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

Philosophical Transactions of the Royal Society A: Mathematical, Physical and Engineering Sciences

Volumn 372, Issue 2006, 2014, Pages

  Murphy, David J ^a  

^a NORTHERN ILLINOIS UNIVERSITY   (United States)

Author keywords

Economic growth; Energy return on (energy) investment; Net energy; Oil

Indexed keywords

COSTS; ECONOMICS; OIL SANDS; PETROLEUM DEPOSITS; PETROLEUM INDUSTRY; PROFITABILITY;

ECONOMIC GROWTHS; ECONOMIC RECESSION; ENERGY RETURN ON INVESTMENTS; ENVIRONMENTAL COSTS; GLOBAL OIL PRODUCTION; NET ENERGY; OIL; UNCONVENTIONAL OIL;

INVESTMENTS;

EID: 84890484142     PISSN: 1364503X     EISSN: None     Source Type: Journal    
DOI: 10.1098/rsta.2013.0126     Document Type: Review

References (72)

1. Murphy DJ, Hall CAS, Dale M, Cleveland C. 2011 Order from chaos: a preliminary protocol for determining the EROI of fuels. Sustainability 3, 1888-1907. (doi:10.3390/su3101888).
2. Mulder K, Hagens NJ. 2008 Energy return on investment: toward a consistent framework. Ambio 37, 74-79. (doi:10.1579/0044-7447(2008)37[74:EROITA] 2.0.CO;2).
3. Murphy DJ, Hall CAS. 2011 Energy return on investment, peak oil, and the end of economic growth. Ann. NY Acad. Sci. 1219, 52-72. (doi:10.1111/j.1749- 6632.2010.05940.x).
4. Hall CAS, Powers R, Schoenberg W. 2008 Peak oil, EROI, investments and the economy in an uncertain future. In Biofuels, solar and wind as renewable energy systems: benefits and risks (ed. D Pimentel). Houten, The Netherlands: Springer Netherlands.
5. Odum HT. 1971 Environment, power, and society. New York, NY:Wiley.
6. Odum HT. 1973 Energy, ecology, and economics. Ambio 2, 220-227.
7. Gagnon N, Hall CAS, Brinker L. 2009 A preliminary investigation of the energy return on energy invested for global oil and gas extraction. Energies 2, 490-503. (doi:10.3390/ en20300490).
8. Cleveland C. 2005 Net energy from the extraction of oil and gas in the United States. Energy 30, 769-782. (doi:10.1016/j.energy.2004.05.023).
9. Guilford MC, Hall CAS, O'Connor P, Cleveland CJ. 2011 A new long term assessment of energy return on investment (EROI). for U.S. oil and gas discovery and production. Sustainability 3, 1866-1887. (doi:10.3390/su3101866).
10. Grandell L, Hall CAS, Höök M. 2011 Energy return on investment for Norwegian oil and gas from 1991 to 2008. Sustainability 3, 2050-2070. (doi:10.3390/su3112050).
11. Moerschbaecher M, Day JW. 2011 Ultra-deepwater Gulf of Mexico oil and gas: energy return on financial investment and preliminary assessment of energy return on energy investment. Sustainability 3, 2009-2026. (doi:10.3390/ su3102009).
12. Cleveland CJ, O'Connor PA. 2011 Energy return on investment (EROI). of oil shale. Sustainability 3, 2307-2322. (doi:10.3390/su3112307).
13. King CW, Hall CAS. 2011 Relating financial and energy return on investment. Sustainability 3, 1810-1832. (doi:10.3390/su3101810).
14. Dale M, Krumdieck S, Bodger P. 2012 Global energy modelling-a biophysical approach (GEMBA). II. Methodology. Ecol. Econ. 73, 158-167. (doi:10.1016/j.ecolecon.2011.10.028).
15. Heun MK, de Wit M. 2012 Energy return on (energy). invested (EROI), oil prices, and energy transitions. Energy Pol. 40, 147-158. (doi:10.1016/j.enpol. 2011.09.008).
16. Hall CAS. 1972 Migration and metabolism in a temperate stream ecosystem. Ecology 53, 585-604. (doi:10.2307/1934773).
17. Chapman PF. 1974 Energy costs: a review of methods. Energy Pol. 2, 91-103. (doi:10.1016/ 0301-4215(74)90002-0).
18. Chapman P. 1976 Energy analysis: a review of methods and applications. Omega 4, 19-33. (doi:10.1016/0305-0483(76)90036-0).
19. Carter AP. 1974 Applications of input-output analysis to energy problems. Science 184, 325-329. (doi:10.1126/science.184.4134.325).
20. Estrup C. 1974 Energy consumption analysis by application of national input-output tables. Ind. Market. Manage. 3, 193-210. (doi:10.1016/0019-8501(74) 90007-8).
21. Nilsson S. 1974 Energy analysis: a more sensitive instrument for determining costs of goods and services. Ambio 3, 222-224.
22. Nilsson S, Kristoferson L. 1976 Energy analysis and economics. Ambio 5, 27-29.
