Published on January 23, 2008
Oil and Natural GasResources: Oil and Natural Gas Resources Fossil Fuels: Fossil Fuels Formed 50 million to 350 million years ago from plants and animals. Fuels Petroleum Natural Gas Coal Shale Oil Tar Sands US Energy Consumption (QBtu): US Energy Consumption (QBtu) Petroleum 38 (39%) Natural Gas 23 (24%) Oil and Natural Gas: Oil and Natural Gas Oil : Oil Hydrocarbon chains CH2-CH2-CH2----- Combustion 2CH2 + 3O2 2CO2 + 2H2O Natural Gas: Natural Gas Primarily Methane CH4 Combustion CH4 + 2O2 2H2O + CO2 Oil: Oil Crude oil is measured in barrels. A 42-U.S. gallon barrel of crude oil provides slightly more than 44 gallons of petroleum products. Oil Refinery: Oil Refinery After crude oil is removed from the ground, it is sent to a refinery The crude oil is separated into useable petroleum products. Oil Refinery: Oil Refinery A 42-U.S. gallon barrel of crude oil provides slightly more than 44 gallons of petroleum products. One barrel of crude oil, when refined, produces 20 gallons of finished motor gasoline. Example Problem: Example Problem US annual oil consumption equals 7.2 Gbo. Express this value in millions of barrels per day. US Oil consumption = 7.2x109 bbl/ 365 days = 20 million bbl/day (11 million bbl day imported) Gasoline Prices: Gasoline Prices Gasoline Prices: Gasoline Prices When you buy a gallon of gas at $2.30. $1.27 for crude oil (>100% increase) $0.42 for refining (>100% increase) $0.18 for distribution $0.44 for taxes $$ producers & refiners EIA: http://tonto.eia.doe.gov/oog/info/gdu/gasdiesel.asp US Gasoline Prices: US Gasoline Prices http://www.eia.doe.gov/emeu/steo/pub/fsheets/petroleumprices.xls Natural Gas: Natural Gas Natural gas prices have fluctuated because of variable supply. New pipelines and LNG terminals may solve some of this problem Reserves and Resources: Reserves and Resources Reserves are known sources that are extractable with current technologies at current prices. Resources include sources not currently being exploited because of cost and sources not yet discovered. Oil and Gas Units: Oil and Gas Units Gbo billion barrels of oil. G stands for Giga. Used for global and US oil resources TCF trillion cubic feet. Used for global and US natural gas resources. Global Oil and Gas Reserves, Resources, Consumption: Global Oil and Gas Reserves, Resources, Consumption Oil Reserves 1,000 Gbo Resources 1,700 Gbo Consumption 28 Gbo Natural Gas Reserves 5,500 TCF Resources 10,000 TCF Consumption 90 TCF US Oil and Gas Reserves, Resources, Consumption: US Oil and Gas Reserves, Resources, Consumption Oil Reserves 22 Gbo Resources 98 Gbo Consumption 7.2 Gbo Natural Gas Reserves 180 TCF Resources 710 TCF Consumption 23 TCF Global Oil Resources: Global Oil Resources Saudi Arabia 26% Iraq 11% Iran 10% Kuwait 10% UAE 6% Russia 5% Venezuela 5% Nigeria 3% Libya 3% China 3% Mexico 2% United States 2% Global Oil Production: Global Oil Production Saudi Arabia 12% United States 11% Russia 10% Iran 5% Mexico 5% Norway 5% China 4% Venezuela 4% Canada 4% Global Natural Gas Resources: Global Natural Gas Resources Russia 29% Iran 16% Qatar 13% Saudi Arabia 4% UAE 3% United States 3% Algeria 3% Nigeria 3% Venezuela 3% Iraq 2% Global Natural Gas Production: Global Natural Gas Production Russia 23% United States 22% Canada 7% United Kingdom 4% Algeria 3% Netherlands 3% Indonesia 3% Liquefied natural gas (LNG): Liquefied natural gas (LNG) Natural gas (primarily methane) that has been liquefied by reducing its temperature to -260 degrees Fahrenheit at atmospheric pressure. LI Sound Facility: LI Sound Facility Shell Oil and TransCanada Corporation are applying for a permit to construct an offshore liquefied natural gas (LNG) facility, named Broadwater Energy, in the New York State waters of Long Island Sound. (Fig for Dominion) When will worldwide conventional oil production peak?: When will worldwide conventional oil production peak? US Production Peaked in 1970: US Production Peaked in 1970 Campbell-Laherrère World Oil Production Estimates, 1930-2050: Campbell-Laherrère World Oil Production Estimates, 1930-2050 Campbell Production Peak 2004 Published Estimates of World Oil Ultimate Recovery: 0 0.5 1 1.5 2 2.5 3 3.5 4 Trillions of Barrels USGS 5% 2000 USGS Mean 2000 USGS 95% 2000 Campbell 1995 Masters 1994 Campbell 1992 Bookout 1989 Masters 1987 Martin 1984 Nehring 1982 Halbouty 1981 Meyerhoff 1979 Nehring 1978 Nelson 1977 Folinsbee 1976 Adams & Kirby 1975 Linden 1973 Moody 1972 Moody 1970 Shell 1968 Weeks 1959 MacNaughton 1953 Weeks 1948 Pratt 1942 Source: USGS and Colin Campbell Published Estimates of World Oil Ultimate Recovery Slide29: Different Interpretations of a Hypothetical 6,000 Billion Barrel World Original Oil-in-Place Resource Base 0 1,000 2,000 3,000 4,000 5,000 6,000 USGS Approach 1995 Campbell/Laherrere Approach Unrecoverable Reserves Growth Undiscovered Proved Reserves Cumulative Production 3,000 Billion Unrecovered 4,200 Billion Unrecovered 50% Recovery Factor with Reserves Growth 30% Recovery Factor 40% Recovery Factor Without Reserves Growth Reserves Growth Adds 10% Billion Barrels When will Global Oil Production Peak?: When will Global Oil Production Peak? Difficult to predict. Depends on geology and economics. Most analysts believe sometime between 2004 and 2020.