Chapter 16-1. Chapter 16-2 CHAPTER 16 PROCESS COSTING PROCESS COSTING Accounting, Fouth Edition.
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Transcript of Chapter 16
Nonrenewable Energy
Core Case Study: How Long Will the Oil Party Last?
Saudi Arabia could supply the world with oil for about 10 years.
The Alaska’s North Slope could meet the world oil demand for 6 months (U.S.: 3 years).
Alaska’s Arctic National Wildlife Refuge would meet the world demand for 1-5 months (U.S.: 7-25 months).
Core Case Study: How Long Will the Oil Party Last?
We have three options:Look for more oil.Use or waste less oil.Use something else.
Figure 16-1Figure 16-1
TYPES OF ENERGY RESOURCES About 99% of the energy we use for heat
comes from the sun and the other 1% comes mostly from burning fossil fuels.Solar energy indirectly supports wind power,
hydropower, and biomass.
About 76% of the commercial energy we use comes from nonrenewable fossil fuels (oil, natural gas, and coal) with the remainder coming from renewable sources.
TYPES OF ENERGY RESOURCES
Nonrenewable energy resources and geothermal energy in the earth’s crust.
Figure 16-2Figure 16-2
TYPES OF ENERGY RESOURCES
Commercial energy use by source for the world (left) and the U.S. (right).
Figure 16-3Figure 16-3
TYPES OF ENERGY RESOURCES Net energy is the amount of high-quality
usable energy available from a resource after subtracting the energy needed to make it available.
Remember the second law of thermodynamics!
Net energy ratio – useful energy produced/energy used to produce it
Net Energy Ratios
The higher the net energy ratio, the greater the net energy available. Ratios < 1 indicate a net energy loss.
Figure 16-4Figure 16-4
OIL Crude oil (petroleum) is a thick liquid containing
hydrocarbons that we extract from underground deposits and separate into products such as gasoline, heating oil and asphalt.Only 35-50% can be economically recovered from a
deposit.As prices rise, about 10-25% more can be recovered
from expensive secondary extraction techniques.○ This lowers the net energy yield.
OIL Refining crude oil:
Based on boiling points, components are removed at various layers in a giant distillation column.
The most volatile components with the lowest boiling points are removed at the top.
Figure 16-5Figure 16-5
OIL World’s largest business Eleven OPEC (Organization of
Petroleum Exporting Countries) have 78% of the world’s proven oil reserves and most of the world’s unproven reserves.
An oil reserve is an identified deposit from which crude oil can be extracted profitably at current prices and current technology.
2007 World Proved Reserves
After global production peaks and begins a slow decline, oil prices will rise and could threaten the economies of countries that have not shifted to new energy alternatives.
Top three oil consuming nations U.S. (60%) China (33%) Japan (100%)
Source: U.S Department of Energy, Energy Information Administration
Oil Refining Capabilities
Organization for Economic Co-operation and Development (OECD) countries control most oil refining.
Supply and demand economics are therefore interrupted by a multi-stage process dictating the supply.
Historic Oil Prices
Source: Lindstrom, Kirk. Inflation adjusted oil prices fall on strong USD. Seeking Alpha. 19 Oct, 2008. Retrieved 26 Mar, 2009 from http://seekingalpha.com/article/100560-inflation-adjusted-oil-prices-fall-on-strong-usd
As Oil Prices Rise… Prices of food and products produced from
petrochemicals will rise. People will necessary move down the food
chain. Food production may become more localized. More land will be used to produce renewable
biomass crops. Air travel and air freight may decline. Re-urbanization
Case Study: U.S. Oil Supplies The U.S. – the world’s largest oil user –
has only 2.9% of the world’s proven oil reserves.
U.S oil production peaked in 1974 (halfway production point).
About 60% of U.S oil imports go through refineries in hurricane-prone regions of the Gulf Coast.
Alaskan Oil Pipeline
Carries 2 million barrels a day of crude oil from the Prudhoe Bay oil field 789 miles south to Southern Alaska to be loaded onto tankers destined for refineries. Represents 25% of the U.S. crude oil reserves.
OIL Burning oil for
transportation accounts for 43% of global CO2 emissions.
Figure 16-7Figure 16-7
CO2 Emissions
CO2 emissions per unit of energy produced for various energy resources.
Figure 16-8Figure 16-8
Heavy Oils Heavy and tarlike oils from oil sand and oil
shale could supplement conventional oil, but there are environmental problems.High sulfur content.Extracting and processing produces:
○ Toxic sludge○ Uses and contaminates larges volumes of water○ Requires large inputs of natural gas which
reduces net energy yield.○ Deforestation
Oil Sands Bitumen can be extracted Athabascan Oil Sands
deposits equal in area to U.S. states of MD and VA.
