Friday, May 26, 2017


I'm Dr. Sam Shelton. I've been a Professor at Georgia Tech for
about 35 years in the energy arena, carrying out research, and then teaching
at the undergraduate and graduate levels. So my professional life has been
embedded in the energy picture. Energy is intertwined in every
aspect of our social lives, and our business lives, and our economy. Energy is key to our comfort and our convenience that we experience,
particularly here in the US. We use energy for our transportation
needs to move around as individuals, as well as to transport our goods. We use energy for manufacturing
the products that we like to buy. We depend on energy to
keep our buildings warm. We depend on energy to keep
them cool in the summer time. And we depend on energy to
provide lighting in our homes, to power our computers, to charge
our cell phones, run our TV's, ect. And in this course we'll
look at all those ways and how those energies needs and consumption, how that changes our lives and improves
our lives and raises the quality of life. But if we raise our quality of life
with these increased energy supplies and needs, then we will also
increase our energy needs. So, we'll look at the coupling
between our economy and the amount of energy that we utilize. But we can't create this
energy out of thin air. We have to go find it
somewhere in a natural form. So we find it in the form of fossil fuels,
coal, natural gas, and oil. We find it in the form of nuclear energy. We find it in the form of renewable

energy, and solar energy, and wind energy. Once we find these forms of energy, we have to transport and convert them to a form that we
want them and can utilize them. We have to have refineries, we have to
have fueling stations, for instance, to distribute the gasoline and

fuel for our cars. We have to have to have an automobile
infrastructure, an engine infrastructure to utilize the fuel to power our cars and
to power our trucks. We have to have electric
power plants as fuel and by the various needs in order
to convert our oil, gas, coal, nuclear, solar,
wind energy into electricity. This energy infrastructure is
a huge trillions of dollar infrastructure that has
taken centuries to build. But in this discussion and in this course,
we will look at where we are now and how we can get to a different
place in the future. When we look at this we'll
always maintain the big picture. We'll look at the details but we'll always
connect the dots and the big picture and understand how perturbations that go
on for instance, in the Middle East. How that influences us when we go to the
filling station to fill up our cars and why it affects us. There are no prerequisites for
this course. You don't have to have an engineering
degree, or a physics degree, or an economics degree, in order to
understand and enter into this discussion. So we hope you'll join the discussion,
we'll hope you join in on the forums, and learn something from it. And look forward to being with you,
thank you.

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Money and happiness
Nov 25th 2010, 14:45 BY THE ECONOMIST ONLINE



259This page has been shared 259 times. View these Tweets.
Measured a different way, the correlation between money and happiness is surprisingly strong
DISMAL scientists who look at happiness often contend that, beyond a GDP per capita of just $15,000 (measured at purchasing-power parity), money does not buy happiness. Up to that point the correlation between the two is strong, but thereafter it falls away. If this is true then some heretical conclusions follow: rich America is no happier than poorer Brazil, so what is the point in people who live in rich countries working harder to get ever richer? Politicians should concentrate on maximising the mental health of their voters, rather than the size of their pay
cheques. But plot the data another way, on a logarithmic scale where each increment represents a 100% increase in income per head, and the relationship between wealth and happiness looks more robust.


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Home » Rocks » Sedimentary Rocks » Coal Coal
What Is Coal and How Does It Form? What is Coal?
Coal is an organic sedimentary rock that forms from the accumulation and preservation of plant materials, usually in a swamp environment. Coal is a combustible rock and along with oil and natural gas it is one of the three most
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important fossil fuels. Coal has a wide range of uses; the most important use is for the generation of electricity.
How Does Coal Form?
Coal forms from the accumulation of plant debris, usually in a swamp environment. When plant debris dies and falls into the swamp the standing water of the swamp protects it from decay. Swamp waters are usually deficient in oxygen, which would react with the plant debris and cause it to decay. This lack of oxygen allows the plant debris to persist. In addition, insects and other organisms that might consume the plant debris on land do not survive well under water in an oxygen deficient environment.

Coal Through a Microscope
To form the thick layer of plant debris required to produce a coal seam the rate of plant debris accumulation must be greater than the rate of decay. Once a thick layer of plant debris is formed it must be buried by sediments such as mud or sand. These are typically washed into the swamp by a flooding river. The weight of these materials compacts the plant debris and aids in its transformation into coal. About ten feet of plant debris will compact into just one foot of coal.
Plant debris accumulates very slowly. So, accumulating ten feet of plant debris will take a long time. The fifty feet of plant debris needed to make a five-foot thick coal seam would require thousands of years to accumulate. During that long time the water level of the swamp must remain stable. If the water becomes too deep the plants of the swamp will drown and if the water cover is not maintained the plant debris will decay. To form a coal seam the ideal conditions of perfect water depth must be maintained for a very long time.
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How Do Diamonds Form?
If you are an astute reader you are probably wondering: "How can fifty feet of plant debris accumulate in water that is only a few feet deep?" The answer to that question is the primary reason that the formation of a coal seam is a highly unusual occurrence. It can only occur under one of two conditions: 1) a rising water level that perfectly keeps pace with the rate of plant debris accumulation; or, 2) a subsiding landscape that perfectly keeps pace with the rate of plant debris accumulation. Most coal seams are thought to have formed under condition #2 in a delta environment. On a delta large amounts of river sediments are being deposited on a small area of Earth's crust and the weight of those sediments causes the subsidence.
For a coal seam to form perfect conditions of plant debris accumulation and perfect conditions of subsidence must occur on a landscape that maintains this perfect balance for a very long time. It is very easy to understand why the conditions for forming coal has occurred only a small number of times throughout Earth's history. The formation of a coal requires the coincidence of highly improbable events.
What is Coal "Rank"?

Rock & Mineral Kits: Get a rock, mineral or fossil kit to learn more about earth materials.
Plant debris is a fragile material compared to the mineral materials that make up other rocks. As plant debris is exposed to the heat and pressure of burial it changes in composition and properties. The "rank" of a coal is a measure of how much change has occurred. Sometimes the term "organic metamorphism" is used for this change.
Based upon composition and properties coals are assigned to a rank progression that corresponds to their level of organic metamorphism. The basic rank progression is summarized in the table below:
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(From Lowest to Highest)
Properties Peat
A mass of recently accumulated to partially carbonized plant debris. Peat is an organic sediment. Burial, compaction and coalification will transform it into coal, a rock. It has a carbon content of less than 60% on a dry ash-free basis.
Lignite is the lowest rank of coal. It is a peat that has been transformed into a rock and that rock is a brown-black coal. Lignite sometimes contains recognizable plant structures. By definition it has a heating value of less than 8300 British Thermal Units per pound on a mineral matter free basis. It has a carbon content of between 60 and 70% on a dry ash-free basis. In Europe, Australia and the UK some low- level lignites are called "brown coal".
Sub Bituminous
Sub bituminous coal is a lignite that has been subjected to an increased level of organic metamorphism. This metamorphism has driven off some of the oxygen and hydrogen in the coal. That loss produces coal with a higher carbon content (71 to 77% on a dry ash-free basis). Sub bituminous coal has a heating value between 8300 and 13000 British Thermal Units per pound on a mineral matter free basis. On the basis of heating value it is subdivided into sub bituminous A, sub bituminous B and sub bituminous C ranks.
Bituminous is the most abundant rank of coal. It accounts for about 50% of the coal produced in the United States. Bituminous coal is formed when a sub bituminous coal is subjected to increased levels of organic metamorphism. It has a carbon content of between 77 and 87% on a dry ash-free basis and a heating value that is much higher than lignite or sub bituminous coal. On the basis of volatile content, bituminous coals are subdivided into low volatile bituminous, medium volatile bituminous and high volatile bituminous. Bituminous coal is often referred to as "soft coal," however this designation is a layman's term and has little to do with the hardness of the rock.
Anthracite is the highest rank of coal. It has a carbon content of over 87% on a dry ash-free basis. Anthracite coal generally has the highest heating value per ton on a mineral matter free basis. It is often subdivided into semi-anthracite, anthracite and meta-anthracite on the basis of carbon content. Anthracite is often referred to as "hard coal"; however this is a layman's term and has little to do with the hardness of the rock.
What are the Uses of Coal?
Electricity production is the primary use of coal in the United States. Most of the coal mined in the United States is transported to a power plant, crushed to a very small particle size and burned. Heat from the burning coal is used to produce
steam, which turns a generator to produce electricity. Most of the electricity consumed in the United States is made by burning coal.
Coal has many other uses. It is used as a source of heat for manufacturing processes. For example, bricks and cement are produced in kilns heated by the combustion of a jet of powdered coal. Coal is also used as a power source for factories. There it is used to heat steam and the steam is used to drive mechanical devices. A few decades ago most coal was used for space heating. Some coal is still used that way but other fuels and coal-produced electricity are now used instead.
Coke production remains an important use of coal. Coke is produced by heating coal under controlled conditions in the absence of air. This drives off some of the volatile materials and concentrates the carbon content. Coke is then used as a high carbon fuel for metal processing and other uses where an especially hot-burning flame is needed.
Coal is also used in manufacturing. If coal is heated the gases, tars and residues produced can be used in a number of manufacturing processes. Plastics, roofing, linoleum, synthetic rubber, insecticides, paint products, medicines, solvents and synthetic fibers all include some coal-derived compounds. Coal can also be converted into liquid and gaseous fuels; however, these uses of coal are mainly experimental and done on a small scale.
Contributor: Hobart King
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Bituminous Coal: Bituminous coal is typically a banded sedimentary rock. In this photo you can see bright and dull bands of coal material oriented horizontally across the specimen. The bright bands are well preserved woody material, such as branches or stems. The dull bands can contain: mineral material washed into the swamp by streams, charcoal produced by fires in the swamp, or degraded plant materials. This specimen is approximately three inches across (7.5 centimeters). Photo by the West Virginia Geological and Economic Survey.

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Coal-Forming Environments: A generalized diagram of a swamp, showing how water depth, preservation conditions, plant types and plant productivity can vary in different parts of the swamp. These variations will yield different types of coal. Illustration by the West Virginia Geological and Economic Survey.

Peat: A mass of recently accumulated to partially carbonized plant debris. This material is on its way to becoming coal but its plant debris source is still easily recognizable.

Lignite: The lowest rank of coal is "lignite". It is peat that has been compressed, dewatered and lithified into a rock. It often contains recognizable plant structures.

Anthracite Coal: Anthracite is the highest rank of coal. It has a bright luster and breaks with a semi-conchoidal fracture.

Coal-Fired Power Plant: Photo of a power plant where coal is burned to produce electricity. The three large stacks are cooling towers where water used in the electricity generation process is cooled before reuse or release to the environment. The emission streaming from the right-most stack is water vapor. The combustion products from burning the coal are released into the tall, thin stack on the right. Within that stack are a variety of chemical sorbents to absorb polluting gases produced during the combustion process. Image copyright by iStockphoto and Michael Utech.

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The Coming Oil Boom
AUG. 9, 2012
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NEW YORK — Forget America’s fiscal cliff, Europe’s currency troubles or the emerging-markets slowdown. The most important story in the global economy today may well be some good news that isn’t yet making as many headlines — the coming surge in oil production around the world.
Until very recently, our collective assumption was that oil was running out. That was partly a matter of what seemed like geological common sense. It took millions of years for the earth to crush plankton into fossil fuels; it is logical to think that it would take millions of years to create more. The rise of the emerging markets, with their energy-hungry billions, was a further reason it seemed obvious we would have less oil and gas in 2020 than we do today.

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Obvious — but wrong. Thanks in part to technologies like horizontal drilling and hydraulic fracking, we are entering a new age of abundant oil. As the energy expert Leonardo Maugeri contends in a recent report published by the Belfer Center at the John F. Kennedy School of Government at Harvard, “contrary to what most people believe, oil supply capacity is growing worldwide at such an unprecedented level that it might outpace consumption.”
Mr. Maugeri, a research fellow at the Belfer Center and a former oil industry executive, bases that assertion on a field-by-field analysis of most of the major oil exploration and development projects in the world. He concludes that “by 2020, the world’s oil production capacity could be more than 110 million barrels per day, an increase
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of almost 20 percent.” Four countries will lead the coming oil boom:
Iraq, the United States, Canada and Brazil.
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Much of the “new” oil is coming on-stream thanks to a technology revolution that has put hard-to-extract deposits within reach: Canada’s oil sands, the United States’ shale oil, Brazil’s presalt oil. “The extraction technologies are not new,” Mr. Maugeri explains in the report, “but the combination of technologies used to exploit shale and tight oils has evolved. The technology can also be used to reopen and recover more oil from conventional, established oilfields.”
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Mr. Maugeri thinks the tipping point will be 2015. Until then, the oil market will be “highly volatile” and “prone to extreme movements in opposite directions.” But after 2015, Mr. Maugeri predicts a “glut of oil,” which could lead to a fall, or even a “collapse,” in prices.
At a time when the global meme is of America’s inevitable economic decline, the surge in oil supply capacity is an important contrarian indicator. Mr. Maugeri calculates that the United States “could conceivably produce up to 65 percent of its oil consumption needs domestically.” That national energy boom is already providing a powerful economic stimulus in some parts of the country — just look at North Dakota. Crucially, at a time when one of the biggest social and political problems in the United States is the disappearance of well-paid blue-collar work, particularly for men, oil patch jobs fill that void.
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What Mr. Maugeri dubs the next oil revolution also has tremendous geopolitical implications. One way to understand the battlegrounds of our young century is through the pipelines that flow beneath them. The coming surge in oil production, particularly from North America, will transform that geopolitical equation.
Equally significant is the impact of oil on the most important human problem of our times: protecting the environment. The sources of oil that will fuel the coming boom are harder to reach than the supplies of the 20th century, and the technologies required to extract them are more invasive. That will be one fault line in what is sure to be the escalating battle between environmentalists and the oil industry.
The implications for the climate change debate are even more fraught. Until now, the arithmetic of oil supply and the agenda of environmentalists conveniently dovetailed. Since we were running out of oil anyway, environmentally motivated efforts to limit fossil fuel consumption and increase our use of renewable energy boasted the additional virtue of being inevitable. In an age of abundant oil, those economically utilitarian arguments lose their power.
For environmentalists, and for the liberal political parties with which they are usually aligned, that poses a serious challenge. The temptation will be to oppose new oil production projects indiscriminately. That instinct could be politically dangerous.
Political progress in combating climate change has been slow, but the battle for hearts and minds, especially of the younger generation, is being won. That political capital can be lost in an instant if the environmental movement allows itself to be equated with opposition to one of the lone sources of growth — and of good blue-collar jobs — at a time of global economic stagnation.
A final conclusion to draw from the next oil revolution is a little more existential. This is yet another reminder that what both common sense and expert consensus assure us to be true very often isn’t. It was obvious that efficient markets worked and financial deregulation would stimulate economic growth, until the financial crisis and the subsequent international economic recession. It was equally apparent that we were running out of oil — until we weren’t. Chrystia Freeland is global editor at large at Reuters.
Hello energy so let's take a big picture
overview of what this course is about, and what topics were going to cover,
and why we need to look at them. So energy in the news we
see what the headlines about the wildly fluctuating oil prices,
oil doubling, going up to $150, particularly in
2008 before the economy collapsed. In fact,
we'll look at some of the coupling between the fact that the economy collapsed
because the energy cost was, oil cost in particular was putting
such a burden on our economy. We'll look at the Middle East geopolitical
chaos and how that impacts us. How much oil do we get
out of the Middle East? How does that impact it,
and impact us, and how does that impact the cost of our oil? We hear that OPEC,
as strong as they have been in the past, that they're now irrelevant. We'll see about how
relevant that statement is. We'll look at the US energy independence. We hear a lot about we need to be independent in energy from other countries in dependence. However in 2014 we're importing about 40% of the oil. Are we heading in the right direction? Because we were importing as much as 65% of our oil from other countries. And we'll look at emissions, and
for instance, electric cars. Do they really have zero emissions? Most of the electric cars have an emblem
on them that says zero emissions. We'll look at the environmental
impacts on things, and look at some of those statements. The impact of the dollars flowing out
of the US because of imported oil, we look at the importance of that and
look at the facts regarding that. National security, as I mentioned,
the national security issue, of course, is important, because if we're importing
a lot of oil from a particular set of countries and they decide to embargo
us as the OPEC did back in the 70s, it places us in a very difficult position. What about oil and gas resource depletion? We hear that we're running out of oil,
we're running out of gas, but then we develop fracking and that seems to say
hey we got an infinite supply oil and gas, and we'll have it as long
as we want it ad infinitum. We'll look at the laws of geology,
and what they say to that question. And we'll look at the new

energy technologies. I mentioned fracking, and
how that's impact us. We'll look at the developing solar
technologies, and the cost of that. That has dropped recently, making
that much more favorable than it was. We'll look at the impact of using
our energy more efficiently and what the economics of that is. And essentially all of
the environmental issues stem from energy consumption,
whether it's air pollution, ground pollution,
climate change, or water issues. They all are energy-related. If we could solve our energy question and
energy problems, we would clean up the environment, and not have to talk
about environmental issues anymore. So in a nutshell,
let's look at course topics. The topics that we'll cover is energy and
society, and the coupling between our society and
how we live and the energy we use. Energy in the economy. How the energy sector impacts our economy, how much it hurts us,
how much it helps us. We'll look at the sources of energy. Where are we getting energy from? Are we getting most of it from coal or are
we getting most of it from imported oil? Are we getting a lot of it from solar or
wind or nuclear and what's the trend on where
we're getting our energy sources? We'll look at how much, as I already

mentioned how much energy we're importing. And, energy is not all created equal,
we'll find out, by the way. Oil is not equal to natural gas. There are many differences there. We can't replace oil consumption
tomorrow with natural gas, for instance. We'll look at the pricing of energy,
how the price is determined, who determines it,
what the mechanism's for determining it. And we'll look at the new
renewable energy sources. What are those resources and
how effectively can we capture them and converted them into the forms
that we want to use it. We'll look at the physical laws of energy. There's limitations in thermodynamics regarding the laws of how to convert energy
from one form to another form. For instance, a barrel of oil sitting
at home won't light the lights. It won't heat it,
it won't air condition it. We've gotta have a conversion system
to convert the energy in the form, we get it out of the earth or the wind or the solar into the from that we wanted to drive our computers, to light out lights, to keep our house

warm in the winter, or cool in the summer. We'll look at the electric power technologies, a lot of our energy that we use
is in the form of electricity. It's one of the most versatile
forms of energy that we have. And we'll look at those technologies and the trends that is taking place there and

how that's changing the landscape. Transportation technology. We're getting more and
more efficient automobiles by 2025 the rules are in place to mandate
that the average car that is produced by any manufacturer
has to get 55 miles per gallon. That sounds like a very high goal, but we'll look at how attainable that is. We'll look at the energy efficiency and

what that can do for us. Just using the energy and doing the things that we do with energy in a more efficient manner. So those are the topics
that we'll be covering. So some of the conclusions that
we'll reach in this course that you might find interesting and

to follow, is that we'll see how energy is
tightly coupled to our economy. And I'll just leave it there,
that there's a very tight coupling between improving the economy and increasing
the amount of energy that we consume. National Security,
we're pretty much familiar with that. And how dependence on other countries for our oil in particular puts us in
a difficult position many times. We'll learn some unusual things or surprising things that you may not recognize at this point. And but one is the fact that wind energy,
solar energy, and nuclear energy do not save any oil. You may find that surprising, but
in fact, it's just the fact that putting in more wind energy, more solar
energy, more nuclear energy to generate electricity does not save any oil,
which is our critical energy source. Electric cars we'll find do not
significantly reduce CO2 emissions, in spite of the fact that many of them
have the zero emissions badge on the back, not today. Theoretically it's possible but
that's a hypothetical, and if we want to do that then we need to plan
to get to the point where electric cars do have much lower emissions than
our gasoline powered cars. Which are on target to reach
55 miles a gallon in 2025. And the last thing that you
hear about most things And that is there's no silver bullet
solution to our energy issues. So look forward to being with you and
covering this material and hope you enjoy it. Thank you.


Back to Energy 101 with Dr. Sam Shelton. And today we're talking about energy and the economy. Last time, we talked about energy use in
our society. That is the tail that wags the dog. And we're looking, continuing to look at

that interaction of energy and society. And we're looking at how energy impacts the economy or vice-versa today.
So here's a curve that shows the correlation between the change in gross domestic product. Use excuse me, gu, gross domestic product

and energy use. So, along the horizontal axis, we have
year to year data, from 2000 out to 2010. And wha, you see that the red line is the
change from the previous year of our energy use
in the US. And the re, re, and the blue line is the
change in our economy. Another measure by the gross domestic
product. So, for instance, going from 2000 to 2001, we see that energy, that the gross
domestic product went down in its growth rate.
Went down from a 4% increase in the previous year, from the previous year,
down to 1.5% in the previous year. And when the gross domestic product declined, and its growth declined
actually. Then, the, the gross domestic product
declined, and the energy use declined. So, we see they decline together, not
exactly the same percent each, sometimes it's higher,
sometimes it's lower. In 2001, the rate of which both the energy use and the gross domestic product
went up. From 1.5 to 0.5% on the 2001, out to in
2004 it went to around, between 5 to 4% a year.
And, they went up together, when the gross domestic product went up,
it drove energy use up. And then, as it started declining then,
and looking all the way to the right, with the recession that hit us
in 2008, we see that the last year, and 2000, and shown in
2009, that when the gross domestic product declined 2%
then the, from the previous year.
The energy consumption declined by 1%. So there's definitely a correlation
between the economic growth, or lack thereof, and the energy we

use. So it's, it's, we're, and we're kind of
locked in to the concept. That we need to grow the economy on a
continuing basis. And what that means, looking at this
correlation, it means that we need to look at growing energy use, because the two are
distinctly correlated. Maybe not on a one to one basis, but very
close to a one to one basis. Between the energy and the economy. When the energy demand goes down, the
price of energy goes down a little bit. Not much.
And it depends on which one it is. But there's of course when the band of energy commodity

goes up or down, generally the price goes up or
down. So that's nothing new. But if we look here, at energy price. This is the dollar costs per barrel on the
vertical scale over here on the left. It goes from zero to 160. And on the horizontal scale we go from
1986 to 2012. And you see that the oil went to on an average that month, went to $130
a barrel, $135 a barrel, in 2008. And gasoline went to $5 a gallon and many

people believe that that is one of the things
that, that cause problems with mortgages, when people
are filling up their SUVs to go to work and costing them $100,
$150 dollars a month. They didn't have any money left over for,
to pay their mortgage. And, what's the choice, do you go to work
or do you pay your mortgage? How much of that was a factor, you can
debate and is debated by the economists. But there, there definitely was some
effect on the high cost of energy that we were paying and how much money that was sucking out of our economy to the fact that the economy collapsed due to many factors, one
of them being the high price of energy. And by the way, at that point in time
everybody in the world was producing as much oil as they could
produce trying to hold prices down. Everybody was. Saudi Arabia was, OPEC was, US was. Everybody was producing as much oil as we could
produce trying to supply more and more oil to bring the price down. And of course, by the way, when the
economy did collapse, then the price dropped all the way to $40
a barrel. There in 2009 after the economic collapse. So there's a, there's an impact there of

course, price and, and demand.
Developing countries improve that, want to
improve their standard of living means increased
energy consumption. Like, particularly we talk a lot about
India. And China. And those two countries won't improve
their standard of living. People in India and China has taken those
examples, have, have tasted what it means to have cars and to have transportation other than riding bicycles
all the time. And they want that kind of standard of
living that they know we live. And that means that they're using more and
more energy.

