Energy, Environment, and Industrial Development Michael B. McElroy Frederick H. Abernathy Lecture 18 April 18, 2005
© Science A 52 FHA + MBM 2 Petroleum. The word comes from Latin words. Petra-rock and oleum – oil Crude oil is a thick, brown or greenish flammable liquid Consists of a complex mix of various hydrocarbons, largely in the alkane series. Can vary greatly in appearance, composition and purity. Oil also contains sulfur. “Sweet” oil refers to oil with low sulfur content. “Sour” oil is high in sulfur
© Science A 52 FHA + MBM 3 The four lightest alkanes are CH 4 (methane), C 2 H 6 (ethane), C 3 H 8 (propane), and C 4 H 10 (butane) These are gases. Boiling points: CH 4 ( o C), C 2 H 6 (-88.6 o C), C 3 H 8 (-42 o C), and C 4 H 10 (-0.5 o C) Chains in the C 5-7 range are light, easily vaporized, clear naphas. Chains from C 6 H 14 through C 12 H 26 are blended to make gasoline Kerosene is composed of chains in the C range Diesel fuel and heating oils are in the range of C 10-20
© Science A 52 FHA + MBM 4 Boiling points for light petrol used as an automobile fuel are in range o C Heavy petrol, also used as auto fuel, boils between o C Light kerosene boils o C Heavy kerosene, used as jet engine fuel, boils o C Diesel boils o C Engine oil, used for lubrication, boils > 300 o C Heavies compounds used to make tar, asphalt and residual fuel
© Science A 52 FHA + MBM 5 The Oil Producing Countries (2003) Saudi Arabia (OPEC) United States Russia Iran (OPEC) Mexico China Norway Canada United Arab Emirates (OPEC) Venezuela (OPEC) UK Kuwait (OPEC) Nigeria (OPEC)
© Science A 52 FHA + MBM 6 Major Exporters Saudi Arabia (OPEC) Russia Iran (OPEC) U.A.E. (OPEC) Venezuela (OPEC) Kuwait (OPEC) Nigeria (OPEC) Mexico Algeria (OPEC) Libya (OPEC)
© Science A 52 FHA + MBM 7 Countries with largest reserves Saudi Arabia (OPEC) Iraq U.A.E. (OPEC) Iran (OPEC) Russia
© Science A 52 FHA + MBM 8 Oil is formed from decay of prehistoric marine plants and animals Buried under thick sedimentary layers Heat and pressure turns it into a waxy material known as kerogen and then into liquid and gaseous forms These migrate through rock layers until they are eventually trapped in porous rock reservoir – oil field Liquid brought to surface by drilling and pumping
© Science A 52 FHA + MBM 9 Economics of Oil Production In early days, energy equivalent of 1 barrel oil was used to recover 50 barrels Today 1-5 barrels recovered for every barrel expanded Costs approximately $1 to pump a barrel of oil out of the ground in Saudi Arabia. Price delivered to the refinery in the U.S. ~$50
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© Science A 52 FHA + MBM 11 Source: Oil prices from in 1999 dollars
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© Science A 52 FHA + MBM 13 Current global oil production is about 25 billion barrels per year Value $1.25 trillion In a recent year, new discoveries amounted to only 8 billion barrels International Energy Agency (IEA) projected annual demand to grow to more than 30 billion barrels per year No surplus capacity? Are rising prices inevitable?
© Science A 52 FHA + MBM 14 Expensive alternatives to today’s oil include the Athabasca oil sands in U.W. Canada and the Venezuelan Orinoco tar sands Estimates suggest these reservoirs may contain as much as two thirds of world’s total oil Significant energy required to liberate soil from tar sands Implications for CO 2
© Science A 52 FHA + MBM 15 History of Oil Use Oil seeps were exploited in Mesopotamia as far back as 3000 BC Bitumen was traded extensively in the ancient Middle East Greek fire: a mixture of petroleum and lime. Caught fire when moisture introduced. First oil wells drilled in China in 4 th century; bamboo pipelines from oil wells to salt springs in 10 th century Oil interest received in Galicia and Romania in early 1800’s Kerosene used to light lamps by 1850 European crude production estimated at 36,000 barrels in 1859, mainly from Galicia and Romania
© Science A 52 FHA + MBM 16 History of Oil Use George Bissell’s vision: to drill for oil and use it as an illuminant. Professor Silliman’s contribution The Pennsylvania Rock Oil Company “Colonel” Drake drills first well at Titusville, 1859
© Science A 52 FHA + MBM 17 Canadian Dr. Abraham Gesner coined the word kerosene (wax oil). Developed a process for extracting oil from asphalt and refining it to make illuminating oil. Applied for US patent 1854 Built plant in New York City producing 5000 gallons a day by Many companies in game. Kerosene from coal (coal oil) Drake strikes oil in Titusville, August 27, 1859 First flowing well struck April 1861 – 3000 barrels per day 3 million barrels produced in Price drops to 10 cents a barrel
© Science A 52 FHA + MBM 18 US exports oil to Europe Price rises to $13.75 a barrel at end of Civil War John D. Rockefeller buys out partner Maurice Clark 1865 Standard Oil Company formed January 10, Rockefeller retain one quarter of stock Royal Dutch discovers oil in Sumatra, 1885 Henry Ford builds first car Oil in Oklahoma 1905 First gas station, St. Louis, 1907 Oil in Persia, 1908 Standard of California wins concession in Saudi Arabia, 1933
© Science A 52 FHA + MBM 19 Arab oil embargo, Price rises from $2.90 $ Alaskan pipeline approved Hostages taken in Iran, 1979 Price rises $13 $34 Exxon Valdez accident, 1989