The Oil Drum: Local

When my talk to the Royal Society of Chemists was first arranged this summer, oil cost over $130 per barrel, and we wondered where the price would be in October. Since then much has happened. The credit expansion bubble was pricked in part by inflation stemming from high energy prices, and the global banking system is teetering on the brink of collapse, reprieved only by the spread of social ownership throughout the OECD.

Day three of the ASPO-USA Conference in Sacramento was focused on where we go from here with fuels other than oil. It began with a session on coal and natural gas reserves and the potential of biofuels. There was considerable information on each of the slides that each of he presenters provided, and so I encourage you to go and look at the presentations which should be up soon on the ASPO site.

David Hughes had the first slot, and talked of the issues that are raised by coal consumption. David began by contrasting a quote by Emerson that

Coal is a portable climate. It carries the heat of the tropics to Labrador and the polar circle; and it is the means of transporting itself whithersoever it is wanted. Watt and Stephenson whispered in the ear of mankind their secret, that a half-ounce of coal will draw two tons a mile, and coal carries coal, by rail and by boat, to make Canada as warm as Calcutta, and with its comfort brings its industrial power.

with the more recent pronouncements of James Hansen that coal is the enemy of the human race.

Capturing carbon dioxide from coal (and gas) fired electricity plants. Subsequently transporting the carbon dioxide from the plant and storing it underground in (abandoned) oil/gas fields, in other geological formations or on the ocean floor. It seems like an excellent solution for continued fossil fuel use in the coming decades.

The European Union wants to have 12 large CO2 capture and storage demonstration projects in place by 2015, requiring an investment of 5 billion euro. The expectation is that this development will lead to significant cost reductions, making the technology affordable by 2020. There are however two large drawbacks, it will keep costing large sums of money and the process is quite energy intensive. In this post the economic viability of the process is scrutinized. In a previous post the impact of the extra energy cost of the process on coal depletion was quantified.

Capturing carbon dioxide from coal (and gas) fired electricity plants. Subsequently transporting the carbon dioxide from the plant and storing it underground in (abandoned) oil/gas fields, in other geological formations or on the ocean floor. It seems like an excellent solution for continued fossil fuel use in the coming decades.

The European Union wants to have 12 large CO2 capture and storage demonstration projects in place by 2015, requiring an investment of 5 billion euro. The expectation is that this development will cause significant cost reductions, making the technology affordable by 2020. There are however two large drawbacks, it will keep costing large sums of money and the process is quite energy intensive. In this post the impact of the extra energy cost of the process on coal depletion is quantified, the economics will follow in a later article.