Lecture 3: Fossil Fuels

1
Lecture 3 Fossil Fuels

• Introduction
• Review Fossil Fuels from textbook
• History of Fossil Fuel Usage in the US
• Dominance of Crude Oil
• Fossil Fuel Types
• Uses of Fossil Fuels
• Electricity
• Primary and Secondary energy sources
• Formation of Fossil Fuels
• Crude Oil Extraction
• OPEC
• Energy Crises of the 1970s
• Current Energy Crisis?
• Hubbert Curves
• What can be done?
• Supply-side policies
• Demand-side policies
• Readings-substitute energy debate

Note You are only responsible for the material
that I go over in the PowerPoint
presentation. You are not responsible for
sections of the textbook that I do not cover.
2
Fossil Fuels Introduction

• Energy is one of the most important current
  issues. Just think about how many times energy
  is mentioned or discussed during the day, whether
  among your peers in the staff room or on the
  national news. Energy reaches every aspect of
  our lives, including politics, economics,
  recreation, travel, daily routines, purchases,
  transportation, etc.
• The overall goal of this lecture is to review
  fossil fuels (from the textbook) and to discuss
  several key energy-related Geosciences topics.
  At the end of this presentation, I am going to
  request that you fill out a survey (optional) on
  fossil fuel usage. This survey will be used to
  show fuel trends among the Environmental
  Geosciences student body.

3
Fossil Fuels (from textbook)

• The first item on the agenda is to acquaint
  ourselves with the basics of fossil fuels.
  Material for this part of the lecture is derived
  from your textbook, Ch 12, pp. 306- 327.

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History of Fossil Fuels in the USFigure 12-5

• Figure 12-5 shows the amount of energy
  consumption in the US by year. From this graph
  there are several items to note
• Overall energy consumption has increased
• The top three sources oil, coal and natural
  gas.
• Coal was the dominant energy source throughout
  most of the early 1900s
• Coal represented 88 of energy source in 1920.
  This was due to furnaces and steam engines, among
  other things.

Continued next slide
5
History of Fossil Fuels (continued)

• Other important items to note from figure 12-5
• Examine the crude oil trend and observe how
  dramatically the amount of oil usage has
  skyrocketed.
• Crude oil became the dominant energy source in
  1951 (chemical engineers discovered how to use to
  make plastics, petrochemicals, gasoline, etc.)
• The top three energy sources (crude oil, natural
  gas, and coal) comprise 85 of total US energy
  consumption and 87 of the worlds consumption.

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World Energy Type Usage Today (Figure 12 -4)

• US trends seen on the previous slide mirror
  global trends
• Figure 12-4 shows a pie chart of energy usage
  worldwide

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Take home message from the last few slides

• Most of the worlds energy is derived from Fossil
  Fuels!!!
• Why is this such a big deal environmentally?
• Fossil fuels have to be extracted from the Earth
  or the Ocean often there are environmental
  consequences from extracting fossil fuels (e.g.
  strip mining, oil spills, etc.)
• Fossil fuels are pollutants, especially crude
  oil. Major oil leaks, such as in Prince William
  Sound, the Persian Gulf, and just recently the
  Mediterranean coast of Lebanon, to name a few
  create an environmental/economic/political
  nightmare.
• Burning fossil fuels releases greenhouse gases
  (CO2, Methane, etc.), which have been associated
  with global climate change (a topic that we will
  discuss in later lectures).
• Burning fossil fuels releases several pollutants
• Coal burning releases sulfates in the air that
  produce acid rain
• Burning of gasoline releases CO2,volatile organic
  compounds, nitric oxides, and ozone
• Also given the fact that much of our economy, our
  current foreign political crises, our whole
  society and culture are tied in some way to
  fossil fuels it is worth devoting a lecture to
  this subject.

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What are all These Fossil Fuels Used for Anyway?

• Fossil Fuels are used in millions of ways. Just
  to list a few examples

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Electricity

• One of the major uses of fossil fuels is to
  generate electricity
• More than 33 of all fossil fuels in US are used
  for electricity.
• How can you get electricity from a fossil fuel?
  Answer, through the use of a generator and/or
  turbogenerator

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Generator (fig. 12-6)

• Generator coil of wire that rotates in a
  magnetic field or that remains stationary while a
  magnetic field is rotated around it. The process
  converts mechanical energy into electrical
  energy. Mechanical energy is provided by the
  burning of fossil fuels.
• Some energy is lost in transmitting the
  electricity over wires from the generating plants
  to the end users. In the end it takes three
  units of primary energy to create one unit of
  electrical power that actually is put to use.
  (pg. 308).

