1 00:00:00,012 --> 00:00:06,396 Hello. This is another module for Energy 101 and we looked at energy and society 2 00:00:06,396 --> 00:00:09,656 why society wants energy and how we use it. 3 00:00:09,656 --> 00:00:15,732 Now we're looking at the source for that energy that we extract from the earth in 4 00:00:15,732 --> 00:00:21,672 the form of fossil fuels first and then we'll look at renewable energy sources 5 00:00:21,672 --> 00:00:27,200 like wind and solar. So here's the pie chart that we've seen 6 00:00:27,200 --> 00:00:31,554 before, looking at where we get our energy. 7 00:00:31,554 --> 00:00:38,566 Natural gas, we're going to look at today, provides 36% of the total US 8 00:00:38,566 --> 00:00:43,693 energy demand. It's the largest segment of natural 9 00:00:43,693 --> 00:00:47,771 energy supplies. To our society, natural gas. 10 00:00:47,771 --> 00:00:53,503 If we want to look at where it's coming from, what the situation might be with 11 00:00:53,503 --> 00:00:59,593 natural gas, I am sorry I've said 36%, in fact that's almost a lie, it should say 12 00:00:59,593 --> 00:01:06,197 26, that 3 is a is a typo. 26% of our natural gas, of energy, comes 13 00:01:06,197 --> 00:01:10,177 from natural gas. So I apologize for that typo. 14 00:01:10,177 --> 00:01:14,062 that's where we're going to look at today. 15 00:01:14,062 --> 00:01:20,427 Is above coal and below oil and the amount of energy we get from it for our 16 00:01:20,427 --> 00:01:24,710 whole utilization. So what is natural gas? By the way, 17 00:01:24,710 --> 00:01:29,820 natural gas has essentially no relationship with gasoline? Sometimes 18 00:01:29,820 --> 00:01:33,665 there's confusion between natural gas and gasoline. 19 00:01:33,665 --> 00:01:37,261 Sometimes we just say gas. Leave off the natural. 20 00:01:37,261 --> 00:01:40,872 In fact, most of the time, you see it as just gas. 21 00:01:40,872 --> 00:01:46,505 And is it's easy to get that confused with gasoline but when you say, you say 22 00:01:46,505 --> 00:01:52,701 gas and you use the term accurately, then we're talking about natural gas and where 23 00:01:52,701 --> 00:01:58,284 as coal is a solid and oil is a liquid which we're probably already familiar 24 00:01:58,284 --> 00:02:02,542 with, natural gas is a gas, is a gas. It's just like air. 25 00:02:02,542 --> 00:02:07,354 It's invisible, and, and it's it turns out it's odorless. 26 00:02:07,354 --> 00:02:13,409 It has a chemical form, makeup of carbon plus hydrogen, and remember that coal 27 00:02:13,409 --> 00:02:17,885 only had carbon. But natural gas has carbon and hydrogen, 28 00:02:17,885 --> 00:02:23,107 and we call it a hydro-carbon. We even call call a hydro-carbon even 29 00:02:23,107 --> 00:02:26,998 though it has no Hydrogen in it, but just carbon. 30 00:02:26,998 --> 00:02:33,243 So, being odorless is a safety issue. And because if you have a leak in your, 31 00:02:33,243 --> 00:02:39,212 with your stove and the flame goes out, and the, and something happens to the 32 00:02:39,212 --> 00:02:45,319 stove and the, continues to, the gas to spew out, then it'll kill whoever is in 33 00:02:45,319 --> 00:02:49,985 the room or house. Particularly if you're sleeping, if it 34 00:02:49,985 --> 00:02:55,706 happens over a long period of time. So we put odor, odorant in the gas so you 35 00:02:55,706 --> 00:02:59,679 can smell it. That's for safety reasons, methane is 36 00:02:59,679 --> 00:03:05,112 odorless but itself but there's an odorant that is added to the methane 37 00:03:05,112 --> 00:03:10,593 Natural gas too so that we can detect when in't present, since you can't see it 38 00:03:10,593 --> 00:03:14,365 or feel it. so that we'll know where it is and know 39 00:03:14,365 --> 00:03:19,322 that there's a danger situation. It's, as I've already said, it's not 40 00:03:19,322 --> 00:03:23,992 gasoline made from oil. Gasoline is made strictly from crude oil. 41 00:03:23,992 --> 00:03:27,737 So again, where do, how do we get that? Energy app. 42 00:03:27,737 --> 00:03:33,228 And all of these hydrocarbons have contained what we call chemical energy. 