1. Chapter 1
Energy economics and policy

4. Rise and Fall of Empires Based Primarily on Human and Animal Power

5. Wood as an Industrial Fuel

6. Spanish Armada Brought on a Wood Crisis in England

7. Glass Making and Metallurgy Resulted in a First Energy Crisis

8. Coal at Newcastle Solved the Energy Crisis

9. Newcomen Saved Coal Mining from Drowning
and Launched Industrial Revolution

10. Unintended Consequences─Air Pollution
Greenhouse Gases, NOx, SOx, Metals
Need for a Public Policy to Address Issue

11. Basic Unit for Measuring Energy─British Thermal Unit (Btu)
Quad is one quadrillion Btu or 1015 Btu
World consumption about 500 quad
US consumption about 100 quad

12. A Btu is approximately the heat produced by burning a wooden match
Definition of Btu
A Btu is defined as amount of heat (energy) required to raise the temperature of 1 pound (0.454 kg) of liquid water by 1°F (0.556°C) at a constant pressure of one atmosphere (14.7 pounds per square inch)
Variations in the definition of a Btu mostly based on different water temperatures
A Btu is approximately the heat produced by burning a wooden match

13. A therm is 100,000 or 105 Btu
mmBtu represents one million or 106 Btu
A quad (quadrillion) is 1,000 trillion or 1015 Btu
or 1,000,000,000,000,000 Btu
A stack of one trillion dollar bills (no air spaces) is nearly 70,000 miles high─about one-quarter of the way to the moon
A stack of one quadrillion dollar bills— well it’s quite high (70 million miles)—about the distance from the sun to venus

14. Converting Mtoe to Quads 1 Mtoe = 39.7 trillion Btu
1000 Mtoe = 39.7 quadrillion Btu or quad
1 quad = 25.2 Mtoe
1965 total energy consumption in UK of Mtoe
is equivalent to 7.8 quad
1965 total world energy consumption of 3,813 Mtoe is quad
2010 total world energy consumption of 12,928 Mtoe is 513 quad
Of which
US 91 quads
China 118 quads

15. Oil 74.2 2.94 Gas 0.7 0.03 Coal 117.4 4.66 Nuclear 3.4* 0.13 Hydro
1965 UK
Mtoe
Quads
Oil
74.2
2.94
Gas
0.7
0.03
Coal
117.4
4.66
Nuclear
3.4*
0.13
Hydro
1.0*
0.04
Total MTOE
196.7
7.81
*This is the amount of fossil fuel that would have to be burned to generate the same amount of electricity by nuclear and hydro assuming a 38% efficiency in converting thermal energy to electricity

16. Replacing Traditional Energy Sources with Renewables
Figure 1.1
Replacing Traditional Energy Sources with Renewables
Will Take Three Decades Minimum

17. Distribution of Energy Sources for Japan over Time
Table 1.1
Distribution of Energy Sources for Japan over Time
Wood
Coal
Oil
Nat Gas
Hydro
Nuclear
1880
85%
14% 1%
1900
39%
57% 4%
1940
10%
66% 8%
16%
1970
22%
71% 6% 0%
1990
18% 5%
2010
23%
43%
17%
13%

18. Oil crisis in the 1970s was the shot across the bow, but we did essentially nothing for 40 years
If energy transitions take decades—shown below for US— it will take great determination for renewables to become significant

19. Growth of Major Sources of Energy (Quads)
Figure 1.2
Growth of Major Sources of Energy (Quads)

20. Cumulative Distribution of Major Sources of Energy
Figure 1.3
Cumulative Distribution of Major Sources of Energy

21. Percentage Distribution of Global Energy Consumption
Figure 1.4
Percentage Distribution of Global Energy Consumption

22. Comparative Percentage Reliance on Energy for China and US
Figure 1.5
Comparative Percentage Reliance on Energy for China and US

23. Estimated US Energy Use in 2014: ~98.3 Quads
Figure 1.6
Estimated US Energy Use in 2014: ~98.3 Quads

24. Global Energy Status and Projections

25. A Model to Project Energy Demand
Global energy consumption = a + b1*GDP per Capita + b2*Energy per Capita + b3*Population (millions)

26. World Population in Billions
Figure 1.7
World Population in Billions

27. 12 children plus 6 stillborns and no heir to the throne
Queen Anne of England
12 children plus 6 stillborns and no heir to the throne

28. Actual and Projected Annual Growth Rates and Increments to Population
Figure 1.8
Actual and Projected Annual Growth Rates and Increments to Population

29. Per Capita Energy Consumption (Toe)
Figure 1.9
Per Capita Energy Consumption (Toe)

30. Living Beyond One’s Means Adds to GDP

31. Per Capita Economic Activity Before 1800
Figure 1.10
Per Capita Economic Activity Before 1800

32. Per Capita Economic Activity Post-1800
Figure 1.11
Per Capita Economic Activity Post-1800

33. Per Capita Economic Activity in Constant GK$
Figure 1.12
Per Capita Economic Activity in Constant GK$

34. Global Energy Demand Projection (mmToe)
Figure 1.13
Global Energy Demand Projection (mmToe)

35. History of Energy Consumption

38. Some say nineteenth century was for coal and twentieth century for oil
Not true—coal still is a very important source of energy
Coal + oil over two-third of total energy sources

39. End of Chapter 1