Investopedia

Continue to Site »

Energy Return On Investment - EROI

Filed Under » , ,
Dictionary Says

Definition of 'Energy Return On Investment - EROI'

The amount of energy that has to be expended in order to produce a certain amount of energy. The energy return on investment (EROI) is a key determinant of the price of energy, as sources of energy that can be tapped relatively cheaply will allow the price to remain low. The ratio decreases when energy becomes scarcer and more difficult to extract or produce.

Investopedia Says

Investopedia explains 'Energy Return On Investment - EROI'

The EROI for oil has decreased dramatically over the past hundred years. The amount of energy required to produce one barrel of oil has decreased as superior methods, such as fracking, have been introduced.

EROI = Energy Output/Energy Input

Articles Of Interest

  1.

    Uncovering Oil And Gas Futures

    Find out how to stay on top of data reports that could cause volatility in oil and gas markets.

  2. Oil: A Big Investment With Big Tax Breaks

    Oil and gas investments can provide unmatched deduction potential for accredited investors.

  3. What is the difference between return on equity and return on capital?

    Return on equity (ROE) and return on capital (ROC) measure very similar concepts, but with a slight difference in the underlying formulas. Both measures are used to decipher the profitability ...

  4. Oil And Gas Industry Primer

    Before jumping into this hot sector, learn how these companies make their money.

  5. Halliburton Has Gotten Interesting Again

    If oilfield activity has bottomed, Halliburton would be a good pick here.

  6. Schlumberger Looks Good At Today's Prices

    Schlumberger remains the best of breed in the oil services sector, and the price is getting attractive.

  7. Emerging Markets' Environmental Commitment

    Most people think of the industrial and developed world as leaders when it comes to green technologies and environmental stewardship. After moving past their high-growth stages, many developed ...

  8. Why Was SolarCity's IPO Price Slashed?

    Another piece of evidence that shows how the solar energy sector is struggling.

  9. Can Atwood Keep The Positive News Flowing In 2013?

    Atwood has a high-quality fleet, but valuation is already pretty high quality as well.

  10. Another Quarter Of Discontent For Energy Services?

    Early warnings point to another bad quarter for service companies.
comments powered by Disqus
Marketplace
Hot Definitions

  1. Winner's Curse

    Because of incomplete information, emotions or any other number of factors regarding the item being auctioned, bidders can have a difficult time determining the item's intrinsic value. As a result, the largest overestimation of an item's value ends up winning the auction.

  2. Glocalization

    A combination of the words "globalization" and "localization" used to describe a product or service that is developed and distributed globally, but is also fashioned to accommodate the user or consumer in a local market.

  3. Disaster Loss

    A special type of tax-deductible loss, similar to a casualty loss, where a loss has been incurred by taxpayers who reside in an area that has been designated as a federal disaster area by the President.

  4. Fool In The Shower

    The notion that changes or policies designed to alter the course of the economy should be done slowly, rather than all at once.

  5. Pattern Day Trader

    An SEC designation for traders who trade the same security four or more times per day (buys and sells) over a five-day period, and for whom same-day trades make up at least 6% of their activity for that period.

  6. Cost-Push Inflation

    A phenomenon in which the general price levels rise (inflation) due to increases in the cost of wages and raw materials.
Trading Center