3 World Energy DemandIn 1999, with less than 5 % of the world's population, the US generated 30 % of the world's GDP (Gross Domestic Product), consumed 25 % of the world's energy, and emitted 25 % of the world's carbon dioxide."3
8 Fossil FuelsOil – liquid hydrocarbon phase formed during burial between 70 and 120C from kerogen.Natural Gas – hydrocarbons that are gaseous at earth surface conditions (C1-C4) and formed by thermal degradation of kerogen or oil, or by microbial action near surface.Coal – Solid phase hydrocarbon formed from organic matter deposited in fresh water shallow environments (swamps).
9 Fossil Fuels Pluses and Minuses Highly efficient fuels with good energy density and energy return.Large and mature infrastructure.Major liquid reserves are not domestic.Ultimately limited amount.May have reached or are reaching peak oil.Still don’t have clean coal.9
11 For electricity, America can become self-sufficient since 76% is generated domestically from US-based coal (50%), nuclear (19%) and hydro-power (7%).
12 Why are liquid hydrocarbons so desirable? Energy Density
13 Why are liquid hydrocarbons so desirable? Energy Payback
14 Resource Triangle Unconventional Conventional Reservoirs Small volumes that areeasy to developImproved technologyIncreased pricingUnconventionalLarge volumes difficult to develop
15 Liquid FuelsAlmost all liquid petroleum (oil) is refined producing liquid and solid products such as gasoline, jet fuel, petrochemical feedstocks and asphalt.Almost all liquids are used for transportation (gasoline and diesel).
18 BP Statistical Review of World Energy 2008 Proved oil reservesBP Statistical Review of World Energy 200818
19 But - transportation (auto, truck, aircraft, military), plastics and food energy demands are nearly 100% dependent on oil
20 Gaseous FuelsMost natural gas is used in home heating, electrical generation and petrochemical synthesis.So is compressed for transportation (LPG).The major current sources are conventional petroleum fields.The major future sources will be unconventional sources (coal beds, tight sandstones and shale).20
21 Production of Coal Bed Gas Groundwater is removed from shallow coal beds to release natural gas (methane).Production of water is much higher (10-100X) than traditional gas wells(400 bbl. water = 100 MCF)Capacity of traditional water disposal method (re-injection) is limited
23 Coal – the solid hydrocarbon 6.2 billion tons annually (global)75% is burned to produce electricityDistribution is fairly uniform on global scale
24 Coal Formed when organic-rich sediments were buried to form peat Further burial creates more carbon–rich formsLignite or brown coal, fuel onlySub-bituminous, fuelBituminous, dense, black, fuel and cokeAnthracite, glossy black, heating
25 Using Coal Coal Carbon Based Products Electrical Generation Standard PulverizedCoal PlantCoal GasificationIGCC Coal PlantAmmoniaFertilizerNatural GasLiquids
26 Coal Emissions of toxic products Nitrogen produces nitric acid (HNO3), NOXSulfur produces SO2, sulfuric acid (H2SO4), SOXMajor metal is mercury (Hg)Produces Flyash as by-product of combustion
27 Using Coal Large domestic resource Infrastructure in place Carbon tax will increase electricity costsWill need “clean coal” – capture and dispose of C, N, S and Hg (Future Gen)
28 Demand for Energy Will Continue to Rise Oil and gas provide about two-thirds of energy consumed Quadrillion BtuI based the percentages on EIA report numbersOil 40%YearDOE EIA, Annual Energy Outlook 2004, Figure 2
29 Future of Petroleum Industry Development of unconventional resources (heavy oils, tar sands, gas, oil shale, coal-to-liquids)Broad implementation of EOR/IORBig companies are diversifying into other energy sources29