Supply 1/5 of Canadian energy needs.
Production costs high ($13/barrel vs. $1-2 for conventional production.
1.8 mt of oil sand = 1 barrel of oil.
China invested heavily.
Canadian Oil Sand Pit Mine
Athabascan River Surface Water Allocations
Oil Shales
Oil shales contain a solid combustible mixture of hydrocarbons called kerogen.
Figure 16-9Figure 16-9
Figure 16-10Figure 16-10
When Does the Oil Party End?
NATURAL GAS Natural gas consists mostly of methane and
other gaseous hydrocarbons.Conventional natural gas
○ found above reservoirs of crude oil.○ When a natural gas-field is tapped, gasses are
liquefied and removed as liquefied petroleum gas (LPG).
Unconventional natural gas○ Coal bed methane gas○ Methane hydrate
bubbles of methane trapped in ice crystals deep under the arctic permafrost and beneath deep-ocean sediments
Natu
ral G
as
Pro
cess
ing
Natural Gas Production
NATURAL GAS Some analysts see
natural gas as the best fuel to help us make the transition to improved energy efficiency and greater use of renewable energy.
Figure 16-11Figure 16-11
COAL
Coal is a solid fossil fuel that is formed in several stages as the buried remains of land plants that lived 300-400 million years ago.
Figure 16-12Figure 16-12
COAL
Most abundant fossil fuel Generates 62% of world’s electricity and is used to
make 75% of its steel Anthracite (98% carbon) is most desirable but
least common. Lower grades of coal have increasing traces of
sulfur, toxic mercury, and radioactive materials that are released upon burning.
Extraction by subsurface mining, area strip mining, contour strip mining, and mountaintop removal are environmentally damaging.
Fig. 16-13, p. 369
Waste heat
Coal bunker TurbineCooling tower
transfers waste heat to
atmosphere
Generator
Cooling loop
Stack
Pulverizing mill
Condenser Filter
Boiler
Toxic ash disposal
COAL
Coal reserves in the United States (27%), Russia (17%), and China (13%) could last hundreds to over a thousand years.In 2005, China and
the U.S. accounted for 53% of the global coal consumption.
COAL Coal is the most
abundant fossil fuel, but compared to oil and natural gas it is not as versatile, has a high environmental impact, and releases much more CO2 into the troposphere.
Figure 16-14Figure 16-14
COAL Synfuels
Coal can be converted into synthetic natural gas (SNG or syngas) and liquid fuels (such as methanol or synthetic gasoline) that burn cleaner than coal.Requires mining 50% more coalCosts are high.Burning them adds more CO2 to the
troposphere than burning coal.
COAL
Since CO2 is not regulated as an air pollutant and costs are high, U.S. coal-burning plants are unlikely to invest in coal gasification.
Figure 16-15Figure 16-15
Clean Coal Technology
Multiple technologies aimed at cleaning coal and containing its emissions
• Coal washing• Wet scrubbers (flue gas desulfurization systems)
• Low-NOx burners
• Electrostatic precipitators• Oxy-fuel combustion
• Pre-combustion capture
Clean Coal Technology Regardless of method, the CO2 must be sequestered – either in a
commercially viable product or stored deep underground or in the oceans.
1. CO2 pumped into disused coal fields displaces methane which can be used as fuel2. CO2 can be pumped into and stored safely in saline aquifers3. CO2 pumped into oil fields helps maintain pressure, making extraction easier
NUCLEAR ENERGY
When isotopes of uranium and plutonium undergo controlled nuclear fission, the resulting heat produces steam that spins turbines to generate electricity.The uranium oxide consists of about 97%
nonfissionable uranium-238 and 3% fissionable uranium-235.
The concentration of uranium-235 is increased through an enrichment process.
Fig. 16-16, p. 372
Small amounts of radioactive gases
Uranium fuel input (reactor core)
Control rodsContainment shell
Heat exchanger
Steam Turbine Generator
Waste heat
Electric power
Hot coolant
Useful energy 25%–30%Hot
water outputPumpPump
Coolant Pump Pump
Moderator
Cool water input
Waste heat
Shielding Pressure vessel
Coolant passage
Water CondenserPeriodic removal and storage of radioactive wastes and spent fuel assemblies
Periodic removal and storage of radioactive liquid wastes
Water source (river, lake, ocean)
NUCLEAR ENERGY After three or four
years in a reactor, spent fuel rods are removed and stored in a deep pool of water contained in a steel-lined concrete container.
Figure 16-17Figure 16-17
NUCLEAR ENERGY
After spent fuel rods are cooled considerably, they are sometimes moved to dry-storage containers made of steel or concrete.
