Fossil Energy Primer
Transcript of Fossil Energy Primer
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Fossil Energy Primer
A view of the Himalayas from Lhasa
Tad Patzek, Petroleum & Geosystems Engineering, UT Austin10/7/2010, 10:00-12:00 am, SVC 203/202, Capitol Visitor Center, Washington D.C.
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U.S. Energy IndependenceFossil fuels run 85 percent of U.S.economy directly, and the remainderhas a variable but non-negligiblefossil fuel content
Electricity is produced almost entirelyfrom domestic energy sources
Natural gas is the swing fuel forelectricity generation
Natural gas could aid in theelectrification of railroads
Natural gas could supplementpetroleum as an automotive fuel
– p.1/24
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Summary of Conclusions. . .The global rate of production of oil is peaking now,coal will peak in 2-5 years, and natural gas in 20-50years
There is PLENTY of fossil fuels (“resources”) left allover the Earth
The resource size (current balance of a bankingaccount) is mistakenly equated with the speed ofdrawing it down (ATM withdrawals)
Few understand the ever more stringent dailywithdrawal limits imposed by nature on our ATMcards (oil & gas wells and coal mines)
Even fewer understand the high minimum balances(resource left behind) imposed on all oil, coal andgas recovery deposits
– p.2/24
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Summary of Conclusions. . .Economists, business people, and policy makersgenerally have poor understanding of banking
They know what the rate of withdrawals (energydemand) should be, but have little idea about thewithdrawal limits (energy supply)
Offshore and unconventional fields will be producingan increasing portion of global oil supply
Solar energy flow-based solutions (wind turbines,photovoltaics, and biofuels) will require most radicalchanges of our lifestyles
Thermodynamically, industrial-scale biofuels are notsustainable, and will damage the Earth’s most vitalecosystems
– p.3/24
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Oil Resides in Deep Subsurface
Zagros Mountains by J. T. Daniels (NASA), pore scale by Maša Prodanovic
– p.4/24
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Accumulation vs. Production
Unrecoverable Oil, ∼2/3
Recoverable Oil, ∼1/3
Oil rate outVaries a lot
Accumulation = Piggy Bank, Coin Slot = Oil Wells, Injection Wells, and Surface Facilities
– p.5/24
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Mean Ultimate Recoveries
0 5 10 15 20 25 30 35 40
Middle East
FSU
Latin America
Europe
Africa
U.S.A.
Far East
Mean Ultimate Recovery, % Oil−in−Place
Sources: Laherrere, 2002, other sources– p.6/24
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Electricity generation
1998 2000 2002 2004 2006 20080
50
100
150
200
250
300
350D
ays
on E
lect
ricity
/yea
r
Coal
Natural Gas & Other
Nuclear
Hydroelectric
Rest
176
79
72
23
37% of U.S. primary energy use. Source: DOE EIA, accessed 03/28/2010– p.7/24
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Electricity generation – Rest
1998 2000 2002 2004 2006 20080
2
4
6
8
10
12
14
16
18
20
22D
ays
on E
lect
ricity
/yea
r
Petroleum
Wood & Other Biomass
Wind
Geothermal
4
5
5
1
Solar thermal and PV = 1 hour of U.S. electricity. Source: DOE EIA, accessed 03/28/2010– p.8/24
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Transportation Fuels
1950 1960 1970 1980 1990 20000
50
100
150
200
250
300
350D
ays
on F
uel/y
ear
Motor Gasoline
Distillate Oil
Aviation Fuels
Residual Oil
Ethanol
202
99
38
188
31% of U.S. primary energy use. Source: DOE EIA, accessed 03/28/2010 – p.9/24
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Predicting the Future. . .
1970 1975 1980 1985 1990 1995 2000 20050
0.1
0.2
0.3
0.4
0.5
0.6
0.7
Mill
ion
BO
PD
Production histories of 65 oilfields in the North Sea. Sources: Norwegian Government
(2009), Patzek & Croft (2010). The thick lines are Ekofisk and Ekofisk West – p.10/24
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. . . Emergent Behavior. . .
