M
Monte_RCMS
Guest
In order to do a basic economic analysis, you need a unit of measure that is fungible.That’s like saying the whole concept of addition or subtraction is invalid. EROEI is simply “energy returned on energy invested.” It’s basic economics. If you invest a dollar and are guaranteed to get back two dollars you invest; if you are guaranteed to only get back half of your investment you don’t invest.
You are conflating basic economic concepts with various theories based upon them, hence the reason you are not making any sense.
A dollar or a Swiss franc or any accepted international currency unit is fungible.
A dollar in Manhattan is the same dollar in Alberta.
You can instantly transport dollars by internet to Texas or London or Tokyo.
However, a thousand BTU’s of natural gas in Texas does not have the same value as a thousand BTU’s of natural gas in Alberta or a thousand BTU’s of natural gas in Tokyo or in London.
So, if you have natural gas in Alberta, you can’t do much with it. Essentially worthless. There are very limited ways of getting it to market. BUT, however, if you have some thick oil in Alberta, you can heat it with that worthless natural gas and make it flow through a pipeline or into a railroad tank car.
You can convert some natural gas to dollars … $3 or so in Texas; $4 or so in Pennsylvania; $10 or more in New York City; $12 or more in London; $16 or so in Tokyo.
Same applies to oil; different chemical compositions.
Same applies to electricity … having a KWH at Hoover Dam is not the same as a KWH in in Kansas … if you have a KWH in Las Vegas and want to transfer it to Kansas, you will have extreme difficulty because of the cost/losses in transmission.
If someone offers to pay me in dollars that is fine; but if they offer to pay me in natural gas in North Dakota, what good does that do me because there is no way for me to exchange North Dakota natural gas for any useful service or product.
A BTU in Alberta is not the same as a BTU in Libya
Energy is just not fungible. Dollars are fungible.
Sorry, but others have already demonstrated that EROEI is not a feasible way of evaluating economic concepts.
Two examples:
forbes.com/sites/timworstall/2011/11/05/peak-oil-and-eroei-still-nonsense/
And as previously posted:
en.wikipedia.org/wiki/Energy_returned_on_energy_invested