Coal, Natural Gas, Tar Sands: More Greenhouse …worldbusiness.org/wp-content/uploads/2012/12/Freedom...195 6 Coal, Natural Gas, Tar Sands: More Greenhouse Gases at Higher Cost “Unless

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6Coal, Natural Gas, Tar Sands:

More Greenhouse Gases at Higher Cost

“Unless we free ourselves from a dependence on these fossil fuels and chart a new course on energy in this country, we are condemning future generations to global catastrophe…. So why can’t we do this? Why can’t we make energy security one of the great American projects of the twenty-first century? The answer is we can.”

− U. S. Senator Barack Obama, The Coming STorm, April 3, 2006

Can the other fossil fuels save the day? No.

• Theotherfossilfuelsallemitgreenhousegasesandincreaseglobalwarming.

• Coalandnaturalgascannotreplaceoilfortransportation.

• Coal is a major source of greenhouse gases and acid rain;naturalgassuppliesarelimited.

• Tarsandsareaneco-disasterforair,landandwater.

• Oil shale is one of the most environmentally destructiveprocessesintheworld;fortunatelythecommercialtechnologyisnotnoweconomical.

• Investing in obsolete or destructive technologies delays ourtransitiontoclean,sustainableenergy.

FreedOmFrOmmId-easTOIl

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Can the Other Fossil Fuels Fill the Gap?ComedianandmagicianrobertOrbensummedupourenvi-

ronmental problem in one cynical statement: “There’s so muchpollutionintheairnowthatifitweren’tforourlungs,there’dbenoplacetoputitall.”

Thereismorecarbonandsulfurinouratmospherethaneverbefore.Thereismoremercuryinourwaterthaneverbefore.Therearemorepeopleontheplanetthaneverbefore.and,therearemorefossilfuelsbeingburnedthaneverbefore.

This is no coincidence. rather, it is the “price of progress”within the dominant fossil-fuel paradigm.amazingly, all thispollu-tionwasneverinevitable.WelearnedlongagofromtheIndustrialrevolutionthattechnologycouldadvancewithoutthesacrificeofbreathable air. (For example, london banned certain uses of coalin the20thcenturywhen itbecameapparent that thepermanentsmokeinlondonwastoohighahealthpricetopayforhouseholdwarmth.)

Inamerica,however,thecurrentchallengeofpollutioncreatedasaby-productoftechnologicaladvancementistheoutcomeofademocratic system in which special-interest lobbies, such as thefossil-fuelindustry,wereallowedtorunroughshodoverthepublicinterest.

aconsequenceofindustrializednationschoosingtobeaddictedtothefossil-fuelparadigmisthatwearenowsittingpoisedatatimewhenglobaleconomieswilldeteriorateandglobaltemperatureswillgraduallyriseunlesswefinallyheedthewakeupcalloftheenergyandclimatecrisis.

Twenty-sevenyearshavepassedsincetheIranianrevolutionandthelastOPeCoilshocksofthe1970s.Now,asecondcrisisisemergingonaglobalscale—aperfectstormofpeakoil,geopoliti-calinsecurity,globalclimatechange,andChina’sandIndia’senergyappetite to fuel their explosive economic growth. We have nowenteredtheendgameoftheeraofcheapoil.TheU.s.hasonelastchancetoshiftawayfromfossilfuelsandtomakearelativelypeace-fulandorderlytransitiontoanewenergyeconomy.

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ChaPTer6:COal,NaTUralgas,TarsaNds

everyamericanbusinessandconsumerhasfelttheeffectsofhighoilpricesatthepump.deepdown,weallwishforoneoftwothings:permanentlylowergaspricesorcheapreplacementsforoilthatwillnotfundamentallychangeourwayoflife.

Frequently, the “Big Four” are touted as alternatives to oil.Theyarealsoknownas the“other fossil fuels”—naturalgas, coal,tar sands, andoil shale. Ifwewant to createa sustainableenergyfutureandreducegreenhousegases,however,theBigFourprovideanything butapermanentorviablesolution.Tosolveourenergyandclimatecrisis,government,business,andconsumersmustultimatelylookbeyondfossilfuels.Inbuildingabridgefromtheendofcheapoiltoarenewable,carbon-freeenergyfuture,oneoftheotherfossilfuels—naturalgas—doeshavea transitionalrole toplay.Coal, tarsands,andoilshale,ontheotherhand,exacerbateabadsituation.

duringthistransition,totheextentanyofthefourfuelsareused, it is important that they be used correctly.We cannot everaffordtoseeanyofthemasthesolepermanentreplacementforoil.Becausetheyarenotrenewable,theywillneverprovidelong-termstability. They will neither afford protection from unpredictablemarketprices,norfreeusfromscarcity.atbest,theywillonlydeferthedayandtheneedtoconstructlifeboatstoescapeafutureTitanic.Insum,theotherfossilfuelswillneverbeabletocompletelyfillthegap.

The “Other” FuelsCloseexaminationrevealsthatcoal,naturalgas,tarsands,and

oilshaleareproblematic,eachinitsownway,inthecontextofcreat-ingahealthyandsustainableenergyfuture.eachfuelhasitsprosandmanymorecons.

TheU.s.hassubstantialreservesoftwofuels,naturalgasandcoal.giventhesereserves,itmayseemlogicaltoconcludethatwehave a reasonable supply of fossil fuels at our fingertips and thatweshoulddiversifyourfutureenergyuseamongthem.Theharshrealities are that natural gas and coal cannot provide solutions toouroilsupplyproblemsbecausetheyareusedprimarilytogenerate


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electricity.Theyarenot liquidfuels for transportation.Worseyet,coal poses tremendous and intractable greenhouse gas andhealthproblemsthatwillnotberesolvedbytheproposedpanaceaof“cleancoal.”