Generator
Mechanical Energy
Electrical Energy
Conservation of Energy Energy can neither be
created nor destroyed but can be converted from
one form to another.
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Turbogenerator (fig. 12-7a)

• The burning of coal, for example, can be used to
  boil water and generate steam. The force of the
  steam turns the turbine (mechanical) to generate
  an electrical current.

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Primary and Secondary Energy Sources

• The previous slide illustrates an energy
  conversion between mechanical and electrical
  energy. The energy in the fossil fuels is used
  to generate electric power. This represents a
  conversion from a primary energy source to a
  secondary energy source
• Primary source is used to derive the secondary
• The conversion efficiency is far less than 100
  the amount of waste is usually high.

Secondary Source Electricity
Primary Source (Burning Coal)
Heat given off (wasted)
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Pathways From Primary Energy to End Uses in the US

• Figure 12-10 (next slide) shows the conversion
  between primary and secondary energy sources.
  The amount of energy wasted is given on the far
  right of the graph.
• The End Uses can be divided into four
  categories
• Transportation (26.5)
• Industrial (32.5)
• Residential/Commercial (41.0)
• Electrical Power (40.7)
• Pay attention to the pathways and to the amount
  of waste per four categories.

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Pathway from Primary energy to end uses in the US
(Figure 12-10)
82
65
69
67
I calculated the waste by measuring the heights
of the bars with a ruler.
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Transportation

• In addition to Electricity, fossil fuels are used
  for transportation. Your textbook says near 100
  of all cars and truck depend on liquid fuels.
• Crude Oil contains many hydrocarbons used to make
  gasoline. The hydrocarbons burn off at different
  temperatures. So within oil refineries, gasoline
  is distilled from the crude oil.
• The figure to the right is from Conoco-Phillips
  and it gives their explanation for gasoline
  costs. The bulk of the costs comes from the
  purchasing or extraction of crude oil

http//en.wikipedia.org/wiki/Oil_refinery
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How Are Fossil Fuels Formed, Expurgated Version
(fig. 12-11)

• Fossil Fuels are organic-based and are derived
  from vegetation. For example organic molecules
  of plant matter, such as leaf waxes, cell walls,
  chlorophyll are linked to the hydrocarbons found
  in crude oil (http//www.faqs.org/faqs/autos/gasol
  ine-faq/part1/).
• terrestrial swamp vegetation
• or in the ocean, marine phytoplankton accumulate.
• Note the rest of the lecture will be devoted to
  crude oil. Other fossil fuels will be discussed
  in more detail in subsequent lectures.

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Fossil Fuels

• The vegetation was deposited approximately 500
  to 100 million years ago (Silurian, Devonian,
  Mississippian, Pennsylvanian).
• Plants such as Calamites and Lepidodendron were
  abundant in warm, swampy environs of the mid-late
  Paleozoic.
• When these organisms died, they decomposed slowly
  in an anaerobic condition.
• Massive quantities of dead organic matter
  accumulated over millions of years, and layer
  upon layer of materials were deposited
• During the slow decomposition, the solid sludge
  that accumulated at the bottom of the pile became
  crude oil. Gases that evolved and were trapped
  became the natural gasses. In some situations
  where the crude oil was compressed by internal
  heat and pressure, it metamorphosed into coal.
  Coal is mostly leafy material from compressed
  organic matter-mostly swamp vegetation that
  decomposed very slowly (Wright, pg. 313).
• This process is similar to the decomposition
  within your own septic tank.

http//folk.uio.no/ohammer/calamites.jpg
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Analogous to Septic Tank Digestion
Natural Gas
Analogous to crude oil
www.agry.purdue.edu/.../septic/cttpp2/tank.htm
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Fossil Fuel Formation (Fig 12-11)
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Oil Recovery

• Oil is often contained within pore spaces of
  sedimentary rocks.
• Primary recovery (the first extraction of the oil
  from the ground) can remove only 25 of the oil
  in the oilfield
• Additional recovery uses more costly measures to
  extract oil. Up to 50 extraction is possible
  with injecting brine or other substances (CO2).
  Often a well is abandoned when the capital
  investment is more than the profit margin.
  Additionally, secondary extraction may be
  abandoned when drilling new oilfields produces
  more profits. Several US wells were closed
  during the late 1960s and the late1980s because
  it was cheaper to buy foreign oil than it was to
  invest in secondary extraction. Recently, many
  of these oilfields have been reopened.
• MSUs Dept. of Geosciences Dr. Frances L. Lynchs
  research actually focuses on finding
  better/cheaper ways to extract more oil from oil
  wells. His work, which is sponsored by a
  multi-million dollar grant from DOE, will work on
  utilizing bacteria to secrete waste substances
  that plug the pores in the sedimentary rocks.
  Plugging more pore spaces will allow the
  injection of brine or other substances (CO2 now)
  to be more efficient. Dr. Lynchs work
  specifically examines the mineralogy and
  geochemical interactions between the bacteria
  secretions (bug slime) and the minerals.

