Chapter 12: Energy FROM FOSSIL FUELS

1. ∙ Introduction- ANWR • Section 12. 1- Energy Sources • and Uses • ∙ Section 12. 2- Exploiting Crude • Oil • ∙ Section 12. 3- Other Fossil • Fuels • ∙ Section 12. 4- Fossil Fuels and • Energy Security Chapter 12: Energy FROM FOSSIL FUELS

2. ANWR • Arctic National Wildlife Refuge: 1960 Dwight Eisenhower. • Unexploited oil field below the 1002 area. • Best estimate=7 billion barrels of oil. • Peak 700,000 barrels per day. Same amount US imports from Iraq before US Iraqi war of 2003. • Estimated 4 trillion tons of natural gas. • Home to caribou, porcupine and musk oxen herds.

3. ANWR • Republicans/Inupiat Eskimos- wants ANWR to be opened to oil exploration. • ANWR survived many congressional battles until 2005, but rising oil prices have made this more challenging. • Bush- developing oil in ANWR would: • Lessen US dependence on foreign oil. • Maintain thousands of jobs • Profit for the industry.

4. ANWR • Democrats/numerous environmental groups/Gwich’in Indians- Do not want oil exploration. • Pristine wilderness that roads, etc. would destroy. • Loss of habitat, breeding grounds, subsistence way of life. • Oil spills (which seem to happen on a regular basis). • Air pollution. • Rising green house gases/global climate change.

5. Chapter 12: Section 1 Energy Sources and Uses

6. H Harnessing Energy: • Throughout human history, the advance of technological civilization has been tied to the development of energy sources. • The breakthrough invention? The STEAM ENGINE • At first, the major source of fuel was firewood. • As the demands for energy increased and firewood became scarce, coal was used as a substitute. • In addition to being used to fuel steam engines, coal was also used in heating, cooking, and industrial processes of the Industrial Revolution. • 1920’s coal provided 80% of US energy. • Drawbacks of the burning of these two sources was very harmful. • Smoke, fumes, air pollution.

7. Oil Rules: • In the late 1800’s, the simultaneous development of three technologies- the internal combustion engine, oil-well drilling, and the refinement of crude oil into gasoline and other fuels- provided alternatives to steam power. • Benefits: convenience, air quality improved. • Drawbacks: 1960’s: cars take over and pollution from gasoline engines become the problem. • By 1951, crude oil became the dominant energy source for the nation • Since then, it has become the top fuel throughout the world. • Crude oil provides about 39% of total global energy production.

8. Gas, Naturally: • Natural gas is the 3rd primary fossil fuel globally. • Natural gas burns much more cleaner than coal or oil; thus, in terms of pollution, is the more desirable fuel. • Three fossil fuels- crude oil, coal, and natural gas- provide 85% of U.S. energy consumption and 87% of the world’s consumption. • The remaining percentage are nuclear power, hydropower, and renewable resources. • Used to create electrical power!

9. Fluctuations In Demand: • Where does your electricity come from? • Most utility companies are linked together in what are called pools. The utility is responsible for balancing electricity supply and demand, regardless of daily social or seasonal fluctuations. • As demand increases, utility companies can draw on additional plants that can be turned on/off. • Base load vs. peak-load power sources. • Primary energy: Coal, waterpower, etc. • 3 units of primary power to generate 1 unit of electrical energy. • Electrical energy is a clean energy at the point of its use, but the creation of it still causes pollution in the burning of fossil fuels that run the generators that create the energy.

10. Matching Sources to Uses: • Primary energy use is commonly divided into four categories: • (1) Transportation • (2) Industrial Processes • (3) Commercial and Residential Uses • *Such as heating, cooling, lighting, and appliances. • (4) The Generation of Electrical Uses • *goes into categories 2&3 as secondary energy use. • Oil and natural gas are the most versatile primary energy sources.

11. Lesson 12.2 Exploiting Crude Oil

12. How Fossil Fuels Are Formed: • The reason crude oil, coal, and • natural gas are called fossil fuels is • that all three are derived from the • remains of living organisms. • Over millions of years, the remnants of the organisms are gradually buried under layers of sediment and converted by pressure and heat to coal, crude oil, and natural gas. • It takes 1,000 years to accumulate the amount of organic matter that world consumes daily!

13. The Oil Crisis of the 1970’s • A group of dominantly Arab countries known as the Organization of Petroleum Exporting Countries (OPEC) formed a cartel & agreed to restrain production in order to get higher prices. • With the Arab-Israeli War happening in 1973, OPEC initiated an embargo of oil sales to countries that gave military and economic support to Israel. Because the limitation of oil production all through the 1970’s, OPEC was able to force prices higher and higher.

14. U.S. Response to OPEC • In response to the higher prices, the United States made new changes to increase the domestic production of crude oil: • Exploratory drilling was stepped up • The Alaska pipeline was constructed. • Fields that were closed down as uneconomical were reopened.

