1 00:00:00,012 --> 00:00:05,722 Hello we're back to Energy 101. It, is still looking at energy sources. 2 00:00:05,722 --> 00:00:11,497 This time we're going to look at a renewable fuel, and that being ethanol. 3 00:00:11,497 --> 00:00:17,398 ethanol is a energy source. And it is a significant energy source as 4 00:00:17,398 --> 00:00:23,903 we saw last time. It makes up about 5% of our transportation fuel and is, 5% is a 5 00:00:23,903 --> 00:00:29,984 significant number, and it would, does substitute in gasoline on almost a 6 00:00:29,984 --> 00:00:35,970 one-to-one basis, although we'll talk about that a little more later, with, 7 00:00:35,970 --> 00:00:40,354 with gasoline. so a gallon of ethanol in your tank, 8 00:00:40,354 --> 00:00:45,817 mixed with a gallon of, gasoline would displace a gallon of gasoline. 9 00:00:45,817 --> 00:00:50,408 That's an oversimplification, but it is a direct substitute. 10 00:00:50,408 --> 00:00:56,237 But, how much of the Ethanol we're using, where does it come from? What are its 11 00:00:56,237 --> 00:01:00,012 characteristics. You hear a lot of various things about 12 00:01:00,012 --> 00:01:03,587 ethanol, good and bad. So let's look at some of them. 13 00:01:03,587 --> 00:01:08,980 Well, the US ethanol that is produced today is all, it all comes from corn, in 14 00:01:08,980 --> 00:01:14,908 any quantity of significance at all. so when, when you talk about ethanol in 15 00:01:14,908 --> 00:01:20,263 the US, we're talking about corn ethanol, and you hear other terms such as 16 00:01:20,263 --> 00:01:24,962 cellulosic ethanol. We currently do not get any significant 17 00:01:24,962 --> 00:01:30,685 corn ethanol from cellulosic material, which we'll refer to later. 18 00:01:30,685 --> 00:01:36,988 But at the current time, 40% of the corn grown in the US goes to ethanol fuel. 19 00:01:36,988 --> 00:01:43,241 That's a pretty astounding number. that's 40% of the corn grown, and it 20 00:01:43,241 --> 00:01:50,675 really ethanol as a demand for corn Is a, is a compete, competitor to food. 21 00:01:50,675 --> 00:01:57,833 Because of course one of the big producers, users of corn is raising a 22 00:01:57,833 --> 00:02:05,766 beef cattle and hogs and things and pigs and porc and so That, the and price of 23 00:02:05,766 --> 00:02:13,600 anything at your grocery store that's made from corn has gone up in price 24 00:02:13,600 --> 00:02:20,975 because 40% of the demand for corn as a whole goes toward ethanol, which is not a 25 00:02:20,975 --> 00:02:24,407 food product. So that's, that's one issue with corn 26 00:02:24,407 --> 00:02:27,712 ethanol. Again, [INAUDIBLE] cellulosic ethanol, 27 00:02:27,712 --> 00:02:33,500 which we hope to get to here shortly in the future, regarding the US, production 28 00:02:33,500 --> 00:02:38,289 of ethanol, is another ballgame. By the way, Brazil here, Brazil has 29 00:02:38,289 --> 00:02:43,596 started back in the early 80's. Producing ethanol from sugar cane and 30 00:02:43,596 --> 00:02:49,278 they have a long growing season. They have inexpensive labor, in order to 31 00:02:49,278 --> 00:02:52,971 harvest it and deal with it, the handling of it. 32 00:02:52,971 --> 00:02:56,882 so they are getting a substantial amount of their. 33 00:02:56,882 --> 00:03:04,595 transportation fuels from ethanol, and even exporting it some around the world. 34 00:03:04,595 --> 00:03:11,799 so what has happened to ethanol production in the past, From period 1980 35 00:03:11,799 --> 00:03:16,198 to current. So over here, we see that in 1980, the 36 00:03:16,198 --> 00:03:21,899 production of ethanol was very low. It was down at 0.02 or so barrels, 37 00:03:21,899 --> 00:03:27,960 million barrels per day. .02 20,000 barrels per day, very very 38 00:03:27,960 --> 00:03:32,154 low. And it is, it gradually went up as we 39 00:03:32,154 --> 00:03:39,926 moved down to 2001, 2002 and at this point you started having subsidies of 40 00:03:39,926 --> 00:03:46,011 approximately 50 cents a gallon for the production of ethanol to go into 41 00:03:46,011 --> 00:03:50,005 gasoline. And since then, it has skyrocketed. 