Announcements – April 11, 2011

Exam 2 one week from Wednesday! (April 20)

Energy Sources I – Fossil Fuels

Lecture Objectives:

1) Trace the history of energy consumption in human populations and understand the current factors affecting energy consumption

2) Learn how fossil fuels are extracted and used

3) Explore the debate over drilling in ANWR

Brief history of human energy consumption

Early humans – all work done by muscle

1st alternative energy sources:

domesticated animals

burning biomass

World sources of energy 1850-2000

Industrial Revolution

• Machines replaced human and animal labor in the manufacture and transportation of goods.

• Steam engines converting heat energy into forward motion was central to this transformation.

Industrial Revolution

Fuel for machines first wood, then coal

Countries/regions without large coal deposits were left behind in the Industrial Revolution

Switch from coal to oil

Widespread use of coal in cities led to increased levels of air pollution.

Cleaner-burning oil and the internal combustion engine lead to decreasing dependence on coal in first half of 1900’s

Energy and Economics

Direct link between economic growth and availability of inexpensive energy

To keep energy prices down, many governments subsidize energy prices

– Artificially low prices encourages high rates of consumption & economic growth

Price of gasoline determined by:

1. Purchasing & processing crude oil

2. Taxes

U.S. – taxes low, encourages automobile industry, diffuse population density

Europe – taxes high, encourages mass transit, city living

Transportation energy use per capita (gigajoules)

U.S. 105

Denmark 41

Netherlands 41

Government influence on energy prices can encourage or discourage consumption

Review

Our economic prosperity and way of life is utterly dependent on cheap energy

Where does this energy come from, and will it remain inexpensive?

Energy Sources

Non-Renewable Energy — Energy sources used faster than can be replenished.

*Coal, Oil, Natural Gas

Renewable Energy — Continuously present as a feature of the environment.

*Solar, Wind, Tides

Biofuels – potentially renewable

Nuclear Energy

Fossil Fuel Formation -- Coal

300 MYA plant material began collecting underwater & decayed, forming a spongy mass called peat

Pressure and heat over time transformed peat into coal

Coal is our most abundant fossil fuel.

US has a 250 yr. supply

Primarily used for generating electricity.

How is electricity generated from coal?

Coal is burned to heat water to make steam

High pressure steam turns the turbines

The turbine spins the generator, which produces an electrical current

Environmental Impacts of Coal

Burning releases pollutants

Mining destroys habitat

Mining creates dust pollution

CNN

April 13, 2010

Sago investigator will look at West Virginia mine disaster

* 29 miners were killed in an explosion last week * Mining disaster was the worst in the United States since 1972

Naoma, West Virginia (CNN) -- West Virginia's governor Tuesday named a former head of the federal Mine Safety and Health Administration to lead a state investigation into last week's coal mine explosion that left 29 miners dead.

Oil and Natural Gas

Accumulations of dead marine organisms on the ocean floor were covered by sediments.

High pressure and temperature converted them into energy-rich compounds

Oil Use

Can be more concentrated than coal, burns cleaner (but not cleanly), and is easily transported through pipelines.

*Ideal for automobile use.

*Can be difficult to extract.

*Environmental damage due to oil spills

*Like coal, burning oil releases pollutants

Penguin rescue operation under way after south Atlantic oil spillApril 3, 2011

The rescue operation began shortly after March 16, when the M.S. Oliva -- a Maltese-registered ship -- ran aground, fracturing its hull and ultimately splitting the vessel in two.

The islands' conservation director said at least 300 penguins have died after a cargo ship leaked thousands of tons of heavy oil near Nightingale Island, a British territory part of the Tristan da Cunha archipelago.Thousands more are covered in the ships' oil and diesel fuel, according to local officials and conservationists.

CNN

Crude oil can generate multiple products from a single barrel.

Natural Gas Use

Drilling requirements similar to oil.

Current primary use in the US is for heating

Natural Gas Use

Least environmentally damaging of fossil fuels.– Almost no air pollution.

Use is increasing (45% from 1985-2000).

World Oil Reserves

Reserve — Amount of a known deposit that can be economically extracted using current technology.

Natural Gas Reserves

Reserve — Amount of a known deposit that can be economically extracted using current technology.

What determines the price of oil and natural gas?

• Cost of extraction, production, transportation• Supply/demand & market forces• World politics

6 April 2010

Oil prices hit new 18-month high

The price of oil reached a fresh 18-month high on Tuesday on growing hopes of a US-led global economic recovery.

US light crude hit $87.09 a barrel in New York trading, before falling back slightly to $86.84.

Apr 8, 2011

Crude oil surges above $126, dollar slumps

NEW YORK (Reuters) - Oil surged to a 32-month high on Friday above $126 a barrel on concerns about long-term supply cuts

OPECOrganization of Petroleum Exporting Countries

Saudi Arabia, Kuwait, Libya, Algeria, Iraq, Qatar, United Arab Emirates, Iran, Indonesia, Nigeria, Gabon, Venezuela

Controls over 75% of world’s known oil reserves (Middle Eastern countries have 45%)

Currently produces 41% of world’s crude oil and exports 55% of all traded oil.