1960 1970 1980 1990 2000 2010 2020 2030 20400
0.5
1
1.5
2
2.5
3
3.5M
illio
n B
OP
D
A single Hubbert curve explains almost all of Norwegian production in the North Sea– p.11/24
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A Future of Norwegian North Sea
1960 1970 1980 1990 2000 2010 2020 2030 20400
5
10
15
20
25
30B
illio
n B
arre
ls o
f Oil
Sources: Norwegian Government (2009), Patzek & Croft (2010)– p.12/24
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North Sea: Ekofisk
1970 1975 1980 1985 1990 1995 2000 20050
5
10
15
20
25
30
35
40C
umul
ativ
e re
cove
ry, %
Oil−
in−
Pla
ce
Bub
ble
poin
t
Wat
erflo
od
Hor
izon
tal w
ells
Infill wells
OIP=6.4 billion bbl. Sources: Norwegian Government (2009), Patzek & Croft (2010) – p.13/24
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Emergent Behavior in the Gulf. . .
1940 1960 1980 2000 2020 20400
0.5
1
1.5M
ilion
BO
PD Shallow water
Deep water Patzek’sProjection
IndustryProjection
Sources: U.S. DOE EIA, MMS, and Patzek’s calculations– p.14/24
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A Future of Deep Gulf
1940 1960 1980 2000 2020 20400
1
2
3
4
5
6
7
8
9
Historic data
Industry Projection
Patzek’sProjection
Bill
ion
Bar
rels
of O
il
Sources: U.S. DOE EIA, MMS, and Patzek’s calculations – p.15/24
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Total Gulf Oil/U.S. Oil Elsewhere
1940 1950 1960 1970 1980 1990 2000 20100
5
10
15
20
25
30
35
40
45G
OM
Oil
vs. R
est o
f U.S
. Oil,
%
Sources: U.S. DOE EIA, MMS, and Patzek’s calculations
Thunder Horse
– p.16/24
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2006 Oil Data for GOM
1 10 100 10001
10
100
1000
Rank = Number of fields larger than a field
Mill
ion
barr
els
of o
il
Proven oil reservesCumulative oil produced
Source: MMS data, 2006Fractals everywhere! All that is relevant was discovered?
– p.17/24
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Second and Third Hubbert Peak
1850 1900 1950 2000 2050 2100 21500
5
10
15
20
25
30M
arke
ted
NG
Pro
duct
ion,
EJ/
Yea
r
ProductionHubbert cyclesFuture UNG
Future Unconventional Natural Gas Cycle = 100 years of U.S. Supply– p.18/24
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Unconventional Gas
1880 1900 1920 1940 1960 1980 2000 2020 2040 20600
200
400
600
800
1000
1200
1400
1600
1800
2000C
umul
ativ
e N
atur
al G
as P
rodu
ctio
n, E
J
Fundamental Hubbert peakAll peaks
Extra 1,200 Tcf = $4.3 trillion at $3.6 per mcf, mostly from unconventional gas– p.19/24
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IEA Demand Growth Scenario. . .
OECD/EIA 2008 scenario of annual energy demand in the world
Source: www.iea.org/speech/2008/Tanaka/cop−
weosideeven.pdf– p.20/24
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IEA and an Oil Production Peak?!
There is an oil peak and 64 millions barrels of oil per day will be missing by 2030
Source: www.iea.org/speech/2008/Tanaka/cop−
weosideeven.pdf
50 million bopd
– p.21/24
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Oil Recovery Processes
Adapted by Larry Lake from the Oil & Gas Journal, Apr. 23, 1990– p.22/24
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World EOR Projects: 2.5 MBOPD
0 0.1 0.2 0.3 0.4 0.5 0.6 0.7
USA
Mexico
Venezuela
Canada
Indonesia
China
Other
Major EOR Projects, Million BOPD
ThermalGas injection
Adapted from the Oil & Gas Journal, Thomas, 2007
– p.23/24
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Power Density
0 200 400 600 800 1000 1200 1400 1600
Middle East
Europe
Africa
CIS
Latin America
Asia
Watts of electricity equivalents per square meter
Oil/gas fieldsWorld field averageSolar PV in U.S.Wind turbines
Adapted from Laherrere, 2003, Patzek, 2007
– p.24/24