TY  - JOUR
AB  - We study the long-term effect of a changing energy return on investment (EROI) of oil on non- fuel commodity prices. Compared to economic growth, interest rates and uncertainty, the EROI of oil is the main driver of commodity price variations since 1938. A change in the EROI of oil accounts for up to 30% of the variation in commodity prices. We show that over the past 100 years, periods of low EROI have been correlated with higher commodity prices and vice versa. Commodity prices thus depend on the amount of surplus energy available for society. As renewables show substantially lower EROI values than fossil fuels used decades ago, the energy transition poses major challenges not only to our society but also to resource-intensive companies. The adoption of new business practices like the circular economy fosters the development of strategies increasing the EROI and reducing the large demand for external sources of energy and raw materials.
AU  - Lübbers, Johannes
AU  - Bredemeier, Karsten
DA  - 2019
DO  - 10.17879/93159803905
LA  - eng
IS  - Journal of Business Chemistry
M2  - 180
N1  - Section "Research Paper"
PY  - 2019
SP  - 180-197
T2  - Journal of Business Chemistry
TI  - Commodity price fluctuations and the EROI of oil - How the availability of surplus energy affects non-fuel commodity prices
UR  - https://nbn-resolving.org/urn:nbn:de:hbz:6-93159804167
Y2  - 2026-03-30T05:00:09
ER  -