ENERGY MIX & NEEDSENERGY MIX & NEEDS

Matthew W. Rhoades

SCHC 390M

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Energy Basics by SourceEnergy Basics by Source

• Petroleum

• Natural Gas

• Electricity

• Coal

• Nuclear

• Renewable & Alternative Fuels

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Source Basics by TopicSource Basics by Topic

• Production/Generation

• Consumption

• Reserves and Resources

• Capacity

• Prices

• Import/Export

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OECDOrganisation for Economic Co-Operation and Development

OECDOrganisation for Economic Co-Operation and Development

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OPECThe Organization of the Petroleum Exporting Countries

OPECThe Organization of the Petroleum Exporting Countries

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PetroleumPetroleum

• The word petroleum generally refers to crude oil or the refined products obtained from the processing of crude oil (gasoline, diesel fuel, heating oil, etc.) We find petroleum products in every area of our lives. They are easily recognized in the gasoline we use to fuel our cars and the heating oil we use to warm our homes. However, petroleum-based components are also used in plastics, medicines, food items, and a host of other products.

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PetroleumPetroleumProduction-Global• The top five oil producing

countries, which together accounted for about 43% of total world production, were: Russia, Saudi Arabia, the United States, Iran, and China. 

• The Organization of Petroleum Exporting Countries (OPEC), which includes Saudi Arabia, produced about 44% of the world total.

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PetroleumPetroleumProduction & Imports: U.S.

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• • In 2006, total U.S. domestic crude oil production, including Federal offshore, averaged a decrease of about 47% from 1970.

• The top six crude oil-producing States in 2006 (and their percent share of total domestic production) were Texas (21%), Alaska (15%), California (12%), Louisiana (4%), Oklahoma (3%), and New Mexico (3%).

• Production on Federal offshore-leases in the Gulf of Mexico in 2006 was about 25% of total U.S. production.

PetroleumPetroleumProduction & Imports: U.S.

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• • U.S. domestic crude oil production

peaked in 1970 and since then imports of crude oil and of refined petroleum products have contributed a growing share of the petroleum supplied to meet U.S. demand (see graph at right). 

• In 2006 the top two countries we imported crude oil from were our neighbors: Canada and Mexico.

• The U.S. imports crude oil from over 60 countries. 69% of net imports of crude oil were from five countries: Canada, Mexico, Saudi Arabia, Venezuela, and Nigeria. Imports from all OPEC countries were 47% of total U.S. crude oil imports.

PetroleumPetroleumConsumption - U.S.

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PetroleumPetroleumConsumption - Global

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PetroleumPetroleumReserves - Global

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PetroleumPetroleumReserves – U.S.

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• Total proved reserves of crude oil in the United States, as of year-end 2006, are 20.97 billion barrels, a 3.6 percent decrease from those of 2005.

• Thirty-one States have crude oil reserves.

• The top five are: – Texas, with 4.9 billion barrels– Alaska, with 3.9 billion barrels– California, with 3.4 billion barrels– Wyoming, with 706 million barrels– New Mexico, with 696 million barrels.

Natural GasNatural Gas

• Natural gas is mostly methane. It is best known as the fuel that produces the blue flame that heats our food, our water, and our homes and buildings. It is also used to generate electricity, provide heat for industrial processes, and as a raw material to produce petrochemicals, plastics, paints, and a wide variety of other products.

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Natural GasNatural GasConsumption – U.S.

• In 2005, U.S. natural gas consumption reached 22.2 trillion cubic feet (Tcf), down 1 percent from 2004.

• The historical peak in U.S. natural gas consumption occurred in 2000 when 23.3 Tcf were consumed.

• Total U.S. natural gas consumption is forecasted to increase from 22.2 Tcf in 2005 to 26.1 Tcf in 2030.

• Most of the increase is seen before 2020, when total U.S. natural gas consumption reaches 26.3 Tcf.  

• After 2020, high natural gas prices limit consumption to about 26 Tcf through 2030.  Consequently, the natural gas share of total energy consumption drops from 23 percent in 2005 to 20 percent in 2030.

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Natural GasNatural GasProduction

• The Federal Offshore Gulf of Mexico and five States accounted for the majority of the natural gas production in the United States, comprising 76.6 percent of the total in 2006: – Texas (27.8 percent)– Federal Offshore Gulf of Mexico (15.7 percent)– Wyoming (9.4 percent)– Oklahoma (8.6 percent)– New Mexico (8.1 percent)– Louisiana (6.8 percent)

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Natural GasNatural GasReserves

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CoalCoal

• Coal is a combustible black or brownish-black sedimentary rock composed mostly of carbon and hydrocarbons. It is the most abundant fossil fuel produced in the United States. Over 90 percent of the coal used in the United States is used to generate electricity.

