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Strategies & Market Trends : 2026 TeoTwawKi ... 2032 Darkest Interregnum
GLD 414.48+0.7%Jan 9 4:00 PM EST
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To: Crabbe who wrote (4701)3/8/2006 8:22:38 AM
From: Elroy Jetson  Read Replies (1) of 219221
 
The EROEI of Crude Oil is roughly 30 to 1. It costs one BTU to find and pump 30 BTU of crude oil. In decades past it was around 100 to 1.

Crude Oil makes up 60% of the pre-tax cost of gasoline, with refining 18% and distribution and profit 22%.

Let's assume that all of the costs of Refining, Distribution and Profit are energy costs (which they're not). This would indicate that 60% of Crude Oil's EROI gets through, or an EROEI of 18 to 1.

Actually I think it would very ambitious to assume energy expenditures make up even 33% of non-oil gasoline costs. This would indicate an EROEI of 20 to 1 for gasoline.

Just think how silly it is to assume the EROEI of gasoline is only 0.74 to 1.

This means that we spend one BTU to obtain only 0.74 BTU of gasoline!

Spending a Dollar to get 74 cents? This would be an enormously unprofitable business!

This figure is quite obviously wrong. Just nonsense.

Now, if we calculate how much energy from the sun was allegedly required to make the plants to make the crude oil, then perhaps you end up with and EROEI of only 0.74 to 1. But how relevant is this figure until oil is fully depleted?

When oil is gone, they you would truly be comparing growing plants to bury deep in the Earth to make oil versus some other energy source.
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