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'Energy Return on Energy Invested'
In business we are very familiar with the concept of "return on investment". This is what drives much of our decision-making. However a new pressure is emerging that will play and increasingly important part in our analysis of business opportunities and business performance.
The presentation will focus on EROEI - Energy Returns on Energy Investments. Some commentators believe this to have been in excess of 100:1 for oil from the supergiant oilfields of particularly the Middle East while new fields are believed to have EROEI's of only around 15:1. We cannot afford complacency.
We need to consider our ability to maintain and grow energy flows at a time when resource quantities and qualities are declining. The energy industry will need to expend more energy for exploitation simply to provide the energy needed to maintain economic activities that characterize our current civilization.
Stresses are also becoming evident in coal and gas in some areas. Most alternatives have an EROEI of below 10:1. For bioethanol from maize a ratio of 1.8:1 is considered excellent. Some preliminary analyses indicate that it will not be possible for us to maintain the current industrial society at ratios below a level of 10:1.
If this estimate is correct then serious effort will be required to understand the implications on society and how we need to restructure economies. Unfortunately it will take time to change direction so a significant change in our thinking and design of the structure and energization of society will be required as a matter of urgency.
If you are interested in energy and the 'going concern' concept, you will need to become very familiar with EROEI.
This presentation is not to be missed!
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