Part III: Real Threat of Our Economy: A Decrease in the EROEI Ratio that Decreases the Energy Surplus

 

Today's EROEI Ratio only 3:1 ?

Source: commodityintelligence.com

Unfortunately, the EROEI ratio has inevitably been decreasing over time. The abundance of energy surpluses in the early 20th century seems to be just the past. Today, it will consume more amount of energy to produce the same amount of energy as it was used to be. 

Consequently, the investment costs to produce fuel would be likely to increase while the amount of output remains constant or unchanged.

This consequence would lead to decreasing economic productivity which results in a gradual decline in economic growth and development. It is unsurprisingly that our cost of living is relentlessly rising from year to year as well as the weakening purchasing power of our money.

Some research has showed us that the global EROEI ratio has been continuing to decline from 100:1 in the 1930s, then decreased again to 18:1 in 1990. Even today the ratio is only 3:10?

It explains comprehensively why the costs of gaining energy are getting more expensive from year to year. Furthermore, it means that it would probably lead to the rising costs we have to spend and exert to drive our economy. As a result, our economic productivity would be declining and economic stagnation is inevitable.

Consequently, with rising living costs, more percentage of our money will be only spent on essentials, we are left with less amount of money to save and invest. We wouldn't possibly enjoy higher standard of living anymore if this situation persisted. It seems possible that our modern civilization would return to the hunting age again due to the shrinking energy surplus.

Then, why has our energy surplus been decreasing from time to time?