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CoalCoalConsumption

• During 2005, a record was consumed in the United States. • The greatest demand for coal was by electricity generating

plants that burn coal to produce electricity. 92 percent of the total, was used by the electric power sector to produce about half (49.7 percent) of all electricity generated.

• Each ton of coal consumed at an electric power plant produces about 2,000 kilowatt-hours of electricity. A pound of coal supplies enough electricity to light ten 100-watt bulbs for about an hour.

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CoalCoalReserves• The distribution of coal reserves around the world varies

notably from that of oil and gas. • Significant reserves are found in the United States and

Russia but not in the Middle East. • The United States with 27 percent and Russia with 17

percent account for nearly half of global coal reserves. China (13 percent), Australia (9 percent), South Africa (5 percent), and Kazakhstan (3 percent) also have significant amounts of the world's recoverable coal reserves.

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CoalCoalProjections• From 2004 to 2030, coal production in China, the United States, and India,

driven by growing  coal consumption, is projected to increase. It is assumed that most of the demand for coal in China, the United States, and India will continue to be met by domestic production.

• The projected increases in coal production for the three countries dominate the overall trends in the OECD and non-OECD regions, accounting for 71 percent of the increase in production for the entire OECD region and 79 percent of the increase in the non-OECD region. Increased demand for international trade is expected to support production increases in Australia/New Zealand, Russia, other non-OECD Asia, Africa, and Central and South America (excluding Brazil).  

• China and India together account for 72 percent of the projected increase in world coal consumption from 2004 to 2030. Strong economic growth is projected for both countries, and much of the increase in their demand for energy, particularly in the industrial and electricity sectors, is expected to be met by coal. 

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CoalCoalProjections

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ElectricityElectricity

• Electricity is a secondary energy source which means that we get it from the conversion of other sources of energy, like coal, natural gas, oil, nuclear power and other natural sources, which are called primary sources. The energy sources we use to make electricity can be renewable or non-renewable, but electricity itself is neither renewable or non-renewable.

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ElectricityElectricityGeneration• In 2006, coal generated the

largest share of electricity - 49%.

• Natural Gas generation accounts for 20%.

• Nuclear-powered generation accounts for 19%.

• In 2006, hydroelectric generation had the fourth largest share (7%) of electricity

production.• All other renewables account

for only 3% of electricity generation in 2006.

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ElectricityElectricityGeneration – Current and Projected

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ElectricityElectricityCapacity – Current and Projected

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ElectricityElectricity

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NuclearNuclear• A nuclear power plant operates basically the same way

as a fossil fuel plant, with one difference: the source of heat.  The process that produces the heat in a nuclear plant is the fissioning or splitting of uranium atoms.  That heat boils water to make the steam that turns the turbine-generator, just as in a fossil fuel plant.  The part of the plant where the heat is produced is called the reactor core.

• Nuclear power accounts for about 19 percent of the total electricity generated in the United States, an amount comparable to all the electricity used in California,Texas, and New York, our three most populous (having the most people) states. 

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NuclearNuclearCapacity

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NuclearNuclearGeneration

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NuclearNuclearProjections

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RenewableRenewable

• Whereas fossil fuels are exhaustible, renewable energy sources - water (hydropower), biomass, wind, heat from the earth (geothermal), and the sun (solar energy) - regenerate and can be sustained indefinitely. "Green" renewables contribute much less to global warming and climate change by offsetting fossil fuels used to generate electricity.

• In 2005, about 6% of all energy consumed, and about 9% of total electricity production was from renewable energy sources.

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RenewableRenewableConsumption• Renewable energy consumption increased 2

percent from 2004 to 2005, while total U.S. energy consumption remained flat.

• The electric power and industrial sectors continued to have the largest portions of renewable energy consumption with 56 and 29 percent of the market respectively.

• The transportation sector has been on an upward trend since 2001, and increased 17 percent between 2004 and 2005. Growth in renewable transportation fuels ethanol and biodiesel has powered this growth.

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World Market ProjectionsWorld Market Projections

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Energy MixEnergy Mix

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Energy MixEnergy Mix

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Energy MixEnergy Mix

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State – Level Energy ConsumptionState – Level Energy Consumption

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Interesting ChartInteresting Chart

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FinFin

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