Tag Archives: oil

America’s New Energy Policy

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On Wednesday, March 30 President Obama revealed an update on his energy policy for the country.  He called for a 1/3 reduction in the importation of foreign oil from 2008 levels in a decade or so.  His plans to pull this off include more domestic drilling, more reliance on other fuels and alternatives, and greater efficiency.

Every president since Nixon has tried to limit or end our reliance on imported oil.
“Let us set as our national goal, in the spirit of Apollo, with the determination of the Manhattan Project, that by the end of this decade we will have developed the potential to meet our own energy needs without depending on any foreign energy source.”
- President Richard Nixon (November 7, 1973)

Despite the fact that every president, regardless of party, has proclaimed the need to reduce oil imports and develop alternative energies, the amount of oil we import has almost always gone up. (There was a period in the mid eighties where it went down).  So what has changed?  What makes now different from 1973?

Technology has advanced; progress goes forward (if you’re a modernist).  But what has really changed is how we see energy in our lives.  From the 1980’s onward, the price of gasoline has continued to rise.  Two very different things happen as the price of gasoline rises.  One is that the gasoline costs more, not online dollars but as a per cent of our lifestyle.  The other thing is that alternatives become more attractive, cost effective, and more people use them.  It may not be worth my time and effort to pay a $1.25 to ride the light rail one way if gasoline costs $2.50 a gallon, but it does become time and cost effective around $3.75 a gallon. 

Barrels
Creative Commons License photo credit: barekim

The United States has 22 billion barrels (1 barrel = 42 gallons) of proved crude oil reserves.  Proven reserves are oil that we know where it is, have the technology to get to it, and it is economical to go after it.  Unproven oil reserves are what we think is probably there (based on the geology) or what we know is there but don’t have the technology to get to. Each year the amount of proved reserves changes.  This can be because new fields have been found; old fields are no longer producing, improvements in technology, and many other reasons.  To put that amount in perspective,  Saudi Arabia has 267 billion barrels in reserve and Mexico has 12.  We use 21 million barrels of oil a day, so if we had all our proven reserves producing 21 million barrels a day they would last almost 3 years.  So domestic drilling will help, but it can’t be the only way to go.

Other energy sources will have to be tapped.  One of the alternative fuels the presidents mentioned was natural gas.  Natural gas burns cleaner than coal or gasoline.  Right now natural gas is used mainly for electrical power generation and crude oil for transportation.  In order for natural gas to replace some or most of our crude oil use, there would have to be a major infrastructure shift.    Natural gas can not simply be put into gas tanks (it does not help that many different things are called by the same name).  A car would have to be retrofitted with a specially made natural gas tank.  That new tank would probably have some freezing element in it.  Natural gas in its gas state takes up a lot of space.  If you freeze the natural gas down to -258 degrees it is reduced in volume by 600%.  Also gasoline stations would have to be converted to be able to contain natural gas.

Full of Sparks
Creative Commons License photo credit: jurvetson

Electric powered cars could be added to the existing grid and infrastructure more easily. It would take a whole lot less work to convert gas stations into electric stations, although with the amount of time it takes to charge an electric car it might be easier to work with businesses to put electrical stations in parking spots.  That way you could charge your car while you shop for groceries (no matter the size of my shopping list it always takes at least an hour for me to grocery shop, partially because of all the free samples and partially to make sure I have all the spices for my Bouillabaisse).  The more electric cars on the road, the more electricity we need to produce.  This is where it makes sense to use the natural gas: burn it to create electricity instead of using coal.  However, not all the houses built in the past 30 years will have the ability to plug in cars. 

Conservation is where a lot of oil can be saved.  The president wants to increase the efficiency in the cars we drive.  Some of us drive nice little sedans that get 30 or more miles per gallon (some of us even drive hybrids), while others drive SUV’s that get 12 or so miles per gallon.  While the choice of vehicle is an individual one governed by affordability, space, and use (it makes more sense to haul around 7 kids and their sports gear in a SUV than in a 2 door sedan), all cars can be made more efficient.  Weight could be saved on the frame by using lighter materials, the software that runs the engine (yes, lots of cars have software now, but no apps yet) can be optimized, or any number of things that can even be done after you’ve bought the car. 

