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A Cubic Mile of Oil Realities and Options for Averting the Global Energy Crisis Ripudaman Malhotra, Ph.D., SRI International, Menlo Park, CA 94025 The energy challenge: A tough choice ahead Current pracces of energy producon and use are unsustainable: - Supplies are becoming scarce, and it is hard to meet demand - Energy producon and use threaten the environment But energy use is central to our way of life, and the consequences of not meeng future energy demands are dire: - We will condemn large segments of the populaon to lives of poverty - Energy scarcity may lead to unrest and conflict over resources A comprehensive energy policy must acknowledge the magnitude of the problem How much energy do we use? Energy from various sources is measured in different units To facilitate a discussion of energy, we introduce a new unit of energy, a cubic mile of oil (CMO), which is a term for a visual unit of measure coined by SRI’s Hew Crane while he waited in the 1970s gas lines. His realizaon: annual global oil consumpon was then approaching one cubic mile! mile mile mile Statue of Liberty 1 CMO ~ = 1.1 trillion gallons of oil (26 billion (10⁹) barrels oil) 1 CMO ~ = current annual worldwide oil consumpon 1 CMO is equivalent to: 153 quadrillion (10¹⁵) Btu (Quads) 6.4 billion (10⁹) tons of hard coal 15.3 trillion (10¹²) kWh electricity (Numbers calculated at 10,000 Btu/kWh, which is a more realisc conversion factor than the standard of 3,412 Btu/kWh) Electricity 36% Industrial 22% Industrial 32% Commercial/Residenal 13% Commercial/ Residenal 39% Transportaon 29% Transportaon 29% More than a third goes into producing electricity, which is used in other sectors Distribuon aſter apporoning the energy for electricity into sectors that use it How do we use energy? In the USA 2.6% 1.8% 0.8% 270 CMO 214 CMO 163 CMO 179 CMO Recent energy growth rate: 2.5%/yr Annual GDP growth rate: World: 5.5% China: 11% India: 9% 10.00 9.00 8.00 Energy Demand (CMO) Year 7.00 6.00 5.00 4.00 3.00 2.00 1.00 0 1990 2000 2010 2020 2030 2040 2050 2060 From 3.0 CMO/yr we are moving to 9.0 CMO/yr Variable profile Projected energy demand by 2050 Soluons must scale to the level of 1 CMO/year to make a meaningful impact! Where is energy produced and consumed? 1.0 0.9 0.8 CMO 0.7 0.6 0.5 0.4 0.3 0.2 0.1 North America Russian Group Asian/Pacific Middle East/ North Africa Sub-Saharan Africa Hydropower Nuclear Power Coal Gas Oil Europe Central/South America 0 What drives energy consumpon? Standard of living, not populaon alone, drives energy use 2000 1800 1600 Per Capita Annual Energy Consumpon (GO) 1400 1200 1000 800 600 400 200 0 0 1000 2000 3000 Populaon (millions) North America (0.72) Europe (0.51) Russian Group (0.26) Central/South America (0.15) Global Average Mid-East/North America (0.15) Sub-Saharan Africa (0.06) Asia/Pacific (0.94) Addional 1.48 CMO Addional 0.68 CMO 4000 5000 6000 7000 8 hours of cardio: ~ = 1 kWh ~ = 0.1 gal of oil In 2006, global energy consumpon was 3 CMOs/year! Oil 1.06 Coal 0.81 Natural Gas 0.61 Geothermal <0.01 Biomass 0.19 Nuclear 0.15 Hydroelectric 0.17 Wind + Photovoltaic + Solar Thermal <0.03 1 Btu ~ = the energy from a burning match

Transcript of A Cubic Mile of Oil - Oxford University Press - homepage Cubic Mile of Oil Realities and Options for...

Page 1: A Cubic Mile of Oil - Oxford University Press - homepage Cubic Mile of Oil Realities and Options for Averting the Global Energy Crisis Ripudaman Malhotra, Ph.D., SRI International,

A Cubic Mile of OilRealities and Options for Averting the Global Energy Crisis

Ripudaman Malhotra, Ph.D., SRI International, Menlo Park, CA 94025

The energy challenge: A tough choice ahead

Current practices of energy production and use are unsustainable: - Supplies are becoming scarce, and it is hard to meet demand - Energy production and use threaten the environment

But energy use is central to our way of life, and the consequences of not meeting future energy demands are dire: - We will condemn large segments of the population

to lives of poverty - Energy scarcity may lead to unrest and conflict over resources

A comprehensive energy policy must acknowledge the magnitude of the problem

How much energy do we use?

Energy from various sources is measured in different unitsTo facilitate a discussion of energy, we introduce a new unit of energy, a cubic mile of oil (CMO), which is a term for a visual unit of measure coined by SRI’s Hew Crane while he waited in the 1970s gas lines. His realization: annual global oil consumption was then approaching one cubic mile!

mile

mile

mile

Statue of Liberty

• 1 CMO ~= 1.1 trillion gallons of oil (26 billion (10⁹) barrels oil)• 1 CMO ~= current annual worldwide oil consumption• 1 CMO is equivalent to: 153 quadrillion (10¹⁵) Btu (Quads) 6.4 billion (10⁹) tons of hard coal 15.3 trillion (10¹²) kWh electricity (Numbers calculated at

10,000 Btu/kWh, which is a more realistic conversion factor than the standard of 3,412 Btu/kWh)

Electricity36%

Industrial22%

Industrial32%

Commercial/Residential 13%

Commercial/Residential

39%

Transportation29%

Transportation29%

More than a third goes into producing electricity, which is used in other sectors

Distribution after apportioning the energy for electricity into sectors that use it

How do we use energy?In the USA

2.6%

1.8%

0.8%

270 CMO

214 CMO

163 CMO

179 CMO

Recent energy growth rate: 2.5%/yrAnnual GDP growth rate: World: 5.5% China: 11% India: 9%

10.00

9.00

8.00

Ener

gy D

eman

d (C

MO

)

Year

7.00

6.00

5.00

4.00

3.00

2.00

1.00

01990 2000 2010 2020 2030 2040 2050 2060

From 3.0 CMO/yr we are moving to 9.0 CMO/yr

Variable profile

Projected energy demand by 2050

Solutions must scale to the level of 1 CMO/year to make a meaningful impact!

