Energy Primer:Some Background on Energy Systems

Economics 331bYale University

Note: These slides are products of a large number of scholars in the natural and social sciences. Implicit thanks go to all who have made these available.

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Some Important Units of Measurement

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UnitsScientific units:1 Joule (J) is the MKS unit of energy, equal to the force of one

Newton acting through one meter. 1 Watt is the power of a Joule of energy per second Multiplicative measures;

kilo-x = 10^3 x mega-x = 10^6 xgiga-x = 10^9 x tera-x= 10^12 xpeta-x = 10^15 x exa-x = 10^18 x

Commonly used non-scientific units:A BTU (British Thermal Unit) is the amount of heat necessary

to raise one pound of water by 1 degree Fahrenheit (F). 1 BTU = 252 cal  = 1.055 kJ

“barrel of oil” = 42 gallons =1/7 of a metric ton

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Units of energy system

5Source: Gruebler et al., Energy Primer

Heat content of fuels

Mbtu GJ 1 barrel of crude oil 5.80 6.12 1 ton of crude oil 39.68 41.87 1 short ton of coal 25.18 26.57 1000 ft3 of natural gas 1.000 1.055

1 MBtu = 106 Btu (IT)1 GJ = 109 J

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Examples of Power and Energy Examples of Power and Energy (ranked by power (ranked by power ratings)ratings)

Power

W

Time

(Seconds)

Energy

J (Ws)

Solar energy to earth per year 1.8 10^17 3.2 10^7 5.6 10^24

Earthquake 8 Richter scale 2.0 10^15 3.0 10^1 6.0 10^16

Global energy use for 2000 1.4 10^13 3.2 10^7 4.4 10^20

Thunderstorm (kinetic energy) 1.0 10^11 1.2 10^3 1.2 10^14

Space shuttle lift-off 1.2 10^10 1.2 10^2 1.4 10^12

B 747 flight Tokyo-Frankfurt 1.1 10^8 4.0 10^4 4.4 10^12

Energy/day for a supermarket 2.0 10^5 4.3 10^4 8.6 10^9

Daily metabolism of adult 1.0 10^2 8.6 10^4 8.6 10^6

Burning a small candle 3.0 10^0 1.8 10^3 5.4 10^3

Source: Nakicenovic7

Schematics and cartoons

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Overview of energy system

Energy resources

(oil in ground,…)

Capital, labor, …

Energy fuels (gasoline,

electricity, …)

Capital, labor, …

Energy goods and services (passenger miles, warm house, hot coffee, …

Non-energy goods and services

Utility:U(c1, c1, …, cn)

U.S. Primary Energy Consumption by Source and Sector, 2007 (Quadrillion Btu)

Source: Energy Information Agency10

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More detailed overview of the energy system

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Basic data and trends for the US

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Energy politics

Energy Consumption by Source, 1635-2000 (Quadrillion Btu)

Source: Energy Information Agency14

Energy Consumption by Source, US

Source: Energy Information Agency15

Energy Production by Source for 2000, U.S.

Source: Energy Information Agency16

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Energy Consumption by End Use , US

Source: Energy Information Agency18

Petroleum Overview , US

Source: Energy Information Agency19

Source: EIA

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Transportation Energy Consumption , US

Source: Energy Information Agency21

Motor Vehicle Indicators , US

Source: Energy Information Agency22

Vehicle ownership per person, 1900-2002

Source: IPCC, AR4, Mitigation 23

Coal Production by Mining Method , US

Source: Energy Information Agency24

Coal Consumption by Sector, US

Source: Energy Information Agency25

Source: Energy Information Agency

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Nuclear Power Plant Licenses Issued, US

Source: Energy Information Agency27

Renewable Energy, US

Source: Energy Information Agency28

Renewable Energy, 2008 , US

Source: Energy Information Agency29

Map on Solar Potential, US

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Map of Wind Potential, US (wind speed)

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Basic data and trends for the world

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Total Fossil Energy Resources, Global

ZJ = Zeta-joule or 1021 Joule or thousands of ExajoulesSource: Nakicenovic

Additional Resource Additional Ratio: All

Fossil 1860-1998 1998 Reserves Resources Base occurrences to 1998

Fuel ConsumptioCategory ZJ ZJ ZJ ZJ ZJ ZJ (years)

Conventional 4.85 0.13 6 6 12 91

Unconventional 0.29 0.01 5 15 20 45

All 5.14 0.14 11 21 32 45 546

Conventional 2.35 0.08 5 11 17 207

Unconventional 0.03 0.00 9 24 33 930

All 2.38 0.08 15 35 50 930 11,609

5.99 0.09 21 179 200 2,166

13.51 0.32 47 235 282 975 3,946 Total occurrences

Consumption

Oil

Natural gasc

Coal

Global energy resources

Source: Energy PrimerNote: Unit is “exojoule” = 10^18 joules = 10^15 Btu = 1/400 of world energy use.

