Category Archives: Financial Implications

Why EIA, IEA, and Randers’ 2052 Energy Forecasts are Wrong

What is the correct way to model the future course of energy and the economy? There are clearly huge amounts of oil, coal, and natural gas in the ground.  With different approaches, researchers can obtain vastly different indications. I will … Continue reading

Posted in Energy policy, Financial Implications | Tagged , , , , , , | 455 Comments

Why a Finite World is a Problem

Why is a finite world a problem? I can think of many answers: 1. A finite world is a problem because we and all of the other creatures living in this world share the same piece of “real estate.” If humans … Continue reading

Posted in Financial Implications | Tagged , , , , | 437 Comments

The Real Oil Extraction Limit, and How It Affects the Downslope

There is a lot of confusion about which limit we are reaching with respect to oil supply. There seems to be a huge amount of “reserves,” and oil production seems to be increasing right now, so people can’t imagine that … Continue reading

Posted in Financial Implications | Tagged , , , , , , | 347 Comments

Diminishing Returns, Energy Return on Energy Invested, and Collapse

What do diminishing returns, energy return on energy invested (EROI or EROEI), and collapse have to do with each other? Let me start by explaining the connection between Diminishing Returns and Collapse. Diminishing Returns and Collapse We know that historically, … Continue reading

Posted in Financial Implications | Tagged , , , | 491 Comments

What’s Ahead? Lower Oil Prices, Despite Higher Extraction Costs

Nearly everyone believes that oil prices will trend higher and higher, allowing increasing amounts of oil to be extracted. This belief is based on the observation that the cost of extraction is trending higher and higher. If we are to … Continue reading

Posted in Financial Implications | Tagged , , , , | 429 Comments