Posting an excellent paper with lots of interesting graphs from Prof. Charles Hall, net energy (EROI) guru, and his graduate students on the declining net energy of primary fuels and the economic vulnerability of the US. This is crucially important stuff that is still not properly recognized in energy policy or economic theory. “Peak Oil, EROI, Investments and the Economy in an Uncertain Future”
A related post by Hall’s graduate student (and all around great guy) David Murphy on The Oil Drum this week is also worth a read: “The Net Hubbert Curve: What Does It Mean?“
For my Energy and Capital article this week, I deconstruct the inflation/deflation debate, and conjecture that we may have reached an inflection point in economic history, where the price at which energy is high enough to sustain new production is the same price at which things become too expensive, leaving us no option but to downsize.