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Potential global renewable energy

Source: Energy PrimerNote: Unit is “exojoule” = 10^18 joules = 10^15 Btu = 1/400 of world energy use.

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World Crude Oil Production, 1973-2008

Source: Energy Information Agency36

Shares of world energy consumption

Source: IPCC Energy PrimerNote: Unit is “exojoule” = 10^18 joules = 10^15 Btu = 1/400 of world energy use.

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Shares of world energy consumption

Source: EIA

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Energy intensity of production

Source: IPCC Energy PrimerNote: Unit is “exojoule” = 10^18 joules = 10^15 Btu = 1/400 of world energy use.

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PRICES

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10.0

5.04.0

3.02.52.0

1.5

1.0

0.550 55 60 65 70 75 80 85 90 95 00

CoalOilGasolineNatural gasElectric power

Prices of energy (1973:1 = 1; deflated CPI)

41Source: Nordhaus, based on BLS

42Source: Nordhaus, based on EIA oil prices and BLS CPI.

0

20

40

60

80

100

120

140

50 55 60 65 70 75 80 85 90 95 00 05 10

Real oil price (2008 prices)

Oil price shocks 1 to 4

[$ per barrel, 2008 CPI deflated]

Energy goods v. energy services

A key issue in measurement is the difference between energy goods or inputs and energy outputs or services.

E.g., ounce of whale oil v. lumen; gallon of gasoline v. (vmt, comfort, safety, noise, …)

Production function:Energy services = f(capital, labor, fuel, infrastructure,…)

Basic point: There have been vast improvements in energy services per unit of primary energy over time (call it “efficiency”)

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The price of fuel for lighting

44Roger Fouquet and Peter J.G. Pearson

The long-term price of light

45Roger Fouquet and Peter J.G. Pearson

The long-term price of light

46Roger Fouquet and Peter J.G. Pearson

The Price of Passenger Transport (per Passenger-Km-Hour), 1650-2000

47Roger Fouquet and Peter J.G. Pearson

The Price of Passenger and Freight Transport (per Passenger and

Tonne-Kilometre-Hour), 1840-2000

48Roger Fouquet and Peter J.G. Pearson

The Price of Freight Transport (per Tonne-Kilometre), 1250-2000

49Roger Fouquet and Peter J.G. Pearson

Some environmental indicators

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CO2 concentrations at Mauna Loa

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320

330

340

350

360

370

380

390

60 65 70 75 80 85 90 95 00 05

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Instrumental record: global mean temperature index (°C)

-0.4

-0.2

0.0

0.2

0.4

0.6

0.8

1.0

1850 1875 1900 1925 1950 1975 2000

GISSHadleyUS NCDC

Tem

per

ature

anom

aly

(189

5-19

05 =

0)

Greenhouse gas

emissions, 2004

Source: IPCC, AR4, Mitigation 53

CO2 emissions

and concentratio

ns

Source: IPCC, AR4, Science54

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.6

.5

.4

.3

.2

.11930 1940 1950 1960 1970 1980 1990 2000 2010

CO2-GDP ratioTrend (-1.7 percent per year)

Trend in CO2 emissions relative to GDP, US

Global decarbonization

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Decarbonization by country

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Source: Muller, Nordhaus, Mendelsohn, 2008.

0.0

0.5

1.0

1.5

2.0

2.5

3.0

3.5

4.0

4.5

5.0

Coal Petroleum Natural Gas Nuclear Hydroelectric

Pric

e, e

xter

nal c

ost p

er k

wh,

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2External cost and wholesale price, power, US

Wholesale price of power

External costs of generation (air, …)

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Source: Climate priced at $30 per ton C. Electricity at 8.4 cents per kwh. Muller, Nordhaus, Mendelsohn, 2008.

Ratio of External Costs to Electricity Price, Different Generation Types, With and Without Climate

Charge

0%

5%

10%

15%

20%

25%

30%

35%

Coal Oil Gas Nuclear

Without climate externality

With climate externality

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