Agenda

2. Agenda • Oil • Production Technology • Reserves & Demand • Economics • Coal • Reserves – World & India • Economics • Pollution control Policies • Clean coal Technologies • Natural Gas • Reserves & Production • Economics • Shale Oil • Reserves • Case study – Stuart Project, Australia • Tar Sands • Methane Hydrate • Conclusion

3. Workhorses Of Our Energy Sector • Fossil Fuels are energy-rich substances that have formed from long-buried plants and microorganisms. • The gasoline that fuels our cars, the coal that powers electrical plants, the natural gas that heats our homes are all fossil fuels.

4. They are indispensable… • High energy density • 73,890 BTU/ lb of Natural Gas • 17,400,000 BTU/ton of Lignite Coal • 138,000 BTU/gal of Fuel oil • Renewable sources vary with • Geographical location • Season • Time of day • Relative inexpensiveness. • Needed to provide back up. • The entire transportation infrastructure is built around fossil fuels. It is next to impossible to alter these to suit any other resources.

5. Basic Technology of Oil Extraction • The crude oil is separated in a distillation column into various fractions of multifarious uses.

7. Current Production Technologies • Development and use of (3D) seismic waves. • Innovative drilling and production structures. • Carbon dioxide reinjection Deep offshore Production: • FPSO (Floating Production Storage and Offloading) and TLP (Tension Leg Platform) systems. • New materials for flexibles. • Horizontal and multibranch wells. • The current depth is around 1800 m, the next target depth is 3000 m.

9. Micro hole drilling • Aimed at slashing costs and reducing environmental impacts of drilling. • Tap potentially billions of barrels of bypassed oil at shallow depths. • The Technique: • Ultra small-diameter holes. • Adapts coiled tubing drilling techniques. • Drill motor and bit are deployed on the end of tubing coiled around a spool on a trailer. • Trailer pulled by pickup truck.

10. Oil Reserves & Production • Currently, the world has proven reserves of a little over 1,100 million barrels. • Production of oil is around 37 million tonnes per annum. India reserves and production(1999)

11. Role of OPEC • Middle East countries hold 65% of oil and 34% of the gas reserves. • 14 of the major oil producing countries constitute the Organization of the petroleum exporting corporation (OPEC) • OPEC has proven reserves of 891,116 million barrels of crude oil, representing 78.3% of the world reserves, and produces around 40% of the world’s crude.

12. Increasing Demands And Consequences • Oil is extracted at the rate of 75 million barrels per day, which means the current reserves are predicted to last only for another 35-40 years. • The cost of oil has already surged past $70 per barrel.

16. COALThe energy bridge to the future!! • First fossil fuel to be discovered. • Pushed to background because of its environmental effects. • The two major uses for coal – steel production and electricity. • Accounts for 23% of the global primary energy demand, 38% of world electricity production and 70% of world steel production.

17. Reserves The proved recoverable world reserves at the end of 1991 India has proven coal reserves of 84,396 million tonnes

19. Reserves… • The present reserves represent a life span of hundreds of years at the current rate of production and consumption • The average open market sales price of coal in the USA is around $30/ton

20. Reverting to COAL • For coal to reestablish itself as the primary fuel, it will need to reduce its environmental footprint. Comparison of Air Pollution from the Combustion of Fossil Fuels (kilograms of emission per TJ of energy consumed)

21. Major pollutants are volatile organic compounds (VOC), Nitrogen oxides (NOX), CO, SO2, particulate matter, mercury and lead. • Electric utility power plants 72%, 35%, and 33% of total emissions of SO2, CO2, and NOx. • Average mercury content of coal is 7.4 pounds per trillion Btu of energy input to the coal-fired electricity generator.

22. Kyoto Protocol • Reduce "CO2- equivalent" gas emissions. • Actions that take carbon out of the atmosphere. • Countries to limit greenhouse gas emissions, relative to the levels in 1990. • USA hasn’t signed it as yet but instead agreed to reduce emissions from 1990 levels by 7 percent during the period 2008 to 2012. Clear Skies Initiative • Sulfur dioxide emissions to be cut by 73% • Nitrogen oxide emissions to be reduced by 67% • Mercury emissions be cut by 69%

23. Combined Cycle • Combines gas turbine and steam turbine. • Exhaust energy from gas section used in steam system. • High thermal efficiency. • Small plants combined. • High mobility.

24. Gasification • Breaks down coal into basic chemical constituents. • Coal is exposed to hot steam and controlled amounts of air or oxygen under high temperature and pressures. • Carbon molecules in coal break apart, setting off chemical reactions that produce syn gas and other gaseous compounds. Integrated gasification combined-cycle (IGCC) • Syn gas is burned in a combustion turbine which drives an electric generator. • The exhaust gases are used to heat steam.

25. Knocking the NOx out of coal • NOx emissions reduced at low-combustion temperatures and by use of low-nitrogen fuels, low- NOx burners and fluidized-bed combustion. • Particulate matter removed by fabric filters or electrostatic precipitator. • Membranes for separating gases. • Selective removal of hydrogen from syngas. • Flue gas desulfurisation units, selective catalytic control systems and evaporative cooling towers. • Sulfur extracted from coal converted into commercial-grade sulfuric acid or elemental sulfur. • Mercury controls - sorbents and oxidizing agents.

