly within the two areas shown in Figure 1 would be a way of using fuel oil more sparingly.

World trade
Figure 1. Map of the world showing how Gail Tverberg expects Presidents Xi and Trump might split most world trade. The vast majority of trade would take place within the two areas shown. Within these groupings, the centers of trade might be the yellow areas shown.

An advantage of such a plan, besides saving on fuel, is that it could stop the Iran War without clearly declaring one side the winner or loser. In this post, I will attempt to explain the situation further.

[1] Based on the ideas of Dr. Mohammed Marandi, I believe that China might be able to mediate a settlement between the US and Iran.

Dr. Marandi was born in the United States of Iranian parents. He currently lives in Iran, where he is a professor at the University of Tehran. In the video, One Country Quietly Won this War, he points out that, often, when two countries battle each other, neither one emerges as the clear winner. Both of them are damaged by the war. The actual winner may be a country that does not seem to be directly involved in the war.

In the video referenced above, Dr. Marandi discusses three historical situations in which a nation not directly involved in a conflict gained stature by being the “adult in the room,” when two other nations battled each other. In this case, Dr. Marandi believes that China could very well be the country that can exert enough pressure on both sides to get them to accept a proposed solution. He says that China has acted behind the scenes to bring about the ceasefire, and that Trump has acknowledged China’s role.

Dr. Marandi suggests the idea that the upcoming meeting of the two presidents might be an opportune moment to make major steps toward a mutually agreed settlement. I believe that the underlying problem is that there isn’t enough energy (particularly oil) to support a world population of over eight billion. Dividing up markets in the way I have suggested would at least somewhat alleviate the shortage. Of course, there may be other terms of a settlement, as well. In addition, not all the terms may be determined precisely at this time.

[2] The world doesn’t have enough diesel and jet fuel to maintain the current level of trade across the Atlantic and Pacific Oceans.

Diesel
Figure 2. Combined diesel and jet fuel supply, divided by world population, based on data of the 
2025 Statistical Review of World Energy, published by the Energy Institute.

Figure 2 shows that per capita diesel and jet fuel started to drop at the time of the Great Financial Crisis in 2007-2009. Their supply took a larger step down in 2020, and it hasn’t completely recovered. In 2026, the Iran War has taken out more crude oil supply, for an unknown period of time.

Diesel and jet fuel are both very important as transportation fuels. Diesel is also important in agriculture because it provides the power needed for heavy machinery to till fields, even under the most adverse conditions. Diesel provides the power needed for large commercial trucks, many trains, and ships. Earth moving equipment is also typically operated by diesel fuel.

If the amount of trade across the Atlantic and Pacific could be greatly reduced, it would help alleviate the shortage of distillates. Of course, the tourist trade would also need to be greatly reduced. With recent spikes in aviation fuel prices, many flights are being cut. Some airlines, including Spirit Airlines in the US, are going bankrupt. The problem is starting to solve itself, but more changes will be needed.

[3] Looking at population and oil supplies, the Americas seems likely to come out somewhat ahead.

[3a] Comparing the populations of the two areas, the World ex Americas is much larger, and its population is growing faster.

population
Figure 3. World population between the Americas and the world excluding the Americas, based on data of the 
2025 Statistical Review of World Energy, published by the Energy Institute.

President Xi (leading one hemisphere) would get the very large and still rapidly growing part of the world population. President Trump would get a smaller and less rapidly growing share of the world population. Between 2021 and 2024, world population grew an average of 0.6% per year in the Americas, and an average of 0.9% per year in the World ex Americas.

[3b] The Americas seem to have an advantage with respect to crude oil production.

Crude oil
Figure 4. Crude oil production per capita, based on data of the US Energy Information Administration.

It makes sense to look at energy amounts on a per-capita basis because the quantity needed depends on the number of people requiring the benefits of transportation, agriculture, and industry. On this basis, crude oil production of the Americas has clearly been outshining that of the World ex Americas. It is higher on a per-capita basis. In addition, the amount available has been increasing in recent years.

Figure 5, below, shows total crude oil production (not per capita).

Crude oil
Figure 5. Crude oil production of the Americas compared to that of the World ex Americas, based on data of the US Energy Information Administration.