Furthermore,asFigure1shows,relianceonoilandnaturalgasforelectricalgenerationwillleadonlytoincreasedenergyandelec-tricitypricesovertime.eventheprojectionsinFigure1haveprovedtobewoefullyoptimistic.energypriceshavenotdroppedin2007aspredictedbuthaverisentohistoricalhighsacrossthenation.

Figure 1. History and Projections of Energy Prices, 2005

Source: U.S. Energy Information Administration, Annual Energy Outlook, 2007

If we continue our exclusive dependence on coal and natu-ralgaswhilecountriessuchasChinaandIndia,whohavesurgingannualgdPgrowth,continuetoincreasetheirdemandforenergy,ournationalandglobalenvironmentwillsufferfurtherseriousharm,andglobalenergyresourcecompetitionwillincrease.

Itisveryimportant,therefore,toanalyzetherepercussionsofcontinuingdownthe“hardpath”oftheexpandedrelianceonfossil

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FUEL PROS CONS COMMENTS

Coal 2

Low cost and plentiful; easy to transport.

Produces more CO2

than any other fuel; acid rain SO

2; smoke,

ash need disposal; mining methods are destructive.

“Clean” coal extracts only SO

2; CO

2still produced.

SO2 mixed with O

2

becomes SO3 which reacts

with water, becoming acid rain.

Natural Gas3

Low cost; produces less CO

2

than coal, oil.

Not sustainable; limited reserves. Methane, a major greenhouse gas.

If natural gas becomes the “new oil,” prices will skyrocket. However, natural gas would be ideal as a transitional fuel. Cleanest fossil alternative.

Tar Sands ~3.5 MBD in Canada ~0.3 to 0.6 MBD in Venezuela

One of the largest reserves is in Canada, one of America’s closest allies.

One of the most greenhouse polluting and least desirable forms of fossil fuel from an environmental point of view. Generally removed by strip mining. Two tons produces one barrel of oil. It requires large amounts of water.

Oil extracted from tar sands is profitable today. Canada and Venezuela possess most of the useable tar sands.

fuels. as Figure 2 and the subsequent discussion shows, in eachcase,thenegativesoftheotherfossilfuelssignificantlyoutweighthepositives.

Figure 2. Pros and Cons of Coal, Natural Gas, Tar Sands, Oil Shale and Petroleum

Figure 2 continued . . .


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Coal: One Step Forward, Two Steps BackCoal,themostabundantfossilfuelintheU.s.,isalsothemost

detrimentaltoourphysicalhealthandthemostdestructivetotheenvironment.Onlythescarcityofoilhasrenewedthenation’sinter-estincoal.Unfortunately,turningtocoal(again)wouldbetakingonestepforwardandtwostepsback.Nothingwouldexacerbateglobal

FUEL PROS CONS COMMENTS

Oil Shale

Estimated 1.1 trillion barrel-equivalent of oil locked in U.S. shale oil reserves.

Highly inefficient (3:1 energy output/input ratio); uses vast amounts of water; produces massive rock waste; strip mining is highly destructive; Australian shale project was shut down due to air pollution; severe groundwater concerns; shale oil contains much more CO

2 than petroleum;

carcinogenic tailings; commercial production of 1 MBD is probably 20 years into the future.4

Shale oil is embedded in rock. It is extracted by retorting the rock that is saturated with kerogen by heating it to about 500 degrees Celsius and refining the extracted kerogen into petroleum. Shell has been experimenting with in situ extraction, heating the oil with electricity while the rock is still in the ground, and then transporting it for refining. Another Shell subsidiary is experimenting with a super-cold freeze-barrier around the shale while the shale deposits are heated within this “envelope.”

Oil/Gasoline5

Easily extracted compared to coal, tar sands, and oil shale; produces less CO

2 than coal

New oil reserves are becoming scarce; large reserves located in dangerous countries; rising costs; produces CO

2; oil

spills cause major environmental damage.

Figure 2 continued

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warmingandclimatechange faster thanrelyingoncoal topowerelectricplantsinordertochargeelectriccarsorplug-inhybridsinan“allelectricworld”future.

Whensulfurdioxide(sO2)isreleasedduringcoalcombustion,itreactswithoxygen(O2)tocreatesulfurtrioxide(sO3).Whenthesulfurtrioxidereactswithwater,sulfuricacidformsandfallsbacktotheearthasacidrain.Coalcombustionalsoreleasessmallamountsofthecarcinogenicradioactiveelementsuraniumandthoriumintotheatmosphere.sincecoalisalreadyusedtogenerate51%ofourelectricity,usingcoal togenerateadditionalelectricitytomeetall,orevenmost,ofour transportationneedswould result inhorrificamountsofatmosphericdestruction,nottomentiontheamountoftoxicfumesthatwouldfurtherpollutetheair.

asFigure3 shows, coal ishands-down themostpollution-intensivefossilfuel,emittingmoreCO2thanoilornaturalgas.Withsome900milliontonsoftheblackrockburnedintheU.s.forenergyeveryyear,therearerisksateverystepofthecoalproductionprocess:mining,preparation,transportation,andusageandcombustion.

