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Fossil Fuels: Natural Gas Outline: Formation Global supply and Distribution NGCC Carbon management Biological Artificial

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Page 1: Fossil Fuels: Natural Gas - California Institute of TechnologyFossil Fuels: Natural Gas Outline: ... University of Houston Institute for Energy Law & Enterprise ... (GtC/yr) by 2025

Fossil Fuels: Natural Gas

Outline:FormationGlobal supply and DistributionNGCCCarbon management Biological Artificial

Page 2: Fossil Fuels: Natural Gas - California Institute of TechnologyFossil Fuels: Natural Gas Outline: ... University of Houston Institute for Energy Law & Enterprise ... (GtC/yr) by 2025

Formation of Natural Gas

Page 3: Fossil Fuels: Natural Gas - California Institute of TechnologyFossil Fuels: Natural Gas Outline: ... University of Houston Institute for Energy Law & Enterprise ... (GtC/yr) by 2025

Phases separate according to density, with the most dense water on the bottom, least dense gas on top and oil between the two.

Migration

Page 4: Fossil Fuels: Natural Gas - California Institute of TechnologyFossil Fuels: Natural Gas Outline: ... University of Houston Institute for Energy Law & Enterprise ... (GtC/yr) by 2025

% World Gas Reserves By Region

North America

3W. Europe

4C./S. America

8Africa

79% of the world’s gas reserves are in 12 countries

Asia & Oceania

536

Middle East

36

Eastern Europe

8

Source: EIA, International Energy Outlook, 2002

Page 5: Fossil Fuels: Natural Gas - California Institute of TechnologyFossil Fuels: Natural Gas Outline: ... University of Houston Institute for Energy Law & Enterprise ... (GtC/yr) by 2025

% World Oil/Gas/Coal Reserves By Region:Geopolitical Issues In Focus

C./S. America

Asia & Oceania

36

Middle East

57

North America

W. EuropeEastern Europe

Africa

26

518

248

686

93

2736

7

30

83

Source: EIA, International Energy Outlook, 2002Oil

Gas

Coal

Page 6: Fossil Fuels: Natural Gas - California Institute of TechnologyFossil Fuels: Natural Gas Outline: ... University of Houston Institute for Energy Law & Enterprise ... (GtC/yr) by 2025

Global Supply and DistributionBy country:

Country Total RecoverableNatural Gas

(x1012 ft3)

IranQatarSaudi ArabiaUnited Arab EmiratesAlgeriaUnited StatesNigeriaVenezuelaIraqIndonesia

939.371757.7228.2204.05

175.0172.635159.0149.207112.687.5

By region:

Region

Middle EastEastern EuropeAfricaAsia & OceanaNorth AmericaCentral & South AmericaWestern Europe

2367.9171950.524477.059419.921271.285250.223

182.440

Total RecoverableNatural Gas

(x1012 ft3)

http://www.eia.doe.gov/emeu/international/reserves.html

1 ft3 gas at STP = 1 MJ; 1x1016 ft3 = 1x1022 JAt current burn rate of ca 3 TW=1x1020 J/yr is 150 yrs

Page 7: Fossil Fuels: Natural Gas - California Institute of TechnologyFossil Fuels: Natural Gas Outline: ... University of Houston Institute for Energy Law & Enterprise ... (GtC/yr) by 2025

Deutsche BankDeutsche Banc Alex. Brown

15

New Baseload Electric Plant Costs

…long run with $3.20 gas and $1.20/mmBtu coal

-

10

20

30

40

50

60

70

Coal (PCC) high-env Coal (PCC) low-env Clean Coal (FB) Gas CCGT Nuclear

Source: Deutsche Bank estimates

Le

ve

lize

d p

ow

er

co

st

($/M

Wh

)

Fuel costs

O&M costs

Capital costs

Economics of New Baseload Electric PlantCosts Are Driving US Gas Demand

Page 8: Fossil Fuels: Natural Gas - California Institute of TechnologyFossil Fuels: Natural Gas Outline: ... University of Houston Institute for Energy Law & Enterprise ... (GtC/yr) by 2025

Natural Gas Combined Cycle (NGCC)Combine gas turbine generators with steam turbine generators powered by

steam from the waste heat of the gas turbine generator

800-300 800

= 62.5%

= 43.7%

800-400 800

450-300 450 = 33.3%

Page 9: Fossil Fuels: Natural Gas - California Institute of TechnologyFossil Fuels: Natural Gas Outline: ... University of Houston Institute for Energy Law & Enterprise ... (GtC/yr) by 2025

Markets

World’s LNG Facilities and Markets:Growing Regional and Global Markets

Existing Facilities ProposedFacilities

Source: World LNG/GTL Review

Page 10: Fossil Fuels: Natural Gas - California Institute of TechnologyFossil Fuels: Natural Gas Outline: ... University of Houston Institute for Energy Law & Enterprise ... (GtC/yr) by 2025