And, if, if you look, this is an
interesting plot. Here, when we look at the, again, the
connection between the economy and economic growth, and economic status of a
country, and the energy use. Here on the horizontal axis we see the
energy use per capita. Energy use per capita. And, we're not going to worry about units because it's, it doesn't make any
difference for, for the purposes that we're using it.
But it goes from zero out to eight. And you notice all the way on the right
hand side, the US is out there, and had, uses more energy per
capita than the any other country. On this plot. There are a few more countries. I don't believe any of them use more
energy per capita than we do. That are not plotted. And on the vertical scale you have the
gross domestic product per capita. Everything's on a per capita basis so the size of the country is, becomes factored
out. And we see that again the US is way up on
the height scale. We are not the highest. Some of the countries up around Norway and
Sweden are actually higher in gross domestic product
per capita than we are. A lot of people talk about quality of life
being measured by gross domestic product per
capita. And you can debate that again.
But that's, that's one measure of quality of life.
You see the Netherlands is out there as we come down from the right,
upper le upper right. There's Switzerland that's over there at
$35 in gross domestic per capita. And you come on down toward the bottom left you've got Bangladesh down there,
we've got India. I've labeled a few of them. We've got India down there, we've got
Colombia down there. China, Mexico, Poland, Spain, Greece as we
move on up the line. But again, it's just, it's one more way to
look at the linkage between the amount of
energy we use in society and the econ, economy of that
society. So that's looking at one other aspect of
interaction between society and energy use and that is with
the economy. Thank you.

Hello, I'm Sam Shelton. We're, doing a little
module here on Energy 101. And it's, and this is, this is,
this is titled Energy and Society. Now let's put that in perspective
regarding the energy flows in our society. It, we talked about the fact that
we have to find natural energy and convert it to a form that we want it then,
that we use to, use in society. So society is the tail that wags the dog. More energy we want,
the more natural energy we have to find, like coal, gas, wind, solar, etc. And the bigger the conversion systems, more conversion systems we
have to have to supply it. Today, we're going to talk about
the tail that wags the dog, the soc, the society's energy use. What do we use this energy for and how much of it that we use in each sector? The, we, we divide the energy use
up into three different sectors. One is building comfort and
actually, when we say, comfort here, that it's more than that. It's lighting and air and,
and computers and fans and everything that's
needed to drive the building. So, it's all energy that's used in
a building is under that first category. The second category are, is manufacturing. Manufacturing plants to
make goods use energy. [SOUND] And
the products themselves use energy, like polyethylene bags, plastic bags. Like fertilizers to put on our farm
lands to make the farm more productive. So we can move to the cities and move
off the farm, that we have to have to, to people working on the farm
to grow our food that we want. And the other, the third category that we
have in sector is we call transportation, which includes car transportation,
truck transportation airlines, trains, ships,
anything that transports goods.

Now how much does each
one of these sectors use? How mu, this is, this is again, remember
going back, this is the society use and the things that we want energy for
that drives how big the con, energy conversion system is and
how much in actual energy we, we need. So here's the percentages and it's not
too far off to say, each one of them, one of them uses about one-third of
our total energy use in society. Transportation is 28%. Buildings are 41% and
manufacturing is 31%. So, approximately 31 3, 33% of piece, building being a little larger transportation being a little bit smaller. So, it's a, a,
a nice split between those three. Nice even split. So what kind of energy and
what forms is it that these sectors use? Well, we won't heat. We won't heat to heat our buildings, our houses, our offices. We won't manufacturing energy in, in materials as well as to heat products to make it like glass. We won't heat for cooking. We won't heat for hot water, for
hot water showers and cleaning, et cetera. We want work energy. Work is what we use to rotate a shaft. So, if we want to rotate a shaft on
the rear wheels, for instance, on our automobile, then we have to have work
to drive that wheel to move the car or our bicycle or whatever it might
be from one point to the other and an electric power generation plant. Electric generators require rotating
shafts to, to turn them to produce power. So the electric power plant
uses converts all this energy that comes in the way of fuels into work
energy that then powers a generator. We went from pumping water. The largest energy user in our cities is generally pumps to pump our city water around for us to use. Appliances like dishwashers, clothes washers, clothes dryers, those kinds of appliances
also require work. So going on with the materials that we're
talking about are plastics, chemicals, fertilizers that I've mentioned that and
these, the materials themselves have, have energy contained in them,
have hydrocarbons in them generally. And they also require energy
to process them from whatever form the were mining
them out of the Earth. Cooling is air conditioning,
refrigeration. Refrigeration is a big one. That was actually one of
the first uses for energy. About the time of lighting,
that came in during the early 1900s and that is for food preservation. So we didn't have to go to the grocery store every day in, in, in order to refresh our
pantry to eat that night, because now we can buy it for

a week or a month at a time. Lighting as we already mentioned, home and office, highway is a big energy user of lighting. Security more and more, people are wanting
more lighting for security, etc. So these are the three sectors that we
use it in and, and we'll, we'll look at more detail about how we use them, but

this is the tail that wags the dog. And if we didn't want these
comforts in our society, we wouldn't have a problem
with any energy use. But unfortunately,
they improve our quote quality of life. And that can be defined in many, many ways and is defined differently

by different people. But generally, most of the definitions, you got to acquire the highest
quality of life, requires more energy. Next module, we're going to look
at the energy and the economy. The fact that the more energy we us the higher the gross domestic product goes or vice versa. The more economic prod,
productivity we have and higher gross domestic product,
the more energy we use. We'll look at that aspect next time. Thank you.


Hello, welcome back to Energy 101.
Today we're talking about energy sources that we use to supply the energy that we
want in our society. That we talked about last time. Society is the tail that wags the energy dog. And, society would like things to make life easier, and more comfortable and more productive. And, but the laws of nature are such that,
if we want energy, such as lighting and heating and cooling, we have
to find it somewhere in this natural form. So today, we're going to start on looking
at the source of the energy that we use to supply society's wants and needs
for to making life better.
And the first one that we'll talk about.
Well, the the, as we talk, as we mentioned last
time, the energy in buildings, energy manufacturing,
and energy in transportation. So, today we're talking about energy

sources, and where we get our energy from. The, first we're going to talk about hydrocarbon supplies. Fossil fuels. And, if you, they're the primary supplier
for our energy needs. And 20% of our total energy supplies come
from coal. 26% comes from oil. And 36% comes from natural gas.

Those are the three fossil fuels. They are hydrocarbons.
They got hydrogen and carbon in them.
And we'll see that in detail as we move forward.
But you see that the The other supplies that we use, that are non
fossil fuels, is nuclear. That is in the form of nuclear power
plants, and that supply is about 10% of our nuclear, of our total energy's uses in, in society, and

that's actually
energy form is coming from uranium. When we get to renewable we're, we have
biomass which is wood, corn ethanol, etc, things
that we grow. We have hydro en, hydro dams, that ele, we generate a lot of electricity from, hydro plants. We have wind energy.

That's our recent renewable energy form that's been rapidly developed. And then we have geothermal energy in
which we drill down in the earth and in some cases we can bring up hot water or
hot steam as a heat source. That we can use to drive our energy

systems. And solar is about 0.2% you can see you
hear a lot about solar. But it's actually considerably, makes a smaller contribution at this point than wind, and that's been because of
economics. But economics of solar is looking better

every year, and that number is growing rapidly as we'll
see later on. Here's the overall primary trend, for all these energy sources, that we're
utilizing. It's a very busy slide.
Let me just point out some details here. Number one, it, it looks at the energy
production. And production rather than consumption,
and I have a reason for that I'm showing production is it'll
become obvious later on. But this is the US energy production by
energy source that we use in this country to drive our
society. And it shows that from 1950, and that was
not, not long after World War Two, and we were a relatively undeveloped
nation from a economic viewpoint, compared to what we
are now. And our energy needs have grown
considerably. Here's how it has grown from 1950 to,
2012. You can see starting at the top, the blue
is natural gas. Natural gas was very low back here in
1950. And now, it, we're getting more energy
from natural gas than any other, looking at the most
recent data. coal, is has been, always been, not
always, but certainly in recent history. Has been the primary energy supplier, for
many years, and it's leveled off and has dropped. By the way, this drop in coal utilization, coal production right here is tied to the
recession. Which, we've seen is the economic impact. Of slower, the economy, means we use less energy. Here's crude oil, and again this is the
one that really becomes apparent that our that I'm showing energy
production in this case and not energy use. our, our oil production in this country
actually peaked in about 1970, notice. And it has declined generally over time
since then. And we now, down here where we, we brag a

lot about how much our oil production has increased which we see by
this blip down here on the bottom right. And on the right hand side. Because it has come up with, fracking, and, and other technologies that we have
developed. But, we are a long ways from producing as
much oil as we did back in 1970 when oil was about $2 a barrel in, in which is
about $8 a barrel in today's dollars. Nuclear has steadily risen along with as we put in more and more nuclear power plants, we made them
more reliable. And are able to run them more. Biomass, which I categorized before. You can see how it's grown, and then we, a lump of other renewables in there as a, as
a lump. One that we haven't talked about, but we
will get to and is important to show, and
that's NGPL. That stands for natural gas liquids.
Natural gas liquids. Natural gas petroleum liquids in this case
with a P is sometimes it's just NGLs, natural gas
liquids, or natural gas petroleum liquids. Those are liquids that come out with
natural gas, and they're things like propane,
butane, etc. But we'll talk about those more later and
it's important to seperate those and start seeing that that's
different than natural gas. So, that's the overall trend of our energy
use that how, where we're getting that energy
supply from. And it's a busy slide, but it's a lot of
information on there to see how things have changed over time in
our energy production in this country. And by the way, the the only one that that
we, we don't, aren't, we aren't fairly
independent on, and we produce essentially all that we use is
crude oil. And that's the one that we'll look at
later. We import a lot of crude oil, because our
consumption is steadily risen even though our peak is down from 1970, our production, our, our use has continually
gone up. We'll talk about that more later. So, this, this is the pie chart showing

where we get our energy from today. And it's the same numbers I've shown you before but sometimes it's easier to think about here, and see when we have
it in a pie chart. Oil at 36%. Natural Gas at 26%.
Coal at 20%. Nuclear at 9. Biomass at 5. Hydro at 3, wind at a little over 1, and solar at about 0.2. So, that's, where we're getting our energy

from is the big picture, and we'll look at each of those energy, sources, throughout the, rest of
the course and first we'll be taking up coal and the fossil fuels. Thank you.

Dr. Sam Shelton back with Energy 101. We talked in general about where we're
getting our energy from in this country. We have to find the source for it. And, I said that we're going to look at
fossil fuel resources later and where we get our, which is where we get most of our
energy from this day in time. And the first fossil fuel we will look at
is coal and where do we use coal or excuse me, the

amount of our energy that comes from coal. It is sitting right here which we've seen
this chart before. We get about 20% of our energy from coal. And we, we've gone through the other
numbers previously. So I want to, we want to know what is coal? What, you know, what, what's good about
it? What's bad about it?
Where's it coming from? What's the main issues?
Well, coal consists mainly of carbon and it's a solid.
Oil is a liquid, natural gas is a gaseous fuel.

But coal is chunks of carbon, basically. It consists mainly of carbon. Unfortunately it's got a few residues in
it that when you burn it are left over, and those, some of those
residues are not very environmentally friendly for us, because there's arsenic

and mercury and, and other toxic metals and things in, in the residue that
comes about after you burn the coal, and we burn most of our coal in power
plants, and so this, the residue that we call ash are put in ash ponds, and so
that's the, that's the, one of the other production, it's one of the issues of
burning of coal we'll look at in just a minute. So and looking at the chemistry of where this energy comes from we have carbon,

what that's coal primarily makes up, is made up
of and that's where the energy comes from. We take oxygen from the atmosphere in the gaseous form, with a free molecular
oxygen, O2. And, you get it started and it burns as we call
it, and it chemically produces CO2.
The carbon reacts with 1 carbon molecule which is 2 O's, not atoms, but molecules. And we get CO2.
And unfortunately, CO2 is the primary global warming gas that is
produced that's we worry a lot about regarding warming of the planet.
CO2 is a primary culprit. But during this reaction, the, the energy
level of the carbon and oxygen separately, in a, on a chemistry
level, chemical level, is higher than CO2. So it releases energy due to the chemical
reaction. Higher energy on the left, chemically,
than is on the right, so that X, that energy that is released,
comes off as heat and that's, that heat looks like a flame and
we can boil water with it, and we heat homes with it, and
all kinds of things. So that's, that's the chemical aspects of

carbon. I mentioned a while ago about the ash, the
ash, once they get through burning the coal goes into ash pits.
And these are like small lakes that have been, that have had ash deposited in it
for decades now, since coal started being burned in a
big way with power plants. And over the last century, and sometimes those dams, the dams that hold those ponds and lakes in break. There was one at Tennessee Valley
Authority, that dam broke and this shows how it flowed down and covered
up a house. In this case it created a pretty, pretty major environmental disaster up in
eastern, western Tennessee. And that's one of the side issues with
coal that you don't hear much about, but it's getting to be more

and more of an issue. Well, where do we get the coal from? Where do we get these chunks of coal? Well, we can get them from 2 types of
mines. One is the open mines.
And number 2 are the underground mines. Underground mines is where we primarily
got them from originally. And that's the old coal mining industry where mainly we had men go down there and build rails back in there and
they had picks and shovels and they, they found seams of coals underground and then they hauled it out of there by a lot of manpower.
They still do some of that but the the mine that is pretty well dominates now
is the open mine, where you just take a mountain that has coal in

it underground, and they push the top of the, the mountain, the dirt off
that exposes the coal that was underground and and then start digging
the coal out in an open pit. And here's a photograph of the pit. These ridges that you see are actually
trucks. Truck roads, roads for getting in and out. And, you see here, there's a vehicle right down here. It winds around, it's many miles to get
out. When they load up these vehicles and

trucks with coal, and, and take it out. There's one that's been reclaimed, after
they get through, they push some of the dirt back in, and try to restore it to it's environmentally friendly as possible. But that's strip mining, and open mines. These, these are the kind of, they have
huge equipment now, of course, to get rid of
the manpower. And that's the main advantage in open
mines is that you don't have to use a lot of man power and
labor. You can use these massive machines that

you can't get underground but you can work, that can
work above ground. And this, this claws the coal away and
puts it on a conveyor belt, and puts it on a
truck. That tire on these, this vehicle is taller
than a, than a man. Its about 8 foot tall, 8 foot diameter. Tiers 10 feet somewhere in there. A gigantic equipment that hauls tons of
coal out with every truck load. Its a lot of machinery and then its put on

to the rail. The transportation of it from the coal
mine to the power plant which is where its primarily used is it goes by rail and
which is pretty efficient in many ways. But coal is pretty cheap coming out of the
ground. But the shipping by train can easily
double the cost that the power plant has to pay. They would have to pay as much to get it
to the power plant on trains as they do to get it out of the mine onto
the train. And a coal mine, a big coal power plant
running in the summer time will consume about 100
rail loads, rail car loads of coal a day.
100 rail car loads of coal a day for a, a big power plant that has to be brought in by rail every single day to keep it running. So it's a massive operation. So that's the coal industry pretty much.
We don't import any significant coal. We actually export some.

And but all the U.S. coal that we produce is, is, that we consume is produced in the U.S.. So we actually have a small export there.
page47image10232 page47image10400
Unfortunately, it's pretty, pretty cheap fuel to export per btu versus oil for
instance. so, where do we use our coal? Well, about 93% of it is used by electric power plants, industry in manufacturing things use coal
in a lot of processes, about 7%. And then there's still believe it or not,
there's still a lot of buildings that are heated with coal

boilers that are in, in the basement somewhere. And it has to be fed coal that is trucked in. So that's how we use coal.
Here's the production history of coal in this country from again about 1950
that hit all the way up to current and you can see

it's grown slightly over time. In fact it's more than doubled, or approximately doubled as we look at the
trend. Notice it's flattened off.
We had a drop right here. Why did we have a drop?

That was primarily the economy. Remember the relationship between
economics and how well we're doing and how much GDP
we're producing, and the amount of energy we're burning.
Now we're actually consuming less coal for various reasons, the
environmental reasons being one of them. we, we are starting to export more and more, but and there's, that creates a little bit of

a controversy because if we're going to not burn it
ourselves, cut down on the amount we use, but then we're
going to export what we don't burn, that means somebody
else is burning it. And from a worldwide basis, you still got
a global warming problem. So lots of issues here that we start seeing with energy that are interconnected. Thank you.

Hello, continuing on with Energy 101,
we're on looking at energy sources and we're first looking at
fossil fuel sources. We looked at coal first, and today we're
looking at natural gas. So natural gas is one of the major sources that we get our energy from to do the

things we would like to have in society. So this is the pie that we've seen before. Coal is 20, we talked about that, natural
gas 26. So, let's talk about where we get that
natural gas, and and what we do with it.
This is what we do with it.
34% of it is used, is used in electric power plants and 21% of it is used in residences for heating and

cooking, and 14% in commercial buildings, that's to heat the buildings, and in restaurants for cooking and ovens and
things. And industry is 30%. A lot of that is for things like drying.
Here in Georgia, we have a major carpet industry and a lot

of energy, natural gas is used for drying carpet after is dyed and processed. So those are the major sectors that, that our natural gas is used
for automobiles and vehicles we have slight,
it's actually I think less than .1%. It rounds off to about .1%, but that's

talked about quite a bit today. And if we could get more vehicles converted, that would reduce our oil consumption, which is a much
bigger issue than gas, natural gas, as we'll see later on in the course.
But that's where our natural gas goes.
As I mentioned before, coal is a solid. Oil is a liquid and the natural gas is the
gas. Like air, it's gaseous. And not like gasoline but gas. As a matter of fact, I try to put natural in front of gas when I'm talking about
natural gas, as air-like gas because sometimes we, not
sometimes, we most of the time refer to gasoline as gas in, in our
everyday vernacular. So in here, though natural gas and, and
gasoline can get confused if you call both of them
gas. So, natural gas is the gaseous fuel that
comes out of the ground as we'll see. It has a chemical formula of CH4 and
that's, I put it in red here, because this gets
confused, as we move forward, I will use methane and
natural gas interchangeably. Because natural gas is methane, because it consists of essentially all of
CH4. It's got a few other minor things in it,
but they are almost negligable. So, when I say methane, or natural gas
one, it's redundant. Either one is what CH4 is.
It's odorless, that's the problem. For safety reasons, you can have a major
leak, your stove can be leaking it and fill the home with it

and you wouldn't know it until a spark ignited it and your
home would blow up. So for safety reasons, you put an odor in
it. That's not natural gas you're smelling. That's the odorant that is we put in natural gas so that you will smell the gas if it if you have a

leak. And as I noted, it's not gasoline which is
made from oil. The chemical reaction here we looked at for coal, where that, which is carbon, but in this case since we have CH4, we've got carbon and hydrogen that we
burn. The oxygen is, it takes 2 oxygens now, 2
O2s, that is a naturally occurring molecule in the air.
And the carbon, the carbon goes to CO2.
And the, the hydrogen goes to H2O, water. So now notice that we're getting energy
from 2 reactions. One is carbon reacting with oxygen to form
CO2, which is our global warming issue. But we also get energy from hydrogen
reacting with oxygen that, that forms water, which is not a
environmental problem or issue. It's not global warming, it's not a
pollutant in any way. Just comes off the, matter of fact, most smokestacks, what you think is smoke coming out of stacks, is just water vapor and
not, not smoke in, in and of itself. Almost in every case now, the steam-like
substance you see coming out of smoke stacks is water
vapor. And as I mentioned, heat is released and
from both reactions, both the carbon reaction with oxygen and the hydrogen reaction with
oxygen. So that's the chemistry of it. You hear a lot about gas production increase now, because of horizontal
drilling and fracking. What is horizontal drilling, is when we
bore a horizontal well. Once we go down, I got a diagram here to
look at that in more detail, so we can see it
and get a better perspective of it.
And what is fracking? Fracking is when we pump a very high
pressure mud, it's a water sand kind of mixture into the drill well,
that's put in at high pressure. And it fractures the earth around the bore
hole to increase gas flow out of the shale
formations. And here's a diagram that shows what
happens here the, we drill a well down vertically, and then
magically turn horizontal. They're like robots. We steer them, and make them go anywhere
we want to go. And and that gets more exposure to these,
this shale or coal bed methane that we're

drilling for the natural gas. But this is a tight formation.
And it's not porous at all. So if that's all we did, we would get very
little natural gas out of this well. So we put, pump down high pressure fluid
inside the, the well that we drilled and put it at high,
very high pressure. And it fractures this shale and rock bed
down in, underground, and makes it porous.
As a matter of fact, there's sand mixes, what makes it mud, and chemicals that gets
into the crevices that we have cracked. And holes that open. And the sand that holds it open is

and the natural gas will flow through it. This is the old style well or the vertical well, where we have to find gas that's in
a gas pocket, that's in sandstone and the
sandstone is very porous and the gas will flow out
through the sand, into the well pipe, and go to the
top. So that's what we mean by horizontal well
as horizontal drilling and fracking. Fracking is not anything new, I witnessed

an oil well being fracked back in the early
1980s, up in West Virginia. and, but horizontal drilling is fairly new
and the last 10 years or so, it started being used quite a bit and became

economically viable. And it's a combination of the 2 that's really made additional natural gas resources available to us. This is what the drilling site looks like,
it's got a lot of equipment but it's all located at the well
head, where we drill it. This is what the activity you see when one is being drilled how do we transport

it, we can't transport it like coal by train, we transport natural gas, which is
gaseous formed by pipeline. So we've built pipelines all over the country; underground, above

ground and
pipe it. It's a much cheaper way to transport a
fuel than rail or truck, boat or ship or any other way.
Pipelines are a very low cost, reliable and efficient way to ship, ship fuels.

What's our production of natural gas. Here's the long term history. We just natural gas started being produced
when we started producing oil actually. And looking for oil and refined gas, or
some gas comes out with oil, and they used to just flare it and in some

cases they do now. Just to get rid of it because they don't
have pipes available to clear it away and to use it and to sell
it. So we've seen a a growth in the natural
gas that mainly because we've put pipelines in and now we
drill for just natural gas alone. Whereas we used to see it as just a side
product to try and get oil. Notice again we hit, hit kind of a high
back in the early 70s. That's around 19, and these are TCF per year, that's TCF, that's trillions of cubic feet. Don't worry about those units, but that's
what they are. They're cubic feet of natural gas where
the natural gas is at atmospheric temperature
and pressure. And, that's how many cubic feet it would
occupy. And we produce and consume about 20 trillion cubic feet per
year. And we produced about 19 back in the early
70s. We've dropped down to [INAUDIBLE], it's
vacillated between about 15 and 20, as we see here. And we just in 2012, I believe have come up above 20 I've forgotten the exact
number but it's 20. something or 21, somewhere in there.
But this is, this is a recent growth in our natural gas production in the, in
the short term due to primarily horizontal drilling and fracking

So let's look at the big picture. because these are just, that's, that's
just oil production, excuse me, natural gas production right
here, not consumption, production. Well, we do import a little bit of natural gas. Not, whereas coal, we actually export
about 8%. Here we actually import some natural gas.
And the, the dark blue are the imports. So this is imports here. Notice, imports right here, down in this
dark blue. And the, what's above it is stacked on top
of it, and that's what we produce. So this is our consumption. Notice, this is a chart of consumption versus production. Make sure we start noticing those.
Those make a big difference. Obviously, whether we're consuming more
than we're producing or producing more than we're
consuming. And natural gas is a pretty good balance. We're importing some.
But where, where are we importing it? Well, if you noted, It, you have to, right
now the best way to transport natural gas. Make sure we start noticing those. They'll make a big difference. Obviously, whether we're consuming more
than we're producing or producing more than we're
consuming. And natural gas is a pretty good balance.
We're importing some. But where, where are we importing it? Well, as you noted, it, you have to, right
now the best way to transport natural gas is by pipeline, and that means

it's easy to import it from Canada and, and Mexico, so
we can build pipelines. And that's what we do and that's where
essentially 98% of our imported natural gas comes from
Mexico and Canada. So that's what, that's what this
represents down here. [INAUDIBLE] So we are, it comes from North
America so you can say that we're independent in energy free in
natural gas regarding North America. Not the US but North America, we're pretty energy independent when it comes to
natural gas. So we import 14% of, of natural gas
consumption. 90% of these imports come from Canada, so
about 12% of our total natural gas that's used comes from
Canada, and about 2% comes from Mexico and then the remaining 2%, you
notice it's still about, that only makes up about 98%.
Where do we get the other 2%? It comes from liquefied natural gas, where

we liquefy it, but that's a very expensive
process. You have to refrigerate it to minus 200,
460, excuse me, 250-260 degrees Fahrenheit or
so. So it requires an expensive cooling
process, and special tanks to ship it in. But we do import some LNG, liquefied
natural gas, which is not easy. So back to our energy sources. We won't go over that again. But we just talked about natural gas. We've talked about coal.
And next time we'll talk about oil, which you'll notice
is the big dog regarding where we get most of our energy
from in this country. And I believe that concludes this, and
thank you. See you next time.


