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The Impact of Oil Sands and Shale on Energy Costs

Explore the cost implications of leaving a light bulb on for two days and the significance of oil sands, shale, and seismic imaging in the global energy landscape. Discover how the Keystone Pipeline system impacts oil transportation across North America.

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The Impact of Oil Sands and Shale on Energy Costs

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  1. HW #1: 7) Ch2, P#30: A 100-W light bulb is accidentally left on for two days in a basement. If electricity costs 12¢/kWh, how much did this oversight cost?

  2. HW #1: 7) Ch2, P#30: A 100-W light bulb is accidentally left on for two days in a basement. If electricity costs 12¢/kWh, how much did this oversight cost? 58 cents

  3. HW #1: 7) Ch2, P#30: A 100-W light bulb is accidentally left on for two days in a basement. If electricity costs 12¢/kWh, how much did this oversight cost? 58 cents

  4. 1. Most oil is not in the “conventional” (cheap, easy) form 2. Non-conventional oil extends the oil-use lifetime, but at most by a factor of 10

  5. Oil Sands - reservoirs of partially biodegraded oil still in the process of escaping. The lighter fractions of the crude oil are gone, resulting in reservoirs containing an extremely heavy form of crude oil, called crude bitumen in Canada, or extra-heavy crude oil in Venezuela. (These two countries have the world's largest deposits of oil sands.)

  6. Athabasca Oil Sands, Alberta, Canada

  7. Bitumen – tar-like highly condensed polycyclic aromatic hydrocarbons

  8. Oil Shales - source rocks that have not been exposed to heat or pressure long enough to convert their trapped hydrocarbons into crude oil. Not really shales and do not contain oil. Contain a waxy substance called kerogen (general term for buried organic matter), which can be converted into crude oil using heat and pressure to simulate natural processes. (Oil shale, Estonia)

  9. Oil Shale Resources (NOT the same as reserves, which are only a small part of this) (Green River fossils)

  10. Oil Shales – (Oil shale mine in Alberta, Canada)

  11. This is what parts of the U.S. used to look like…..

  12. Seismic Imaging Reveals the Most Likely Places to Find Oil and Natural Gas.

  13. Seismology – study of the propagation of seismic waves through the earth

  14. Seismic Reflection

  15. Seismic Reflection

  16. Saudi Arabian petroleum resources

  17. Saudi Arabian petroleum resources

  18. Onshore wells = costs range from <$1 million to >$15 million for deep and difficult wells Deepwater drilling rig rates in 2010 were about $420,000/day * a deep water well of duration of 100 days can cost around US$100 million (can be in water almost 2.5 km deep)

  19. Deepwater Horizon rig – designed to operate in waters up to 2.4 km deep and drill down over 9 km into the seafloor

  20. Pump Jack:

  21. Trans-Alaska Pipeline: (why is it above ground?)

  22. Petroleum Pipelines:

  23. Keystone Pipeline:

  24. Petroleum Pipelines:

  25. The Keystone Pipeline System is a pipeline system to transport synthetic crude oil and diluted bitumen from the Athabasca Tar Sands in northeastern Alberta, Canada, to multiple destinations in the US, which include refineries in Illinois, Cushing oil distribution hub in Oklahoma, and proposed connections to refineries along the Gulf Coast of Texas. It consists of the operational "Keystone Pipeline" (Phase 1) and "Keystone-Cushing Extension" (Phase 2), and two proposed Keystone XL pipeline expansion segments. After the Keystone XL pipeline segments are completed, American crude oil would enter the XL pipelines at Baker, Montana, and Cushing, Oklahoma.

  26. The Keystone XL has faced lawsuits from oil refineries and criticism from environmentalists and some members of the US Congress. The US Department of State in 2010 extended the deadline for federal agencies to decide if the pipeline is in the national interest, and in November, 2011, President Obama postponed the decision until 2013.

  27. Ogallala aquifer

  28. Oklahoma Dust Bowl

  29. Oklahoma Today

  30. Ogallala aquifer

  31. Ogallala aquifer

  32. Ogallala aquifer

  33. Keystone Pipeline:

  34. Petroleum Pipelines:

  35. Network of Major Natural Gas Pipelines in the U.S.:

  36. Network of Natural Gas Pipelines, U.S. and Canada:

  37. Different hydrocarbons “crack” out of the crude oil at different temperatures:

  38. Natural Gas Processing

  39. Oil Refinery in Anacortes, WA

  40. Louisiana Oil Refineries: Subject to Earth’s Cooperation

  41. Changing Mississippi River Delta Locations

  42. Flooded Oil Refinery In Kansas City along the Missouri River

  43. Proven World Reserves of Oil (CIA, World Factbook, 2011) Total = 1.3+ Trillion Barrels Oil Industry Resources Estimate: 5 Trillion Barrels

  44. Change in declared reserves for some OPEC countries

  45. U.S. uses 20 million barrels/day (25% of World) (7.3 billion/year) The World uses 84 million barrels/day (31 billion/year) U.S. reserves = 24 billion barrels (3.3 years) World reserves = 1400 billion barrels (45 years)

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