Welcome back to Energy 101. I'm Dr.
Sam Shelton. we're continuing to talk about energy
independence. Energy independence is a topic that we
read a lot about in the media. We see conflicting, what appears to be
conflicting opinions and conflicting, conflicting information about, well, how
close to energy independence we are and whether we're making progress or we're
not making progress towards becoming more energy independent.
And we've already seen in the last module, you can view and define energy
independence in many, many different ways and that's what people do unfortunately
to their own, to make their own point, they do that sometimes.
So what I'm trying to do here is to show all the data and show some of the various
ways you can slice and dice the data and come out with what appears to be
different results regarding whether we're energy independent or not energy
independent. And what the we can do to, to make
ourselves more independent and whether we're making headway in that direction.
So energy independence, this is part two, the last module was also on energy
independence. So, this is the big picture and it shows
the all of our energy resources. It shows crude oil natural gas, natural
gas liquids, coal, and renewables. And the blue is the US, what we produce
within the US right here, and the red, this is as we noted here, US produced and
the red is the, bar is the amount that we import.
So, as we saw last time, as you recall, we import about 60% of our oil and into
the US from outside this country and we produce about 40%.
Natural gas, we're we import only a little bit and that being about 15, 13%
from Canada. we've got natural gas liquids, which
we've defined what are earlier the natural gas liquid section, they're the
liquids that come out with natural gas, such as propanes and butanes, and
ethanes, and coal here, where, where, we actually
export coal, so it's shown as a negative number.
This is an export, when it's below the zero,
then that means that we're exporting. And then renewables, of course, by almost
definition, the renewables we get are all domestically improved domestically
produced. So this is really all of the data in and
of itself and how energy independent, you, we are, looking to this graph is
depends on how you slice and dice the data.
But if we look at the oil imports, there are two ways to look at it.
One way is that we just looked at it earlier, the 60-40 split, we looked at
only the US imports. Well, you could argue the fact that North
American imports is really what we need to worry about and not the US imports,
because we import significant oil from Canada and a little bit from Mexico and
we're saying those are stable and we really shouldn't worry about the imports
from those countries within North America.
They are generally brought in by pipeline and it's fairly easy and straightforward
to import them and we feel like theirs are secure sources but let me point out
when we, we look at that in just a minute.
But let me point out, there's still an economic impact of importing that oil
from even Canada and Mexico, and can, it's a significant economic
impact on the US and its dollars flowing out that could stay here and improve our
economy. But that's the question and as I've just
said we showed last time that from the US alone, viewpoint, not North America but
just the US, we import about 61% of our oil, this is
crude oil. when I say oil it's not enough with crude
oil, it's the black stuff we get out of the ground before we start refining it
and we produce about 39% oil. Everything I'm talking about really in
this whole course is based on energy, on uh,.
2011 data. I don't like to look at monthly data.
You get more erratic, it's hard to make conclusions from it,
and so I wait until the close of 2012 before I update things, and look at
another year. So all of this for 2011.
By the way, it looks like that we will produce more in 2012 than we did in 2000
and 11 and we imported a smaller percentage, so that's this uh,.
61% will go down in 2012, we expect it to,
and the US percentage that is produced here in the country will go up from 39%
when we get the 2012 data in. If you look at the preliminary so far,
that's the way it's looking. but what about North America? If you take
out Canada and Mexico from the imported number, then we are importing about 43%
from outside North America and we are producing about 57% inside North America.
And this, this should not, say here, this is a whoop, go back,
this is a mistake that I have here on U, outside US, that's outside North America.
Okay? Outside North America and this is what's
produced inside North America. So the blue represents the oil we are
producing in Canada US, including Alaska, and in Mexico.
So we're getting about 40%, approximately, of our oil outside of
North America and 57, 60% within North America,
so it's, that's, that's one number that you see.
And the to, to be stated properly, that is North American oil, energy
independence, not U.S. independence.
But that's the way a lot of people have treated it and some numbers you see or
have that used that, and it's certainly a legitimate way to look at it, it just
needs to be made clear what we're talking about.
with we, we are increasing the amount of
liquid petroleum, and so, another way you can look at things is we can look at
liquid petroleum independence, not oil independence, but a liquid and liquid
petroleum and we call what what we mean by liquid petroleum.
Liquid petroleum includes oil, it includes ethenol that's produced and
it includes natural gas liquids. So they, those are what we call
petroleum, liquid petroleum,
and, when people say petroleum, that's generally what they mean.
sometimes they use petroleum in oil in interchangeably and that's really very
confusing when that's done. So, let's look at how we're doing
regarding liquid petroleum independence. And, so, here's, what we got here is what
our production record is through 2011 for ethanol, natural gas, and oil, which all
add up to our natural gas petroleum. So here, here is the ethanol, here is the
natural gas liquids, and here is the oil. And you notice, as we're seeing before,
our oil production has increased. Our natural gas liquids has increased and
our ethanol production has increased. Now, we talked a little bit before about
whether this, these three liquid petroleums should be added together.
They really, in my mind, should only be added together if they're totally
interchangeable. Well, on a near term basis, they are not
interchangeable in many ways, on a one-to-one basis.
I've already talked about natural gas liquids are used for several things, like
ethanes are used to make ethylene and polyethylene plastic bags for instance,
your plastic bags are made from ethane that comes from natural gas liquids not
from oil. ethanol, what about ethanol?
Well, ethanol is a direct displacement of oil that when, that is used for gasoline
in our transportation system. However, we've noted before ethanol,
a barrel of ethanol does not contain the same amount of energy as a barrel of oil,
so you shouldn't really be adding those together on a one-to-one basis.
It takes about 1.7 barrels of ethanol to displace one barrel of oil.
So we really ought to be cutting the ethanol production by about 50% almost,
about 40% to be exact in order to, before we add it to the oil production.
So there's a lot of nuances here and we have to be careful when you're adding
different energy types energy sources, particularly, such as this, because they
all do not have the same value and that can mean several things that, number one,
they can't be interchanged and they can't deplace each other on a one-to-one basis.
But anyway, that's, that's a lot of time, a lot of data that
you're seeing is showing that. And on that basis, from the viewpoint of
natural gas, of liquid petroleum, our imports come down to 50%.
50% is what our imports come down to there and from 60% and here's the oil
produced and, and, and that means liquid petroleum, and here excuse me, that's
oil, and this is ethane, and ethanol and here
is natural gas liquids. So, what we've done here, we've made the
pie bigger by adding these two for energy production.
They add to our oil and that means that this percentage goes down.
So it went down from 60% to about 50% by adding this to the oil to talk about
petroleum. So it's certainly a reasonable way to
look at it. But when you're quoting these numbers,
you need to be careful and define exactly what you're talking about.
You talk about liquid petroleum or what some people refer to as [INAUDIBLE]
petroleum rather than oil. So, in a nutshell about 60% of our US oil
used is produced in North America and 40% is imported from outside North America.
regarding North America, and back to just looking at the North
American versus US. So, that's just shows us some of the
various ways that we can look at energy and oil independence.
Thank you.