Nice summary, Nate.

I've also been using the Red Queen analogy lately in so far as it accurately describes not only the natural gas situation in North America but also global oil production.


At the top of the hill, the Red Queen begins to run, faster and faster. Alice runs after the Red Queen, but is further perplexed to find that neither one seems to be moving. When they stop running, they are in exactly the same place. Alice remarks on this, to which the Red Queen responds: "Now, here, you see, it takes all the running you can do to keep in the same place". And so it may be with coevolution. Evolutionary change may be required to stay in the same place. Cessation of change may result in extinction.

This analogy is also used in Evolutionary Biology to describe the relationships between predator and prey.  The predator evolves to get better at catching prey, which selects for prey that are better at avoiding predators.  Net effect:  same number of prey caught and an awesome sets of adaptations.  

At some point, however, there are diminishing returns on this process based on thermodynamic, genetic, and physical limits.  For example, race horses haven't gotten any faster in a long time.