Showing posts with label shale gas. Show all posts
Showing posts with label shale gas. Show all posts

Sunday, November 4, 2012

The War on Coal

     One of my friends asked me to blog about the War on Coal.  Well, you don't have to ask me twice. 

    The War on Coal is the US government's response to a perceived environmental crisis, for which their response is to dramatically increase environmental standards (both for mining and for power plant emissions)  to the point at which existing power plants and coal mines are forced to cut back  or even be shut down.  This is done through the Environmental Protection Agency, which is permitted to issue regulations, as authorized by the Code of Federal Regulations

     The great hope is that coal fired plants will be replaced by solar power or wind power or some other renewable source of energy.  But the fact of the matter is that renewable energy is horrifically expensive.  While rich folks can afford keep their houses warm in the winter with it, industries simply can not make a profit if they are forced to use expensive electricity (Kennel's Conundrum of Solar Energy is that no solar cell production facility can exclusively use solar-generated electricity to produce silicon cells because it is just not economically competitive.  You need fossil fuel energy in order to achieve practical economics).   Renewable energy is great philosophically, but it just does not conform to economic reality as we currently understand it.

   The true alternative is natural gas, which has emerged as an incredibly cheap and plentiful alternative due to massive new discoveries in the Marcellus  and Barnett shale formations,  with less environmental consequence than coal.  So all new power plants will probably be built using natural gas, at least for the next ten years.  No new coal plants will be build in the US, and existing coal plants are going to be phased out, it's just a matter of timing.
 
     Shutting down existing coal plants immediately does not alleviate any true environmental emergency.  It does make your electric bill higher and increases the risk of power outages.  Those concerned about carbon dioxide emissions need to face the reality of China, which now emits much more carbon dioxide than the US. Other economies (notably India) are eager to follow China's example and achieve economic growth with coal.    

     If the US were to drop its emissions to zero (which of course is not possible)China alone would make up for that within about five years if their growth continues and there is no international agreement for others to follow our excellent self-sacrificing example.  And in fact simple laws of supply and demand dictate that if we simply drop our demand to zero, the existing supply will be utilized by others.  So how exactly are we going to influence the rest of the world to abandon the prospect of trillions of dollars worth of gross domestic product fueled by fossil energy?  Perhaps a global economic depression is the surest path to environmental success.  American politicians seem determined to bring this about, so perhaps there is hope.   
     Nevertheless, whether or not it makes a real difference, I guess we feel better about ourselves as a country if we are cutting carbon emissions and eliminating coal jobs.  We can probably afford to do so as long as natural gas stays at its incredibly cheap level.   Our current leadership hopes that we can continue to borrow vast amounts of money for a while to continue importing oil and other basic commodities.  And that's our real energy plan.  Borrow, borrow, borrow.  Got it? 

    In energy states, the local authorities (especially Republicans but also fiscally conservative Democrats) are generally more friendly to new natural gas drilling, offshore oil drilling as well as shale oil projects, especially at the state level.  
 
     Irrespective of government desires, private industry has produced so much natural gas and oil using new drilling techniques that America has reversed its long term trend of more imports.  We can argue whether it is because of the government or in spite of it, but the US has actually cut back its imports of petroleum over the past few years while increasing domestic production.

     In the long run, I think the future of coal will be as a substitute for petroleum.  Coal can be thought of as a super heavy crude oil.  If chemical engineers put their mind to it,  they can convert it into oil via a number of processes, and at an acceptable cost.  In China, there are several processes being introduced.  Many of these processes were developed originally in the US, but not pursued because of the easy option of increasing imports.

      On the far right, the Libertarians oppose any government involvement in Energy, and would like to abolish the Department of Energy altogether.  They would like to turn everything over to industry. http://www.dehnbase.org/lpus/library/platform/ene.html
  
     The Greens, on the other hand, seem to regard energy as a conspiracy, and especially the private sector. They would like to extend the war on coal to become the war on coal, oil and natural gas. If we punish the energy companies enough, renewable energy sources will be allowed to flourish and they will get what they want.  http://www.gp.org/committees/platform/2012/ecological-sustainability.php#Energy   

   In summary, the War on Coal is a real feature of the current energy plan for America, although that term is not used by advocates.  But both major parties favor increased market share for natural gas and decreased market share for coal, with the major disagreement being on the rate at which coal utilization should decrease.  The Libertarians and Greens, in my opinion, are both in favor of destroying the economy, although each party has a different idea on how to best accomplish that goal.  
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Friday, March 9, 2012

Gasoline Replacement at $2 per gallon?

    What if gasoline could be replaced with something that cost under $2 per gallon-equivalent (that is, for the same amount of energy contained in a gallon of gasoline)?  There would be an energy revolution, right?
    Maybe or maybe not.
    The fact of the matter is that there is such a replacement out there, and its available in practically unlimited quantities, but most of the country doesn't care and hasn't noticed.  
    There seemed to be a shortage of natural gas just six years ago, like when I bought a house in Morgantown WV and decided not to use natural gas heat because the prices seemed likely to go over $10 per thousand cubic feet.  Now, it's under $3.  The reason is that industry has developed new technologies for drilling and recovering gas from shale formations such as the Barnett shale in Texas, the Marcellus in West Virginia, Pennsylvania and New York, the Utica formation in Ohio and Pennsylvania, and probably more to be found.
    Natural gas is cleaner than oil or coal, and results in less carbon dioxide when it is burned than either of those two fuels.  People are now saying that the Marcellus formation holds as much energy as the oil formations in Saudi Arabia.
    Moreover, it is very realistic to use natural gas to power automobiles.
    You can go out and buy a compressed natural gas (CNG) powered car from Honda.  A natural gas Honda Civic stickers for about $26,000, and you can buy natural gas for it at filling stations around the country (there are not a lot of natural gas filling stations, but they do exist in most metropolitain areas). Or you can buy a refueling kit from Honda that will allow you to refill in your garage.  I don't really need a car right now, because in 2009 President Obama gave my $4000 to trade in my old Chrysler minivan with 200,000 miles on it, so that I could buy a Jeep Patriot.  But when I do get around to buying a new car, I'm very likely going to get one that runs on compressed natural gas. 

