ENERGY MIX & NEEDS Matthew W. Rhoades SCHC 390M 9/7/20151

Energy Basics by Source Petroleum Natural Gas Electricity Coal Nuclear Renewable & Alternative Fuels 9/7/2015SCHC 390M2

Source Basics by Topic Production/Generation Consumption Reserves and Resources Capacity Prices Import/Export 9/7/2015SCHC 390M3

OECD Organisation for Economic Co-Operation and Development AUSTRALIA AUSTRIA BELGIUM CANADA CZECH REPUBLIC DENMARK FINLAND FRANCE GERMANY GREECE HUNGARY ICELAND IRELAND ITALY JAPAN KOREA LUXEMBOURG MEXICO NETHERLANDS NEW ZEALAND NORWAY POLAND PORTUGAL SLOVAK REPUBLIC SPAIN SWEDEN SWITZERLAND TURKEY UNITED KINGDOM UNITED STATES Countries invited to membership talks CHILE ESTONIA ISRAEL RUSSIA SLOVENIA Enhanced engagement BRAZIL CHINA INDIA INDONESIA SOUTH AFRICA 9/7/2015SCHC 390M4

OPEC The Organization of the Petroleum Exporting Countries Algeria Angola Ecuador (which rejoined OPEC in November 2007) Indonesia Iran Iraq Kuwait Libya Nigeria Qatar Saudi Arabia the United Arab Emirates Venezuela 9/7/2015SCHC 390M5

Petroleum The word petroleum generally refers to crude oil or the refined products obtained from the processing of crude oil (gasoline, diesel fuel, heating oil, etc.) We find petroleum products in every area of our lives. They are easily recognized in the gasoline we use to fuel our cars and the heating oil we use to warm our homes. However, petroleum-based components are also used in plastics, medicines, food items, and a host of other products. 9/7/2015SCHC 390M6

Petroleum Production-Global The top five oil producing countries, which together accounted for about 43% of total world production, were: Russia, Saudi Arabia, the United States, Iran, and China. The Organization of Petroleum Exporting Countries (OPEC), which includes Saudi Arabia, produced about 44% of the world total. 9/7/2015SCHC 390M7

Petroleum Production & Imports: U.S. 9/7/2015SCHC 390M8 In 2006, total U.S. domestic crude oil production, including Federal offshore, averaged a decrease of about 47% from The top six crude oil-producing States in 2006 (and their percent share of total domestic production) were Texas (21%), Alaska (15%), California (12%), Louisiana (4%), Oklahoma (3%), and New Mexico (3%). Production on Federal offshore- leases in the Gulf of Mexico in 2006 was about 25% of total U.S. production.

Petroleum Production & Imports: U.S. 9/7/2015SCHC 390M9 U.S. domestic crude oil production peaked in 1970 and since then imports of crude oil and of refined petroleum products have contributed a growing share of the petroleum supplied to meet U.S. demand (see graph at right). In 2006 the top two countries we imported crude oil from were our neighbors: Canada and Mexico. The U.S. imports crude oil from over 60 countries. 69% of net imports of crude oil were from five countries: Canada, Mexico, Saudi Arabia, Venezuela, and Nigeria. Imports from all OPEC countries were 47% of total U.S. crude oil imports.

Petroleum Consumption - U.S. 9/7/2015SCHC 390M10

Petroleum Consumption - Global 9/7/2015SCHC 390M11

Petroleum Reserves - Global 9/7/2015SCHC 390M12

Petroleum Reserves – U.S. 9/7/2015SCHC 390M13 Total proved reserves of crude oil in the United States, as of year- end 2006, are billion barrels, a 3.6 percent decrease from those of Thirty-one States have crude oil reserves. The top five are: –Texas, with 4.9 billion barrels –Alaska, with 3.9 billion barrels –California, with 3.4 billion barrels –Wyoming, with 706 million barrels –New Mexico, with 696 million barrels.

Natural Gas Natural gas is mostly methane. It is best known as the fuel that produces the blue flame that heats our food, our water, and our homes and buildings. It is also used to generate electricity, provide heat for industrial processes, and as a raw material to produce petrochemicals, plastics, paints, and a wide variety of other products. 9/7/2015SCHC 390M14

Natural Gas Consumption – U.S. In 2005, U.S. natural gas consumption reached 22.2 trillion cubic feet (Tcf), down 1 percent from The historical peak in U.S. natural gas consumption occurred in 2000 when 23.3 Tcf were consumed. Total U.S. natural gas consumption is forecasted to increase from 22.2 Tcf in 2005 to 26.1 Tcf in Most of the increase is seen before 2020, when total U.S. natural gas consumption reaches 26.3 Tcf. After 2020, high natural gas prices limit consumption to about 26 Tcf through Consequently, the natural gas share of total energy consumption drops from 23 percent in 2005 to 20 percent in /7/2015SCHC 390M15

Natural Gas Production The Federal Offshore Gulf of Mexico and five States accounted for the majority of the natural gas production in the United States, comprising 76.6 percent of the total in 2006: –Texas (27.8 percent) –Federal Offshore Gulf of Mexico (15.7 percent) –Wyoming (9.4 percent) –Oklahoma (8.6 percent) –New Mexico (8.1 percent) –Louisiana (6.8 percent) 9/7/2015SCHC 390M16