Figure 3. Fossil Fuel CO2 Emission Levels, 2004

Source: U.S. Energy Information Administration

Forexample,accordingtotheearthPolicyInstitute,“Thelarg-estsourceofmercurypollutioniscoal-firedpowerplants.airbornemercuryemittedbythesefacilitiesisdepositedanywherefromwithinafewhundredkilometersofthesmokestackstoacrosscontinents,farfromitssource.”Forty-fivestateshavewarningadvisoriesagainstfish consumption because of high levels of mercury in the water.

Fossil Fuel Carbon Dioxide Emission Levels(Pounds per Billion British Thermal Units of Energy Input)

Coal 203,000

Oil 164,000

Natural Gas 117,000


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evensaltwaterfishsuchastunaandswordfishexceedthemercurylimitsdeemedsafebytheenvironmentalProtectionagency.

Burying CO2: What Goes Down, Must Come UpCoalhastwomajoradvantagesoverotherformsofenergy:it

isabundantintheU.s.,anditisthecheapestfueltoproduce.Theworldhasanestimatedtrilliontonsofmineablecoal,andaquarterofitisintheU.s.Thecostofdeliveredcoalforelectricalgenera-tionrangesfrom$1.00to$2.50permillionBritishThermalUnits(BTUs).Theseadvantagesarefaroutweighedbythedisadvantagesofburningcoal.Itreleases9billiontonsofCO2peryear,about70%ofwhichcomes frompowergeneration.Thisamounts toaboutathirdofglobalCO2emissions. Italso releasesmercuryandsulfurdioxide,causingmajorenvironmentaldamagetotrees,aquifers,theocean,andvariousanimalspecies.

ThecoalindustryisrallyingaroundanewtechnologycalledIntegrated gasification Combined Cycle (IgCC). a CombinedCycleplantusesatleasttwothermodynamicprocessestoincreaseefficiency. The plant makes synthetic gas (a mixture of carbonmonoxide and hydrogen) out of coal to fire its primary electricalgeneratorsandusesthewasteheattofuelsteamboilersthatdriveasecondsetofgenerators.Ontheplusside,thetechnology(whichisnowcommercialateightplantsaroundtheworld)doesanadmirablejobofreducingsulfur,mercury,nitrogenoxides,andflyash.

On other hand, IgCC does nothing to reduce CO2. It issuggestedthattheCO2fromIgCCplantscanbeisolated,condensed,andsunkinthegroundorusedtopressurizeoilfields.Itisawide-openinvitationtousemorecoal.Capitalcostsareimmense—morethan$1billionperplant.Whilethereisnogeneralagreementonthe IgCC premium over conventional pulverized coal plants, 10to30%isafrequentlycitedrange.Thistranslatesinto$1,400/kwhforIgCCplantconstruction.ThecostofretrofittingconventionalplantswithIgCCtechnologyisprohibitive,soitwouldbemany,manyyearsbefore itmadeevena slightdent in theworld’s foot-printofcoal-firedplants.Twocoal-basedIgCCplantsarecurrently

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operationalintheU.s.;ninemoreareclearedtobebuiltinthenextdecade.Toputthisincontext,theChinesewillbuildatleastthatnumberofdirtycoalplantsinthenextthreeorfourmonths.

Ironically,federalfoot-draggingaboutemissionsstandardsandtheutilityindustry’sowndoubtsarebrakingthepursuitofIgCC.Johnhofmeister,headofshellOil’sU.s.operations,believes,“Ifthe50stateshavetheirowngreenhousegasframework, itwillbechaotic . . . .”speakingat the sameOctober2006conference ashofmeister,

randy Zwirn, chief executive officer and president ofsiemens Power generation Inc., said the energy industryis awaiting clear U.s. greenhouse policies, noting that hiscompanyrecentlysurveyedU.s.utilitiesandfound“averyhighconsensus”thatCO2wouldberegulatedwithinthenext10years.

ButZwirnsaidanotherkeyissuewithIgCCwasthatutilities stillhavemajor concernsabout theavailabilityandlong-termreliabilityofthe[IgCC]technology.hesaid the industry view was partially colored by earlierIgCC plants that experienced startup and reliabilityproblems.6

given the indisputable health and environmental concernsthatsurroundconventionalcoalproduction,thefederalgovernmenthasmade researchanddevelopmentof“cleancoal”a toppriority,and IgCC plays only a part. In order to tap america’s vast coalreserves, President Bush in 2001 announced his $2 billion CleanCoalPowerInitiativeaspartoftheadvancedenergyInitiative.Tenprojectsselectedforgovernmentco-financingareinvariousstagesofdevelopment.Thewinnersofthesegrants,forthemostpart,areconspicuouslysilentaboutcarbondioxide.

ThecenterpieceofthisprogramistheFuturegensequestra-tionandhydrogenresearchInitiative.a$1billionalliancebetweenthedepartmentofenergy,coalproducers,andelectricalutilities,ithopestobuildby2012a275mWprototypeplantthatiscoal-firedbut almost “emission-free” insofar as smokestacks are concerned.


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Theplantwillpurportedlyusethemostmodernapproachesforthegenerationofelectricitywhileattemptingtocaptureandthenstorecarbondioxideingeologicalformations(knownas“carbonseques-tration”).Theplantwillalsoproducehydrogenandby-productsforusebyotherindustries.

