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Global Energy Overview

Why Attempts At Reducing Global Energy


Consumption Have Not Been Successful

This presentation is unlike any you have ever


seen on global energy
It will give you a basic and essential
understanding of global energy production,
consumption and its ever increasing demand
It makes it clear why our attempts at reducing
global energy use have not, so far, been
successful
Everything is in consistent energy units, the
BTU, allowing you to easily understand the
overall global energy situation without the
usual mix of confusing energy terms
GlobalQBTU.com
(See author’s intro comments, slide 28) Information@globalqbtu.com

This presentation was taken from The Global Energy Handbook, available through
Amazon.com, Barnes & Noble and other sources
Global Energy Overview
Energy from a Global Perspective
This presentation is unlike any you have ever seen on energy. We take off
the rose-colored glasses, we look at energy from a pragmatic and global
perspective to give you a basic and essential understanding of:

 Where energy comes from and how it is used

 Why the demand for energy is always increasing

 Why conservation and efficiency are not solving the problem

When reading about energy do you ask


―but what does this really mean?‖
Then you should find this presentation to be useful

This presentation will change the way you


think about the global energy situation

Global Energy Overview 2


Are You Confused About Energy?
No wonder; the way energy information is presented has us all
confused, it might as well be written in a foreign language

 32 Billion barrels of oil yearly!


 1.7 Billion gallons of gasoline daily!
 67 EJoules of electricity yearly!
 6.5 Billion short tons of coal yearly!
 370 Gigawatts of nuclear power!
 10 Gigawatts of solar power!
 12,600 MTOEs of global energy!
 etc., etc. ……!
A chart used to explain energy (DoE /EIA/Sandia)

Why can’t energy be explained in


simple, consistent terms? It can . . .
Global Energy Overview 3
The BTU Approach to Global Energy
 The BTU is a relatively small amount of energy; a can
of soda contains about 150 Calories or 600 BTU

 Global energy is measured in quadrillion BTU or QBTU*

 The U.S. Energy Information Agency (EIA) uses QBTU

 The only thing you will need to keep in mind is:

Global energy production is approaching


500 QBTU per year

Millions > Billions > Trillions > Quadrillions*


106 > 109 > 1012 > 1015

The BTU approach allows you to see the whole


global energy picture, not just pieces of it

Global Energy Overview 4


Global Energy Production in QBTU
Here is the energy data Global Prime Source Energy QBTU per Year
given earlier, but now in 250
87% Fossil
consistent QBTU terms
200
 Oil – 188 QBTU
500 QBTU
 Gasoline – 76 QBTU 150

QBTU
 Electricity – 193 QBTU
100
 Coal – 130 QBTU
1.6% Alternatives
 Nuclear – 28 QBTU 50
5.5% ea.
 Solar – < 0.1 QBTU
0

Here are the prime


sources of global energy

Yes, you already know that fossil fuels dominate global


energy, but did you realize how little the alternatives provide?

Global Energy Overview 5


How Fast is Global Energy Use Increasing?
Figure 2-6: World Prime Source Energy Growth (from EIA Fig 10)
1000

900

800 Where we seem


to be going
700

600
QBTU

500 Where we 2.0 % Yearly


have been Growth
400
500470QBTU
QBTU
300

200
220 QBTU
100

0
1960 1970 1980 1990 2000 2010 2020 2030 2040

The answer: very fast, about twice


as fast as our human population

Global Energy Overview 6


Energy Production and End-Use Consumption
Energy production and end-use consumption are not the
same thing; these often get confused in media reporting
500 Q
Used
Directly Gasoline, diesel,
307 Q
fuel oil, natural gas, 371 Q Total End-Use
coal, biofuels, etc. Consumption
Q
B
307 Q Direct-Use
T
Consumption
U Lost
Energy*
To Electricity
Generation 129 Q
193 Q
Consumed
Electricity
Electricity 64 Q
64 Q Consumption

Total Energy Electricity End–Use


Production Generation Consumption

End-use energy consumption is only 74%


of total global energy production
* Energy conversion, reserves, transmission losses
Global Energy Overview 7
The Significance of Electricity Losses

For every kilowatt-hour of electricity used, three


kilowatt-hours of energy are required to produce it!

