New wells must be constantly drilled in what has been termed a "Red Queen Race". The best-performing areas are drilled first, leaving more marginal areas for later. Of course, this means that within a few years production must decline as the drillers ultimately lose their "Red Queen Race" with physical reality as the drilling costs of ever-more wells collide with the diminishing returns from ever-more-marginal areas. Many estimates are that by 2017 it will be abundantly clear that this race is being lost--and with it all the hype about energy independence goes down the drain--along with trillions of stock and asset valuation, likely hundreds of trillions in Wall street derivatives, swaps, and other exotic financial instruments.
So, given this, what the hydrocarbon-energy industry, its investors and speculators on Wall Street, along with their wholly owned subsidiaries in Washington D.C., require is to keep anyone from pointing all of this out to the general public for as long as possible.
So here is the overall big picture:
The basic idea is that total global financial wealth is about one quadrillion dollars. However, the portion of that corresponding to physical wealth production (i.e. World GDP) is, at most, about one percent of that figure. All the rest is financial speculation--using money to make more money without actually ever providing any goods or services--Financial masturbation in plainer terms. This "game" is only possible if the actual physical economy (production of goods and services) is expanding rapidly enough.
Due to peaking of net-energy production this real production is, instead, slowing rapidly. Like a game of musical chairs this means that the masturbatory frenzy of financial speculation becomes increasingly untethered from the underlying real economy. As investors come to sense this, the value of the financial instruments based on speculation diminishes. At some point panic must set in as their true worthlessness becomes evident. Obama, Magueri, et al., are doing all in their power to stave off this panic via disinformation. (7)
Next, as a final, futile strategy to stave off economic reckoning, our political leaders are attempting to forestall their self-inflicted doom by cannibalizing real-world assets such as social security, living standards, retirement pensions, etc. At the same time, we, repeatedly, are falsely promised that there is endless fossil-fuel energy coming to us all--just around the corner. Concomitantly, the harmful environmental consequences of fracking fossil-fuel effects, principally global warning, are either overtly denied (Republicans) or effectively ignored (Obama and Congressional Democrats).
As fracking is much more energy-intensive and polluting than conventional oil-and-gas drilling, the effects of climate change, water depletion, contamination of vast areas, etc., rapidly intensify during the "Red Queen Race" build up. Despite attempts by the industry to mislead by looking only at initial production from the best-performing locations, the net energy return on energy invested (EROEI) of fracked oil and gas is about 5:1 and below. Our industrial infrastructure is designed to run on an EROEI of about 100:1.
Perhaps John Michael Greer has summed up the resultant reality most succinctly: "I'd like to suggest, in fact, that the unspoken subtext behind the financial crises of recent years is precisely that the real economy of goods and services is no longer growing enough to support the immense financial economy that parasitizes it." (8)
The Wall Street banksters, the subservient Congress, Presidency and Judiciary who slavishly obey these self-proclaimed "Masters of the Universe" now have their backs to the wall. Reality is now about to strike and deal their financial house of cards a lethal blow. Economic collapse, likely amid ever-worsening climate, pollution, and natural-resource depletion catastrophes, is upon them--and upon us. (9)
Police-state repression utilizing all of the NSA's electronic-spying capabilities is an absolute certainty. As they cannot avert it--only delay it--they know it is coming and are preparing for it. Basically the police power of the state will be used to protect the vast ILLEGITIMATE wealth, and the physical security of the ruling 001 percent of our population. Totalitarianism is coming to America--and the planet--quite soon, in order to accomplish these objectives. Again, with their backs against the wall, they have no other choice that does not require giving up their plundered power and wealth--something that they would never do.
However, the amoral, unquenchable greed of the few should not triumph over the rights of the many, and indeed
over the continuance of the planet's biosphere. Our duty to all humanity and to
all life is to stop these criminals in their tracks for all time. Our duty is
to facilitate the emergence of an ecologically rational, humane, and democratic, future with
liberty and justice for ALL--not a few. Time is short.