Future World Oil Prices and the Potential for New Transportation Fuels

Author(s):  
Alicia K. Birky ◽  
John D. Maples ◽  
James S. Moore ◽  
Philip D. Patterson

World petroleum demand is projected to continue increasing after the world enters the 21st century. The Energy Information Administration (EIA) forecasts low world oil prices for the indefinite future despite an expected 54 percent rise in consumption by the year 2020. In its reference case, EIA also assumes an 80 percent increase in Organization of the Petroleum Exporting Countries (OPEC) oil production over the same time period. In contrast to this, a popular world oil market projection model demonstrates that OPEC could increase its production profitability significantly by substantially slowing the rate of its expanded production. However, OPEC’s potential market control also is influenced by the prospective availability of fuels produced from natural gas, especially remote unconventional natural gas resources. The unconventional natural gas resource is potentially enormous compared with all other fossil fuels combined. Considerations of energy security, greenhouse gas curtailment, emissions control, and cost will act to dictate widespread production and use of these unconventional reserves. Estimates are provided for the amount of alternatives that might be available at various oil prices. Because of cost considerations, much of this added production is likely to occur outside the United States.

Energies ◽  
2021 ◽  
Vol 14 (3) ◽  
pp. 549
Author(s):  
Eric Pareis ◽  
Eric Hittinger

With an increase in renewable energy generation in the United States, there is a growing need for more frequency regulation to ensure the stability of the electric grid. Fast ramping natural gas plants are often used for frequency regulation, but this creates emissions associated with the burning of fossil fuels. Energy storage systems (ESSs), such as batteries and flywheels, provide an alternative frequency regulation service. However, the efficiency losses of charging and discharging a storage system cause additional electrical generation requirements and associated emissions. There is not a good understanding of these indirect emissions from charging and discharging ESSs in the literature, with most sources stating that ESSs for frequency regulation have lower emissions, without quantification of these emissions. We created a model to estimate three types of emissions (CO2, NOX, and SO2) from ESSs providing frequency regulation, and compare them to emissions from a natural gas plant providing the same service. When the natural gas plant is credited for the generated electricity, storage systems have 33% to 68% lower CO2 emissions than the gas turbine, depending on the US eGRID subregion, but higher NOX and SO2 emissions. However, different plausible assumptions about the framing of the analysis can make ESSs a worse choice so the true difference depends on the nature of the substitution between storage and natural gas generation.


Author(s):  
Jared D. Harris ◽  
Samuel E. Bodily ◽  
Jenny Mead ◽  
Donald Adolphson ◽  
Brad Carmack ◽  
...  

Jane Barrow, CEO of Caprica Energy, must recommend to the board which of three potential “unconventional ” natural-gas development sites in different parts of the United States the company should pursue. The case takes place in January 2011, when the “low-hanging fruit ” of natural-gas production in the United States had essentially been picked. All three of the potential sites (shale, coalbed methane, and tight sands) would require hydraulic fracturing, a process of removing gas that was formerly considered inaccessible by injecting water and chemicals into the ground. Because of emerging concerns about the potential harm “fracking ” can do to drinking water, Barrow must not only analyze which site might be most profitable but also what the potential risks to the environment and area residents might be.


2020 ◽  
Author(s):  
David R. Lyon ◽  
Benjamin Hmiel ◽  
Ritesh Gautam ◽  
Mark Omara ◽  
Kate Roberts ◽  
...  

Abstract. Methane emissions associated with the production, transport, and use of oil and natural gas increase the climatic impacts of energy use; however, little is known about how emissions vary temporally and with commodity prices. We present airborne and ground-based data, supported by satellite observations, to measure weekly to monthly changes in total methane emissions in the United States’ Permian Basin during a period of volatile oil prices associated with the COVID-19 pandemic. As oil prices declined from ~$ 60 to $ 20 per barrel, emissions changed concurrently from 3.4 % to 1.5 % of gas production; as prices partially recovered, emissions increased back to near initial values. Concurrently, total oil and natural gas production only declined by a maximum of ~10 % from the peak values seen in the months prior to the crash. Activity data indicate that a rapid decline in well development and subsequent effects on associated gas flaring and midstream infrastructure throughput are the likely drivers of temporary emission reductions. Our results, along with past satellite observations, suggest that under more typical price conditions, the Permian Basin is in a state of overcapacity in which rapidly growing natural gas production exceeds midstream capacity and leads to high methane emissions.


