IDEAS home Printed from https://ideas.repec.org/p/pra/mprapa/46957.html
   My bibliography  Save this paper

Hydrocarbon liquefaction: viability as a peak oil mitigation strategy

Author

Listed:
  • Höök, Mikael
  • Fantazzini, Dean
  • Angelantoni, André
  • Snowden, Simon

Abstract

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.

Suggested Citation

  • 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.
  • Handle: RePEc:pra:mprapa:46957
    as

    Download full text from publisher

    File URL: https://mpra.ub.uni-muenchen.de/46957/1/MPRA_paper_46957.pdf
    File Function: original version
    Download Restriction: no

    References listed on IDEAS

    as
    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.
    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. Capellán-Pérez, Iñigo & Mediavilla, Margarita & de Castro, Carlos & Carpintero, Óscar & Miguel, Luis Javier, 2014. "Fossil fuel depletion and socio-economic scenarios: An integrated approach," Energy, Elsevier, vol. 77(C), pages 641-666.
    2. Ringsmuth, Andrew K. & Landsberg, Michael J. & Hankamer, Ben, 2016. "Can photosynthesis enable a global transition from fossil fuels to solar fuels, to mitigate climate change and fuel-supply limitations?," Renewable and Sustainable Energy Reviews, Elsevier, vol. 62(C), pages 134-163.

    More about this item

    Keywords

    hydrocarbon liquefaction; gas-to-liquids; CTL; GTL; coal-to-liquids; peak oil;

    JEL classification:

    • Q32 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Nonrenewable Resources and Conservation - - - Exhaustible Resources and Economic Development
    • Q38 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Nonrenewable Resources and Conservation - - - Government Policy (includes OPEC Policy)
    • Q42 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Energy - - - Alternative Energy Sources
    • Q48 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Energy - - - Government Policy

    NEP fields

    This paper has been announced in the following NEP Reports:

    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:pra:mprapa:46957. 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: (Joachim Winter). General contact details of provider: http://edirc.repec.org/data/vfmunde.html .

    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.