Natural Resources of North America Our World Our

Natural Resources of North America Our World, Our Resources

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Natural Resources of North America OUR HYDROCARBON Geology Creates RESOURCES Resources Class Itinerary Week 1 – Geology Creates Resources Week 2 – Our Forest Resources Week 3 – Our Rock & Mineral Resources Week 4 – Our Hydrocarbon Resources Week 5 – Our Water Resources Week 6 – Our Resources in ‘Google Earth’

FROM LECTURE NO. 2 So, Let’s have a look at HYDROCARBONS 4

OUR HYDROCARBON RESOURCES HYDROCARBONS – Our Natural Resource – 5 THE SCIENCE SUPPLY/DEMAND HOT TOPICS • What are hydrocarbons? • How do they form? • Are non-organic hydrocarbons possible • What are reserves? • Reserves & Production – Gas § Worldwide § USA – Oil § Worldwide § USA • Imports • How long will our reserves last • How do hydro-carbons fit into our overall energy picture • Hydrocarbons & CO 2 By Rocky Romero

SCIENCE OF HYDROCARBONS What are hydrocarbons? 6

WHAT IS A HYDROCARBON? 7 • A hydrocarbon is an organic Hydrogen No. consisting entirely compound atom Carbonand carbon atoms of hydrogen Atoms REFINED INTO: • 1 -C Carbon Hydrogen C 5 -C 8 Gasolines • 4 -H atom Hydrogen C 9 -C 16 Diesel/kerosene/jet fuels • CH 4 = Methane atom C 17 -C 25 Fuel oil & lub oils • Hydrocarbon gases Hydrogen C 25 -C 34 Paraffin waxes have between 1 & 4 carbon atoms atom C 35+ Asphalts • Hydrocarbon liquids (oil)/solids have between 5 and 40 carbon atoms http: //www. chemistryland. com/Elementary. School/Building. Blocks/hydrocarbons. More. jpg

SCIENCE OF HYDROCARBONS How do they form? (on Earth) 8

SCIENCE OF HYDROCARBONS • Formed by natural processes such as anaerobic* decomposition of buried organic material • Organic materials for the formation of hydrocarbons are dead animals, algae, zooplanktons, etc. • Burial/compression/decomposition/breakdown results in hydrocarbons (in order of increasing burial depth): Ø Oil Shales, Oil, Natural Gas • “Fossil Fuels” are hydrocarbons plus coal (& peat)

SCIENCE OF HYDROCARBONS • Oil is formed at 160 to 290 deg. F, known as the “Oil Window”; 290 to 440 deg. F is the “Natural Gas Window”

SCIENCE OF HYDROCARBONS • Oil is formed at 160 to 290 deg. F, known as the “Oil Window”; 290 to 440 deg. F is the “Natural Gas Window” However… • BUT, if the kerogen is very old, these windows could drop to: OIL 85 to 200 deg. F; GAS- 200 to 360 deg. F • Deep burial and decomposition can take millions of years, (sometimes 600+ million yrs) therefore fossil fuels are not considered a renewable resources

HYDROCARBONS IN SPACE • Some hydrocarbons are abundant in the solar system as shown by comets, meteorites, & asteroids Can there be… • Lakes of liquid methane and ethane have been HYDROCARBONS found on Titan, Saturn's largest moon WITHOUT • Hydrocarbons have been detected in nebulae and BIOLOGY! in the atmospheres of Jupiter, Saturn, Uranus and Neptune is cited as evidence of the (confirmed by the Cassini-Huygens Mission) formation of hydrocarbons without biology 12

HYDROCARBONS IN SPACE What could be the source of those hydrocarbons? Hummm? 13

HYDROCARBONS IN SPACE Maybe the… Abiogenic Petroleum Origin Hypothesis! can explain it? 14