23. Bullard C, Herendeen R. 1975 The energy costs of goods and services. Energy Pol. 3, 268-278. (doi:10.1016/0301-4215(75)90035-X).
24. Hall CAS, Balogh S, Murphy DJR. 2009 What is the minimum EROI that a sustainable society must have? Energies 2, 25-47. (doi:10.3390/en20100025).
25. Slesser M (ed.). 1974 Energy Analysis Workshop on Methodology and Conventions, Guldsmedshyttan, Sweden, 25-30 August 1974. IFIAS Rep. no. 6. Stockholm, Sweden: International Federation of Institutes for Advanced Study.
26. Connolly TJ, Spraul JR (eds). 1975 Report of the NSF-Stanford Workshop on Net Energy Analysis, Palo Alto, CA, 25-28 August. Stanford, CA: Institute of Energy Studies, Stanford University.
27. CERI. 1976 Net energy analysis: an energy balance study of fossil fuel resources. Golden, CO: Colorado Energy Research Institute.
28. Bullard CW, Penner PS, Pilati DA. 1978 Net energy analysis: handbook for combining process and input-output analysis. Resour. Energy 1, 267-313. (doi:10.1016/0165-0572(78)90008-7).
29. Herendeen R. 1978 Input-output techniques and energy cost of commodities. Energy Pol. 6, 162-165. (doi:10.1016/0301-4215(78)90039-3).
30. Farrell AE, Plevin RJ, Turner BT, Jones AD, O'Hare M, Kammen DM. 2006 Ethanol can contribute to energy and environmental goals. Science 311, 506-508. (doi:10.1126/science. 1121416).
31. Murphy DJ, Hall CAS, Powers B. 2011 New perspectives on the energy return on (energy). investment (EROI). of corn ethanol. Environ. Dev. Sustain. 13, 179-202. (doi:10.1007/s10668- 010-9255-7).
32. Costanza R. 1980 Embodied energy and economic valuation. Science 210, 1219-1224. (doi:10.1126/science.210.4475.1219).
33. Hall CAS, Cleveland CJ, Berger M. 1981 Energy return on investment for United States petroleum, coal, and uranium. In Energy and ecological modeling (ed. W Mitsch), pp. 715-724. Amsterdam, The Netherlands: Elsevier.
34. Hall CAS, Cleveland CJ. 1981 Petroleum drilling and production in the United States: yield per effort and net energy analysis. Science 211, 576-579. (doi:10.1126/science.211.4482.576).
35. Hall CAS, Kaufmann R, Cleveland CJ. 1986 Energy and resource quality: the ecology of the economic process. New York, NY:Wiley.
36. Cleveland CJ, Costanza R, Hall CAS, Kaufmann R. 1984 Energy and the U.S. economy: a biophysical perspective. Science 225, 890-897. (doi:10.1126/science. 225.4665.890).
37. Brundtland GH. 1987 Our common future. New York, NY: United Nations
38. de Haes HAU, Heijungs R. 2007 Life-cycle assessment for energy analysis and management. Appl. Energy 84, 817-827. (doi:10.1016/j.apenergy.2007.01.012).
39. Wiedmann TA. 2009 A review of recent multi-region input-output models used for consumption-based emission and resource accounting. Ecol. Econ. 69, 211-222. (doi:10.1016/j. ecolecon.2009.08.026).
40. Raugei M, Fullana-i-Palmer P, Fthenakis V. 2012 The energy return on energy investment (EROI). of photovoltaics: methodology and comparisons with fossil fuel life cycles. Energy Pol. 45, 576-582. (doi:10.1016/j.enpol.2012.03. 008).
41. Kubiszewski I, Cleveland CJ, Endres PK. 2010 Meta-analysis of net energy return for wind power systems. Renew. Energy 35, 218-225. (doi:10.1016/j.renene. 2009.01.012).
42. Berndt ER. 1978 Aggregate energy, efficiency and productivity measurement. Annu. Rev. Energy 3, 225-273. (doi:10.1146/annurev.eg.03.110178. 001301).
43. Cleveland CJ, Kaufmann RK, Stern DI. 2000 Aggregation and the role of energy in the economy. Ecol. Econ. 32, 301-317. (doi:10.1016/S0921-8009(99) 00113-5).
44. Brandt AR. 2011 Oil depletion and the energy efficiency of oil production: the case of California. Sustainability 3, 1833-1854. (doi:10.3390/su3101833).
45. Hu Y, Feng L, Hall CAS, Tiang D. 2011 Analysis of the energy return on investment (EROI). of the huge Daqing oil field in China. Sustainability 3, 2323-2338. (doi:10.3390/su3122323).
46. Farrell AE, Brandt AR. 2006 Risks of the oil transition. Environ. Res. Lett. 1, 1-6. (doi:10.1088/1748-9326/1/1/014004).
