Energy’s Grand Challenges Why there isn’t an easy solution

1. Energy’s Grand Challenges Why there isn’t an easy solution

2. Fossil Fuels – Nature’s Battery • Today’s Energy • 85.5 % = fossil fuels (oil, gas, coal) • 14.5 % = nuclear and all other sources • By 2025 • 87 % = fossil fuels (oil, gas, coal) • 13 %= nuclear and all other sources Source: US Energy Information Administration

3. World demand for energy expands 45% by 2030 Mtoe Source: IEA World Energy Outlook 2008

4. Challenge: bridge supply limitations with 24-hour demand for electricity worldwide 1970s: Photo from space - glow from electric lights at night. Image Credit: NASA

5. Challenge: bridge supply limitations with 24-hour demand for electricity worldwide 2005: Photo from space - glow from electric lights at night. • Streamline electricity grid for efficiency • Develop wind and solar storage systems for peak use. • Continue “clean coal” technology advancements • Increase use of natural gas Image Credit: NASA

6. Challenge: Develop new technologies and cultural habits. • Modernize electricity grid • Develop and use more efficient transportation energy (i.e. hybrids, electric cars, hydrogen, natural gas, algae-based fuels) • Redesign homes and buildings • Use less!

7. Challenge: Develop new technologies and cultural habits Engineers use complex computer simulation models for design

8. How important is oil? • U.S. consumes 19.5 million barrels of oil per day • U.S. produces 8.5 million barrels • of oil per day

9. Where would we be without petroleum? You can kiss lipstick good-bye. Deodorant Digital Clocks Dyes Fertilizers Food Preservatives Footballs Furniture Garbage Bags Glasses Glue Golf Balls Hair Dryers Hang Gliders House Paint Ink Artificial Hearts Aspirin Balloons Bandages Blenders Cameras Candles CD Players Clothing CDs/DVDs Computers Containers Crayons Credit Cards Dentures Insecticides Life Jackets Lipstick Luggage Medical Equipment Medicines MP3 Players Pantyhose Patio Screens Perfumes Photographic Film Photographs Piano Keys Roller Blades Roofing Shampoo Shaving Cream Soft Contact Lenses Surfboards Telephones Tents Toothpaste Toys Umbrellas

10. How valuable is petroleum? Enough energy to heat 80 millionhomes 382 million gallons of gasoline to service stations, enabling 200 million driversto get to work, take their kids to school, and take vacations-- traveling 7.5 billion road milesevery day 67 million gallonsto airport terminals, enabling 30,000 flightsto travel around the world In one day, the oil and gas industry delivers Source: API Energytomorrow.org

11. The search for oil and gas Exploration Appraisal Production Refining and Marketing

12. Where we find oil: porous rock

13. Hydrocarbon Traps Images courtesy of http://www.planete-energies.com

14. Challenge: getting the oil out Today, we can access hydrocarbons trapped in rocks with smaller, complex pores using horizontal drilling

15. Challenge: large oilfields increasingly difficult to find. • Seismic technology advances • Breakthroughs in computer processing power and data management needed • Offshore deepwater exploration

16. Seismic Reflections

17. Challenge: getting the oil out • Deepwater Drilling • The Deepwater Pathfinder drillship (shown) can drill in water depths up to 10,000 feet • Dynamic-Positioning - Small thrusters and global positioning keep it stable, shifting less than 50 feet in any direction.

18. Offshore Rig • A deepwater project will: • Take many years to complete • Cost almost $1 billion USD • Employ 2000 people • Bring 50,000 barrels of oil per day to market

19. Production Systems

20. Challenge: Recruiting the next generation of engineers and scientists • Engineering • Petroleum, Chemical, Mechanical, Others • Geoscience • Geology, Geophysics • Sciences • All basic sciences - research • Business • Finance, HR, Management

21. Energy’s Grand Challenges Your Questions