Pathways to Cleaner Energy: Hydrocarbons, Hydrogen

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Pathways to Cleaner EnergyHydrocarbons,
Hydrogen Renewables

• Eve S. Sprunt
• 2006 SPE President
• Senior Technical Advisor
• Chevron Technology Ventures LLC

June 2005
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Everything leaves a footprint
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The Global Oil Resource Base
There is a very large hydrocarbon resource base
. . .the long-term issues are development costs,
product costs, and environmental impacts.
Produced
Proved Reserves
Undiscovered
Extra Heavy Bitumen
EOR
Shale Oil
Years Supply at 2004 Production
0
1
2
3
4
5
6
7
8
9
10
Trillion Barrels Recoverable
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Oil Sells Itself
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Sustainability

• Environmental concerns
• Short term -- air quality
• Long term -- climate change issues
• Majority of energy needs include
• Transportation
• Electricity generation

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Transportation

• 68 of US oil usage is for transportation
• 42 is for light-duty vehicles
• US cars get an average of about 20 miles/gallon
  (8.5 km/liter)
• According to the API it now takes about 33 cars
  to generate the same amount of emissions produced
  by one 1970s car

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Hydrogen as a Natural Extension of the Core
Energy Business
Hydrogen infrastructure connects to the core
business
Explore
Develop
Produce
Commodity economics
Ship
Refine
Blend
Store
Pipe
Distribute
Margin economics
Market
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The Hydrogen Option Diverse Feedstocks
Hydrogen
Electrolyzer
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Hydrogens Potential Light-vehicle CO2
Emissions
From processes to produce fuel
From combustion of fuel
Lb CO2 / 100 Miles
120
Conventional ICEs
100
Hybrid H2 FCVs
80
Hybrid ICEs
60
40
20
0
NG reforming
Grid electrolysis
H2
H2
Gasoline
Diesel
CNG
Gasoline
Diesel
Renewable electrolysis
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Fuel Cost Comparison for H2 Its Competitors
Assumes 1) FCVs have 50 and H2 ICEs 10-20
better fuel economy than advanced gasoline or
hybrid vehicles, and 2) all fuels (gasoline or
H2) are taxed on an equivalent BTU/mile basis.
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Fuel Cell Costs and Applications
10,000-60,000per Vehicle
1,000-3,000per Vehicle
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Hydrogen Fueling Station Components

The Chevron Hydrogen energy station at the
Hyundai-Kia America Technical Center in Chino,
Calif., uses autothermal reforming to convert
natural gas into hydrogen (reacted catalytically
at high temperature with oxygen and steam to
produce hydrogen). The hydrogen is then
compressed, purified, stored and dispensed into
fuel cell vehicles.
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Hydrogen Fueling Station
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Molecular Engineering and Advanced Fuels
Gas-To-Liquids (GTL)
Potentially connects major global gas reserves to
markets for synthetic super-clean fuels
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Future of Gasoline and Diesel Vehicles

• Internal combustion engines (ICEs) are
  becoming extremely clean
• Hybridization and ICE advances have
  significantly improved fuel economy and reduced
  emissions
• Gasoline and diesel fuel improvements are
  helping to reduce vehicle emissions for example
  GTL fuels
• Gasoline and diesel vehicles continue to become
  more reliable, safer, quieter, more responsive,
  and more comfortable

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Hydrogen Compared with Gasoline and Diesel

• Energy Companies will provide whatever fuels
  customers want -- and hydrogen will need to
  compete in the marketplace with other
  alternatives.
• Some implications for hydrogen
• Value and benefits need to be clear for customer
  acceptance
• Present technologies like internal combustion
  engines and hybrids will continue to improve
• Hydrogen and fuel cells can potentially provide
  added benefits, but cost and other hurdles need
  to be overcome for wide customer use
• Options using existing fuel resources more
  efficiently will continue to play a key role in
  the future

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The Hydrogen Option a Complex Pathway

• Critical mass
• Technology readiness
• Codes Standards
• Costs and returns
• Continuity

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Energy Transitions

• Energy demand continues to grow
• Transitions reflect varying national and regional
  drivers
• Transition to natural gas is under way
• Energy infrastructures and vehicle fleets take
  decades to change
• New fuels and vehicles coexist with older ones

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Pathways to Cleaner Energy
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The Issue Is Global
A BTU by any other color (or where it
comes from) is still a BTU. The Global
Economy needs every BTU it can get.
The environment does not recognize
political boundaries.
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Energy Challenges Bring Opportunities

• Energy industry needs creative technical people
  to solve energy demands
• Bright future for those entering the industry
• - Opportunity to make an impact, get
  responsibility fast
• - Good compensation
• - Exciting, high tech jobs

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SPE Helps Your Transition into Industry

• SPE provides unmatched career development
  opportunities for young professionals
• Enhance your technical competence
• Develop your personal and professional skills
• Put your career on the fast track

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Tangible Member Benefits

• Journal of Petroleum Technology
• Low-cost technical papers, books, journals
• Online resources
• Discounts to conferences, forums and workshops
• Distinguished Lecturer program
• Programs for young professionals

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Online Resources

• eLibrary
• TIGs
• Online communities
• Distance Learning

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Typical Events Schedule

• 20 technical conferences worldwide
• 40 Applied Technology Workshops
• 10 Forum Series events
• Collaboration with other industry organizations

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Intangible Member Benefits

• Leadership opportunities
• Networking
• Soft skills experience
• Recognition

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Young Professionals Programs

• The Way Ahead magazine
• Section emerging leaders groups
• Professional Network on SPE.org
• Young professionals workshops

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Keys to SPEs Success

• Knowledge on demand
• Diverse membership
• Member-driven
• Career development beyond your job
• Neutral, non-competitive environment