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C. Michael Ming Shales Moving Forward Oklahoma Geological Survey Norman, Oklahoma July 21, 2011 Transformative Technology Impacting Traditional Energy Systems

Transformative Technology Impacting Traditional Energy Systems

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Page 1: Transformative Technology Impacting Traditional Energy Systems

C. Michael MingShales Moving Forward

Oklahoma Geological SurveyNorman, Oklahoma

July 21, 2011

Transformative Technology Impacting Traditional Energy Systems

Page 2: Transformative Technology Impacting Traditional Energy Systems

Designing An Optimal Energy System

• Begin With Traditional Fuels At Scale

• Determine System Constraints & Establish Objectives

• Maximize Efficiency

• Synergistically Add Renewables

• Make The System Smart, Very Smart

• Simultaneously Continue To Work On Energy Transformations

Integration, Not A Silver Bullet, Is The Key Today

Page 3: Transformative Technology Impacting Traditional Energy Systems

It’s

All

About

Optimizing

Components

Getting The Bigger Picture: Ball Bearings

Page 4: Transformative Technology Impacting Traditional Energy Systems

Optimizing Any Component Can Improve The System

Source: Hinrichs/Kleinbach, Energy – Its Use and the Environment

Page 5: Transformative Technology Impacting Traditional Energy Systems

Source: EIA, 2009

Page 6: Transformative Technology Impacting Traditional Energy Systems
Page 7: Transformative Technology Impacting Traditional Energy Systems

PHOTOGRAPH BY JEFF RIEDEL FOR TIME

Exceeding Expectations

Page 8: Transformative Technology Impacting Traditional Energy Systems

The U.S. Gas Shale Ramp

• The Barnett grew 3000% from 1998 to 2007

• The Eagle Ford, Fayetteville, Haynesville, Marcellus, and Woodford will dwarf this

• Technology improvements in horizontal drilling and fracturing have economically enabled vast new unconventional and conventional resources.

8Source: Smead, Navigant Consulting, June 2009; MIT, The Future of Natural Gas 2010

Page 9: Transformative Technology Impacting Traditional Energy Systems

Natural Gas Demand

Resilience in gas use across sectors

Potential major growth areas:

Electricity• Natural gas substitution for coal

• Intermittent sources/variability & uncertainty

Transportation• Long term potential for CNG

• LNG not currently attractive

Source: MIT, The Future of Natural Gas 2010

Page 10: Transformative Technology Impacting Traditional Energy Systems

Natural Gas, A 60-year Bridge (At Least)

Source: MIT, The Future of Natural Gas 2010

Page 11: Transformative Technology Impacting Traditional Energy Systems

Inc

rea

se

d C

os

t &

Ris

k

Imp

rove

d T

ec

hn

olo

gy

Source: Steve Holditch

Technology Has Driven The Growth

Page 12: Transformative Technology Impacting Traditional Energy Systems

Share of U.S. Electric Generation fromCoal and Gas, 1990-2009

Source: Worldwatch Insitute, EIA

0%

10%

20%

30%

40%

50%

60%

1990 1995 2000 2005

Coal

Natural Gas

Page 13: Transformative Technology Impacting Traditional Energy Systems

Designing Smarter, Flexible & Efficient Solutions

GE FlexEfficiency* 50 Combined Cycle Turbine

Page 14: Transformative Technology Impacting Traditional Energy Systems

Natural Gas is the Least Cost Option for New Power Generation

Source: EIA Annual Energy Outlook 2009, EnCana

Page 15: Transformative Technology Impacting Traditional Energy Systems

Comparative Efficiency By Sector

Source: https://EED.LLNL.GOV/FLOW/00FLOW.PHP

Page 16: Transformative Technology Impacting Traditional Energy Systems

Efficiency Must Start At The Point Of Conversion

Source: EIA, 2007; GE Energy, 2009

Page 17: Transformative Technology Impacting Traditional Energy Systems

An Optimal Energy System Lowers Emissions

At minimum a 60% reduction in CO2

intensity, not even accounting for other

potential efficiencies!

Source: American Clean Skies Foundation; EIA

Page 18: Transformative Technology Impacting Traditional Energy Systems

New Supplies Are Fueling New Demands

Page 19: Transformative Technology Impacting Traditional Energy Systems

The Resurgence Of US Oil?

Source: EIA, 2011

Page 20: Transformative Technology Impacting Traditional Energy Systems

The Catalyst: Unconventional Gas Technology

Source: EIA, 2011

Page 21: Transformative Technology Impacting Traditional Energy Systems

Reversing The Trend

Source: EIA, 2011

Page 22: Transformative Technology Impacting Traditional Energy Systems

Exponential Growth Of The U.S. Wind Industry

Source: EIA 2009

Page 23: Transformative Technology Impacting Traditional Energy Systems

In CO & Elsewhere The Wind Blows Most Intensely At Night

0

1,000

2,000

3,000

4,000

5,000

6,000

290

300

310

320

330

340

350

360

370

380

390

0 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23

Source: Bentek; Wind data - NREL WWIS 2006, PSCO load 2008 FERC 714

Win

d G

en

era

tio

n (

MW

s)A

verage

PSC

O Lo

ad (M

WS)

Wind Blows Strongest Between 9:00 pm & 5:00 am, When Demand Is Weakest

Page 24: Transformative Technology Impacting Traditional Energy Systems

Making The System Smarter: Smart Everything

Source: The Smart Grid: An Introduction, DOE 2008

Page 25: Transformative Technology Impacting Traditional Energy Systems

Transformative Technologies

Hydrogen Economy (Emission Free)

Nuclear Fusion (No Waste)

Mobile Fuel Cells (Reusable)

Advanced Generation Biofuels (Renewable)

Utilizing CO2 For Fuels (CO2 Capture)

Page 26: Transformative Technology Impacting Traditional Energy Systems

“You miss 100% of the shots you don’t take.”

Wayne [email protected]