Posts tagged “eroei”
Today’s article continues the series covering my recent trip to the Athabasca oil sands around Fort McMurray, Alberta. This is an annual trip that the Canadian government hosts for energy journalists, and expenses for the trip were paid for by the Canadian government.
Previous articles in this series include:
- Oil Sands and the Environment – Part I
- Oil Sands and the Environment – Part II
- How Alberta’s Oil Sands are Produced
Today I want to discuss in more detail the two companies that we visited on this trip: Canadian Natural Resources Limited (NYSE: CNQ, TSE: CNQ) and Cenovus Energy (NYSE: CVE, TSE: CVE). I will detail the cost of oil sands production via the different methods these companies utilize, as well as the energy return on energy invested (EROEI) of extracting the bitumen. CONTINUE»
I am traveling some over the next two weeks, and did not have a chance to record my weekly video segment this week. However, last Friday I was a guest on Alan Colmes’ show on Fox News Radio, so I will share that this week instead. I had been a guest on his show last month to discuss whether President Obama bears responsibility for high gas prices.
As I said then, gas prices are outside the control of a sitting U.S. president. As an aside, gas prices appear to have peaked for now and are on the way down. Does anyone who blamed Obama for higher prices think he is responsible for bringing them back down? That is in fact a dangerous issue to campaign on, because if gasoline prices fall between now and the election — and you have made a big deal out of how they are the President’s responsibility — guess what? President Obama now takes credit for falling gas prices.
Anyway, I am drifting off topic here. On his show, Alan and I discussed my new book Power Plays. Some of the topics we discussed were:
- What peak oil means
- The role of speculators in the oil market
- Why I am skeptical that we will address rising carbon emissions
- Whether methane hydrates are a viable alternative energy source
- The difference between our oil shale resource and oil reserves
- Which alternative fuels are promising
In this week’s episode of R-Squared Energy TV I present the first of several mini-presentations on energy topics of interest. The presentations will be short, 5 to 8 minute presentations with 3 to 5 slides each. This week’s presentation is on Energy Return on Energy Invested (EROEI). I believe there are a lot of misunderstandings from both proponents and opponents of EROEI methodology, and I attempt to clear up some of the misconceptions. Some of the questions answered are: What exactly is EROEI? Where might it be useful, and where might it possibly provide misleading answers? What are the societal implications of a declining EROEI? When is a lower EROEI process better than a higher EROEI process? What does EROEI… Continue»
I have gotten numerous inquiries about the book I am working on, so just wanted to provide a quick update. I have been unsure about exactly how long this process would take, but apparently it is a lot faster than I had imagined. My original thinking was that it would be out around the middle of next year, but I found out today that it is already available. People have been asking about the title, but I have been saying that it isn’t set in stone. Well, it is now: Power Plays: Energy Options in the Age of Peak Oil I don’t actually know if that cover is final; this is actually the first time I have seen it and… Continue»
This week I will be at the 2011 ASPO-USA Conference. I will deliver one talk on technical due diligence and one on our new energy reality. I will also participate in a roundtable discussion on investing. On the talk on our new energy reality, I am going to have a slide on my general observations over the past few years. One of those observations is that the concept of Energy Return on Energy Invested — EROEI — is frequently misused. The most common example is when people simply dismiss a process because it has a low EROEI or a net negative energy return. So as I am finalizing my slides, I thought I would share my EROEI observations here. What… Continue»
The EROEI of Ethanol Over the past decade, the United States Department of Agriculture (USDA) has published several papers in which they investigated the energy return of corn ethanol. The energy return on energy invested (EROEI) is simply the value of the energy outputs for a process divided by the energy inputs into the process. In simple terms, if a process required 1 BTU of energy to produce 2 BTUs of ethanol, the EROEI is 2. However, in reality it is somewhat more complex than that. The way the energy inputs and outputs are allocated can have a very big influence on the answer. Just by changing the nature of the allocation – as I will show below – you… Continue»
This marks the final installment of answers to questions recently submitted by readers. This final installment covers the impact of E10 on fuel efficiency, my general optimism (or lack thereof), algal fuel, thermodynamics and energy limitations, Accoya, and litigation. Once again, thanks to the readers who submitted questions, and thanks to those who helped answer them. Without the help I received, this might have been a 10-part series. Here are the links to the previous installments: Part 1 – Covered plasma gasification, natural gas projections, free energy, promising alternative energy technologies, and GTL Part 2 – Covered coal-to-liquids, technology hype, green gasoline, refining improvements, allocation of money toward renewables, electricity consumption, the Automotive X Prize, Big Oil, cellulosic ethanol, and… Continue»
When evaluating energy technologies – whether conventional fossil fuels or alternative energy – one thing that I pay close attention to is the Energy Return on Energy Invested (EROEI). While there are legitimate criticisms of the methodology, it can serve as a useful tool for comparing and contrasting various alternatives. To give a flavor for why this is, consider an example. Let’s say society as a whole produces 50 million barrels of oil equivalents (could be oil, nuclear, wind, solar, biofuels, or a combination). Consider a couple of energy options. Option A has an EROEI of 10/1 (Energy Output/Energy Input). Option B has an EROEI of 2/1. Option A has to consume 5 million barrels to produce 50, for a… Continue»
Introduction The concept of energy return on energy invested, or EROEI, is terribly misunderstood. I have heard people argue that EROEI doesn’t matter, only economics. This misses a very key point: EROEI is going to have a huge impact on economics, because it shows that in order to maintain current net energy for society, energy production must accelerate as EROEI declines. Likewise, I have heard people hand wave away the issue, suggesting it is really no big deal. Here’s an example that I saw yesterday in a thread at The Oil Drum: Consider an EROEI of 20 with 10 units required; this means that 1 unit is invested to get 20 unit of output or if 10 units are required… Continue»