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Hint: it’s all about geology and cars and heating and...
Two different estimates
Source: US Dept of Energy
Who will be using it?
Source: US Dept of Energy
Industrialized countries use two-thirds of total now, soon will be about equal
Primary uses are: transportation
and electricity
Petroleum products are useful because they’re portable
which is easily distributed between fixed points for other uses
Both these are growing fields !
EE/FSU=Eastern Europe &Former Soviet Union
We like our cars...and so doeseveryoneelse
NB: Europe & Industrial Asia aren’t projected to grow much; compare w/ other places
Source: US Dept of Energy
Electricity demands are projected to grow over the next 20 years
Note the different geographic distributionSource: US Dept of Energy
Why does energy consumptionincrease?
Note the different geographic distributionSource: US Dept of Energy
1) Popul’n2) Std of Living
Various economic scenarios:
The better off people are, the more energy we’re gonna need.
Source: US Dept of Energy
All right, so there’s a real need. What are our energy sources?
Yep, it’s oil, folks
Oil + Natl Gas= ~ 3 X Coal
others negligible
Source: US Dept of Energy
NB: current usage
Oil prices are interesting...
Source: US Dept of Energy
Prices havevaried by afactor of 6 over the last30 years.
(So why thesmooth projection? )
How good is it for the year 2002?
Didja see any evidence of positive feedback in the oil market on the last slide?
The OPEC oil ministers have declared that they wish to keep the price low enough that further exploration will not be economically viable (Negative feedback)
When Gulf Oil opened the first gas station back in 1913, the price was $0.27/gallon.
That was about 3 hours work at the prevailing average wage.
Scaling into today’s regime, we’d be talking about $25 – 30 for a gallon of gas.
THE REAL COST OF THE REAL COST OF PETROLEUM MOTOR PETROLEUM MOTOR
FUELFUEL
Environmental DamageAgricultural LossesIncreased Health Care
ExpensesHigher Insurance Premiums
U.S. Military Expenses for U.S. Military Expenses for Protecting Middle East Oil Protecting Middle East Oil SuppliesSupplies
0
10
20
30
40
50
60
70
$45/Barrel
$15/Barrel
$9/Barrel
Price of a Barrel of OilPrice of a Barrel of Oil
Actual Cost of Oil is at Least $69 Per Barrel
One man’s opinion on:
Source: Robert Q. Riley Consulting
Back in 1949 a geophysicist named M. King Hubbert,working for Shell, got interested in the total oil supply.Using his geologic estimates for future discoveries,he predicted production levels amazingly accurately:
Hubbert curves showproductionrates in b/yr
This shows 2 of Hubbert’s early projections; notethe peak years
50 years experience makes Hubbert look pretty good overall
This chart addsthe effects of “unconventional” production
--extends our supply a little, butdoesn’t change much
Source: CJ Campbell, Oil & Gas Journal, March, 2000
Note that production curves tail off while need curves just keep increasing!
Basic problem is that discoveryrate is now less than consumption
Discovery peakwas in the ’70’sleading to theproduction peaknow
We now consume 4 times as much as we discover! Source: CJ Campbell, House of
Commons testimony
Oil production lags discovery
Source: CJ Campbell, House of Commons testimony
US oil discovery & production as an example:
Discovery
Prod’n
Source: CJ Campbell, House of Commons testimony
The US was the first country to have an oil industry
The discovery peak was 1930’sProduction peak was 1970’s
For the North Sea and Alaskan fields, it’s only 28 years between discovery & production peaks
This in spite of much more difficult production & distribution conditions --better technology gained us speed
Global discovery peak was in the 1970’s
25 - 30 years of well-funded effort by some very smart people prospecting around the world hasn’t increased the discovery rate
The slowing Discovery Rate:
Includes oil“discovered”in known reservoirs (“backdated”)
-a majorsource of “new” oil for the past 30 years!