43 00:03:33,228 --> 00:03:39,154 And either the chemical mining structure. And we release that chemical energy as 44 00:03:39,154 --> 00:03:42,898 heat when we react it with oxygen that's in the air. 45 00:03:42,898 --> 00:03:48,350 As I've already said, 21% of the air is oxygen, the nitrogen is also there. 46 00:03:48,350 --> 00:03:54,526 It just goes along for the ride. It doesn't interact in any significant 47 00:03:54,526 --> 00:03:58,613 way. But if you, when you react oxygen with 48 00:03:58,613 --> 00:04:05,572 carbon plus hydrogen as the natural gas is, then of course you still, the carbon 49 00:04:05,572 --> 00:04:12,432 gets, goes to CO2, The oxygen joins the carbon molecule, and oxygen also joins 50 00:04:12,432 --> 00:04:17,902 the hydrogen molecule to produce H2O which is of course water. 51 00:04:17,902 --> 00:04:23,689 So again, the CO2 is a global warming gas, the primary one that we worry about. 52 00:04:23,689 --> 00:04:27,790 That's increasing in concentration in the atmosphere. 53 00:04:27,790 --> 00:04:32,954 And we are afraid that that may be causing global warming over the long 54 00:04:32,954 --> 00:04:36,358 term. Exactly when and how fast is a difficult 55 00:04:36,358 --> 00:04:41,987 prediction but something to worry about. But due to the fact that some of the 56 00:04:41,987 --> 00:04:46,132 energy. From burning natural gas comes from 57 00:04:46,132 --> 00:04:52,048 reacting with hydrogen. As well as the oxygen, whereas carbon 58 00:04:52,048 --> 00:04:57,208 coal has only carbon. The CO2 produced per unit of heat 59 00:04:57,208 --> 00:05:02,426 released is about 2/3 for natural gas versus coals. 60 00:05:02,426 --> 00:05:05,479 So. Natural gas is a little better. 61 00:05:05,479 --> 00:05:11,508 It's 1/3 better regarding CO2 emissions from a global warming view point. 62 00:05:11,508 --> 00:05:17,888 So that's something we'll talk about in more length a little later, but it does 63 00:05:17,888 --> 00:05:23,997 have a lower global warming footprint than coal And, you've heard a lot about 64 00:05:23,997 --> 00:05:29,597 fracking and how we're getting natural gas these days and how we may have a glut 65 00:05:29,597 --> 00:05:34,132 of natural gas, which we'll see how that looks in a few minutes. 66 00:05:34,132 --> 00:05:39,929 but the typical vertical well that we always use is shown there with a vertical 67 00:05:39,929 --> 00:05:43,992 pipe on the right. And where it, you just drill a vertical 68 00:05:43,992 --> 00:05:48,766 pipe down into a reservoir of the sandstone or coarse area where na, 69 00:05:48,766 --> 00:05:52,464 natural gas is contained. And it flows up the pipe. 70 00:05:52,464 --> 00:05:56,502 And we, almost never pump it have to pump it out of the earth. 71 00:05:56,502 --> 00:06:00,697 It just flows out of the earth. So it's not like coal where you gotta 72 00:06:00,697 --> 00:06:04,132 have all this equipment to dig it out and haul it out. 73 00:06:04,132 --> 00:06:08,247 And put it on rail cars and transport it as a solid. 74 00:06:08,247 --> 00:06:14,067 It just flows out and we put it in a pipeline, as we'll see in a minute, and 75 00:06:14,067 --> 00:06:18,582 carry it to its destination. So it's a lot easier to handle. 76 00:06:18,582 --> 00:06:24,777 but the, the diagram on the left shows what we're doing lately, in the last few 77 00:06:24,777 --> 00:06:31,297 years, that's allowed us to, to tap Natural gas that is in the earth in what 78 00:06:31,297 --> 00:06:37,472 we call shale formations and that combined with horizontal drilling. 