 2012 Natural Gas Fueled Honda Civic.


    You  can also buy CNG fleet vehicles from General Motors, and several companies supply buses that run on natural gas (one of the best applications, because fueling stations are guaranteed to be available).  You can also legally convert many cars to CNG. More cars are certainly coming.  

    You  would think that this would cause Americans to be ecstatic about finding a new source of plentiful and abundant energy, and some are.   Others are not so sure however.  Many of my friends, for a variety of political, philosophical and environmental reasons, hope for declining fossil fuel energy use across the board, and so they are disappointed to see the American economy use natural gas to fuel its recovery. 
    There are concerns anytime you drill holes into the ground, but if you go to Texas or Oklahoma, it's very normal to see oil drilling rigs in the middle of cities and farms.  This can be coped with.   
    Another reason for the lack of enthusiasm is that Americans have been fed so much bullshit about energy, that many of us have come to enjoy the taste.  Bush tried to sell us on hydrogen fuel cell cars.  This is very interesting, because you make hydrogen by reforming natural gas and then purifying it so that it costs 10 times more than gasoline.  Then you use converted Space Shuttle fuel cells in an economy car that costs about $100,000.  What a great idea!       
      Secretary of Energy Steven Chu has tried to kill that horrible idea since he took office, but the supposedly frugal budget conservative Republicans won't give it up.  And California is still building hydrogen filling stations for all of the millions of fuel cell cars that they think will soon be built.  They plan to make hydrogen via water electrolysis, using electricity from the nuclear reactors that they built on earthquake faults.  Well they must know what they are doing, right?  Otherwise they would be wasting millions and millions of dollars of taxpayer money, and that couldn't happen, could it?


Rich people everywhere rejoice at the opportunity to spend ten times more for fuel than the average person spends. Californians are forced to support them generously with their tax dollars. 


     Then there is ethanol.  This is not totally crazy, but if America ever gets serious about replacing gasoline with ethanol, we will have to defoliate the entire country to make ethanol.  Ethanol is a poor fuel, with only about half the energy content of gasoline.  In order to make it pay, you have to have pure alcohol for about half the price of gasoline.  So in other words if gasoline costs about $4 bucks, alcohol has got to be around $2 per gallon just to break even. All I know is that they've been making whiskey for a long time, and if it was going to really be that cheap Jack Daniels would have gotten there by now.  

If politicians think they can make ethanol at $2 per gallon, they were probably drinking this stuff when they came up with that idea.  


    So much for Republican brainstorms.  The Democrats are not much better.  They are countering with The Great Light Hope, solar energy (only about five to ten times as expensive as conventional power except during daylight hours in Arizona, in which case it may only be double) and windmills (ditto--far too expensive to compete with natural gas to make electricity, never mind produce transportation fuel).   They also like biofuels, which makes for odd bedfellows since it is one of the few alternatives that Republicans and Democrats both like.  But they are both wrong. 

   These far-out costly "Green" technologies can make it for certain niches, but they never make significant market share in the energy market, and the net result is that we wind up being increasingly dependent on people that are even crazier than we are:  namely OPEC nations like Iraq, Iran, Venezuela and others.  What a great idea that is!   But that is where conventional wisdom is trying to take us.   



    At the same time there has been sharp criticism of organizations like the National Energy Technology Laboratory, which is chartered to do research on fossil fuels and other technologies that might actually work. In my view it is the finest of the Department of Energy Laboratories, despite the political efforts to have America focus its efforts on very tenuous concepts.

    The fact of the matter is that NETL developed technology for  compressed natural gas powered automobiles years ago.  CNG is cleaner than gasoline and is compatible with conventional piston engines, with comparatively minor modifications to the fueling system.  This technology exists, and Honda has brought it to the US in the form of a passenger car.  You can also buy fleet vehicles from GM, and Ford and Chrysler are said to be considering product launches as well (hurry up, guys). 

     Both the Republicans and Democrats are foolishly hoping that their aged and foolish pet projects are going to miraculously achieve a breakthrough, while RIGHT NOW YOU CAN BUY A CAR THAT RUNS ON FUEL THAT IS CHEAPER THAN GASOLINE PER MILE DRIVEN.  This time, it is not a joke, it is a real revolution that is happening under our noses.  Yet many people are trying to prevent it because it doesn't agree with their antiquated and preconceived notions about energy.   But I think this is the real deal and I'm thankful that America may actually have a chance to cut its dependence on foreign energy sources and power its own REAL economy with REAL fuel.  

 The Department of Energy says that Natural Gas cost the equivalent of $1.85 per gallon of gasoline last year.  You can get Americans to drill for you, or you can trust those nice people in Iran and Iraq to provide for your fuel needs.  Which is it going to be, America?   

Additional reading:


2. http://www.myfoxphilly.com/dpp/news/local_news/marcellus-shale%3A-risks-and-rewards-050911


3.  A list of cars that can be converted to CNG is contained here:  http://www.ngvamerica.org/pdfs/marketplace/MP.Analyses.NGVs-a.pdf .