Okay, back to Energy 101, and we just
talked about oil as a energy source, and we ended up with the fact that, imports
was a major aspect of our oil supply. About half or more of our oil is coming,
outside the US. So, let's delve a little deeper in, into
where these imports are coming from. The nature of these imports. this, this is just we saw it last time.
The red is the oil imports. The yellow is the lower 48 states production, and the purple is the Alaska production. And historically, from 1900 to 2012. And this is the import sort of,
themselves. So, we're getting somewhere around 9
million barrels a day of oil, imported into the US.
So, let's look at, when we did note that we're independent on electric power
fuel sources since this, essentially coal and gas, and I might say, nuclear also.
But we are dependent, not independent, we are
dependent on oil, on imported oil.
About 55% of oil consumption, is imported.

Where is it coming from? Well fortunately, about 23% of it is coming from Canada, which is a friendly
nation and they're adjacent, and we don't expect
to have any political or, or breakdown
between Canada. We're interdependent economically, and in
a lot of ways. So, that's a pretty secure quantity of
oil, that we don't have to worry about, which is fortunate, so that gets us down significantly, below 55. A quarter of it gets you down to, in the
low 40s. Mexico is another 10%, and there again, we
don't have to, we don't think we need to worry about
that. All our supply, but one thing I will note
on Mexico, is their production is in a
decline, and so, they, they were part of, they of course,
used a lot of their oil themselves. So that export to the US, is, will
probably be dropping. But the next, the, next one is essentially
equal to, slightly less, is Saudi Arabia.

And Saudi Arabia is probably our best, ally so to speak, and of course,
Israel number one, but Saudi Arabia is we've kept them close.
And for a good reason.
Because we'll see that they dominate the oil production and supply and exporting and price, around the world. Venezuela is next, not such a friendly

country, from a political viewpoint. And then Nigeria, and Nigeria and Russia.
Russia is moved up, significantly. These now, this isn't their total exports,
but this is just the exports to the U.S., now. This is percent of U.S imports, is how
much is coming. So about 5% of it's coming from Russia. And then we have Iraq, at about 4% on down
to Brazil at the end. So, this is percent of our imports, which
is, so this is the percentage of the 55%, that
we're importing. And so, that, that's the countries that
are importing our oil from. So, this, this we don't have to worry too

much, we don't think, about the oil coming from
Mexico and Canada. So, just cut that out of our pie.
And that's North America.
And we see that the 11 and 24 or so comes out to about 35%.
So the remaining oil is 65% of our imported oil, comes from North
America. Now 65% of our, our 55% is what does that give you?
That's somewhere around, that's 2 3rds. So, that's somewhere around 35%, 35, 40%, somewhere in there, of the oil that's coming from
outside North America. And that's probably the, the category we
need to look closer at, and make sure, we have a good steady
supply of that. And look at the disruptions that, that
might cause with any kind of blockade or, or price, price
change, around the world. But when we look at world oil imports, exports, the countries that are exporting oil. Saudi Arabia is at the top of the heap.

22% of the world's exports, that are exported for countries and put on the
world market, come from Saudi Arabia. Russia has been coming on strong, in the energy market, oil and gas in particular,
and their economy has gotten to be primarily
dependent, upon the income they get from that oil and natural
gas. But all the other countries, on a
worldwide basis, make up le, each one of them are 6% or less, of the world's

o, exported oil. So, Saudi Arabia is in control of oil, that's available for us
to purchase, on a world market.
And to get us, get us that, that 40% or so of our energy that's, we have to,
have to, import for, a with oil. This this shows the, the, what the, whereas this, the numerical designation here. This is bar chart showing the same

information, except this one's got more countries on it.
This is, percent of world oil exports. Now, the one before, don't forget, showed the percent of, of US oil imports. This is the percent of US oil imports,
that imports to us. This is the oil, put on the world market
by export, by each of these countries. And, that shows, that 22% there, for Saudi Arabia, and about 18% for Russia. Then I've got Iran, UA Emigrants, Kuwait, Nigeria, Iraq, Norway, Angola, Venezuela. Algeria, Qatar, Canada, Kazakhstan, Mexico. So others are less than that. So, those are the countries that are, are the big dogs, so to speak and you see that
the, the, the two that really are in a dominant position, are

Saudi-Arabia And Russia. This is another interesting chart, that
makes a significant point.
What this shows is, oil reserves. These are the estimates, of how much oil
they have underground, that they have not produced yet.
And, so, the bottom one shows, that Saudi Arabia, of
all the world's oil reserves, that are in the
ground and have not been produced. And some of them, they don't know exactly where, where it might be, and these are
estimates. But notice where Saudi Arabia is, compared
to everybody else. Not only are they producing and exporting more oil than anybody else, not producing, but
exporting. Which is huge, is, which is 25%, with the
next one being 11%, which is Iraq. they, they are actually, another reason

why they're, they're dominate. They, they could produce a lot more oil, than they're currently producing, if they
wanted to. And so, you can look at the rest of these

countries, if these are the ones you might be
interested in. Here, the U.S. is the one you obviously
could, should be interested in. We have about 2% of the world's oil
market, world's oil reserves. And we use about 25% of the world's oil.
That, that is used in the world. We use 25% of it, but unfortunately, we
only have about 2% of the reserves. Saudi Arabia is again, king of the
mountain there. Has lots of implications. It's even looks, it's even worse in some
respects, when you looked at some drill down a little bit, into this
these countries. I, I just compared the US over here, with Russia and Saudi Arabia, on four different categories. Number one, how many drigs are out there,
drilling? In other words how, how. And in the US, we are, we have about 1,500
oil rigs out there, drilling for oil and, to find new oil, so that we can keep our production, and even increase
our production. Russia has, and Russia is hard, is hard
data to get, because they don't publish it, but, it's
estimated, they have probably, over 1,000 rigs, drilling. So, they have to work hard, to get the oil production that they have. Saudi Arabia, notice has about 30 times
less active oil rigs drilling, with 50, than we do, at
1,500. But look at the oil production. They, from an oil production view point,
they, all three of these countries are not far off from
each other. We're eight, Russia's about ten, and Saudi
Arabia's about 11. So while, while we're producing about the
same amount of oil, we're working a lot harder at it, a lot
harder at it. This is why Saudi Arabia's probably can produce, incrementally can probably produce their oil at $5 or $10 a barrel and they're
selling it for 10. It costs us a lot more than $5 or $10 a
barrel, because it's a lot harder to find and get,
and produce it. [INAUDIBLE] But the fact that we're
producing almost as much oil may sound good on the surface of it, but look
at the consumption. We're, we're consuming 16 million barrels
of oil a day. Russia's only consuming three out of the

ten, that they're producing. So, they got seven for export. Saudi Arabia is consuming about three, the same as Russia for the whole country,
internally. And they, out of the 11 that they're
producing, so they got eight for export. So this, this shows the exports. Now, the US is a negative number because

of course, we're importing. So, you see a lot in the press about, how
we're doing so well in amount of oil that we're producing, and we're producing
almost as much, and probably will pass they hope Russia
and Saudi Arabia. But what does that, is that really
meaningful, because the fact is that, we're using
about five times more oil. So, we would have to be producing five
times as much oil as we're currently producing, is,
in order to be equivalent to Saudi Arabia, and that
would make, allow us to export, like Saudi
Arabia could. So it's, there's lots of implications here
about, where we are, in the world oil market, compared to
other countries. So we have about 35% of the oil coming
from outside North America, 40%, and by the way, I, I generally try to put
on an approximate sign here. I'm not going to get into a debate about, whether it's 38 or 39 or some number. I deal with one digit basically, 30s, 40s
or 50s, somewhere in there. But we're importing at least 35% maybe 40%
of oil from outside North America, and much of this oil comes from unstable,
in some cases, unfriendly countries. that, the economic value of that oil that we're bringing in, is about $1 million, $1 billion, that's
outgoing cash. Huge negative impact on our economy. That's money that we gotta send out of this country, and cannot be used for economic
development, in this country. And from the national security viewpoint,
we're only in control of maybe 2 3rds, at most, of our oil supply, if that, including

North American countries. Thank you. -END-
Hello, back to Energy 101, today we're
talking about oil energy sources, where the oil
comes from. And remember that, oil makes up 36% of our
total energy demand, comes from oil. The largest sector of any of the energy sources, that we get our energy from. And so that's waited for it to be the last of our fossil fuels, because it is the largest and it's got the

most complexity because of the imports that we rely on, for oil. And where does that oil go to?
What's it used for? Well, 72% of the oil that we use in the
US, goes to transportation. Cars, trucks, airplanes, ships, trains,
etc. And the next category is much lower,
manufacturing is 23%. And much of that manufacturing oil is used
for the molecule, we call it, and not to make
materials, like plastics. Rather than burning it for the energy, to
get out of it. So, it's a very, the molecule is most of
the time, more valuable than the energy that you get off of it, by
burning the molecule. So, the manufacturing has 23% of it, of
consumption and then residential about 3%, that's primarily up in the North East
homes and buildings that do not have natural gas pipeline running
down the streets in front of them, so they have no access to
the natural gas, because natural gas is three to five
times cheaper than oil. They would cut their heating bills
significantly, and but they don't have that option because of the lack
of pipelines. Commercial buildings in the same category
as the residential for the same reason, they don't have access to
natural gas. and, they do, can make it, propane, both the residential and commercial people that are burning oil, could convert to propane for an expense,
for change in the boiler or burners over, and their
tanks. But propane is close to the same price as oil, so it's expensive, much more
expensive. Then electricity, is less than a half of a
percent. The electricity is the big one there
because note, that we don't get any significant oil
electricity, from oil. So, one take away here, just to make a point that we'll get to it more emphasis later. But when we talk about nuclear, solar and wind, we're talking about sources that generate electricity. Those will not replace, and no matter how
many we put in, do not replace oil because we essentially, don't use any oil,
very insignificant for electricity. So, nuclear, solar and wind power. Even though you see ads on the television,
you see in the media talking about, we need to do
those things, put in more nuclear, put in more
solar, put in more winds in order to reduce our oil
imports. It's just not true when you look at the

data. Oil really came into its own, in early
1900s with Spindletop. It is first discovered and used in

automobiles from the mid 1800s to late 1800s.
And but the, it, the demand was not significant.
Automobiles took off, in the early 1900s. And they started, dri, finding, trying to find more sources for oil. So,oil production in the form that we
currently know it really got started in Spindletop,
Texas. And this is an actual photo taken in 1901,
when they drilled the well and the pressure down in
the well was high and just shot the oil up. And of course, they, they knew they had lots of money in their pocket, when they saw

that. because even back then, that was a major
wealth producer. Along with join and parallel to how,
carbon coal and natural gas, CH4, is burned, the
chemical formula. Here, it's a little more complex and you
don't have to memorize it or anything. But the general formula for oil, is C n,
where n can be 1, 2, 3, 4, 5, 6, 7, etc.
H, and the number of molecules of H, is 2n plus 2, so, again, n is the same throughout.
And you have to have 2 n O 2 molecules with those, with that fuel
molecule, hydrocarbon. And then the carbon gets, again, co,
combined and reacted with carbon, carbon and oxygen
react to form CO2, which is a global warming gas, and water,
n plus1 molecules of water. In the process, the energy value of the
molecules over here, on the right, are higher is lower, than the energy contained
in molecules on the left. So the and when since the energy the
chemical energy in these molecules is higher, than
the chemical energy in the molecules to the right, it
then it released energy and that energy comes
off, as heat. And so, where do we use this oil, how much do we use, and how much has been the trend? Well this is an interesting chart, it's
got a lot of interesting ups and downs to it. But if we start off over here, all the way
on the left, the 1990s, which the 1900s where oil really took off,
with the automobile industry. And then the, it built up.
And you notice that, it was a pretty, pretty steady build
up, up until, in the 70s.
And lots of things happened in the 70s. And one was, is that in the early 70s, you

had the oil embargo from Opek. And they would not sell us any oil because they didn't like our foreign
policy, regarding Israel. And they all, Opek, as a group, refused to ship us
any oil. And that had major, major, major impacts on us, immediately, and lots of things happened. I guess I'll give you one example, filling

stations could only open 8 - 5, on Monday through
Friday. And they could not be open on weekends. So, you could not take a weekend trip that
used a one gallon round trip one tank of gasoline on one trip.
And prices started going up, dramatically. And prices during the 80s, during the 70s,
went from about $2 a barrel, to close to $10 a
barrel. That's a five-fold increase, a five-fold
increase. Which of course, we, we talk about oil
going from $100 a barrel to maybe, it might go to 150, we say.
Well, that's only a 50% increase rather than a five-fold, 500%
increase. So that, that was one effect and that high
price meant that, that we had to do something and lots of financial
incentives, to reduce our oil consumption and we did it. One of the major things that we did is, got power generation off
of oil, and we got it on coal and natural
gas. That was one of the major things, because we were producing significant
amounts of, a significant amount of electricity from
oil, back in the, when we got to the early 70s. And by getting rid of that, those oil consuming power plants we dramatically
dropped our oil consumption. They was when, also, we put in the first
of car efficiency, car mileage standards. So, all cars had to meet certain standards, efficiency standards, and
automobiles back, before they had the standards, only got 12 to 14
miles per gallon, on the average. Today, they're somewhere in the high 20s,
more than double what the efficiency is. And of course, that's cut oil consumption below what it would be, without the standards

dramatically. And then it's worked its way back up some in the, in the meantime, as we've taken those. This drop here is due to the recession. And as we saw, when you reduce economic activity, you reduce energy consumption. And that, that's across the board,
including oil. Well, we've come outta the recession and we see us, we see that, it is starting to come up, here. That right in here production is starting

to come back up. As our economy is improving.
So, that's our oil consumption. Our oil production is a little different
ball game. And this, gets our, keep our perspective
here. Notice, that up here at the top, it's
about 15 million barrels per day.
I didn't mention that. The units we're dealing with here, are
million barrels per day, of oil use, crude oil
use. And so, this is the, we're about 15, and
so this, look and see, how that compares to
what we're producing. Well, this is a chart that you don't see
very often, but one that's important, to put
things in perspective. You notice the first, the, this is again, this is
1900 over here. On the left, just like the last slide, to
keep things in perspective. 2012, I don't update things until the end
of the year. And you have to wait a few months, before
all the data gets in. So, the data stops here at 2012. But it's kind of interesting, not kind of interesting, it is. Notice that the peak, the peak oil
production in the U.S., and this is U.S. oil production, not world, just U.S.
And the yellow shows that, how much we produced in
the lower 48 states and the purple shows how much was,
was produced in Alaska. Cuzit had a significant impact when we
discovered the Alaska Oil Slope, oil on the Alaska Slopes, north to the

sea. So but notice the, we have never produced
as much oil as we produced in the early 70s, before we
had the oil embargo. And we were producing about, 9.5 million
barrels per day. It dropped off then and then Alaska came
in and notice, that grew very rapidly, as we developed
that resource up there. We're doing that same thing in North
Dakota, in the oil shale fields right now. That won't last forever, but notice how
it's, we've used, we used it significant amount of that, up
and it declines. Oil production from existing oils, once
you drill it and start producing from it, drops about
6%, a year. So, you gotta run like heck in order to
keep keep your same total oil production. You gotta find 6% more, in 6% more oil
production every year, in order to keep producing the same
amount, that you have been producing. So it's a, it's a tough battle to, to
keep. Notice, we dropped down here, to about 5
million barrels per day, and now we're up to about six, a
little above six. So, we are on the up-slope with the oil
shales that mainly do the oil shale, that we're
getting. And with horizontal drilling and fracking
and etc. So that, that chart the one of the more
surprising things is, how much, how far below our oil production volumes we are,
from 1970 to when it was 9.5.
We're now just cleared six, recently. But we saw a similar, having been around a
while and lived through all this you know this, this trend I don't expect to last forever, just like this one didn't
last forever. One thing I've learned in my old age is
that, nothing lasts forever. The only thing we can be guaranteed, is
things will change. Another interesting thing is in 1970, when we produced more oil than any other time in the, our country's history, oil was $2 a
barrel, $2 a barrel. So, we had very little financial
incentive, but we found, we found all the easy oil. It's kind of like, I used the example of,
you've got basketballs and ping pong balls buried on the beach, in the sand,
and you go around with a pole trying to find where all the balls are. And the amount of oil is that's in each
ball, ball is proportional to the size of
course, of the ball. Well, what are you going to find, going to
find first? You're going to find the basketballs
first, and then and they're easy to find because it's
easier, they're bigger. But the little, little reserves, the ping
pong balls, are harder to find. So, we're finding all the major
basketballs, and some of the technology is improving
however, to help us find now the smaller ping pong balls,
so to speak. So, that's one analogy that might help
understand, why there's, we had, it is a finite reserve,
resource. Oil, there's only so much oil in, in the
ground and with technology we improve, how much we
can find and recover. And but we have to keep working to try and
finding, more and more.

So, that, that's a interesting chart,
putting it together since consumption is more than our production,
this shows, up here, this shows the, the per-, the consumption is up here, which was on the first slide, about 15 million
barrels a day. And down here, we're at about 6 million
barrels per day. Six and 15. So, that means that, we're importing about 40, it turns out about 40 or 45% of our oil, is being imported right now. Because, into this country. And there's one thing you have to be aware of. A lot, a lot higher percentage, I should
note, is being imported today. Over here, than it was, back in the 70s, when we had the oil embargo. So, we're a lot more vulnerable than we were, in the 1970s. And we, there's lots of ramifications to
that. When we look at just the oil imports, so
we can see it a little clear. We are only looking at the red portion
now, so we can see, what our import trend has
been. You see that it has it's dropped with our
increased oil production that we've seen recently,
from about 10 million barrels a day imports, to about 8.5
million barrels a day, imports. So, we're down in the 50s, low 50s or so,

mid 50s percent oil percent of all oil that we're getting
fro, by imports. So it is coming down.
Again, it came down also in the in, in the 70s and eight and early 80s,
but that trend as I sa, said, just they, most of
them end at some point. What's the consult, just a reminder, that
72% of our oil is used for transportation, and that's the big, big dog on the block,
that we have to worry about. And, and if we can get better fuel
mileage, which now there, we got standards going up to 50
miles per gallon, in 2025. We'll significantly reduce our oil
consumption, and help our oil import situation. So in conclusion, US is dependent on
imported oil. Approximately 55% of oil consumption, is
imported. I'm not going to debate, whether it's 50,
or 56, or 53, or. The the point is, we're importing half or more of our oil.
US is energy independent however, for coal and gas,
independent here, independent for coal and gas.
100% dependent on coal. Gas, if you look at North America, we're
totally independent. We do import about 14, 15% of our natural gas, but that's from Canda and Mexico, which politically, we expect that to be fairly stable.
And coal and gas is the fuel electric, Electric fuel.
Electric power fuel source, so our, from electric power viewpoint, we are energy
independent for the use of the fuels that we use, for electricity

generation. Thank you. -end of Week 1-
Week 2
Shale Gas Will Fuel a
U.S. Manufacturing
Chemical producers abandoned the U.S. in
droves. Cheap natural gas is luring them back.
By Kevin Bullis on January 9, 2013


The Next Wave of Manufacturing

Manufacturing in the Balance

You Must Make the New Machines

What Yoda Taught Me About 3-D Printing

Shale Gas Will Fuel a U.S. Manufacturing Boom

Made in America, Again

Obama Push on Advanced Manufacturing Stirs Economic Debate

Small Factories Give Baxter the Robot a Cautious Once-Over

DARPA Wants to Remake Manufacturing

Intel Bets on Fabs, Again

Glass That Bends the Rules of Manufacturing

Don’t Divorce Design from Manufacturing

An Internet for Manufacturing

Biotech Firms in Race for Manufacturing Breakthrough
Download Full Report View More Reports
/#business-report-toc business report toc: generated: 2015-10-11T10:58:13-04:00

People predicting a manufacturing renaissance in the United States usually imagine whirring robots or advanced factories turning out wind turbines and solar panels. The real American edge might be in something entirely more mundane: cheap starting materials for plastic bottles and plastic bags.
The plummeting price of natural gas—which can be used to make a vast number of products, including tires, carpet, antifreeze, lubricants, cloth, and many types of plastic—is luring key industries to the United States. Just five years ago, natural-gas prices were so high that some chemical manufacturers were shutting down U.S. operations. Now the ability to access natural gas trapped in shale rock formations, using technologies such as hydraulic fracturing and horizontal drilling, has lowered American prices to a fraction of those in other countries (see “
King Natural Gas”). Over the last 18 months, these low prices have prompted plans for the construction of new chemical plants to produce ethylene, ammonia for fertilizer, and diesel fuels. Dow Chemical, for example, plans to spend $4 billion to expand its U.S. chemicals production, including a new plant in Freeport, Texas, that’s due to open in 2017. The plant will make ethylene from the ethane found in many sources of natural gas. (The last such plant to be built in the U.S. was completed in 2001.)
The impact of the resurgence is being felt most strongly in the $148 billion market for ethylene, the world’s highest-volume chemical and the foundation for many other industries. It’s used to make bottles, toys, clothes, windows, pipes, carpet, tires, and

many other products. Since ethylene is expensive to transport over long distances, a new ethylene plant is typically integrated with a facility to convert it into polyethylene for plastic bags or ethylene glycol for antifreeze.
In the U.S., it currently costs $300 to make a ton of ethylene, down steeply from $1,000 a few years ago. According to
an analysis by PricewaterhouseCoopers, it currently costs $1,717 to make it in Asia, where plants depend on high-priced oil instead of natural gas, and $455 per ton to make it in Saudi Arabia, using a combination of ethane and butane. (Ethylene plants are also being built in Qatar, which, like the U.S., has very cheap natural gas.)
Over the last two years, manufacturers have announced plans to add 10 million metric tons of ethylene capacity in the United States by 2019. Those plans represent a 10 percent increase in global ethylene production and also account for close to half the industry’s planned expansions in all countries.
The impact of cheap natural gas on manufacturing could extend beyond the production of various chemicals. Using natural gas as an energy source, rather than a chemical feedstock, could significantly lower costs for manufacturers who use a lot of energy, such as steel makers. (The steel industry is booming already for another natural-gas-related reason—it’s supplying gas producers with pipes.) What’s more, cheap natural gas is prompting a shift away from petroleum-based fuels for trucking. Some companies are switching to trucks that burn natural gas directly. Eventually, even diesel trucks could be using fuel made from natural gas. The South African

page75image14112 page75image14272
company Sasol plans to build a huge $14 billion plant in Louisiana partly to convert natural gas to diesel, potentially lowering fuel costs for conventional vehicles as well. Overall, cheaper chemicals, cheaper steel, and cheaper transportation could make the U.S. a far more attractive place for a wide range of industries.

