Gutting Germany — Part 3: Diesel

A story of economic suicide in the face of resource depletion

Photo by Jennifer Latuperisa-Andresen on Unsplash
Roosevelt and Morgenthau, who have been described as “two of a kind” — source

If diesel gets on short supply, higher inflation is all but guaranteed — together with shortages of all kinds.

“Within months, almost every region on the planet will face a danger of a diesel shortage just as supply crunches in nearly all the world’s markets have worsened inflation and hurt growth”

Photo by Fredrick Filix on Unsplash

This leaves us with a loss of 500000 barrels of diesel every single day.

The EU has managed to navigate itself (again) into an immense predicament and has just secured even higher inflation for 2023.

Photo by Jeff W on Unsplash

Amid all this, U.S. oil production growth is slowing down. The shale revolution, as we knew it until a few years ago, is no longer in full-growth mode. And it may never return to it. […] There are numerous reasons for this slowdown, driven, like output growth, by the shale patch. In many parts of the patch, for instance, drillers are running out of so-called sweet spots — low-cost acreage that has driven much of the shale boom.

If you can count the acres, you can be sure that one day you will run out of them. Together with the oil underneath.

This is how the oil age ends: it simply won’t worth doing it anymore.

Photo by CHUTTERSNAP on Unsplash
Screenshot from Electricity Maps. Note how Germany is reliant on coal and gas fired power plants lacking wind actually blowing (despite the huge installed capacity, not to mention solar).

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