problems of U.S. dependency on foreign oil cost of purchase Persian Gulf unrest before 2003 Iraq war, cost of presence in region was $50 billion per year cost averages to $61 per barrel (added to the 2002 market price of $30 per barrel = actual cost of $91 per barrel) with costs of war (reconstruction, cleanup, etc.), real price of Persian Gulf oil is about $170 per barrel

resource limitations U.S. crude oil production is decreasing on basis of “Easter-egg hypothesis,” there is little hope for new major finds in the U.S. (last major find was Alaskan field in 1968) most new finds are the result of innovative computer mapping and imaging which pick up on small, unused pockets of existing fields

How much oil will be available for future generations? about 960 billion barrels of oil have already been used (almost all in the 20 th Century) current demand uses about 30 billion barrels per year demand will likely reach 40 billion barrels per year by 2020

Hubbert’s Peak Campbell and Laherrere, two oil geologists, calculated the world’s proven reserves to hold 850 billion barrels estimate based on P50 values of proven reserves (discounted some reports that seem to have been inflated by OPEC nations) peak oil production should be reached sometime this decade once production begins to slow, prices will continually rise as supply will no longer meet demand oil industry reports suggest a reserve of 1188 billion barrels

oil reserves

Chapter 12.3 Other Fossil Fuels NATURAL GAS most goes for industrial and residential use about a 25-year supply of proven U.S. reserves gas is continually emitted from oil and gas-bearing geological deposits likely pushes supply to about 50 years about 4x more natural gas than oil around the world; however, much of it is inaccessible can be used to power cars and buses (compressed gas runs about 15% of cars in Argentina)

NATURAL GAS (cont.) can be converted to a hydrocarbon that is liquid at room temperature (a synthetic oil) fuel produced is only about 10% more expensive than oil costs to access northern Canadian and Alaskan deposits, a 3600 mile pipeline is needed at a potential cost of $25 billion gas drilling rigs have been set up on many federal lands during the past 8 years, including sensitive wildlife areas such as Padre Island National Seashore and the Powder River Basin in Wyoming

natural gas reserves

COAL in the U.S., 50% of electricity comes from coal- fired power plants current reserves are estimated at 225 years mining of coal can be hazardous and has substantial environmental impacts strip mining destroys ecology of region by removing forests and burying streams in mining waste federal regulations require reclamation, but it takes decades for some sort of ecosystem to reestablish

COAL (cont.) Clean Coal Technology program mission of providing a “secure and reliable energy system that is environmentally and economically sustainable” objective: remove pollutants before or after burning to achieve higher efficiency and reduce greenhouse gas emissions syngas: coal is mixed with water and oxygen and heated under pressure sulfur and other contaminants removed before burning synfuel scam tax credit for any enterprise that changes the composition of coal for further use in power plants

coal reserves

oil shales and oil sands oil shale: fine sedimentary rock containing a solid, wax-like hydrocarbon called kerogen under intense heat, kerogen releases hydrocarbon vapors that can be condensed to a liquid similar to crude oil oil sands: sedimentary material containing bitumen, a viscous, tar-like hydrocarbon large deposits in Canada are yielding up to 1 million barrels per day

energy security and policy threats terrorism global climate change

supply-side policies exploring and developing domestic sources of oil and gas increasing use of vast coal reserves for energy continuing subsidies to oil and nuclear industries removing environmental and legal obstacles to energy development providing access to remote sources of natural gas

demand-side policies increasing mileage standards for motor vehicles increase energy efficiency of appliances and buildings encourage industries to use combined heat and power technologies promote greater use of non-fossil-fuel sources of energy (nuclear and renewable)