ESL Basic Facts

ESL Lesson 1
Oil in Our Every Day Life

ESL Lesson 2
The History of Mining

ESL Lesson 3
Economic growth

ESL Lesson 4
Delivery Systems

ESL Lesson 5
Cities and Population Movement

ESL Lesson 6
Recycling

ESL Lesson 7
Rubber

ESL Lesson 8
Farming

Energy Return on Energy Invested (EROEI) (EROI)

This is not about investment dollars, but how much “energy” you must invest (use) to get the oil out of the ground and transported (move from one place to another). In order to acquire (get) energy it takes energy, in order to transport (move) a form of energy it takes energy, in order to store (keep) energy it takes energy, and in order to use energy it takes energy. When oil production first began in the mid-nineteenth century (1850’s), the largest oil fields recovered (got back) fifty barrels (50) of oil for every (1) barrel used in the extraction (50:1), transportation and refining (process oil into a usable product). This ratio is often referred to as the Energy Return on Energy Invested (EROI or EROEI). This ratio (comparing A to B) becomes increasingly (more and more) inefficient over time. Currently (now), between one and five barrels (1-5) of oil are recovered for each (1) barrel used in the recovery process.(5:1)-(1:1) The reason for this efficiency decrease is that oil becomes harder to extract (get out) as an oil field is depleted (emptied). It’s all about NET ENERGY, Net energy is how much energy is left after the energy needed to find, concentrate (put together) and deliver its energy services are subtracted. Most alternatives (substitutes) to conventional liquid fuels have very low or unknown EROEIs.

The EROEI for Ethanol from corn grown in the U.S. is about 1.4:1, well below that for conventional motor gasoline. The Alberta oil sands evidence suggests an EROEI of 3:1. Certainly oil sands will have a lower EROEI than conventional crude oil due to more resources being used in the production process. Shale oils the same. Sugarcane grown in Brazil apparently has a higher EROEI, perhaps as high as 8:1.

Oil depletion scenarios (possibilities): A global decline in oil production will have serious social and economic implications (effects) without preparation. Global economic growth (economy of the planet increasing) relies on (depends on) cheap energy, and oil contributes to the worldwide energy supply, particularly (especially) for transportation. A decline in energy supply would likely slow, if not reverse, growth. Our world is a Growth Based Economic Model, continuing to grow for ever. More info at http://www.eroei.com/content/view/23/36/

** (Note: David DuByne) Our present economic system is built on the concept (thought) of perpetual, limitless (continuing with no limit) growth. Now it appears there is a limit, so there will be a limit on economic growth as well. The present mind frame (way to think about something) of how the monetary (money) system works will have to be re-thought (think of a new way to do something). This will include, stocks, bonds, credit, real estate and currency (physical money).**

Initially a peak in oil production would manifest itself (show itself) as rapidly escalating (quickly increasing) prices and worldwide oil and commodities shortages (lack of some product). This shortage would differ (be different from) from shortages of the past because the fundamental (base) cause is geological, not political. While past shortages stemmed (came from) from a temporary insufficiency of supply (lack of supply), this will be permanent.
Crossing Hubbert's Peak means that the production of oil will continue to decline. Demand must be reduced to meet supply. World population is based on (depends on) available oil supply, so is the economy, our transportation systems and globalization itself. It is unlikely that the actual peak in global oil production will be the direct catalyst (cause) of global economic decline. Instead, severe economic problems will be begin with the realization (understanding) of the financial ($) and investment world (stock/bond market/futures market) that "peak oil" (and natural gas) is a real phenomenon (event) and is either imminent (100% sure the event will happen) or has already occurred (happened).

However, the impacts (effects) of peaking oil and increased global competition over scarce (very little left) remaining oil supplies, have led many analysts to predict dire consequences (bad things to happen) for conventional oil-dependent economies (societies that use a lot of fuel for factories or manufacturing and transportation). When common practices cannot be maintained (goods and services on a daily use basis) and too many people suddenly begin hoarding scant supplies (keep for themselves what little is left), the desired (wanted) resource dries up. These effects quickly compound (add to) whatever triggered the crisis (started the problem)." This scenario (set of events) is referred to by Lundberg as Petrocollapse.

Maximum Oil Production Before Decline.
Graph in full color at http://en.wikipedia.org/wiki/Peak_oil

The organization, Association for the Study of Peak Oil & Gas (ASPO) predicts that oil production will peak around 2010, but others such as Collin Campbell author of “The Coming Oil Crisis” and Professor Kenneth Deffeyes, author of "Hubbert's Peak" and "Beyond Oil" asserts (says) that the peak was passed on Dec 16, 2005 and both authors have said that global production has already peaked and from the year 2007 onward we will start to see the real effects caused by depletion start around the planet.

Has it happened already?

A number of theorists (a person with their own theory about a subject) believe some peak in world oil production has already occurred. Collin Campbell of (ASPO) has calculated that the global (worldwide) production of conventional oil peaked in the spring of 2004 albeit at a rate of 23-GB/yr (billion barrels), not Hubbert's 13-GB/yr. Another peak oil proponent ( a person who agrees on the same subject) Kenneth S. Deffeyes predicted in his book Beyond Oil - The View From Hubbert's Peak that global oil production would hit a peak on Thanksgiving Day 2005 Deffeyes has since revised his claim (changed his first idea), and now says that world oil production peaked on December 16 2005. After Hurricane Katrina, Saudi Arabia claimed that it simply could not increase production to make up for the loss of Gulf of Mexico oil rigs (floating platforms that pump oil that is under the sea). Furthermore (additionally), in April, 2006, a Saudi Aramco (oil company in Saudi Arabia) spokesman (person who tells news about a company) admitted that its mature (old) fields are now declining (decreasing) at a rate of 8% per year, and its composite (overall) decline rate of producing fields is about 2%, with this information it is possible that Saudi Arabia has probably peaked.
More info at: http://www.peakoil.net

Continue to: What is Crude Oil

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ESL Basic Facts

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Hubbert Peak Theory
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Oil Reserves by Country
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Energy Return on Energy Invested (EROEI)
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What is Crude Oil
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Classification of Different Types of Crude Oil
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What is in a Barrel of Crude Oil
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