1 00:00:00,012 --> 00:00:04,866 Hello, I'm Dr. Sam Shelton, we're continuing here with 2 00:00:04,866 --> 00:00:11,776 Energy 101 and today we're going to talk about a topic that is in the press a lot. 3 00:00:11,776 --> 00:00:17,843 It particularly gets in the press in the political season, but energy 4 00:00:17,843 --> 00:00:22,567 independence. Energy independence has been discussed. 5 00:00:22,567 --> 00:00:28,994 And every president since President Nixon in the US has declared that they want to 6 00:00:28,994 --> 00:00:33,224 make the US energy independent, energy independent. 7 00:00:33,224 --> 00:00:39,256 and, unfortunately, by all, almost any way you want to measure it. 8 00:00:39,256 --> 00:00:43,956 We haven't made any signifigant headway in that direction. 9 00:00:43,956 --> 00:00:48,118 Even though it's stated to be a high priority. 10 00:00:48,118 --> 00:00:51,563 So what do we mean by energy independence. 11 00:00:51,563 --> 00:00:58,737 What is it? That's one of the, one of the big problems is you can define it in many 12 00:00:58,737 --> 00:01:02,342 ways, is energy independence just crude oil. 13 00:01:02,342 --> 00:01:08,591 We consider only crude oil and look at what percent of our crude oil we import, 14 00:01:08,591 --> 00:01:14,476 or do we assume oil and natural gas liquids, as we talked about last time, 15 00:01:14,476 --> 00:01:20,749 which are classified as petroleum. Do we talk about Petroleum as a whole? 16 00:01:20,749 --> 00:01:27,396 And, add, by adding oil and natural gas liquids together, and look at what 17 00:01:27,396 --> 00:01:35,342 percent of those quantities do we import. Or in some cases people have even shown 18 00:01:35,342 --> 00:01:40,382 numbers adding and making equivalent oil, Petroleum. 19 00:01:40,382 --> 00:01:46,967 Gas, natural gas and coal. so there's alot of ways you can assume 20 00:01:46,967 --> 00:01:51,752 it. this, the definition of independence and 21 00:01:51,752 --> 00:01:59,477 dependence so we'll look at some of those today, but, this is part 1 of, of a 2 22 00:01:59,477 --> 00:02:04,032 part, section I'll do on energy independence. 23 00:02:04,032 --> 00:02:10,584 And what does it mean and, and what do we have to do to get there? so first we, 24 00:02:10,584 --> 00:02:16,446 let's look at them individually so we won't get, get buried in the weeds 25 00:02:16,446 --> 00:02:21,346 through so quickly. Let's look at the individual different 26 00:02:21,346 --> 00:02:25,527 fuels because all fuels are not created equal. 27 00:02:25,527 --> 00:02:31,839 it looks, starting at the At the bottom. If you look at crude oil. 28 00:02:31,839 --> 00:02:36,740 This is a bar chart. And the first along the X axis. 29 00:02:36,740 --> 00:02:43,170 These are horizontal bars. And the bar is the length indicates the 30 00:02:43,170 --> 00:02:47,416 energy that we get from each of those fuels. 31 00:02:47,416 --> 00:02:54,676 Crude oil is on the bottom, and. What we see that we get we use that much 32 00:02:54,676 --> 00:03:01,317 energy, which is about 35 giga BTUs, or a quad, sometimes it called. 33 00:03:01,317 --> 00:03:08,033 what we mean by giga is 10 ^ 15. 10^15 BTU's is 1 Giga BTU or quad, 34 00:03:08,033 --> 00:03:13,929 sometimes it's called. But we use 35 giga BTU's in a year. 35 00:03:13,929 --> 00:03:19,682 This was for 2011. And the red part shows what percent of 36 00:03:19,682 --> 00:03:25,056 that is imported, and the blue part what we produce. 