129 Q
Lost
Q
B Energy Conversion,
T To Electricity
Reserve and
U Transmission
Generation 193 Q Losses

End-Use
64 Q
Delivered Consumption
Electricity

Consider this next time you look at your electricity


bill or read something about electric cars

Global Energy Overview 8


How Global Energy Is Used
500 QBTU per Year Total

246 Q
Although much emphasis is placed on reducing
home and auto energy, most global energy is used
by the industrial, commercial and transport sectors

Q
B
T
U 93 Q
62 Q
58 Q
41 Q

Industrial Residential Autos Commercial Transport

Industrial, commercial and transport use about 70% of all


global energy; residential and personal autos use only 30%
Global Energy Overview 9
Residential Energy
500 Q
Households are the main focus of all of those ―how to
save energy‖ tips we see daily; but how much energy
do households actually use?

Q Residential Energy
B  55 QBTU Electricity
T 93 QBTU Total
U  25 QBTU Natural Gas
 13 QBTU Other Heating
93 Q
32 Q 26 Q 13 Q 9Q 6Q 7Q

All Global Residential Home Appliances Water Air Clothes Home


Energy Sector Heating Plus* Heating Condition Dryer Lighting

Households use only 11% of global energy production


for electricity and only 8% for heating fuel
* kitchen appliances, electronics, indoor and outdoor tools, yard
equipment and anything else that plugs-in
Global Energy Overview 10
Electricity Flow-Down
Home lighting is about 12% of residential electricity,
500 Q but how much is this in terms of global energy?

To answer this we must turn the telescope


around and look at entire flow-down of
Q global energy, not just at home lighting
B
T
U 193 Q

55 Q
7Q

All Global Electricity Residential Residential


Energy Generation Electricity Lighting

Residential lighting accounts for only


1.4% of all global energy production
surprised? 11
Global Energy Overview
U.S Overall Energy Consumption
In millions of BTU (MBTU) per year

What you don’t see directly:


Typical family’s share of all
energy used in the U.S.
Everything else:
Consumer goods and
services
What you see directly: Government
Utilities and gasoline bills Education
Health
Food
Clothing
Entertainment
Travel
etc.

We consume three to four times more energy than we


think, most of it for consumer goods and services
Global Energy Overview 12
Electricity Rate History
How much have electricity rates increased, relative
to inflation, over the past three decades?

Figure 5-7: Electricity Rates - Inflation Adjusted


0.18

0.16

0.14
2
0.12
0
Dollar per Kwt hr

2008 Adjusted
2010
0.10 1 Dollars
0.08 0
0.06
Then Year
0.04 Dollars

0.02

0.00
1970 1975 1980 1985 1990 1995 2000 2005 2010
energy data tables>inflat

They haven’t; electricity rates have generally


been coming down since 1980
surprised?
Global Energy Overview 13
Petroleum Energy Flow-Down
Yes, we use a lot of gasoline, but the real
500 Q
question is; how much global energy is
437 Q actually used by motor vehicles*?

To answer this we must turn the telescope


around and look at the entire global energy
Q
flow-down, not just at gasoline use alone
B
T
U 188 Q

97 Q
76 Q
62 Q

12%

All Energy All Fossil Oil Transport Gasoline Motor Vehicles


* cars and light trucks

Motor vehicles use only 12% of all


global energy production
surprised again?
Global Energy Overview 14
Gasoline Cost: Inflation Adjusted
The cost of gasoline has increased drastically over the past
several years, but how does this compare with historical costs?

2010 Adjusted Dollars

The cost of gasoline is now back to the


―Energy Crises‖ peak of the early 1980s
Global Energy Overview 15
Energy Storage: Batteries vs. Gasoline
We hear a lot about advanced technology batteries,
but how much have batteries really improved?

