peak oil opportunities and challenge at the end of cheap petroleum
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The Challenge of Peak Oil. Peak Oil Opportunities and Challenge at the end of Cheap Petroleum. Richard Heinberg Scripps College September 18, 2006. Richard Heinberg Electric Aircraft Symposium May 23, 2007. Chevron:. - PowerPoint PPT PresentationTRANSCRIPT
Peak OilOpportunities and Challenge
at the end of Cheap Petroleum
Peak OilOpportunities and Challenge
at the end of Cheap Petroleum
Richard Heinberg Scripps College
September 18, 2006
The Challenge
of Peak Oil
The Challenge
of Peak Oil
Richard HeinbergElectric Aircraft Symposium
May 23, 2007
Richard HeinbergElectric Aircraft Symposium
May 23, 2007
Chevron:
“Oil production is in decline in 33 of the 48 largest oil producing countries, yet energy demand is increasing around the globe as economies grow and nations develop.” www.willyoujoinus.com
Global Oil Discoveries
ExxonMobil 2003
Post Carbon Institute
Global crude oil production
All liquid fuels
Saudi Arabia production
Mexico Production
Above-ground factors• Remaining reserves located mostly in
politically and geographically problematic areas (e.g., Nigeria, Iraq, ultra-deep water—not Texas or Pennsylvania!)
• Lack of equipment (shortage of drilling rigs)
• Lack of trained personnel
• The latter two factors can be fixed—but not quickly!
The export quandary• Every year there are fewer exporters, more
importers• Exporters are also consumers, so the amount
available for export is production minus domestic consumption
• With high prices, exporting countries are flush with cash, their economies are growing, domestic oil consumption is rising
• Result: Available exports will start to shrink before peak and shrink much more rapidly than the rate of decline in total global oil production
How serious a problem is this?
Peaking of World Oil Production: Impacts, Mitigation, & Risk Management
Robert L. Hirsch, SAIC, Project Leader (commissioned by US Department of Energy, February 2005)
EXECUTIVE SUMMARYThe peaking of world oil production presents the U.S. and the world with an unprecedented risk management problem. As peaking is approached, liquid fuel prices and price volatility will increase dramatically, and, without timely mitigation, the economic, social, and political costs will be unprecedented. Viable mitigation options exist on both the supply and demand sides, but to have substantial impact, they must be initiated more than a decade in advance of peaking.
GAO report on Peak Oil
• Released April 2007; conclusions: • Did not attempt a time estimate; forecasts
of peak range from 2005 to 2030• The risks are serious and growing• At best, the US can replace 4% of its liquid
fuels with alternatives by 2015• Secretary of Energy should establish a
federal Peak Oil strategy
What are the alternatives?
• Liquids from natural gas (Fischer-Tropsch)
• Liquids from coal
• Biofuels
• Hydrogen
• Electrified transport
• Conservation
Post Carbon Institute
0
1000
2000
3000
4000
5000
1950 2000 2050 2100
Worldwide possible coal production M toe
OECD North America
China
LA
OECD Pacific
OECD Europe
SouthAsia
East Asia
FSU
subbituminous
subbituminous
bituminous
bituminous
bituminous
bituminous
lignitelignite
lignite
lignite
lignitelignite
bituminous
Year
WEO 2006: Reference scenario
WEO 2006: Alternative policy scenario
Post Carbon Institute
A second coal study… From “The Future of Coal” report to the European
Commission from the Institute for Energy (in draft)
• “[T]he world could run out of economically recoverable … reserves of coal much earlier than widely anticipated.”
• “The amount of actual recoverable coal is … less than the widely published estimates of reserves.”
• “[C]oal might not be so abundant, widely available and reliable as an energy source in the future.”
World Energy
A liquid fuels crisis?• Because of impending supply constraints
for natural gas and coal, “Peak Oil” is not just a liquid fuels crisis, but the beginning of an across-the-board energy crisis affecting over 90% of current sources.
• This must inform our strategy: fuel switching will be of limited help, and attention must be paid to electricity supply.
Post Carbon Institute
Evaluating supply options• Energy return on investment
• Size of resource
• Infrastructure requirement
• Convenience of use
• Environmental impact
• Renewability
• Scalability
• Location of resource
Conservation: efficiency and curtailment
• Like alternative energy sources, conservation (efficiency) requires investment.
• Investments yield diminishing returns.• However, at least in the initial stages,
efficiency is almost always cheaper than new supply options.
• Curtailment is the cheapest option of all, but requires changes in habits and expectations.
Summary• Energy supply problems will arise soon• We are not prepared• As time goes on, the supply challenge will
spread to include all fossil fuels• There is no credible scenario in which new
energy sources can be ramped up fast enough to make up for these accelerating supply shortfalls
• We must begin now to design a lower-energy societal infrastructure
postcarbon.org
richardheinberg.com
Transportation: Electrify it!
Rail and light rail—the best long-term options for motorized land transport of freight and people… electric air transport as well?
Personal land transport• The Velomobile
• 20-50 times as efficient as a Prius
• Electric assist