Energy, Development, and Trade Economic growth and ...
Transcript of Energy, Development, and Trade Economic growth and ...
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Energy, Development, and Trade• Economic growth and development means a growth
in– Our need for resources and products
– The wastes generated
– Impacts on other life forms
• We will look at the economic geography of resources– And discuss trade and transportation issues related to
them
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Sources of Energy
• Our energy sources can be broadly classified into– Fossil fuels, and
– Non-fossil fuels
• What is a fossil fuel?– Formed from remains of prehistoric life
– Carbon-based compounds
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Energy Sources
• Interestingly enough, they also fall into two other classifications we can use– Non-renewable energy
– Renewable energy
• Because it takes thousands of years to convert dead life into fuel– Limit to the amount of fossil fuels
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Fossil Fuels
• Coal
• Petroleum– Why is it called “petroleum”?
• Natural gas
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Terminology
• Key terms are “reserves” and “resources”– Reserves are resources that are known and
available with current technologies and at current prices.
– Projected reserves are based on expected future prices and technologies
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Copyright © The McGraw-Hill Companies, Inc. Permission required for reproduction or display.
Classification of Natural Resources & Proved Reserves
General Classification of Resources by the U.S. Geological Survey.
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Minerals
• Naturally occurring inorganic substance in the earth’s crust– Key term here is “inorganic”
• Nonmetallic and metallic minerals– Any examples?
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Abundance, by Weight, of Elements in the Earth’s Crust
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Leading Producers of Selected Minerals
Data from World Resources Institute.
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U.S. Reliance on Foreign Supplies of MineralsFigure 11.25
Data from U.S. Geological Survey, U.S. Department of the Interior.
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World Trade & US Consumption
• Developing countries increasingly major mineral exporters– UNCTAD Data
• What are the implications of the chart on the right?
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Natural Gas
• Natural gas– As petroleum becomes more expensive, NG
becomes a viable alternative
– Russia has largest NG reserves
– Logistical problems with transporting NG
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Copyright © The McGraw-Hill Companies, Inc. Permission required for reproduction or display.
Proved Natural Gas Reserves, January 1, 2000
Data from The BP Amoco Statistical Review of World Energy, 2000.
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Worldwide Trade Flows of Natural Gas, 1999
Data from The BP Amoco Statistical Review of World Energy, 2000. Used with permission.
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Major Natural Gas Pipelines in the United States
U.S. Department of Energy.
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Coal• Typically consumed in the country where it
is mined• Deposits found all over the Earth• Unattractive because:
– Sulfur and CO2 emissions– Mining complicated– Logistics of transportation– Not adaptable for mobile units
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Major Coal Basins
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Coal
• Four types of coal– Peat
– Lignite
– Bituminous
– Anthracite
• Peat is mostly dirt, and anthracite has most energy packed into it
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Coal
• Coal-based power plants invariably located close to where coal is found– Transporting coal is a waste on a per Btu basis
• Btu stands for British Thermal Unit, which measures the energy needed to raise the temperature of one pound of water by one degree Fahrenheit
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Oil
• In 1993, the world's proved reserves were estimated to be just under a trillion barrels– about a 45-year supply of oil, based on current
rates of consumption.
– 95% possibility that the world's remaining oil resources could last 63 more years and a
– 5% chance that the world's resources will last another 95 years at recent rates of consumption.
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Oil Supply• Resource unevenly distributed• Few major suppliers
– Saudi Arabia has largest reserves
• World supply controlled by the OPEC– 40% of the world’s production– Group is able to ‘fix’ crude oil prices– Limiting supply automatically increases price
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Oil Demand
• Modern economies need oil– Consumption growth rate very high in the fast
growing less developed countries
• Developed countries consume most– The United States is the leading consumer of
petroleum• Almost a third of the world’s production
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Leading Producers and Consumers of Oil
(a), (b) Data from The BP Amoco Statistical Review of World Energy, 2000.
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Shares of Proved Oil Reserves, January 1, 2000
Data from The BP Amoco Statistical Review of World Energy, 2000.
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International Crude Oil Flow by Sea, 1999
The BP Amoco Statistical Review of World Energy, 2000. Used with permission.
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When Reserves are Exhausted ...
• What if the estimates are incorrect?– New exploration techniques are improving the
scope and success of offshore drilling operations, adding to the world's known resources.
– For example, in 1965, the petroleum industry's drilling capabilities limited offshore wells to waters less than 300 feet deep.
• Today, the industry drills for oil in waters as deep as 3,000 feet.
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Areas with Naturally Fertile Soils
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Commercial Marine Fisheries of the World
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Hydropower
• Water is a renewable source of energy– Unless we screw up things really bad :-(
• Not a major source of world’s energy– About one percent at a global level
• But may be significant in smaller regions– Pacific Northwest, for instance
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Go Nuke?
• Nuclear power was thought to be THE solution to the growing need for energy
• Growth of nuclear power in the 1960s and 1970s– Drive ended with the infamous Three Mile Island
incident
– A definite no-no after the Chernobyl disaster
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Go Nuke?
• Nuclear power is a major source of energy in many countries– In France, 80% of electricity from nuclear power
plants (57 of them)
– In 1973, 80% of the electricity was produced with fossil fuels
• http://www.insc.anl.gov/maps/world.html
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In the US • Nuclear power generation accounts for about
a fifth of the total electricity generated– 103 commercial plants– 67% of Vermont’s electricity
• In CA?– San Onofre– Diablo Canyon near SLO
• http://www.energy.ca.gov/maps/power_plant.html
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Electricity
• Is a secondary source of energy– We use coal, oil, gas, etc., to produce electricity
• Location criteria for energy production– Raw materials
– Market
– Loss in distribution
– Pollution concerns
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Electricity
• Raw material orientation– Coal is too bulky and expensive to transport over
long distances
– Hydropower plants located close to source of water
– How about gas and oil based?
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Electricity
• Pollution concerns– Many urban areas already highly polluted
– So, rarely are power generation plants located close to urban areas
• Longer distances over which electricity is transported– California even bought Canadian electricity!
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Electricity
• Distribution losses– Almost a tenth of the energy is lost in
transmission and distribution
– Advanced technology has made possible the use of HIGH voltage transmission lines that reduce losses
• Use it or lose it– Can’t save it for a rainy day :-(
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Transporting Raw Materials
• Coal– Railroads the major carrier
– Water transport• Mississippi river, Great Lakes basins
– Slurry pipeline• Coal plus water pumped along pipes
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Transporting Raw Materials• Oil
– Transported over miles• Remember, Saudi Arabia is the largest exporter
quite a few thousand miles away– Supertankers
– Once it gets to the US?• Road, railroad and pipelines
• Location of refineries?
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Transporting Raw Materials• Natural gas
– Not easy to transport as petroleum is
• Huge pipelines all over the world– Remember the James Bond movie, “The
World is not Enough”?
• Gas pipelines and the CA energy crisis– http://www.energy.ca.gov/naturalgas/western_state_pipelines.html
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Energy Use and Pollution
• Air pollution– Global and local
• Global dimension:– Damage to the ozone layer
• The ozone layer protects Earth from harmful UV rays
• Primary culprit here is CFC, whose use has ceased in the US
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Air Pollution
• The other global problem is global warming– Given that fossil fuels are carbon-based
– Burning these fuels increases CO2
– CO2 traps the heat from being emitted into space
– Results in increase of our planet’s temperature
• Loss of the rainforest cover compounds it– Plants absorb CO2 for photosynthesis