Carbonsequestration,or“carboncaptureandstorage,”refersto the process of compressing hot flue exhaust until it liquefies,transporting it by pipeline or tanker, and storing it undergroundinnaturalgeologicalcavernsordeepintheoceanfloorbelowrockfoundations.

specific Futuregen optimistic goals include sequestering atleast90%ofCO2emissionsfromtheplantwiththefuturepoten-tialtocaptureandsequesternearly100%;provingtheeffectiveness,safety,andpermanenceofCO2sequestration;andestablishingstan-dardizedtechnologiesandprotocolsforCO2measuring,monitoring,andverification.Itwillalsovalidatetheengineering,economic,andenvironmentalviabilityofadvancedcoal-based,near-zeroemissiontechnologies that by 2020 hopefully will produce electricity withlessthana10%costincreasecomparedtonon-sequesteredsystemsandalsoproducehydrogenat$4.00permillionBTUs(wholesale),equivalentto$0.48/gallonofgasoline.7

Carbonsequestration isahighlycontroversial technology. ItrepresentsWashington’seffortstosatisfythecoallobbyandensurecoal’sfutureinagreenhousegas-filledworldinwhichreducingCO2emissions will become national and global priorities. Just as thenuclearindustryismarketingitselfasthe“solutiontoglobalwarm-ing,”thecoalindustryispitching“zero-emissionscoalpower.”

Wefindcarbonsequestrationtobeahighlyquestionableandriskypossibility.IfCO2wereeverreleasedfromtheearthyearslater,the results would be catastrophic. In the late 1990s, for example,several thousand people died of suffocation in east africa when avolcaniclakebelchedupnaturallyoccurringCO2.

Inorder for carbon tobe sequestrated, itmustbe separatedfromotheratmosphericgasesandcapturedinaconcentratedform.There are several different methods for capturing the CO2.Two

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AirAir

H2O

H2 - RichStream

CO2

H2 Product

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Deep SalineFormation

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Conversionto H2O

Gasifier

technologies receiving attention are chemical absorption and gasseparationmembranes.ChemicalabsorptionconsistsoftheremovalofsO2andNOX,sotheCO2canbeabsorbedusinganacid-basedneutralizedreaction.Thesecondmethod,showninFigure4,usestheinstallationofgasseparationmembranes:theCO2isdissolvedintothemembraneandthentransportedbyadiffusionprocess.

Proponentssuggestavarietyofgeologicandaqueouslocationsforstorage:salinereservoirs,rockcaverns,andcoalseamsandsaltdomesthatweareunabletomine.Theconcept is tocaptureandstore CO2 much the way natural gas is stored. a third option isoceanic sequestration,which requiresCO2 tobe injected into theoceanatdepthsof at least1,000meters,where it liquefies and issupposedtoremaininplace.Oneunresolvedissuehereisdetermin-inghowbottomsedimentwillreactwiththeCO2.ThevolumesofliquefiedCO2aresogiganticthatit is likelyitwillhaveaseriouseffectonaquifers.

Figure 4. Carbon Sequestration Process, Gas Separation Method

Source: U.S. Energy Information Administration


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anotheroptionisterrestrialCO2sequestration,orCO2“sinks”inwhichsoil,vegetation,agriculturallands,pastures,tundra,forests,andwetlandsincreasetheirabsorptionofthegas.ThisrequiresthemanipulationofecosystemstotrapandholdtheCO2.Itincludesavarietyofpossiblestoragemethods,includingcreationoffertilizers,plantingforests(becausetreesabsorbcarbondioxideforphotosynthe-sis),andstorageinsoilorbiomass.

OnelastpossibilityistheseparationofpureCO2forpossibleindustrial use. despite multiple options, a 2000 National CoalCouncilreportfoundthatadditionalresearchanddevelopmentwasstillnecessaryforCO2sequestrationtechnologies.

The economic viability of sequestration is also a majorconcern,asthiscarbonreductiontechnologymayincreasethecostof coal-generated electricity by 60%, undercutting the economiccompetitivenessofcoalversusnaturalgasandwind.“TheprocessofcapturingandsequesteringatonofCO2currentlycostsapproxi-mately$150perton.mostsourcesestimatethatinstallingcurrenttechnologiesatpowerplantswouldsignificantlyincreasethecostofcoal-generatedelectricityfrom2.5to4.0centsperkilowatt-hour.Forcarbonsequestrationtobeeconomicallyviable,thecostwouldhavetobe reducedtoabout$10-$20per ton.”8TheactivecommercialuseofCCs(carboncaptureandsequestration)still remainsquitedistantinthefuture.“asystem-levelanalysisisneededofCCsasacarbonmitigationstrategyintheenergysector—onethatconsiderstheinteractingeffectsofsunkcapitalinvestment,theeconomicsofplantdispatch,andcoal-to-gasfuel-switching.”9

Thenumberofhigh-qualitysitesneededforsequestrationisstaggering.Foreverytonofanthraciteburned,3.7tonsofCO2isgenerated. If all of theCO2generatedwere tobe sequestrated inliquidform, itwouldrequireavolumeof12 cubicmilesofunder-groundspaceperday!10

Today, carbon sequestration remains a future technology,not a current option. The facts are that carbon sequestration isunsafe, economically uncompetitive, environmentally unfriendly,and hazardous to our health and water supply. Just like burying

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high-levelnuclearwasteordeep-wellinjectionofuntreatedhumanwaste, pumping CO2 underground into empty wells only defersthepollutionproblem to futuregenerations.even if the technol-ogyworked,itwouldhavetobeappliedretroactivelytotheworld’shuge installedbaseofpulverizedcoalpowerplants,anevenmoreexpensiveproposition.

