1 00:00:00,012 --> 00:00:05,280 Hello. We're continuing here with energy sources in Energy 101. 2 00:00:05,280 --> 00:00:11,710 We've looked at coal, we've looked at oil, we've looked at natural gas, and now 3 00:00:11,710 --> 00:00:15,282 we're going to look at natural gas liquids. 4 00:00:15,282 --> 00:00:20,420 Natural gas liquids is not something you hear about very often, but they're 5 00:00:20,420 --> 00:00:25,914 becoming increasingly important because of the increased production that we're 6 00:00:25,914 --> 00:00:30,748 getting from natural gas liquids. What are natural gas liquids? Well, 7 00:00:30,748 --> 00:00:35,262 natural gas liquids is a by-product of natural gas production. 8 00:00:35,262 --> 00:00:38,662 And they come at the well. In other words, they come out of the 9 00:00:38,662 --> 00:00:42,217 ground just like natural gas. As a matter of fact, they come with 10 00:00:42,217 --> 00:00:46,672 natural gas -- that's the reason they're called natural gas liquids, and they are 11 00:00:46,672 --> 00:00:50,902 receiving increased attention due to the increased natural gas production. 12 00:00:50,902 --> 00:00:57,047 And so we increase natural gas production, you increase the, natural gas 13 00:00:57,047 --> 00:01:02,952 liquids that come with them. So, what are the natural gas liquids? 14 00:01:02,952 --> 00:01:09,608 Compared to, if we look at the molecular structure, compared first to natural gas 15 00:01:09,608 --> 00:01:13,145 itself, natural gas is a methane molecule. 16 00:01:13,145 --> 00:01:18,965 1 carbon and 4 hydrogens and at atmospheric temperature and pressure it 17 00:01:18,965 --> 00:01:22,606 is a gas. And as a matter of fact, to get it to a 18 00:01:22,606 --> 00:01:27,575 liquid, you have to actually cool it to -260 degrees farhenheit. 19 00:01:27,575 --> 00:01:33,092 No matter how high you take the pressure, natural gas will not liquify. 20 00:01:33,092 --> 00:01:36,887 That is not true with natural gas liquids. 21 00:01:36,887 --> 00:01:43,944 Natural gas liquids are those gases and heavier hydro-carbons of CH4 that come 22 00:01:43,944 --> 00:01:49,472 out with natural gas. and if you pressurize the natural gas. 23 00:01:49,472 --> 00:01:56,290 With natural gas liquids together the, natural gas liquids will form liquid 24 00:01:56,290 --> 00:02:02,349 droplets and you can separate it. So the liquids that come out with the 25 00:02:02,349 --> 00:02:05,197 natural gas is ethane. C2H6. 26 00:02:05,197 --> 00:02:11,339 Propane, C3H8, butane, C4H10. Isobutane, which turns out to have the 27 00:02:11,339 --> 00:02:18,868 same chemical formula, C4H10, but it's isomer of butane we won't deal with the 28 00:02:18,868 --> 00:02:25,208 chemistry of what an isomer is for now. And pentanes which are C5H12, and 29 00:02:25,208 --> 00:02:32,033 pentanes actually come out at Atmospheric temperature and pressure as liquids. 30 00:02:32,033 --> 00:02:37,962 All the rest of them are, they actually come out as gas and don't liquify until 31 00:02:37,962 --> 00:02:42,562 you pressurize it. But you, you're familiar with propane or 32 00:02:42,562 --> 00:02:48,672 butane because we use it in our grills, our home grills to barbecue and things. 33 00:02:48,672 --> 00:02:52,644 And we also use it in tanks and a lot of homes to heat homes. 34 00:02:52,644 --> 00:02:57,553 So, but they have to be pressurized. And when we reduce the pressure, to 35 00:02:57,553 --> 00:03:02,791 atmospheric pressure, which we do when we use them, just like in a gas grill. 36 00:03:02,791 --> 00:03:06,432 Is the pressure regulated that drops the pressure. 37 00:03:06,432 --> 00:03:10,943 From 50 or 100 pounds per square inch. Down to atmospheric pressure. 