79 00:06:37,472 --> 00:06:44,072 Notice that you drill down vertically until you get to a shale seam, as it's 80 00:06:44,072 --> 00:06:50,322 shown there, and then you drill horizontally through the seam, so that 81 00:06:50,322 --> 00:06:54,797 you can get more exposure. And get more of the gas from the 82 00:06:54,797 --> 00:06:58,204 formation. If you just drill a vertical well, there 83 00:06:58,204 --> 00:07:03,430 will be a very short distance that you get out of the get of the scene, get into 84 00:07:03,430 --> 00:07:09,143 the scene and that will produce some gas and then you'll be out of it pretty 85 00:07:09,143 --> 00:07:14,831 quickly because these scenes are not very, doesn't have, they don't have very 86 00:07:14,831 --> 00:07:19,117 much thickness. So we now can steer these drilling bits 87 00:07:19,117 --> 00:07:23,694 and drill horizontally. But it won't come out very fast. 88 00:07:23,694 --> 00:07:28,312 And not in any productive, economically productive way. 89 00:07:28,312 --> 00:07:33,833 If you just drill that and wait for the gas to come out, in these shale 90 00:07:33,833 --> 00:07:36,942 formations. But if you fracture it. 91 00:07:36,942 --> 00:07:43,326 And fracking is a term that's been around for a long time and we've used fracturing 92 00:07:43,326 --> 00:07:48,038 in wells for many many years. And like 40 years at least. 93 00:07:48,038 --> 00:07:53,442 I went to fracking of an oil well up in West Virginia back in the. 94 00:07:53,442 --> 00:07:57,673 The early 80s. It's a very, it's a huge operation to 95 00:07:57,673 --> 00:08:04,565 pressurize this fluid and force it down, this liquid down in there at a very high 96 00:08:04,565 --> 00:08:10,761 pressure, that fractures the earth. And fractures there, puts cracks in it. 97 00:08:10,761 --> 00:08:17,057 And that allows passage ways for the gas to flow out of those shale formations and 98 00:08:17,057 --> 00:08:22,234 into the pipe, into the oil pipe and up to the surface of the earth. 99 00:08:22,234 --> 00:08:28,241 Now, the power doesn't stay there after you've drilled the well and it starts 100 00:08:28,241 --> 00:08:31,772 producing. The tower goes away and it's a fairly 101 00:08:31,772 --> 00:08:37,238 clean mundane pipe coming out of the ground with gas coming out mostly by 102 00:08:37,238 --> 00:08:43,059 itself and just goes into a pipe line and you do have to have compressors to pump 103 00:08:43,059 --> 00:08:46,742 it along the, the pipe line. Over long distances. 104 00:08:46,742 --> 00:08:50,742 But that's how we're getting the gas out of shale right now. 105 00:08:50,742 --> 00:08:55,317 And this is showing the footprint when you're drilling these wells. 106 00:08:55,317 --> 00:08:59,492 It doesn't look anything like this when they start producing. 107 00:08:59,492 --> 00:09:04,709 They take all this equipment away. But it's a pretty complex operation with 108 00:09:04,709 --> 00:09:09,477 all the fracking that goes on. You have it bring in many, many trucks 109 00:09:09,477 --> 00:09:14,944 and pumpers they call them, and pump all this fluid down and, and put it at high 110 00:09:14,944 --> 00:09:19,974 pressure to fracture the earth. So it's got a pretty big footprint while 111 00:09:19,974 --> 00:09:24,879 you're drilling the well. And they generally drill a lot of them in 112 00:09:24,879 --> 00:09:28,105 a fairly small area to, to extract all the gas. 113 00:09:28,105 --> 00:09:33,431 this is a picture of the, a typical pipeline this one's above ground. 114 00:09:33,431 --> 00:09:37,912 Some of them are on the ground, some of them are below the ground. 115 00:09:37,912 --> 00:09:43,662 But these are typically three Four feet in diameter and go for hundreds, even 116 00:09:43,662 --> 00:09:49,507 thousand miles with compressor stations along the way that actually burns some of 117 00:09:49,507 --> 00:09:55,057 the gas and gas turbines that drive the compressor that provides a pressure to 118 00:09:55,057 --> 00:09:58,747 force it on through to the next compressor station. 119 00:09:58,747 --> 00:10:04,102 So it's a fairly clean operation particularly once it starts producing. 