Running on Empty

1
Running on Empty
Cameron Stewart
2
Outline

• Fossil fuels are finite and will eventually
  become depleted.
• If replacements for fossil energies are not found
  the world economy will collapse.
• The development of the new energies will require
  significant financial investment.

3
Fossil Fuels are Vital for Modern Economies

• Electricity
• Transportation
• Communication
• Industry
• Food Supply

4
Fossil Energies

• Liquid Petroleum
• Inexpensive to produce, easy to transport, high
  energy content.
• Unconventional Petroleum (Shale Oil, Tar
  Sands)
• Expensive to produce, requires large land
  footprint, net energy production low.
• Natural Gas
• Inexpensive to produce, transport requires large
  LNG terminals.
• Coal
• Largest single reserve of energy, very polluting.

5
Worldwide Oil Demand Growing

• Demand predicted to grow well into the 21st
  century.

6
China and India Oil Demand Scenario
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Total Oil Production Will Peak
Source Theoildrum.com
8
U.S. Oil Production
Source Theoildrum.com
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Alternative Energies

• Nuclear Power
• Does not release atmospheric pollutants,
  radiological hazards with waste disposal.
• Wind Turbines
• Very clean, requires large land area,
  geographically restricted, intermittent.
• Solar Electricity
• Clean, expensive, geographically restricted,
  intermittent.

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Alternative Fuels

• Biodiesel
• Produced from vegetable oils, price and
  performance competitive with petroleum diesel.
• Alcohol Fuels
• Fermented from plant matter, higher octane rating
  than gasoline, can be produced from many
  different plants.
• Hydrogen Fuel
• Hydrogen is not an energy source, only a carrier.
  Would require redevelopment of energy transport
  infrastructure at great cost.

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Price Competitiveness

• As the Price of fossil energy rises, various
  alternative energies become economically
  competitive.
• Due to the current high price of oil, energy
  technologies that were previously too expensive
  have become marketable.
• This high price situation has driven an energy
  research boom.

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U.S. Government Energy Policies

• Current government policy endorses the use of
  fossil energy by providing subsidies to the oil
  and gas industry.
• Government officials often pay lip service to
  alternative energy without substantial action.
• U.S. Government perpetuates ignorance regarding
  energy supply and costs.
• Serious discourse must occur to educate the the
  public on energy issues.

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Whats Needed

• Serious public discourse about fossil energy
  supply and depletion.
• Energy conservation
• Energy policy that is conducive to the
  development of alternative fuels.
• Government support for research and development.
• An increase in the price of fossil energy to make
  alternatives more price competitive.