Figure 6-3b: Energy Content for Battery Types Compared to Gasoline

2.50E+04

GAS
2.00E+04
Think about this the next
time you read something
1.50E+04 about electric vehicles
BTU per Lb

1.00E+04

5.00E+03
BATTERY

0.00E+00
Gasoline Lithium-ion Lithiun-ion Ni Metal Lead
advanced typical Hydride Acid
ev battery chain>auto

The specific energy of even our most advanced


battery is still far below that of gasoline
Global Energy Overview 16
Solar and Wind Energy?
What can solar and wind energy do for us?

Yes, costs are coming down for solar and wind, but
 Solar and wind can only produce electricity
 They are only part-time workers
 There is no viable way (yet) for mass storing their energy

Electricity generation requires about 40% of global energy


production
Assuming (optimistically) that solar and wind combined work at
least 40% of the time, then by simple math;

40% x 40% equals 16% of our global energy needs

Because of these inherent limitations, solar and


wind can only be supplemental energy sources
at least until massive storage
capability becomes a reality
Global Energy Overview 17
Biofuels?
What can biofuels realistically do for us?

Costs are coming down, but


 Growing biofuels requires large amounts of farmland
which otherwise could be used to grow food

 Relatively large amounts of energy are required for production


(60% of the energy in ethanol is fossil fuel based*)
Cellulosic plant sources grown on marginal land and low-energy
production techniques (termites, algae, bacteria, etc.) to produce
biofuels remain a future possibility, but until then . . .

Biofuels can only be a supplemental


source of global energy
* Official USDA output/input production ratio of 1.67
(disputed by many as being too high)
Global Energy Overview 18
Energy Savings Initiatives: Looking Back
Since the early 1970’s great strides have been made in
conservation, efficiency and public awareness of energy

Auto mpg has doubled 720 QBTU


More efficient appliances 2030
Building codes revised
Clean Air Act initiated 500 QBTU
Recycling becomes routine 2010
Earth Day & Earth Summit
Drive less, car pool
Lower our thermostats
Use fluorescent bulbs
Get energy-eff. windows
Buy a fuel-efficient car
220 QBTU Use a clothes line etc.
1970

We are now using energy 2 to 3 more efficiently, but


consumption continues on its relentless rise
Global Energy Overview 19
Energy Demand Keeps Growing Because . . .

 Nearly two billion people still do not have electricity

 Several billion others would like to own an automobile

 Billions more would like to have bigger, better homes

 Everyone would like to become big-time consumers like us

Can we blame them?

Yes, the worlds population is increasing, but the demand for


energy from those of us already here is increasing even faster

“Energy does not hold still while we try to fix it”

Global Energy Overview 20


Personal Solutions Are Not Working
Most energy use is considered necessary and useful,
at least by those using it
Do you know of anyone who thinks they waste energy?
Most energy savings initiatives focus on our cars and homes, i.e.
personal solutions
But most energy is consumed in the Industrial and Commercial Sectors
(for the goods and services we buy)

Personal energy savings, although helping, are not solving the


global energy problem
Conservation and improved efficiency have not
translated into reduced energy consumption

Global energy demand is increasing at over 2% yearly


despite all of our emphasis on ―Personal Savings‖

Global Energy Overview 21


Some What-If Examples
from the Global Energy Handbook

What if every household in the world


switched from incandescent bulbs to
fluorescent light bulbs?

Global energy consumption would be


reduced by 3.5 QBTU or 0.7%

What if every family in the world reduced


their household electricity use by 10%?

Global energy consumption would be


reduced by 5.5 QBTU or 1.1%

With the demand for global energy increasing at 2%


yearly, savings like these are quickly washed away
Global Energy Overview 22
Some What-If Examples
from the Global Energy Handbook
What if average auto fuel-efficiency went
from today’s 22 mpg to 44 mpg by 2030
Unfortunately, global energy consumption would
not be reduced, only slowed down slightly

 Today there are over 800 million


cars in the world
If mileage stayed 720 Q
 It will take about 20 years for the at 22 mpg avg.
Q 680 Q
world fleet to reach 44 mpg avg. B
T If mileage rose
 By then (2030) there will be nearly U
to 44 mpg avg.
two billion cars in the world 500 Q
 The other uses of energy (non-auto)
will continue to grow, regardless 2010 2020 2030