All in all, the president’s plan to reduce the amount of crude oil we import over the next decade or so is an achievable end.  In fact it has already started.  We reduced the oil we import by 1.7 million barrels a day from 2008 to 2009.  So now what happens?   Many people will sit on the sideline waiting to see what legislation and regulations the federal government hands down.  “Change will not come if we wait for some other person or some other time. We are the ones we’ve been waiting for. We are the change that we seek.” We should all start the change ourselves. There are many different things we can do to use less oil.  Regular maintenance on your car, not having a trunk full of stuff, and driving less are just a few things you can do (for more information check out the ECC).

The Times, they are a Changing

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There is an ancient Chinese curse, “May you live in interesting times.” For the past few months that seems to be a motto of the world.

The unrest in Libya that started with protest has now proceeded into a full civil war. The group of protesters formed a National Council on Feb 26th to give course to the now rebels. It took less than a month for the new national council to become recognized as the legitimate authority in Libya by both a western nation France (which was the first to recognize another regime change in another county, Go France!) and the Arab League, an organization of Arab nations that stretch from the Atlantic to the Indian Ocean. A few days after that, the UN passed a resolution to establish a no fly zone in Libyan airspace. This means that UN air forces (United States, France, Britain, Quarter, etc) will take any and all action to help protect civilians in the country. This has led to a cease fire which both sides have mostly observed.

Colorful Old Oil Barrels
Creative Commons License photo credit: L.C.Nøttaasen

All this has led not only to tragedy, but also to a sharp decrease in crude oil production. Libya’s production is down from 1,400,000 barrels a day to 400,000 barrels a day. Remember that the world consumes 80,000,000,000 barrels each day and the amount we use goes up by 2% annually.

Is Libya the only reason that energy prices are going up?

No, our times are far too interesting to have just one event going on.

In addition to the ongoing protests in Yemen, Bahrain, and Saudi Arabia, Mother Nature has added her own 2 cents.

On March 11th an earthquake of 9.0 on the Richter scale occurred off the eastern coast of Japan followed closely by a tsunami. The earthquake was the most powerful to hit Japan and the tsunami crested at 33 feet inside Japan (by the time it reached Chili the waves where down to 6 feet). The damage has caused tens of billions of dollars in damages and tens of thousands of casualties. It also caused major damage to the Fukushima I and II Nuclear Power Plants.

Vogtle nuclear power plant, Georgia, USA
Creative Commons License photo credit: BlatantWorld.com

A fission reactor works by having fuel rods made of uranium, which radiate neutrons and photons. Neutrons bombarding the fuel also helps to accelerate the reaction. Control rods are made of neutron absorbing elements like cadmium. Lowering the control rods closer to the fuel rods slows down the reaction. One type of energy given off by the reaction is heat. Water is used to control the reaction and to transfer the heat to another system to create steam which turns the turbine. The water inside the reactor is kept under pressure to raise its boiling point. If the water, or other coolant/moderator, can not transfer the heat away, it will eventual boil into steam. If the rods are no longer being cooled, then a meltdown (or a core melt accident) can occur. If the core is breached, radioactive steam can be emitted into the atmosphere, where it will be spread by the winds.

All nuclear power plants have back ups to power the cooling cycle. However, the tsunami washed away the emergency diesel generators at Fukushima I and II Nuclear Power Plants. Reactors at Fukushima I have undergone a partial melt down.

So how does all this affect you? (I’m glad you asked)

All the instability and stoppage of crude oil makes the price go up (less supply, more demand). In the short term the price of crude oil has gone down a little because of the disaster in Japan. Japan used its nuclear power plants to generate 11 Gigawatts of electricity (a third of their electricity) so in the near future it will have to import more coal and natural gas to make up the shortfall.

The disaster has also had repercussions around the world. It has caused the United States to put on hold some nuclear plans and reevaluate others. Other countries are also reevaluating their nuclear plans. The Germans have decided to accelerate the decommissioning of their nuclear plants.

So what can you do about it?

The first step, as always to understand the situation, which is one of the reasons you read this blog (the other of course being my good looks and charming personality). The next step is action which you can do by creating an energy plan for your self (what do you leave plugged in, what do you leave on, etc.). There are also innumerable places to help with disaster relief in Japan. Some of which can be found here.

Changes in the World and Their Effect on Energy

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Everywhere we look things are always changing.  Now that winter is leaving, spring has sprung.  In Houston we’re back up to the mid 70’s and we hope that lasts a long time.  While we may not be able to see some of the changes, like the movement of the stars, the changing face of the planet, or the shrinking of my book collection as I slowly switch everything over to the Kindle, other things are more apparent.  The birth of a baby bird or the emptying of a glass of a pleasant draught on a warm winter day, or the regime change of a country are all easy to see.

