IDEAS home Printed from https://ideas.repec.org/a/gam/jsusta/v3y2011i11p2080-2104d14661.html
   My bibliography  Save this article

The EROI of Conventional Canadian Natural Gas Production

Author

Listed:
  • Jon Freise

    () (Principal Engineer, 3501 Cedar Ave So, Minneapolis, MN 55407, USA)

Abstract

Canada was the world’s third largest natural gas producer in 2008, with 98% of its gas being produced by conventional, tight gas, and coal bed methane wells in Western Canada. Natural gas production in Western Canada peaked in 2001 and remained nearly flat until 2006 despite more than quadrupling the drilling rate. Canada seems to be one of many counter examples to the idea that oil and gas production can rise with sufficient investment. This study calculated the Energy Return on Energy Invested and Net Energy of conventional natural gas and oil production in Western Canada by a variety of methods to explore the energy dynamics of the peaking process. All these methods show a downward trend in EROI during the last decade. Natural gas EROI fell from 38:1 in 1993 to 15:1 at the peak of drilling in 2005. The drilling intensity for natural gas was so high that net energy delivered to society peaked in 2000–2002, while production did not peak until 2006. The industry consumed all the extra energy it delivered to maintain the high drilling effort. The inability of a region to increase net energy may be the best definition of peak production. This increase in energy consumption reduces the total energy provided to society and acts as a contracting pressure on the overall economy as the industry consumes greater quantities of labor, steel, concrete and fuel. It appears that energy production from conventional oil and gas in Western Canada has peaked and entered permanent decline.

Suggested Citation

  • Jon Freise, 2011. "The EROI of Conventional Canadian Natural Gas Production," Sustainability, MDPI, Open Access Journal, vol. 3(11), pages 1-25, November.
  • Handle: RePEc:gam:jsusta:v:3:y:2011:i:11:p:2080-2104:d:14661
    as

    Download full text from publisher

    File URL: http://www.mdpi.com/2071-1050/3/11/2080/pdf
    Download Restriction: no

    File URL: http://www.mdpi.com/2071-1050/3/11/2080/
    Download Restriction: no

    References listed on IDEAS

    as
    1. Alan A. Carruth & Mark A. Hooker & Andrew J. Oswald, 1998. "Unemployment Equilibria And Input Prices: Theory And Evidence From The United States," The Review of Economics and Statistics, MIT Press, vol. 80(4), pages 621-628, November.
    2. Bullard, Clark W. & Herendeen, Robert A., 1975. "The energy cost of goods and services," Energy Policy, Elsevier, vol. 3(4), pages 268-278, December.
    3. Cleveland, Cutler J., 2005. "Net energy from the extraction of oil and gas in the United States," Energy, Elsevier, vol. 30(5), pages 769-782.
    4. David J. Murphy & Charles A.S. Hall & Michael Dale & Cutler Cleveland, 2011. "Order from Chaos: A Preliminary Protocol for Determining the EROI of Fuels," Sustainability, MDPI, Open Access Journal, vol. 3(10), pages 1-20, October.
    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. Raugei, Marco & Sgouridis, Sgouris & Murphy, David & Fthenakis, Vasilis & Frischknecht, Rolf & Breyer, Christian & Bardi, Ugo & Barnhart, Charles & Buckley, Alastair & Carbajales-Dale, Michael & Csala, 2017. "Energy Return on Energy Invested (ERoEI) for photovoltaic solar systems in regions of moderate insolation: A comprehensive response," Energy Policy, Elsevier, vol. 102(C), pages 377-384.
    2. 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.
    3. repec:gam:jeners:v:10:y:2017:i:5:p:614-:d:97365 is not listed on IDEAS
    4. 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.
    5. 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.
    6. Roman Nogovitsyn & Anton Sokolov, 2014. "Preliminary Calculation of the EROI for the Production of Gas in Russia," Sustainability, MDPI, Open Access Journal, vol. 6(10), pages 1-15, September.
    7. Hiroaki Yaritani & Jun Matsushima, 2014. "Analysis of the Energy Balance of Shale Gas Development," Energies, MDPI, Open Access Journal, vol. 7(4), pages 1-21, April.

    More about this item

    Keywords

    EROI; energy return on investment; net energy; Western Canada;

    JEL classification:

    • Q - Agricultural and Natural Resource Economics; Environmental and Ecological Economics
    • Q0 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - General
    • Q2 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Renewable Resources and Conservation
    • Q3 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Nonrenewable Resources and Conservation
    • Q5 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Environmental Economics
    • Q56 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Environmental Economics - - - Environment and Development; Environment and Trade; Sustainability; Environmental Accounts and Accounting; Environmental Equity; Population Growth
    • O13 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - Agriculture; Natural Resources; Environment; Other Primary Products

    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:gam:jsusta:v:3:y:2011:i:11:p:2080-2104:d:14661. See general information about how to correct material in RePEc.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (XML Conversion Team). General contact details of provider: http://www.mdpi.com/ .

    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 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.

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

    IDEAS is a RePEc service hosted by the Research Division of the Federal Reserve Bank of St. Louis . RePEc uses bibliographic data supplied by the respective publishers.