Figure 5 suggests that since 2005, crude oil production for the World ex Americas has hardly increased. In fact, total extraction has decreased since 2019. A person viewing this data might conclude that crude oil production in this area may already be past its peak.

On the other hand, Figure 5 shows that oil production of the Americas has increased by about 65% since 2005. Many people believe that US shale production will soon decline. At the same time, however, increases seem likely in several other countries in the Americas, including Canada, Brazil, Argentina, and Guyana. Thus, while crude oil production for the Americas may decline in the near future, its decline is likely to be gradual.

[3c] Crude oil production by geographical area outside of the Americas shows declining production in all areas.

Prediction
Figure 6. Crude oil production by geographical area for the World ex Americas, based on data from the US Energy Information Administration. Russia+ refers to Russia plus nearby countries that used to be part of the Soviet Union.

Figure 6 shows that Europe’s crude oil production started its permanent decline in 2001. Asia-Pacific’s production hit a maximum in 2010, and it has been declining since. Africa’s peak oil production took place in 2008, and it has been mostly declining since.

Russia+, which I use to refer to Russia plus nearby countries that used to be part of the Soviet Union, has an unusual production pattern. Its crude oil production started to decline in 1989, two years before the collapse of the Soviet Union in 1991. (This collapse in crude oil production likely contributed to the collapse of the Soviet Union.) Crude oil production for Russia+ rose from 1998 to 2019.

Russia+’s production took a big step down in 2020, and it has not been able to recover since. A person might think that Russia+’s oil production was post peak, even before the 2022 conflict with Ukraine broke out. If an oil exporter doesn’t have enough oil to export, it tends to create financial problems within an economy. Participating in a war can appear to mitigate the country’s problems.

Many people assume that the Middle East has endless inexpensive-to-produce crude oil. I don’t think that this is the case. Crude oil production of the Middle East (Figure 6 above) hit two similar peaks in 2016 and 2018, and it has been lower in years since then. I think that Middle Eastern oil production is likely past peak partly because of depletion issues and partly because most countries in the area require high taxes on oil exports to provide subsidies for their ever-growing populations. This leads OPEC to try to maintain high prices. Lower crude oil production since 2018 is consistent with the hypothesis that oil production for the Middle East is mostly post-peak.

One additional difficulty of the World ex Americas is that it is so heavily populated that it cannot access tight oil that might be available without displacing a large number of residents. Another difficulty is that very old wells, such as those in Saudi Arabia and Iran, are ones that it might not be possible to restart if they are shut in for an extended time.

[4] In terms of mining and manufacturing, the Americas seems to come out behind the World ex Americas.

The World ex Americas has rapidly ramped up mining and manufacturing. Coal has been the preferred industrial fuel, with natural gas consumption also increasing.

Consumption
Figure 7. Energy consumption by type for World ex Americas, based on data of the 
2025 Statistical Review of World Energy, based on data of the Energy Institute. Fossil fuel extenders include hydroelectric power, nuclear power, wind power, solar power, biofuels including ethanol, and any other types of add-ons to fossil fuels.

Figure 7 shows that the energy consumption of the World ex Americas started increasing more rapidly after China joined the World Trade Organization in 2001. The consumption of coal and natural gas has especially increased.

Consumption
Figure 8. Energy consumption by type for the Americas, based on data of the 
2025 Statistical Review of World Energy, based on data of the Energy Institute.

The economies of the Americas have tended to shift towards service economies. Emphasis has been placed on fuel efficiency. Homes are now better insulated, light bulbs are more efficient, and engines of vehicles are more efficient. As a result, energy consumption within the Americas has tended to stay flat (Figure 8).

I have used the same scale on Figure 8 as on Figure 7 to emphasize how low energy consumption for the Americas is now, relative to the rest of the world. After US oil prices first rose to a high level in 1973, the US started transferring manufacturing to lower-wage countries. Southeast Asian countries began to be favored after 2001. Moving manufacturing abroad helped hold down US energy consumption and helped make the cost of goods to the consumer cheaper.

The problem today is that moving so much manufacturing elsewhere has made it difficult for the Americas to go back to producing its own goods, including clothing, furniture, and transformers for electrical systems. Supply lines for a particular item, such as a refrigerator, often run through many countries around the world.