Lots has happened recently throughout the world.  Southern Sudan has seceded from the rest of the country.  Egypt and Libya have experienced popular uprisings, and other countries in the region are holding their breath to see what happens next.

You might be asking yourself, “why is he talking about this in an energy blog?” or “how can it possibly affect me?” This is a perfect time to talk about how events in other countries can affect the energy polices at home.

Egypt has a long history.  It has kept our imagination for centuries. From Herodotus to Sadat, from Alexander to Cleopatra, the great names associated with Egypt are innumerable.  The entire world can identify the famous objects from the land of the Nile (even when they’re in other countries).

Suez Canal as seen from Earth’s orbit

Modern Egypt produces about 660 thousand barrels of oil a day. In recent years it has grown its natural gas industry and has the third largest reserve of natural gas in Africa. Egypt is very important in the energy field for a different reason, the Suez Canal. While the largest hydrocarbon tankers are too large to pass through, 20% of the shipping that goes through the canal is hydrocarbon transportation.  If the canal were to shut down it would add a week or two to time to transport the hydrocarbons to their destination.  If that happen the increased transportation cost would make the cost of crude oil rise.  That’s why I’m talking about Egypt in an energy blog.

Libya has always been at the center of trade.  Under both the Phoenician and the Romans it prospered.  It was a major and power trade location in the 19th century as well.  It was an Italian colony during World War I and administer by the British after World War II.  After gaining independence in 1951, its current government came to power in 1969.  Currently there are large protests occurring across the country.

Again you may ask, “how does this affect me?’

Libya is a member of OPEC and has the largest oil reserves in Africa (44.3 billion barrels).  They produce about 1.4 million barrels a day.  The profit of the oil exports accounts for 80% of their revenue.  If all oil production in Libya stopped, Saudi Arabia might be able to use its excess capacity to keep global oil production levels stable.  But that’s assuming nothing else happens.   And the longer Libya is not producing, the more likely something else would happen.  In any of these events, the price of crude oil would climb, and with that the cost of gasoline and other petro products would go up (the cost of crude oil has leapt up to $99 over the past couple of days as a response to the protests).

back alley
Creative Commons License photo credit: tvol

As you can see, events throughout the world can affect you.  Therefore you should pay attention to what’s going on around you (if you walk with your head down you might run into that new shelves they have at Half Price Books).  Thankfully not all of it is as confusing as complexity theory.

Where do we go from here

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“The battle’s done and we kinda won, so we’ll sound our victory cheer. Where do we go from here” – Joss Whedon, Buffy the Vampire Slayer.

Oct 13, 2010 – The Deepwater oil ban was lifted by the President, but what does it mean? On the surface, it would seem that deepwater drilling off the Gulf would get back to normal. As always, reality is far different. A number of different environmental organizations, such as the Sierra Club, think it’s too soon to lift the ban. Some drilling companies fear that even though the ban has been lifted, the new regulations and red tape will prevent them from being able to drill. So what does the lifting of the ban and the new regulations really mean?

On April 30th, the President issued a moratorium on offshore drilling based open depth, meaning that companies could not drill new wells at depths greater than 500 feet. This did not stop the wells that were already producing. It also did not stop new wells or modification of existing wells that had obtained their permits before the moratorium went into effect. What happened next is what almost happens with every new law, it was challenged in court. Judge Feldman ruled that the moratorium was overly broad and would harm the Gulf Economy.

A 2nd offshore drilling moratorium was put into place. This time it applied to any deep water facilities with drilling capabilities. And again, as soon as the law was in place it was challenged in court. The 2nd moratorium was to be in effect till November 30, but it was listed October 12, nearly 7 weeks early.

Does that mean that offshore drilling has taken off? No. No it does not. Now there are new regulations that must be met. Some of the new regulations include making the CEO responsible for making sure the well has met all the safety requirements and having equipment on site to help contain a blowout, if one should occur. Companies are waiting for a final list of the new regulations. Some environmental organizations are unhappy with how quickly the moratorium has been lifted, but some congressmen are unhappy about the moratorium effect’s on the jobs in the Gulf. Many of the offshore drilling platforms have left the Gulf for more profitable waters.