ABIOGENIC PETROLEUM ORIGIN HYPOTHESIS • Abiogenic petroleum origin was proposed as an alternative mechanism of petroleum origin • Theory is that petroleum was formed from deep carbon deposits, perhaps dating to the formation of the Earth 15 • Supporters of this hypothesis suggest that: a) great deal more petroleum exists on Earth than commonly thought, and that b) petroleum may originate from carbonbearing fluids that migrate upward from the mantle

ABIOGENIC PETROLEUM ORIGIN HYPOTHESIS • 16 th century - Hypothesis was first proposed by Georgius Agricola (a German Catholic, scholar and scientist; known as "the father of mineralogy“) • 19 th century – Additional proposals by notable Prussian geographer Alexander von Humboldt, the Russian chemist Dmitri Mendeleev and the French chemist Marcellin Berthelot • 20 th century - Resulted in two main theories ü Russian-Ukrainian “Deep, Abiotic Petroleum Origins Theory” 16 ü Thomas Gold's “Deep Gas Theory”

ABIOGENIC PETROLEUM ORIGIN HYPOTHESIS Russian-Ukrainian “Deep, Abiotic Petroleum Origins” theory Fayalite, Forsterite & • Hydrocarbons were generated within the Earth by interaction Olivine are of water with iron oxide and calcium carbonate mantle rocks • With increasing depth in the Earth’s crust, the oxygen content would decrease to zero and the content of hydrogen would increase leading to the formation of hydrocarbons at depth • Therefore, petroleum is considered to be a primordial material and is therefore not a fossil fuel • Hydrocarbons are proposed then to migrate from the upper mantle to the Earth's surface along deep faults http: //en. wikipedia. org/wiki/Abiogenic_petroleum_origin 17

ABIOGENIC PETROLEUM ORIGIN HYPOTHESIS Thomas Gold's “Deep Gas Theory” • Dr. Thomas Gold is a well recognized Austrian-born, astronomer/ astrophysicist from Cambridge/Harvard/Cornell, who worked under Dr. Fred Hoyle (of radar fame), and co-authored the “Steady-State theory” of the universe • He focused on the role of major earthquakes in facilitating the migration path of gases, and in particular methane, from the deep Earth • The slow upward migration and cooling of methane was assumed to cause “polymerization” (long chain molecules) yielding longer hydrocarbon molecules and very long crude oil molecules • As a result, he suggested that deep faults (from present/past 18 seismicity) may play a role in generation of major oil and gas fields

ABIOGENIC PETROLEUM ORIGIN HYPOTHESIS Evaluation of the Hypothesis Theories • Reservoirs that the Russians claim were a direct result of abiogenic formation can be proven to be generated from shale rock sources, which is in accordance with currently accepted biogenic theory of oil formation • Geologists now consider the abiogenic formation of petroleum scientifically unsupported, and most agree that petroleum is formed from organic material. • 19 However, some argue that the abiogenic theory cannot be dismissed yet because the mainstream theory still has to be established conclusively

ABIOGENIC PETROLEUM ORIGIN HYPOTHESIS BUT… Recently discovered thermophilic bacteria in cooling magma produces methane and other hydrocarbon gases The scientific community now has to acknowledge that abiogenic hydrocarbons exist but in very minute quantities Soooo, “it ain’t over till it’s over”! (PS> Where do galactic hydrocarbons come from? ) 20

OUR HYDROCARBON RESOURCES HYDROCARBONS – Our Natural Resource – 21 THE SCIENCE SUPPLY/DEMAND HOT TOPICS • What are hydrocarbons? • How do they form? • Are non-organic hydrocarbons possible • What are reserves? • Reserves & Production – Gas § Worldwide § USA – Oil § Worldwide § USA • Imports • How long will our reserves last • How do hydro-carbons fit into our overall energy picture • Hydrocarbons & CO 2

