Energy, Environment, and Industrial Development Michael B. McElroy Frederick H. Abernathy Lecture 18 April 18, 2005

© Science A 52 FHA + MBM 2  Petroleum. The word comes from Latin words. Petra-rock and oleum – oil  Crude oil is a thick, brown or greenish flammable liquid  Consists of a complex mix of various hydrocarbons, largely in the alkane series. Can vary greatly in appearance, composition and purity.  Oil also contains sulfur. “Sweet” oil refers to oil with low sulfur content. “Sour” oil is high in sulfur

© Science A 52 FHA + MBM 3  The four lightest alkanes are CH 4 (methane), C 2 H 6 (ethane), C 3 H 8 (propane), and C 4 H 10 (butane)  These are gases. Boiling points: CH 4 ( o C), C 2 H 6 (-88.6 o C), C 3 H 8 (-42 o C), and C 4 H 10 (-0.5 o C)  Chains in the C 5-7 range are light, easily vaporized, clear naphas.  Chains from C 6 H 14 through C 12 H 26 are blended to make gasoline  Kerosene is composed of chains in the C range  Diesel fuel and heating oils are in the range of C 10-20

© Science A 52 FHA + MBM 4  Boiling points for light petrol used as an automobile fuel are in range o C  Heavy petrol, also used as auto fuel, boils between o C  Light kerosene boils o C  Heavy kerosene, used as jet engine fuel, boils o C  Diesel boils o C  Engine oil, used for lubrication, boils > 300 o C  Heavies compounds used to make tar, asphalt and residual fuel

© Science A 52 FHA + MBM 5 The Oil Producing Countries (2003)  Saudi Arabia (OPEC)  United States  Russia  Iran (OPEC)  Mexico  China  Norway  Canada  United Arab Emirates (OPEC)  Venezuela (OPEC)  UK  Kuwait (OPEC)  Nigeria (OPEC)

© Science A 52 FHA + MBM 6 Major Exporters  Saudi Arabia (OPEC)  Russia  Iran (OPEC)  U.A.E. (OPEC)  Venezuela (OPEC)  Kuwait (OPEC)  Nigeria (OPEC)  Mexico  Algeria (OPEC)  Libya (OPEC)

© Science A 52 FHA + MBM 7 Countries with largest reserves  Saudi Arabia (OPEC)  Iraq  U.A.E. (OPEC)  Iran (OPEC)  Russia

© Science A 52 FHA + MBM 8  Oil is formed from decay of prehistoric marine plants and animals  Buried under thick sedimentary layers  Heat and pressure turns it into a waxy material known as kerogen and then into liquid and gaseous forms  These migrate through rock layers until they are eventually trapped in porous rock reservoir – oil field  Liquid brought to surface by drilling and pumping

© Science A 52 FHA + MBM 9 Economics of Oil Production  In early days, energy equivalent of 1 barrel oil was used to recover 50 barrels  Today 1-5 barrels recovered for every barrel expanded  Costs approximately $1 to pump a barrel of oil out of the ground in Saudi Arabia. Price delivered to the refinery in the U.S. ~$50

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© Science A 52 FHA + MBM 11 Source: Oil prices from in 1999 dollars

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© Science A 52 FHA + MBM 13  Current global oil production is about 25 billion barrels per year  Value  $1.25 trillion  In a recent year, new discoveries amounted to only 8 billion barrels  International Energy Agency (IEA) projected annual demand to grow to more than 30 billion barrels per year  No surplus capacity? Are rising prices inevitable?

© Science A 52 FHA + MBM 14  Expensive alternatives to today’s oil include the Athabasca oil sands in U.W. Canada and the Venezuelan Orinoco tar sands  Estimates suggest these reservoirs may contain as much as two thirds of world’s total oil  Significant energy required to liberate soil from tar sands  Implications for CO 2

© Science A 52 FHA + MBM 15 History of Oil Use  Oil seeps were exploited in Mesopotamia as far back as 3000 BC  Bitumen was traded extensively in the ancient Middle East  Greek fire: a mixture of petroleum and lime. Caught fire when moisture introduced.  First oil wells drilled in China in 4 th century; bamboo pipelines from oil wells to salt springs in 10 th century  Oil interest received in Galicia and Romania in early 1800’s  Kerosene used to light lamps by 1850  European crude production estimated at 36,000 barrels in 1859, mainly from Galicia and Romania

© Science A 52 FHA + MBM 16 History of Oil Use  George Bissell’s vision: to drill for oil and use it as an illuminant. Professor Silliman’s contribution  The Pennsylvania Rock Oil Company  “Colonel” Drake drills first well at Titusville, 1859

© Science A 52 FHA + MBM 17  Canadian Dr. Abraham Gesner coined the word kerosene (wax oil). Developed a process for extracting oil from asphalt and refining it to make illuminating oil. Applied for US patent 1854  Built plant in New York City producing 5000 gallons a day by Many companies in game. Kerosene from coal (coal oil)  Drake strikes oil in Titusville, August 27, 1859  First flowing well struck April 1861 – 3000 barrels per day  3 million barrels produced in Price drops to 10 cents a barrel

© Science A 52 FHA + MBM 18  US exports oil to Europe  Price rises to $13.75 a barrel at end of Civil War  John D. Rockefeller buys out partner Maurice Clark 1865  Standard Oil Company formed January 10, Rockefeller retain one quarter of stock  Royal Dutch discovers oil in Sumatra, 1885  Henry Ford builds first car  Oil in Oklahoma 1905  First gas station, St. Louis, 1907  Oil in Persia, 1908  Standard of California wins concession in Saudi Arabia, 1933

© Science A 52 FHA + MBM 19  Arab oil embargo, Price rises from $2.90  $ Alaskan pipeline approved  Hostages taken in Iran, 1979  Price rises $13  $34  Exxon Valdez accident, 1989