37 00:03:25,056 --> 00:03:33,421 And so, you can see that we import in, more than we produce just plain crude 38 00:03:33,421 --> 00:03:38,039 oil, and let's get our terminology straight here. 39 00:03:38,039 --> 00:03:44,417 Crude oil is the same as oil, and sometimes but I like to add crude to it 40 00:03:44,417 --> 00:03:51,652 when I can, to specify that we are really talking about oil as it comes out of the 41 00:03:51,652 --> 00:03:55,315 ground. And Versus oil, that's motor oil for 42 00:03:55,315 --> 00:04:01,334 lubrication and some of those other, other uses for oil by itself that is, if 43 00:04:01,334 --> 00:04:04,742 we refer to as oil, even though we refined it. 44 00:04:04,742 --> 00:04:08,343 let's move up one then, look at natural gas. 45 00:04:08,343 --> 00:04:14,867 As we've looked at these fuels before We saw that most of the natural gas we 46 00:04:14,867 --> 00:04:23,001 produce, we only import about 15% and that's shown as about 25 giga BTU's total 47 00:04:23,001 --> 00:04:30,683 and about 15% of that we import and we noted before that most of that import 48 00:04:30,683 --> 00:04:35,597 right there Comes from Canada. And we feel a little more comfortable 49 00:04:35,597 --> 00:04:39,607 about importing from Can-, Canada, from a security viewpoint. 50 00:04:39,607 --> 00:04:44,487 But, it still has an economic impact. That's money that's flowing out of this 51 00:04:44,487 --> 00:04:47,377 country. That, if it were in this country, it 52 00:04:47,377 --> 00:04:50,282 could create jobs and create infrastructure. 53 00:04:50,282 --> 00:04:55,044 And create. a lot, add a lot to our economy. 54 00:04:55,044 --> 00:05:03,604 but we, our total use as we saw before for natural gas in energy units is less 55 00:05:03,604 --> 00:05:07,202 than oil. it's down about 25. 56 00:05:07,202 --> 00:05:11,518 Next, we talked about Natural gas liquids. 57 00:05:11,518 --> 00:05:18,198 And natural gas liquids, remember, are the liquids that can be separated from 58 00:05:18,198 --> 00:05:25,269 the natural gas, by pressurize them, the gas, and liquiefy em, such as propane and 59 00:05:25,269 --> 00:05:29,449 butane. So the natural gas liquids, are down 60 00:05:29,449 --> 00:05:32,505 around four. Quad of giga BTU's. 61 00:05:32,505 --> 00:05:37,259 Or 4 quads. And essentially, all of that, we produce 62 00:05:37,259 --> 00:05:40,961 ourselves. We import a negative amount. 63 00:05:40,961 --> 00:05:46,948 There is a sliver of red right here, if you look at it very closely. 64 00:05:46,948 --> 00:05:51,882 And then we have coal. Coal is the only fuel that any. 65 00:05:51,882 --> 00:05:58,732 Significant quantity at all we export. And here the, the red part of the bar is 66 00:05:58,732 --> 00:06:05,357 over on the left hand side and is a negative number, so rather than import it 67 00:06:05,357 --> 00:06:11,457 we are exporting that much coal. And the total coal that we use then Is 68 00:06:11,457 --> 00:06:18,532 the blue, and we produce that ourselves. And we, we produce about 21 giga BTU's. 69 00:06:18,532 --> 00:06:25,032 And but that is not a fuel that we worry about from an energy independence, 70 00:06:25,032 --> 00:06:29,257 because we actually are exporting a little bit. 71 00:06:29,257 --> 00:06:35,450 China is buying more and more coal from us Which the coal community obviously 72 00:06:35,450 --> 00:06:40,749 likes in the coal industry because of the jobs in the economy, that economic growth 73 00:06:40,749 --> 00:06:44,436 that it brings. that counters a little bit some of the 74 00:06:44,436 --> 00:06:49,305 decrease in coal production and coal use because of global warming and other 75 00:06:49,305 --> 00:06:52,185 environmental issues. Renewable energy. 76 00:06:52,185 --> 00:06:55,891 Renewable energy. And that, the renewable energy is one 77 00:06:55,891 --> 00:07:01,547 that includes a lot of different things. the biggest one being hydroelectricity. 78 00:07:01,547 --> 00:07:06,010 And, but it also includes ethanol, which we talked about last time. 79 00:07:06,010 --> 00:07:10,712 I believe. And wind energy, solar energy which is 80 00:07:10,712 --> 00:07:17,712 really a negligent amount but ethanol and, and biomass is what we, it was 81 00:07:17,712 --> 00:07:24,282 ethanol get classified as, and hydro from dams, hydroelectricity. 