RESERVES Classification of Reserves is key! What are Reserves? The amount of oil & gas in a reservoir currently available for production Why are they important? : Reserves when produced generate a cash flow and by estimating the total cash flow from a well, the “expected value” of that well can be calculated. This sets the limit on much you can spend in developing a well for any expected Return on Investment (ROI)! 22

RESERVES Classification of Reserves is key! • Proved (P 90) Reserves (1 P)– 90 % chance or greater that the reserves are there; must have “very high certainty” that reserves can be “economically” recovered with current technology. Security and Exchange Commission (SEC) allows only reporting of P 90 as official data. • Probable (P 50) Reserves (2 P)- 50 % chance that the reserves are there • Possible (P 10) Reserves (3 P)- 10 % chance that the reserves are there • Remember estimates are based on data from a location as much as 2 miles below the surface, and on characteristics of a hole 6” in diameter extrapolated over several hundred acres of reservoir… 23 Reserves estimating is more of an art than a science!

SOURCES OF SUPPLY Who has the most GAS RESERVES? RESERVES 24

NATURAL GAS BIG PICTURE Non. Associated (onshore/offshore) Shale Gas Fischer Tropsch Process Methanol to Liquid Process 25 Tight Gas To Liquids Natural Gas Methane Hydrates Associated (onshore/offshore) Coalbed Methane Biomass Gas Natural Gas Liquids

WORLDWIDE PROVEN GAS RESERVES Percent of Worldwide Gas Reserves by Country Australia Algeria 2. 0% Iraq 2. 0% Norway Malaysia Indonesia China 1. 3% 1. 7% 1. 6% 2. 5% Nigeria 2. 9% Venezuela 3. 0% Saudi Arabia 4. 5% No. 4 United States 5. 3% 5 th No. 1 Iran 18. 2% 4 Countries No. 2 have 57% of World’s Proven. Russia 17. 8% No. 3 Gas Reserves Qatar 11. 4% Turkmenistan 9. 5% Largest holder of proven gas reserves 26 http: //en. wikipedia. org/wiki/List_of_countries_by_natural_gas_proven_reserves

HISTORICAL USA GAS RESERVES Why did the addition of reserves just take off? TECHNOLOGY! 27

29 D ir 19 ect 70’ ion s al Dr lg Ea r Te ly c h 20 niq 00 ’ u e. T s 20 0 est Mu 2 -2 0 08 l t Fra ista c ki ge ng 8 0’ Ho s riz & 9 on 0’s tal Dr lg 19 4 Fra 7 c ki ng HOW TECHNOLOGY CHANGED THE LANDSCAPE Major increases in Shale Reserves

HOW TECHNOLOGY CHANGED THE LANDSCAPE Summary: 4 KEY TECHNOLOGICAL ADVANCES + 1 TRIAL APPLICATION AREA 30 1970’s Directional Drlg 2002 -2008 Multistage Fracking 1947 Fracking 80’s & 90’s Horizontal Drlg Major increases in Shale Reserves Early 2000’s Technique Test

TOP US GAS FIELDS BY RESERVES 31 http: //www. eia. gov/pub/oil_gas/natural_gas/analysis_publications/maps. htm#pdf

USA MAJOR OFFSHORE GAS FIELDS http: //www. eia. gov/pub/oil_gas/natural_gas/analysis_publications/maps. htm#pdf 32

USA SHALE GAS – QUICK OVERVIEW Let’s move on to Gas Production… 33 http: //www. eia. gov/pub/oil_gas/natural_gas/analysis_publications/maps. htm#pdf

USA NATIONAL GAS PRODUCTION Peak Gas 34 New Peak Gas

PROJECTED SHALE GAS INCREASE Gas Production, TCF/yr Alaska -35% 35 Next 25 years… Sources Shale Gas +178% Tight Gas +5% Offshore Gas +1% Other -25%

USA REGIONAL GAS PRODUCTION MAP 5 Primary Regions of Production 37 http: //www. eia. gov/pub/oil_gas/natural_gas/analysis_publications/maps. htm#pdf

