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Net energy yield from production of conventional oil

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  • Dale, Michael
  • Krumdieck, Susan
  • Bodger, Pat

Abstract

Historic profitability of bringing oil to market was profound, but most easy oil has been developed. Higher cost resources, such as tar sands and deep off-shore, are considered the best prospects for the future. Economic modelling is currently used to explore future price scenarios commensurate with delivering fuel to market. Energy policy requires modelling scenarios capturing the complexity of resource and extraction aspects as well as the economic profitability of different resources. Energy-return-on-investment (EROI) expresses the profitability of bringing energy products to the market. Net energy yield (NEY) is related to the EROI. NEY is the amount of energy less expenditures necessary to deliver a fuel to the market. This paper proposes a pattern for EROI of oil production, based on historic oil development trends. Methodology and data for EROI is not agreed upon. The proposed EROI function is explored in relation to the available data and used to attenuate the International Energy Agency (IEA) world oil production scenarios to understand the implications of future declining EROI on net energy yield. The results suggest that strategies for management and mitigation of deleterious effects of a peak in oil production are more urgent than might be suggested by analyses focussing only on gross production.

Suggested Citation

  • Dale, Michael & Krumdieck, Susan & Bodger, Pat, 2011. "Net energy yield from production of conventional oil," Energy Policy, Elsevier, vol. 39(11), pages 7095-7102.
  • Handle: RePEc:eee:enepol:v:39:y:2011:i:11:p:7095-7102
    DOI: 10.1016/j.enpol.2011.08.021
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    Cited by:

    1. Zhaoyang Kong & Xiucheng Dong & Bo Xu & Rui Li & Qiang Yin & Cuifang Song, 2015. "EROI Analysis for Direct Coal Liquefaction without and with CCS: The Case of the Shenhua DCL Project in China," Energies, MDPI, Open Access Journal, vol. 8(2), pages 1-22, January.
    2. repec:gam:jeners:v:11:y:2018:i:2:p:313-:d:129815 is not listed on IDEAS
    3. Krumdieck, S. & Page, S., 2013. "Retro-analysis of liquid bio-ethanol and bio-diesel in New Zealand," Energy Policy, Elsevier, vol. 62(C), pages 363-371.
    4. Arvesen, Anders & Hertwich, Edgar G., 2015. "More caution is needed when using life cycle assessment to determine energy return on investment (EROI)," Energy Policy, Elsevier, vol. 76(C), pages 1-6.
    5. Antal, Miklós, 2014. "Green goals and full employment: Are they compatible?," Ecological Economics, Elsevier, vol. 107(C), pages 276-286.
    6. Ramos Tercero, Elia Armandina & Sforza, Eleonora & Bertucco, Alberto, 2013. "Energy profitability analysis for microalgal biocrude production," Energy, Elsevier, vol. 60(C), pages 373-379.
    7. Brandt, Adam R. & Dale, Michael & Barnhart, Charles J., 2013. "Calculating systems-scale energy efficiency and net energy returns: A bottom-up matrix-based approach," Energy, Elsevier, vol. 62(C), pages 235-247.
    8. repec:eee:energy:v:144:y:2018:i:c:p:232-242 is not listed on IDEAS
    9. Victor Court & Florian Fizaine, 2015. "Estimations of very long-term time series of global energy return-on-investment (EROI) of coal, oil and gas productions," Working Papers 1510, Chaire Economie du climat.
    10. Bo Xu & Lianyong Feng & William X. Wei & Yan Hu & Jianliang Wang, 2014. "A Preliminary Forecast of the Production Status of China’s Daqing Oil field from the Perspective of EROI," Sustainability, MDPI, Open Access Journal, vol. 6(11), pages 1-21, November.
    11. repec:gam:jeners:v:10:y:2017:i:4:p:534-:d:95815 is not listed on IDEAS

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    Keywords

    EROI; Peak oil; Energy quality;

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