38 00:03:10,943 --> 00:03:16,211 The liquid that's in the tank turns back into the gas, as they were when they came 39 00:03:16,211 --> 00:03:19,894 out of the ground. So that's why we call them natural gas 40 00:03:19,894 --> 00:03:23,185 liquids. They're gasses, except for pentane that 41 00:03:23,185 --> 00:03:29,751 come out of the ground with natural gas. production and they are hydrocarbons as, 42 00:03:29,751 --> 00:03:34,758 as we see here. So why are, for what are their general 43 00:03:34,758 --> 00:03:41,153 characteristics? Well as I've already commented, they come out of the ground 44 00:03:41,153 --> 00:03:47,443 with natural gas in the gaseous state. And, we then pressurize the mixture. 45 00:03:47,443 --> 00:03:52,784 And we separate the natural gas liquids. And so, they all liquify when you 46 00:03:52,784 --> 00:03:56,760 pressurize them. Except pentane, which is liquid and 47 00:03:56,760 --> 00:04:00,007 atmospheric. And it comes out of the ground. 48 00:04:00,007 --> 00:04:03,432 And atmospheric pressure is already a liquid. 49 00:04:03,432 --> 00:04:08,608 But counter to these natural gas liquids. Natural gas itself even though we 50 00:04:08,608 --> 00:04:13,757 pressurize is going to comes out of the ground to separate the liquids, the 51 00:04:13,757 --> 00:04:18,036 natural gas itself will not liquify. As a matter of fact, it will never 52 00:04:18,036 --> 00:04:23,140 liquify at atmospheric temperature no matter to what pressure you take it to. 53 00:04:23,140 --> 00:04:28,707 That's just the nature of methane. So, we will talk to later about natural 54 00:04:28,707 --> 00:04:35,587 liquified natural gas, LNG, which is totally different from NGL's. 55 00:04:35,587 --> 00:04:42,672 So we got confusing, nomenclature here, but natural gas liquids. 56 00:04:42,672 --> 00:04:48,673 Are these things that we just mentioned. The ethanes, the butanes, the propanes, 57 00:04:48,673 --> 00:04:52,631 or the pentanes. And but if we take natural gas and 58 00:04:52,631 --> 00:04:57,366 refrigerate it to extremely cold temperatures minus 260 degrees 59 00:04:57,366 --> 00:05:01,048 fahrenheit. Then natural gas li, itself will liquefy 60 00:05:01,048 --> 00:05:06,160 and we call that liquefied natural gas. So the liquid is on the front end, for 61 00:05:06,160 --> 00:05:11,123 the liquefied natural gas, rather than the tail end of natural gas liquid. 62 00:05:11,123 --> 00:05:16,827 So don't get confused over that the, the nomenclature that is used commonly in the 63 00:05:16,827 --> 00:05:21,284 industry. So what is the production of natural gas 64 00:05:21,284 --> 00:05:28,469 liquids and what's the trend? Well you can see from this graph that over here on 65 00:05:28,469 --> 00:05:35,729 the right out here at 2011. The production has gone up significantly. 66 00:05:35,729 --> 00:05:44,068 And it was fairly level from 1981 at one and a half million barrels a day, until 67 00:05:44,068 --> 00:05:51,020 it grows gradually up to about 1.8 million barrels a day in 2007. 68 00:05:51,020 --> 00:05:55,552 And since then has increased to about 2002. 69 00:05:55,552 --> 00:06:01,929 Barrels of oil equipped barrels of liquids a day that comes out here in the 70 00:06:01,929 --> 00:06:07,090 US with the natural gas and is used and marketed and processed. 71 00:06:07,090 --> 00:06:12,752 So, production has gone up as I mentioned and that's because of the. 72 00:06:12,752 --> 00:06:18,823 Horizontal, well, natural gas, fracking, that has surged natural gas production. 73 00:06:18,823 --> 00:06:24,126 because the production of natural gas, and the production of natural gas 74 00:06:24,126 --> 00:06:28,555 liquids, go up together. So we have had a surge, and that's why, 75 00:06:28,555 --> 00:06:33,403 people are talking them more now. but that's the trend. 76 00:06:33,403 --> 00:06:38,704 it's not dramatic. But it's up from 1.7, 1.8, to 2.2. 