NATURAL GAS PIPELINE NETWORK Over 305, 000 miles of Natural Gas Pipelines! Let’s move to Oil Reserves… 38 http: //www. eia. gov/pub/oil_gas/natural_gas/analysis_publications/ngpipeline/index. html

“OIL” BIG PICTURE Conventional oil Onshore Shale Oil Tight Oil Bitumen (Oil Sands) 39 Offshore Heavy Oil Extra Heavy Oil (oil shale)

PRODUCTS FROM 1 BBL OIL TYPICAL PRODUCTS FROM 1 BARREL OF OIL Lubricants Hvy Fuel 1% Oil 4% Asphalt 3% Other 11% Gasoline 46% Diesel 26% Jet Fuel 9% 40 http: //en/wikipedia. org/wiki/File: Usesofpetroleum. png

WORLD PROVEN OIL RESERVES 2012 World Proven Reserves (% of group) Sau 41 Canada used to be 15 th… 19% 15% 12% 11% 10% 12 th Largest holder of oil Canada Proven Reserves-Note Big Jump in 2003 reserves 7% 7% 4% 3% 3% 2% 2% 2% 1% 1% Thanks to Technology! di A rabi a (1 Ven ) ezu ela (2) Can ada (3) Iran (4) Iraq Kuw (5) ait ( 6) UAE Rus (7) sia ( Liby 8) Nige a (9) ria ( Kaz 10) akh stan (11) USA ( Qat 12) ar (1 Chin 3) a (1 4) Bra zil ( 15) Alge ria ( 16) Mex ico (17) 20% 18% 16% 14% 12% 10% 8% 6% 4% 2% 0%

42 di A rabi a (1 Ven ) ezu ela (2) Can ada (3) Iran (4) Iraq Kuw (5) ait ( 6) UAE Rus (7) sia ( Liby 8) Nige a (9) ria ( Kaz 10) akh stan (11) USA ( Qat 12) ar (1 Chin 3) a (1 4) Bra zil ( 15) Alge ria ( 16) Mex ico (17) Sau WORLD PROVEN OIL RESERVES 2012 World Proven Reserves (% of group) 20% 18% 16% 14% 12% 10% 8% 6% 4% 2% 0% 19% 15% 12% 11% 10% 7% 7% 4% 3% 3% 2% 2% 2% 1% 1%

LET’S REDRAW THE WORLD (size of the country indicates size of reserves)

http: //en. wikipedia. org/wiki/File: US_Proved_Oil_Reserves. png as of April 2013 US OIL RESERVES OVER TIME Peak Oil? Future Peak? 44 Let’s move to Oil Production

WORLD OIL PRODUCTION 2012 World Oil Producers (% of group) 17% 18% 16% 2 nd Largest producers of oil reserves 15% 14% 12% 10% 8% 6% 6% 4% 6% 5% 5% 4% 4% 4% 3% 3% 2% 45 Sau di A rab ia (1) USA (2) Rus sia (3) Chi na ( 4) Can ada (5) Iran (6) UAE (7) Iraq (8) Me xico (9) Kuw ait (10 ) Bra zil ( 11) Nig eria Ven ezu (12) ela (13 Nor way ) (14 Alg eria ) (15 ) 0%

SOURCES OF WORLDWIDE PRODUCTION Let’s look at US historic production 41% 48% 11% 46 http: //online. wsj. com/news/articles/SB 10001424053111904060604576572552998674340

US PRODUCTION & IMPORTS Peak Production Peak Imports US Production US Imports http: //upload. wikimedia. org/wikipedia/commons/thumb/a/a 0/US_Crude_Oil_Production_and_Imports. svg/750 px-US_Crude_Oil_Production_and_Imports. svg. png 47

US PRODUCTION & IMPORTS Peak Production Possible NEW Peak? US Production US Imports 2017? http: //upload. wikimedia. org/wikipedia/commons/thumb/a/a 0/US_Crude_Oil_Production_and_Imports. svg/750 px-US_Crude_Oil_Production_and_Imports. svg. png 48