In 2000, the United States consumed an average of 19.5 million barrels of oil every day.

Oil consumption is expected to rise to 25.8 million bpd by 2020

We currently import about half our oil, that amount is expected to increase

How can we reduce our dependence on foreign oil?

One suggestion:

Increase our own oil production from our known reserves

1 April 2010

Obama Oil Drilling Plan Draws Critics

President Obama’s proposal to open vast expanses of American coastlines to oil and natural gas drilling drew criticism from both sides in the drilling debate.

The plan, which Mr. Obama said would balance the need to produce more domestic energy while protecting natural resources, would allow drilling along the Atlantic coastline, the eastern Gulf of Mexico and the north coast of Alaska.

It would end a longstanding moratorium on exploration from the northern tip of Delaware to the central coast of Florida, covering 167 million acres of ocean.

“Drilling our coasts will do nothing to lower gas prices or create energy independence,” Michael Brune, executive director of the Sierra Club, said in a statement. It will only jeopardize beaches, marine life, and coastal tourist economies, all so the oil industry can make a short-term profit.”

Public supports energy over environmentApr 6, 2010

WASHINGTON (Reuters) - For the first time in 10 years Americans are more likely to say the United States should give more priority to developing oil, natural gas and coal than to protecting the environment, according to a poll on Tuesday.

Half of 1,014 U.S. adults, who were surveyed March 4-7 by Gallup, said the country should give more priority to developing and producing the fossil fuels. Only 43 percent said protection of the environment should be given priority, even at the risk of limiting the amount of energy supplies.

It was the first time in the 10 years that Gallup has been asking the question that energy production was favored over environment.

ANWR – To drill or not to drill?

Arctic National Wildlife Refuge

polar, grizzly, and black bear; wolf, wolverine, Dall sheep, moose, muskox, and the free-roaming caribou.

180 species of birds have been observed on the refuge.

45 species of land and marine mammals

36 species of fish occur in Arctic Refuge waters

But it is also has oil and natural gas

Current political debate over whether or not to allow drilling

The total quantity of recoverable oil within the entire assessment area is estimated to be between 5.7 and 16 billion barrels (numbers vary depending on who is reporting them)

Peak production from ANWR could to be between 1 and 1.3 million barrels a day

“ANWR production could equal 46 years of current oil imports from Iraq.” D.Cheney

But what does that statistic really mean given that we don’t get much oil from Iraq?

So, if the US were to get all of its oil from ANWR, it would last a little longer than 6 months (exact number depends on which estimates of supply and use are used).

Some opposed to drilling have claimed that ANWR only has 6 months worth of oil

4.5 billion barrels recovered from ANWR / 24 million barrels per day used in US = 187.5 days

But, it can’t be pumped that fast, and we will never get all of our oil from ANWR

1/24 = about 4% of our oil needs

Better calculation:

Peak production from ANWR could to be between 1 and 1.3 million barrels a day

But it will take at least 10 years to reach the market

By that time, it is predicted we will be using ~ 24 million barrels/ day

How much oil will be pumped depends not only on how much is there, but on current crude oil prices

Profits for oil industry have to exceed their costs

USGS estimate:

95% chance of producing 2 billion barrels

50% chance of producing 4.5 billion barrels

5% chance of producing 9 billion barrels

But, will ANWR reach maximum production?

Environmental Impacts

Roads will be constructed of ice, which can alter availability of freshwater for animals

Noise, pollution and construction will impact wildlife and destroy habitat

At other Arctic drilling sites, crews dump garbage, sewage and toxic waste

Oil spills

How can we reduce our dependence on foreign oil?

One suggestion:Increase our own oil production from our known reserves

If the average fuel efficiency of cars and light trucks were improved by ONE mile per gallon it would save more oil than is likely ever to be recovered from ANWR

Ford Model T in 1908 – 20-25 mpg

Current Corporate Average Fuel Economy (CAFE) standards:

Cars - 27.5 mpgLight trucks (includes vans and most SUVs) – 20.7mpg

Another suggestion…

Fuel-Economy Rules Set EPA Climate-Change StandardApril 01, 2010

The Obama administration set the first national regulations targeting climate change, boosting U.S. automobile fuel-economy standards by about 30 percent.

The requirements were raised to an average of 35.5 miles per gallon for 2016 model-year cars and light trucks from 27.3 mpg in 2011. The final rule issued today will cost automakers $52 billion to comply and add $926 to the cost of buying a car within five years, according to government estimates.

“This is a significant step,” Environmental Protection Agency Administrator Lisa Jackson said in a joint statement with Transportation Secretary Ray LaHood. “Our economic and environmental priorities go hand-in-hand.”

Points to know1. How did the Industrial Revolution change human life and energy consumption? What was responsible for the shift from coal to oil?

3. What is the relationship between energy and economics? Why does energy consumption continue to increase in developed countries?

4. What is a reserve?

5. How is coal it extracted and turned into usable energy? What environmental problems are associated with it?

6. How are oil and natural gas formed & extracted? What environmental problems are associated with them?

7.What determines the price of oil and natural gas? What is OPEC and why do we have to be interested in it?

8. What are the pros and cons of opening ANWR to drilling?