A Preliminary Forecast of the Production Status of China’s Daqing Oil field from the Perspective of EROI
Bo Xu,
Lianyong Feng,
William X. Wei,
Yan Hu and
Jianliang Wang
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Bo Xu: School of Business Administration, China University of Petroleum, Beijing 102249, China
Lianyong Feng: School of Business Administration, China University of Petroleum, Beijing 102249, China
William X. Wei: Mac Ewan School of Business, Grant MacEwan University, Edmonton, AB T5J 2P2, Canada
Yan Hu: Sinopec Group Exploration and Production Research Institute, Beijing 100083, China
Jianliang Wang: School of Business Administration, China University of Petroleum, Beijing 102249, China
Sustainability, 2014, vol. 6, issue 11, 1-21
Abstract:
Energy return on investment (EROI) and net energy are useful metrics for analyzing energy production physically rather than monetarily. However, these metrics are not widely applied in China. In this study, we forecast the Daqing oilfield’s EROI from 2013 to 2025 using existing data for crude oil and natural gas production and the basic rules of EROI. Unfortunately, our calculations indicate that the oilfield’s EROI will continuously decline from 7.3 to 4.7, and the associated net energy will continuously decline from 1.53 × 10 12 MJ to 1.25 × 10 12 MJ. If China’s energy intensity does not decline as planned in the next ten years, then the EROI of Daqing will be even lower than our estimates. Additionally, relating the EROI to the monetary return on investment (MROI) in a low production and high intensity scenario, Daqing’s EROI will decline to 2.9 and its MROI will decline to 1.8 by 2025. If the “law of minimum EROI” and the assumed “minimum MROI” are taken into account, then we estimate that both energy pressure and economic pressure will restrict Daqing’s production by 2025.
Keywords: Daqing oilfield; EROI; net energy; MROI (search for similar items in EconPapers)
JEL-codes: O13 Q Q0 Q2 Q3 Q5 Q56 (search for similar items in EconPapers)
Date: 2014
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Citations: View citations in EconPapers (5)
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Persistent link: https://EconPapers.repec.org/RePEc:gam:jsusta:v:6:y:2014:i:11:p:8262-8282:d:42450
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