US CRUDE OIL PRODUCTION Plateau Then a for decline 3 or 4 the yrsfuture into What about Oil Imports… 49 http: //www. financialsense. com/sites/default/files/users/u 2929/images/2014/EIAOil. Prod. jpg

US PRODUCTION & IMPORTS Where are the imports coming from? 50 Imports coming down -16% (to 2012)

WHERE DO THE OIL IMPORTS COME FROM? No America So America North Africa & Middle East Sub-Saharan Africa Russia & Prot. Europe Asia 28% Top 15 USA Imports by Country of Origin* (* Top 15 countries equal 90% of imports) 24% 8% Venezuela 5% 9. 1% 5% 2% 100% Russia 4. 5% Iraq 4. 5% Nigeria 4. 2% Kuwait, 2. 9% Algeria, 2. 3% Angola, 2. 2% Mexico 9. 8% Saudi Arabia 12. 9% 53 Colombia 4. 1% Brazil, 2. 1% Ecuador, 1. 7% United Kingdom, 1. 4% Netherlands, 0. 9% Canada 27. 8% North America South Africa(primarily America & Middle 28% Canada) East 24%28% Source data http: //www. eia. gov/dnav/pet_move_impcus_a 2_nus_ep 00_im 0_mbbl_a. htm

OUR HYDROCARBON RESOURCES HYDROCARBONS – Our Natural Resource – 54 THE SCIENCE SUPPLY/DEMAND HOT TOPICS • What are hydrocarbons? • How do they form? • Are non-organic hydrocarbons possible • What are reserves? • Reserves & Production – Gas § Worldwide § USA – Oil § Worldwide § USA • Imports • How long will our reserves last • How do hydro-carbons fit into our overall energy picture • Hydrocarbons & CO 2

HOW LONG WILL OUR OIL LAST? Reserves 100 gal Reserves 90 gal R-T-P = 100 = 10 yrs 10 Production 10 gal/yr http: //en. wikipedia. org/wiki/Oil_reserves_in_the_United_States 56

HOW LONG DO WE HAVE? The point of this story, we’ve been. R-T-P saying= that 100 =we’re 10 yrs Reserves about to run out of oil 10 for over 100 years gal 90 and we still have considerable oil reserves left. Don’t believe everything you hear in the Production 10 gal/yr news! Do your own research! Let’s look at the top 5 USA Oil Producing States http: //en. wikipedia. org/wiki/Oil_reserves_in_the_United_States 57

TOP 5 USA OIL-PRODUCING STATES Tex as a sk Ala California Oklahoma North Dakota http: //en. wikipedia. org/wiki/Oil_reserves_in_the_United_States 58

59 http: //www. eia. gov/oil_gas/rpd/topfields. pdf TOP OIL & GAS FIELDS IN USA (2009) How do Hydrocarbons fit 29% 22% into the Energy Big Picture…

HOW DO HYDROCARBONS FIT INTO THE OVERALL ENERGY PICTURE REPLACE HYDROCARBONS NOW? http: //sayanythingblog. com/files/2012/05/oil-pump-sunset. jpg 60 http: //cdn 2. content. compendiumblog. com/import_uploads/f 7176 ceb-7 dcd-4331 -9 da 4 b 2 d 7617 fd 453/3122 acf 9 bae 8 b 1 bdd 089 d 6 a 2 d 0 fa 53 a 1/609510_89761624 -e 1300839188159. jpg

USA HISTORICAL ENERGY CONSUMPTION Age of Wood Age of Coal Age of Oil petroleum coal wood 61

