21 September 2010
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 an increasingly important part in our analysis of business opportunities and business performance.
| "Energy Return on Energy Invested" |
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, particularly of 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 on 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 alternative energies 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 is required as a matter of urgency.
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If you are interested in energy and the 'going concern' concept, you will need to become very familiar with EROEI.
Presented by
Dr Chris Cooper
Board Member
South African National Energy Association
(SANEA)
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Dr Chris Cooper has been involved in World Energy Council (WEC) activities since 1986 when he became a member of SANCWEC, the predecessor of SANEA. He has been involved in the energy industry since 1982 when he joined Esso. He later moved to the Institute for Energy Studies at the Rand Afrikaans University (now University of Johannesburg). He joined CEF (Pty) Ltd as the Corporate Planner in July 2008. In terms of SANEA activities he has been responsible for the SANEA technical programme since 2000, was involved with a number of the Africa Regional projects and has been closely involved in the WEC Youth Programme.
Chris has been a SANEA Board Member since the inception of the SANEA Section 21 company in 2001.
| This is certainly a "must attend" event - register now! |
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