A New Long Term Assessment of Energy Return on Investment (EROI) for U.S. Oil and Gas Discovery and Production

Treated water from oil and gas extraction as an unconventional water resource for agriculture in the Anadarko Basin

The energy industry generates large volumes of produced water (PW) as a byproduct of oil and gas extraction. In the central United States, PW disposal occurs through deep well injection, which can increase seismic activity. The treatment of PW for use in agriculture is an alternative to current disposal practices that can also provide supplemental water in regions where limited freshwater sources can affect agricultural production. This paper assesses the potential for developing PW as a water source for agriculture in the Anadarko basin, a major oil and gas field spanning parts of Kansas, Oklahoma, Colorado, and Texas. From 2011 to 2019, assessment of state oil and gas databases indicated that PW generation in the Anadarko Basin averaged 428 million m3/yr. A techno-economic analysis of PW treatment was combined with geographical information on PW availability and composition to assess the costs and energy requirements to recover this PW as a non-conventional water resource for agriculture. The volume of freshwater economically extractable from PW was estimated to be between 58 million m3 per year using reverse osmosis (RO) treatment only and 82 million m3 per year using a combination of RO and mechanical vapor compression to treat higher salinity waters. These volumes could meet 1-2 % and 49-70 % of the irrigation and livestock water demands in the basin, respectively. PW recovery could also modestly contribute to mitigating the decline of the Ogallala aquifer by ~2 %. RO treatment costs and energy requirements, 0.3-1.5 $/m3 and 1.01-2.65 kWh/m3, respectively, are similar to those for deep well injection. Treatment of higher salinity waters increases costs and energy requirements substantially and is likely not economically feasible in most cases. The approach presented here provides a valuable framework for assessing PW as a supplemental water source in regions facing similar challenges.

Post-evaluation analysis on urban coal, oil and gas resources comprehensive utilization governance project: A case study in Fuxian, China

China's energy and chemical enterprises in the resource-based urban cities face challenges of climate change targets. Coal, Oil and Gas Resources Comprehensive Utilization (COGRCU) project can address the carbon and hydrogen imbalance between conventional methanol from coal and natural gas. Moreover, it can improve energy conversion rates and carbon resource recovery. Therefore, it is a better way for energy and chemical enterprises to transition to sustainable development and advocated by enterprises in resource-based cities. In practice, the actual benefits of the COGRCU project are often different from those expected from prior assessments, and the main factors contributing to the differences need to be identified. Therefore, it is necessary to propose a post-evaluation methodology for the COGRCU project to assist energy and chemical enterprises in identifying these constraints and optimize project management. This study considers energy and monetary flows, combines emergy-based energy return on investment (EmEROI) and cost-benefit analysis (CBA), and proposes a post-evaluation methodology of the COGRCU project based on the case study of YC Group's Fuxian COGRCU project in Fuxian County. In addition, the emergy per unit money, emergy per unit labor, and bio-resources emergy per unit area of Yan'an City are measured. Results showed that indirect energy and labor input emergy are the primary contributors to improving the projects' energy efficiency. Operating costs reduction are the key factors for improving economic benefits. The indirect energy has the highest impact on the project's EmEROI, followed by labor, direct energy, and environmental governance. Several policy recommendations are raised, including strengthening policy support, such as advancing the formulation and revision of fiscal and tax policies, improving project assets and human resource management, and increasing environmental governance efforts.

LCA model validation of SAGD facilities with real operation data as a collaborative example between model developers and industry

There has been a notable disagreement between life cycle GHG emission estimates reported by research communities and key energy sector stakeholders as many LCA models are not validated against real operation data. This is originated from lack of collaboration and knowledge exchange between model developers and company experts. We present a pragmatic procedure for engaging company experts to advance the assumptions, models, and information used in an open-source LCA simulator (OPGEE). Using real operation and local emission factor data, two oil sands SAGD fields GHG emissions are compared rigorously against the scope 1 and 2 reported emissions. By introducing consistent region-specific input data, system boundaries, and assumptions, OPGEE carbon intensity estimates are within 1%-5% of reported data by companies. The system boundary expansion (e.g., expanding from direct emissions to also include offsite emissions from natural gas co-production, diluent source emission) impacts the GHG intensities estimates for both fields.