2012 USA ENERGY USE BY SOURCE Nuclear 8% Renewable 9% Petroleum 36% Coal 18% FOSSIL FUELS 81%Gas Natural 27% 62

2012 USA ENERGY USE BY SOURCE Nuclear 8% Renewable 9% LET’S LOOK AT A Petroleum 36% HYDROSINGLE CHART Coal CARBONS THAT LINKS THESE 18% 63% SOURCES Natural Gas 27% 63

USA ENERGY SOURCES/USES Total Energy Electricity Gen. Wasted 27. 0% 61. 2% Residential Renewable Nuclear 8. 4% Solar Hydro Wind Geothermal Biomass 8. 9% Natural Gas 27. 3% Coal 18. 3% Oil 36. 5% Energy Sources 11. 1% % Energy Uses Commercial 8. 7% Industrial 25. 1% Transport 28. 0%

USA ENERGY SOURCES/USES 1. 02 or 3%. 632 or 2% 8. 12 or 23% Petro 34. 7 24. 7 or 71%

Energy Consumption EST. CHANGE IN US ENERGY CONSUMPTION 66 Regardless of what the changes are, HYDROCARBONS still make up a whopping 63% of our energy source Next 25 LET’S MOVE ON years… TO 0 7% 1 s + le b a w e n e R ENVIRONMENTAL Natural Gas +10% DOWNSIDE OF Nuclear +10% HYDROCARBONS ! Coal +5% Oil -5%

COMPARISON OF CO 2 FROM DIFFERENT HEAT SOURCES LBS of CO 2 per UNIT OF HEAT (million BTU) 210 250 200 161 157 139 117 LET’S CONVERT THESE NUMBERS RELATIVE TO NATURAL GAS 100 50 ra lg as tu an e op Pr e lin so ro Ga Na /h el fu el es Di Ke go ea tin ll t (a al Co se il ) es yp oo ne 0 W 68 159 Best CO 2 output 150 d Lbs of CO 2 per million BTU Worst CO 2 output 229

CO 2 EMISSIONS RELATIVE TO NAT. GAS BURNING PETROLEUM PRODUCTS BURNING COAL PRODUCES CO 2 Emissions Relative to Natural BURNING WOOD PRODUCES 95% PRODUCES 36% MORE CO 2 80% MORE CO 2 95% 80% THANNATURAL GAS! THAN GAS! 38% 36% 34% SOOOOO… 69 Na tu ra lg as an e op Pr e lin so Ga Ke ro se ne go tin ea el es Di Co al fu el (a /h ll t W yp oo es ) d il 19%

USA ENERGY SOURCES/USES 80% of Waste from 2 Sources Electricity Generation 44% Generated by COAL 42% Transportation (trucks/autos) 36% Fueled by PETROLEUM 92. 4% SO, over 90% And, about ½ of Total the energy waste Energy in in transportation electricity Wasted is from is production 61. 2% PETROLEUM from COAL which 80% putsmore 36% pours more CO 2 into thethe atmosphere –WE’RETAKINGA DOUBLE HIT ANOTHER HERE!HIT DOUBLE HERE!

PRIMARY FUEL SOURCE FOR ELECTRICITY GENERATION BURNING COAL PRODUCES 80% MORE CO 2 THAN NATURAL GAS! Mainly 72

SOURCES OF ELECTRICITY GENERATION Electricity generated Next 25 years… 73 0% 4 + s a G Natur al % 9 + 9 s l e b a w R ene Coal +8% Nuclear +12%

SOURCES OF ELECTRICITY GENERATION Rocky’s Intermediate Term Solution… Electricity generated Next 25 years… 75 More Natural Gas; eliminate coal

USA HISTORICAL ENERGY CONSUMPTION Age of Wood Age of Coal Age of Oil down Will the future be the Age of NATURAL increasing GAS? or down Age of RENEWABLES? flat 76 increasing