47. Hamilton J. 2009 Causes and consequences of the oil shock of 2007-08. In Brookings Papers on Economic Activity (eds D Romer, J Wolfers), pp. 215-283. Washington, DC: The Brookings Institution.
48. Rubin. 2008 Just how big is Cleveland? Toronto, Canada: CIBCWorld Markets Inc.
49. Nelder C, Macdonald G. 2012 There will be oil, but at what price? Harvard Business Review Blog Network [Internet]. 1 October 2011. See http://blogs.hbr.org/cs/2011/10/there-will- be-oil-but-can-you.html.
50. Kopits S. 2009 A peak oil recession. In ASPO-8: The ASPO 2009 Int. Peak Oil Conf., Denver, CO, 11-13 October. Uppsala, Sweden: Association for the Study of Peak Oil & Gas.
51. Skrebowski C. 2011 A brief economic explanation of peak oil. In Oil Depletion Analysis Centre (ODAC). Newsletter, 16 September 2011 [online]. See http://www.odacinfo. org/newsletter/2011/09/16.
52. Deng S, Tynan GR. 2011 Implications of energy return on energy invested on future total energy demand. Sustainability 3, 2433-2442. (doi:10.3390/ su3122433).
53. Mearns E. 2008 The global energy crisis and its role in the pending collapse of the global economy. Presentation to the Royal Society of Chemists, Aberdeen, Scotland, 29 October 2008. See http://www.theoildrum.com/node/4712.
54. Giampietro M, Mayumi K, Sorman AH. 2010 Assessing the quality of alternative energy sources: energy return on investment (EROI), the metabolic pattern of societies and energy statistics. Institut de Ciencia, Universitat Autonoma de Barcelona.
55. Carroll L. 1871 Through the looking-glass. London, UK: Macmillan.
56. Muggeridge A, Cockin A, Webb K, Frampton H, Collins I, Moulds T, Salino P. 2014 Recovery rates, enhanced oil recovery and technological limits. Phil. Trans. R. Soc. A 372, 20120320. (doi:10.1098/rsta.2012.0320).
57. Murphy DJ,Hall CAS. 2010 Year in review-EROI or energy return on (energy). invested. Ann. NY Acad. Sci. 1185, 102-118. (doi:10.1111/j.1749-6632. 2009.05282.x).
58. Timilsina GR. 2014 Biofuels in the long-run global energy supply mix for transportation. Phil. Trans. R. Soc. A 372, 20120323. (doi:10.1098/rsta.2012. 0323).
59. Jacobson MZ, DelucchiMA. 2009 A path to sustainable energy by 2030. Scient. Am. 301, 58-65. (doi:10.1038/scientificamerican1109-58).
60. Trainer TA. 2012 A critique of Jacobson and Delucchi's proposals for a world renewable energy supply. Energy Pol. 44, 476-481. (doi:10.1016/j.enpol. 2011.09.037).
61. Trainer TA. 2010 Can renewables etc. solve the greenhouse gas problem? The negative case. Energy Pol. 38, 4107-4114. (doi:10.1016/j.enpol.2010.03.037).
62. Höök M, Davidsson S, Johansson S, Tang X. 2014 Decline and depletion rates of oil production: a comprehensive investigation. Phil. Trans. R. Soc. A 372, 20120448. (doi:10.1098/ rsta.2012.0448).
63. Jaramillo P, Griffin WM,Matthews HS. 2008 Comparative analysis of the production costs and life-cycle GHG emissions of FT liquid fuels from coal and natural gas. Environ. Sci. Technol. 42, 7559-7565. (doi:10.1021/es8002074).
64. National Research Council. 2007 Coal: research and development to support national energy policy. Washington, DC: National Academies Press.
65. Brandt AR, Farrell AE. 2007 Scraping the bottom of the barrel: greenhouse gas emission consequences of a transition to low-quality and synthetic petroleum resources. Clim. Change 84, 241-263. (doi:10.1007/s10584-007-9275-y).
66. CAPP. 2013 The facts on oil sands. Calgary, Canada: Canadian Association of Petroleum Producers. See .
67. Mulder K, Hagens N, Fisher B. 2010 Burning water: a comparative analysis of the energy return on water invested. Ambio 39, 30-39. (doi:10.1007/s13280- 009-0003-x).
68. Odum EP. 1969 The strategy of ecosystem development. Science 164, 262-270. (doi:10.1126/ science.164.3877.262).
69. Kremmer. 2010 Historic population and GDP data [online]. See http://www.historicalstatistics. org/ (accessed 24 November 2010).
70. Smil V. 2010 Energy transitions: history, requirements, prospects. Santa Barbara, CA: Praeger.
71. IEA. 2012 World energy outlook 2012. Paris, France: International Energy Agency.
72. Sorrell S. 2010 Energy, growth and sustainability: five propositions. Brighton, UK: University of Sussex.