Writing about sequestration in West Virginia’s Herald-Dis-patch, abrahamT. mwaura and J. scott straight conclude, “Thismethodisbeingtoutedasapotentialsourceofrawmaterialtotakeusintothehydrogenera.Butaslongasthesourceofthehydrogenisfromfossilfuels,wearestillstuckinanarchaicenergyera,insteadoflookingtothefuturewithaneyeontruealternativeenergysources.”Thebiggestproblemsassociatedwithfossilfuelslieintheextractionprocess,where“toxicsludgeponds,worsenedflooding,andblastingdamage to property are ignored by these new technologies.”Theeffectscannotbecurbedbysequestration,andtheuntestedeffectsofmassiveamountsofburiedCO2couldalsocomebacktobiteus.11

Coalisindeedaplentifulenergyresource,butitisnotaviablelong-term option that will reduce greenhouse gas emissions.ThePrometheus Plan requires solutions based on proven, availabletechnologies that canmakeamajor contributionwithin10years.Undertherosiestscenarios,so-called“clean”coalplantswon’tmakeacontributionuntilmanydecadesintothefuture.

Webelievethatoncecarbonsequesteringforanypurpose islegallypermitted,itwillbecomeverydifficulttostop.Itwillbecomethebasisforbuildingmorecoal-firedplants.

Tar Sands: A “Saudi Arabia” Next Door?Tarsands,oroilsands,areamixtureofclay,water,sand,and

bitumen,aheavyblackoil,andhavetheviscousconsistencyofthicksludge.

Inordertoextracttheoilfromtarsands(alsoknownasheavyoil),theymustbeminedandheatedandtheresiduediluted.Onlythen can the refiners transform the newly released bitumen intoa useable, albeit heavily sulfur-laden, form of petroleum.12 It’s a


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dirty, environmentally disastrous business. For every barrel of oilproducedfromCanadiantarsands,170poundsofgreenhousegasesarereleasedintotheatmosphere.

Thelargestaccumulationsoftarsandsintheworldarefoundin theathabascadeposit inalberta,Canada,and in theOrinocoProvince of Venezuela. although there are meaningful qualita-tivedifferencesbetweenthetwodeposits,eachholdsasignificantportionoftheworld’stotaltarsandresources.

Canada’salbertaProvinceholdstheworld’slargestreservesoftarsands.Withbetween1.7trillionand2.5trillionbarrels,theseoilsandreservesareconsideredsecondonlytotheconventionalpetro-leumreservesofsaudiarabia(seeFigure5).Ofthistotal,however,onlyslightlymorethan300billionbarrels,or12-18%,areestimatedtoberecoverable.TheU.s.importsabout9%ofitsdailycrudeoilsupplyfromCanada,oranaverageofabout1.5millionbarrelsperday(“mBd”),includingoilfromtarsands.13ComparedtoVenezu-elan deposits, extraction from Canadian tar sands is much moredifficult because the bitumen-bearing sludge is generally colder,moreviscous,andflowsmuchmoreslowly.

CanadiandepositsarehighlyattractivetotheU.s.becausetheyoffera large,securesupplylocatedjustacrosstheborder. Indeed,Canada currently supplies the largest fractionofU.s.oil imports.In 2006, Canadian tar sands operators were expected to producemorethan1.1millionbarrelsofsyntheticoilperday,forthefirsttime surpassing Canada’s conventional oil production, which wasforecastedat1mBdforthesameperiod.ThiswouldboostCanadatofourthplaceintermsoftheworld’slargestoilproducers.alberta

“Coal power is America’s biggest source of heat-trapping emissions, yet new investments in coal-fired power plants will keep us burning this fossil fuel for years to come. We must not allow new coal plants to sabotage the fight against global warming.”

— BarBara Freese and JeFF deyette, WorldWatch InstItute, 2006

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isexpectedtoproduce2.3mBdby2010,3.4mBdby2015,and5mBdby2035.14 This increase inalberta oil sandproductionwouldmeanadecreaseinU.s.oilimportsfromOPeC,whichisinitselfundeniablyagoodthing.

Figure 5. Crude Oil including Oil Sands Reserves by Country

Source: Oil & Gas Journal, 2004

Whilemanyexpertsandpoliticiansarefocusedexclusivelyonamerica’sneed to end itsdependencyonmiddleeasternoil,wemustpauseandconsiderthevastenvironmentalproblemsthatcomewithheavyoil.

Producing Gasoline and Other Products from Tar Sands

Oncestrip-minedorotherwisepumpedup,tarsandsandtheiroil are separated most often by steam that is created by burningnaturalgas.Theprocessrequireslargeamountsofbothenergyandwater.Whileonlyamarginalamountofthatwatercanberecycled,severalbarrelsofwaterarerequiredtoprocessjustonebarrelofoil.In areas where water already is a scarce resource, this can pose aseriousproblem.

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Canada’s Oil Sands Reserves Ranks 2nd Only to Saudi Arabia


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Oncethiswaterisusedtoproducesyntheticoilfromtarsands,thebiggestby-productbyvolumeistoxicwaterstoredinlakes.Thiscreates a major risk of contaminating local water supplies, whichwouldfurtherstressanalreadytapped-outresource.

strip-mining operations are used most frequently to extractoilsands.Productionpracticestypicallyincludeclear-cuttingthou-sands of acres of trees and digging out 200-foot-deep pits.Thisdisturbanceaffectsnotonlylargepopulationsofwildlife,butalsoairandwaterqualityforlocalcommunities.