120 00:10:04,102 --> 00:10:10,286 Okay, so let's look at production. So we talk about all of the big lift that 121 00:10:10,286 --> 00:10:16,489 we've had in the natural gas production. Here's the chart that shows on the 122 00:10:16,489 --> 00:10:22,078 vertical scale the trillions of cubic feet per year of natural gas. 123 00:10:22,078 --> 00:10:28,845 We generally measure natural gas in terms of cubic feet and these are trillions of 124 00:10:28,845 --> 00:10:32,891 cubic feet. Well how much is a trillion? A trillion 125 00:10:32,891 --> 00:10:36,895 is, is one with twelve, twelve zeros behind it. 126 00:10:36,895 --> 00:10:41,545 So it goes thousands, millions, billions, then trillions. 127 00:10:41,545 --> 00:10:46,593 Going up a factor of three every time, multiplying by a thousand. 128 00:10:46,593 --> 00:10:50,846 So those are. 10 to the 12th cubic feet units. 129 00:10:50,846 --> 00:10:58,549 And on the horizontal axis, we see where they chose the production of natural gas 130 00:10:58,549 --> 00:11:04,969 from 1900 all the way to 2011. This day, that goes through the end of 131 00:11:04,969 --> 00:11:09,082 2011. And you can see it builds gradually. 132 00:11:09,082 --> 00:11:16,132 And, and the 50s as they started one, the one, started developing the 133 00:11:16,132 --> 00:11:24,272 infrastructure and reached a peak in about 1972 or so and then it, it, it fell 134 00:11:24,272 --> 00:11:32,032 a little bit and went up in around 1997 or so but has been fairly flat at around 135 00:11:32,032 --> 00:11:37,096 17 or so. Only last year did we actually exceed the 136 00:11:37,096 --> 00:11:44,481 production that we had in 1972 and you can see the rise there from, what is 137 00:11:44,481 --> 00:11:49,262 that? About 2, 2002, 2003 somewhere in there. 138 00:11:49,262 --> 00:11:55,985 There's been a fairly steady rise up to what where we're now producing about 22 139 00:11:55,985 --> 00:12:00,999 trillion cubic feet per year. So we're getting, getting a rise. 140 00:12:00,999 --> 00:12:04,966 Now You don't produce it unless somebody is willing to buy it. 141 00:12:04,966 --> 00:12:09,811 Well where's the extra natural gas going in the last few years? Well, we'll see 142 00:12:09,811 --> 00:12:13,246 the trend at, in a minute but, and where it's all going. 143 00:12:13,246 --> 00:12:17,832 But primarily it's been the increase consumption electric power plants. 144 00:12:17,832 --> 00:12:23,045 I talk about the fact that natural gas burns cleaner than coal from a CO2 145 00:12:23,045 --> 00:12:28,340 viewpoint as well as the fact that it doesn't emit any soot that coal will 146 00:12:28,340 --> 00:12:32,797 produces that you have to have filters basically that clean. 147 00:12:32,797 --> 00:12:38,445 If you take that out, you have sulfur dioxides and nitrous oxides that have to 148 00:12:38,445 --> 00:12:44,627 be taken out when you burn coal. natural gas has very little airy 149 00:12:44,627 --> 00:12:52,443 emmissions, issues with it. So, nat, natural gas power plants is has 150 00:12:52,443 --> 00:13:01,808 been seeing a real boom, particular on using gas, particularly for for cases 151 00:13:01,808 --> 00:13:05,747 where. The price is so cheap as it is now. 152 00:13:05,747 --> 00:13:12,427 The recession decreased the demand for natural gas in the manufacturing 153 00:13:12,427 --> 00:13:20,747 industrial area as well as some other areas and so gas, gas is increasing some 154 00:13:20,747 --> 00:13:26,961 but the prices hit a record low about a 2 months ago it actually fell under $2 a 155 00:13:26,961 --> 00:13:32,187 million thousand cubic feet, million cubic, yeah thousand cubic feet. 156 00:13:32,187 --> 00:13:37,309 About $2 a thousand cubic feet, which is a million BTU's if you want to talk in 157 00:13:37,309 --> 00:13:40,408 BTU's. We'll talk about units later on, don't 158 00:13:40,408 --> 00:13:44,232 worry about the units just the relative size right now. 159 00:13:44,232 --> 00:13:48,192 and, so that, that just shows where we are. 160 00:13:48,192 --> 00:13:54,987 By the way, how much gas is available and it's, I don't talk too much about the 161 00:13:54,987 --> 00:14:01,719 reserves and how much is, still available to get The reason is is a heck of a lot 162 00:14:01,719 --> 00:14:07,099 of speculation and to show how much speculation in it is, two of the major 163 00:14:07,099 --> 00:14:13,093 entities that in our country that, that estimate natural gas reserves reduce the 164 00:14:13,093 --> 00:14:17,072 reserve estimate, the available resource estimate. 