Friday, March 27, 2015

Oil Drilling: another Seneca Cliff

The concept of an impending "Seneca cliff" seems to be making inroads in the debate, even though it may not be given that name. For example, watch the animation above on ""

(h/t Joe Smith of the Doomstead Diner)


  1. I can't figure out how to embed that into the a post on the Diner, glad you got it embedded here. :)

    Also, the Anon ID is Ralph Emerson or Roger Ebert here, not Joe Smith. LOL. ;)


    1. It was one of your clones, anyway....

  2. Really amusing how the articla ends. They suppose that the fracking bust will not have permanent consequencies on the extraction industry, and on the US economy at large.

    They suppose that lower prices will offeset the job losses, and also the slowdown on the general economy (which adds to the oil price crunch).

    The bad idea behind this article is ignoring all the huge debt that is behind those "fraklogs", debt that has to be repaid, or, again, we will have a global financial/economical meltdown.

    Also, the "fracklogs" are not profitable if the price does not come up to 100$/barrel equivalent, or more.

    They don't even hint that, as the oil is currently stuck in place on account of insufficient price, it could stay there for a very, very long time as well, if the demand does not rise, and if consumers does not have the money to pay this intrinsically high priced oil.

    It could be that it will stay in the ground forever: it is a concrete possibility.



Ugo Bardi is a member of the Club of Rome and the author of "Extracted: how the quest for mineral resources is plundering the Planet" (Chelsea Green 2014)