26. Transport Reactor

27. Carbon Sequestration It is a family of methods for capturing and permanently isolating gases that could contribute to global climate change. CARBON CAPTURE • Pre-combustion capture • Post-combustion capture • Oxyfuel technologies.  CARBON DIOXIDE SEQUESTRATION • Industrial use of CO2 in plastics and other chemical industries • Inorganic sequestration as carbonates • Biological conversion to fuel • Geological sequestration, in salt domes, or coal beds • Injection into active oil wells • Injection into exhausted gas or oil wells • Injection into aquifers • Ocean disposal

29. SO2 emissions (thousand tonnes of SO2)

31. US Initiatives FutureGen -Tomorrow's Pollution-Free Power Plant • $1 billion dollar project. • Employs coal gasification integrated with combined cycle electricity generation and the sequestration of carbon dioxide emissions. • Will require 10 years to complete. • In the operational phase, it will generate revenue streams from the sales of electricity, hydrogen and carbon dioxide.

33. Vision 21The "Ultimate" Power Plant Concept • Multiple products - electricity in combination with liquid fuels and chemicals or hydrogen or industrial process heat. • Not restricted to a single fuel type. • Coupled with carbon sequestration technologies. • Technology modules interconnected to produce selected products. • Very High efficiencies with near-zero emissions. • Uses low-polluting processes.

35. Fuel Cells -for near zero emissions coal-based systems • Based on electrochemical reaction of hydrogen and oxygen. • Integrated gasification fuel cell hybrids have the potential to achieve up to 60 percent efficiency and near-zero emissions. • Hydrogen separated from syn gas got from gasification. • Exhaust gases can be used to drive gas turbines. • Small 3-10 kW scale fuel cell systems combined to give larger systems for use in hybrid power systems.

36. Natural Gas • The world had around 5500 trillion cubic meters at the end of 2003.

37. Some Statistics… Current reserves represent a life span of 60 years. Indian Scenario

38. Why Natural Gas? • Cleaner fuel, has low carbon/hydrogen ratio hence less carbon dioxide emission. • Has a distinct hydrogen-rich molecular structure, hence supply hydrogen for future technologies like fuel cells. • 3D seismic technologies now used to locate fractures in the earth. • Combined cycle technology used. • Acid reinjection employed for better efficiency.

39. Economics The price is based on • calorific value of gas • local demand • supply • cost of alternate liquid fuels Cost of natural gas has increased over 200% in the past 2 decades.

40. Bright Prospects… Shale Oil • Is a 40-50 million-year-old sedimentary rock. • Contains a solid hydrocarbon, kerogen which is "fossilised algae". • Time, pressure and temperature have transformed these sediments into a hydrocarbon-bearing rock. • Contains no liquid hydrocarbons. • The heating of the oil shale, forces the decomposition of kerogen and hydrocarbons are released as a vapour which on cooling becomes liquid oil and gas.

41. Reserves

42. The Estonia and Tapa deposits are situated in the west of the Baltic Basin • Share of oil shale in the Estonian national primary energy balance is 52-54%. • Oil shale output had reached 7 million tonnes by 1955 • Mainly used as a power station/chemical plant fuel and in the production of cement. • The opening of more thermal plants boosted production and by 1980 (the year of maximum output) the figure had risen to 31.35 million tonnes.

43. Stuart Project - Australia • Incorporates the Alberta-Taciuk Processor (ATP) retort technology. • Three staged plant aimed at producing 85 000 b/d by 2009.

45. Higher emissions of greenhouse gases than conventional oil resources. • Plans are on to reduce these emissions by • Creating a ‘carbon sink’ through planting trees to create permanent forests. This would ‘capture’ or sequester carbon dioxide • Building a bio-ethanol plant to operate alongside the Stuart Shale Oil plant, and be based on woody biomass sourced from local plantations and sugar wastes.

46. Tar Sands • Deposits of bitumen - viscous oil that must be rigorously treated in order to convert it into an upgraded crude oil • Of the oil sands found in Alberta, 10-12% is bitumen, 80-85 % is mineral matter, and 4-6% is water. • Reserves estimated at 280-300 billion barrels.

47. Processing Technique • Must be mined or recovered in situ. • Recovery processes include extraction and separation systems to remove the bitumen from the sand and water. • Cyclic steam stimulation (CSS) and steam assisted gravity drainage (SAGD) currently used. • Technique not advanced enough to make it economical.

48. Methane Hydrate…the gas resource of the future • It is a compound of water and methane • Forms under pressure at cold temperatures. • Potential significant source of natural gas. • Large volumes of hydrate based natural gas found on Alaska's North Slope. • Natural gas potential of methane hydrate approach 400 million trillion cubic feet.

49. Fossil Fuels…the fuels of the past & the fuels for the future • The volumes of exploitable oil and gas are closely correlated to technological advances, technical costs. • Any improvement in the recovery rate - even if by only one point - allows the industry to tap substantial additional reserves. • Coal with its plentiful reserves and inexpensiveness offers tremendous potential if we carry out environment friendly plans. • With the various technological advancements, and alternate sources for oil and gas, the end of fossil fuels is still centuries away.

50. “ The path to the future is neither as rosy as some people hope nor as thorny as others fear, but depends on how effectively we pick out the weeds and nurture the bush as we walk ”