Where is energy produced and consumed?1.0

0.9

0.8

CMO

0.7

0.6

0.5

0.4

0.3

0.2

0.1

NorthAmerica

RussianGroup

Asian/Pacific Middle East/North Africa

Sub-SaharanAfrica

Hydropower

Nuclear Power

Coal

Gas

Oil

EuropeCentral/SouthAmerica

0

What drives energy consumption?Standard of living, not population alone, drives energy use

2000

1800

1600

Per

Capi

ta A

nnua

l Ene

rgy

Cons

umpti

on (G

O)

1400

1200

1000

800

600

400

200

00 1000 2000 3000

Population (millions)

Nor

th A

mer

ica

(0.7

2)

Euro

pe (0

.51)

Russ

ian

Gro

up (0

.26)

Central/SouthAmerica (0.15)

Global Average

Mid-East/NorthAmerica (0.15)

Sub-SaharanAfrica (0.06)

Asia/Pacific (0.94)

Additional 1.48 CMO

Additional 0.68 CMO

4000 5000 6000 70008 hours of cardio: ~= 1 kWh ~= 0.1 gal of oil

In 2006, global energy consumption was 3 CMOs/year!

Oil1.06

Coal0.81

Natural Gas0.61

Geothermal <0.01Biomass 0.19

Nuclear 0.15

Hydroelectric 0.17 Wind + Photovoltaic + Solar Thermal <0.03

1 Btu ~=the energy froma burning match

Page 2: A Cubic Mile of Oil - Oxford University Press - homepage Cubic Mile of Oil Realities and Options for Averting the Global Energy Crisis Ripudaman Malhotra, Ph.D., SRI International,

TIME WEIT’S

FOREIGN DEPENDENCE!

END

OIL

Don’t waste

Be informed

Get involved

Swww.sri.com

[email protected]

www.oup.com/us/CubicMile

Assured (95%)

Reserves

Conventional resources

Unconventional resources Heavy oil Coal bed methane Tar sands Tight sands Oil shale Gas hydrates

Likely (50%)

Speculative (5%)

More likely

Less likely

Reserves depend on technology and price!

Additional resources become viable with improved technologies and at higher prices…

Considerations in changing the global energy mix

Does the source have CMO-scale potential to supply energy?

What infrastructure is required for large-scale deployment?- Is it plug-and-play?- Will it require new pipelines, transmission structures?

What is its environmental footprint?- Energy return on fossil energy invested?- Competing land and water use issues?- Biodiversity, habitat destruction?

Can it compete with oil at $50/barrel?

Competition for green energy comes from cheap fossil sources,not other green sources

Producing 1 CMO/year from various sources is an enormous task requiring trillions of $

*In CMO units

42 46

120Reserves

94AdditionalResources

66AdditionalResources

400Unconventional

Tar sands, oil shales

5,000Unconventional

Gas hydrates

1,500AdditionalResource

Reserves

Oil* Gas* Coal*

How much oil, gas, and coal do we have left?

We have plenty of fossil resources, but mostly in unconventional reserves

Conventional fuels will be needed to support energy needs while we switch to other sources

Continued use of these energy sources increases atmospheric CO₂ levels

Problems associated with scaling up alternative technologiesExpansion slowed by:

- Inertia of the incumbent system (sheer size)- Market acceptability (cost)- Resource limitation- Infrastructure requirement- Lack of trained personnel- NIMBY (not in my backyard)- NOPE (not on planet earth)- BANANA (build absolutely nothing, anywhere near anything!)

More rapid penetration possible when aided by:- Strategic importance to military- High-value products for niche markets

Producing 1 CMO/year from alternative technologiesHydroelectric 18 GW with 50% availability (av.) 200 dams – 1 every quarter for 50 years

Nuclear 900 MW with 90% av. 2,500 plants – 1 a week for 50 years

Solar CSP 900 MW with 25% av. 7,700 solar parks – 3 a week for 50 years

Windmills 1.65 MW with 35% av. 3 million – 1,200 a week for 50 years

Solar Roofs 2.1 kW with 20% av. 4.2 billion – 250,000 roofs a day for 50 years

What is the path forward?Time is of the essence!Innovation is needed on all fronts to meet future energy needsReducing demand from 9 to 6 CMOs will be a majorinternational effort requiring new technologiesOur planning cycle needs to last 40 years, not 4 years, and transcend the prevailing price of oilTo make an impact, we need all technology options and more…AND is the operative conjunction!

What are the alternative energy sources?The sun offers 23,000 CMO/year in the form of heat, wind, hydroelectric, photovoltaic, and biomass sources

But changing the energy mix takes many decades!

Perc

ent T

otal

Prim

ary

Ener

gy fr

om V

ario

us R

esou

rces

Year

Wood/Biomass

Oil

Gas

Hydro

Coal

Nuclear

Wood/Biomass

Oil

Coal ~1880

~1940

~1960

100

90

80

70

60

50

40

30

20

10

01850 1870 1890 1910 1930 1950 1970 1990 2010