Michael Levi, a senior fellow at the Council on Foreign Relations, says energy doesn’t exceed 5 percent of costs in most industries—not enough to make gas prices decisive for most companies when they’re deciding where to build manufacturing plants. Levi thinks the biggest difference cheap energy might make is to give existing U.S. factories a new reason not to close or move offshore. “Cheap natural gas might do more to keep existing manufacturing plants open than it will to get people to build new ones,” he says.
Just how long U.S. natural gas will stay relatively cheap is not clear. For capital investments to pay off, say analysts, oil prices need to stay high, and gas prices low, for years to come. That means chemical makers could still shift their plans. For instance, Sasol will reassess the economics of its planned plant for converting natural gas into diesel in 2014, before it breaks ground.

Hello, I'm Sam Shelton with back at Energy 101, and today we're talking about
petroleum versus oil. This is an important topic that hopefully
will help clarify a lot of issues, that you run into, in reading articles in the
media and listening to television and etc. Because these two words, too many times, are used interchangeably. And the general public generally use, thinks they are synonymous, petroleum and oil. Well, just here's a perfect example. This one actually came out of the energy

information agency, the DOE. But, this one was, it was kind of was a news blurb that came out, not too long ago
that talked about US petroleum, doesn't say
oil, it says petroleum. Production, surpassing Saudi Arabia and
Russia. And I'm going to go through this whole
chart that, but it goes from 2008 on the bottom, out to 2013, which is obviously an estimate, because when I'm recording this, it's not the end of
2013. The bottom part is petroleum, and then we
have natural gas, on top of that. And the three bars that we see in for each one.

one, two, three. The first one is, United States. The second one is Russia.
And this third one is Saudi Arabia. So, and the black is petroleum. But notice, it doesn't say oil, it says
petroleum. And so, we were producing less oil than
Russia and Saudi Arabia, back in 2008. You move it to 2012, which is by the way, is where,
is the time period for the data that I'm showing you throughout this course,
because it was completed during 2013, before the 2013 data was available.
But you look over here and you see, we're
producing about the same as Russia. You the, here's the US, here's Russia and
here's Saudi Arabia. Saudi Arabia still producing more.
They're producing about 11.5 but that's petroleum.
And we're, we're going to see, going to see what the difference is, between
petroleum and oil here, in just a minute.
But it's very key, that you pick, that you pay attention, to what is the, when
they're talking about petroleum, and when they're talking about oil. so, the question, the question, the

question you might ask is, is petroleum and oil the
same? And the quick answer is, no. You cannot use those terms interchangeably, except maybe in rare
instances. oil, so what is petroleum? We know what oil is, we've talked about
oil. And defined it, and, and talked about how
much we, we produce, and etc.,
etc. But we haven't talked about petroleum. So let's, let's find out today, what we're
talking about, with petroleum. What is petroleum? Well petroleum is the, is oil combined
with natural gas liquids, which we don't, I haven't covered
what it is, but will here, in just a minute, and biomass

fuels, which right now, those are liquid fuels, which
right now, is essentially all corn ethanol.
Corn, ethanol made from corn. We are, as I think I've mentioned before, beginning to trying to develop ethanol production
capability, from cellulose. That's like wheat straw and corn stover.
Corn stalks and wood and wood chips and, and red wood residue and etc. But petroleum is the combined, the number for all three of those, put in

barrels of oil. So that obviously, petroleum includes more
than just oil. So what is natural gas liquids, because
that's the big one. Ethanol we'll see, is a, is a small one,
but natural gas liquids, we're producing about 2, 2.5 million barrels a day of
that, and producing about 6.5 million barrels of oil, for 2012. Well, it's a, natural gas liquids are a byproduct of natural gas production, at a

well site. And it's, it's made up of ethane, propane,
butane, and pentane. Now, you probably know what propane is,
you generally barbecue it, in your grill, from
a tank of propane fuel, that you buy at the hardware store or somewhere, and get refilled. Butane is, is also similar to propane.
We use it in lighters and things. It's a little lower pressure to maintain,
it's liquid in nature. But we're, we use those and kind of

understand those. Ethane and pentane is primarily used in the chemical industry, to make different things. For instance plastics, polyethelene, for
instance. So the, the all, but why do all these come out,
with natural gas? Because at atmospheric pressure, all of

these things, ethane, propane, butane and pentane, are gases, at
atmospheric pressure. But at the well head, they pressurize them
and when you pressurize the mixture, the ethanes, propanes, butanes, and
pentanes condense out, they become liquid. And it's easy then to separate them from natural gas, by merely compressing them. Which they compress it to put in pipelines anyway, so it's not an extra step, it's just part of the compression process, to
get it ready to put it in the pipeline. And when they do so, these natural gas
liquids, as we call it NGLs, natural gas liquids, as I've stated up top
here, you see that term used quite a bit, is a stand for natural
gas liquids. So what are ethanes, propanes, butanes,
isobutanes, and pentanes? Well, if you were interested, there's the chemical formula, for you

chemical minded
people. Notice that, butane and isobutane got the
same formula, but this is an isomer of butane, and we won't get into
the chemistry of that, because this isn't a chemistry class. But it, for those interested, that's what all, that' s a chemical formula for all those other liquids that,
at high pressure they're liquids. And by the way, when you get propane in a tank it's at high pressure, and that keeps
it a liquid. And notice that, when you open the valve,
and let it come out, the atmospheric pressure, it's a
gas, it's not a liquid. so, what are the characteristics of natural gas
liquids, is come out, comes out of the ground, in a natural state gas is
[INAUDIBLE], as I've already mentioned. It the mixture's compressed, to separate
the NGLs. And natural gas will, natural gas will not
liquefy, by pressurization. It will never liquefy at, by
pressurization, unless you cool it, but at atmospheric
temperature, natural gas will not liquefy, with the
pressure. In order for natural gas to liquefy, you must cool it to minus 260 degrees
Fahrenheit. And, when you see when you see liquefied
natural gas and that, we're beginning to talk, that's what you
have to do, to export it across the ocean. You actually cool it and refrigerate it, to minus 260 degrees Fahrenheit, which

is an energy consuming process of its own. So, natural gas is completely different in the fact that, it will not liquefy or pressure at atmospheric temperature,
whereas these NGLs, do liquefy. So, here's what the production rates look

like has looked like, in the trend from 1982, when we produced
about 1.5 million barrels per day. And now we're producing almost 2.5 million
barrels, per day. We did in 2012. And the reason for that is that, we're
producing more natural gas, starting back about 2008, and you get the natural gas liquids, with the production of
natural gas. So if you produce more natural gas, you'll
produce more natural gas liquids. So that, that's why they've increased, and they've
become a notice we said that in 2012, we produced about 6.5 million
barrels of oil of oil. So, 6.5, well we're already producing 2.5
million barrels a day per day, of petrol, of NGLs. So, it's a significant number, when you
add them together, when you add natural gas liquids
to oil, it obviously makes petroleum a much bigger
number, than just oil. And so, we want to look at the

appropriateness of that or whether that's meaningful or
not. This looks at the combination of, of the,
whereas the last slide only looked at natural gas liquids, this looks at the oil
production, from 1982 to 2012. It looks at the light gray, or light blue, which is the natural gas liquids. And then, the other thing that you noticed
in my definition, of what natural gas liquids were is that the, the bowel
mass or corn ethanol, that's the yellow. And so, here's, here's the corn ethanol right here and here's the NGLs right
there. And this is the ethanol, and this is the
oil. And so you can see, it's getting to be a, a
significant percentage of the oil, that we are per, of the
petroleum, that we're producing. Because it's a significant percentage of
the oil we're producing. So that's what natural gas liquids are,
and those are the, are the trends. But, here's how the natural gas liquids

are used. This is, these are national averages for
the makeup of Natural Gas Liquids. They're about 40% ethane, as we've see
here. About 40% ethane, about 30% I like to
round off. I'm not going to get into arguments, about
whether this is a 28, a 30, a 42, a 40, a 38, or a 45. That's not meaningful for our discussion here. The, the points that we want to make. Butane's about 10% and isobutane's about
another 10, so that's 20%, you add the butanes
together, is about 20% butanes, and then about 14%, pentanes.
And what are they used for? Well, ethane is used for plastics. Polyethylene bags, plastic bags is made
from ethylene and ethane. Propane is of noted here, it's used in home heating some, rather then natural gas, for natural gas is not available,
it's more expensive. Therefore, if you have natural gas, you're
going to use it. But if you don't have it, then it's you
use the propane a lot. Used in grills, as I've already mentioned
and liquefied petroleum gas. Even some, there are some cars, have run
on it, that seems to be diminishing. The butanes are used, again, in the
chemical industry for synthetic rubber, lighter fluid, and liquefied petroleum
gas, for cooking and cigarette lighters and
things. isobutane, chemicals in gu-, is used in

gasoline refinery to adjust the octane number, and to get the blend,
that they want. And about 15% butanes, which again, is used in some gasoline production. And of course, in, in by which means,
that's used some for transportation. So, that's the utilization of the natural gas liquids. So, in order to adding them together to,

and the meaning for that to mean anything, oil and natural gas liquids, should be the
same, well are they the same? Well, if, to be lumped together, they'll
only, it's only appropriate, if they displace
each other. And you can use them, interchangeably. Well, that's just not the case,
particularly on a one to one basis. Now, some of them can, are used, some of the natural gas liquids are used, in the

chemical industry. And where the, so they don't have to use
natural gas or oil. So it, it may replace some oil. But the general estimate that, I think
it's about the, as good as I have seen, or, or can figure out for myself, is that one barrel of natural gas liquid, displaces probably, about 1 3rd of
a barrel of oil. It's in that vicinity. I, I think it's less than a half, and
probably more than 20%. But and you can debate it in between that.
But I really think that, it's, misleading to add the natural
gas liquids and the ethanol to, particularly add natural

gas liquids, let's just stay with that. To, oil, and talk about it as a whole, and put out news releases, based on that summation, because it can draw you to misleading conclusions. But if you look at the back, at the liquid petroleum imports, rather than oil imports, we've
been looking at oil imports before. This the first time, we even talked about petroleum. You can see that, it looks like it go, it,
it has gone down significantly since 2008, we
started producing more natural gas. And that's prime, one thing we have produced, produced more oil self to the drop.

But we've also produced more NGLs and that's helped the drop also.
So but regardless, we're still producing importing about 50% of the petroleum, if you want to talk about that way. Which I, I never like to use the term
petroleum because it's very confusing. Talk about oil, or talk about natural gas

or talk about natural gas liquids.
But don't, don't combine them. From a transportation fuel viewpoint,
here's the pie chart that shows what we, which is which, transportation is the
primary need for oil. And oil of course, is used to produce
gasoline, it's used to produce diesel. Now ethanol does replace, displace oil, almost on a one to one basis, but not quite, as you'll see just
in a minute, because it doesn't have the same BT value, per gallon or barrel, that oil
does. But the other, small, small sliver here. Is a grey sliver, and you probably can't
even make it out. Its got 0% here, but is actually about
0.4%, it's rounded off. It's below a half, and the software rounded it off to zero,
but it's about 0.5%, call it. And that, that's different, than natural
gas liquids. Ethanol does produce, displace oil to a
major extent, on an almost a one to one basis, or a lot
more so, than natural gas liquids. So, that, that covers, what we wanted to
say about natural gas liquids. And next time, we'll look at ethanol, since that's the
other element that's in petroleum, that's, it's
added oil. So, let's look at the ethanol production

and where's it's coming from, and what those trends are. See you next time, thank you.
Back to Energy 101 with Sam Shelton. And, today we're going to talk about
ethanol as an energy source. We noted last time that it is, gets added
to oil, to make up the, category called petroleum
along with natural gas liquids. So let's look at ethanol as an energy
source. Which to see what, where it comes from, what the impacts, and where it's going, and what it all means.

Number one, U .S. ethanol is essentially all produced from corn. Very isolated, very small examples of
anything other than corn at this point, we'll talk about
later. About trying to get it from cellulose, but

the sugars are locked up a lot tighter in the cellulose than it is in corn. So the corn is a lot easier to process and
get the ethanol from. But today it's an astounding number, to me, that 40% of the corn grown in the U.S. goes to

ethanol fuel. And of course, that competes directly with
food. For this cattle feed, to feed cattle for
our, our consumption, or whatever it is. The rest of the corn essentially all goes to, someway in the food chain. So, that of course drives up prices and
has increased production, but the increased production you need
increase the price, to make it viable. this, this shows the trend of our ethanol production from 1980 on. And notice that it kind of started getting
a big boost in the early 2000s and has grown rapidly up until about 2010.
And noticed it's flattened out in 2010 to approximately one million barrels per day. It's a little bit shy, about 9.9 million
barrels a day. But why is it flattened out? Well, just briefly, it's because of what we, the blending wall, what is called the

blending wall. And why do we have the blending wall? And why would that limit the amount of ethanol that we need, or can use? Well, it's because ethanol is blended with
gasoline and it, therefore, if you add ethanol to
the gasoline then you use less gasoline, to

when you burn a gallon of the ethanol combined with
gasoline. And first, we have the E10 and that's
what, most of the automobile gasoline that you buy has
10% ethanol in it. There's some very few exceptions to that but there are some that some things need pure gasoline and not without any ethanol added.

So it's 10% ethanol and 90% gasoline. All vehicles are approved for 10% ethanol
and can run on that, in 10% ethanol with
essentially no damage. Some people will argue that and debate it. If you go way back to the old carbureted
cars, they, this can be a little bit more of a hassle, and cause a few more problems back in the old cars. But, and from 2000 and on, this, newer cars are approved to burn up to 15%
ethanol. That's been a little bit controversial,
but they did that in order to try to, get rid of the blending wall,
as we call it. And what we mean here is that if you, once
you mix all the gasoline with 10% ethanol, then the only way to
increase ethanol production is to increase gasoline fuel consumption,
which we haven't done since about 2008. So due to the recession we, our, our fuel transportation, fuel consumption has
remained rather flat or gone down. And so, you, you couldn't grow without

ethanol use, because you could only mix it to 10% and we, they were already doing that. And there is, even though 15% is approved
for 2000 and newer cars, very few filling stations, like I've never
seen one, that has that has it. because it's just one more pump, with

another choice that increases their expenses, their expense and cost to and
capital cost to serve their public. There is E85, that's for flex fuel
vehicles, they call them. When it says flex fuel, it means they can
burn up to 85% ethanol. And that of course means 15% gasoline. And there are about 10 million flex fuel

vehicles on the road. And there's an incentive for that but I won't even get into it now because you kind of,
you get a bump in, in fuel mileage that you're,
that you're able to put on the window if you

gotta, if it's the flex fuel vehicle. so, right now ethanol is a significant
supplier to our transportation fuels in that it supplies about 5% of our
transportation fuel. Which is significant. Obviously much more than the, than the propanes and bio- diesel and compressed
natural gas. CNG by the way, I haven't mentioned that. CNG is compressed natural gas, right there. and, but one warning is that a gallon of

page87image12160 page87image12328
ethanol contains only about 2 3rds as much energy when you burn it that you get out, than gasoline. So you, you actually get a slightly lower
fuel mileage when you burn 10% Eth, of E10 with 10%
Ethanol. In a 30 mile per a gallon car, it would

reduce the gas mileage from, to about 29. So that's about a 3% reduction in your gas mileage when you
burn 10% ethanol. So, it's a small one, you probably would
never notice it. Your variability in driving is, is more

than that. So here again this is I think we've seen
this slide before. But this is the petroleum production, and

we see now where the combined ethanol that we're
talking about today. And here's the natural gas liquids, and here's the, the, oil production. So, that, since ethanol is lumped in with

petroleum, we needed to talk about that. one, one point here, is that there's a lot of debate about where the energy comes
from with corn. And most studies show that it requires
about 0.8 units of fossil fuel for every one unit of

energy that you can get out of ethanol.
And its primarily natural gas and coal. I'm not going to dwell on this slide but
just for demonstration purposes. Corn ethanol, this is the amount of energy
that has to be put in, to get to produce the
ethanol. And you can see the yellow is the amount of coal that it takes, primarily in
electricity usage. The red is the, natural gas you use. Green is other and the yellow, the blue is petroleum for running the tractors and the trucks to take it to the,

to the granary and etc. Wood cellulose has the promise of being much better in that regard. And that it only requires maybe 10% of the amount of energy that you get out of it to put into it to grow
the wood and to refine it into ethanol.
Thank you.

Hello, back to Energy 101. Today, we're going to talk about energy
independence. You hear this term a lot about, we need to
be independent for our energy supplies and le, let's
delve and take a little bit of a deep dive and, into this independence
issue and see exactly what we mean by it and where we stand,
regarding our energy independence. Well what is energy independence? Well is it, primarily it came about

because of crude oil, that's where the term first developed, from back in the 70s, when we were embargoed from OPEG, from shipping us
any oil. So, and that was all crude oil but now as I've mentioned last time, regarding
petroleum. Now people kind of switched the ballgame

on us and talk about liquid petroleum independence, which I claim, is very misleading. But, because it assumes that oil and
natural gas liquids are equivalent, and which I don't believe they
are and, and, interchangeable. So here, to give you a view of how
independent or dependent we are, on imported sources is that here's the amount
of oil that we use on in energy, not barrels per day
because it compares natural gas, as the gas through natural gas
liquids, the coal is the solid. So, it's the energy equivalent of all of
these things, is what we plotted here. So the energy equivalent for crude oil, is
about 30 quads, 10 to the 15th is a quad, 10 to the 15th BTUs,
that's 10 to the 15th BTUs. Not really important, but to because
every, they're all in the same units. Natural gas, the total, this is our use,
this is the amount that we import, and this is the amount that we
consume, that we produce. Notice that we don't produce as much as we
consume, we import. Can just look at that, visually. Natural gas on the other hand, we produce
and consume less energy value of the natural
gas. But we import much smaller percentage of
it, somewhere around 15, 20%. And that all comes from Mexico. Not all, but essentially all for intent purpose, intent and purposes come from come from
some Mexico and Canada because it comes from a pipeline because shipping it across the
ocean, gets to be expensive. As I mentioned last time, you gotta cool it, to minus 260 degrees liquefied, to get

it on a ship container that has to be, to maintain it is minis 260 degrees and etc etc. Natural gas liquids, you can see here, is
we don't really import a significant amount of that, there's [INAUDIBLE] there. And coal, now coal, notice that this is negative down here

this is negative. That means, we're exporting coal. This is zero, and this is minus 10.
So we actually are producing this much coal and we're producing this much,
so we're consuming, what's above zero. We're consuming about 21 gigs of coal. And then, this is the energy value of
renewables. And the biggest thing in renewables, is hydro, and biomass,
biomass and just burning, burning biomass waste in, in a
lot of cases. So, that's our energy value, and it looks like that, you know, we're doing pretty, pretty good on natural gas, but I don't think this is the important way to compare

these. I think, a much more important way to
compare it, is look at the value of these imports, in dollars.
And oil sells for about five times more, per energy value, than natural gas, five
times more value. So, the value of the oil that we consume,
whether we pay for it, for for importing it to somebody else or what we pay to produce it ourselves, pay it to Exxon, or
or chevron, or shell or whoever might be, to
produce it here, we are spending that much money, to, use the oil
that we use. And this much is produced here, in the US
and this much is imported, including Canada and Mexico.
Natural gas, the value, economic value of the
natural gas we use, is of course, much lower. As I mentioned, it's about five times
lower per unit value and total energy value, is not
far off. Natural gas liquids, the value of natural
gas liquids, is shown here and the economic value of coal,
is shown there. I didn't show renewables because of the
energy value, the cost of the energy itself is zero, is the capital cost that
you have to, the plants you have to build, the wind turbines, and the
[UNKNOWN] it takes and things, to produce it and get
it, convert it. So, this is for, for, because of this
chart right here. This is the big dog, and the thing that's

important, about our energy independence. So, the far as I'm concerned, we need to be looking at crude oil for our energy independence,
because that's the economic import issue, that's what we drive our
transportation system with, and we don't have any other

alternatives right now. Sure, we could, we do, there are some
other options. We could run our transportation system on
natural gas, but we're not converting to that very
fast. They cost about $10,000 per vehicle for the re-fueling and converting the vehicle etc., etc.,

etc. So, unless we have a national plan, to get
off oil and get onto something like natural gas, it's just going to hap, it happen very, very, very, very slowly and maybe,

never. So, that economic value of these energy
uses, is an important thing to note. This shows crude oil insour source, crude
oil source. And to look at our energy independence
issue we see that, that we import about 60%, and we produce about 40%, and that's the crude oil. Now we import it from overseas, as well as
Canada and Mexico. So, this includes Canada and Mexico, which
we say you know, isn't too big a deal because they're
fairly friendly and stable. But if you look at crude oil percent of imports, you can see it has, it has dropped, thank goodness. It's dropped and it's from our peak. One reason is, is that, our use has dropped with the recession, when the economy goes down, we noted before, our
oil use goes down, in energy in general. So, this is a crude oil import, as
percentage of crude oil use and it's a significant
number and it's You know, by the way, in the two, 1970s,
when we were embargoed we were pretty, we were
importing less than 20%. We were importing less than 20%, that's
down here, okay? That's when we embargoed, and it
absolutely crippled the heck out of the economy. I know, I was around then and can go on
and on about, look it up on the web, see what that did to us,

and how we had to respond to that. Caused a recession and all kinds of problems, that we were importing 20% and now we're importing
about 55%, over 50%. Well, let's look at this North America in
US in total imports. Well it turns out, that we're importing
about a third of it from of, of outside the U.S. and we're producing from North America, we're getting about 66%. Okay, let me clarify that a minute. I didn't say that very clearly. North, from North America, we are
producing about 65% of our oil. 66-65% of our oil. From North American, that includes Canada and Mexico, and from outside, and this is, I didn't say
this bit well, from outside the, North America,
that should be, not the US. Outside North America, we're getting about

35%. So, 35% of our oil is coming from outside
of North America and 66% is coming from Canada, the U.S. and Mexico, so that, that's what the numbers show.
And when you get them from the energy information

by the way, all this data has been updated through the
year 2012. Liquid petroleum independence US liquid
petroleum production is increasing, with increase in natural gas
production, and it really is not an issue. We don't import a significant amount, as we saw before. So, we don't need to deal significantly,

with that. That shows the liquid petroleum sources. Now liquid petroleum of course, is not just natural gas liquids, that's oil and
everything. But since a lot of people talk about
petroleum, I wanted to show that data. And for, if you want to pursue it, and

extract anything you want to, out of it, which is difficult
for me. But the North America oil dependence in a
nutshell, is about 60% of our US oil is produced in North America. About 40% is imported, from outside the
US. Call it 65 and and 35, if you want.
It's in that ballpark. I'm just making the point that we're or,
still pretty in, importing a significant percentage of our
oil, from outside North America. And that has some concerns for us, where
is it coming from? This show, where it's all coming from. This shows that Canada is our biggest, import, export to the US. Mexico is next or approximately, the same

as Saudi Arabia. Now, we're getting, there are some
unstable regions here. So this, for this, this makes up 35 to 40%
of the oil, once we cut off Canada and Mexico.
So, Saudi Arabia, Venezuela, Nigeria, Russia, Iraq,
Columbia, Algeria, Angola and Brazil. I don't see many, many stable friendly countries, on there. There are, there are a couple that you can
probably, that you can probably count on. But just looking at, what's gone on in the Middle East in the last four or five years, certainly does not lead us to
believe that it's a fairly, that it's a stable
region, that is okay for us to depend on them, for

oil. And Ven, Saudi Arabia's the one that we
get the most from. Let me note something about Saudi Arabia,
because I, I pointed out before that, they've made a
big deal about the fact, about the fact, we may
produce as much petroleum, not oil, but petroleum,
as Saudi Arabia. Let me show you about, how good a
position, Saudi Arabia is in. Saudi Arabia has about 50 active drilling
rigs. That is, they're actively drilling to,
developing wells, to produce oil. And they're producing about 11 million
barrels per day, 11 million barrels per day. Plus or minus one or two, at the most. United States is producing about 7 million
barrels a day. This is oil. Make a, you need to start paying attention about, whether we're talking about oil or
petroleum. How many active drilling rigs do we have?
1500 produce 7 million barrels of oil. The have 50, to produce 11 million
barrels. They have so many reserves. We, it is estimated that we have about 2%
of the worlds oil reserves underground, that is yet to be
obtained, because it is a finite resource. And Saudi Arabia has about 20-25% of the
world's resources of oil. And we're consuming on the other hand, the flip of that. We're consuming 25% of the world's oil,
and, and we're only having reserve of about,
2%. So and of course the other thing is, is that Saudi Arabia, while they're producing
11, they use three. The internally, they use three, so they're
exporting about eight. we, on the other hand, are producing about

seven, but we're consuming about 15. So, we've got to import eight. So, you know, comparing it with Saudi
Arabia and Russia, who consume about three,
internally and export 70 to 80% of that oil, is not really, I don't

think, a meaningful thing, that you can draw many
conclusions from. So conclusions, what are the conclusions? US oil imports, about 40% of oil from outside North America, much of this oil comes from unstable regions. The issues, the economic impact on the US
economy. A billion barrel approximately $ 1 billion
a day, flowing out of the US economy. Flowing out of the US economy, that could
stay here for economic stimulus. Make a huge difference in our economy, if we can maintain, even half that money
here. And from a national security issue is,
we're subject to interruption and as we were, in the early
70s. When we say, oh that can never happen
never say never, I say. [INAUDIBLE] come about all the time, and
it is theoretically possible, and I think it's
very dangerous to assume, it can't happen. Thank you.

