Geology follows the laws of physics, especially the first law of thermodynamics which states roughly that you can’t make something out of nothing. Economics, on the other hand, follows the law of perpetual growth, which says that we can make more and more out of an Earth that’s not getting any bigger.
One of these two has to be wrong, and thermodynamics has been spot on for about four billion years, while economics has a spotty history of less than two hundred. It’s a disagreement whose reconciliation becomes more expensive as time goes on.
A few days ago, I came across a very good article explaining this issue with specific reference to oil. It’s clear, short and well supported. I hope you’ll take a look.