82 00:07:24,282 --> 00:07:30,562 So that's renewable and so when we add all those up and say, well. 83 00:07:30,562 --> 00:07:38,180 Of our total energy that we use which is about 120 Giga BTU's, 120 Giga BTU's is 84 00:07:38,180 --> 00:07:43,421 what we use. you sum all of these up, all of these 5 85 00:07:43,421 --> 00:07:48,832 different fuel resources or energy resources that we. 86 00:07:48,832 --> 00:07:55,977 That we use in order to supply the energy that we want daily to drive our cars and 87 00:07:55,977 --> 00:08:01,552 to heat our homes, etc. Then we come up with 120 and you can see 88 00:08:01,552 --> 00:08:08,803 theres a smaller percentage here, because obviously we're adding fuel, most of 89 00:08:08,803 --> 00:08:12,992 which we produce here at home to the crude oil. 90 00:08:12,992 --> 00:08:17,624 So that brings the. The fraction that we are importing of our 91 00:08:17,624 --> 00:08:21,378 total energy. But that's, that's way misleading because 92 00:08:21,378 --> 00:08:26,936 that's assuming all fuels can be treated equally and as I've already mentioned all 93 00:08:26,936 --> 00:08:31,802 energy is not created equal. that's the first rule you know, that is. 94 00:08:31,802 --> 00:08:35,160 Crude oil is about 16 dollars a million BTU's. 95 00:08:35,160 --> 00:08:39,181 And natural gas is about 3 to 4 dollars a million BTU's. 96 00:08:39,181 --> 00:08:43,538 So why would anyone use oil at all if they were equivalent. 97 00:08:43,538 --> 00:08:47,559 We'd just use natural gas. But in fact, there are some 98 00:08:47,559 --> 00:08:51,287 characteristics that prevent us from doing that. 99 00:08:51,287 --> 00:08:55,064 So. Why are we so interested in oil? Well, 100 00:08:55,064 --> 00:09:01,915 you've seen this chart before, briefly. But I just want to point it out again. 101 00:09:01,915 --> 00:09:09,580 Is that, the problem is, is that, that our, our, transportation system is driven 102 00:09:09,580 --> 00:09:10,782 by oil. And. 103 00:09:10,782 --> 00:09:16,066 That is a issue. And one, but, because all this is oil. 104 00:09:16,066 --> 00:09:21,755 Everything except ethanol, which is a renewable biomass. 105 00:09:21,755 --> 00:09:28,322 And why are we running a transportation system on oil, rather than. 106 00:09:28,322 --> 00:09:35,170 Other cheaper fuels and fuels we produce here at home well has to do with the 107 00:09:35,170 --> 00:09:41,502 characteristics of the fuel and converting that fuel into the type of 108 00:09:41,502 --> 00:09:48,687 energy form that, that our society wants. So that's the reason for our focus on 109 00:09:48,687 --> 00:09:52,067 oil. And as you've already seen we import 110 00:09:52,067 --> 00:09:56,307 about 60% of our oil if we just consider crude oil only. 111 00:09:56,307 --> 00:10:02,325 However about a third of that oil, as we saw, comes from Canada that we're less 112 00:10:02,325 --> 00:10:06,627 worried about. From a trend view point we've seen this, 113 00:10:06,627 --> 00:10:11,986 but when we looked at the import sect module, it was coming down some. 114 00:10:11,986 --> 00:10:15,244 We were at about 65%, and now we're at 60%. 115 00:10:15,244 --> 00:10:20,218 So there's a small trend there. in the last three or four years it, 116 00:10:20,218 --> 00:10:23,354 that's bringing down our percent of oil imports. 117 00:10:23,354 --> 00:10:28,298 And you can see there've been some other periods that have, the same thing has 118 00:10:28,298 --> 00:10:32,525 happened. out here and we can talk about that later 119 00:10:32,525 --> 00:10:38,255 but there, there's good reasons why they went down when they did. 120 00:10:38,255 --> 00:10:44,576 So that's the trend and the oil imports that we've already mentioned, most of 121 00:10:44,576 --> 00:10:50,947 them come from, not most of them but our biggest importer is Canada and Mexico and 122 00:10:50,947 --> 00:10:56,281 they're from North America. So that's some of the topics on from the 123 00:10:56,281 --> 00:11:02,238 big picture on energy independence and we'll talk about it in more detail in 124 00:11:02,238 --> 00:11:04,359 Part 2 next time. Thank you.