So in Energy 101, we're starting to reach the end of the energy sources section. and today we're going to talk about energy prices.
Now we talked about oil prices Before and how they're determined and the fact that it's a worldwide commodity and priced worldwide.
Whereas other things, like natural gas are priced regionally because it can only
be transported at a reasonable cost by pipeline.
Today we're going to look at the cost of all types of energy sources.
that we've been talking, been covering here we're looking at the, going back to

our reference diagram here. We're talking about the natural energy sources in order to satisfy The energy needs of society, we have to go find forms of energy in, that, that occur naturally in the Earth.
So, we're going to be talking about today the prices, of these, energy. Sources, and what are they? Just to group them a little bit differently, the Earth's energy supplies that we use in order to satisfy our energy needs are fossil fuels, categorizing them as coal. That is coal, oil, and natural gas. Coal, oil and natural gas are the fossil fuels.
And we chemically react those, of course, with oxygen in the atmosphere and release the chemical energy as heat in a combustion process.
So, but that, we get 82% of our. Energy from fossil fuels, 82%.

9% comes from uranium in the form of nuclear power plants. And then another equal 9% comes from renewable energy. The largest, component of that being biomass.
as we'll see here in just a minute. and we know that.

Wind is about 10 times what solar is. Hydro is significant and biomass is significant. but as we see on the next slide, you can
see it graphically, the percent of energy sources that we use that, come from each of these. Components this being fossil fuels,
nuclear fuels and renewable fuels. As I mentioned, 82%, 9% and 9%.
And I just thought it was worthwhile to show that to show how we're so dominant.

Dependent on fossil fuels that we burn and combust and then convert to other forms of energy that we're going to cover next.
and renewables are still a small category.
We broke those out earlier and you can see what those are but it takes a lot of investment And, and converse and process plants in order to convert from fossil fuels to another form of fuel. But what I wanted to do today is look at

the prices of these energies sources that we depend upon.
the prices that you see quoted every day. Let's get rid of all the scratching
there. the prices that you see quoted every day
and talked about on the news. Might be confusing sometimes and I wanted
to try to clear up some of the confusion that might occur.
We hear about oil prices. and oil prices somewhere around 90
dollars, has fluctuated. Gosh when I got into the energies area in
the 1970's it was as low as $2 a barrel, $2 a barrel.
Of course, the cost of living has increased and, and price, escalation has
gone up and that's, in today's dollars, that's about $8 or $10 a barrel.
But today it's about $90 and when it's high is about $140 to $150 depending on whether you're looking at daily closing or monthly closing price.
But it's fluctuated wildly as we'll see here in a minute.
you see natural gas quoted as of right now at the end of 2012 when I'm Recording this at around $3.50 per 1000 cubic feet. Now, one question that I want to try to answer today is, how do we compare $3.50 per 1,000 cubic feet of natural gas, with $90 per barrel of oil. we'll get to that here in just a minute.
coal you see quoted at about $50 per ton delivered to electric power plant.

I focused on electric power because that's where most of our, our coal goes.
We also use coal for making of iron and steel.
Processes and other industrial processes, but the problem I wanted to try to clear out is, how do you compare these prices because they're obviously in different units? It's a lot like pricing one thing in, in, by the dozen and another thing, another item by the single item. what does it mean there and Going on down

the list of our, these being the fossil fuels, those top three that all cost us money. You get people to get 'em out of the
ground and pay people who go in the ground, and transport 'em to us. nuclear, nuclear I don't want to get into the to the.

Nuclear fuel cost, is a, relatively complicated topic.
Right now, we're getting about half of our nuclear fuel from, the destruction of warheads from the Soviet Union, well the previous Soviet Union, Russia.
this, we had a nuclear treaty that to which they would disassemble and we would use the uranium that comes out of the warheads.
things get complicated so, but it's, it's inexpensive.
Relative to fossil fuels, its inexpensive by any Measure you want to make.
And of course, renewable energy's free. The sun's free, the wind's free the wood is grown naturally and just out in the woods and so the renewable energy is certainly nice but it's gotta look at the infrastructure and you have to build to utilize that renewable energy. so those are industry prices that you see
quoted today. But what do they mean on apples to apples
basis? well, in order to do that, we have to look at what, what are we using those fuels for. Well, we're using them to burn, as I mentioned before, for the heat back, how much heat that we get out of the combustive process, and we use that

heat for building energy. the heat buildings to, cook with.
For industrial drying, like carpet drying.
when you make carpets, you dye them. And then you need to dry them.
All kinds of manufacturing processes, we have to dry.
We burn it in our automobile engines and our diesel engines.
fossil fuel for the heat value, the more heat we can release in our cylinders and gas turbines and jet airplanes, the more power we get out so we're using the combustion heat and thermal energy, the heat energy and then we burn it in electric power plants and there again, we, the amount of electricity we get out is proportional to the amount of heat we get out of the combustion process.

So, since we're using all of these for the same purpose.
That is, to burn and produce heat. Then we want our prices on a per unit of
heat basis. And since we're U.S.
centric in this course, we'll price it on a million BTU basis.
And that's a number usage quoted in a lot of places.
Now what is a BTU? A million BTU's is, of course, a million of whatever a BTU is. Well, just for clarification, one BTU is defined as the amount of heat it takes to heat one pound of water up to 1 degree fahrenheit.
Up 1 degree Farenheit. So if you want to heat 1 pound of water
up 10 degrees Farenheit, then it takes 10 BTU's.
So, or a million BTU's will heat a million pounds of water up 1 degree
Farenheit. So that's what a BTU is and we'll.
Later I'll get into the conversions of BTU's to kilowatt hours, and, various
things that you see quoted. But, these numbers that you see in
articles and news, and hear on the television, that they quote, are
meaningless unless you know how that number compares with something else. Or there's a whole and put it, and could it be able to put it in context.
And, that is one thing I hope we can accomplish in this course, is try to put
all this information that you see and read of it, read on the news and in the
public media, put it in context. So that you'll have some kind of, you'll
distract some kind of meaning out of it. well here are the prices of the fossil

fuels per million BTU's, per million BTU's.
I've converted everything to a million BTU basis.

I've got it for natural gas, I've got it for oil, and I've got it for coal, which
supplies 82% of our energy that we use in the U.S.
I got it plotted here from 1998 to the end of 1998 to the end of not quite, it's
actually about the middle of 2012 but I show it for demonstration purposes.
This is, it starts off that the, in 1998 the red is oil.
Oil was about $2.60 a million BTU's, Natural gas was about $2 a million BTU's
right here. And coal was around a $1 a million BTU's.
Well, coal has been gradually increasing and these are actual dollars that you
would have paid in 1998 or 2003 and without any escalation factors for cost
of living. and you can see it's been pretty steady
over the years. natural gas has been rather erratic.
The blue line, which is natural gas Here is just a couple years.
It shot up from about $3 to about $5. That's almost double.
It went back down to about 2.50. And then it went up, all the way to $10 a
million BTU's. And since then, it has dropped back down.
And now, is, is around $3.50 at the end of 2012.
Well, what about oil? Well, if you look, oil and natural gas track pretty much, together. between 1998 and 2005.
But in 2005, a lot of it due to China's tremendous increase in the use of energy
and oil, in particular, the world oil price shot up.
And everybody was pumping as much oil as they could pump and it went to that's when oil went to $140 a barrel and which corresponds to about $16 a million BTUs and that was in early 2008 went up to $16 of,
There's actually a little higher than that, if you look at it on a daily basis.
and then the recession came. Many people will, will argue that the
recession, in the U.S. in particular, was due to the high price
of, of energy, because it extracted so many dollars out of the economy.
And that, then, put people in a tough, bad way in order to try to .
Decide to pay their home mortgages that they were, they were leveraged out on and everything started to collapse. But certainly price of energy was one
thing that had something to do with the recession.
the best way to kill oil price and oil demand and energy demand in general, is
have a recession. And that's what happened here, it went
all the way down to about $8 a million BTUs, it was cut in half.
And this is, again, these are prices I don't fill for the scatter that occurs on
a daily basis but this is just on a yearly basis.
And since 2008 it's escalated back up and and it, it went to about $110 a barrel which is back up to $16 close to $16 a million Btu's and then today is down
around $15 a million Btu's. Well the reason I show this chart is
because to look at what's the situation when we have, when we compare prices.
If you got a choice of burning natural gas or burning.
Oil, the choice is obvious. If you're interested in money which will
be in a free enterprise system and at US, in particular, we are and most of the countries don't want to spend anymore of their money on energy than they need to, you would switch everything to natural gas and because it's about four to five
times cheaper Natural gas is about four or five times cheaper compared to oil and coal is a little cheaper than natural gas.
But natural, when you start looking at all the ramifications, coal puts the
floor on natural gas because when natural gas gets that close to the price of coal, The, the power plants can turn on their natural gas plants that are not running
at that particular time, at night and other times when the load is low and cut
down on their coal. And so coal forms, forms a pretty much a
floor for natural gas. Oil would be the ceiling on natural gas,
and it fluctuates in between. But to give you an example of why don't
we fuel switch and why don't we using more of the natural gas in lieu of the

oil that we have. Well, then you get into the subject of
fuel switching. Fuel switching is switching, when you
switch fuels because one fuel is cheaper than another fuel.
And for instance, when, if you've got a fuel that's 4 or 5 times cheaper be nice
to be able to burn it for it's heating heat than burning the one that costs 4 to
5 times more. But what's required when that does not
occur is the infrastructure investment is too much to justify the reduced operating cost because, due to the cheaper fuel. And an example, and we can talk about many examples, but right now people talk about why aren't we converting gasoline cars to natural gas cars? and you can certainly burn natural gas in cars.
I was faculty advisor on a, on a student team that, competed in a, university competition that converted, A 1970's. This is a 1970's converted a car to run
on natural gas and drove it from MIT in Boston, to Cal Tech in Pasadena, California all the way across the country on natural gas.
it can certainly be done. But it requires conversion of the fuel
system to to or from gasoline or in addition to gasoline to natural gas.
That require high pressure tanks and requires somewhere on the order of 5 to
10 thousand dollars per car. 5 to $10,000 per car, the DOE estimates
it at about $10,000, when you include the refueling stations.
The refueling investment cause now you've got to have filling stations all around the country to refuel. So, fuel switching makes sense.
But if, you don't have to make too much of an investment to make the switch to

switch from a more expensive fuel to a cheaper fuel.
But I wanted to cover that before we left energy sources to look at the
relationship between natural gas, oil and coal prices on per unit Energy basis which is what any user looks at when they are trying to determine what type of fuel to use if they're capable of using a different fuel in what they're doing.
House heating is another one. You can heat it by, heat your house by
oil, you can heat your house by natural gas but, today, anybody that has natural gas pipelines running down the, close to their home has a hopefully switched over to natural gas because it's it's for so much cheaper.
It's just another example. Few cases where natural gas pipelines are
not available to the home and they had no choice but to stay on, on oil up in the northeast in particular. Okay.
so that, that covers the the pricing of energy and the relative value. Take care.

Good afternoon, back to energy 101, and
today we're going to talk about world oil price.
there's a lot of discussion in the press and the media about oil price.
Particularly gasoline in the U.S. has gone to $4 this fall.
Of course I'm recording this before the actual offering of the course starting in January. But oil, when gasoline hit about $4 a
barrel, people, and in the election also at the same time, people started talking about we need to do something to bring the price of oil down, and gasoline down. so it I want to make the point today and show the data and the information as to why the U.S. doesn't have its own oil market that
prices, and we determine the price of our oil.
The reason we don't because we don't produce all our oil that we need and there's a world price that everybody the world over pays essentially the same price. Europe pays the same price for oil landed
in their port as Japan the same as the US.
The same as, as Australia so it's the world oil price.
Now, you, you kind of get mislead on that particular if you travel to Europe, and you're paying $8 a gallon for gasoline or diesel fuel and over here you're paying $4. You say well oil is more expensive over
there, oil actually is the same. They pay the same for oil in France,
Germany, Europe in general as we pay. the difference is taxes.
They have about $4 a gallon taxes on their their gasoline and deisel so that,
that, Is the reason their gasoline costs so much more.
It's an energy policy issue with them. They have very little oil for their transportation system. They import essentially all of it so trying to reduce
the consumption of it like we try to reduce the consumption of cigarettes, we
put a lot of tax on it. It causes more efficient cars to be
built, and purchased, and, but the actual oil price we're going to see worldwide is essentially the same, it's what we call a fungible commodity.
It's that fungible just means that it's, a commodity that it's, oil is oil is oil,
which isn't actually quite true. There is varieties, there's brands and

there's. crude, but the, there's light oil there's
different grades, but essentially they, they are all priced very similar.
It's a fungi, fungible commodity like steel and it's traded and shipped
worldwide, throughout the world. And the reason the price is set by world
market and not by the local market is because the shipping cost is small
relative to the cost of the product. It cost 2 to $5 to ship a barrel of oil
across the ocean and that is small compared to the $100 that you're paying
for the actual product. So, because the shipping cost is low
compared to the cost of the product, then that, that means that everybody pays about the same because it's really is a free market place, the world over.
And even though there might not be a free market place within a country itself for many things in the oil trade world wide, it is a free market place.
here's just a map to give you an idea of where oil flows and where it's shipped. we look, you see there's a lot of arrows going into the U.S.

Here's the U.S. over here.
And you notice all the arrows coming in there? you notice there's arrow coming from Venezuela, we purchase a significant amount of oil from Venezuela.
We purchase a significant amount of oil from Mexico and this one is an arrow representing oil coming into Canada. from Canada.

So, and then, what's the origin of them over here? Well, here's Nigeria, Nigeria is shipping a lot of oil. you notice this component is coming to
the US. We get a significant amount of oil from them.
We we get it from the Middle East over here.

And which is all bundled together up here.
Saudi Arabia, all these arrows come in and to the US.
they also ship, the Middle East also ships oil to China over here.
China is, since about 10, 15 years ago, China has consuming more oil than they are producing by significant margin and therefore they have to import significant amount of oil as we do. So Japan, Japan has very little oil of
their own. That they can produce essentially none,
and they have to import al, almos, almost essentially all of the oil and gas they get. So it kind of gives you an idea of the
how much of the oil is traded and shipped around the world.
They're actually in some cases, oil is produced and put on a large tanker.
And starts across the ocean before it is actually sold.
because they know that, that there will be a need that, a need for it.
And they just sell it to the highest bidder while it's on the high seas.
So, it's, it's amazing world commodity.

I wanted to point out that, there is one area that is great security concerns, to the U.S and to the rest of the world also.
Not just the U.S. and that is a choke point.
There are several choke points but the major ones, where oil has to go through. For the, rest of the world to get its oil and the major one is the Strait of

Hormuz. And, there, tankers move through that
Strait, and there's a narrow Strait, it's a couple miles wide, and, therefore it can be blockaded with very little effort, compared to trying to block a, what's coming across the Atlantic Ocean, for instance.
but there's about 17 million barrels per day, that is shipped through that, that strait. And that, that strait is bordered, and is

the, and basically, controlled by Iran, is the one that dominates it, and United Arab Immigrants has also got a small coast on it but it's, the Strait is
dominantly controlled by and dominated by Iran that concerns a lot of the security people. this 17 by the way is is not an

insignificant number compared to the world's oil supply.
That's 17 I just put the fact that world oil supply and demand is about 75 million barrels per day. There again, I'm, I'm talking about oil
when I mean oil. It does not inclulde the natural gas
liquids and every other product that's classified when you add it to oil is petroleum. You have to watch that, it's missued.
Oil is attached to a lot of numbers that you see.
That it actually says oil when it's really the numbers of the total
petroleum, which is a confusing factor. but that, that's, that strait is right
over here. The Strait of Hormuz, whoop, and right

here. Well, if I get it here.
right here, right in the, middle of the screen, and right here.
And it's only about two miles wide, where all the tankers come through there, and about one third of all the oil that is consumed and produced in the world, comes through that strait. It's a, it's a frightening number, about
30% actually. It comes through 25, 30% of the oil that
is used and produced in the entire world is shipped by tanker right through that straight and that's a security concern to a lot people, just want to point that out that it is a world commodity and fungible commodity.
But that leads to having to have free shipment of it around the world.
so, how is the world oil price determined and what affects it? Well, OPEC. Produces about 30 million barrels of oil a day.
I've already said that the total world oil production in consumption is about
75, so they produce 30 million barrels per day.
And they adjust their production. OPEC adjust their oil production to meet
certain targets. And their target, now, is to, just their,
their oil production to control the price of oil between 90 and $100 a barrel.
It's very difficult. it it control it exactly because demand
goes up, and demand drops off for various reasons.
And, and it takes them a while to respond.
Once they decide to increase it, it really takes, on the order of six months

for the increase in production to get to market, or the decrease production to
start taking away the glut on the market. So there's a delay time there, and by the time The impact of their increased or decreased production.
Gives the market place the demand has already changed by a positive side or negative side. But this is a plot that demonstrates how
they basically influence the market. The blue bars down here is the OPEC production target, and it's the million barrels per day change from the previous year. These, this bar is how much the
production, how much the production changed For that month compared to a year ago that same time. So, they increased production, this was
an increase in production but this was a, a decrease in production.
The red line, the red line shows the price of oil, the worldwide price of oil.
By the way, WTI, I couldn't think of it a while ago, West Texas Crude is the other major crude oil that's traded on the market, and Brent being the other one.
but you notice that the price of oil, this is the percent change This, this
price over here, scale, shows the percent change on a year to year basis.
So this, this side shows the where the blue bars, shows the million barrels per
day of the production targets that OPEC has set and, and, and generally Abide by, and this shows the percent change in price.
Well you notice when they reduced out here in early 2000, reduced the quota on how much oil they would produce, the price was low and it started up, and it,
and when it started up, its it got up to where there was as much as a 50%. Changed from the previous year and price, and so they started increasing then the quota and increasing the oil production by as much as 4, 3.5 million barrels of
oil. Per day compared to the previous year.
And then it was fairly stable and then price started to going up again, right
inhere and they increased the production in order to try to bring it back down again. And, so you see it's a tremendous
correlation. Here's another one, prices got low.
They don't want prices to get too low, it affects their, their cash flow and so
they decreased, decrease the amount of oil by, compared to the previous year by about 4 million barrels per day, down here.
And drove the price back up. So there's concrete data here that shows
that OPEC does. Carry a great influence and have dominant
influence over world markets. Because it's a very, very price inelastic

situation that you don't have to change supply very much in order to change price dramatically, because you people have to for instance, drive to work, so when price goes up From $3 to $4. They can't use less than they can cut
down a few things. But they got to commute to work, which is

probably their biggest gasoline consumption.
So it just shows that the world's oil price and the A market is greatly
influenced by OPEC and just to give you an example of this, this week, that I'm recording this, there was an article in the Wall Street Journal, 12th December, and OPEC held their meeting in Vienna. Which they normally meet in to set these

targets. And they so, they don't make it a secret
as it's shown here it came out in the press.
OPEC on Wednesday maintained its oil production ceiling of 30 million barrels a day and extended the tenure of its secretary general for a year in the face
of a forecast decline in demand for the group's oil.
So, the point is, is that they do set these quotas and they do have meaning.

Now the discipline of the member countries is varied, depending, with how
they meet these, abide by these quotas. But as we've already pointed out, or I think I did, the members produce about 35% of the world's oil and the OPEC members are Saudi Arabia, Iran, United Arab Emmirates, Kuwait, Nigeria, Iraq, Angola, Venezuela, Algeria and Qatar. but the thing we have to realize is that
they are not all created equal, so to speak and have equal weight.
Saudi Arabia dominates the OPEC. Production.
Why do I say that? Because this data right here.
You see that this is the percent of total OPEC production produced by each of the countries. OPEC member's production in 2011.

Here's Saudi Arabia produces over 30% of the total OPEC members oil production. Number 2 is Iran, that is less than 10%. United Arabs Emirates is about the same, about 10%. Kuwait, Nigeria, Iraq, Angola, Venezuela,
Algeria and Qatar and the others, that's not all of them, about three I think

others. But they are less than 5%.
But the point is, is that Saudi Arabia's the big dog on the, on the block.
and many times, it is noted that, people that follow this very closely.
That, Saudi Arabia is the one that actually enforces for themselves with
their oil production, the quota. And the rest of the countries.
Don't make much adjustments in their oil production and supply they pretty well maintain at their maximum production rate but but but Saudi is left up to Saudi Arabia which they can easily do with having over 30% of production.

That is they take on the responsibility of abiding by the, seeing that the total
Oil production is in line with the quota. So in conclusion, the US oil price is set
by world supply and demand. Increasing US oil production does not
have a significant effect on world price or US price.
In other words, we can increase, are increasing somewhat.
Our oil production, but it has a s-- very small influence on the world market because we produce a small, and the increase is a sm-- very small percentage
of the world market. And as a matter of fact, if it did have
a, start having an effect, Saudi Arabia and OPEC members would decrease their supply and keep the price where they Where they want it.
but basically, and I have down here OPEC, but in parenthesis Saudi Arabia who is

the big dog along the OPEC block, is controls that, the oil price by adjusting production. One note that I wanted to make, that this
is totally different than natural gas. Natural gas price is not set by world
markets and the reason is not Is because, natural gas is a gasseous form, it's low density. And, and, it's, it is shipped by

pipelines. Well, you don't ship oil across the
Atlantic or the Pacific in a pipeline. You, and so the cost to ship natural gas
is very high compared to the cost of the product.
It essentially doubles at least the cost of the product when you add shipping.
And the reason it's so expensive to ship is, if you ship it as a gas, it takes up
too much volume. And you have to cool it at minus 260
degrees Fahrenheit to liquify it. And then you have to put it on a special
LNG tanker, that has to be specially built and maintained and in order to ship
it, and that is an expensive proposition. So I just want to make a note that oil
world, oil markets. Is, are different than natural gas
markets. Natural gas markets are set in the North
America, Canada, US and Mexico because we do have pipelines that ship natural gas between these countries overland in North America.
Thank you.