15. U.S. Response to OPEC continued… • To decrease consumption of crude oil: • Standards were set for automobile fuel efficiency. • Other conservation goals were promoted for such things as insulation in buildings, and efficiency of appliances. • The development of alternative energy sources was begun. The government supported research-and-development efforts and gave tax breaks to people for installing new alternative energy systems. • To protect against the OPEC boycott: • A strategic oil reserve was created. As of 2006, the United States had “stockpiled” 688 million barrels of oil in underground caverns in Louisiana. • ∙ As we entered the 1980’s, the United States still depended on oil from foreign countries, but the consumption began to decline and the Alaska pipeline production of oil was holding its own.

16. Problems of Growing U.S. Dependency on Foreign Oil: • As the U.S. dependency on foreign oil grows again, we • are faced with problems on three levels: • (1) The costs of purchasing oil • (2) The risk of supply disruptions due to political instability in the Middle East • (3) Ultimate resource limitations in any case • ∙ Costs of Purchase- The cost for crude oil represents about 30% of the United States current balance-of-payment deficit. This is important because it tells us the price we pay at the pump and if it is basically the same whether oil is produced here or abroad. • ∙ Supply Disruptions- Politically unstable situations such as the Persian Gulf • ∙ Resource Limitations- U.S. crude-oil production is decreasing because of diminishing domestic reserves. We have an increasing percentage of our needs that must be met by importing oil.

17. The True Cost of Oil • Beyond the 30% of our current balance-of-payment deficit, there are other costs as well: • Ecological (oil spills and other forms of pollution) • Military costs to maintain access.

18. Hubbert’s Peak ∙ Two oil geologists, Colin Campbell and Jean Laherrère, calculated a Hubbert curve from data in which they estimated oil in reserves at 850 BC. This curve was used to show the peak of oil production within the current decade. (pg. 320 Figure 12-16) ∙For the United States to become more independ-ent of crude oil, they have three possibilities: (1) Increasing the fuel efficiency of our transportation systems (2) Using other fossil fuels for vehicle resources (3) Developing alternatives

19. Lesson 12.3 Other Fossil Fuels

20. Natural Gas: • In the United States, natural gas has been rising as a fossil fuel of choice. • The expected long-term recovery in the US is about 50 years. Worldwide: even more plentiful. • Natural gas can be used to meet the fuel needs for transportation. With the installation of a tank for compressed gas and some modifications of the engine fuel-intake system, a car is able to run perfectly fine on natural gas, although trunk problem is a problem. • Natural gas is a clean-burning fuel, producing carbon dioxide and water but virtually no hydrocarbons or sulfur oxides.

21. Fischer-Tropsch: Pros Cons • Natural gas can be turned into a “synthetic oil”. • Promise to make the natural gas supply accessible. • May extend the life of oil supplies. • Approx. 10% more expensive than oil. • Search for a catalyst to convert natural gas to methanol. • 3600 mile long pipelline • Enviro costs.

22. Other Fossil Fuels • Coal • In the United States, 50% of electricity comes from coal fired power plants. • Coal can be obtained by surface (strip) mining or underground mining. • Strip mining destroys the ecology of an area. • Underground mining, at least 50% of the coal must be left in place to support the roof of the mine. • Coal fires around the world produce almost as much carbon dioxide as do all the cars and trucks in the United States, contributing to the world’s greenhouse gas emissions. Oil Shales and Oil Sands Oil shale- a fine sedimentary rock containing a mixture of solid, waxlike hydrocarbon called kerogen. When a shale is heated to about 1,000 ºF the kerogen releases hydrocarbon vapors that can be recondensed to form a black substance similar to crude oil. Oil Sands- Sedimentary material containing bitumen, a tarlike hydrocarbon. When heated, the bitumen can be “melted out” and be refined just like crude oil.

23. Lesson 12.4 Energy Security and Policy

24. Security Threats: Oil Dependence- As the United States depends on oil, their imports cost 300 billion dollars in 2006, representing 30% of our balance-of-pay deficit and 66% of our oil consumption. Consequently, we are being thrown onto an economic roller coaster by relying on oil from the OPEC cartel and the volatile Persian Gulf states. Terrorism-Nuclear power plants, hydropower dams, oil & gas pipelines, refineries, tankers, and the electrical grid are all possible sites for an act of terrorism. Our continued involvement in the Middle East has done so much to inflame the anger and frustration that can provide sufficient information on the terrorist attacks against the U.S. *For example, the Trans-Alaska pipeline was closed down three days after a hunter shot a hole in it.

25. Energy Policies: • Cheney report recommended ways to meet rising demands and the new Energy Policy Act acted on many, but not always favorably. • Both supply-side and demand-side policies options are available; • Supply-Side Policies • (1) Exploring and developing domestic sources of oil • (2) Increasing use of the vast coal reserves for energy • (3) Continuing subsidies to oil and nuclear industries • (4) Removing environmental and legal obstacles to energy development • (5) Providing access to remote sources of natural gas • Demand-Side Policies • (1) Increasing the mileage standards for motor vehicles • (2) Increasing the energy efficiency of appliances and buildings • (3) Encouraging industries to use combined heat and power (CHP) technologies • (4) Promoting greater use of non-fossil-fuel sources of energy (nuclear & renewable energy)