[SustainableTompkins] EROI and investment

[northsheep at juno.com]

I found this passage particularly interesting:

"The New York Times reported that for the previous three years oil
exploration companies worldwide had spent more money in exploration than
they had recovered in the dollar value of reserves found. Thus even
though the EROI of global oil and gas is still about 20:1 as of 2007,
this ratio is for all exploration and production activities. It is
possible that the energy break even point has been approached or even
reached for finding new oil. Whether we have reached this point or not
the concept of EROI declining toward 1:1 makes irrelevant the reports of
several oil analysts who believe that we may have substantially more oil
left in the world, because it does not make sense to extract oil, at
least for a fuel, when it requires more energy for the extraction than is
found in the oil extracted."

Karl North
Northland Sheep Dairy, Freetown, New York USA
     www.geocities.com/northsheep/
"Mother Nature never farms without animals" - Albert Howard
"Pueblo que canta no morira" - Cuban saying
 
 
On Sat, 05 Jan 2008 08:57:10 -0500 Jon Bosak <bosak at ibiblio.org> writes:
> People who were interested in last year's discussion of EROI
> (energy returned on energy invested) may find this analysis
> illuminating:
> 
>     http://www.theoildrum.com/node/3412#more
> 
> The diagrams toward the end illustrate graphically what TCLocal
> folks have been trying to say about the effect of declining EROI
> on "discretionary consumption."
> 
> Jon
> 
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