Energy 101, we've been talking about the
natural resources that we have to drive our energy system and we've been, been talking essentially about fossil fuels, coal, natural gas, oil and, so let's,
let's look at some renewables like solar. Today we're going to want to look at solar energy resources. it's a new ball game when you start
talking about solar and wind and, as renewable resources because with coal and oil and gas and that kind of fossil fuel is very convenient, you can just fire up your, your plant, whatever you're fueling with those.
Fuels. And crank 'em up and run 'em wide open.
You control the throttle, so to speak. You can run 'em wide open, you can let
'em idle. You can, just like your car.
And you have total control. That's what we call dispatchable in the
electric utility industry. But in, whether it's your, your home
furnace, you can turn Turn it up and down and keep your home just the right temperature, but when you have solar and wind, the sun doesn't shine so brightly all the time, and the wind doesn't blow strongly all the time.
So it's, we have to make sure that our, the way we use these renewable energy systems can accommodate that up and down resource.
And that it comes and goes. In the case of solar, of course, it The
sun only shines on the average of about 12 dollars a day.
And doesn't shine any at night. So that's the problem right there.
and then you have clouds. But the, how much solar energy is there
available? We're looking at it as a resource here.
That the striking the Earth. That we can figure out, so we can figure
out how much there is. And then we can determine.
How to use that energy to strike in the earth.
But, there's about 300, at noon on a clear day, so if you've got no clouds,
it's a nice bright shiny day. And at noon, and the reason it has to be
at noon is because that's When the distance that the sun has to travel
through the earth's atmosphere is the shortest, you can imagine when it's over
at an angle, in ea, early morning or late, it's shining at an angle ,uh, on
you through a longer distance of atmosphere gases.
And, that attenuates the sun somewhat so it's always brightest at noon, assuming there no clouds, because that's when the Path link through the, the, the atmosphere is the shortest. So, we, at noon and on a clear day with
no clouds and low, low water moisture, if you look directly at the sun and point a surface. Direct one square foot pointed directly
at the surface, so that it's perpendicular to the surface, to the sun
rays. You'll get about 300 BTUs per hour
falling on that one square foot. Or in metric units, is one kilowatt per
square meter. And they're about 10 square feet in a
square meter. So there's about a tenth of a kilowatt
per square foot. If you want in kilowatt units or 300
BTU's per hour. Falling on 1 square foot.
So that's, that's the best you can do at, at noon on a clear day.
But now it's decreased by clouds and the angle from early morning to late afternoon. So life gets complicated whereas when
we're trying to calculate even how much solar energy is available as a resource. But the good thing is it's free. We don't have to pay anybody for it.
Like we do, fossil fuels in particular. Affordable tax is, really come on the
forefront with, dropping costs in the last couple of years.
And this is just showing 1 installation on a house roof fairly that's fairly
typical on a house. When I say typical, it's a typical good
one. The house is obviously, and, looks like

design 4. the collectors, the house was oriented so
it's facing south. And, and the angle of the roof was such
that it collects the most energy sunlight, over a year.
so, the, thee, this, the best angle. The tilt, because the sun, and, depending
on the time of year, is either high in the sky, or low in the southerly
direction, if you're in the Northern Hemisphere.
But the, ee, for the best annual solar resource falling on your collectors, you
want to face the collectors due south, and you want to tilt them up from the horizontal Of, a, the, the, number degrees equal to your latitude.
In Atlanta, where I am, the, our latitude is 35 degrees, so to get the most solar energy falling on a flat fixed surface, we tilt the, the collectors in the
southernly direction. 35 degrees, of course on the equator a
horizontal collector will collect the most sunlight over a year, and this is on
an annual basis. If you're trying to optimize it for
January and you don't care about the summertime, then the angles are
different. If you wanted.
Optimize in July, then the angles are different.
But over the annual average, the latitude and the geometry that shows that, the geom, the best geometry is to have it tilted from the horizontal in the
southerly direction. And, of course, the other limitation.
You can't have any trees. Here in Atlanta, most of our residential
areas were blessed with a lot of trees in one way.
But then, you get a lot of shading. And, so, how, where you can use solar
energy depends on the site, the location, and the orient, the orientation of the house. another way we utilize solar energy is
what we call solar power tower. There's several ways.
I'm just pointing out the two big ones that we'll talk about now that's
expanding commercially and fairly rapidly.
And in this case You've got thousands of mirrors that you see down there.
This is made from an airplane looking down on this circle that's probably 1/4
to 1/2 a mile in diamater. So it's a large large installation and it
produces electricity and of course the photovoltaic cell produces electricity.
The sun shines directly on them and the solid state device has wires running to
it, it produces electricity from that. in this case, the sun is reflected by
these mirrors. That each 1 of these little dots are
mirror's, on the surface of the earth. And they track, they have 2 access
tracking we call them. You can orient them in any direction you
want to. So a computer program makes those mir,
mirrors track, so the sun light falling on their mirror, Is reflected off of that
mirror on to the top of this tower. And on the top of this tower there's a
boiler, a steam boiler, just like in a steam power plant fueled by coal there's,
a boiler and a hot Fire oil sustained in this case all the sunlight that is
reflected onto this boiler heats the boiler up to very high temperatures and
boils the steam. So this is one that you've seen built and
several of them being built right now as a matter of fact out in California in the Mojave desert and Arizona and those places.
The first ones were built back in the 80's.
Technology has been around for a while. So for large scale solar, this is a
pretty cost effective way to produce electric power.
But again, it produces electric power from a conventional steam power plant cycle. But it's using The sun to heat up and
boil the steam that's reflected from these thousands of mirrors rather than a
fire that's burning fossil fuels. so, how much, how can we calculate how
much energy strikes a solar collector surface? Well, as I mentioned, it varies, varies by day of the year because that's dependent on where the sun is in the sky. And but let's look at the annual average. Energy per day falling on a fixed

collector tilted south. Now this includes weather situations
cloudy days, rainy days, night of course. And so it's the average and it varies by geographical location. And it also varies by your solar
collector orientation and your tracking mat, method.
if you have Two Axis Tracking, where it's always looking directly at the sun, well, that's the best. if you have a Fixed Plate Tilted South At
the Latitude, which we've just been discussing, that's another option, or you
can, sometimes you may only have a Flat Horizontal surface or you want to put them on the side of a building, and it's only a vertical surface.
[UNKNOWN] In our, energy building, the carbon neutral energy solutions building that we just built here at Georgia Tech, it has some constant, some photovoltaic collectors on the horizontal awning surface as well as on the vertical
surface as well as on the roof tilted south so it's got collectors mounted on
one new building with 3 different orientations.
But, so, how much energy Solar energy falls on a square foot or a square meter
on an average day throughout the year is, can be calculated, and it depends on where you are, in the U.S. You can see here, that, over here in
Arizona and New Mexico, you get the, the maximum.
Solar energy falling. And over in [INAUDIBLE] in Florida and in
the northwest, you get less solar energy falling.
And, So, that's a,
Excuse me. yeah.
And. There's a scale here, the maximum we get
is about 7 kilowatt hours per day on average for the year, 7 kilowatt hours
per year out here in, Arizona, California, New Mexico.
and when you move to the lighter yellow areas Then it goes down to the minimum in the US. Like, up here in the north, you get about
4. So, there's almost a factor of 2
difference in the amount of solar energy falling on these collectors.
depending on where you are in the US. And notice, it says at the top.
This is, annual in the right, upper right hand corner.
So that's the annual average. It's also the.
Flat plate, tilted south at the latitude. So it's not tracking, it's fixed.
But it's as majority of the collectors and the solar system installations are
mounted in exactly this manner, tilted to the south at the latitude they're fixed.
Well, how might we calculated. We can actually calculate this for your,
your, or, your location. and by going to a US Department of Energy
National Renewable Energy Laboratory called NREL.
out in Golden, Colorado, and, it's a laboratory of the US Department of
Energy, and they've got an interactive on-line map.
So let's go to this, interactive on-line map The web address is as you see on the,
on the, in the blue here. http it's a long, long one.
Hopefully you can click on it and it will take you there.
You can copy and paste it into your browser.
So I have my browser up here. At that location, and this is the first
page. U.S.
Solar Radiation Resource Maps. So you probably want to stop your video
and pull this page up at this point, and then come back.
And we'll walk through how to use this to calculate, whatever situation and orientation and geographical location you might be.
Be interested in. The first thing you can do is you can,
select the data type. You can select average, which is noted
there right now. You can, select the minimum or you can
select the maximum, for the day. The maximum for the day or minimum for
the day on, on the average. You can, you can look at the The,
selected by the month. You can pick one month, January through

December, or you can pick the annual average.
You notice for this chart that I had up and the previous slide.
I had selected, as I mentioned to you, the average, annual average, and I
picked, and, and, and I wanted to see the annual and not the minimum or maximum for a particular day. and now you can select the orientations,
they have a lot of orientations, more than I mentioned to you.
you have single axis tracking concentrator.
This is just tracking one axis rather than two axis, which of course is cheaper
but is more, than two axis. More expensive than a fixed collector.
And so, there, there's several Single Axis Tracking options here, and you got
two Axis Tracking Flat Plate right here, that always will make the collector look
at the sun, but of course, it's got to be mounted on a, on a tracking device.
It's got electric motors that's controlled by computers, that always
keeps it looking flat, straight at the sun.
And, you can do the 1 that I, that most, most installations are using.
A flat plate [INAUDIBLE] tilted south at the latitude.
And that's the 1 that I had selected to generate the map that I just showed you
before. you can pick the horizontal flat plate
down here. Horizontal flat plate that if you've got
a horizontal surface and that's all you got and it's the cheapest way to install
them, then you could look and see the penalty for mounting them horizontally
versus tilting them southern, south at the latitude angle.
Of course, if the equator, the horizontal is also the optimum.
you can look at the south facing vertical plate, flat plate, on the south facing
wall. north south access tracking they got alot
of options here. I won't bother to go through them.
But if you look at the horizontal flat plate I'll pick something different.
On this one, and the map that I showed you earlier, and you go down here then
and you just make those three selections and click view map and now you, you get
this map and you get a as you see there.
And, you get the kill it down here, you get the kilowatt hours per day.
It, it runs from 10 to 14 kWh/m^2/day. The color was none of this on there, all
the way down to the darker blue, which is 0 to 2.
And of course, again, the Southwest, which is where you see a lot of
installations is the best, and then as you move north in this situation, they,
you're getting further away from the equator where the horizontal is optimum
and you collect less and less energy or you, less of the, the solar energy
strikes the surface So that's a, that's a nice interactive web site so you can look
at your situation and look at any kind of tracking option or mounting option that
you might be interested in. Thank you.

So today we're looking at solar
resources as part of the overall energy resources we have available to us. And today we're going to look
at the interactive map of how to create maps to find out
exactly how much radiation and solar energy is available to us to
utilize to meet some of our energy needs. It's a little bit difficult thing
to calculate because there are so many variables that the amount

of radiation depends on. It depends on where
you're located on a map. What latitude, longitude you're located,
both altitude makes a difference. Time Of Year makes a difference,
panel mounting and orientation of that mounting
makes a difference. Two Axis Tracking always
facing the sun is the best. We can fix the panel, which is
the cheapest way to install them and tilt them up toward
the equator at a fixed angle. That means if we're in
the Northern Hemisphere, we're tilting them up to the South Pole. If we're in the Southern Hemisphere,
we're tilting them up from the flat horizontal
surface toward the North Pole. And we can also have Fixed Horizontal
Mounting, flat on the ground. Or we can have vertical mounts
on the sides of buildings. Again just to remind us
what we saw last time, this is what we're talking about here and the tilt angle we're talking
about is this one right here. This is the tilt angle that we refered to. And this diagram is written for the Northern Hemisphere. Because it talks about tilting it to
the south, that's gonna hurt you, if you're in the southern atmosphere and
you tilt it to the south. But it's drawn for
the Northern Hemisphere, US-centric in other words,
because it's done by the National Renewable Energy Lab
of the US Department of Energy. So we can refer back to that if we get confused about some of these
choices that we're going to make. Now we're going to use
an interactive map that they have, interactive website that
produces a map such as this and to show you what we're going to get. And each one of these dots on this map by the way, represents an experimental data point. In other words they have solar radiation at all of these points. And they use that to correlate the data,
and so the map corresponds with that. This is the scale that tells
us what the colors represent. In other words, this yellow, of course,
means that on an annual basis, this one is done on annual basis, creates
5 to 6 kWh per square meter per day. And this area is the light green. So that's 4 to 5 kWh per square meter per day. But now that's not every day obviously,
it's not gonna be that. Winter's going to be less
different than the summer. But on an average basis, cloudy days
will be less than sun shiny days. But on annual average basis,
that's how much solar energy will strike a square meter about 10 square feet,
on a daily basis. A kilowatt hour is 3413 BTU per
hour if you wanna convert that. So that's what we're going to create here,
and another example. This one is, the last one. This one is, I didn't mention, is the tilt angle is tilted up to the south, being in the Northern hemisphere of the US
at the latitude and an annual basis. The next one, Shows it for a Two-Axis Tracking situation. Where we're always facing
the panel toward the sun and we're looking at the best month so
I took the best situation here. And you can see that from the scale that
we're receiving a lot more energy through July and if we want to pay the extra
cost of the two-axis tracking mechanism, we'll have a lot more energy
strike in our collector that we can hopefully
convert to something useful. And all in the south,
you can see it's around 7 to 8 kWh per square meter per day. So you can do your trade-offs and determine where it's worth your while to pay for our two-axis tracking system. But things are much more
uniform across the country if you do a two-axis tracking
situation as you can see here. Out here, even in the North West, you're out there at the high point of
10 to 14 kWh per square meter per day. Those are the maps that we're

going to create here and we do that by using
an interactive online map and this is the link right here. We'll get it in a minute. This is the link, and I think if you
click on it, we'll have it come up. Okay, when we go to that
link that's on that slide, this is where we're directed to. And as you can see here, we got
several choices that we need to make. We need to select the data type. Do we want the average, the minimum case, or the best case? Then next we can chose the month. What month that we're interested in or we could choose the annual average,
which is usually what I pick. But, let's see. Here we go. What's clicked here is January. And what I showed you before
was the annual average for all of these months of the entire year. And the first map that I showed you
was for a flat plate down here, tilted south at latitude,
tilted south at latitude. So we go down and we click View Map
to see what it looks like. And this is the map that I showed you
before and that I've already had run. So you can create your own
situation if we go back, to create the second map that I mentioned. We can look at July. And July, rather than the annual average,
which is the best month, we can also look at some of the worst
months, being say January, if we like. And look at the single axis,
not single axis, but Two Axis Tracking Flat Plate. Now let me just mention here,
it's got two choices, Two Axis Tracking Concentrator and
Two Axis Tracking Flat Plate. The reason there's a difference is because
a concentrator will only reflect and concentrate at the point you want it, the direct radiation coming directly from the sun. There's some diffuse radiation
that's coming from the atmosphere that gets scattered as the sun is
coming through the atmosphere, so there is less energy coming
as direct radiation that a concentrator can deal with,
than if it's a flat plate. So that's the reason there
is the difference there. But there's a difference between
a concentrator and a flat plate. Here we're talking about a flat plate,
is what I've been talking about. I created the high side
that had all the red on it. Using a Two Axis Tracking Flat Plate and
looking at the one month of July, and if I look click View Map,
I come up with the map that I showed you before where it's
more uniform across the country. Much higher the radiation
intensity per unit area. With the scale down here, shown, goes from 10 to 14 out here
in the West down to the tan, which is about 7 to 8 over here all up and
down in the East. So there's some real advantages to being
tracking and of course being in July. We can look at that. Let's just look real quickly
at what it looks like for annual average if we do
a two axis tracking. We go back and
Return to menu and we go down. And we look at annual
average rather than just July that we just looked at and
we'll do the two axis tracking. Two Axis Flat Plate again,
the only think I've changed from the previous case was annual,
rather than July. And in that case you can see
that the annual average is significantly higher out
here in the South West. So there's some real differences in the
characteristics of the amount of radiation that's available to you depending
on where you're located. So that's the interacting map for
the US and I hope you find it beneficial. And by the way,
if you click the PDF version, up there at the top, it will create a, before you [INAUDIBLE]. I got some software problems on that,
but you can show it as a PDF and download it and it's a little clearer,
cleaner picture. But that completes the interactive solar

map that shows you how to determine how much solar energy is available to us in different situations, in the US at least. And their means to do that
also any place in the world. Okay, thank you.

Okay, welcome back to the Energy 101. Today we're still talking about energy resources, and, we've looked at, oil and coal and natural gas and a lot of, lot of others. re, some renewable energy and today we're,
let's look at the. We've looked at solar resources but let's

look at how, those solar incoming, solar incoming sunlight is being converted
into electricity by solar PV and how it's being deployed and actually built out
there. You hear a lot about this topic and, the
advancements that's being made, how the cost is coming down and, how, what a
clean, good resource it is. So let's look at some data here. fir, first let me point out, three, three things here real quick. Number one, a lot of this information is,

comes, and I've got it referenced generally on the slide,
from, Bob Margolis out at the, the DOE's National Renewable Energy
Lab out in Golden, Colorado. And this was a presentation he made in,
back in June of 2013. And InRail has, great information
regarding all of the, renewable energy resources,
and the, markets, and how many, how much is being deployed, and what the costs are, and etcetera, etcetera. So it's a good place to go and Google and find, lot of good data on renewable energy resources. The other thing I want to point out is, units, sometimes, we get a little confused on units. the, this is where we want to talk about
megawatts of power and over here is the M W, megawatts on the vertical
scale, and that's, we'll convert that to gigawatts and kilowatts here in the next slide, to
make sure we don't get confused. But, this shows the growth in solar PV
that's been installed out there from 2016 out, excuse me, 20, 2006, to 2012.
I go to, the whole year. This is put together in the latter part of
2013, and the 2013 data is not out yet, but, I like to update it
on an annual basis. But, the, this is the trend and has been
the trend. It's actually shown by state. And the, the legends are shown here to the
left. You can see that only a few states make up most of the, total
number of installations in power generation is that from the,
solar PV. Just make sure we got our units straight
that we know, we know what they mean. we, we talk a lot about kilowatts, we talk
a lot about megawatts, we talk about, a lot
about gigawatts. So, how they relate and make sure we know
the nomenclature? Well, in PV, we, you hear a lot about
watts. well, it takes 1,000 watts to make a
kilowatt. And a kilowatt is one and a third
horsepower, so if you put a thousand watts of power into an electrical motor, it can ma, it
can produce up to about one and a third
horsepower. So that's when you talk about watts of,
[UNKNOWN] will take energy. It's, not much energy, it's one, 0.1% of a horsepower basically.
So it'll, a kilowatt will power about, 20 50
watt light bulbs.
The average house for relevance has, a peak demand of about three kilowatts, when
it's pulling its peak power. And there, a thousand kilowatts makes up a kilowatt, a megawatt. Megawatt, or MW, we call it. And like we had the kilowatt being a KW.
And, a gigawatt is 1,000 megawatts.
So we have a gigawatt, going smaller to a megawatt, to

smaller yet to being a kilowatt to a tho, smaller, yet
being a watt. And there's a thousand difference between
each one of them. So it takes a billion watts to make up a,
a gigawatt, it takes a million kilowatts to make up a gigawatt, and a
thousand megawatts to make up a gigawatt. Now again, just to get things in
perspective like we were talking about, it takes about three kilowatts to make up
a to power a house at it's peak power. The typical electric plant will be
somewhere on the order of 500 to 1000 megawatts. They're smaller and they're also larger. The coal-fired plants will tend to be out here in the larger, 1000 megawatts as will
nuclear. Nuclear and coal are generally the
largest. Natural gas, turbines and combined cycles
will be around 500 megawatts or less. And, but that's, that's the size of
typical power plants. So hopefully that puts things in
perspective. You can refer back to that if you forget. How many, units they're are, converting
the units your used to. Before we get too into, too excited about
this, this amazing growth rate that we have,uh, and the
amount of PV that's being installed, let's, let's put it, put
it in some perspective. And we can do that by looking what, how,
what fraction of the total amount of energy that we use because
we're, we're looking at all the resources. And we of course have,have looked at the,
coal and the natural gas and the oil and the nuclear and the biomass and the hydro and the wind and
the, solar.

