On a Red Queen: Diesel to get Diesel

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Everything you depend on to survive, including food, depends on diesel.

Look with your own eyes at how much diesel it takes to get diesel today.

The US has already fracked about 2 million of these wells, and because they deplete quickly to nothing in only a few years, about 13,000 new wells must be fracked every year, just to tread water.

The red queen is eating a bigger and bigger share of your honey.

Now you understand why debt is growing exponentially, despite most people feeling poorer.

What you may not know is that almost all of these companies are losing money. Mainly because it takes so much diesel to get diesel.  They have survived to date because investors are pouring money into them to make sure they don’t miss out on the technology miracle that is making the US “energy independent”.

Use your own eyes to decide how much of this miracle is from technology, and how much is from diesel brute force.

Now close your eyes and visualize the Canadian tar sands. It’s almost the same story.

Now you understand why, when common sense finally returns to the stock market, the impact on our diesel dependent lifestyles will be dramatic, rather than gentle.

If, on the other hand, the price of oil increases enough to make these companies profitable, many citizens and businesses, who are already struggling to make ends meet, will be forced to cut back on the amount of oil they use, which will make them less productive, which will cause the economy to contract, which will cause the stock market to contract, which will cause many of these fracking companies to go bankrupt, which will kill the red queen, which will cause the total quantity of fracked oil to deplete at about 30% per year, which will make it much much harder to make ends meet, and eat.

Now you understand the nature of our predicament.

As with climate change, we do not as adults discuss the declining net energy red queen.

We simply deny the problem exists.

Here is the latest data from Art Berman that re-confirms most of the above.

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