Energy Basics

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Energy Basics

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1. Energy Basics Frank Felder 970:672 Energy Policy and Planning Lecture Notes 1

2. 2 Energy Stages

3. 3 Detailed Energy Stages

4. 4 Overview of U.S. Petroleum (EIA 2003) Consumption: 20 MMbd US consumes about 25% of the world’s oil 67% of U.S. oil consumption is for transportation Imports: 56% 20% from Persian Gulf 42% from OPEC U.S. Oil production: 7.8 MMBd

5. 5 Overview of U.S. Natural Gas (EIA 2003) U.S. Production 19.1 Tcf 2nd in the world to Russia U.S. Consumption: 21.9 Tcf 37% Industrial 23% Residential 14% Commercial 23% Electric Power 3% Transportation

6. 6 Overview of U.S. Coal and Nuclear (EIA 2003) U.S. Coal Production: 1.1 billion tons (2nd to China) 56% from mines west of the Mississippi 67% from surface mines U.S. Coal Consumption: 92% of coal consumed by the electric power share U.S. Nuclear Power Plants 104 operating units in 2003 (vs. 70 in 1978) Capacity: 99,000 MW Capacity Factor: 88% in 2003 (vs. 51% in 1978)

7. 7 Overview of U.S. Renewable Energy (EIA 2003) Renewable energy: 6% of U.S. total energy consumption Renewable resources Hydropower: 45% Wood: 34% Waste: 9% Other: 12%

8. 8 Btu Equivalents 1 barrel of crude oil = 5.8 million Btu’s 1 Mcf natural gas = 1.03 million Btu’s 1 kWh electricity = 3.4 thousand Btu’s 1 ton of coal = (approx.) 21 million Btu’s

9. 9 U.S. Oil Flow (EIA)

10. 10 Oil Well (EIA)

11. 11 World Oil Production (EIA)

12. 12 Reliability What is meant by reliability as applied to energy sources? What are some issues with measuring reliability? What are the consequences of poor reliability and the magnitudes of these consequences? How is the reliability of energy systems analyzed? Will energy markets provide sufficient reliability? If not, should and how should the government intervene?

13. 13 Environmental Consequences What are the environmental consequences of energy usage? What are their current trends? Why does the market fail in this area? What are types of policies that address these consequences? How should these policies be evaluated? What are some examples of very successful polices and not so successful ones?

14. 14 Energy Technology and R&D What are the stages of R&D? Will the market alone provide sufficient incentives for R&D and if not, why not? What are the major areas of energy R&D? What energy R&D areas should be invested in and why? How should R&D investment policies be analyzed and evaluated?

15. 15 Electricity Restructuring What is electricity restructuring? What changed and what remained the same? What is the status of restructuring in the U.S.? How should restructuring be evaluated? Has restructuring been worth it? What have been the benefits and consequences of restructuring?

16. 16 Energy Supplies and Conservation How efficient is current U.S. energy usage? What are some difficulties with measuring energy waste? Will market forces provide sufficient incentives for energy efficient and if not, why not? What are some major existing energy efficiency policies? What additional policies, if any, should be considered? How should energy efficiency policies be evaluated?

17. 17 Siting Why is siting energy infrastructure projects difficult? What criteria should be used in evaluating siting locations? What is existing policy with respect to siting? What are the fundamental tradeoffs with respect to siting? Which types of energy facilities are the most difficult to site and why? How can siting be improved?

18. 18 Evaluating Ending the Energy Stalemate Report What are the basic themes of this report? What are its main policy recommendations? How does existing federal energy policy contrast with this report’s recommendations? How did the report’s commission conduct its analysis? What are some fundamental and unstated assumptions of the report? How does the report address CLIOS? How does the report try persuade? Is the report persuasive?

19. 19 Federal & State Energy Policy Should states have their own energy policies; if so, why? Should cities, towns, and counties have energy policies? Who makes state energy policy? What is NJ’s energy policy? How does state energy policy vary across the U.S.?

20. 20 International Energy Policy Are there international energy policies? Which international organizations have a role in energy policies? What role do international organizations play in energy policy? What are some major components of international energy policy? What should occur when national and international energy policies conflict?

21. 21 Energy Policy Processes How do executive, legislative, and judicial processes differ? Do different processes result in different energy policies and if so, how? How is legitimacy conferred upon a policy process? Which processes are used to resolve conflicts among energy policies?

22. 22 Energy Politics What are the major drivers of energy politics? Are these drivers primarily economic, philosophical, or cultural? How do these drivers vary among states and regions of the country? How does politics interact with process? What are some examples of energy politics between NJ and other states and within NJ?

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