165 00:14:17,072 --> 00:14:21,397 That's in Earth that we can get out by 40% earlier in the year. 166 00:14:21,397 --> 00:14:25,514 40% from one year to the next. They actually decreased it. 167 00:14:25,514 --> 00:14:31,099 so the shale gas they decided wasn't as freely available and as much of is as 168 00:14:31,099 --> 00:14:35,952 they originally thought. So, it's kind of reminds of Yogi Berra's 169 00:14:35,952 --> 00:14:41,541 quote, the only time predictions get you into trouble is when they're about the 170 00:14:41,541 --> 00:14:44,662 future. It's a difficult thing to predict. 171 00:14:44,662 --> 00:14:50,842 How much is there? how much of this are we importing? How much of the added to 172 00:14:50,842 --> 00:14:56,897 this production the last July was US gas production? Well here's the top of the 173 00:14:56,897 --> 00:15:01,224 chart there, the blue top. The blue area shows the total 174 00:15:01,224 --> 00:15:06,087 consumption. But we import some to and that's show in 175 00:15:06,087 --> 00:15:10,327 red. You can see the imports are actually down 176 00:15:10,327 --> 00:15:17,392 from 2006 and down from 2006 to 2011. Some of that has to do with our increased 177 00:15:17,392 --> 00:15:22,782 production and some of it has to do with the recession. 178 00:15:22,782 --> 00:15:27,918 But we import. we import about 14% of natural gas. 179 00:15:27,918 --> 00:15:31,917 14%. Not a huge amount, but what's even better 180 00:15:31,917 --> 00:15:39,006 regarding these imports is 90% of these, of this 14% of imports comes from Canada, 181 00:15:39,006 --> 00:15:44,097 which is a friendly North American. Country that we don't have any 182 00:15:44,097 --> 00:15:48,412 significant issues with. So gas, so energy independence we don't 183 00:15:48,412 --> 00:15:53,386 think about as being too big a problem when it comes to importing things from 184 00:15:53,386 --> 00:15:56,825 Canada. you'd like to from a balance of payments 185 00:15:56,825 --> 00:16:00,217 viewpoint. Not have to import it, but from an 186 00:16:00,217 --> 00:16:05,957 independence view point and security view point, this and them possibly cutting us 187 00:16:05,957 --> 00:16:11,643 off we don't consider Canada, we consider Canada to be a pretty safe supplier. 188 00:16:11,643 --> 00:16:15,882 So 98% of the US natural gas demand comes from North America. 189 00:16:15,882 --> 00:16:23,050 About 85% from our own production and then 14% of what we use comes from Canada 190 00:16:23,050 --> 00:16:29,902 of the imports, most of which is Canada. Other countries is are very small, very 191 00:16:29,902 --> 00:16:34,179 small. so gas utilization, where do we use this 192 00:16:34,179 --> 00:16:40,545 gas? Well, we use it in electric power, 34% of it, residential 21%, commercial 193 00:16:40,545 --> 00:16:44,667 buildings 14%, and manufacturing industry 13, 30%. 194 00:16:44,667 --> 00:16:48,135 In vehicles is point 1%. I put that on there. 195 00:16:48,135 --> 00:16:54,016 We do use some for vehicles, it can be done, there's a lot of infrastructure 196 00:16:54,016 --> 00:16:57,623 required and economic issues regarding that. 197 00:16:57,623 --> 00:17:01,692 We'll talk more about that later. So that's how we. 198 00:17:01,692 --> 00:17:07,107 Where we get it and where we get it from, the nature of natural gas and this shows 199 00:17:07,107 --> 00:17:10,726 where we use it in the different segments of our economy. 200 00:17:10,726 --> 00:17:15,838 And so again, we've completed coal and natural gas as the, as energy source, 201 00:17:15,838 --> 00:17:20,672 discussing those and next time we'll start on oil which is a little more 202 00:17:20,672 --> 00:17:23,659 problematic and a little more complicated. 203 00:17:23,659 --> 00:17:24,305 Thank you.