Oneofthebiggestenvironmentalconcernsassociatedwithtarsandsisglobalwarmingandgreenhousegasemissions.recoveringandprocessingthisheavycrudereleasesuptothreetimesasmuchgreenhousegasasproducingconventionalcrude.15Canadaalreadyishaving troublemeeting itspledge tocutCO2emissions largelybecauseofitsheavy-oilproduction.Inaddition,oilsandsalsoreleasesignificantlymoresulfurdioxideandparticulatematter,whichistheleadingcauseofacidrainandwhichleadstoahigherincidenceofhumanrespiratoryproblems.

dr. John O’Connor, a Fort mcmurray, alberta, medi-cal examiner, is in negotiations with health Canada to startan epidemiological investigation that would track the publichealth in communities neighboring these alberta tar sandsoperations.The small community of about 1,200 people thatbordersthetarsandsoperationshasexperiencedahighnumberofillnesses,includingleukemia,lymphomas,lupus,andautoim-munediseases.O’Connorsaysheisdiagnosingunusuallyhigh

“Oil sands production is already one of the most environmentally destructive processes on this Earth. Imagine combining strip mining and a steelworks plant, and add in a ‘tailings’ lake the size of 20 city blocks. Now, add a nice big coal-fired electricity plant to the mix. Sounds great doesn’t it?”

— MurkyVIeW.coM, canadIan enVIronMental Blog

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numbersof immunedisorders affecting the thyroid aswell aslessseriousones,suchasrheumatoidarthritisandskinrashes.healsotreatedfivepeopleinthecommunitywhodiedrecentlyfroma rare, almostalways fatal cancer that shouldoccuronlyonce inevery100,000people.This increase in illness isakeyindicator of the emerging public health concerns associatedwithoilsandsproduction.16

Oil Shale: Expensive, Environmentally Disastrous, and Far in the Future

Oilshalegenerallyreferstoanysedimentaryrockthatcontainskerogen, a tarry material even more challenging than bitumen toconverttooil.Thekerogenisgenerallyseparatedfromtherockbyahightemperatureprocesscalledretorting. Thiscanbedonebyheatingthepulverizedrockinaretort,orin situbydrillingholesintheshaleanddrivingtheoiloutbyhotsteaminjectionand/oriniti-atingaflamefronttodrivethekerogentothesurface.Thekerogenthenmustbeprocessedasinarefinerytoaddhydrogenandremovecontaminantssuchassulfurandnitrogen.

WhiletheU.s.maynothavethelargestdeposits,itstillholdsarespectableamountofoilshale—about60-80billionbarrels,mostofwhich are concentrated inUtah (19-32billionbarrels),alaska(19billionbarrels),alabama(6billionbarrels),California(5billionbarrels),andTexas(5billionbarrels).Oilshaleisnotbyanymeasurethewaytoimprovetheenvironmentbecauseitissignificantlydirtierthanconventionaloilandfarmoreexpensivetoproduce.

astudyentitled,“effectsofOilshaleWastedisposalonsoilandWaterQuality,”publishedinthejournalChemical Speciation and Bioavailability,discoveredthatthesoilandgroundwatersurround-ingtheoilshaletailings(whatisleftoverfromdrilledorminedoilshalereserves)becameacidifiedandwerefilledwithheavymetalsandsulfates,includingcarcinogenicsubstances.18

Those who strongly support oil shale development basetheirargumentsprimarilyonthenation’sneedtoenddependencyonimportsofforeignfuels.however,critics lookat lifecycleand


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environmentalimpactsaswell.ByronKingsumsupthebigpictureproblemswithoilshaleasfollows:

afteryouretorttherocktoderivethekerogen(notoil), the heating process has desiccated the shale. sadtosay, thevolumeofdesiccatedshale thatyouhave todisposeofisnowgreaterthanthatoftheholefromwhichyoudugandminedit inthefirstplace.anytakers fortrainloadsofdried,dusty,gunkyshaleresidue,rifewithlow levels of heavy metal residue and other toxic, butnowchemicallyactivatedcrap?Well,itmakesforenoughcrapthatwhenitrains,thetoxicstuffwillleachoutandcontaminate all of the water supplies to which gravitycan reach,which isessentiallyallof ‘em.Yeah, right. Isurewantthatstuffblowin’inmywind.addupallofthecapital investment to build the retorting mechanisms,costofenergyrequired,costofwater,costsoftransport,costsofenvironmentalcompliance,costsofrefining,andyouhavesomerelativelycostlyendproduct.19

When the price of oil spikes, interest in oil shale revives.Investorslostbillionsonanattempttomovemountains(literally)inwesternColoradointhe1980s.Whileafewshaleexperimentsarenowoperating around theworld, scalable technology remainsmanydecadesdistant.eveniftheenvironmentalproblemscouldbeovercome,oilshalewouldnotmakeameaningfulcontributionforatleast30years.Weneedsolutionsmuchsoonerthanthat.

“Oil shale, coal gasification or coal liquefaction—the last of the fossil-fuel sources as the world’s supplies of oil and natural gas are depleted—require 20 to 50 times more water to produce an equivalent amount of energy, compared to oil and gas.”

