Deriving EROI for Thirty Large Oil Companies Using the CO₂ Proxy from 1999 to 2018.

Area of Science:

• Energy economics
• Environmental science
• Industrial analysis

Background:

• Energy Return on Investment (EROI) is a key metric for assessing energy source efficiency.
• EROI quantifies the ratio of energy output to energy input for extraction processes.
• Evaluating EROI is crucial for understanding the sustainability and economic viability of energy production.

Purpose of the Study:

• To calculate the Energy Return on Investment (EROI) for 30 major oil companies.
• To analyze EROI trends over a 20-year period (1999-2018).
• To assess the consistency and comparability of EROI estimates derived from CO2 emission data.

Main Methods:

• Utilized CO2 emissions data reported in corporate Sustainability and/or Annual Reports.
• Calculated EROI based on estimated energy costs derived from CO2 emissions.
• Analyzed data for 30 oil companies spanning two decades (1999-2018).

Main Results:

• EROI estimates for the analyzed oil companies were found to be relatively homogeneous.
• EROI values remained largely constant over the 20-year study period for most companies.
• The calculated EROI figures generally align with estimates from alternative methodologies, though sometimes slightly lower.

Conclusions:

• CO2 emissions provide a viable proxy for estimating the energy costs in oil production.
• The study demonstrates a stable EROI for major oil companies over two decades.
• EROI calculations using this method offer consistent and comparable insights into energy efficiency in the oil industry.