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Energy Return on Investment for Norwegian Oil and Gas from 1991 to 2008

Author

Listed:
  • Leena Grandell

    (Department of Physics and Astronomy, Box 353, SE-75121, Uppsala University, Uppsala, Sweden)

  • Charles A.S. Hall

    (Graduate Program in Environmental Science, College of Environmental Science and Forestry, State University of New York, Syracuse, NY 13210, USA)

  • Mikael Höök

    (Department of Physics and Astronomy, Box 353, SE-75121, Uppsala University, Uppsala, Sweden)

Abstract

Norwegian oil and gas fields are relatively new and of high quality, which has led, during recent decades, to very high profitability both financially and in terms of energy production. One useful measure for profitability is Energy Return on Investment, EROI. Our analysis shows that EROI for Norwegian petroleum production ranged from 44:1 in the early 1990s to a maximum of 59:1 in 1996, to about 40:1 in the latter half of the last decade. To compare globally, only very few, if any, resources show such favorable EROI values as those found in the Norwegian oil and gas sector. However, the declining trend in recent years is most likely due to ageing of the fields whereas varying drilling intensity might have a smaller impact on the net energy gain of the fields. We expect the EROI of Norwegian oil and gas production to deteriorate further as the fields become older. More energy-intensive production techniques will gain in importance.

Suggested Citation

  • Leena Grandell & Charles A.S. Hall & Mikael Höök, 2011. "Energy Return on Investment for Norwegian Oil and Gas from 1991 to 2008," Sustainability, MDPI, vol. 3(11), pages 1-21, October.
    • Handle: RePEc:gam:jsusta:v:3:y:2011:i:11:p:2050-2070:d:14547
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    References listed on IDEAS

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    Cited by:

    1. Alexandre Poisson & Charles A. S. Hall, 2013. "Time Series EROI for Canadian Oil and Gas," Energies, MDPI, vol. 6(11), pages 1-20, November.
    2. Luciano Celi, 2021. "Deriving EROI for Thirty Large Oil Companies Using the CO2 Proxy from 1999 to 2018," Biophysical Economics and Resource Quality, Springer, vol. 6(4), pages 1-12, December.
    3. 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.
    4. Höök, Mikael & Tang, Xu, 2013. "Depletion of fossil fuels and anthropogenic climate change—A review," Energy Policy, Elsevier, vol. 52(C), pages 797-809.
    5. Charles Guay-Boutet, 2023. "Estimating the Disaggregated Standard EROI of Canadian Oil Sands Extracted via Open-pit Mining, 1997–2016," Biophysical Economics and Resource Quality, Springer, vol. 8(1), pages 1-21, March.
    6. Hongshuo Yan & Lianyong Feng & Jianliang Wang & Yuanying Chi & Yue Ma, 2021. "A Comprehensive Net Energy Analysis and Outlook of Energy System in China," Biophysical Economics and Resource Quality, Springer, vol. 6(4), pages 1-14, December.
    7. Fizaine, Florian & Court, Victor, 2015. "Renewable electricity producing technologies and metal depletion: A sensitivity analysis using the EROI," Ecological Economics, Elsevier, vol. 110(C), pages 106-118.
    8. David Grassian & Daniel Olsen, 2019. "Lifecycle Energy Accounting of Three Small Offshore Oil Fields," Energies, MDPI, vol. 12(14), pages 1-23, July.
    9. 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, vol. 8(2), pages 1-22, January.
    10. Chen, Xuejun & Lu, Hailong & Gu, Lijuan & Shang, Shilong & Zhang, Yi & Huang, Xin & Zhang, Le, 2022. "Preliminary evaluation of the economic potential of the technologies for gas hydrate exploitation," Energy, Elsevier, vol. 243(C).
    11. Salehi, Mohammad & Khajehpour, Hossein & Saboohi, Yadollah, 2020. "Extended Energy Return on Investment of multiproduct energy systems," Energy, Elsevier, vol. 192(C).
    12. Jonas S. Solbakken, 2023. "Status of Foam as a Liquid Blocking Agent in Porous Media: A Review," Energies, MDPI, vol. 16(13), pages 1-32, June.
    13. Xie, Minghua & Wei, Xiaonan & Chen, Chuanglian & Sun, Chuanwang, 2022. "China's natural gas production peak and energy return on investment (EROI): From the perspective of energy security," Energy Policy, Elsevier, vol. 164(C).
    14. Hu, Yan & Hall, Charles A.S. & Wang, Jianliang & Feng, Lianyong & Poisson, Alexandre, 2013. "Energy Return on Investment (EROI) of China's conventional fossil fuels: Historical and future trends," Energy, Elsevier, vol. 54(C), pages 352-364.
    15. Hallock, John L. & Wu, Wei & Hall, Charles A.S. & Jefferson, Michael, 2014. "Forecasting the limits to the availability and diversity of global conventional oil supply: Validation," Energy, Elsevier, vol. 64(C), pages 130-153.
    16. Rye, Craig D. & Jackson, Tim, 2018. "A review of EROEI-dynamics energy-transition models," Energy Policy, Elsevier, vol. 122(C), pages 260-272.
    17. Hall, Charles A.S. & Lambert, Jessica G. & Balogh, Stephen B., 2014. "EROI of different fuels and the implications for society," Energy Policy, Elsevier, vol. 64(C), pages 141-152.
    18. Alexander Safronov & Anton Sokolov, 2014. "Preliminary Calculation of the EROI for the Production of Crude Oil and Light Oil Products in Russia," Sustainability, MDPI, vol. 6(9), pages 1-19, September.

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