Natural Gas Reserves 9/7/2015 SCHC 390M17

Coal Coal is a combustible black or brownish-black sedimentary rock composed mostly of carbon and hydrocarbons. It is the most abundant fossil fuel produced in the United States. Over 90 percent of the coal used in the United States is used to generate electricity. 9/7/2015SCHC 390M18

Coal Consumption During 2005, a record was consumed in the United States. The greatest demand for coal was by electricity generating plants that burn coal to produce electricity. 92 percent of the total, was used by the electric power sector to produce about half (49.7 percent) of all electricity generated. Each ton of coal consumed at an electric power plant produces about 2,000 kilowatt-hours of electricity. A pound of coal supplies enough electricity to light ten 100- watt bulbs for about an hour. 9/7/2015SCHC 390M19

Coal Reserves The distribution of coal reserves around the world varies notably from that of oil and gas. Significant reserves are found in the United States and Russia but not in the Middle East. The United States with 27 percent and Russia with 17 percent account for nearly half of global coal reserves. China (13 percent), Australia (9 percent), South Africa (5 percent), and Kazakhstan (3 percent) also have significant amounts of the world's recoverable coal reserves. 9/7/2015SCHC 390M20

Coal Projections From 2004 to 2030, coal production in China, the United States, and India, driven by growing coal consumption, is projected to increase. It is assumed that most of the demand for coal in China, the United States, and India will continue to be met by domestic production. The projected increases in coal production for the three countries dominate the overall trends in the OECD and non-OECD regions, accounting for 71 percent of the increase in production for the entire OECD region and 79 percent of the increase in the non-OECD region. Increased demand for international trade is expected to support production increases in Australia/New Zealand, Russia, other non-OECD Asia, Africa, and Central and South America (excluding Brazil). China and India together account for 72 percent of the projected increase in world coal consumption from 2004 to Strong economic growth is projected for both countries, and much of the increase in their demand for energy, particularly in the industrial and electricity sectors, is expected to be met by coal. 9/7/2015SCHC 390M21

Coal Projections 9/7/2015SCHC 390M22

Electricity Electricity is a secondary energy source which means that we get it from the conversion of other sources of energy, like coal, natural gas, oil, nuclear power and other natural sources, which are called primary sources. The energy sources we use to make electricity can be renewable or non-renewable, but electricity itself is neither renewable or non-renewable. 9/7/2015SCHC 390M23

Electricity Generation In 2006, coal generated the largest share of electricity - 49%. Natural Gas generation accounts for 20%. Nuclear-powered generation accounts for 19%. In 2006, hydroelectric generation had the fourth largest share (7%) of electricity production. All other renewables account for only 3% of electricity generation in /7/2015SCHC 390M24

Electricity Generation – Current and Projected 9/7/2015SCHC 390M25

Electricity Capacity – Current and Projected 9/7/2015SCHC 390M26

Electricity 9/7/2015SCHC 390M27

Nuclear A nuclear power plant operates basically the same way as a fossil fuel plant, with one difference: the source of heat. The process that produces the heat in a nuclear plant is the fissioning or splitting of uranium atoms. That heat boils water to make the steam that turns the turbine-generator, just as in a fossil fuel plant. The part of the plant where the heat is produced is called the reactor core. Nuclear power accounts for about 19 percent of the total electricity generated in the United States, an amount comparable to all the electricity used in California,Texas, and New York, our three most populous (having the most people) states. 9/7/2015SCHC 390M28

Nuclear Capacity 9/7/2015SCHC 390M29

Nuclear Generation 9/7/2015SCHC 390M30

Nuclear Projections 9/7/2015SCHC 390M31

Renewable Whereas fossil fuels are exhaustible, renewable energy sources - water (hydropower), biomass, wind, heat from the earth (geothermal), and the sun (solar energy) - regenerate and can be sustained indefinitely. "Green" renewables contribute much less to global warming and climate change by offsetting fossil fuels used to generate electricity. In 2005, about 6% of all energy consumed, and about 9% of total electricity production was from renewable energy sources. 9/7/2015SCHC 390M32

Renewable Consumption Renewable energy consumption increased 2 percent from 2004 to 2005, while total U.S. energy consumption remained flat. The electric power and industrial sectors continued to have the largest portions of renewable energy consumption with 56 and 29 percent of the market respectively. The transportation sector has been on an upward trend since 2001, and increased 17 percent between 2004 and Growth in renewable transportation fuels ethanol and biodiesel has powered this growth. 9/7/2015SCHC 390M33

World Market Projections 9/7/2015SCHC 390M34

Energy Mix SCHC 390M9/7/201535

Energy Mix SCHC 390M9/7/201536

Energy Mix SCHC 390M9/7/201537

State – Level Energy Consumption SCHC 390M9/7/201538

Interesting Chart 9/7/2015SCHC 390M39

Fin Questions? or Comments 9/7/2015SCHC 390M40