Very interesting article, a real "must read" along with some of the comments that follow it.
The general public, and even most petroleum industry insiders are not aware of the massive decrease in Energy Return on Investment (EROI) that is occurring in petroleum developments. The implications of EROI falling off a cliff are even less understood by nearly all.
I intuitively thought that we were experiencing rapid decreases in EROI but didn't know how to quantify. This was based on observations of some plays I thought would have many years of development essentially stopping, and observations of statistics I'd done on WCSB gas production on wells by vintage. The stats were shocking, to put it mildly. The article below fills in some blanks on how to calculate EROI and also describes what the implications are.
North American Natural Gas Production and EROI Decline
Many energy stocks, including Encana and Breaker were at or very close to all time highs today.
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