IDEAS home Printed from https://ideas.repec.org/a/gam/jeners/v7y2014i4p2207-2227d34842.html
   My bibliography  Save this article

Analysis of the Energy Balance of Shale Gas Development

Author

Listed:
  • Hiroaki Yaritani

    (Frontier Research Center for Energy and Resources, Graduate School of Engineering, The University of Tokyo, 7-3-1 Hongo, Bunkyo-ku, Tokyo 113-8656, Japan)

  • Jun Matsushima

    (Frontier Research Center for Energy and Resources, Graduate School of Engineering, The University of Tokyo, 7-3-1 Hongo, Bunkyo-ku, Tokyo 113-8656, Japan)

Abstract

Interest has rapidly grown in the use of unconventional resources to compensate for depletion of conventional hydrocarbon resources (“easy hydrocarbon”) that are produced at relatively low cost from oil and gas fields with large proven reserves. When one wants to ensure the prospects for development of unconventional resources that are potentially vast in terms of their energy potential, it is essential to determine the quality of that energy. Here we consider the development of shale gas, an unconventional energy resource of particularly strong interest of late, through analysis of its energy return on investment (EROI), a key indicator for qualitative assessment of energy resources. We used a Monte Carlo approach for the carbon footprint of U.S. operations in shale gas development to estimate expected ranges of EROI values by incorporating parameter variability. We obtained an EROI of between 13 and 23, with a mean of approximately 17 at the start of the pipeline. When we incorporated all the costs required to bring shale gas to the consumer, the mean value of EROI drops from about 17 at the start of the pipeline to 12 when delivered to the consumer. The shale gas EROI values estimated in the present study are in the initial stage of shale gas exploitation where the quality of that resource may be considerably higher than the mean and thus the careful and continuous investigation of change in EROI is needed, especially as production moves off the initial “sweet spots”.

Suggested Citation

  • Hiroaki Yaritani & Jun Matsushima, 2014. "Analysis of the Energy Balance of Shale Gas Development," Energies, MDPI, vol. 7(4), pages 1-21, April.
  • Handle: RePEc:gam:jeners:v:7:y:2014:i:4:p:2207-2227:d:34842
    as

    Download full text from publisher

    File URL: https://www.mdpi.com/1996-1073/7/4/2207/pdf
    Download Restriction: no

    File URL: https://www.mdpi.com/1996-1073/7/4/2207/
    Download Restriction: no
    ---><---