17 LNG Liquefaction (Export ) Terminals

40 Regasification (Import) Terminals

130 LNG Tankers (120 M Metric TonCapacity)

Source: University of Houston Institute for Energy Law & Enterprise

LNG Costs and Infrastructure

Gas Production: ………………$ .30 - $1.30

Liquefaction: …………………..$1.00 - $2.50

Shipping………………………….$ .60 - $1.10

Regasification…………………...$ .40 - $1.50

TOTAL: $2.30 - $6.40

Source: GTI LNG Source Book, 2001

Page 11: Fossil Fuels: Natural Gas - California Institute of TechnologyFossil Fuels: Natural Gas Outline: ... University of Houston Institute for Energy Law & Enterprise ... (GtC/yr) by 2025

Gas To Liquids Technology: AccessingStranded Gas, Serving Middle Distillate Market

Gas to Liquids

technology enables us to

bring stranded gas to

markets by converting

gas into high quality

liquid fuels that can be

transported to market in

the existing petroleum

infrastructure

Page 12: Fossil Fuels: Natural Gas - California Institute of TechnologyFossil Fuels: Natural Gas Outline: ... University of Houston Institute for Energy Law & Enterprise ... (GtC/yr) by 2025

Location of World’s Known andExpected Methane Hydrate Deposits

Page 13: Fossil Fuels: Natural Gas - California Institute of TechnologyFossil Fuels: Natural Gas Outline: ... University of Houston Institute for Energy Law & Enterprise ... (GtC/yr) by 2025

Enormous potential resource. USGSestimates that there are 320,000 tcf in the US.

Methane is 10 times more effective thanCO2 in causing global warming. Impacts ofmethane hydrate production unknown.

Gas hydrates may cause landslides on thecontinental slope

Production methods unclear

Role in ecosystem not clearly understood

Methane Hydrates: Long Term Potential,Significant Hurdles

Page 14: Fossil Fuels: Natural Gas - California Institute of TechnologyFossil Fuels: Natural Gas Outline: ... University of Houston Institute for Energy Law & Enterprise ... (GtC/yr) by 2025

Fossil Fuels:Carbon Management (i.e. Carbon Sequestration)

3 ways to reduce CO2 emissions:(1) Use fossil fuels more efficiently(2) Use fuels that are not carbon-based(3) Capture and sequester CO2 before it is leaked into the atmosphere

According to IPCC 1992“business as usual”calculations, CO2 emissions getreduced by 1 billion tons C yr-1

(GtC/yr) by 2025 and 4 GtC/yrby 2050.

http://www.fe.doe.gov/coal_power/sequestration/reports/rd/index.shtml

1 GtC/yr ≈ 2 TW

Page 15: Fossil Fuels: Natural Gas - California Institute of TechnologyFossil Fuels: Natural Gas Outline: ... University of Houston Institute for Energy Law & Enterprise ... (GtC/yr) by 2025

Global Carbon Cycle

--Net atm flux of 3.5 GtC/yr

http://www.fe.doe.gov/coal_power/sequestration/reports/rd/index.shtml

Page 16: Fossil Fuels: Natural Gas - California Institute of TechnologyFossil Fuels: Natural Gas Outline: ... University of Houston Institute for Energy Law & Enterprise ... (GtC/yr) by 2025

Global Carbon Cycle

--Fossil emissions of 6 GtC/yrmitigated partially by sinks

http://www.fe.doe.gov/coal_power/sequestration/reports/rd/index.shtml

Page 17: Fossil Fuels: Natural Gas - California Institute of TechnologyFossil Fuels: Natural Gas Outline: ... University of Houston Institute for Energy Law & Enterprise ... (GtC/yr) by 2025

Global Carbon Cycle

--Terrestrial ecosystems sequester1.7 GtC/yr

http://www.fe.doe.gov/coal_power/sequestration/reports/rd/index.shtml

Page 18: Fossil Fuels: Natural Gas - California Institute of TechnologyFossil Fuels: Natural Gas Outline: ... University of Houston Institute for Energy Law & Enterprise ... (GtC/yr) by 2025

Global Carbon Cycle

--Terrestrial ecosystems sequester1.7 GtC/yr

--But land use changes undo 1.4GtC/yr of sequestration

http://www.fe.doe.gov/coal_power/sequestration/reports/rd/index.shtml

Page 19: Fossil Fuels: Natural Gas - California Institute of TechnologyFossil Fuels: Natural Gas Outline: ... University of Houston Institute for Energy Law & Enterprise ... (GtC/yr) by 2025

