by sparky » Fri 16 Jul 2010, 06:12:09
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The point about declining EROEI occurring before peak oil sound good ,
for a given demand the cheapest energy is the one producing the highest EROEI ,
economics thus dictate that they will be used first as they provide the larger profit for the suppliers
a small proviso ,
it make abundant sense to consume crappy coal locally and export the good stuff to far away places ,
Australia burn brown coal in Victoria while exporting very nice stuff from Queesland to China
the contradiction is solved when transport cost are considered ,
the further the export , the more advantageous it is to carry high density power
if one locate the power plant on top of the mines like in the Latrobe valley , then the transport cost are minimal
The deterioration in the coal quality worldwide is well documented , similarly sweet light crude is in severe decline
It is no coincidence that West Texas intermediate , beloved of wall Street in now a trading fiction
the same apply to London " Brent " , what is traded is in fact a composite mix of other crudes
sadly alternatives are of little use , they are made with present energy based on cheap carbone
and still cost a bucket .
The point is well worth repeating
Present alternatives are manufactured by a cheap carbon economy ,
if they had to be made in an altrernative powered factory ,
their cost would skyrocket and their EROEI would plummet , in the case of a solar panel factory , well below 1
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