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Culture War Roundup for the week of July 3, 2023

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My mistake, I found his look at fracking: https://www.ecosophia.net/a-sense-of-deja-vu/

The state of the fracking industry bears close examination here, not least because—as I’ve discussed in these essays rather more than once already—it’s one of the places where my predictions, like those of most other peak oil writers, turned out to be wrong. What misled us is easy enough to explain. There are very good reasons why extracting liquid fuels from shales by hydrofracturing is not an economically viable solution to the depletion of conventional petroleum reserves; that remains as true as it has ever been. What everyone in the peak oil scene missed was that this didn’t matter, because politics trumps economics.

Of all people, I should have caught onto this, because I was busy making the same argument in a different context. Longtime readers will recall the flurry of predictions that came out during the oil crisis of 2008-2009, insisting that the global economy was about to grind to a halt, leaving seven billion people to starve. I pointed out then that those predictions all assumed that the only response governments would have to a catastrophic market crisis was to sit on their hands saying in plaintive tones, “Whatever shall we do?” If the global economy had ground to a halt—as of course it never did—the political authorities could have intervened in dozens of effective ways, as they had done in plenty of economic crises over the previous century.

And of course that’s exactly the logic that drove the fracking boom. It’s quite true that extracting liquid fuels from shales by hydrofracturing is a miserably poor option in economic terms, and also in terms of net energy—that’s the equivalent in energy terms of profit, how much energy you have left after you subtract all the energy you had to consume to get it. From the standpoint of short term politics, which is the only kind of politics that matters in America today, those points were entirely irrelevant. All that mattered was that fracking could boost liquid fuel production for a few years and stave off a financial and political crisis, and so gimmicks were found to provide effectively unlimited credit to the fracking industry. If you can borrow as much money as you want and can just keep on rolling over the debts, anything is affordable.

So does that mean that the problem is solved, and no oil crisis will ever again rise up like the Shadow in Tolkien’s fantasies? Of course not. Just as the North Slope and North Sea oilfields depleted steadily once extraction began in earnest, US oil shale reserves are being depleted steadily. Oil is a finite resource, and the faster you pump it, the sooner it runs out. Gandalf had it right: “Always, after a defeat and a respite, the Shadow takes another shape and grows again”—and the ragged upward movements in the price of oil over the last few years is one of the warning signs that the current respite is drawing to a close.