    References listed on IDEAS

    as
    1. Matthew Moerschbaecher & John W. Day Jr., 2011. "Ultra-Deepwater Gulf of Mexico Oil and Gas: Energy Return on Financial Investment and a Preliminary Assessment of Energy Return on Energy Investment," Sustainability, MDPI, vol. 3(10), pages 1-18, October.
    2. Jon Freise, 2011. "The EROI of Conventional Canadian Natural Gas Production," Sustainability, MDPI, vol. 3(11), pages 1-25, November.
    3. Nathan Gagnon & Charles A.S. Hall & Lysle Brinker, 2009. "A Preliminary Investigation of Energy Return on Energy Investment for Global Oil and Gas Production," Energies, MDPI, vol. 2(3), pages 1-14, July.
    4. Roberto Cesare Callarotti, 2011. "Energy Return on Energy Invested (EROI) for the Electrical Heating of Methane Hydrate Reservoirs," Sustainability, MDPI, vol. 3(11), pages 1-10, November.
    5. Zhang, Yongli & Colosi, Lisa M., 2013. "Practical ambiguities during calculation of energy ratios and their impacts on life cycle assessment calculations," Energy Policy, Elsevier, vol. 57(C), pages 630-633.
    6. Adam R. Brandt & Michael Dale, 2011. "A General Mathematical Framework for Calculating Systems-Scale Efficiency of Energy Extraction and Conversion: Energy Return on Investment (EROI) and Other Energy Return Ratios," Energies, MDPI, vol. 4(8), pages 1-35, August.
    7. David J. Murphy & Charles A.S. Hall & Michael Dale & Cutler Cleveland, 2011. "Order from Chaos: A Preliminary Protocol for Determining the EROI of Fuels," Sustainability, MDPI, vol. 3(10), pages 1-20, October.
    8. Rahm, Dianne, 2011. "Regulating hydraulic fracturing in shale gas plays: The case of Texas," Energy Policy, Elsevier, vol. 39(5), pages 2974-2981, May.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Jingxuan Feng & Lianyong Feng & Jianliang Wang, 2018. "Analysis of Point-of-Use Energy Return on Investment and Net Energy Yields from China’s Conventional Fossil Fuels," Energies, MDPI, vol. 11(2), pages 1-21, February.
    2. Sergei Sabanov & Abdullah Rasheed Qureshi & Zhaudir Dauitbay & Gulim Kurmangazy, 2023. "A Method for the Modified Estimation of Oil Shale Mineable Reserves for Shale Oil Projects: A Case Study," Energies, MDPI, vol. 16(16), pages 1-17, August.
    3. Brandt, Adam R. & Yeskoo, Tim & Vafi, Kourosh, 2015. "Net energy analysis of Bakken crude oil production using a well-level engineering-based model," Energy, Elsevier, vol. 93(P2), pages 2191-2198.
    4. Chen, Xuejun & Lu, Hailong & Gu, Lijuan & Shang, Shilong & Zhang, Yi & Huang, Xin & Zhang, Le, 2022. "Preliminary evaluation of the economic potential of the technologies for gas hydrate exploitation," Energy, Elsevier, vol. 243(C).
    5. Devin Moeller & David Murphy, 2016. "Net Energy Analysis of Gas Production from the Marcellus Shale," Biophysical Economics and Resource Quality, Springer, vol. 1(1), pages 1-13, May.
    6. Louis Delannoy & Pierre-Yves Longaretti & David. J. Murphy & Emmanuel Prados, 2021. "Assessing Global Long-Term EROI of Gas: A Net-Energy Perspective on the Energy Transition," Energies, MDPI, vol. 14(16), pages 1-16, August.
    7. Wang, Jianliang & Liu, Mingming & McLellan, Benjamin C. & Tang, Xu & Feng, Lianyong, 2017. "Environmental impacts of shale gas development in China: A hybrid life cycle analysis," Resources, Conservation & Recycling, Elsevier, vol. 120(C), pages 38-45.
    8. Carlo Andrea Bollino & Francesco Asdrubali & Paolo Polinori & Simona Bigerna & Silvia Micheli & Claudia Guattari & Antonella Rotili, 2017. "A Note on Medium- and Long-Term Global Energy Prospects and Scenarios," Sustainability, MDPI, vol. 9(5), pages 1-25, May.
    9. Ke Wang & Harrie Vredenburg & Jianliang Wang & Yi Xiong & Lianyong Feng, 2017. "Energy Return on Investment of Canadian Oil Sands Extraction from 2009 to 2015," Energies, MDPI, vol. 10(5), pages 1-13, May.
    10. Roman Nogovitsyn & Anton Sokolov, 2014. "Preliminary Calculation of the EROI for the Production of Gas in Russia," Sustainability, MDPI, vol. 6(10), pages 1-15, September.
    11. Minyue Zhou & Yifei Zhang & Runqing Zhou & Jin Hao & Jijin Yang, 2018. "Mechanical Property Measurements and Fracture Propagation Analysis of Longmaxi Shale by Micro-CT Uniaxial Compression," Energies, MDPI, vol. 11(6), pages 1-18, May.
    12. Devin Moeller & David Murphy, 2019. "Comments on Energy Return on Investment (EROI): Reconciling Boundary and Methodological Issues," Biophysical Economics and Resource Quality, Springer, vol. 4(2), pages 1-3, June.