— keVIn hall, energy reporter, noVeMBer 200517

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Natural Gas: Everyone’s Transitional FuelNaturalgasaccountsforaboutone-fifthoftotalU.s.energy

production,most ofwhich is used to generate electricity.a largeportionofthenationalreadyreliesongas,butitmaybepossibletoexpandtheuseofgas,therebydecreasingrelianceonforeignoilandreducingenergycosts.however, in2005,theU.s.hadonlyabout204trillioncubicfeetofdomesticnaturalgasreserves—atits2005annualconsumptionrateofabout22trillioncubicfeet,enoughtolastonlyaboutnineyears.

someexpertsclaimtherearesufficientreservesofnaturalgastofueltheworldfordecades.estimatesofworldnaturalgasreservesvarywidely,from3,000to9,000trillioncubicfeet.giveninterna-tionalconcernsoverdecliningenergyresources,itissurprisingthateven the oil and gas companies do not have precise estimates ofthesereserves.accordingtogeologists,themostcommonlyagreedworldreserveestimateis6,040trillioncubicfeet,whichrepresentsaround50years’worthofnaturalgasatcurrentglobalconsumptionlevels.

accordingtoOil and Gas Journaldataon“WorldNaturalgasreservesbyCountry asof January1,2005,”10 countries control78.9% of these reserves.The top five natural gas nations—saudiarabia,Iran,Venezuela,Nigeria,andIraq—aregeopoliticalhotspotswheresuppliesaresubjecttorisksanddisruptions(seeChapter3).Completelyrelyingonnaturalgastoreplaceoil,therefore,doesnotsignificantlyenhanceU.s.energysecurityorindependence.

Furthermore, we must keep world supply trends in mind.From1977to1987,9,000newgasfieldswereuncoveredthrough-outtheworld.By1997,only2,500additionalfieldshadbeenfound.In the gulf of mexico, the number of drilling rigs increased by40%betweenapril1996andapril2000,butproductionremainedflatbecausethenewlydiscoveredfieldstendedtobesmaller.also,becauseofnew technology,natural gasfields tend tobedepletedfasterthanjustfiveyearsago,withthenewerwellsaveraginga56%depletionrateduringthefirstproductionyear.


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LNG Is Highly ExplosiveTransportation of natural gas is an expensive and high-risk

process, especially for natural gas vehicles that run on liquefiednaturalgas(lNg).Currently,therearearoundfourmillionnatu-ral gas vehicles around the globe. although popular in Westerneurope, they aremost commonly found inargentina andBrazil.as of march 1, 2007, the U.s. department of energy calculatedthatthenationwideaveragepriceofnaturalgaswasstilllowerthanthenationwideaveragepriceofgasoline.atthattime,gasolinewassellingfor$2.30/gallon,andnaturalgaswaspricedat$1.94/gge(gallonofgasolineequivalent).20

lNgismadebyrefrigeratingnaturalgasto-260°Ftocondenseitintoaliquid.Thisiscalledliquefaction.Theprocessremovesmostof thewater vapor, butane, propane, andother trace gases that areusuallyincludedinordinarynaturalgas.TheresultinglNgisusuallymore than98%puremethane.WhencoldlNgcomes incontactwithwarmerair,itcreatesavisiblevaporcloudfromcondensedmois-tureintheair.asitcontinuestogetwarmer,thevaporcloudbecomeslighterthanairandrises.Whenthevapormixeswithair,itisflam-mableonlywhen themixture isbetween5%and15%naturalgas.Whenthemixtureislessthan5%naturalgas,itdoesn’tburn.Whenthemixtureismorethan15%naturalgas,thereisnotenoughoxygenforittoburn.

asa liquid,lNgisnotexplosive.lNgvaporwillexplodeonlyinanenclosedspacewithintheflammablerangeof5-15%.Ontheplusside,lNgisproducedbothworldwideanddomesticallyatarelativelylowcostandburnscleanerthandieselfuel.sincelNghasahigherstoragedensitythancompressednaturalgasforheavy-duty vehicle applications, it is a more viable alternative to dieselfuel.Inaddition,lNginheavy-dutynaturalgasenginesproducessignificantlyloweremissionlevelsthandiesel.

Thepossibilityofmajoraccidents isofgreatconcern.lNgundergoes a rapid transition to vapor, especially when spilled onwater.Whensuddenlydisbursedoverwater,thevolumeofthelNginstantlyexpandsbyafactorof600,resultinginaphysicalexplosion

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thatposesahazardforstructuresandpeopleclosetothesiteoftheincident.Theexplosionmaynotinitiallyinvolvecombustion,butasubsequent inferno is almost alwaysassuredafter contactwithanignitionsource.WhenlNgisspilledonwater,heatistransferredfromthewatertothelNg.Thisresultsinarapidtransformationofliquidtogas,releasingalargeamountofenergy.

Compressednaturalgascanalsobeusedfortransportation.Ithasbeenusedtofueltaxicabs,UPsdeliveryvans,postalvehicles,streetsweepers,andtransitandschoolbuses.NaturalgasisavailableoutsideofNorthamerica,butnotviapipelines.Itcanbeimportedto theU.s. in the formoflNg,but thismethodof transport ishighlycontroversial.

BecauselNgoccupiesonlyafraction(1/600)ofthevolumeof natural gas, it is transported more economically over longdistancesandcanbestoredinlargerquantities.Certainly,lNgisa price-competitive source of energy that could help meet futureeconomicneedsintheU.s.Todate,therearesixlNgterminalsintheU.s.—inKenai,arkansas;everett,massachusetts;CovePoint,maryland;elbaIsland,georgia;lakeCharles,louisiana;andPenu-elas,Puertorico.21Todate,nocatastrophicaccidentshaveoccurredattheseterminals.evenoperatingatfullcapacity,however,theyarecapableofimportingonly3%ofU.s.naturalgasconsumption.