Assessing the risk of foreign investment within the petroleum sector of South America

There is presently a shortage of international oil companies investing in South America, due primarily to political instability associated with high levels of corruption, poor quality of institutions, and demanding fiscal regimes that strip significant amounts of revenue from investors. The purpose of this research is to obtain a comprehensive country ranking for South America in terms of investment risk in the upstream oil sector. The study identifies six risk categories (political risk, macroeconomic risk, technical risk, investment climate, non-renewable energy resources potential, and environmental constraint) and ten sub-indicators associated with these risks. The data are gathered to perform an ‘analytic hierarchy process (AHP)’ to obtain the weight index of the ten sub-indicators. These are then used in a ‘technique for order preference by similarity to ideal solution (TOPSIS)’ to obtain the country-ranking risk arrangement. Results indicate that countries with low-risk investment include Brazil, Colombia and Peru, while high-risk countries include Argentina, Ecuador and Bolivia. Finally, this study suggests that countries whose proportions of government take exceed 75% should modify their fiscal regimes to optimize benefits for all parties or design fiscal systems where the host government and contractor share the risk and reward associated with exploiting oil resources.

Deriving EROI for Thirty Large Oil Companies Using the CO2 Proxy from 1999 to 2018

Energy Return on Investment (EROI, sometimes EROEI) is one of the most important indices for evaluating the efficacy of a primary energy source. It is generally defined as the relation between the energy extracted from a given resource and the energy costs diverted from society to extract it. In this paper, the EROI of 30 oil companies was calculated using the CO₂ emitted by the companies and declared in Sustainability and/or Annual Reports as required by law, to estimate the energy used for the production process over a time span of 20 years (1999–2018). The resulting EROI estimates for the companies analyzed are rather homogeneous and, except in some cases, these values are relatively constant over time. These values agree (although sometimes somewhat lower than) estimates derived by other methods.

Assessing Global Long-Term EROI of Gas: A Net-Energy Perspective on the Energy Transition

Natural gas is expected to play an important role in the coming low-carbon energy transition. However, conventional gas resources are gradually being replaced by unconventional ones and a question remains: to what extent is net-energy production impacted by the use of lower-quality energy sources? This aspect of the energy transition was only partially explored in previous discussions. To fill this gap, this paper incorporates standard energy-return-on-investment (EROI) estimates and dynamic functions into the GlobalShift bottom-up model at a global level. We find that the energy necessary to produce gas (including direct and indirect energy and material costs) corresponds to 6.7% of the gross energy produced at present, and is growing at an exponential rate: by 2050, it will reach 23.7%. Our results highlight the necessity of viewing the energy transition through the net-energy prism and call for a greater number of EROI studies.

Hydrogen Fuel Cell Road Vehicles: State of the Art and Perspectives

Driven by a small number of niche markets and several decades of application research, fuel cell systems (FCS) are gradually reaching maturity, to the point where many players are questioning the interest and intensity of its deployment in the transport sector in general. This article aims to shed light on this debate from the road transport perspective. It focuses on the description of the fuel cell vehicle (FCV) in order to understand its assets, limitations and current paths of progress. These vehicles are basically hybrid systems combining a fuel cell and a lithium-ion battery, and different architectures are emerging among manufacturers, who adopt very different levels of hybridization. The main opportunity of Fuel Cell Vehicles is clearly their design versatility based on the decoupling of the choice of the number of Fuel Cell modules and hydrogen tanks. This enables manufacturers to meet various specifications using standard products. Upcoming developments will be in line with the crucial advantage of Fuel Cell Vehicles: intensive use in terms of driving range and load capacity. Over the next few decades, long-distance heavy-duty vehicles and fleets of taxis or delivery vehicles will develop based on range extender or mild hybrid architectures and enable the hydrogen sector to mature the technology from niche markets to a large-scale market.

Energy Return on Investment (EROI) and Life Cycle Analysis (LCA) of biofuels in Ecuador

In Ecuador, the net energy contribution of biofuels is unknown or unnoticed. To address this issue, we determined the Energy Return on Investment (EROI) for bioethanol and biodiesel.

The selection of raw materials relied on their productive capacity, export and import records, and historical yields. Consequently, the scope included three raw materials for ethanol (sugar cane, corn, and forest residues) and four for biodiesel (African palm, pinion, bovine fat, and swine fat).

Using a method based on the Life Cycle Analysis (LCA) of each biofuel, we assessed the entire production chain through statistical processing of primary and secondary information. Then we calculated the calorific values in the laboratory, compared energy inputs/outputs, and finally obtained the energetic returns.

EROIs for bioethanol were: 1.797 for sugarcane, 1.040 for corn, and 0.739 for wood. The results for biodiesel were: 3.052 for African palm, 2.743 for pinion, 2.187 for bovine fat, and 2.891 for swine fat. These values suggest feasibility only for sugarcane in the case of ethanol. In contrast, biodiesel has better prospects because all the feedstocks analyzed had EROIs higher than two. Nevertheless, biodiesel is not available for trading in Ecuador because energy policy has overlooked systems based on higher energy return. Future studies should consider more comprehensive variables such as climate change, land use, and water management.