Source: CJ Campbell, House of Commons testimony
Fourth Quarter 2001 API Drilling Statistics
WASHINGTON, January 16 — Estimated completions of U.S. oil wells, natural gas wells and dry holes decreased by 8 percent in the fourth quarter of 2001 compared with the same period of 2000, the American Petroleum Institute reported today. Oil well completions dropped 23 percent, and natural gas completions dropped 3 percent for the quarter compared to the same period of 2000.
According to the 2001 Quarterly Well Completion Report: Fourth Quarter, an estimated 8,309 oil wells, natural gas wells and dry holes were completed in the fourth quarter. In the fourth quarter of 2000, there were an estimated 9,038 completions. For the fourth quarter of 2001, gas completions were down 3 percent to 5,365; oil well completions decreased 23 percent to 1,931, and dry holes rose 3 percent to 1,013.
Total exploratory completions were up 26 percent in the fourth quarter and development completions were down 11 percent compared to the same quarter last year.
API also reported a 1 percent increase in total footage drilled in the fourth quarter for a total of 41,534,000 feet.
From the API:
Source: CJ Campbell, House of Commons testimony
Contrast this with the popular image:
“This notionis believedby many Politicians.” --Colin Campbell
Leading to some laughable consumer decisions
In Europe, where gasoline prices have been over $5 per gallon for many years,
…they’ve taken to using cars that you put on like a sweater
The Smart Car serves quite well for most urban purposes
…or even a T-shirt…
(This one’s in Italy & must get a jillion miles per gallon.)
We can do OK in this country, too
Here’s an experimental car built by some students at Berkeley that gets over 1,000 miles per gallon
Not even trying for production, of course…
Production is another matter:
Some serious players think that we could do a lot better than we are:
The 1985 Chevy Blazer got 20 mpg, the 2002 model gets 18
Fleet averages fell from 26 to 24 in the same interval…
Here’s a potentially useful technology:
“Hybrid” cars are an attempt to maximize the relative advantages of gasoline and electrical power systems
Honda and Toyota both have production versions of hybrid cars available in the U.S. now. The price is $20,000, and the gas mileages are 56 & 48 mpg, respectively.
Hubbert curves for all petroleum-like resources that we have fashioned to date change the picture a little
But notmuch
Source: CJ Campbell, House of Commons testimony
The underlying cause is that petroleumoccurrence is a pretty rare thing
Must havethe right:
Initial cond’sHistory Geologic Environm’t
Source: CJ Campbell, House of Commons testimony
So, we are faced with a scenario something like this:
and it’s interesting to note just where the oil reserves are …
-700
-600
-500
-400
-300
-200
-100
0
100
200
WORLD PETROLEUM RESERVES
Billion Barrels
Total Remaining
Total Recovered
UnitedStates
Canada
Mexico,Central America,& South America
WesternEurope
Mid-East
EasternEurope,FormerU.S.S.R.,China
OtherEasternHemisphere
Total Oil Recovered Since 1859 & Total Remaining as of 1990
Protecting Against Limited Supplies, Protecting Against Limited Supplies, Future Monopolies, and Price IncreasesFuture Monopolies, and Price Increases
So it looks like, in YOUR lifetime you will be:
• Paying a LOT more for gasoline • Very concerned with Middle East politics• Trying new energy technologies• Looking for alternate sources of energy
with regard to alternate sources,consider these data on energy available from non-renewable sources:
Source Total Energy (J)
Uranium 1.6 E 23 Coal 1.4 E 23 Syncrude 1.4 E 22 (tar sands, shale oil) Crude oil 1.0 E 22 Nat’l Gas 8.0 E 21
and from renewable ones:
Source Energy (J/yr)
Solar 4.0 E 24 Biomass ~2 E 21 Hydroelectric 9.2 E 19 Geothermal 8.0 E 19 Wind energy unknown
Afterword: Comparing energy prices for different fuels:
Fuel $/MbtuOil 3.49Nat’l Gas 4.29Coal 1.19
How about wood, ethanol, wind, geothermal, solar, tidal, …?