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92 comments on IHS Data Suggest Kuwaiti and Global Proved Oil Reserves Significantly Lower Than BP Estimates

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Chris Vernon on November 16, 2006 - 3:28pm Permalink | Subthread | Parent | Comments top
Are we talking of Resources or of Reserves? Because resources are the fraction of reserves than can be ultimately recovered (me thinks).
I belive it's the other way around. :)

How can the price determine if a resource is recoverable or not?
In the real world price is everything, if a company can earn money for doing something the EROI is irrelevant, to that company. What's the EROI of manufacturing Duracell batteries, or even corn ethanol? Whilst we can say extracting oil from the ground when the EROI is below 1 with the express intent of burning it in the pursuit of energy is a futile exercise from a global net energy supply point of view, it doesn't necessarily prevent it being done.

Oil could be extracted with EROI < 1 if it's application will be as a chemical feedstock rather than energy source or if the input energy isn't in as usable form as the resultant oil. For example if it takes 1.5 units of nuclear fission generated heat energy to extract 1 unit of liquid hydrocarbon energy it still might be worth doing if your objective is to fly a 747 from London to New York. And if the 1.5 units of nuclear energy only cost $10 and the 1 unit of liquid hydrogen energy cost $20 you're making a profit!

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Nate Hagens on November 16, 2006 - 9:15pm Permalink | Subthread | Parent | Comments top
Chris - your comments get at energy quality.  To convert energy at a low EROI or even at a sub-unity EROI makes sense if you are upgrading quality.

Currently, quality is usually measured by market forces. But liquid fuels IN REALITY are much higher quality than the market realizes, implying that the EROI that society collectively chooses to pursue does matter.

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