Detailed Energy Accounting of Electrical Submersible Pumping Systems

The concept of energy return on investment (EROI) is applied to a set of electrical submersible pumps (ESPs) installed on a small offshore platform by conducting a detailed energy accounting of each ESP. This information is used to quantify the energy losses and efficiencies of each ESP system as well as the EROI of the lifting process (EROILifting), which is derived by dividing the energy out of each well, which is the chemical energy of the crude oil produced, by the energy consumed by each ESP system and by the surface equipment used to dispose of the well’s produced water. The resulting EROILifting values range from 93 to 565, with a corresponding energy intensity range of 18.3 to 3.0 kWh/barrel of crude. The energy consumed by each well is also is used to calculate the lifting costs, which is the incremental cost of producing an additional barrel of crude oil, which range from 0.64 to 3.90 USD/barrel of crude. The lifting costs are entirely comprised of procured diesel fuel, since there is no natural gas available on the platform to be used as fuel. Electrical efficiencies range from 0.60 to 0.80, while Hydraulic efficiencies range from 0.12 to 0.56. The overall ESP efficiencies range from 0.09 to 0.39, with the largest losses occurring in the hydraulic system, particularly within the ESP pump itself. Improvement of pump efficiencies is the only practical option to improve the overall ESP system efficiencies. Other losses within the electrical and hydraulic systems present few opportunities for improvement.

Agroecosystem energy transitions in the old and new worlds: trajectories and determinants at the regional scale

Energy efficiency in biomass production is a major challenge for a future transition to sustainable food and energy provision. This study uses methodologically consistent data on agroecosystem energy flows and different metrics of energetic efficiency from seven regional case studies in North America (USA and Canada) and Europe (Spain and Austria) to investigate energy transitions in Western agroecosystems from the late nineteenth to the late twentieth centuries. We quantify indicators such as external final energy return on investment (EFEROI, i.e., final produce per unit of external energy input), internal final EROI (IFEROI, final produce per unit of biomass reused locally), and final EROI (FEROI, final produce per unit of total inputs consumed). The transition is characterized by increasing final produce accompanied by increasing external energy inputs and stable local biomass reused. External inputs did not replace internal biomass reinvestments, but added to them. The results were declining EFEROI, stable or increasing IFEROI, and diverging trends in FEROI. The factors shaping agroecosystem energy profiles changed in the course of the transition: Under advanced organic and frontier agriculture of the late nineteenth and early twentieth centuries, population density and biogeographic conditions explained both agroecosystem productivity and energy inputs. In industrialized agroecosystems, biogeographic conditions and specific socio-economic factors influenced trends towards increased agroecosystem specialization. The share of livestock products in a region's final produce was the most important factor determining energy returns on investment.

Energy Return on Investment (EROI) for Forty Global Oilfields Using a Detailed Engineering-Based Model of Oil Production

Studies of the energy return on investment (EROI) for oil production generally rely on aggregated statistics for large regions or countries. In order to better understand the drivers of the energy productivity of oil production, we use a novel approach that applies a detailed field-level engineering model of oil and gas production to estimate energy requirements of drilling, producing, processing, and transporting crude oil. We examine 40 global oilfields, utilizing detailed data for each field from hundreds of technical and scientific data sources. Resulting net energy return (NER) ratios for studied oil fields range from ≈2 to ≈100 MJ crude oil produced per MJ of total fuels consumed. External energy return (EER) ratios, which compare energy produced to energy consumed from external sources, exceed 1000:1 for fields that are largely self-sufficient. The lowest energy returns are found to come from thermally-enhanced oil recovery technologies. Results are generally insensitive to reasonable ranges of assumptions explored in sensitivity analysis. Fields with very large associated gas production are sensitive to assumptions about surface fluids processing due to the shifts in energy consumed under different gas treatment configurations. This model does not currently include energy invested in building oilfield capital equipment (e.g., drilling rigs), nor does it include other indirect energy uses such as labor or services.

Unconventional Heavy Oil Growth and Global Greenhouse Gas Emissions

Enormous global reserves of unconventional heavy oil make it a significant resource for economic growth and energy security; however, its extraction faces many challenges especially on greenhouse gas (GHG) emissions, water consumption, and recently, social acceptability. Here, we question whether it makes sense to extract and use unconventional heavy oil in spite of these externalities. We place unconventional oils (oil sands and oil shale) alongside shale gas, coal, lignite, wood and conventional oil and gas, and compare their energy intensities and life cycle GHG emissions. Our results reveal that oil shale is the most energy intensive fuel among upgraded primary fossil fuel options followed by in situ-produced bitumen from oil sands. Lignite is the most GHG intensive primary fuel followed by oil shale. Based on future world energy demand projections, we estimate that if growth of unconventional heavy oil production continues unabated, the incremental GHG emissions that results from replacing conventional oil with heavy oil would amount to 4-21 Gt-CO2eq GtCO2eq over four decades (2010 by 2050). However, prevailing socio-economic, regional and global energy politics, environmental and technological challenges may limit growth of heavy oil production and thus its GHG emissions contributions to global fossil fuel emissions may be smaller.