77 00:06:38,704 --> 00:06:44,753 So that's about a 20% increase. Which is a signifigant increase. 78 00:06:44,753 --> 00:06:51,850 So, how much is, is that, compared to crude oil? Compared to crude oil in 79 00:06:51,850 --> 00:06:55,539 barrels. You can hear the showing the two 80 00:06:55,539 --> 00:07:01,515 together, stacked together. The dark blue is the production of oil in 81 00:07:01,515 --> 00:07:06,502 million barrols a day and we see how it declined from 1981. 82 00:07:06,502 --> 00:07:13,412 Down to 2008, where it hit about two thou--uh 5 million barrels a day and now 83 00:07:13,412 --> 00:07:17,746 has increased up to about 6 million barrels a day. 84 00:07:17,746 --> 00:07:22,353 So, out here. So it's 6 million barrels per day here, 85 00:07:22,353 --> 00:07:29,760 and, and here it was down about 5.7 or, 5, point 5, so, oil production has 86 00:07:29,760 --> 00:07:34,363 increased. And, and natural gas liquids have 87 00:07:34,363 --> 00:07:41,616 increased also by this amount right here compared to this back in 2008. 88 00:07:41,616 --> 00:07:50,214 So it hasn't, it, it, it does add to the liquified petroleum production in the US 89 00:07:50,214 --> 00:07:56,936 and we'll get to the confusion over that and how Comparing these and adding 90 00:07:56,936 --> 00:08:02,125 natural gas liquids to oil is sometimes appropriate and sometimes totally 91 00:08:02,125 --> 00:08:07,804 inappropriate, and we'll see why that it might be inappropriate because they 92 00:08:07,804 --> 00:08:11,272 don't, they don't totally trade off you can't. 93 00:08:11,272 --> 00:08:17,493 Utilize 1 for the other and displace oil, for instance, with natural gas liquids on 94 00:08:17,493 --> 00:08:22,865 a 1 to 1 basis, well why is that? What are some of the uses for natural gas 95 00:08:22,865 --> 00:08:28,423 liquids? The natural gas liquids is dominated by the ethane, we mentioned 96 00:08:28,423 --> 00:08:32,051 before the chemical content and the different. 97 00:08:32,051 --> 00:08:38,746 components of natural gas liquids. And here they are listed again, ethane, 98 00:08:38,746 --> 00:08:45,276 propane, butane, isobutane and pentane. and but, you can see the largest 99 00:08:45,276 --> 00:08:49,961 percentage of natural gas liquids comes out as Ethane. 100 00:08:49,961 --> 00:08:56,191 Well how, how do we use ethane and how valuable is it to us? Well, it's made to 101 00:08:56,191 --> 00:09:02,258 make plastics and, and antifreeze. And the primary manufacturing sector that 102 00:09:02,258 --> 00:09:06,022 uses this is the manufacturing. For our plastics. 103 00:09:06,022 --> 00:09:11,080 So it's valuable to us and we're, we're using it in this case for the molecule. 104 00:09:11,080 --> 00:09:16,570 We're not burning that, that chemical molecule ethane, it's we're using the 105 00:09:16,570 --> 00:09:20,862 chemical, the module for the characteristics of the molecule. 106 00:09:20,862 --> 00:09:25,999 That allow us to make plastic, which of course is growing, and has grown for 107 00:09:25,999 --> 00:09:30,048 many, many, years. Propane as I already mentioned is comes 108 00:09:30,048 --> 00:09:35,034 from methane, is another component and it's used for home heating and gas 109 00:09:35,034 --> 00:09:38,882 grills,and is called, and liquified petroleum gas. 110 00:09:38,882 --> 00:09:43,717 Liquified petroleum gas here, the LPG that you hear a lot of the times, is 111 00:09:43,717 --> 00:09:48,947 generally a mixture of propane and butane, together but is dominated by 112 00:09:48,947 --> 00:09:54,142 building heating, most of the propane is used for heating of buildings. 