Author(s):  
Navid Goudarzi ◽  
Alex Pavlak

Health and environmental consequences of conventional fossil fuels are drawing more interest in expanding the use of renewable energy sources. The primary challenges in supplying the required electricity from wind are the variability, uncertainty, and the cost of electric power generation. An earlier paper presented the results of a system concept tradeoff using one-year wind/load data from Pennsylvania New Jersey Maryland Interconnection LLC (PJM). While one year results showed a wind plus natural gas system can reduce CO2 emission as much as 50% below that of an all-natural gas system with only a modest increase in system cost, typical power generation modeling extends to three years. In this work, the developed model is employed to estimate the magnitude of cost versus performance using three-year wind/load data at PJM in the United States and EirGrid in Ireland, and cost estimations published by the Energy Information Agency. The year to year variation at each region is studied and compared with each other. Also, the curtailment curve obtained from three years wind/load data is compared with that from one year to access the variance. The grid-scale storage parameter variations are studied to estimate the generation cost with storage as a function of emission levels.


Energies ◽  
2020 ◽  
Vol 13 (17) ◽  
pp. 4479
Author(s):  
Soohyeon Kim ◽  
Surim Oh

The rise of shale resources in the United States is changing the petrochemical industries. Ethylene, the first building block of petrochemical products, is becoming the first target to be hit by the shale boom, and its shifting price dynamics needs to be explored. This study analyzes the transition of ethylene prices from crude oil to natural gas (vertical price dynamics) and investigates widening gaps among regional ethylene prices (horizontal price dynamics). To do this, we detect structural changes in cointegrating relationships and derive time-varying cointegration equations. In addition, for the long- and short-run dynamics, this study established and estimated an error correction model (ECM), with controlling, time-varying cointegrations. This study develops econometric studies by applying time-varying cointegration to nonenergy uses of fossil fuels. Thereby, our results discover that the feedstock structure of US ethylene is moving from crude oil to natural gas and that the comovement of US and Japanese prices is getting intensified.


Energies ◽  
2021 ◽  
Vol 14 (24) ◽  
pp. 8502
Author(s):  
Li Chin Law ◽  
Beatrice Foscoli ◽  
Epaminondas Mastorakos ◽  
Stephen Evans

Decarbonization of the shipping sector is inevitable and can be made by transitioning into low- or zero-carbon marine fuels. This paper reviews 22 potential pathways, including conventional Heavy Fuel Oil (HFO) marine fuel as a reference case, “blue” alternative fuel produced from natural gas, and “green” fuels produced from biomass and solar energy. Carbon capture technology (CCS) is installed for fossil fuels (HFO and liquefied natural gas (LNG)). The pathways are compared in terms of quantifiable parameters including (i) fuel mass, (ii) fuel volume, (iii) life cycle (Well-To-Wake—WTW) energy intensity, (iv) WTW cost, (v) WTW greenhouse gas (GHG) emission, and (vi) non-GHG emissions, estimated from the literature and ASPEN HYSYS modelling. From an energy perspective, renewable electricity with battery technology is the most efficient route, albeit still impractical for long-distance shipping due to the low energy density of today’s batteries. The next best is fossil fuels with CCS (assuming 90% removal efficiency), which also happens to be the lowest cost solution, although the long-term storage and utilization of CO2 are still unresolved. Biofuels offer a good compromise in terms of cost, availability, and technology readiness level (TRL); however, the non-GHG emissions are not eliminated. Hydrogen and ammonia are among the worst in terms of overall energy and cost needed and may also need NOx clean-up measures. Methanol from LNG needs CCS for decarbonization, while methanol from biomass does not, and also seems to be a good candidate in terms of energy, financial cost, and TRL. The present analysis consistently compares the various options and is useful for stakeholders involved in shipping decarbonization.