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Fizaine, Florian & Court, Victor, 2015. "Renewable electricity producing technologies and metal depletion: A sensitivity analysis using the EROI," Ecological Economics, Elsevier, vol. 110(C), pages 106-118.
    2. Bo Xu & Lianyong Feng & William X. Wei & Yan Hu & Jianliang Wang, 2014. "A Preliminary Forecast of the Production Status of China’s Daqing Oil field from the Perspective of EROI," Sustainability, MDPI, vol. 6(11), pages 1-21, November.
    3. Louis Delannoy & Pierre-Yves Longaretti & David. J. Murphy & Emmanuel Prados, 2021. "Assessing Global Long-Term EROI of Gas: A Net-Energy Perspective on the Energy Transition," Energies, MDPI, vol. 14(16), pages 1-16, August.
    4. Carey W. King & John P. Maxwell & Alyssa Donovan, 2015. "Comparing World Economic and Net Energy Metrics, Part 1: Single Technology and Commodity Perspective," Energies, MDPI, vol. 8(11), pages 1-26, November.
    5. David J. Murphy & Michael Carbajales-Dale & Devin Moeller, 2016. "Comparing Apples to Apples: Why the Net Energy Analysis Community Needs to Adopt the Life-Cycle Analysis Framework," Energies, MDPI, vol. 9(11), pages 1-15, November.
    6. Lina I. Brand-Correa & Paul E. Brockway & Claire L. Copeland & Timothy J. Foxon & Anne Owen & Peter G. Taylor, 2017. "Developing an Input-Output Based Method to Estimate a National-Level Energy Return on Investment (EROI)," Energies, MDPI, vol. 10(4), pages 1-21, April.
    7. Elise Dupont & Marc Germain & Hervé Jeanmart, 2021. "Estimate of the Societal Energy Return on Investment (EROI)," Biophysical Economics and Resource Quality, Springer, vol. 6(1), pages 1-14, March.
    8. Alexandre Poisson & Charles A. S. Hall, 2013. "Time Series EROI for Canadian Oil and Gas," Energies, MDPI, vol. 6(11), pages 1-20, November.
    9. Raugei, Marco & Sgouridis, Sgouris & Murphy, David & Fthenakis, Vasilis & Frischknecht, Rolf & Breyer, Christian & Bardi, Ugo & Barnhart, Charles & Buckley, Alastair & Carbajales-Dale, Michael & Csala, 2017. "Energy Return on Energy Invested (ERoEI) for photovoltaic solar systems in regions of moderate insolation: A comprehensive response," Energy Policy, Elsevier, vol. 102(C), pages 377-384.
    10. Ke Wang & Harrie Vredenburg & Jianliang Wang & Yi Xiong & Lianyong Feng, 2017. "Energy Return on Investment of Canadian Oil Sands Extraction from 2009 to 2015," Energies, MDPI, vol. 10(5), pages 1-13, May.
    11. Delannoy, Louis & Longaretti, Pierre-Yves & Murphy, David J. & Prados, Emmanuel, 2021. "Peak oil and the low-carbon energy transition: A net-energy perspective," Applied Energy, Elsevier, vol. 304(C).
    12. Chen, Xuejun & Lu, Hailong & Gu, Lijuan & Shang, Shilong & Zhang, Yi & Huang, Xin & Zhang, Le, 2022. "Preliminary evaluation of the economic potential of the technologies for gas hydrate exploitation," Energy, Elsevier, vol. 243(C).
    13. Hall, Charles A.S. & Lambert, Jessica G. & Balogh, Stephen B., 2014. "EROI of different fuels and the implications for society," Energy Policy, Elsevier, vol. 64(C), pages 141-152.
    14. Brandt, Adam R. & Yeskoo, Tim & Vafi, Kourosh, 2015. "Net energy analysis of Bakken crude oil production using a well-level engineering-based model," Energy, Elsevier, vol. 93(P2), pages 2191-2198.
    15. Brandt, Adam R. & Dale, Michael & Barnhart, Charles J., 2013. "Calculating systems-scale energy efficiency and net energy returns: A bottom-up matrix-based approach," Energy, Elsevier, vol. 62(C), pages 235-247.
    16. Carey W. King & John P. Maxwell & Alyssa Donovan, 2015. "Comparing World Economic and Net Energy Metrics, Part 2: Total Economy Expenditure Perspective," Energies, MDPI, vol. 8(11), pages 1-22, November.
    17. Bartłomiej Bajan & Joanna Łukasiewicz & Agnieszka Poczta-Wajda & Walenty Poczta, 2021. "Edible Energy Production and Energy Return on Investment—Long-Term Analysis of Global Changes," Energies, MDPI, vol. 14(4), pages 1-16, February.
    18. Florian Fizaine & Victor Court, 2014. "Energy transition toward renewables and metal depletion: an approach through the EROI concept," Working Papers 1407, Chaire Economie du climat.
    19. Luciano Celi & Claudio Della Volpe & Luca Pardi & Stefano Siboni, 2018. "A New Approach to Calculating the “Corporate” EROI," Biophysical Economics and Resource Quality, Springer, vol. 3(4), pages 1-28, December.
    20. Jonathan Dumas & Antoine Dubois & Paolo Thiran & Pierre Jacques & Francesco Contino & Bertrand Cornélusse & Gauthier Limpens, 2022. "The Energy Return on Investment of Whole-Energy Systems: Application to Belgium," Biophysical Economics and Resource Quality, Springer, vol. 7(4), pages 1-34, December.

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:gam:jeners:v:7:y:2014:i:4:p:2207-2227:d:34842. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: MDPI Indexing Manager (email available below). General contact details of provider: https://www.mdpi.com .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.