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Analysis of the Energy Return on Investment (EROI) of the Huge Daqing Oil Field in China

Author

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  • Yan Hu

    (Office 623, School of Business Administration, China University of Petroleum (Beijing), Beijing 102249, China)

  • Lianyong Feng

    (Office 623, School of Business Administration, China University of Petroleum (Beijing), Beijing 102249, China)

  • Charles C.S. Hall

    (Graduate Program in Environmental Science, College of Environmental Science and Forestry, State University of New York, Syracuse, NY 13210, USA)

  • Dong Tian

    (Office 623, School of Business Administration, China University of Petroleum (Beijing), Beijing 102249, China)

Abstract

In China there has been considerable discussion of how one should express the efficiency of energy conversion and production. Energy return on investment (EROI) can be useful for this because its methodology is based on outputs and inputs. Unfortunately, similar to the rest of the world, most of the data available for assessing energy gains and costs for oil and gas in China has to be derived from economic costs and revenues for oil fields. In this paper we derive a first EROI for China based on using this approach and the existing data for production of crude oil and natural gas for the Daqing oil field, the largest oil field in China. We estimate that its EROI stnd expressed as heat equivalent was 10:1 in 2001 but has declined to 6.5:1 in 2009. Based on this trend we project that the EROI stnd will decline to 4.7:1 in 2015, and the net energy from the field will be decreasing substantially. The calculations have some errors because of incomplete data, and if various externalities are taken into account, the EROI of this oil field would be lower than our present estimates. The trends of EROI and net energy suggest that the Daqing oil field will face more difficulty in the future which can not be overcome by government fiat.

Suggested Citation

  • Yan Hu & Lianyong Feng & Charles C.S. Hall & Dong Tian, 2011. "Analysis of the Energy Return on Investment (EROI) of the Huge Daqing Oil Field in China," Sustainability, MDPI, vol. 3(12), pages 1-16, November.
    • Handle: RePEc:gam:jsusta:v:3:y:2011:i:12:p:2323-2338:d:15036
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    References listed on IDEAS

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    1. 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.
    2. 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.
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    4. Cleveland, Cutler J., 1992. "Energy quality and energy surplus in the extraction of fossil fuels in the U.S," Ecological Economics, Elsevier, vol. 6(2), pages 139-162, October.
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    Cited by:

    1. Zhaoyang Kong & Xiucheng Dong & Bo Xu & Rui Li & Qiang Yin & Cuifang Song, 2015. "EROI Analysis for Direct Coal Liquefaction without and with CCS: The Case of the Shenhua DCL Project in China," Energies, MDPI, vol. 8(2), pages 1-22, January.
    2. 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.
    3. Feng, Jingxuan & Feng, Lianyong & Wang, Jianliang & King, Carey W., 2018. "Modeling the point of use EROI and its implications for economic growth in China," Energy, Elsevier, vol. 144(C), pages 232-242.
    4. 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).
    5. Li, Wandi & Luo, Dongkun & Yuan, Jiehui, 2017. "A new approach for the comprehensive grading of petroleum reserves in China: Two natural gas examples," Energy, Elsevier, vol. 118(C), pages 914-926.
    6. 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.
    7. Bai, Yajie & Hou, Jian & Liu, Yongge & Zhao, Dong & Bing, Shaoxian & Xiao, Wu & Zhao, Wei, 2022. "Energy-consumption calculation and optimization method of integrated system of injection-reservoir-production in high water-cut reservoir," Energy, Elsevier, vol. 239(PA).
    8. Jin, Guangrong & Peng, Yingyu & Liu, Lihua & Su, Zheng & Liu, Jie & Li, Tingting & Wu, Daidai, 2022. "Enhancement of gas production from low-permeability hydrate by radially branched horizontal well: Shenhu Area, South China Sea," Energy, Elsevier, vol. 253(C).
    9. Victor Court & Florian Fizaine, 2014. "Energy transition towards renewables and metal depletion: an approach through the EROI concept," Post-Print hal-01411803, HAL.
    10. 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).
    11. Lambert, Jessica G. & Hall, Charles A.S. & Balogh, Stephen & Gupta, Ajay & Arnold, Michelle, 2014. "Energy, EROI and quality of life," Energy Policy, Elsevier, vol. 64(C), pages 153-167.
    12. 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.
    13. 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.
    14. Salehi, Mohammad & Khajehpour, Hossein & Saboohi, Yadollah, 2020. "Extended Energy Return on Investment of multiproduct energy systems," Energy, Elsevier, vol. 192(C).
    15. Alexander Safronov & Anton Sokolov, 2014. "Preliminary Calculation of the EROI for the Production of Crude Oil and Light Oil Products in Russia," Sustainability, MDPI, vol. 6(9), pages 1-19, September.
    16. Huang, Chen & Gu, Baihe & Chen, Yingchao & Tan, Xianchun & Feng, Lianyong, 2019. "Energy return on energy, carbon, and water investment in oil and gas resource extraction: Methods and applications to the Daqing and Shengli oilfields," Energy Policy, Elsevier, vol. 134(C).
    17. Zi Lin & Xiaolei Liu & Ziming Feng, 2020. "Systematic Investigation of Integrating Small Wind Turbines into Power Supply for Hydrocarbon Production," Energies, MDPI, vol. 13(12), pages 1-16, June.
    18. Chen, Yingchao & Feng, Lianyong & Wang, Jianliang & Höök, Mikael, 2017. "Emergy-based energy return on investment method for evaluating energy exploitation," Energy, Elsevier, vol. 128(C), pages 540-549.

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