IDEAS home Printed from https://ideas.repec.org/a/eee/rensus/v15y2011i6p2766-2771.html

Economic analysis of unconventional liquid fuel sources

Author

Listed:
  • Erturk, Mehmet

Abstract

In this study, the potential of the alternative liquid fuel sources to enter into the liquid fuel market is analyzed based on the cost structures of these sources. Firstly, the current unconventional sources are classified as syncrude, synthetic fuels and biofuels and some basic information including production methods and current production amounts about these alternative sources is explained. Secondly, the production costs are examined to calculate the market entrance prices and shut-down prices for the technologies used to produce liquid fuels from the unconventional sources. Lastly, the structure of the liquid fuel market and the potential of alternative fuels in the market are discussed. Based on the analysis, it is concluded that the liquid fuel market can be characterized as a competitive market in which three factors play important role on determining the entrance into the market. These factors are (1) the corresponding oil prices for entrance and shut-down prices, (2) total capital cost of the project (the level of sunk cost), and (3) the capital cost per daily barrel of capacity. The evaluation of these factors together shows that biofuels are the most preferable option followed by gas-to-liquids. In terms of market entrance price, syncrude is the most advantageous option, but its high capital cost increases the risk. On the other hand, coal-to-liquids is the most risky one with high market entrance price, large initial capital cost and high margin between entrance and shut-down prices.

Suggested Citation

  • Erturk, Mehmet, 2011. "Economic analysis of unconventional liquid fuel sources," Renewable and Sustainable Energy Reviews, Elsevier, vol. 15(6), pages 2766-2771, August.
    • Handle: RePEc:eee:rensus:v:15:y:2011:i:6:p:2766-2771
    as

    Download full text from publisher

    File URL: http://www.sciencedirect.com/science/article/pii/S1364032111001316
    Download Restriction: Full text for ScienceDirect subscribers only
    ---><---

    As the access to this document is restricted, you may want to

    for a different version of it.

    References listed on IDEAS

    as
    1. AfDB AfDB, . "African Statistical Journal Vol. 8," African Statistical Journal, African Development Bank, number 56 edited by Koua Louis Kouakou, March.
    2. repec:aen:journl:2000v21-03-a02 is not listed on IDEAS
    3. AfDB AfDB, . "The AfDB Statistics Pocketbook 2009," AfDB Statistics Pocketbook, African Development Bank, number 4 edited by Koua Louis Kouakou.
    4. AfDB AfDB, . "African Statistical Journal Vol. 6," African Statistical Journal, African Development Bank, number 54 edited by Koua Louis Kouakou, March.
    5. AfDB AfDB, . "African Statistical Yearbook 2009," African Statistical Yearbook, African Development Bank, number 58 edited by Koua Louis Kouakou.
    6. AfDB AfDB, . "African Statistical Journal Vol. 3," African Statistical Journal, African Development Bank, number 51 edited by Koua Louis Kouakou, March.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Cong, Rong-Gang & Shen, Shaochuan, 2013. "Relationships among Energy Price Shocks, Stock Market, and the Macroeconomy: Evidence from China," MPRA Paper 112211, University Library of Munich, Germany.
    2. Qi, Tianyu & Zhou, Li & Zhang, Xiliang & Ren, Xiangkun, 2012. "Regional economic output and employment impact of coal-to-liquids (CTL) industry in China: An input–output analysis," Energy, Elsevier, vol. 46(1), pages 259-263.
    3. Höök, Mikael & Fantazzini, Dean & Angelantoni, André & Snowden, Simon, 2013. "Hydrocarbon liquefaction: viability as a peak oil mitigation strategy," MPRA Paper 46957, University Library of Munich, Germany.
    4. Sajjad, H. & Masjuki, H.H. & Varman, M. & Kalam, M.A. & Arbab, M.I. & Imtenan, S. & Rahman, S.M. Ashrafur, 2014. "Engine combustion, performance and emission characteristics of gas to liquid (GTL) fuels and its blends with diesel and bio-diesel," Renewable and Sustainable Energy Reviews, Elsevier, vol. 30(C), pages 961-986.

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Saygin, D. & Patel, M.K. & Worrell, E. & Tam, C. & Gielen, D.J., 2011. "Potential of best practice technology to improve energy efficiency in the global chemical and petrochemical sector," Energy, Elsevier, vol. 36(9), pages 5779-5790.
    2. Dong, C.G., 2012. "Feed-in tariff vs. renewable portfolio standard: An empirical test of their relative effectiveness in promoting wind capacity development," Energy Policy, Elsevier, vol. 42(C), pages 476-485.
    3. Labintan, Adeniyi Constant, 2010. "Evaluation of The Necessary of Agriculture Public Expenditure for Poverty Reduction and Food Security in Benin," MPRA Paper 24247, University Library of Munich, Germany.
    4. Labintan, Adeniyi Constant, 2010. "Evaluation of The Necessary of Agriculture Public Expenditure for Poverty Reduction and Food Security in Benin," MPRA Paper 24446, University Library of Munich, Germany, revised 13 Jul 2010.
    5. Georg Hirte & Stefan Tscharaktschiew, 2012. "The optimal subsidy on electric vehicles in a metropolitan area - a SCGE study for Germany," ERSA conference papers ersa12p324, European Regional Science Association.
    6. Akbar, Yusaf & Németh, Adél & Niemeier, Hans-Martin, 2014. "Here we go again…the Permanently Failing Organization: An application to the airline industry in Eastern Europe," Journal of Air Transport Management, Elsevier, vol. 35(C), pages 1-11.

    More about this item

    Keywords

    ;

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:eee:rensus:v:15:y:2011:i:6:p:2766-2771. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Catherine Liu (email available below). General contact details of provider: http://www.elsevier.com/wps/find/journaldescription.cws_home/600126/description#description .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.