Friday, 2 November 2007

Can't drill your way out of geological depletion

For people who often claim: "We'll just drill more!" this graph should explain some of the basics of how reality works:

(click image for a larger version)

The image clearly shows, that while efforts to drill more have grown exponentially, the actual production has still decreased at about linear speed since mid 80's.

It's a race against infinitely reciding horizon. You can't catch up with it, but you can slightly slow down the speed at which it distances itself from you.

As a pattern, this should also remind you: don't try to fix geological natural reality with economics. Reality will always win.