How the World Is Realizing that Water Is "Blue Gold"

By Mark Clayton, Christian Science Monitor. Posted May 29, 2008.

Public fountains are dry in Barcelona, Spain, a city so parched there's a €9,000 ($13,000) fine if you're caught watering your flowers. A tanker ship docked there this month carrying 5 million gallons of precious fresh water -- and officials are scrambling to line up more such shipments to slake public thirst.

Barcelona is not alone. Cyprus will ferry water from Greece this summer. Australian cities are buying water from that nation's farmers and building desalination plants. Thirsty China plans to divert Himalayan water. And 18 million southern Californians are bracing for their first water-rationing in years.

Water, Dow Chemical Chairman Andrew Liveris told the World Economic Forum in February, "is the oil of this century." Developed nations have taken cheap, abundant fresh water largely for granted. Now global population growth, pollution, and climate change are shaping a new view of water as "blue gold."

Water's hot-commodity status has snared the attention of big equipment suppliers like General Electric as well as big private water companies that buy or manage municipal supplies -- notably France-based Suez and Aqua America, the largest US-based private water company.

Global water markets, including drinking water distribution, management, waste treatment, and agriculture are a nearly $500 billion market and growing fast, says a 2007 global investment report.

But governments pushing to privatize costly to maintain public water systems are colliding with a global "water is a human right" movement. Because water is essential for human life, its distribution is best left to more publicly accountable government authorities to distribute at prices the poorest can afford, those water warriors say.

"We're at a transition point where fundamental decisions need to be made by societies about how this basic human need -- water -- is going to be provided," says Christopher Kilian, clean-water program director for the Boston-based Conservation Law Foundation. "The profit motive and basic human need [for water] are just inherently in conflict."

Will "peak water" displace "peak oil" as the central resource question? Some see such a scenario rising.

"What's different now is that it's increasingly obvious that we're running up against limits to new [fresh water] supplies," says Peter Gleick, a water expert and president of the Pacific Institute for Studies in Development, Environment, and Security, a nonpartisan think tank in Oakland, Calif. "It's no longer cheap and easy to drill another well or dam another river."

The idea of "peak water" is an imperfect analogy, he says. Unlike oil, water is not used up but only changes forms. The world still has the same 326 quintillion gallons, NASA estimates.

But some 97 percent of it is salty. The world's remaining accessible fresh-water supplies are divided among industry (20 percent), agriculture (70 percent), and domestic use (10 percent), according to the United Nations.

Meanwhile, fresh-water consumption worldwide has more than doubled since World War II to nearly 4,000 cubic kilometers annually and set to rise another 25 percent by 2030, says a 2007 report by the Zurich-based Sustainable Asset Management (SAM) group investment firm.

Up to triple that is available for human use, so there should be plenty, the report says. But waste, climate change, and pollution have left clean water supplies running short.

"We have ignored demand for decades, just assuming supplies of water would be there," Dr. Gleick says. "Now we have to learn to manage water demand and -- on top of that -- deal with climate change, too."

Population and economic growth across Asia and the rest of the developing world is a major factor driving fresh-water scarcity. The earth's human population is predicted to rise from 6 billion to about 9 billion by 2050, the UN reports. Feeding them will mean more irrigation for crops.

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Mark Clayton is a staff writer for the Christian Science Monitor.

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