If we assume (let’s play economist for a while) that the integrated global production system can not function without the petroleum industry you are 100% correct. According to the Etp Model the petroleum industry is now losing $2.2 trillion per year. Most of that loss is now being created from the reserves that they are extracting, but can no longer replace. The industry is burning through its asset base at a horrendous rate, while still being able to maintain a positive cash flow.
That $2.2 trillion per year is manifesting itself in the underlying deflation that the Central Banks are now attempting to combat with their printing policies. Once the petroleum industries’ cash flow begins to go negative there will be no amounting of printing in the world that will be able to turn the tide. That is likely to be the world’s biggest “OH SHIT” day since the fall of the Western Roman Empire.
The industries’ cash flow will turn negative when they can no longer demand a high enough price for crude to cover their lifting cost. Unfortunately, we don’t know what the world wide average lifting cost is, but we do know that it is going up as the price of oil is going down. Once it is reached the debt based monetary system will collapse, and supply chains will shut down. The chances are very high that it will take most of the remaining fossil fuel industry with it.
As we have been saying the world is not going to gently slide down the back side of Hubbert’s Curve; we are going to hit a thermodynamic wall. A wall built from the most basic building blocks know to physics. I am posting this because those with no knowledge of our present situation will have almost no chance of survival after it occurs.

Quelle

Saludos

el mar

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Ave Big Pharma, morituri te salutant