Don't Count Oil Out

October 18, 2011

Carbon dioxide emissions will continue rising because hundreds of millions of people in places like Vietnam, Malaysia and South Korea are transitioning to a modern lifestyle.  Specifically, they are using more hydrocarbons -- coal, oil and natural gas.  And while many argue that we should quit using carbon-based fuels, the hard reality is that hydrocarbons are here to stay, says Robert Bryce, a senior fellow at the Manhattan Institute.

There are three reasons why hydrocarbons will continue to dominate the global energy mix for decades to come.

Cost.

  • A recent analysis by the Energy Information Administration (EIA) estimates that wind-generated electricity from onshore wind turbines costs $97 per megawatt-hour -- about 50 percent more than the same amount of electricity generated by natural gas.
  • Offshore wind is even more expensive, coming in at $243 per megawatt hour.
  • The least-expensive form of solar-generated electricity costs $210, or more than three times as much as the juice produced by burning natural gas.

The slow pace of energy transitions.

  • According to the EIA, in 1949, oil provided 37 percent of America's total energy needs.
  • In 2009, oil's share of U.S. primary energy still stood at 37 percent, despite uncounted billions of dollars spent on efforts to reduce our need for oil.

Scale.

  • Global energy use now totals about 241 million barrels of oil equivalent per day -- approximately equal to the total daily oil output of 29 Saudi Arabias.
  • And of those 29 Saudi Arabias, 25 -- about 210 million barrels of oil equivalent -- come from hydrocarbons.
  • Where and how will we find the energy equivalent of 25 Saudi Arabias and have it all be carbon-free?

Here's the bottom line: Renewables will remain niche players in the global energy mix for decades to come.  The past -- and the foreseeable future -- still belong to hydrocarbons.  And we can expect natural gas, the cleanest of the hydrocarbons, to garner a bigger share of the global energy pie in the near term and in the long term, says Bryce.

Source: Robert Bryce, "Don't Count Oil Out," Slate, October 14, 2011.

For text:

http://www.slate.com/articles/technology/future_tense/2011/10/oil_and_gas_won_t_be_replaced_by_alternative_energies_anytime_so.html

 

Browse more articles on Environment Issues