42 00:03:50,005 --> 00:03:56,766 And that's just, that's basically due not only to the 50 cents a gallon subsidy, 43 00:03:56,766 --> 00:04:03,928 but it also is do to mandates to blend gasoline that's put into automobiles with 44 00:04:03,928 --> 00:04:08,697 10% ethanol. And so, so all cars now, essentially all, 45 00:04:08,697 --> 00:04:16,343 not 100%, but almost 100% of the gasoline that you get at the corner filing station 46 00:04:16,343 --> 00:04:22,392 contains 10% ethanol, and that's, a lot of that, most of that is by mandate. 47 00:04:22,392 --> 00:04:29,438 they mandate every year so many gallons of ethanol must be used to, in blending 48 00:04:29,438 --> 00:04:33,956 with gasoline. And that has driven the production of 49 00:04:33,956 --> 00:04:36,732 ethanol. At the end of 2011 the, 50 00:04:36,732 --> 00:04:44,712 approximately 50%, $0.50 a gallon subsidy for, ethanol blended with gasoline went 51 00:04:44,712 --> 00:04:50,911 away, which had, stayed for gosh 15, 20 years at least. 52 00:04:50,911 --> 00:04:56,119 But it's, that's now gone, but the mandate to blend a certain number of 53 00:04:56,119 --> 00:05:01,748 gallons a year has continued to increase and therefore the production of ethanol 54 00:05:01,748 --> 00:05:07,062 is now almost a million barrels a day. And I've put everything pretty much on 55 00:05:07,062 --> 00:05:10,213 the same. Units here and that is millions of 56 00:05:10,213 --> 00:05:15,695 barrels per day when we're talking about, natural gas liquids or crude oil or 57 00:05:15,695 --> 00:05:18,769 ethanol, barrels per day in the production. 58 00:05:18,769 --> 00:05:24,022 So remember we're producing in this country about 6 million barrels a day of 59 00:05:24,022 --> 00:05:28,788 oil, and we're producing almost one million barrels per day of ethanol. 60 00:05:28,788 --> 00:05:34,609 So that's, that's a pretty good chunk, and it does substitute almost on a one to 61 00:05:34,609 --> 00:05:41,647 one basis in displace in the use of crude oil, so that we don't, don't have to 62 00:05:41,647 --> 00:05:48,452 import that million barrels a day from overseas or outside the country. 63 00:05:48,452 --> 00:05:54,887 So it does reduce crude oil consumption on almost a one-to-one basis, but not 64 00:05:54,887 --> 00:05:58,530 quite. how does, eh, how is, does ethalol, 65 00:05:58,530 --> 00:06:04,459 ethanol used, in our transportation fleet? Well, in mostly it's with 10% 66 00:06:04,459 --> 00:06:10,512 ethanol and 90% gasoline. All cars are now approved for 10, use of 67 00:06:10,512 --> 00:06:15,607 10% ethanol. and even in cars since 2000, produced 68 00:06:15,607 --> 00:06:19,862 since 2000 have just recently been approved. 69 00:06:19,862 --> 00:06:25,513 Retroactively for 15% ethanol. Because with the recession and the 70 00:06:25,513 --> 00:06:32,729 decreased gasoline sales there wasn't, you couldn't get there wasn't enough 71 00:06:32,729 --> 00:06:39,536 gasoline being used to, at 10% ethanol concentration to use all the ethanol that 72 00:06:39,536 --> 00:06:42,732 was mandated to be blended. But 73 00:06:42,732 --> 00:06:48,997 another way that we use ethanol in our transportation vehicles is E85. 74 00:06:48,997 --> 00:06:57,432 E85 is 85% ethanol, 15% gasoline, and it's, can only be used in flex fuel 75 00:06:57,432 --> 00:07:00,462 vehicles. They're special vehicles. 76 00:07:00,462 --> 00:07:07,137 There's some mileage boost that you get if the manufacturer of automobiles make 77 00:07:07,137 --> 00:07:11,577 them flex fuel. It only costs the manufacturer a $100 or 78 00:07:11,577 --> 00:07:18,102 $200 to make Cars that they produce, the Chevrolets, Fords, Cadillacs, Mercedes, 79 00:07:18,102 --> 00:07:23,727 BMWs, whatever they might be, to convert them to where they can use either 100% 80 00:07:23,727 --> 00:07:28,982 gasoline or 15% gasoline and 85% ethanol. You put anything in the tank and 81 00:07:28,982 --> 00:07:34,772 detectors detect what it is and make all the adjustments in the fuel distribution 82 00:07:34,772 --> 00:07:40,365 system so that the car runs fine. there are approximately 10 million flex 83 00:07:40,365 --> 00:07:45,954 fuel vehicles on the road, that's out of a couple hundred million vehicles that 84 00:07:45,954 --> 00:07:49,938 are on the road. So about 5% of them are already flex fuel 85 00:07:49,938 --> 00:07:56,018 vehicles and about million a year, or close to it, are being added to our fleet 86 00:07:56,018 --> 00:08:00,160 on the road today. So that's the way the ethanol is used and 87 00:08:00,160 --> 00:08:06,084 the reason it makes up about. 