Some behavioral aspects of energy descent: how a biophysical psychology might help people transition through the lean times ahead

We may soon face biophysical limits to perpetual growth. Energy supplies may tighten and then begin a long slow descent while defensive expenditures rise to address problems caused by past resource consumption. The outcome may be significant changes in daily routines at the individual and community level. It is difficult to know when this scenario might begin to unfold but it clearly would constitute a new behavioral context, one that the behavioral sciences least attends to. Even if one posits a less dramatic scenario, people may still need to make many urgent and perhaps unsettling transitions. And while a robust response would be needed, it is not at all clear what should be the details of that response. Since it is likely that no single response will fix things everywhere, for all people or for all time, it would be useful to conduct many social experiments. Indeed, a culture of small experiments should be fostered which, at the individual and small group level, can be described as behavioral entrepreneurship. This may have begun, hidden in plain sight, but more social experiments are needed. To be of help, it may be useful to both package behavioral insights in a way that is practitioner-oriented and grounded in biophysical trends and to propose a few key questions that need attention. This paper begins the process of developing a biophysical psychology, incomplete as it is at this early stage.

Comparison of the environmental footprint of the egg industry in the United States in 1960 and 2010

The US egg industry has evolved considerably over recent decades by incorporating new technologies and production practices. To date, there has been no comprehensive assessment of the resource demand and environmental effects of these changes. This study quantifies the environmental footprint of egg production supply chains in the United States for 2010 compared with 1960 using life cycle assessment. The analysis considers changes in both foreground (e.g., hen production performance) and background (e.g., efficiencies of energy provision, fertilizer production, production of feed inputs, and transport modes) system variables. The results revealed that feed efficiency, feed composition, and manure management are the 3 primary factors that determine the environmental impacts of US egg production. Further research and improvements in these areas will aid in continual reduction of the environmental footprint of the US egg industry over time. Per kilogram of eggs produced, the environmental footprint for 2010 is 65% lower in acidifying emissions, 71% lower in eutrophying emissions, 71% lower in greenhouse gas emissions, and 31% lower in cumulative energy demand compared with 1960. Table egg production was 30% higher in 2010; however, the total environmental footprint was 54% lower in acidifying emissions, 63% lower in eutrophying emissions, 63% lower in greenhouse gas emissions, and 13% lower in cumulative energy demand compared with 1960. Reductions in the environmental footprint over the 50-yr interval considered can be attributed to the following: 27 to 30% due to improved efficiencies of background systems, which outweighed the declining energy return on energy invested for primary energy sources; 30 to 44% due to changes in feed composition; and 28 to 43% due to improved bird performance.

The implications of the declining energy return on investment of oil production

Declining production from conventional oil resources has initiated a global transition to unconventional oil, such as tar sands. Unconventional oil is generally harder to extract than conventional oil and is expected to have a (much) lower energy return on (energy) investment (EROI). Recently, there has been a surge in publications estimating the EROI of a number of different sources of oil, and others relating EROI to long-term economic growth, profitability and oil prices. The following points seem clear from a review of the literature: (i) the EROI of global oil production is roughly 17 and declining, while that for the USA is 11 and declining; (ii) the EROI of ultra-deep-water oil and oil sands is below 10; (iii) the relation between the EROI and the price of oil is inverse and exponential; (iv) as EROI declines below 10, a point is reached when the relation between EROI and price becomes highly nonlinear; and (v) the minimum oil price needed to increase the oil supply in the near term is at levels consistent with levels that have induced past economic recessions. From these points, I conclude that, as the EROI of the average barrel of oil declines, long-term economic growth will become harder to achieve and come at an increasingly higher financial, energetic and environmental cost.

Pilot-scale data provide enhanced estimates of the life cycle energy and emissions profile of algae biofuels produced via hydrothermal liquefaction

Life cycle assessment (LCA) has been used widely to estimate the environmental implications of deploying algae-to-energy systems even though no full-scale facilities have yet to be built. Here, data from a pilot-scale facility using hydrothermal liquefaction (HTL) is used to estimate the life cycle profiles at full scale. Three scenarios (lab-, pilot-, and full-scale) were defined to understand how development in the industry could impact its life cycle burdens. HTL-derived algae fuels were found to have lower greenhouse gas (GHG) emissions than petroleum fuels. Algae-derived gasoline had significantly lower GHG emissions than corn ethanol. Most algae-based fuels have an energy return on investment between 1 and 3, which is lower than petroleum biofuels. Sensitivity analyses reveal several areas in which improvements by algae bioenergy companies (e.g., biocrude yields, nutrient recycle) and by supporting industries (e.g., CO2 supply chains) could reduce the burdens of the industry.