113 00:09:54,142 --> 00:10:00,350 And also some for transportation. But you, we can run cars off of liquid, 114 00:10:00,350 --> 00:10:05,093 off of propane. just have tanks in the trunk, just like 115 00:10:05,093 --> 00:10:10,630 the tanks are a different shape and different size than we use in home 116 00:10:10,630 --> 00:10:15,385 grills. But we put them in cars and, and the car 117 00:10:15,385 --> 00:10:20,862 can run with a fairly inexpensive conversion off of propane. 118 00:10:20,862 --> 00:10:27,842 Butane is about 7% of the natural gas liquid production, issues for synthetic 119 00:10:27,842 --> 00:10:31,512 rubber, lighter fluids. And LBG again. 120 00:10:31,512 --> 00:10:37,582 Because LBG is a mixture of these 2. So those are used for magnets. 121 00:10:37,582 --> 00:10:44,547 Butane is used for manufacturing LBG. And again, some for transportation. 122 00:10:44,547 --> 00:10:48,682 In the colder climates, butane is a problem. 123 00:10:48,682 --> 00:10:53,192 Because when it gets cold, the pressure of the. 124 00:10:53,192 --> 00:10:57,385 the tank in the, of the butane liquid tank goes down. 125 00:10:57,385 --> 00:11:02,798 And in very cold weather it becomes atmospheric pressure of less, and you 126 00:11:02,798 --> 00:11:07,132 can't get it out. So, butane is mostly useful in the warmer 127 00:11:07,132 --> 00:11:10,157 climates. not the colder climates. 128 00:11:10,157 --> 00:11:15,997 The propane can be used in the colder climates as well as the warmer climates. 129 00:11:15,997 --> 00:11:22,177 Isobutane, what's its utilization? It's used in the chem, for chemicals, making 130 00:11:22,177 --> 00:11:26,227 chemicals and used in the gasoline refining process. 131 00:11:26,227 --> 00:11:30,551 And so, but the. Primary sector is manufacturing. 132 00:11:30,551 --> 00:11:35,445 And also some transportation there. But mostly manufacturing. 133 00:11:35,445 --> 00:11:39,887 pentanes. Pentanes, by the way, is, is different 134 00:11:39,887 --> 00:11:45,386 from the rest of these liquids. In that, it is liquid at, at atmospheric 135 00:11:45,386 --> 00:11:49,445 temperature and pressure. But it makes up about 14%. 136 00:11:49,445 --> 00:11:53,217 and. It's used in gasolines and polyn, 137 00:11:53,217 --> 00:11:59,692 polystyrene blowing, which is the foam. And it's used primarily for, for 138 00:11:59,692 --> 00:12:07,067 transportation because it's used in the, production and refinery of gasoline. 139 00:12:07,067 --> 00:12:14,147 So this gives us some clue about What some of the trade-offs and displacement 140 00:12:14,147 --> 00:12:19,592 might occur of liquid, natural gas liquids with crude oil. 141 00:12:19,592 --> 00:12:26,607 So if we produce an extra barrel of natural gas liquids, will it decrease and 142 00:12:26,607 --> 00:12:31,522 substitute for a barrel of oil? Well, probably not. 143 00:12:31,522 --> 00:12:38,360 Because, about at least, number 1 the ethane is not used in, in crude oil type 144 00:12:38,360 --> 00:12:43,331 of applications. so, and that's the biggest chunk. 145 00:12:43,331 --> 00:12:50,775 propane is used very little, it supplies maybe a tenth of a percent or maybe less 146 00:12:50,775 --> 00:12:57,993 of the transportation fuel. so right there you've got the dominant, 147 00:12:57,993 --> 00:13:03,173 the dominant, components of natural gas liquids. 148 00:13:03,173 --> 00:13:10,042 So you really can't displace, if you produce a extra Barrel of natural gas 149 00:13:10,042 --> 00:13:14,617 liquids, it doesn't displace and save a barrel of oil. 150 00:13:14,617 --> 00:13:21,362 they can't be done on a one-to-one basis. So, in many cases they shouldn't be 151 00:13:21,362 --> 00:13:26,300 lumped together. And yet, because natural gas liquids are 152 00:13:26,300 --> 00:13:32,538 up and the common term used for petroleum liquids, that includes natural gas 153 00:13:32,538 --> 00:13:38,851 liquids and crude oil, and by the way ethanol which we'll talk about later, is 154 00:13:38,851 --> 00:13:44,913 a more common term. And a lot of times, the production of, 155 00:13:44,913 --> 00:13:52,021 of, petroleum liquids will be reported. But, sometimes it can be a little bit 156 00:13:52,021 --> 00:13:56,132 like adding pounds of gold to pounds of silver. 