Global Carbon Cycle

--Terrestrial ecosystems sequester1.7 GtC/yr

--But land use changes undo 1.4GtC/yr of sequestration

--Net 0.3 GtC/yr

http://www.fe.doe.gov/coal_power/sequestration/reports/rd/index.shtml

Page 20: Fossil Fuels: Natural Gas - California Institute of TechnologyFossil Fuels: Natural Gas Outline: ... University of Houston Institute for Energy Law & Enterprise ... (GtC/yr) by 2025

Global Carbon Cycle

--Terrestrial ecosystems sequester1.7 GtC/yr

--Oceans sequester 2.2 GtC/yr

http://www.fe.doe.gov/coal_power/sequestration/reports/rd/index.shtml

Page 21: Fossil Fuels: Natural Gas - California Institute of TechnologyFossil Fuels: Natural Gas Outline: ... University of Houston Institute for Energy Law & Enterprise ... (GtC/yr) by 2025

Global Carbon Cycle

--Terrestrial ecosystems sequester1.7 GtC/yr

--Oceans sequester 2.2 GtC/yr

--Doubling these might not be sounreasonable

http://www.fe.doe.gov/coal_power/sequestration/reports/rd/index.shtml

Page 22: Fossil Fuels: Natural Gas - California Institute of TechnologyFossil Fuels: Natural Gas Outline: ... University of Houston Institute for Energy Law & Enterprise ... (GtC/yr) by 2025

Global Carbon Cycle

--Terrestrial ecosystems sequester1.7 GtC/yr

--Oceans sequester 2.2 GtC/yr

http://www.fe.doe.gov/coal_power/sequestration/reports/rd/index.shtml

--Ocean holds ~ 4 x 104

GtC, and could in theoryhold another 1x104 GtCmore, which is more thanthe total C content of knownfossil fuel reservoirs

Page 23: Fossil Fuels: Natural Gas - California Institute of TechnologyFossil Fuels: Natural Gas Outline: ... University of Houston Institute for Energy Law & Enterprise ... (GtC/yr) by 2025

Ocean Sequestration----Direct sequestration: inject liquid or gaseous CO2 below 1000 ft below sea level,where it will sink to the ocean floor and take many decades to return to the surface--Indirect sequestration: fertilize ocean with trace minerals important for photosynthesis(Fe) to increase biomass of photosynthetic algae, which in turn fix more C--These systems are simple to engineer and could be completed with moderntechnology

Page 24: Fossil Fuels: Natural Gas - California Institute of TechnologyFossil Fuels: Natural Gas Outline: ... University of Houston Institute for Energy Law & Enterprise ... (GtC/yr) by 2025

Ocean Sequestration----Direct sequestration: inject liquid or gaseous CO2 below 1000 ft below sea level,where it will sink to the ocean floor and take many decades to return to the surface--Indirect sequestration: fertilize ocean with trace minerals important for photosynthesis(Fe) to increase biomass of photosynthetic algae, which in turn fix more C--These systems are simple to engineer and could be completed with moderntechnology

BUT:--CO2 dissolved in water forms small amounts of H2CO3, which lowers the water pH--Biological systems are exquisitely sensitive to pH, no one knows what the impact ofthis could be--Increased atmospheric CO2 concentrations have already lowered average ocean pH by0.1, still have not understood the effect this small change will have--CO2 from fossil fuel combustion is often contaminated with NOx and SOx that couldbe deadly for marine life

Page 25: Fossil Fuels: Natural Gas - California Institute of TechnologyFossil Fuels: Natural Gas Outline: ... University of Houston Institute for Energy Law & Enterprise ... (GtC/yr) by 2025

Global Carbon Cycle

--Terrestrial ecosystems sequester1.7 GtC/yr

--Oceans sequester 2.2 GtC/yr

--Doubling these might not be sounreasonable

http://www.fe.doe.gov/coal_power/sequestration/reports/rd/index.shtml

Terrestrial ecosystems store~2000 GtC, about 75% ofwhich is stored in soils

Page 26: Fossil Fuels: Natural Gas - California Institute of TechnologyFossil Fuels: Natural Gas Outline: ... University of Houston Institute for Energy Law & Enterprise ... (GtC/yr) by 2025

Terrestrial Sequestration

---Net annual sequestration ~2GtC/yr--Estimate that could beincreased (transiently) to asmuch as 10 GtC/yr--This will be done by doingthings that we SHOULD bedoing anyway, likereforestation, restoringwetlands, and halting soilerosion--These efforts are ongoing indeveloped nations, and havebeen successful (not yet clearbut it is possible that NorthAmerica is now a net C sink)--Not likely to happen soon indeveloping nations and limitedoverall sequestration capacity