2020 ◽  
Author(s):  
Nur H. Orak ◽  
Matthew Reeder ◽  
Natalie J. Pekney

Abstract. The United States experienced a sharp increase in unconventional natural gas (UNG) development due to the technological development of hydraulic fracturing ("fracking"). The objective of this study is to investigate the effect of unconventional natural gas development activities on local air quality as observed at an active Marcellus Shale well pad at the Marcellus Shale Energy and Environment Laboratory (MSEEL) in Morgantown, Western Virginia, USA. Using an ambient air monitoring laboratory, continuous sampling started in September 2015 during horizontal drilling and ended in February 2016 when wells were in production. High resolution data were collected for the following air quality contaminants: volatile organic compounds (VOCs), ozone (O3), methane (CH4), nitrogen oxides (NO and NO2), carbon dioxide, (CO2), as well as typical meteorological parameters (wind speed/direction, temperature, relative humidity, and barometric pressure). Positive Matrix Factorization (PMF), a multivariate factor analysis tool, was used to identify possible sources of these pollutants (factor profiles) and determine the contribution of those sources to the air quality at the site. The results of the PMF analysis for well pad development phases indicate that there are three potential factor profiles impacting air quality at the site: natural gas, regional transport/photochemistry, and engine emissions. There is a significant contribution of pollutants during horizontal drilling stage to natural gas factor. The model outcomes show that there is an increasing contribution to engine emission factor over different well pad drilling through production phases. Moreover, model results suggest that the major contributions to the regional transport/photochemistry factor occurred during horizontal drilling and drillout stages.


Author(s):  
Christopher E. Clarke ◽  
Dylan Budgen ◽  
Darrick T.N. Evensen ◽  
Richard C. Stedman ◽  
Hilary S. Boudet ◽  
...  

The impacts associated with unconventional natural gas development (UGD) via hydraulic fracturing have generated considerable controversy and introduced terms such as “fracking” into the public lexicon. From a climate change perspective, transitioning from fossil fuels to renewable sources in order to potentially avoid the worst consequences of a warming planet will need to also consider the climate implications of increased UGD and natural gas use that follows. Specifically, how much greenhouse gas is emitted as natural gas is extracted, transported, and consumed relative to other energy sources? Is UGD a “cleaner” energy source? Compared to what? Does it postpone or “bridge” the transition from fossil fuels to renewable energy? Public perception of UGD’s climate impacts not only reflect individual attitudes but broader social discourse among stakeholder groups. Understanding these perceptions, their psychological and social factors antecedents, and how to engage audiences on this topic will play a key role in UGD’s long-term trajectory, especially as it relates to climate change. An added challenge is that most public opinion studies specific to UGD’s climate impacts (and indeed UGD in general) are limited to the United States, Canada, and a few countries in Europe and Africa, with other parts of the world entirely absent. Nonetheless, the studies that do exist highlight several common themes. In particular, UGD tends to be viewed as cleaner relative to fossil fuels because of the belief it produces less carbon emissions as a result of natural gas extraction and consumption. However, it tends to be viewed as dirtier relative to renewables amid the belief that it increases carbon emissions. This finding complements research showing that natural gas occupies a middle ground between renewables and other fossil fuels in terms of acceptance. Moreover, the extent UGD serves as a bridge energy source remains contentious, with some arguing that it and the natural gas it produces complement fossil fuels and facilitates a transition to renewables, while others claim that UGD entrenches society’s continued reliance on the former. Overall, despite the contentious nature of these issues, UGD’s climate impacts appear less salient across countries than other health, environmental, and economic impacts, perhaps because they are psychologically distant and difficult to experience directly. Amid efforts to convey the public health risks associated with a changing climate, we believe that emphasizing the public health dimensions of UGD’s climate impacts can potentially make them more psychologically tangible. Positively framed messages emphasize that reducing carbon emissions tied to both unconventional natural gas extraction and natural gas consumption (relative to other fossil fuels) and thus mitigating the resultant climate change that follows benefits public health. Conversely, negatively framed messages emphasize that increasing carbon emissions (relative to renewables) and thus amplifying the resultant climate change adversely affects public health. At present, though, there is little evidence as to how these messages affect the perceived connection between UGD’s climate impacts and public health and, in turn, support for UGD versus other energy types. Nor is it clear how these outcomes may vary across countries based on public sentiment toward UGD and climate change along with a variety of psychological and social factors that influence such sentiment. Data available for some countries offers tantalizing scenarios, but we remain limited due to the lack of social science research in countries outside the United States and a handful of others. We call for cross-national comparative studies that include places where UGD—and social science research on it—is still maturing.


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