And here's the geothermal, hot, hot, steam
coming out of the ground. You notice solar is this very, very thin
gold sliver here. So solar makes up about 0.2% of the total
amount of supplies, about 0.2% of the total amount of energy we use.
0.2%. So, this growth rate on one hand, you
know, is very impressive, and obviously if we're
going to get to a significant, get a significant amount of our energy
from solar we've got to have these kind of growth rates or
even larger. So, three megawatts is, not a, not a huge number when you look at it in the

perspective of the, being, in the,the total amount of
energy that we use from all of our energy
resources. the, so we're, what type of installations
are these? Again, this comes from, Margolis at the
InRail, and a residential has about, 1,416 Megawatts of installed power
non-residential 2.9 utility. Non-residential will generally be the,
commercial like a warehouse as you hear, you see a lot of solar being put on these very large distribution warehouses, places like K-mart and Wal, and Wal-Mart

and IKEA and these kind of businesses that require very large distribution warehouses. And they have very large roofs, or some nice, clean, sun, sunny area to put, put them
on. So it's, and, and then of course utility.
People like, that produce and supply to you all the way at the home to with electrical, excuse me, electrical power.
So, it's not a third and a third and a third but it's fairly close for the amount
of, solar that's being installed.
And is installed on, in, in different types of application. What about cost? Because cost is always

important because,
as we have to be reminded sometimes that the we operate in a capitalistic free

enterprise economy, as long as, of course, you meet regulatory, reg all the regulations. And so, cheap, the cheapest type of energy
that has the characteristics that you're looking for, will of course,
win. Now if your looking for something with

zero CO2 emissions then of course that, you
have to compare all of the price of all of the energy that's producing zero carbon
emissions. But let's just look at some relative,
prices, for the different types of installation for P,
solar PV. And, here I've got it in dollars per
kilowatt. A lot of times you hear it in dollars per
watt. And of course you just divide it by 1,000
to get that. So residential installations now are,
from, in 2012 came in about $4.30 per watt or
$4,300 per kilowatt.
That's down about 50% from 2008, which was $8,200. And that's totally installed, turnkey installation. That's not module cost. Module is just the module that comes out
of a factory. It's three feet by five feet, area and,
it's black, and it's got wires coming out of
it. And you're seeing it's got glass on the
surface of it, and you put sunlight on it, and it
produces electricity. But you gotta install that onto a roof, or to some kind of mount. And you gotta connect the leads up to a
converter that converts the DC, that comes out of the module to
AC, etcetera, etcetera. You gotta get permitting, you gotta have
labor to install it, so on and so forth. And commercial is a little cheaper, at
about 3,500. Again, that's down about 50% from, 2008,
in only four years. And utilities, is down a little cheaper at
3,000. Now, the major reason for this cost
decrease going for residential or commercial utility is the
size of the installation. there's, size scaling here. So the larger the installation the cheaper
you can get it per unit of output. And that's typical in,in most
applications. So, that's the current cost and how the
cost has come down, the expectation is, is this
cost is plateauing, now and, and decreasing at
a much, much slower rate than it did the last four
years. And the, this dramatic decrease started
occurring really in about 2008, when the recession came on,
the, even the world recession.
And, some of that was because there was a lot of, cost reduction or because there
was a lot of excess silicon, wafer capacity to, because the chip
industry declined so much. Markets climbed, and there was a lot of

excess capacity to produce the, silicon wafers, and that cost came down.
There was a tremendous over, production capacity. So, But, where they're, now, of course,
that, that defect is, is over with. So we'll see how things proceed in the
future. As I mentioned before, solar PV, as well
as most any energy issue, is driven by economics, and what
does the economics depend on? Well, the economics depends on the price
of electricity to the consumer that he
normally is getting. If he's getting very cheap electricity
from his electrical supplier, his utility, then, and, and, the PV or renewable electricity comes in twice as high, then
he's got to decide whether he's willing to pay that much more
money for clean electricity. Another one, of course, is, is subsidies. There are federal subsidies and there are
also state subsidies. states, in some cases will, give the in, purchaser, installer, owner, up to 35% of
the total cost of the, install cost to the, solar
facility, the total cost. Federal substitutes, which is of course a
uniform across the state, is about 30%. Now these two get added together if you're
in a state that gives 35, and you also get the, 30, so, so basically two thirds of
the cost of the installation is paid for by the, by subsidies and
you're not paying for it, taxpayers somewhere down the line are paying for, up
the line, are paying for it. The other thing, and of course affects the
ec, economics, is solar resource. As we saw in our resource module, the solar resource does vary across the
country. And, of course, the, the higher, solar
intensities with the clearer skies make, means of the
same module and system will produce more electricity and, the, those states then,

and the cloudier states, and the, with cloudy
weather. And this state by state variation is, is
shown here, with, the fact that California has the most installations and they have high subsidies and they have high
electrical prices. And they have clear weather. Arizona, also has, fairly high subsidies
and clear weather. New Jersey has high subsides and high
conventional electricity, that they're, uh,the solar has to compete against the
competition, for existing grid. Electricity is less intense, because of
the fact that it's, more expensive than

national average. And the next four states, is shown here in
the blue. So, there's a wide variance in state by state, impli, deployment for the solar PV installations. And this shows that distribution.
And in some ways, this is, what this does is show the economic viability
if the, the total installed cost of the
system is $2500 per kilowatt, or $2.50 per watt.
We saw that, that, that's about 50% below what it is now for residential and,
because it's now about, $4.00 or it's a little less
than 50% lower. And the, if it gets down, and if you can install it, which you can't now, unless there's some special situation. And this, by the way, is unsubsidized
cost, unsubsidized cost. Then, these states, Arizona, Nevada, California
on down the, Texas in the Southwest, Florida in the
Southeast, Wisconsin up in the, up in the North, and
then of course up in the Northeast, and one thing that drives the Northeast
even though the weather is not very clear, as a whole; It's has high conventional

electricity and grid prices, that it can, is competing
against. So, the light blue, would be where it is
competing, within 25%. In other words this cost about 25% for PV
electricity. Amortized of course over the life of the, the system, compared to conventional electricity. And the grade is, the states that have, a
economic situation that cost for PV would be,uh,
significantly greater than the grid parity, grid cost if it reached
$2.50. But I'll point out,uh, we see, we've seen
that it's currently $4.00 and it would have to drop about 40% in order to
get it down to, to 50. And we'll see if that'll happen and how
fast it happens and of course if, if the conventional
electricity from your grid goes up then that that'll make it even
more difficult and means it would have to come down even
more. So, that, that's pretty much the
deployment situation of solar. You hear a lot about it. I wanted to put that in some perspective. Thank you.

Greetings, back to Energy 101, and another exciting day in energy resources. We're going to look at wind today. We looked at solar last time,
we looked at the fossil fuels. We're looking at the renewable
energy resources, before we know how to use them, we need

to know how to get them, where they are, how much there is, and
how diffuse they are. So, let's look at wind today. Wind energy is the biggest contributor from renewable energy of all the sources,
much more higher than solar, and much higher than the renewable biomass, so it's an important renewable energy resource. The way we reap the energy, of course,
the wind energy, is with Wind turbines. Here's just a shot of a small wind farm. On land wind farms are generally fairly small, relative to offshore wind farms,
which we'll look at also. But unless they're out in
the middle of the desert, which, of course, is good because they
generally have good wind resources, high average winds out in the deserts. This is an offshore wind farm
that is very prevalent in Europe. Here's a shot of, a beautiful view,
when you go out and look at them. I made a trip in 2005 I guess it was, '06. I went over and visited several of
the offshore wind farms in Europe. Of course servicing
them is more expensive, constructing them is more expensive
out in the water than on land. The one good thing though
is it's easier to ship, they're very long blades that you have. And so you notice they're on pilings. And those pilings, of course, put them up off the surface of the Earth,
whether it be land or water. And one thing we find is
that energy resources. The average wind speed increases
with a height above the. Our surface of water or land. It also varies with
geographical locations. Some areas meteorologically have a higher average wind speed which is what we
want for a high energy density and last resources versus other
geographical locations. I just mentioned height above
the surface of the earth turns out very important as we'll see. So we'd like to him up
on a very high piling. Well that's economically that's very
viable when you have a very large wind turbine, because the pylon is only 15% or
so of the total cost of the wind turbine. But, if you're putting up a small one
horse power kilowatt size turbine, if you put it up too high,
you'll be spending more money on your pylon than you
will on the wind turbine itself. But, of course, it varies by weather. If you get a stormy condition
you get high winds. If you get a calm it's calm. You have differences in night and day
because of solar heating of the Earth, and of course by that where Rory said
the different geographical locations. So again and it varies by the way. The averages vary from Winter to Summer. It's the opposite of what sometimes we
might assume regarding month of the year, is that the average wind
speed is generally almost, all the regions,
is higher in the winter than the summer. That's good if you have a peak demand for
electricity in the winter for heating versus summer but
when you get into the south, for instance, you would like to have more
electricity, and need more electricity, in the summers for air conditioning. So wind energy, in particular, where
you have summer peaking energy demand, electrical demand, it doesn't
really match the annualized load. But we'll look at the annual average
on wind maps like we looked at the wind maps for solar but they're a

little more straight forward because this time it doesn't depend on the orientation. We can always point the wind
turbine into the wind. These turbines will pivot around
the pylon on huge bearings and so they're always pointing into the wind. And that's not a big deal. By the way, you notice the blades. In that case, the case we're

looking at here is pictured that they're basically
perpendicular to the wind. So that's in the stop lock position. If the wind gets below a certain speed,
or it gets above a certain speed, that could cause damage to the turbine. They turn the blades into the wind and
lock it down to prevent damage. But, let's look at how we classify winds. You classify winds by wind power
class one through seven, and that indicates the range
of wind power density. And that's the watts per,
when it says there of Class 1, 0 to 200 watts of kinetic
energy in the wind per square meter of the area that
you're capturing of the wind. So if your rotor blade is
in its circumference and this circle is capturing 10 square meters, then that means that the total watts of kinetic energy or power in that 10 square meters is up to 200 watts up to 2,000 for
the class one. The power density is
a little bit non intuitive. You would think that the because

of the kinetic energy, we think about as always
one half m v squared, that as the wind speed goes up the power
would go up to the square of the velocity. But it actually goes up with the cube, and
the reason it does because the kinetic energy per unit mass of air
goes up as the speed goes up. So if you double the wind speed
of kinetic energy per unit mass, goes up by a factor of 4. 2 squared is 4, 2 times 2. But the power density goes up by
the cube ,because the amount of mass is flowing through the wind turbine
goes up in proportion to the velocity. So the power density in
watts goes up by the cube, which really makes the higher
wind speeds pay off liberally. Because if you double the wind speed,
the power that you get out of the turbine in kilowatts, a given turbine,
will go up by a factor of eight. If you double the wind speed, the power coming out by the generator

it goes up by a factor of eight. So it's really sensitive to wind speed,
the economics of wind farms is really, sensitive to wind speeds because
of that cubic relationship. We'll look at that a little more later. Here's a wind map. Again, this one comes from NREL. They got good map resources. And we've said that it varies with
the wind speed as this one shows. Varies with the height above the surface. And this is about at a 100 feet. So, wind maps aren't any good unless
you know at what height this is taken. This one,
as you look across the top up here. If you look across the top
it's at 30 meters. The U.S.
annual average wind speed at 30 meters. They're about 3.3 feet per meter so
that's about 100 feet. That's 100 feet above the surface. Looking at the diagram,

looking at the map, we can see that over
here in the Southeast, where I am, in Atlanta, it's dark
green which is way down here where the average wind speed is
around four meters per second. That's not economical. You can get electricity from
a wind turbine at that speed, but the economics are really not going to
work, by any stretch of the imagination. If you get out here and get the red areas, now you're up to about seven meters
per second if we looked there. If we take meters per second. Times 2.5 you get miles per hour. So, a wind speed of seven,
I mentioned that there the orange and red out here is about seven, six and
a half to seven meters per second. Well, that's two and a half times
seven is about 17 miles per hour, so that's a pretty good wind speed,
on average. That's the average wind speed
24 hours a day, 365 days a year. Sometimes it's higher than 17 miles
per hour, but sometimes it's lower. So you can see why the wind turbines
tend to be out here in the midwest. And over here again at 100 feet above the surface out here in the northwest there's not much. Now there are some regions,
particularly around Portland area, that does have some good wind speeds. But that's a very localized situation. Let's move up to a higher height now. Let's move up to 300 feet because
the new larger wind turbines are place on pylons about 100 feet. Now the color coding for
the wind speed is exactly the same as it was in the previous map. Same color coding. Get it here in a minute. Same color coding that we had before, but you'll notice the dark green is
essentially totally have gone away. So the lowest now that we're showing
even in the southeast is around four and a half, five meters per second. So, that's 5 meters per second is with the lighter green here would be
about 12 miles per hour. Average speed of 12 miles per hour. That's still not really
economically viable. But you notice you got to spend some money
they put it up on a high pile on of 300 ft, 300 ft is a football length in

height above the surface of the earth. It's 80 m,
80 m again getting some conversion factors is 3.3, 3.3 to give you feet. So 80 times 3.3 is about 270, 280 somewhere in there. I use approximate signs, we don't need to
get bogged down in decimal points here. But you notice,
your really out here in the Rockies. You really get some high wind

speeds out there around, above eight, nine meters per second. Which is averaging over 20 miles per hour. Now, this also shows offshore,
but the previous slide didn't. Shows offshore, but the first thing to

notice about the offshore is that as soon as you get to the coast and move offshore. Looking over here in the Atlantic coast,
the wind speed goes up because when you look at the chart it goes up
dramatically compared to on land. And so on land you really don't have

any commercially viable Wind energy, wind resource out in the Eastern coast,
there. But, as soon as you move offshore, you get some dark purples that
are the same as it is out here. But, as I've already mentioned,
unfortunately it takes more money to build the turbines out in the ocean, and
requires more to maintain them. Same way on the west coast. But another thing you gotta be worried

about when you putting them offshore is the depth of the water. Current technology's 75,
100 feet depth is about as deep as you,
we've really go now with the pylons. The next slide, this one shows
the just offshore by itself. But you can see again, same chart here, and, see if I can get it, there we go, same chart and this actually shows miles per hour as well as meters per second here. But that's the reason offshore

looks a lot better and people are pushing trying
to get more offshore wind. The first offshore wind farm in the US
has been permitted only recently. That hasn't started construction yet. This cape wind off of Nantucket, and hopefully we're supposed to
be operational 2014 or so. They've had some obstacle
they've had to overcome. But offshore wind has
a good potential because of the high resources offshore relative
to on land as we see from these maps. And if we go to the source of these maps, we find NREL again, and you can
download these and take a look at them. This is the page here. It's got all the maps and it's got some
low resolution and high resolution. You'll pick the map [COUGH] and
take a look at it yourself. And we'll have you do that. Okay. So, that gives us an overview
of when resources and why a lot of the wind farms are out
in the Midwest and Southwest, and why they are not seeing any wind farms in
the southeast and east coast in general. Okay, thank you. See you next time.

Today we're summarizing the energy sources that we've covered and we've covered a lot of' em, and just to put things in
perspective going back to where we started we started with this diagram and we broke the whole energy indust,

industrial sector up into three pieces. One, what we use energy for and why we want it. Number two, which is what we're
summarizing right now and completing. And that is, where do we get our energy? And I call it natural energy, because
that's the, or the Earth's energy sources that are available
just naturally from the Earth. Because we can't generate energy from nothing. And so, we're going to summarize the second
section of this three part course really, three parts

in the course. And remember that, that we use energy and
classifications residential and commercial which are buildings used
for heating and cooling and lighting. We use it for industrial manufacturing to
make things like cars that we want to buy. And used to make life better for us, or
more enjoyable, and we also want it for transportation so we don't have to pedal
in, you, and our bicycles and provide our own
motive power. And then we jump down to number two, to,
okay, since we can't generate this energy from
nothing, we gotta find it. Where are we getting it from? And that's where we are completed at this point, and we'll look at the su-, summarize all of
the places a-, and put it in perspective that we get this
energy from that we utilize. Just from a a quick, quick view here.
We get about 36% of our oil, of our energy

from oil. And 26% from natural gas, and 20% from coal.
And so, this of course makes up the biggest chunk of the, our energy supplies, and those are hydrocarbons. And they all of course produce carbon
dioxide our carbon emissions that is linked to global warming.
And we then, the, you get to nuclear and that

of course is, is, comes from uranium that we dig out of the ground and that supplies about 9% of our total amount
of energy. This is a total amount of energy, not the
percentage of hydrocarbon. But the total, those don't add up to those
do not add up to 100%, of course. Continuing on the renewable resources add
up to the 5% of coming from biomass, wood, corn,
ethanol, etcetera. Hydro Dams that produce hydroelectricity
is about 3%, notice the numbers are going down significantly from the fossil fuels that
we, hydro carbons that we just looked at. Wind is about 1.2, geothermal the hot
steam coming out of the ground that we put through power
cycles and to get energy from it, and solar that,
where we talked about the, also, which is about
0.2%. So you can see even of the not only is
solar in particular low at this point in
renewable sources, but it's also, of course, much, even lower when we look
at the total, look at it from the perspective of
percentage of our total resources. And this is the pie chart showing those
numbers that I, that we just covered in a pie chart just
displaying them in a little different way. And with coal, with coal being 20%, gas
being 26, oil 36. Nuclear 9, biomass, hydro down to solar which is 0.1%.
And 0.2% approximately. So that's, that's where, this pie is where we're getting our energy from that we want
to use to make life better for whatever
reasons that we want to buy a car rather than
walk. And this looks at it on a bar chart graph. That again shows the same numbers but it displays them differently. And from the, from coal to oil. And you can see that oil is of course as we saw the 36% which is the highest. This one actually chose, shows the changes

in the last ten years from the blue being 2002 and the red
being 20, 2012. And you can see that we've dropped the
amount of coal we're burning. And that's primarily due to two things. Just the reduction in natural gas prices
that the economics is driving. The utilities to shut down some coal
plants. And, and run there natural gas plants more
as well as the new construction. Because of there, of what they expect to
becoming regulations and even some regulations that have been
announced, that are under consideration. To make it very difficult to meet the carbon emission regulations with coal
plants. Natural gas has gone up. Maybe not as dramatically as we might have
thought, because of the low price. But I think that's my personal opinion of
that is that the PR that put out about our natural gas, and how that's changing
everything is a little bit overblown. Things are never as good as they first appear, but also, thank goodness, things are never as bad as they first appear. But I think the gas bubble is not quite as good, as we might first thought. We'll see. We hope so. And oil has actually gone down, and that's due to several things, recession is one of that,
one of those. If we're not driving as much as we used to even though we're coming out of the recession. And number two is efficiencies are up, of
car mileage is up here in the US.
And the mileage standards have gone up significantly so we're just getting more
driving out of a, a gallon of gasoline. Then we drop way down to nuclear, nuclear
is about the same. Biomass is up.
Hydro is up slightly. Wind is was essentially negligible in 20 2002.
It's as you can see significantly, on a bar in 2012.
Then geothermal, and then solar. Solar is there you just can't, it's so
small, you just can't see it. It's 0.2% over here, so you can see 0.2%
would be pretty small. So that's the relative sources for our energy.
And we've covered each one of them. And we will move on now to talk about the
conversion situation. You know, how are we getting the energy
converted from the natural resources that we are using, that we just covered, converted into the forms that we want
them. That'll power our lights. That'll power our computers. That will keep our houses warm in the winter and cool in the summer. That will drive our cars to give us the transportation as the energy conversion devices and technologies like engines and light bulbs
and power plants, and heating systems and air
conditioning systems, etcetera. So we'll look at what the status is. What the technologies are. What the hope is for improving those, and what the trends are.

In this module of Energy 101 we're going to talk about the energy
conversion. We've talked about the ways that society
uses energy and the, and where we get that energy from.
We'll talk about why, why society and where society uses it.
We'll talk about where the natural forms of that energy comes from,
because we can't create energy out of nothing.
And now, we're going to talk about energy conversion that converts the energy from the natural forms that we find it, like coal, and natural gas, and nuclear, and
oil, and wind, and solar, and hydro, and all biomass, and all the natural forms
that we find this energy in. But it doesn't do us any good unless we

can convert it from the form that we find it in its natural state to a form the society wants it. So that's where we're, where we're headed
on this module. let's break that conversion process down
a little bit further. on the left here, we have the,

again, the natural forms of energy, that we find them in the natural state.
And we have the society uses that we, the he, the, have them, that we want to make like more comfortable. Heat and work and chemical energy,

cooling energy for, and electricity. But now let's talk about the energy conversion process to convert those. The devices, the infrastructure, the equipment that's necessary to convert energy from one form to the other are fossil fuel power plants like coal power, power plants, natural gas power plants, nuclear power plants. Nuclear is not fossil,
but moving down to nuclear. the auto engine converts gasoline that comes directly from oil. And the diesel engine for, takes diesel
fuel that comes directly from oil on essentially a one to one energy basis,
and drives a car for transportation which is in the work form.
Natural gas furnace heats our homes, air conditioning keeps our homes cool. Pumps pump the water from the wells into our bathrooms and our kitchens, so, and take showers, so we don't have to haul it by, with buckets.

the refrigeration system preserves our food so we don't have to shop everyday for fresh food. And then the light bulb converts
electricity to light which the electricity of course has to be, is, of
course produced from from the power plants.

So these are the conversion processes and the equipment.
One thing that I'll note here. That we can't just change getting energy
from oil, gas or coal for instance to produce heat or electicity that we want
in society without changing the equipment that's necessary to make the conversion. And that, that infrastructure is a huge investment, it's a huge economic
investment. So that's one of the problems with going
to renewables from the, from coal, for instance, or nuclear, is because we have
to, to replace the infrastructure that we're currently using to convert coal or
natural gas to, the forms of energy we wanted, to a totally new, conversion
process requires all new equipment and these, these this is like trillions of
dollars in order to do that on a national basis.
just one note that we need to be aware of there but these, that conversion process is what we're going to focus on now. the, the conversion process has some
natural laws that govern what can be done and what we can't do. And this isn't a science course, and I'm not a scientist, and the philosopher to talk about, why
the laws are the way they are. They're natural laws that, the way, the the Earth
is made up. gravity pulls down, not up.
We don't debate why it doesn't pull up why it pushes down.
same way with the natural laws of energy conversion.
And those natural laws are divided into 2 primary laws.
The first law of energy conversion most, many times called the first law of thermodynamics and the second law which we'll get to in just a minute.
So in this module we just want to introduce these concepts but the first
law of thermodynamics or the way nature makes us operate is that energy is conserved. As we've already commented we can't
create nor destroy energy. Total energy cannot be created or
destroyed, and so we can't produce it from nothing.
And yet, too many times our intuition tells us, well why can't we get energy
from all of the molecules bouncing around in the atmosphere for instance.

But it just doesn't allow us to do the that even.
but the first law of thermodynamics is, we can only, we cannot produce energy, we can only convert it from one form to the other.
that's a major issue, so when we talk about breakthroughs in energy technology. It's merely a breakthrough to convert energy from a new form that we can find
it, like solar energy or wind energy, into a form that we want it.
we haven't discovered a new form of energy.
That wind energy and solar energy was always there. We merely developed the technology and the infrastructure to convert it.
trying to give you a little bit of intuition on this.
The analogy that our intuition, probably a little more consistent on is total mass cannot be created or destroyed. You can't just annihilate energy, mass,
nor can you create mass. We can have a chemical reaction and
change one changed mass from one type of form to another.
But the total mass, stays the same. You can take two components and react them, but the resulting mass is going to be the sum of the two that you started
out with. So that's the first law to thumb
dynamics, which makes a little bit of intuitive sense, if we think about it
from that's similar to the mass of conservation.
The second law of thermodynamics is even less intuitive than the first might be. And, it really says all forms of energy do not have equal value.

whereas a kilogram or a pound of mass is equal to another kilogram or pound of mass, they may not have equal value. Well, the 2nd law of thermodynamics, or the 2nd law of energy conversion has a similar statement about energy.
There, forms of energy have, some have higher value than another form and that's just the way nature has built the universe.

And we can't get around it. We've known this for 150 years And
there's no, no new discovery. First law of thermodynamics is 150 years
old. The second law is about the same.
And so we have to operate with those laws of physics.
but as an example, work energy or electrical energy has a higher value than
Than warm air or hot air energy. You may have an equal amount of energy in
each, but they aren't of equal value. Again, taking an analogy from mass, is
that even though a pound of gold is equal in mass to a pound of silver They are not

of equal value from lot many perspectives.
And you can't just change 100% of kilogram of silver and one kilogram of gold.That just doesn't work that way. So, those are the two basic laws that control our energy conversion from the natural form that we want it, that we find it to these forms that society wants it, and we'll delve into those a little deeper in the next two modules. Thank you.

Energy Conversion: First Law
Today we're going to be continuing on our
energy conversion. And we're going to dive a little deeper
into the first law of energy conversion that I covered very briefly in the last lecture. And show some examples and try to get a
little better understanding of what we're talking about and what the, what the

limitations do to us regarding the first law of energy conversion.
That say's you cannot create or destroy energy.
and we're dealing with the middle box here, where we're, converting energy from one form that we find in it's natural state, to the form that society Needs and
wants they're willing to pay for. We've already been over this diagram,
looking at all the infrastructure that we have in order to carry out this
conversion process. And repeating the 1st law, total energy
cannot be created or destroyed, it is the 1st law and That, that sometimes comes a little surprising, because a lot of times in the press, and the media, and the
public, we talk about producing energy. but when we produce energy, we're always using energy on the other side somewhere. There's got to be an energy input before we can produce it from our hot air furnace or from our, with our automobile
or for our wind turbine or something. There's got to be an energy source in
order to produce energy. So we're not, we're never creating
energy, we're only converting it again from one form to the other.
So I can't say that enough. Now there, to dive a little deeper we
need to understand what types and forms of energy we're talking about here.