Looking at gasoline alone does not give


the full global energy savings picture
Global Energy Overview 23
Near-Term vs. Long-Term Solutions

The global energy perspective given here is for the near-term;


the next 30 years or so when diminishing fossil-fuel supplies
combine with the predicted dire effects of greenhouse emissions

In discussions on energy many will say ―not to worry‖;


everything will be run using renewable energy sources —
solar and wind with mass storage capability; biofuels grown
on arid land, platforms in space beaming down energy and
limitless nuclear fusion energy.
Do not deny the possibility of these, just point that they are
far-term solutions, hopefully for our grand children or their
grand children, they are not near-term solutions

In most discussions on global energy the first casualty


is the distinction between near and far-term solutions

Global Energy Overview 24


Energy Consumption vs. Consumer Spending
We are constantly bombarded with pleas to save energy:
drive less, turn down the heater, shut off the computer, use
fluorescent bulbs, install energy-efficient appliances

At the same time we are also bombarded to consume


more: designer clothes, the latest high-tech gadgets, fast
foods, new and better cars
Energy and spending are treated as
two separate things in the media:
 Energy consumption is bad
 Consumer spending is good

Unfortunately, energy consumption and consumer


spending are two sides of the same coin
a least in the way our global
economy is currently structured
Global Energy Overview 25
Winning Battles, but Losing the War
Yes, we need to continue with ―personal solutions‖ for energy reduction,
but we must realize that these are not going to win the energy war

 The magnitude and gravity of the problem goes well beyond personal
solutions, conservation and improved efficiency
 Emphasis on these lulls us into a false sense of security (we think we’re
saving the world when we turn down the heater or buy a fuel-efficient car)
 Currently the media focuses on solar and wind technology developments,
but more emphasis needs to be placed on the mass storage of energy
 The real challenge is not generating energy, but storing it to be used where
and when needed, as we now do with fossil fuels

If there is an Inconvenient Truth it is that everything we


have been doing to reduce global energy consumption,
unfortunately, is not solving the problem

Global Energy Overview 26


What Do You Think?
 You now should have a better understanding of global energy

 You should see why conservation and improved efficiency


have not been able to reduce the demand for energy

 You should see why the solution goes far beyond the
commercial and political slogans we hear daily

If you like the way global energy is


presented here go to
gloalqbtu.com
To contact the author with
questions or comments go to
information@golbalqbtu.com
And freely pass this on to anyone else that may be interested
This presentation was taken from The Global Energy Handbook, available through
Amazon.com, Barnes & Noble, Robertson Publishing and other sources

Global Energy Overview 27


Global Energy Overview
The information in this presentation was taken from my book, The Global
Energy Handbook. The initial purpose of the book was to compile global energy
information using a consistent set of energy units. Those of you who have tried
to find energy information on the Internet know the problem — barrels of oil per
year, gallons of gasoline daily, megawatts of power, MTOEs of energy, etc. The
BTU is used in the book as the common denominator for all global energy data.
Using consistent energy units allows one to see the overall global energy
picture, not just pieces of it, as usually given in the media and technical reports.

The second purpose was to provide the reader with the means to interpret
the confusing array of information found daily in the media on energy
conservation, efficiency and the alternative (or renewable) energy sources. Not
that the media information is necessarily wrong, but only that it is often
incomplete or can not be related to the global energy situation. For example, we
are told that florescent bulbs can reduce home lighting by about fifty-percent
over incandescent bulbs (which is true). But what part of home electricity is
home lighting? What part of all electricity is home electricity? What part of all
global energy goes to electricity? In other words, how much is home lighting in
terms of overall global energy production? The book (and this presentation)
uses the energy flow-down approach to give a clear and simple answer to this
and many other questions like it. In most cases the answers will surprise and
dismay you. J. R. Fortun
Global Energy Overview 28
GlobalQBTU.com
Information@globalqbtu.com

This presentation was taken from The Global Energy Handbook,


available through Amazon.com, Barnes & Noble, Robertson Publishing
and other sources
Global Energy Overview 29

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