D O N OW : By now we are all aware of the oil crisis much of the world is facing. Prices rise and fall over night. We are for the most part completely dependent upon oil. Look at your clothing and the classroom and try to identify items that were made from oil. What are three important ways in which your lifestyle would be different without oil?

A IM : W HAT A RE THE A DVANTAGES AND D ISADVANTAGES OF O IL ? Concept 15-2A Conventional oil is currently abundant, has a high net energy yield, and is relatively inexpensive, but using it causes air and water pollution and releases greenhouse gases to the atmosphere. Concept 15-2B Heavy oils from tar sand and oil shale exist in potentially large supplies but have low net energy yields and higher environmental impacts than conventional oil has.

W E D EPEND H EAVILY ON O IL Petroleum, or crude oil: black and gooey conventional, or light oil: 30% of world supply Fossil fuels: crude oil and natural gas Peak production: time after which production from a well declines Global peak production for all world oil?

W E D EPEND H EAVILY ON O IL Oil extraction and refining By boiling point temperature Petrochemicals : Products of oil distillation Raw materials for industrial organic chemicals Pesticides Paints Plastics Factoid: desktop computer requires 10 times its weight in fossil fuels.

H OW L ONG M IGHT S UPPLIES OF C ONVENTIONAL C RUDE O IL L AST ? Rapid increase since world used 31 billion barrels of oil Largest consumers in 2009 United States, 23% China, 8% Japan, 6%

D O YOU UNDERSTAND WHY THERE IS AN OIL CRISIS ?

H OW L ONG M IGHT S UPPLIES OF C ONVENTIONAL C RUDE O IL L AST ? Proven oil reserves Identified deposits that can be extracted profitably with current technology Unproven reserves Probable reserves: 50% chance of recovery Possible reserves: 10-40% chance of recovery Proven and unproven reserves will be 80% depleted sometime between 2050 and 2100

W ORLD O IL C ONSUMPTION, Figure 1, Supplement 2

H ISTORY OF THE A GE OF C ONVENTIONAL O IL Figure 9, Supplement 9

OPEC C ONTROLS M OST OF THE W ORLD ’ S O IL S UPPLIES OPEC: Organization of Petroleum Exporting Countries 13 countries have at least 60% of the world’s crude oil reserves Saudi Arabia: 20% United States: 1.5% Global oil production leveled off in 2005 Oil production peaks and flow rates to consumers

OPEC C ONTROLS M OST OF THE W ORLD ’ S O IL S UPPLIES Three caveats when evaluating future oil supplies 1. Potential reserves are not proven reserves 2. Must use net energy yield to evaluate potential of any oil deposit 3. Must take into account high global use of oil

T HE U NITED S TATES U SES M UCH M ORE O IL T HAN I T P RODUCES Produces 9% of the world’s oil and uses 23% of world’s oil 1.5% of world’s proven oil reserves Imports 52% of its oil ($200 billion in 2009) Should we look for more oil reserves? Extremely difficult Expensive and financially risky

U.S. E NERGY C ONSUMPTION BY F UEL Figure 6, Supplement 9

D O YOU UNDERSTAND WHY THE US IS FACING AN ENERGY CRISIS ?

C RUDE O IL IN THE A RCTIC N ATIONAL W ILDLIFE R EFUGE Fig. 15-5, p. 376

P ROVEN AND U NPROVEN R ESERVES OF F OSSIL F UELS IN N ORTH A MERICA Figure 18, Supplement 8

C ONVENTIONAL O IL H AS A DVANTAGES AND D ISADVANTAGES Extraction, processing, and burning of nonrenewable oil and other fossil fuels Advantages Disadvantages Take a minute with your table and create a list the advantages and disadvantages of using oil.

T RADE -O FFS : C ONVENTIONAL O IL Fig. 15-6, p. 377

B IRD C OVERED WITH O IL FROM AN O IL S PILL IN B RAZILIAN W ATERS Fig. 15-7, p. 377

C ASE S TUDY : H EAVY O IL FROM T AR S AND Oil sand, tar sand contains bitumen (thick, sticky, oil with a high sulfur content) Canada and Venezuela: oil sands have more oil than in Saudi Arabia Extraction Serious environmental impact before strip-mining Low net energy yield: Is it cost effective? LEAST EFFICIENT, DIRTIEST, MOST ENVIRONMENTALLY HARMFUL

S TRIP M INING FOR T AR S ANDS IN A LBERTA Fig. 15-8, p. 378

A LBERTA C ANADA

W ILL H EAVY O IL FROM O IL S HALES B E A U SEFUL R ESOURCE ? Oil shales contain kerogen After distillation: shale oil 72% of the world’s reserve is in arid areas of western United States Locked up in rock Lack of water needed for extraction and processing Low net energy yield

O IL S HALE R OCK AND THE S HALE O IL E XTRACTED FROM I T Fig. 15-9, p. 379

T RADE -O FFS : H EAVY O ILS FROM O IL S HALE AND O IL S AND Fig , p. 379

S UMMARY : Explain why you are for or against increasing oil imports to the United States in which you live. If you favor reducing dependence on oil imports, what do you think are the three best ways to do this?