[5] The full transition to the configuration shown on Figure 1 could take well over 100 years.

Changes, such as new supply lines and the new placement of major population areas, cannot happen very quickly. But I expect that some of the same underlying principles that guided these decisions in the past will continue to guide them in the future.

For example, infrastructure (roads, bridges, pipelines, and (today) long distance electricity transmission lines) seems to be the most difficult part of an economy to maintain because of the huge amount of energy required. Before the days of fossil fuels, I understand that slave labor was often used to build and maintain infrastructure. Similarly, slave labor was sometimes used to staff the mines needed to support the building of such infrastructure. As we lose fossil fuels, we will need to think about reducing our reliance on infrastructure.

One low-infrastructure approach used in the past was to build cities near bodies of water, so that fewer roads would be needed. Boats could be used to transport goods without building roads or bridges. If fish were available, they could be caught and used for food. In Figure 1, I am imagining that we will head back in this direction, with cities especially along navigable bodies of water and the ocean.

Unless we discover ways to replace fossil fuel energy, I would expect that the system will tend to go down in the reverse order of when it was put up. In general, electricity was last to be added, after coal, oil, and gas from coal. Electrification was first built in cities; then electricity transmission lines were added to provide electricity to rural areas. Above-ground lines tend to be damaged in storms, leading to a need for frequent repairs. Because of this issue, I would expect rural electricity to disappear quite quickly, unless it is generated at the location where it is used.

Natural gas shipped as Liquefied Natural Gas (LNG) was added very late. Its cost tends to be much higher than that of pipeline gas. I expect it to disappear quite quickly.

A full transition to the two trading zones shown on Figure 1 would require a huge number of changes in supply lines. A 2025 chart by Visual Capitalist shows how much control China has over critical minerals. It states, “China controls key materials such as graphite, rare earths, and gallium–essential for green technologies and defense industries.” While the US has started working on its own production of minerals, it will also need to develop the processing capability for these minerals. Putting all of this in place will likely take many decades. This is a significant factor in the 100-year estimate.

[6] If energy supplies are limited, I would expect population centers closest to fuel sources to be especially favored.

Writers today talk about possibly running short of diesel and jet fuel in a few weeks or months. Clearly, if a population center is at a location where there are both oil wells and refineries for the oil from those wells, the area has a better chance of having fuel than an island in the middle of the Pacific with nothing to sell other than tourism. Thus, Houston, Texas, will likely have fuel, even when models suggest there will be shortfalls in many places.

Often writers concerned about resource shortages talk about the core and the periphery. The core needs to be near whatever source of energy is available that can be used to help grow crops and transport goods. At this point, oil is the fuel that is closest to filling this need. Electricity is a nice-to-have, and it can provide services like refrigeration for food. But it is not good for paving roads or building bridges. So, it can only add to the mix, not substitute completely for oil. Slave labor is the closest substitute for oil that the world has discovered. We would rather not go back to using such an approach.

[7] I am concerned that a major downward economic step will be necessary in the upcoming months and years, but I am hopeful that the meeting between President Trump and President Xi on May 14-15 can help smooth the way.

We are at a point at which it is clear that the current organization of the global economy is not working. I hope that the meeting between Trump and Xi will help put an end to fighting in the Middle East. I also hope it will help pave the way for a new path forward.

I expect that the path ahead will be a difficult one, both for the people in the Americas and the people in the World ex Americas. While the US has considerable energy supplies, it lacks manufacturing capability for many everyday goods. The US is also lacking in many critical minerals, especially those used in making high-tech products. With its high wages, it will need extremely high prices, unless processes can be made very efficient.

The World ex Americas may have an even more difficult step down. Its oil supply was already more stretched before the Iran War. Its overpopulation problem seems to be worse than that of the Americas. The World ex Americas is more directly affected by the damage done in the Middle East and the resulting loss of oil supply. And there seem to be many groups looking for war, even if the US leaves.

Let’s all keep our fingers crossed that the upcoming meeting will have a beneficial effect, both in the short term and in working toward a longer-term solution.

By Gail Tverberg via Our Finite World