Page 27: Fossil Fuels: Natural Gas - California Institute of TechnologyFossil Fuels: Natural Gas Outline: ... University of Houston Institute for Energy Law & Enterprise ... (GtC/yr) by 2025

Global Carbon Cycle

--Terrestrial ecosystems sequester1.7 GtC/yr

--Oceans sequester 2.2 GtC/yr

--Doubling these might not be sounreasonable

http://www.fe.doe.gov/coal_power/sequestration/reports/rd/index.shtml

Store CO2 in subterraneangeological formations

Page 28: Fossil Fuels: Natural Gas - California Institute of TechnologyFossil Fuels: Natural Gas Outline: ... University of Houston Institute for Energy Law & Enterprise ... (GtC/yr) by 2025

Geologic Sequestration

----Builds on the vast body of knowledge about underground reservoirs gathered inthe last 100 yrs during the search for coal, oil, and natural gas

Benefits:--Geologic oil and gas reservoirs remained sealed for millions of years, possible thatthey can hold CO2 for long time periods--80% of commercial CO2 is already used in oil and gas recovery to displace thedesired product (called enhanced oil recovery (EOR))--CO2 can be pumped into deep, unmineable coal seams to displace CH4--Natural gas is usually contaminated with up to 20% CO2 which can be removedand returned to the gas reservoir--Unlike other CO2 sequestration possibilities, geologic sequestration already occurson an industrial (albeit still insignificant) scale

US geologic formation CO2 storage capacity (GtC)

Deep saline aquifersNatural gas reservoirsOperation natural gas fieldsCoal bed methane field

1-13010-250.3/yr10

Page 29: Fossil Fuels: Natural Gas - California Institute of TechnologyFossil Fuels: Natural Gas Outline: ... University of Houston Institute for Energy Law & Enterprise ... (GtC/yr) by 2025

CO2 Burial: Saline Reservoirs130 GJ total U.S. sequestration potentialGlobal emissions 6 Gt/yr in 2002 Test sequestration projects 2002-2004

DOE, 1999

Page 30: Fossil Fuels: Natural Gas - California Institute of TechnologyFossil Fuels: Natural Gas Outline: ... University of Houston Institute for Energy Law & Enterprise ... (GtC/yr) by 2025

Geological Sequestration in the US

DOE Vision & Goal:1 Gt storage by 2025, 4 Gt by2050

• Near sources (power plants, refineries, coal fields)• Near other infrastructure (pipelines)• Need sufficient storage capacity locally• Must be verifiable (populated areas problematic)

Page 31: Fossil Fuels: Natural Gas - California Institute of TechnologyFossil Fuels: Natural Gas Outline: ... University of Houston Institute for Energy Law & Enterprise ... (GtC/yr) by 2025

Sleipner West Field, North Sea

--CH4 reservoir in Sleipner West field is contaminated with 10% CO2--After gas is pumped from reservoir, CO2 is removed by dissolutionin amine solvents--CO2 is returned to an aquifer 1000m below the sea bed--1 MtC sequestered annually, expected to continue for 20 yrs

Slides from Julio Friedmann, U. of Maryland

--This strategy wasprompted by Norway’s highC tax ($50/tC comparedwith $15/tC for storage)

Page 32: Fossil Fuels: Natural Gas - California Institute of TechnologyFossil Fuels: Natural Gas Outline: ... University of Houston Institute for Energy Law & Enterprise ... (GtC/yr) by 2025

Enhanced Oil Recovery (EOR)

--CO2 displaces oil in reservoir

--Supercritical CO2 can dissolvepetroleum, liquid becomes lessviscous and easier to pump

--102 active projects in US

Page 33: Fossil Fuels: Natural Gas - California Institute of TechnologyFossil Fuels: Natural Gas Outline: ... University of Houston Institute for Energy Law & Enterprise ... (GtC/yr) by 2025

Chemical Sequestration

--Use CO2 as a starting material for inorganic and organic syntheses

CO2 + 1/2 CaSiO3 + 1/2 H2O 1/2 Ca2+ + HCO3- + 1/2 SiO2

CO2 + 1/3 Mg3Si2O5(OH)4 MgCO3 + 2/3 SiO2 + 2/3 H2OCO2 + CO + CaSiO3 CaC2O4 + SiO2

CO2 + 3H2 CH3OH + H2O ΔH˚ = -31.3 Kcal/mol3 H2O 3 H2 + 3/2 O2 ΔH˚ = 205.05 Kcal/mol

ΔH˚< 0

Page 34: Fossil Fuels: Natural Gas - California Institute of TechnologyFossil Fuels: Natural Gas Outline: ... University of Houston Institute for Energy Law & Enterprise ... (GtC/yr) by 2025

Chemical Sequestration

--CO2 can be used as starting material in a variety of organic syntheses:

--This is complicated chemistry, drives much current chemical research