Figure 16-17Figure 16-17
Fig. 16-18, p. 373
Decommissioning of reactorFuel assemblies
ReactorEnrichment of UF6 Fuel fabricationFuel fabrication
(conversion of enriched UF(conversion of enriched UF66
to UOto UO22 and fabrication of and fabrication of
fuel assemblies)fuel assemblies) Temporary storage of Temporary storage of spent fuel assemblies spent fuel assemblies underwater or in dry underwater or in dry caskscasks
Conversion of U3O8 to UF6
Uranium-235 as UFUranium-235 as UF66
Plutonium-239 as PuOPlutonium-239 as PuO22
Spent fuel Spent fuel reprocessingreprocessing
Low-level radiation Low-level radiation with long half-lifewith long half-life
Geologic disposal of moderate &
high-level radioactive
wastesOpen fuel cycle today
“Closed” end fuel cycle
What Happened to Nuclear Power? After more than 50 years of
development and enormous government subsidies, nuclear power has not lived up to its promise because:Multi billion-dollar construction costs.Higher operation costs and more
malfunctions than expected.Poor management.Public concerns about safety and stricter
government safety regulations.
Case Study: The Chernobyl Nuclear Power Plant Accident The world’s worst nuclear
power plant accident occurred in 1986 in Ukraine.
The disaster was caused by poor reactor design and human error. Resulted in an 18-mile (30 km)
Exclusion Zone By 2005, 56 people had died
from radiation related illnesses. 4,000 more are expected from
thyroid cancer and leukemia. Over 600,000 clean up workers
exposed to some elevated levels of radiation.
U.S. Nuclear Regulatory Commission
NUCLEAR ENERGY In 1995, the World
Bank said nuclear power is too costly and risky.
In 2006, it was found that several U.S. reactors were leaking radioactive tritium into groundwater.
Figure 16-19Figure 16-19
NUCLEAR ENERGY A 1,000 megawatt
nuclear plant is refueled once a year, whereas a coal plant requires 80 rail cars a day.
Figure 16-20Figure 16-20
NUCLEAR ENERGY
Terrorists could attack nuclear power plants, especially poorly protected pools and casks that store spent nuclear fuel rods.
Terrorists could wrap explosives around small amounts of radioactive materials that are fairly easy to get, detonate such bombs, and contaminate large areas for decades.
NUCLEAR ENERGY When a nuclear reactor reaches the end
of its useful life, its highly radioactive materials must be kept from reaching the environment for thousands of years.
At least 228 large commercial reactors worldwide (20 in the U.S.) are scheduled for retirement by 2012.Many reactors are applying to extent their
40-year license to 60 years.Aging reactors are subject to embrittlement
and corrosion.
NUCLEAR ENERGY
Building more nuclear power plants will not lessen dependence on imported oil and will not reduce CO2 emissions as much as other alternatives.The nuclear fuel cycle contributes to CO2
emissions.Wind turbines, solar cells, geothermal
energy, and hydrogen contributes much less to CO2 emissions.
NUCLEAR ENERGY Scientists disagree about the best methods for
long-term storage of high-level radioactive waste:Bury it deep underground.Shoot it into space.Bury it in the Antarctic ice sheet.Bury it in the deep-ocean floor that is geologically
stable.Change it into harmless or less harmful isotopes.
New and Safer Reactors
Pebble bed modular reactor (PBMR) are smaller reactors that minimize the chances of runaway chain reactions.
Figure 16-21Figure 16-21
Fig. 16-21, p. 380
Each pebble contains about 10,000 uranium dioxide particles the size of a pencil point.
Pebble detailSilicon carbide
Pyrolytic carbon
Porous buffer
Uranium dioxide
Graphite shell Helium
TurbineGenerator
Pebble
Core Hot water output
RecuperatorReactor vessel Water
cooler
Cool water input
New and Safer Reactors Some oppose the pebble reactor due
to :A crack in the reactor could release
radioactivity.The design has been rejected by UK and
Germany for safety reasons.Lack of containment shell would make it
easier for terrorists to blow it up or steal radioactive material.
Creates higher amount of nuclear waste and increases waste storage expenses.
NUCLEAR ENERGY Nuclear fusion is a nuclear change in
which two isotopes are forced together.No risk of meltdown or radioactive releases.May also be used to breakdown toxic
material.Still in laboratory stages.
There is a disagreement over whether to phase out nuclear power or keep this option open in case other alternatives do not pan out.
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<http://randsco.com/index.php/2006/02/05/Roaring_Dinosaurs-Prosperous_Alberta>. Anthracite coal. Digital image. Coal Camp Memories Curriculum. 30 Mar. 2009
<www.coalcampmemories.com/uses.html>.
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