1. Energy Resources Wednesday, March 16

2. Energy Flow 2002 – United States Source: http://www.eia.doe.gov/emeu/aer/diagram1.html

3. $ Energy BTUs S D U.S. Energy Market

4. U.S. Energy Flow 2002 Domestic Production Quadrillion BTUs Coal22.55 Natural Gas19.56 Crude Oil12.31 Nuclear8.15 Renewables5.9

5. Energy BTUs $ CoalRenewables Crude S cr SrSr S co D Example: Distribution of Consumption Among Alternative Sources of Energy, U.S.

6. Energy BTUs $ CoalRenewables Crude S cr SrSr S co D Do energy costs reflect true costs of their use?

7. Energy BTUs $ CoalRenewables Crude S cr SrSr S co D Do energy costs reflect true costs of their use?

8. U.S. Energy Flow 2002 Crude Oil (quad. BTUs) Total Energy (quad. BTUs) Domestic Production 12.3170.95 Imported24.3129.04

9. The Global Oil Market  http://www.npr.org/news/specials/oil series/global.html

10. $ Quantity of petroleum Domestic Supply SDSD Domestic Demand International Supply SISI The U.S. Petroleum Market: Graph #1 PwPw QtQt QdQd imported

11. $ Quantity of petroleum Domestic Supply SDSD Domestic Demand International Supply SISI The U.S. Petroleum Market: Graph #2 QdQd PdPd Loss PwPw Q d2 P d2

12. $ Quantity of petroleum Domestic Supply SDSD Domestic Demand International Supply SISI The U.S. Petroleum Market: Graph #3 S I2 PwPw P w2 QdQd QtQt QdQd QtQt

13. $ Quantity of petroleum Domestic Supply SDSD Domestic Demand International Supply SISI The U.S. Petroleum Market: Graph #4 PwPw QdQd SDSD QtQt QdQd

14. $ Quantity of petroleum Domestic Supply SDSD Domestic Demand International Supply SISI The U.S. Petroleum Market: Graph #5 D QdQd QtQt QtQt

15. Conservation  http://www.npr.org/news/specials/oil series/conserve.html

16. Crude Oil -- Elasticity of Demand CountryShort Run Elasticity Long Run Elasticity United States-0.061-0.453 France-0.069-0.568 New Zealand-0.054-0.326 Source: J.B.Cooper “Price Elasticity of Demand for Crude Oil: Estimates for 23 Countries.” OPEC Review, March 2003

17. $ Quantity of petroleum Domestic Supply SDSD Domestic Demand International Supply SISI The U.S. Petroleum Market: S I2 P w2 Q

18. $ Quantity of petroleum Domestic Supply SDSD Domestic Demand International Supply SISI The U.S. Petroleum Market: S I2 P w2 Q

19. $ Quantity of petroleum Domestic Supply SDSD Domestic Demand International Supply SISI The U.S. Petroleum Market: Graph #6 S I2 P w2 Welfare loss from self-sufficiency