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Oil Domestic and Foreign

• As you are already aware, oil used in the US
  comes from both domestic and foreign sources.
  Currently the US demand for oil exceeds the
  domestic production and we have a heavy reliance
  on foreign oil.
• Your textbook mentions that today 60 of US oil
  is imported.
• Reliance on foreign oil is a major headache. Oil
  prices after 9/11 and Hurricane Katrina have been
  very volatile. Within the last year, oil prices
  have stabilized at about US 70/barrel (NYMEX).
  Obviously there is much concern over the price of
  oil, and it has been mentioned on the news almost
  everyday this year.
• Oil price is influenced by several items
• World Market (supply/demand)
• Political Strife
• Threats to production (e.g., hurricanes)

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Oil and Politics

• History of Crude Oil

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Oil Production, fig 12-12

• 60 of the oil used in the US is imported.
  Foreign oil on Fig. 12-12 is the difference
  between US production and consumption (pink).
• Note the increasing dependence on oil over time.
• Note the drop in the 1970s. Political turmoil
  in the Middle East is a major contributor to the
  fluctuations in oil price (as we see today even
  still!!).

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http//www.wtrg.com/oil_graphs/oilprice1947.gif
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Organization of Petroleum Exporting Countries
(OPEC)

• OPEC cartel to regulate the production and cost
  of oil.
• Official definition OPECs mission is to
  coordinate unify the petroleum policies of
  Member Countries ensure the stabilization of
  oil prices in order to secure an efficient,
  economic regular supply of petroleum to
  consumers, a steady income to producers a fair
  return on capital to those investing in the
  petroleum industry. (www.opec.org)

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OPECs Oil Reserves (2004)
www.opec.org
78 of known reserves your textbook says 65
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(No Transcript)
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Dated, I know, wheres China?
www.opec.org
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1970s Energy Crises

• OPEC was formed in 1965
• The majority of the countries are Arab.
• In 1967 Jordan, Iraq, and Syria, and Egypt
  invaded Israel. They were defeated by the
  Israeli army (Six-Day War).
• In 1973 Egypt and Syria fought a war with Israel
  (again), the Yom Kippur War. Israel won this
  war too.
• In retaliation against pro-Israeli countries,
  OPEC placed an Oil Embargo (aka Arab Embargo).
• The US having developed a dependency on foreign
  oil was caught off guard. The 1973 Arab Embargo
  had a devastating affect on the US economy and
  prompted the Energy Crisis of the 1970s.

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Energy Crisis of 1970s

• 1974 First time since WWII there was a fuel
  shortage in the US.
• Gas was rationed, long lines at the pump (as many
  of you will remember)
• Speed limits on US Interstates were reduced to 55
  mph (I cant drive 55!)
• I was only 5 yrs old in 1974 so I dont have too
  many memories of the energy crisis. I remember
  public announcements on the TV requesting that
  people set thermostats no higher than 68 F in
  the winter and to wear a sweater.
• The people/government responded in two ways
• 1) increase domestic production. Oil exploration
  occurred in Alaska and in the Gulf of Mexico.
  Formerly closed oil wells were reopened and the
  more costly secondary (and tertiary) recovery
  methods were applied. The US oil industry did
  very well towards the end of the 1970s, early
  1980s Oil business was booming.
• 2) decrease the demand for oil. There was a
  multitude of research into renewable energy
  sources, such as solar, wind, and hydroelectric
  power
• US Government requested that consumers reduce
  fuel consumption
• Auto manufacturers (especially the Japanese
  automobile industry) produced smaller, more
  gas-efficient vehicles.
• Speed limits were put in place.

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Article from two years ago (August 2005).
A majority of the US oil refineries are located
in the Gulf Coast Region.
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Oil and Hurricanes

• Last year (8/28/06) oil prices were
  70.45/barrel. They dropped 2.06/ per barrel
  from the day before because Hurricane Ernesto
  deviating from the Gulf of Mexico, veering to hit
  Florida instead (cnn.com).

Image from NASA
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Oil Glut of the 1980s

• In the mid 1980s foreign oil became readily
  available, and cheap (12 to 40 per barrel). US
  domestic production slowed and the oil industry
  busted aka the Oil Glut. US dependency on
  foreign oil once again became very high.
• Speed limits increased
• Vehicles got big again (SUVs)
• Oil was cheap and demand skyrocketed.
• Those who cannot learn from history are doomed
  to repeat it. (Santayana). Does is seem like we
  are on the verge of another energy crisis?

