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Net Energy Analysis of Gas Production from the Marcellus Shale

Author

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  • Devin Moeller

    (Northern Illinois University)

  • David Murphy

    (St. Lawrence University)

Abstract

Total production of dry natural gas in the USA increased to 24.4 Tcf in 2013, a 35 % increase from 2005 levels. This increase was largely a result of the rapid development of shale resources in the lower 48 states. The Marcellus play alone accounted for nearly 15 % of the total dry gas produced in 2013. In this study, we calculate the energy return on investment (EROI) using a hybrid life-cycle analysis approach bounded by three process stages: (1) EROIP&P, which includes production and processing energetic costs; (2) EROIP,P&T, which considers production, processing, and transportation; and (3) EROIGRID, which includes the energetic costs associated with electricity generation. Most significantly, the inclusion of electricity generation within the EROI analysis makes possible a functional unit comparison to alternative sources of energy into the power grid. Well pad preparation and well drilling had the largest energy costs of all the upstream process stages, accounting for nearly 75 % of production and processing costs. However, the largest energy consumer among the process stages is the cost associated with electricity production, and our model assumes 43 % power plant efficiency, accounting for nearly 94 % of the total energy costs of producing electricity from natural gas. Defined by process stage, our analysis calculated an EROIP&P of 39.7, a EROIP,P&T of 24.9, and an EROIGRID of 10.7. The EROIGRID value of 10 is the same as that calculated for photovoltaic systems, indicating that shale gas, when burned for electricity, provides similar net energy benefits to society as an average PV system.

Suggested Citation

  • 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.
    • Handle: RePEc:spr:bioerq:v:1:y:2016:i:1:d:10.1007_s41247-016-0006-8
    DOI: 10.1007/s41247-016-0006-8
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    References listed on IDEAS

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    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. 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.
    3. Graham Palmer & Joshua Floyd, 2017. "An Exploration of Divergence in EPBT and EROI for Solar Photovoltaics," Biophysical Economics and Resource Quality, Springer, vol. 2(4), pages 1-20, December.
    4. 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.
    5. Guay-Boutet, Charles & Dufour, Mathieu, 2024. "Estimating the relationship between EROI and profitability of oil sands mining, 1997–2016," Ecological Economics, Elsevier, vol. 217(C).
    6. Emmanuel Aramendia & Paul E. Brockway & Peter G. Taylor & Jonathan B. Norman & Matthew K. Heun & Zeke Marshall, 2024. "Estimation of useful-stage energy returns on investment for fossil fuels and implications for renewable energy systems," Nature Energy, Nature, vol. 9(7), pages 803-816, July.
    7. 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.
    8. Palmer, Graham, 2017. "An input-output based net-energy assessment of an electricity supply industry," Energy, Elsevier, vol. 141(C), pages 1504-1516.
    9. David J. Murphy & Marco Raugei & Michael Carbajales-Dale & Brenda Rubio Estrada, 2022. "Energy Return on Investment of Major Energy Carriers: Review and Harmonization," Sustainability, MDPI, vol. 14(12), pages 1-20, June.
    10. Charles Guay-Boutet, 2023. "Estimating the Disaggregated Standard EROI of Canadian Oil Sands Extracted via Open-pit Mining, 1997–2016," Biophysical Economics and Resource Quality, Springer, vol. 8(1), pages 1-21, March.
    11. Carlos de Castro & Iñigo Capellán-Pérez, 2020. "Standard, Point of Use, and Extended Energy Return on Energy Invested (EROI) from Comprehensive Material Requirements of Present Global Wind, Solar, and Hydro Power Technologies," Energies, MDPI, vol. 13(12), pages 1-43, June.

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