What all, are some of the different forms that we typically deal with.
Well work is one of the, one of the most valuable forms that we have and that is, as an example, is a turning shaft that turns the axle to our car with a torque
on it that drives our car or when we pedal our bicycle, we're turning a shaft
that powers the rear wheel that pushes us up a hill or against the wind resistance as we ride our bicycle electricity is another form of energy.
And there of course, that's a current and voltage that's carried over a wire. Electricity is a very nice form of energy.
Because it's one that can be transported over long distances very efficiently. Work, you got to have a shaft. And to carry that work from one place to
another. Of course, you don't want to have a mile
off shaft to carry work from one place to another.
But we can produce electricity at one place and carry it over a mile long power line. And then use it to power an electric
motor on the other end. And that can produce our work.
So electricity is one that. That is a very nice form of energy.
But, of course, we don't find it in a natural state.
We always have to generate it from some other source.
Kinetic energy is one that we're probably, fairly familiar with in, that
regarding a moving car. you have to put energy into the car from
when you're at a stop light in order to accelerate it to 25 mph to get to the
next stop light in, in traffic. so it has kinetic energy and then if,
unless you're dealing with a hybrid car, you put your brakes on which produces friction and turns that kinetic energy into heat.
That heats up the breaks and dissipate that energy, that kinetic energy.
Dissipate it into thermal energy or into the atmosphere.
So it's wasted, so to speak. we put it into the card to create the
kinetic energy but then we don't get it back out.
The hybrid car uses a generator to. link into the brakes, and the braking is
done with a generator that generates electricity then and stores it in the
battery to accelerate when we get ready to start back up, from the stop light. thermal energy is and, and that's sometimes we call heat.
This one that a warm cup of coffee is contains thermal energy.
Any kind of, of object that has a temperature above ambient temperature. Whatever the ambient atmospheric temperature is at that point in time.
If you have any substance at a temperature higher than that, that's what

we call thermal energy or heat. Hot air, hot coffee, or warm house
inside. All that's thermal energy.
And it's another form of energy that we want and like.
Hot water to shower with is another place where we have thermal energy or heat, as sometimes we call it. chemical energy is one that's in the, the

chemical make up with our, our electrons bonded to the other molecules into the nucleus of our atoms and molecules and, we can carry out a chemical reaction and release that, chemical energy, or we can create more chemical energy by putting energy into it driving the chemical reaction to increase the chemical energy.
So gasoline is 1 that is an example there.
Gasoline has chemical energy in it. And we carry out a chemical reaction of
that gasoline with oxygen in the air. As we saw the formula when we Talking about oil and, that releases, that chemical energy as thermal energy, or
heat and can, and produces a very high temperature flame, that when can use to heat homes or to heat hot water or Drive a power plant.
Radiation is the final example that I give you and that's of course the best example is the sun's rays that, radiation coming from the sun is radiation energy. You also feel it in front of a fireplace, if you have a.
Wood burning fireplace then, and you have a lot of hot coals.
Those coals radiate that, and that's thermal radiation we call it.
But the sun rays of course, that radiation is 1 that we use in solar

energy to produce electricity or produce hot water to heat our pools and.
The things, so those are just some of the forms of energy and we can convert these forms from one to the other, as is shown here.
So we put energy into some kind of energy conversion system that would design to take that form of energy. Work, electricity, heat, chemical energy
kinetic energy, potential energy, etc., and, and convert it to some other form of work, eletric, that is one of the work, electricity, heat, chemical, kinetic,
potential, etc. for instance, you can take you can take
work, and put it into a generator, electric generator and electricity comes
out of the generator. So that's one of the energy conversion
processes. That we do a lot in, to produce
electricity. we might put heat in by burning coal in a
power plant, and dry, and boil steam and go through a cycle that produces electricity also kinetic energy is I already mentioned, an automobile is one
of the best examples of that. Potential energy, if the automobile is
high on a mountain then it has potential energy.
As it, and gives up that potential energy as it comes down the mountain or comes

down the hill and you can Easily convert kinetic energy from the dropping potential energy as you coast down the hill with a bicycle or a car.
So we got potential energy coming in on the left hand side and kinetic energy as a vehicle, or bicycles speeds up as you come down the hills.
So all of these, these are energy conversion processes.
Some of them are more complicated than others.
Some of them are more difficult to execute than others.
But they're very important to use the energy forms that we find available to us
on Earth. To.
produce the forms of energy that we want in order to make life more comfortable. taking an example, and I mentioned the bicycle coasting down a hill, That converts the potential energy to kinetic energy and I just put some numbers on here to show, you don't need to know how to make the calculations.
Some of you probably do but just as an example, if you have a 10 ft high hill
and you coast, coast down a hill this 10 ft high and you have no wind drag or wheel friction, varying friction and rolling friction of the tire on the
surface. Then you could, the vehicle, the bicycle
would accelerate 17 miles per hour. And that would be true for a car as well
as for a bicycle. It would be, it's irrelevant of the mass.
in the metric system, if it's a 3 meter high hill And you coast down it, you'll
can ideally create 28 kilometer per hour speed.
but that's the ideal, that's the upper limit.
If somebody comes to me and says he can do better than that, then I am very skeptical about something because, it, it's, it someway energy is being created from something else. Are created from nothing, so this is the
upper limit if we have a friction-less process, ideal friction-less process with
no wind drag and no rolling friction. but total energy is not created.
Energy is merely converted from potential energy to kinetic in this, so this a, a good practical example, one that you could probably intuitively understand.
But of course, we do the opposite when we, when we climb back up the hill. We're adding potential energy to ourselves and to the bicycle so that we
can coast down. On the other side.
Another example is we take natural gas chemical energy and we burn it with the oxygen in the air. Furnace is shown on the right hand side,
that's a typical warm air furnace as we call it in the US.
The European Western European and in other countries.
Don't have as many of the warm air furnaces, they have more water radiators. But this one burns natural gas and releases a chemical energy into a flame

and that warm thermal energy is then transferred to the air that's circulated from the house and fed, then blown with a fan back into the house.
So warm air heat is added back to the air in the house.
from the chemical start what, the energy that started off as chemical energy in the natural gas. So, the gas furnace is a nice energy

conversion device. Converting chemical energy to chemical
energy or heat. [SOUND] so those are some examples and
trying to get a little better handle on what we mean when we talk about energy is conserved. Total energy conserved not kinetic energy
is conserved or potential energy is conserved or chemical energy is
conserved. But total energy of all of the those
added together of the Earth are in our box that we're dealing with.
you can't, can have more energy coming out than you have going in.
Okay, thank you. Next time we'll deal with the second law
in a little bit more detail. Thank you.

Energy Quality
Hello, we're going to dive a little
deeper into the second law of energy conversion today.
we are covering the energy conversion section where we're dealing with energy converting from one form to another. And the laws of nature that we have to abide by in order to make that conversion.
And the, whereas the first law talks about energy in has got to equal energy out. We can't create or destroy total energy.
This one has to do with the value of energy if you recall, that when I just summarized it very quickly. That is like even though you have a pound
of gold and a pound of lead, they have different values.
Well, if you have one kilojoule of work, and one kilojoule of thermal energy, they have the same energy but they have different values in most cases.

value from a thermonamic value, and interestingly enough, the thermonamic value ties with economic value. work and electricity will cost, if you're
trying to buy it, will cost you a lot more than natural gas, for instance, to produce heat. So when we say value, it's not just

thermodynamic but also economic value, Many things have what we call a quality that we arbitrarily assign to them of one, which is the highest quality.
Work, electricity, kinetic energy and radiation all have a quality value of 1
and then we downgrade anything that has quality value less than these to some lower number than one. and work of course we, we produce it with

a power plant. Electricity we produce it with a
generator, kinetic energy, wind turbine. I hadn't talked about this one. wind turbine of course, takes the kinetic energy out of the air.
Or extract some of it, not all of it. And extracts the kinetic energy from the wind and uses that kinetic energy to rotate a shaft to turn a generator to

produce electricity, which a wind farm does.
Radiation we produce, use that radiation energy from the sun to produce electricity with a solar cell. and then we have thermal energy.
That one, thermal energy is the oddball here as unfortunately are just a fact that most of our energy comes from fossil fuels which we burn the fossil fuels to produce thermal energy or heat. In order to get the energy out of.

So most of the energy conversion processes that it, somewhere along the
line involves thermal energy that we've extracted or heat or we've extracted from burning fossil fuels, and that value vary, of that energy, that thermal energy
or heat, varies with the temperature Of the object that, has that heat or thermal energy. And, of course, combustion is what
produces the high temperature that has, that has the high thermal energy.
now, unless this is a rather complicated slide, but let me, let me just walk
through it with you here and number one, the thing we want to notice is the vertical scale of high up has higher quality and low down.
On the bottom, has 0 qualities. So we go from 0 quality energy to high
quality energy of 1. And, you know, if you've got 3000 degrees
fahrenheit, you're somewhere right here. The lower the temperature, the lower the quality is. So Quality and temperature go together.
Here's temperature on the shown scale on this side and the quality value on that side, but high temperature increases the quality of the thermal energry.
and work and electricity of course are up here, they're up there with a quality of one. That's the work and electricity which is
the most valuable in things we have to pay the most for when we want them.
The the lower temperature examples of the lower temperature thermal energy. That we want and use, is cooking. Cooking doesn't have to be at five, 3000 degrees Fahrenheit obviously. We burn everything.
But cooking is not so high temperature. Hot water for our showers is only around 30, 40 degrees Centigrade. And 100, 110 degrees Fahrenheit.
space heating is very low, relatively speaking.
So you're talking about a house that's maintained at 22 degrees Centigrade or 72 degrees Fahrenheit. And, when the outside temperature is,
maybe, 0 degrees centigrade or 32 degrees Fahrenheit, so that that is low quality energy, which is good if that's what we need because it's cheaper and easier to get. The lower the quality is of the energy or
the thermal energy in this case The cheaper it is, and the easier it is to
get and convert and produce. and at ambient temperature, we have zero
quality. Now, here's 1 thing we have to
understand. There's a lot of energy in the ambient.
Air. The molecules in the air are bouncing
around and that will with thermal energy at ambient temperature.
So there's a lot of energy there. A lot of energy.
But it has no value, has no value. I'll give you a quick story I, a,
[UNKNOWN], sheet rock we call it here in the U.S.
Sheet rock manufacturers came to me one time and wanted to help him, or take a project to deal wall boards that makes up the inside wall of houses.
And put something in the wall boards that would.
Take the energy out of the ambient air, and produce electricity to drive the
house. And he was convinced this was the grate
idea. As a matter of fact when I told him I
couldn't do that and it violated all the laws of nature.
He actually went to the president of the university and he had to be the vice president of marketing and tried to force me to, to take it.
But you can't, can't violate the laws of nature.
so there's a lot of energy in the ambient temperature air.
But it has no value. Has zero value.
Zero quality over here at ambient temperature.

They go together, even though there's a lot of thermal energy there, there's not anything you can do with it, nothing you can do with it.
So, you can study this in a little bit and again, high temperature, high quality up here, low temperature Zero quality and decreasing value.

you have .1, .2, .3, .5. You go on up the scale and energy value
as you move on up to a higher and higher temperature.
combustion flames have pretty high temperature and have pretty high quality

of the thermal energy in that flame. Let me.
Okay, so here's, here's what the second law of thermodynamics tells you, you cannot do. There's a big X here, tells you, you
cannot do it. I cannot, no one can.
Cannot take low, quality in here. Again, this is high quality.

It's vertical in the highest part of the scale and, and low quality is the bottom part of the scale of the graph. I put heat in at a low temperature.
You could even say, well I'm going to put it in an ambient temperature.
And I'm going to convert it 100% on a one on one basis to electricity of work. Does not violate the first law of thermodynamics.

I put in one unit of energy here and I get out one unit of energy there.
So I have not created or destroyed energy.
But the second law of thermodynamics will not let you do that.
Why won't it let you do that? Why does gravity pull down? I don't know.
We just observe the laws of nature and don't try to figure out why the universe was made the way it was. but this is, the, one of the reasons the

2nd law is so misunderstood, is it's one of the very few laws, as a matter of fact as far as I know, the only one. And that is totally stated as a negative statement. You notice that the first law is energy
in has got to equal energy out, because you cannot or destroy it, total energy. But this one merely says what we cannot do.

Well, when we stop and think about it, there are an infinite number of ways to make a negative statement. I'll give you one of the, the most
obscure ways that you hear connected to the 2nd law alot.
And that is, the [INAUDIBLE] of the universe cannot decrease.

Well, that, that's a true statement, but, it doesn't give me many, much intuity of understanding what the 2nd law says you can or cannot do.
But you hear many, many, many different statements of the law, all of them negative. And onto the equivalent you can prove any

accurately stated negative statement of the second law from any other.
Any negative statement of the second law could accurately state it can be proven from any other. And so that's one reason that intuitively
it's a little bit harder to graph. And it's certainly is not intuitive that
you can't do this, let me give you a very fundamental example.
If I have a hot cup of coffee, if I have a cup of coffee and it's at room
temperature, I bring it into the classroom and I set it down, and it's
cooled down to where it's ambient temperature, 70 degrees farheinheit or 21 degrees centigrate, and and I say I want a hot cup of coffee.
Well, there's nothing that says that some process won't Cool the ambient air down a little bit and put that thermal energy into the cup and make the cup hot, hot
coffee. That would be increase in the quality of
the thermal energy in the coffee, but it won't, can't happen.
You've never observed that to happen, it'll always cool down.
We can go from high quality energy to low quality energy very easily and as a matter of fact, the universe moves in that direction.
but we cannot go from low quality energy and up to high quality energy with no other net effect. With no other net effect.
And notice, there's nothing else going on here.
1 unit of energy, low-quality thermal energy coming in, and I have high quality electricity at work, 1 unit coming out. Nothing else going on, it cannot happen. That's 1 statement of the 2nd Law of Thermodynamics.
What can we do? Well, let me get rid of this, my writing here.
What can we do? Well this is what a auto engine, an auto engine, a diesel A deisel engine or a, or a electric power plant, does, this power system represents any,
any one of those. And what does it do? Well we put in
combustion energy into the plant, we drive it with, and drive the engine with gasoline that comes from oil or we drive the deisel with deisel fuel or drive a
power plant with natural gas or coal. And we put it in, we put 3 BTU's in.
Notice it's not 0 quality though, it's not 0 quality, it has some quality
because it's, it's at a relatively high temperature.
We can produce high quality energy, but to do it we've got to degrade Other

energy, some of it. We cannot do it.
We cannot have 3 BTUs going in, and 3 BTUs coming out as electricity.
We can have 1 BTU of en-, of electricity coming out, and 2 BTUs coming out at ambient temperature that we are rejecting to the river, with a quality of zero.
So if you're going to upgrade. From part of the energy, I've got to
downgrade the rest of it. I cannot upgrade all of it.
So I can only upgrade it if I use the downgrading of, of, of some section, some segment of the energy to drive the upgrade.
And that's what an auto engine, a diesel power, diesel engine or power plant does. And this is maybe a little difficult to grasp, but is 1 thing, by the way I've
had people and read articles where engineers are really stupid because we're throwing away 2/3's of our energy to the river.
We need to be using. Well, that would be great if you could do
it, but the second law of thermodynamics will not allow you to convert all of this combustion energy into electricity. You have got to throw a lot of it away at
zero quality, or a low quality close to zero.
If you're throwing it away to the atmosphere of the river.
It is a 0 quality. So there's, a, people say we're throwing
away all this thermal energy at ambient temperature, and we need to recover it and do something with it. It has no value just like the ambient am,
molecules in the air have lots of energy as they bounce around, but they have no value. We can't do anything with them.
That's just the laws of nature. Okay.
that's a very quick overview of the second law of energy conversion.
Which is highly misunderstood, or not understood at all by a lot of, lot of
people and a lot of our Population. Which is not surprising.
when we look at it, we see that it's not very straightforward.
To understand, particularly from an intuitive concept.
Why you have to do it the way we have, nature says we have to do it is not clear at all. But why does gravity pull down when i
jump out of a building, I fall down rather than going up.
That's just how the laws of nature are. Okay, thank you.

Energy Conversion: Second Law
Welcome back to Energy 101. Today we're continuing to talk about the
conversion process from, that we used to transform energy from one form to another, which is necessary in our energy system. And the second law of thermodynamics is
the most obtuse and mysterical of the laws that
we've talked about and will talk about and that we know. And it's not very intuitive to say the least. But let's delve a little deeper into our discussion about the second law of thermodynamics. And as we've already mentioned, we we've
got energies of different form over here on the left, we've got energies of

different form over here on the right. But by using an energy conversion system, we can convert, for instance, work into
electricity. That's an energy conversion process, and
that's where the laws of nature come into play. We can also, that, that's called a

generator, by the way, that when we generate electricity from work.
And we can also go back the other way. We can take electricity, and use it to
drive an electric motor and generate work. So there're lots of different mechanisms
here. We can take we can take work and and
convert it to heat by merely friction process, like a brake.
If we use an electric, if we put all the work into a, a disc
brake, then the work that goes in generates thermal
energy, which we call heat, et cetera. So that, that's the energy, some of the energy conversion processes that we need,
that we use. And we need to understand what the limitations are, which we have been
talking about. Let's do some quality calculations now
about converting the, some forms of energy to other forms of

energy. And the one that we've had, that we focus on here is, of course, heat, thermal
energy. Because most of the other forms of energy
that we talk about are, have a quality of 1. They all have an equal value, at least theoretically, from a
thermodynamic viewpoint. But thermal energy, we have, we noted, has a varying quality that depends on its
temperature. Well, we get a little more insight into
how this works and how it varies, by going through
a calculation. And, we, we look at what is known as the
Carnot equation, and the Carnot equation was developed in the mid 19 mid 1800s. And it says that the, the quality of
energy or the percent that can be converted into
work, work having a quality of 1, is 1 minus the temperature
of the atmosphere divided by the temperature
of the heat source. Now, say the temperature of the
atmosphere, at, to represent the ambient atmosphere or ambient temperature, whether
it might be a river, it might, but it's a place where we can dispose of energy and at the,
at the zero quality state, state point. So, that's what we typically call the
Carnot equation. And numerically, it gives us the value for
the quality of the thermal energy or heat. So let's take a specific example get a
little more insight in how this works. I'm, I've chosen one here that, that says
if we've got the atmosphere or the river at 40 degrees Fahrenheit, and I
picked numbers here to make the math easy. We first have to convert that 40 degrees F
into degrees Rankine. This, this formula must have degrees Rankine, or what we call
absolute temperature, in order to get the right
answer. another, another scale for absolute
temperature is Kelvin that we convert from in the metric system, or Rankine in
the English system. But if we, in English system, if we take Fahrenheit and add 460 to it, we get absolute temperature. And at absolute zero, there is no thermal agitation, all the
molecules stop their motion. But if we, and if we assume that we have
thermal energy available at T H, the higher temperature, that we produce
from burning natural gas or, from burning coal
or, passing a, a passing electricity through a
resistor, then we assume that we have temperature of warm
air, or warm fluid of some kind, at 240 degrees Fahrenheit.
That's called our heat source. And if we add the 460 to it to convert it
to Rankine, we get 1 minus 500 Rankine over 700 Rankine. Those, that's the absolute temperature converting 40 degrees F and 240 degrees F. So that number comes up with 1 minus 0.71,
which is 500 over 700. And we come up with a, a fraction of 0.29,
and I'll call it 0.30. So that means that the quality, the heat
quality that this thermal energy has at 240
degrees is 30%, and you might say, well, so what? why, why did we go through that
calculation? What, what does it, what difference does
it make? well, it allows us to gain an insight in
what we can and can't do. And by the way, let me just say that it's
very easy to come up with processes and ideas that
are worse than what we do now. And it's very, because people aren't
looking for ways to do things that are, that are not as cheap, or as
simple as, as we have now. So they look for better ways. But a lot of times, I'll have people
coming to me and they will believe that they have a revolutionary idea
because they have a different way of doing
something. But different is not necessarily better.
So that's just one side comment I want to make about coming up
with new energy systems and mechanisms for how we can
convert energy and use energy. We have to, just because it's different
doesn't mean it's better. We need to look at the cost and economics,

and what the efficiency is of that process.
so, so the so what we take away from this calculation of
learning that the quality of thermal energy at 240 degrees Fahrenheit is, is that it has a quality of about 30%. That means that 30% of this thermal energy
at 240 can be converted into work. And that's theoretical, that's the
theoretical maximum. You notice I have, that there is a less
than sign here. It doesn't say equal. You won't always get 30% of that thermal
energy that's at 240 degrees converted into work.
That's only the limit that we can go to. If we get rid of all friction, and if we
spend a lot of time and effort, we can approach the
0.29 amount of work that we get out of one unit of thermal
energy of 240. We could, we could never, theoretically,
get there. We can only approach it. And, and reality, if we get 70 or 80% of
the theoretical maximum that the second law tells us that we can,
we've done pretty well. So what, that's, that's the calculation

that gives us an example of how we can use the the Carnot equation to calculate the quality of thermal energy at a particular state.
Now, other than the, than the Carnot equation that gives us the
upper limit for how much of the thermal energy can be converted

into work, we also have the second law statement that says
what you cannot do. And let me comment about that, the second
law is always a negative statement. And that's why I think we have so much
trouble grasping the second law because all of our other laws of nature
are e, it's a, are equalities, they say the energy in has gotta equal the
energy out. F has gotta equal m a in Newton's Law. The left hand side has gotta equal the
right hand side. That's generally how we state our natural
laws. But the second law is totally unique in
that it's a negative statement. And that leads to an additional confusion
that there, turns out there's an infinite number of ways to
accurately state the second law, all of them being equivalent. So, you hear different statements to the
second law, and it confuses us because we just heard a different statement, and
we're not sure which one the second law is. Well both of them, if they're accurately

stated can be correct, but they are just different
statements of it. So one of the things that it tells us we
cannot do, we cannot do, is the fact that we
bring in thermal energy at a low quality.
We've got a quality scale over here on the right that show high quality up and low
quality down, and so we're putting in thermal energy, or heat, that's
at a low quality. Even 240 degrees is higher temperature
necessary than boil water.
And what we cannot do is upgrade that one unit of energy that's going in into one
unit of higher quality energy. We cannot do it.
Why can't we do it? It's not necessarily intuitive. And, an intuition, by the way, is not something you're generally born with. In fact, I'm convinced you're not born
with anything that would be intuitive about the
first or the second law of thermodynamics. Intuition is essentially based on, on
experience. And we have no experience with it when,
and so we have no intuition about what the second law of
thermodynamics might be. So this is one of the negative statements
that we can make, that is come from the second law of thermodynamics. We cannot upgrade energy with no other net
effect. Notice there're no other energy inputs
here. There's no other external energy inputs
there're no other exper, external energy outputs.
It's the only net effect that I'm sure you cannot do is take low quality one unit of

energy and increase its quality to a higher form a higher number and with one, at one unit. What the second law does allow, though, it
does allow upgrading, or some of the therm, heat energy, while
downgrading the remainder. So it doesn't say we can never, ever
upgrade thermal energy or heat. We, it, it is allowed, and here's how we do it. What nature allows. It tells us that we can bring in thermal

energy like combustion energy of coal, or natural gas,
or oil, or the thermal energy, high temperature thermal energy
generated by the nuclear fusion in our nuclear plant, and we can put it into a power plant system. A Rankine cycle is a, a common one, Brayton cycle is

also getting more common that will burn natural gas, and we can upgrade some, some of that energy, notice not all of it. We got one BTU down up there, and three
BTUs coming in. We can upgrade part of it. If we'll downgrade the other part, and the Carnot equation tells us what the limit is, or the fraction of this incoming

thermal energy that can be increased in quality, to a quality for instance of 1. And that it does allow us to do. So sometimes we say well, I don't believe the second law, because the second law says I
can't take heat energy at a lower quality like

combustion and make work out of it or electricity, I
know we do that every day. Yes, you can do that, but you must
downgrade part of it, and it, it quantifies how much of it
we throw away. In this case, we, in a electric power plant, we normally throw it away at 0 quality. So, those are some of the takeaways and
some of the insights that hopefully helps you understand more about
what the second law of thermodynamics is all about. Notice that I have not said anything about entropy. Entropy is a derivative of the second law
of thermodynamics, and I think too many times, is used to try to
state the second law. And if you don't understand entropy, you
can't possibly understand statements of the
second law, including entropy. So, I hope that gains, gains you some
insight into the second law of thermodynamics, thank you. 

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