Coal Major source of energy since 19c. Production in eastern and western US Significant CO 2 and particulate emissions Cleaner plants (still disposal issue) Coalbed methane (capital investment) International CO 2 reduction ( e.g., EPA/China ) Coal consumption down -both US & World Key factors in production: rank, thickness, continuity of beds; sulfur content; transportation; politics
Nuclear Significant since early 1970’s No new plants approved, but licenses renewed in several Many plants deactivated Nuclear waste disposal issue International issues - Russia/FSU - France/Korea/Japan Three Mile Island (1979) & Chernoble (1986)
Types of Oil and Gas Wells Exploration (high risk) ~ 10% av. success rate Frontier New basins Development (lower risk) Fields ( Rocky Mt thrust belt v. Permian Basin)
Summary U.S. oil production will continue to decline U.S. increasing will be dependent upon oil imports Natural gas is of growing significance Renewable energy and new technologies are extremely important Protecting the environment is a high priority A strong economy is a high priority
April, 2001 WSJ/NBC poll found that energy was our most important economic issue by 3 to 1. US energy self-sufficiency is a myth (if we rely on fossil fuels). Is anyone concerned in Jan, 2002?
Part 3Petroleum Reserves Industry Inventories –For operational needs (pipelines, refineries, supply/demand) Strategic Petroleum Reserve (SPR) –Government controlled, emergency use
Strategic Petroleum Reserve 700 mmbo capacity at four salt domes in US Gulf Coast ( 545 mmbo in place in 2001 ). The SPR can hold approximately 70 days of oil imports at current demand.