The potential of domestic production and imports of oil and gas in China: an energy return on investment perspective
Abstract Concerns about China’s energy security have escalated because of the country’s high dependency on oil and gas imports, so it is necessary to calculate the availability of domestic oil and gas resources and China’s ability to obtain foreign energy through trade. In this work, the calculation...
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doaj-70853870d05f467895cb1ad03bc86a4f2020-11-24T22:13:24ZengSpringerOpenPetroleum Science1672-51071995-82262016-10-0113478880410.1007/s12182-016-0120-7The potential of domestic production and imports of oil and gas in China: an energy return on investment perspectiveZhao-Yang Kong0Xiu-Cheng Dong1Qian Shao2Xin Wan3Da-Lin Tang4Gui-Xian Liu5School of Business Administration, China University of Petroleum (Beijing)School of Business Administration, China University of Petroleum (Beijing)School of Business, Tianjin University of Finance and EconomicsTangshan Iron and Steel Group Co., LtdChina Petroleum Enterprise AssociationSchool of Business Administration, China University of Petroleum (Beijing)Abstract Concerns about China’s energy security have escalated because of the country’s high dependency on oil and gas imports, so it is necessary to calculate the availability of domestic oil and gas resources and China’s ability to obtain foreign energy through trade. In this work, the calculation was done by using the energy return on investment (EROI) method. The results showed that the EROIstnd (i.e., standard EROI) of China’s oil and gas extraction decreased from approximately 17.3:1 in 1986 to 8.4:1 in 2003, but it increased to 12.2:1 in 2013. From a company-level perspective, the EROIstnd differed for different companies and was in the range of (8–12):1. The EROI2,d (EROI considering energy outputs after processed and direct energy inputs) for different companies was in the range of (3–7):1. The EROI of imported oil (EROIIO) declined from 14.8:1 in 1998 to approximately 4.8:1 in 2014, and the EROI of imported natural gas (EROIING) declined from 16.7:1 in 2009 to 8.6:1 in 2014. In 2015, the EROIIO and EROIING showed a slight increase due to decreasing import prices. In general, this paper suggests that from a net energy perspective, it has become more difficult for China to obtain oil and gas from both domestic production and imports. China is experiencing an EROI decline, which demonstrates the risk in the use of unsustainable fossil resources.http://link.springer.com/article/10.1007/s12182-016-0120-7EROIOil and gas extractionImported oilImported natural gasChina |
collection |
DOAJ |
language |
English |
format |
Article |
sources |
DOAJ |
author |
Zhao-Yang Kong Xiu-Cheng Dong Qian Shao Xin Wan Da-Lin Tang Gui-Xian Liu |
spellingShingle |
Zhao-Yang Kong Xiu-Cheng Dong Qian Shao Xin Wan Da-Lin Tang Gui-Xian Liu The potential of domestic production and imports of oil and gas in China: an energy return on investment perspective Petroleum Science EROI Oil and gas extraction Imported oil Imported natural gas China |
author_facet |
Zhao-Yang Kong Xiu-Cheng Dong Qian Shao Xin Wan Da-Lin Tang Gui-Xian Liu |
author_sort |
Zhao-Yang Kong |
title |
The potential of domestic production and imports of oil and gas in China: an energy return on investment perspective |
title_short |
The potential of domestic production and imports of oil and gas in China: an energy return on investment perspective |
title_full |
The potential of domestic production and imports of oil and gas in China: an energy return on investment perspective |
title_fullStr |
The potential of domestic production and imports of oil and gas in China: an energy return on investment perspective |
title_full_unstemmed |
The potential of domestic production and imports of oil and gas in China: an energy return on investment perspective |
title_sort |
potential of domestic production and imports of oil and gas in china: an energy return on investment perspective |
publisher |
SpringerOpen |
series |
Petroleum Science |
issn |
1672-5107 1995-8226 |
publishDate |
2016-10-01 |
description |
Abstract Concerns about China’s energy security have escalated because of the country’s high dependency on oil and gas imports, so it is necessary to calculate the availability of domestic oil and gas resources and China’s ability to obtain foreign energy through trade. In this work, the calculation was done by using the energy return on investment (EROI) method. The results showed that the EROIstnd (i.e., standard EROI) of China’s oil and gas extraction decreased from approximately 17.3:1 in 1986 to 8.4:1 in 2003, but it increased to 12.2:1 in 2013. From a company-level perspective, the EROIstnd differed for different companies and was in the range of (8–12):1. The EROI2,d (EROI considering energy outputs after processed and direct energy inputs) for different companies was in the range of (3–7):1. The EROI of imported oil (EROIIO) declined from 14.8:1 in 1998 to approximately 4.8:1 in 2014, and the EROI of imported natural gas (EROIING) declined from 16.7:1 in 2009 to 8.6:1 in 2014. In 2015, the EROIIO and EROIING showed a slight increase due to decreasing import prices. In general, this paper suggests that from a net energy perspective, it has become more difficult for China to obtain oil and gas from both domestic production and imports. China is experiencing an EROI decline, which demonstrates the risk in the use of unsustainable fossil resources. |
topic |
EROI Oil and gas extraction Imported oil Imported natural gas China |
url |
http://link.springer.com/article/10.1007/s12182-016-0120-7 |
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