5% of our total transportation fuel and 88 00:08:06,084 --> 00:08:11,750 that's shown here. We saw this pie chart before, the yellow 89 00:08:11,750 --> 00:08:17,709 is the 5% in ethanol. 72% gasoline, 23% diesel, by the way that 90 00:08:17,709 --> 00:08:23,092 70%, 72% gasoline includes things like aviation fuel. 91 00:08:23,092 --> 00:08:28,489 And that we don't blend ethanol with aviation fuel. 92 00:08:28,489 --> 00:08:34,866 It, it's because of this unique characteristics of aircraft engines. 93 00:08:34,866 --> 00:08:42,526 now I've, I've mentioned a couple times that, that a gallon of ethanol displaces 94 00:08:42,526 --> 00:08:48,104 and can displace a gallon of, approximately a gallon of oil or 95 00:08:48,104 --> 00:08:52,882 gasoline. Well that's not really true as I we look 96 00:08:52,882 --> 00:08:57,772 at it a little closer. And the reason is, is that if I burn a 97 00:08:57,772 --> 00:09:04,207 gallon of ethanol I get about 2/3 of the amount of heat released as I get from a 98 00:09:04,207 --> 00:09:08,712 gallon of gasoline. So that means when I go to the fuel 99 00:09:08,712 --> 00:09:12,762 station and corner gasoline station and pump. 100 00:09:12,762 --> 00:09:18,939 90% ethanol, and 10%, excuse me. 90% gasoline, and 10% ethanol, 101 00:09:18,939 --> 00:09:24,605 I cut my gas mileage a little bit compared to 100% gasoline. 102 00:09:24,605 --> 00:09:32,240 And take, for an example, a, a 30 miles per gallon auto that will get 30 miles 103 00:09:32,240 --> 00:09:38,742 per gallon on 100% gasoline, will get about 28 miles per gallon on. 104 00:09:38,742 --> 00:09:46,295 10% ethanol fuel, that exclamation point should be a 1, I apologize for the typo 105 00:09:46,295 --> 00:09:53,175 here, that's 10%, 10% ethanol. So ethanol will, you'll use more gallons 106 00:09:53,175 --> 00:09:59,116 of ethanol to go the same distance than you will from gasoline. 107 00:09:59,116 --> 00:10:04,042 So there's not quite a 1 to 1 energy balance there. 108 00:10:04,042 --> 00:10:11,636 Well what percent then is that of the, looking at liquefied, a liquid petroleum, 109 00:10:11,636 --> 00:10:18,852 total liquid petroleum, which is a term that is used a lot and you see it in the 110 00:10:18,852 --> 00:10:25,667 press and newspaper articles and TV media presentations, that they talk about 111 00:10:25,667 --> 00:10:29,529 petroleum. So petroleum are liquids, but then they 112 00:10:29,529 --> 00:10:35,028 are made up of ethanol, natural gas, liquids that we talked about last time, 113 00:10:35,028 --> 00:10:38,731 and oil. Now how does the production compare? We 114 00:10:38,731 --> 00:10:43,294 looked at, before, the production of natural gas liquids, 115 00:10:43,294 --> 00:10:48,653 which is the red here, that's added to oil that's in the blue down here. 116 00:10:48,653 --> 00:10:52,346 So, this is about the 6 million barrels per day. 117 00:10:52,346 --> 00:10:57,332 The, natural gas liquids is about 2 million barrels per day. 118 00:10:57,332 --> 00:11:01,222 And this is about 6. And the ethanol is about, 119 00:11:01,222 --> 00:11:06,604 One millions barrels per day. So you can see that these 2 here, in 120 00:11:06,604 --> 00:11:13,277 particular and, well, this crude oil with the marking discovery and things have 121 00:11:13,277 --> 00:11:17,375 increased production significantly since 2008. 122 00:11:17,375 --> 00:11:21,462 So if we add all of them together, we're up here. 123 00:11:21,462 --> 00:11:31,412 at in 2008, we were about 7 1/2, and now, we're about, 8.7 or so. 124 00:11:31,412 --> 00:11:38,247 So that's a significant increase, 7 1/2 to 8.3 or 4, 125 00:11:38,247 --> 00:11:43,378 8.7 or so. So, things, things are improving in 126 00:11:43,378 --> 00:11:50,965 trend, when we add all those together. But, we talked about last time, and 127 00:11:50,965 --> 00:11:57,449 natural gas liquids. they do not substitute on a 1 to 1 basis 128 00:11:57,449 --> 00:12:02,610 for oil. ethanol does a better job of it, but it 129 00:12:02,610 --> 00:12:11,299 substitutes on about a, 1 barrel of, er, ethanol substitutes for about 2/3 barrel 130 00:12:11,299 --> 00:12:14,927 of gasoline, so we had to be careful about that. 131 00:12:14,927 --> 00:12:17,677 Okay. You hear a lot about that, the term 132 00:12:17,677 --> 00:12:22,227 ethanol energy balanced produced, for ethanol produced from corn. 133 00:12:22,227 --> 00:12:28,166 what we're talking about there is how much fossil fuel does it take to make a, 134 00:12:28,166 --> 00:12:33,633 ethanol, that has one unit of energy in it, make the unit anything you want, make 135 00:12:33,633 --> 00:12:38,635 it a million barrels of ethanol or you can it one barrel of ethanol or one 136 00:12:38,635 --> 00:12:42,963 gallon of ethanol. it requires .8 units of fossil fuels to 137 00:12:42,963 --> 00:12:49,889 make energy, enough energy in ethanol to produce one unit of the ethanol. 138 00:12:49,889 --> 00:12:57,797 So it's pretty thin, it's only about 20% gain, but the fossil fuels aren't oil in 139 00:12:57,797 --> 00:13:02,768 general. They're primarily natural gas and coal, 140 00:13:02,768 --> 00:13:09,921 so in some ways it's like we're, we're transforming natural gas and coal into a 141 00:13:09,921 --> 00:13:16,256 transportation fuel, which is not typically used for transportation. 142 00:13:16,256 --> 00:13:22,893 So that's one way to view it, because it takes about .8 equivalent barrels of 143 00:13:22,893 --> 00:13:30,103 natural gas and coal equivalent on an energy basis to make one equivalent unit 144 00:13:30,103 --> 00:13:36,850 of corn ethanol. So it's, it's, it's not a very renewable fuel in that regard, 145 00:13:36,850 --> 00:13:43,889 because we're only gaining about .2 units for every one unit of ethonal we produce, 146 00:13:43,889 --> 00:13:47,544 as fare as gaining in the energy produced. 147 00:13:47,544 --> 00:13:54,903 This is shown here with a corn ethanol That this is percent of ethanol energy 148 00:13:54,903 --> 00:14:02,049 output, how much, how much energy input has to go in to produce the ethanol, 149 00:14:02,049 --> 00:14:08,472 that's fossil fuel inputs. And here's the yellow is coal, the red is 150 00:14:08,472 --> 00:14:13,632 natural gas. Other is green and oil is, is blue. 151 00:14:13,632 --> 00:14:22,067 Now the kind of things that these are used for instance is the tractors that 152 00:14:22,067 --> 00:14:30,787 plow the fields and pick the corn, use petroleum, use diesel fuel or gasoline 153 00:14:30,787 --> 00:14:36,663 and in the processing of, of corn to ethanol, it takes a lot of 154 00:14:36,663 --> 00:14:42,289 natural gas, because you get a lot of water mixed with the ethanol, and you 155 00:14:42,289 --> 00:14:48,360 have to increase the concentration to about 99% pure ethanol and 1% water, and 156 00:14:48,360 --> 00:14:53,793 it comes out of the, at one point it comes out at about 80%, water and 20% 157 00:14:53,793 --> 00:14:57,455 ethanol. So we have to distill it down, it takes a 158 00:14:57,455 --> 00:15:01,766 lot of natural gas. So those the kind of ways that we have to 159 00:15:01,766 --> 00:15:06,084 use fossil fuels to produce ethanol, corn ethanol, that is. 160 00:15:06,084 --> 00:15:11,814 And if you compare that with cellulosic ethanol, that we can certainly do it in 161 00:15:11,814 --> 00:15:17,027 the laboratory, we can get it for instance wood, like wood alcohol that 162 00:15:17,027 --> 00:15:22,052 we're, that you, start, invented, so to speak, 163 00:15:22,052 --> 00:15:30,532 and the process was invented in 8, 1898. it takes very little fossil fuel energy, 164 00:15:30,532 --> 00:15:38,581 in energy input, in order to produce a full unit of, of ethanol energy in the, 165 00:15:38,581 --> 00:15:44,257 etha, when we burn it So, cellulosic ethanol, which wood is just one example 166 00:15:44,257 --> 00:15:48,457 of it, would be much much better from an energy balance viewpoint. 167 00:15:48,457 --> 00:15:53,152 Okay, next time we'll look at look at some of the energy independence, 168 00:15:53,152 --> 00:15:58,267 what all this means. We hear about energy independence, you hear about, a lot about 169 00:15:58,267 --> 00:16:03,237 oil independency, energy independence. So we'll look at those topics now that 170 00:16:03,237 --> 00:16:09,737 we've covered all of the significant fossil fuel production that we have coal, 171 00:16:09,737 --> 00:16:14,103 oil, gas, natural gas, liquids, and ethanol. 172 00:16:14,103 --> 00:16:16,727 Thank you. See you next time.