157 00:13:56,132 --> 00:14:01,978 you can say, well I've got 20 pounds of gold and silver. 158 00:14:01,978 --> 00:14:06,422 But that doesn't really tell you anything about. 159 00:14:06,422 --> 00:14:11,747 The value of that 20 pounds. If you have to know the components then 160 00:14:11,747 --> 00:14:17,932 you have to know what each one's worth. So the value of the natural gas liquids 161 00:14:17,932 --> 00:14:22,307 relative to oil. Which is the one that we have an import 162 00:14:22,307 --> 00:14:26,542 problem with, which we've seen a little bit already. 163 00:14:26,542 --> 00:14:30,965 Is not nessesarily solved with. natural gas, liquids. 164 00:14:30,965 --> 00:14:36,563 But if you approximate it, somewhere maybe one barrel of natural gas liquids 165 00:14:36,563 --> 00:14:40,118 will displace about a third of the barrel of oil. 166 00:14:40,118 --> 00:14:44,742 Because their use in the gasoline refinery processes, etc. 167 00:14:44,742 --> 00:14:49,809 Matter of facts, I've read some articles lately thee in the chemical industries 168 00:14:49,809 --> 00:14:54,994 and the, the fossil fuel industries, little worried about how they're going to 169 00:14:54,994 --> 00:14:59,232 use these natural gas liquids, with all this increased production. 170 00:14:59,232 --> 00:15:04,257 Because the, the demand in the market place may not be there for continuing 171 00:15:04,257 --> 00:15:08,782 increased natural gas liquids. So all fossil fuels are not made the 172 00:15:08,782 --> 00:15:11,857 same. Obviously we can't for instance throw a 173 00:15:11,857 --> 00:15:16,335 chunk of coal into our car. And run our car with it. 174 00:15:16,335 --> 00:15:23,542 So coal and oil is not equivalent, natural gas liquids and oil is not 175 00:15:23,542 --> 00:15:29,676 equivalent either. So, but if we add, excuse me, if we add 176 00:15:29,676 --> 00:15:37,590 petroleum liquid, excuse me US liquid petroleum and we look at the percent 177 00:15:37,590 --> 00:15:41,584 imported. Then we come up with a different number. 178 00:15:41,584 --> 00:15:47,011 Crude oil plus natural gas liquids. we won't look at this slide too much, 179 00:15:47,011 --> 00:15:50,762 we'll call all talk more about this issue more later. 180 00:15:50,762 --> 00:15:56,412 But you hear different. different numbers about what percent of 181 00:15:56,412 --> 00:16:00,877 our energy and oil da, do we import versus produce here. 182 00:16:00,877 --> 00:16:06,637 And if you add natural gas liquids to oil, which this one does, where we, 183 00:16:06,637 --> 00:16:11,782 whereas we got about 60% before, it's about 55% or a little less. 184 00:16:11,782 --> 00:16:15,822 This, in the case of, you, liquid petroleum. 185 00:16:15,822 --> 00:16:24,305 what's the other use, shorts of the other transportation fuels? I mentioned natural 186 00:16:24,305 --> 00:16:31,619 gas liquid as transportation fuel. the, gasoline of course is the big one at 187 00:16:31,619 --> 00:16:36,752 72%, diesel at 23% but the other one is ethanol Which is 5%. 188 00:16:36,752 --> 00:16:39,757 We're going to look at this in the next lecture. 189 00:16:39,757 --> 00:16:43,837 And you can see compressed natural gas, bio-diesel and propane. 190 00:16:43,837 --> 00:16:48,902 When you round them off, it's less than half percent of the total transportation 191 00:16:48,902 --> 00:16:51,507 fuel. So natural gas liquids are not real 192 00:16:51,507 --> 00:16:56,002 important, significantly important in our transportation days. 193 00:16:56,002 --> 00:16:56,600 Thank you.