Ifnaturalgasvehiclesareevertohaveamaterialeffectonthetransportationmarket,we’llneedtoestablishanationalnaturalgasfuelinfrastructurevirtuallyfromscratch.Becausenaturalgasvehiclescannotbepurchasedorfueledasconvenientlyasgasoline-poweredcars,thewaytoboostdemandwouldbetosignificantlyreducecosts.Thebestway to reducecostswouldbe to increasedemand. It’saCatch-22thatcanberesolvedonlybygettingthefederal,state,andlocal governments involved by offering short-term incentives tobuyersofnaturalgasvehiclesandbysupportingU.s.departmentofenergyeffortstopromote“cleancities”programsbasedongovern-mentalpurchaseanduseofnaturalgasvehicles.22

many advocates of alternative energy see natural gas as ameans to shift from oil to hydrogen and renewable energy.They


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seeitastheonlyviabletransitionfuelthatcanbuytimeastheU.s.switchesfromdependencyonforeigncrudetocheap,renewable,andcleanenergysources,especiallyinthetransportationsector.givenachoicebetweennaturalgasandoil,liquefiednaturalgas,obviously,wouldbethepreferredliquidfuel.

asidefromtherisksofaccidents,however,themajorproblemswithnaturalgasarethattheU.s.hasonlylimiteddomesticreserves,muchof the foreign reserves are located inhigh-riskareasof theworld,andnaturalgaspricestendtomovewithoilprices,promisingfuturehighpricesfornaturalgas.

anymovetomakenaturalgasthe“newgasoline”would,there-fore, be a colossal mistake and would simply replace one foreignaddictionwithanother.

Insum,noneofthebigfourotherfossilfuels—coal,naturalgas,tarsands,oroilshale—offersaviablelong-term,economicallysound,orenvironmentallyfriendlysolutionforgeneratingelectric-ityinwaysthatsimultaneouslydecreaseU.s.dependencyonforeignenergyresources andreducegreenhousegasemissions.Fortunately,the penultimate resource for cheap, efficient, non-polluting, andcommerciallyavailableelectricalpowergenerationisliterally“blow-inginthewind.”TheadvantagesofwindpoweralongwithothersustainablesourcesofenergyarediscussedinChapter11.

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Notes and ReferencesChapter 6: Coal, Natural Gas, Tar Sands

1 “World energy assessment: energy and the Challenge of sustainability,2000,” (http://www.undp.org/energy/activities/wea/drafts-frame.html) andPaulmobbs,Energy Beyond Oil(london:matador,2005).

2 milken Institute, “global Conference, an examination of Problems andsolutionstoClimateChange:aConversationwithstevenChu,”april26,2006, http://www.milkeninstitute.org/events/gcprogram.taf?function=detail&eventid=gC06&evId=794 and http://www.eia.doe.gov/oiaf/ieo/pdf/coal.pdf.

3 http://www.spe.org/spe/jsp/basic/0,,1104_1008218_1109511,00.html andhtpp://www.eia.doe.gov/oiaf/ieo/pdf/nat_gas.pdf.

4 JamesT.Bartiset al.,Oil Shale Development in the United States: Prospects and Policy Issues,randCorporation,2005.

5 OilandgasJournal,vol.99,december24,2001,127.

6 georgelobsenz,“reliability,CostrecoveryIssuesslowIgCCrollout,”The Energy Daily,October6,2006.

7 FutureGen—asequestrationandhydrogenresearchInitiative,U.s.depart-mentofenergy,OfficeofFossilenergy,February2003.

8 “TheNorthwest’srushtocoal,Pt.2:‘Clean’coalcontroversy,”NWenergyCoalition,august31,2005.

9 Timothy Johnson and david Keith, “electricity from Fossil Fuels withoutCO2emissions:assessingtheCostsofCarbondioxideCaptureandseques-tration inU.s.electricitymarkets,”Journal of the Air & Waste Management Association51(October2001):1452-5.

10 Tim Flannery, The Weather Makers: How Man is Changing the Climate and What It Means for Life on Earth (grove/atlantic2006).

11 abrahamT.mwauraandJ.scottstraight, “‘Clean’Coaldoesn’tdomuchtoProtectenvironment,”http://www.herald-dispatch.com/2005/march/18/OPlist3.htm.

12 “Oilshale/Tarsandsguide,”http://ostseis.anl.gov/guide/index.cfm.


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13 “Petro-Canada reviewing Oil sands strategy,” may 2, 2003, http://www.fromthewilderness.com/cgi/bin/masterPFP.cgi?doc=http://www.fromthewil-derness.com/free/ww3/052703_tar_sands.html.

14 Kevin g. hall, Knight ridder Newspapers, “U.s. has plans for Canada oilsands,” Nov. 27, 2005, http://www.azcentral.com/arizonarepublic/news/articles/1127oilsands27.html.

15 Joeduarte,“CanadianTarsands:Thegood,theBad,andtheUgly,”march282006,http://www.rigzone.com/news/article.asp?a_id=30703.

16 CBCNews,“highillnessratenearoilsandsworrisome,saysalbertahealthoffi-cial,”march10,2006,http://www.cbc.ca/story/canada/national/2006/03/10/oilsands-chipewyan060310.html.

17 CornellUniversity,Science News,January1997,http://www.news.cornell.edu/releases/Jan97/water.hrs.html.

18 “effectsofOilshaleWastedisposalonsoilandWaterQuality,”http://www.scilet.com/Papers/csb/csb14/CsB_ding.pdf.

19 dan denning, daily reckoning, “Oil shale reserves: stinkyWater, sweetOil,”2005,http://www.dailyreckoning.com/rpt/Oilshale.html.

20 http://www.eere.energy.gov/afdc/resources/pricereport/price_report.html.

21 http://www.ferc.gov/industries/lng/indus-act/terminals/exist-term.asp.

22 http://www.ngvc.org.

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