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Hydrocarbon liquefaction: viability as a peak oil mitigation strategy

Listed author(s):
  • Höök, Mikael
  • Fantazzini, Dean
  • Angelantoni, André
  • Snowden, Simon

Current world capacity of hydrocarbon liquefaction is around 400,000 barrels per day (kb/d), providing a marginal share of the global liquid fuel supply. This study performs a broad review of technical, economic, environmental, and supply chains issues related to coal-to-liquids (CTL) and gas-to-liquids (GTL). We find three issues predominate. First, significant amounts of coal and gas would be required to obtain anything more than a marginal production of liquids. Second, the economics of CTL plants are clearly prohibitive, but are better for GTL. Nevertheless, large scale GTL plants still require very high upfront costs, and for three real world GTL plants out of four, the final cost has been so far approximately three times that initially budgeted. Small scale GTL holds potential for associated gas. Third, CTL and GTL both incur significant environmental impacts, ranging from increased greenhouse gas emissions (in the case of CTL) to water contamination. Environmental concerns may significantly affect growth of these projects until adequate solutions are found.

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Paper provided by University Library of Munich, Germany in its series MPRA Paper with number 46957.

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Date of creation: 2013
Handle: RePEc:pra:mprapa:46957
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  1. Hammami, Ramzi & Frein, Yannick & Hadj-Alouane, Atidel B., 2008. "Supply chain design in the delocalization context: Relevant features and new modeling tendencies," International Journal of Production Economics, Elsevier, vol. 113(2), pages 641-656, June.
  2. Chedid, R. & Kobrosly, M. & Ghajar, R., 2007. "The potential of gas-to-liquid technology in the energy market: The case of Qatar," Energy Policy, Elsevier, vol. 35(10), pages 4799-4811, October.
  3. Hammami, Ramzi & Frein, Yannick & Hadj-Alouane, Atidel B., 2009. "A strategic-tactical model for the supply chain design in the delocalization context: Mathematical formulation and a case study," International Journal of Production Economics, Elsevier, vol. 122(1), pages 351-365, November.
  4. Höök, Mikael & Hirsch, Robert & Aleklett, Kjell, 2009. "Giant oil field decline rates and their influence on world oil production," Energy Policy, Elsevier, vol. 37(6), pages 2262-2272, June.
  5. Castelo Branco, David A. & Szklo, Alexandre S. & Schaeffer, Roberto, 2010. "Co2e emissions abatement costs of reducing natural gas flaring in Brazil by investing in offshore GTL plants producing premium diesel," Energy, Elsevier, vol. 35(1), pages 158-167.
  6. Hirsch, Robert L., 2008. "Mitigation of maximum world oil production: Shortage scenarios," Energy Policy, Elsevier, vol. 36(2), pages 881-889, February.
  7. Fantazzini, Dean & Höök, Mikael & Angelantoni, André, 2011. "Global oil risks in the early 21st century," Energy Policy, Elsevier, vol. 39(12), pages 7865-7873.
  8. Henry Chen, Y.-H. & Reilly, John M. & Paltsev, Sergey, 2011. "The prospects for coal-to-liquid conversion: A general equilibrium analysis," Energy Policy, Elsevier, vol. 39(9), pages 4713-4725, September.
  9. Rong, Fang & Victor, David G., 2011. "Coal liquefaction policy in China: Explaining the policy reversal since 2006," Energy Policy, Elsevier, vol. 39(12), pages 8175-8184.
  10. Russell Smyth & Paresh Kumar Narayan & Hongliang Shi, 2010. "Inter-fuel Substitution in the Chinese Iron and Steel Sector," Monash Economics Working Papers 22-10, Monash University, Department of Economics.
  11. Hossain, Ijaz & Gulen, Gurcan, 2007. "Lifecycle analysis of different urban transport options for Bangladesh," Energy Policy, Elsevier, vol. 35(10), pages 4909-4918, October.
  12. Mantripragada, Hari Chandan & Rubin, Edward S., 2011. "Techno-economic evaluation of coal-to-liquids (CTL) plants with carbon capture and sequestration," Energy Policy, Elsevier, vol. 39(5), pages 2808-2816, May.
  13. Erturk, Mehmet, 2011. "Economic analysis of unconventional liquid fuel sources," Renewable and Sustainable Energy Reviews, Elsevier, vol. 15(6), pages 2766-2771, August.
  14. McCollum, David L. & Ogden, Joan M., 2009. "Future impacts of coal distribution constraints on coal costs," Transportation Research Part E: Logistics and Transportation Review, Elsevier, vol. 45(3), pages 460-471, May.
  15. Oke, Adegoke & Gopalakrishnan, Mohan, 2009. "Managing disruptions in supply chains: A case study of a retail supply chain," International Journal of Production Economics, Elsevier, vol. 118(1), pages 168-174, March.
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