USA HISTORICAL ENERGY CONSUMPTION themassive future be the It’s our Technology Will A of NATURAL cleanest is finding Age distribution GAS? or Age of Oil Age of Coal Age of Wood option lots of it network exists Our Fossil Fuel down Age of RENEWABLES? Our “Low-Carbon” increasing NATURAL GAS HERE’SBRIDGE AN IDEA… down Past 77 flat increasing Future (MIT: http: //mitei. mit. edu/publications/reports-studies/future-natural-gas )

OUR HYDROCARBON RESOURCES HYDROCARBONS – Our Natural Resource – 78 THE SCIENCE SUPPLY/DEMAND HOT TOPICS • What are hydrocarbons? • How do they form? • Are non-organic hydrocarbons possible • What are reserves? • Reserves & Production – Gas § Worldwide § USA – Oil § Worldwide § USA • Imports • How long will our reserves last • How do hydro-carbons fit into our overall energy picture • Hydrocarbons & CO 2

OUR HYDROCARBON RESOURCES TH AN REMEMBER… KY O U! GEOLOGY ROCKS 79

REFERENCES http: //musicgreen. files. wordpress. com/2013/09/llnl-usa-energy-usage. jpg http: //hvo. wr. usgs. gov/volcanowatch/archive/2007/07_02_15. html http: //www. iea. org/statistics/topics/energybalances/ http: //cdiac. ornl. gov/ http: //www. sankey-diagrams. com/tag/energy/page/10/ http: //www. esrl. noaa. gov/gmd/dv/iadv/ http: //www. livescience. com/40451 -volcanic-co 2 -levels-are-staggering. html http: //www. skepticalscience. com/volcanoes-and-global-warming. htm http: //www. petroleumhistory. org/Oil. History/pages/Whale/whale. html http: //www. mts. net/~william 5/history/hol. htm http: //en. wikipedia. org/wiki/List_of_countries_by_proven_oil_reserves http: //www. eia. gov/countries/index. cfm? view=reserves http: //www. eia. gov/oil_gas/rpd/topfields. pdf http: //en. wikipedia. org/wiki/History_of_the_petroleum_industry_in_the_Un http: //en. wikipedia. org/wiki/Oil_reserves_in_the_United_States http: //en. wikipedia. org/wiki/File: Global. Peak. Oil. Forecast. jpg http: //www. space. com/1686 -life-building-blocks-abundant-space. html http: //en. wikipedia. org/wiki/Petroleum_product http: //www. fromthewilderness. com/ http: //en. wikipedia. org/wiki/Abiogenic_petroleum_origin http: //en. wikipedia. org/wiki/Thomas_Gold http: //en. wikipedia. org/wiki/Peak_oil https: //www. cia. gov/library/publications/the-world-factbook/ http: //www. eia. gov/dnav/pet/hist/Leaf. Handler. ashx? n=pet&s=mcrimus 1&f=m http: //en. wikipedia. org/wiki/World_energy_resources_and_consumption http: //energytomorrow. org/economy http: //www. offshoreenergytoday. com/turkmenistan-dragon-oil-eyeshttp: //en. wikipedia. org/wiki/Natural_gas production-of-100 -000 -bopd-in-2015/ http: //www. eia. gov/pub/oil_gas/natural_gas/analysis_publications/maps. http: //www. eia. gov/analysis/studies/worldshalegas/ htm#pdf http: //www. petroleum. co. uk/ http: //petrowiki. org/Associated_and_nonassociated_gas http: //en. wikipedia. org/wiki/Coalbed_methane http: //en. wikipedia. org/wiki/List_of_countries_by_natural_gas_imports http: //www. greentechmedia. com/articles/read/with-natural-gas-will-wehttp: //en. wikipedia. org/wiki/Liquefied_natural_gas swap-oil-imports-for-gas-imports/ http: //www. eia. gov/pub/oil_gas/natural_gas/analysis_publications/ngpipeline/ http: //www. eia. gov/pub/oil_gas/natural_gas/analysis_publications/ngpipeline_maps. html e/index. html http: //en. wikipedia. org/wiki/M_king_hubbert http: //en. wikipedia. org/wiki/Olivine http: //en. wikipedia. org/wiki/Forsterite http: //en. wikipedia. org/wiki/Serpentinite 80