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US Reliance on Foreign Oil, Fig 12-14

• Since 1980s consumption has been rising (orange
  line), production has been falling (blue line),
  and foreign oil has been increasing (green line)

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Cost of Fossil Fuels
Oil Glut
Figure 12-13 a and 12-13 b, pg 316
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Figure 12-13 b
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Cost of Fossil Fuels
Oil Glut
Figure 12-13 a and 12-13 b, pg 334
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Fall 2006 and 2007 Data

• Oil prices were very high (highest on record) in
  the last year averaging over 70 barrel. Todays
  fuel price (August 27, 2007 at 11 am EST)
  70.50. The cost seems to have stabilized.
• Today our dependency on foreign oil is high, and
  like in 1970s there is unrest in the Middle
  East.

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Gas Prices Sept. 2006 August 2007
http//www.mississippigasprices.com/retail_price_c
hart.aspx
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Gas Price Time Line

• Gas hasnt dropped below 2.00/gallon
• For most metropolitan areas it hasnt dropped
  below 2.25
• Average US Gas Price 1 year ago 2.8242
• Average today (8/27/07) 2.737
• Average last month (July 07) 2.89
• Average last week (August 20-26, 2007) 2.79
• The increase in fuel is affecting other
  commodities like a snowball effect.

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Average Milk Prices (2)
http//www.ams.usda.gov/dyfmos/mib/rtl_milk_prices
.htm
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Milk

• Milk is likely to hit 5/gallon before the end of
  the year (Foxnews.com)
• Higher fuel costs ( droughts and changing world
  market) are strongly associated with the milk
  price increase.
• Got Milk? At 5/gallon, maybe no!

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444f.jpg
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How Much Oil is Left?

• Your textbook discusses the work of Campbell and
  Laherrere, who estimate a worlds proven reserve
  (P50, see page 314 for explanation) to be 850
  billion barrels. This is less than the 1,050 BB
  claimed by oil industry reports (Table 12-2).
• Deffeyes is also cited for his research using the
  Hubberts Peak ( a function based on a Gaussian
  curve) to estimate future oil production

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Hubberts Peak

• From Deffeyes
• Globally oil production will probably reach a
  peak sometime during this decade2000. After
  the peak, the worlds production of crude oil
  will fall, never to rise againIgnoring the
  problem is equivalent to wagering that world oil
  production will continue to increase forever. My
  recommendation is for us to bet that the
  prediction is roughly correct.
• USGS says there are undiscovered reserves
  amounting to 732 BB and 688 BB in oilfields that
  could be unaccounted for. 7BB are estimates at
  ANWR, ca. 4 of daily oil consumption (pg 323)
• The proven reserves (not the unaccounted oil that
  might be found, as mentioned by USGS) will
  supply only 26 years of oil demand.
• If oil supplies dwindle, what will happen to our
  economy, our culture, our way of life?

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What Can Be Done?

• Supply-side Policies increasing domestic
  production
• Public policies to increase domestic supply and
  reduce reliance on foreign oil (pg 324). As an
  example, some of the following are from The
  National Energy Policy Report (2001), as
  mentioned in your textbook
• Open ANWR for oil/gas exploration
• Add more coal-burning power plants
• Extend natural gas pipelines from Alaska
• Demand-side Policies- decreasing domestic
  consumption
• Conservation
• Better energy efficiency
• Better gas mileage vehicles
• Better home/office energy usage
• Developing non-fossil fuel energy sources

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Synopsis of Lecture 3

• Lecture 3 focused on the history, development,
  usage, consumption, and production of fossil
  fuels, particularly crude oil
• Fossil Fuels are derived from organic deposition
  over 100s of millions of years and they can be
  used to make electricity, to make oil, to heat
  our homes, and to be used as petrochemicals
• Crude oil consumption has skyrocketed in the last
  50 years. In more recent decades, the US has
  become more reliant on foreign oil. Foreign oil
  supplies are volatile and changes in oversees
  production have significant consequences on our
  economy.
• In order to curb our appetite for foreign oil it
  is suggested that we develop
• Supply-side policies (increase domestic
  production)
• Demand-side policies (decreases domestic
  consumption)

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Survey

• I have a survey questionnaire that I would like
  for you to fill out. The survey is not required
  for your grade and you are not obligated to
  answer any or all of the questions. My intent is
  to get a consensus of the energy usage and energy
  policy opinions from the students in this class.
  The survey is located in the quiz/test link with
  the name Fossil Fuel Survey. Please fill out
  survey before September 19.