OUR NATURAL RESOURCES All class materials either is or will be on 1) the University’s website and on 2) our Website at: www. vagabondgeology. com ANY QUESTIONS? ? 81

OIL &GAS ECONOMICS OPEC MEMBERSHIP Saudi Arabia Algeria Ecuador Kuwait Nigeria UAE 82 Iran Angola Iraq Libya Qatar Venezuela Gabon & Indonesia are former members

FINAL WORD ON PEAK OIL “Things don't stand still in the energy industry. With the passage of time, unconventional sources of oil, in all their variety, become a familiar part of the world's petroleum supply. They help to explain why the plateau continues to recede into the horizon—and why, on a global view, Hubbert's Peak is still not in sight. ” 83

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VIDEOS EXPLAINING DRILLING IN THE MARCELLUS This are some of the best videos I’ve seen on You. Tube on the subject of drilling operations in general and the Marcellus Shale in particular Drilling Topic Video Link Site Selection http: //www. youtube. com/watch? v=w 7 Ap. Js. ZM Elk&feature=relmfu Well Pad Preparation & Drilling the well http: //www. youtube. com/watch? v=Ap. V 59 t. Y 4 v 0 k&feature=relmfu Completion of the well http: //www. youtube. com/watch? v=9 Jb. KA 8 H_ KIg&feature=relmfu Production & Marketing http: //www. youtube. com/watch? v=ga 7 Hib. Lm Sd 8&feature=relmfu Frac water cleanup & reuse http: //www. youtube. com/watch? v=JIXAtk 7 h. A BA&feature=relmfu Reclamation of the well site http: //www. youtube. com/watch? v=Gi. U 5 Dwd. I GQw&feature=relmfu 85

HOW MANY PEOPLE CAN EARTH SUSTAIN? Future world energy needs are dependent on world population growth 8. 1 9. 2 10. 5 7. 1 Billion people at present 86

FEWER NEW DISCOVERIES; MORE EXTENSIONS 87

COMPARE ENERGY SOURCES Energy Density 88

ENERGY DENSITY OF VARIOUS ENERGY SOURCES 0 0 1 1 Pr es su Ura riz n ed ium Hy -2 Na dro 35 tu ge ra n Ga so P l Ga lin rop s e a Ga / D ne so ies lin el e Et E 85 ha no Co l W al oo G d u L T i Lit th np N hi iu ow T um m d b e Al -ion att r ka b er li a y Ni ne tte Le -M ba ry ad H tte -a ba ry cid tt ba ery tte ry 0 2 5, 000 7 10, 000 11 15, 000 14 20, 000 15 Megajoules per pound 21 25, 000 21 30, 000 Nuclear Energy has over 37 million times the energy in 1 lb of fuel than any other energy source 24 35, 000 56 40, 000 37, 711, 714 ENERGY DENSITY - Energy per lb - 89 http: //en. wikipedia. org/wiki/File: Energy_density. svg

HOW DO FUEL SOURCES COMPARE? ENERGY DENSITY - Energy lb - compressed Other thanper Nuclear, Following hydrogen, Hydrogencompressed is the next best energyis Natural Gas and it’sseveral derivatives source but involves costly steps to be able to use it 60 55. 8 Mega. Joules per pound 50 40 30 24. 3 21. 0 20 20. 9 19. 4 15. 0 14. 7 13. 6 10 8. 2 2. 1 1. 4 r de ow T Gu np TN d W oo l no Et ha e ac it Co al , a nt hr e. E 85 l lin so t. F ue l Je Ga e lin so Ga se /D ie an e Pr op as l. G ra tu Na Pr e ss ur ize d Hy dr og en 0 90 http: //en. wikipedia. org/wiki/File: Energy_density. svg