Aternative Fuels: Moving Us Transport off OilAternative Fuels: Moving Us Transport off OilAternative Fuels: Moving US Transport off OilDavid E. LaneU85-5550 The Politics of OilGraduate Program in International AffairsWashington University in St. LouisSpring Semester 2006IntroductionA single day’s news reflects the broader ramifications of U.S. dependence on fossil fuels. Securitization of oil and energy supplies is a major focus of U.S. foreign policy in the Middle East and around the globe, but these efforts have a far greater cost than just what we see at the pump. Military operations in Iraq alone have cost taxpayers hundreds of billions of dollars but rather than making Americans safer, the occupation has become a catalyst for anti-American sentiments in the Middle East and beyond. For reasons such as these, it would seem prudent to begin a national transition towards decreased petroleum dependence.
The military, petrochemical arena (plastics, pesticides), and the aviation industry are all sectors where petroleum needs are vital and for which no large scale viable alternative exists. Electricity generation from oil, once largely based upon petroleum, is now down to an almost negligible 2% nationwide (EIA 2004). These sectors do not comprise the largest area of demand for oil even when combined. It is personal transportation alone that accounts for over 60% of all petroleum consumed in the U.S. (Klare 2004, 193). Addressing vehicle fuel efficiency is therefore the key to making a difference. Other alternatives such as public transport, walking, and bicycling, are useful but cannot compare to the impact that vastly improved automobile efficiency would make. With nearly 200 million vehicles, the U.S. is the largest consumer of oil in the world. The size of the country with its many population centers still relatively conducive to a mix of personal automobiles and public transportation precludes the likelihood of citizens abandoning cars en masse in favor of public transport. Energy costs are increasing, but most of the country is unlikely to face the same set of constraints a citizen of Tokyo or Paris faces that make ownership of a car unappealing. Personal automobiles, with their promise of unlimited mobility seem deeply ingrained into the American psyche.
In analyzing any potential new fuel source, it is essential to know how much energy is returned on energy invested, its “EROEI”. Another way of expressing this is to ask whether a given alternative energy is economical to acquire, refine, transport, store and use. This includes looking at all points in the chain, from its source (fossil fuel or plant-based) to its refinement and transportation processes. Once all these factors are considered, then based on comparative analysis, the question of whether it is viable and economical can be answered.
Natural GasCompressed natural gas (CNG) and liquid natural gas (LNG) vehicles represent a relatively mature technology. They’ve been used successfully for years on inner city bus lines where clean exhaust is paramount. This is a highly appropriate implementation for CNG and LNG, but there are several issues which may diminish the likelihood of natural gas gaining widespread acceptance for personal vehicles.
Public filling stations are currently few and far between; 135 in California, and 600 nationwide. Coupled with the fact that the range of natural gas cars is about 40% less than an equivalent internal combustion car, many people are reluctant to risk driving them and getting caught stranded.
Recently, natural gas home refueling units have been introduced which may broaden the market appeal of natural gas somewhat, but there are drawbacks. The home units which tap into the household gas lines are expensive ($5000) and require a full eight hours to refuel.
Perhaps most significantly though, reserves of natural gas in the U.S. are not sizable enough to contend for large scale replacement of petrol fuel. The US has just 3% of the world’s known natural gas reserves (NGSA 2004). Natural gas currently plays an essential role in home use and in electric power generation. In the power source mix for California’s electrical grid, natural gas accounts for 48%, so demands on this resource are already quite high (PG&E 2004). Depending on natural gas for widespread use in personal automobiles would represent a continued reliance on a finite fossil fuel largely imported from other nations. Most of the issues that plague oil dependency are replicable with natural
The Natural Gas Alliance does not agree with this view, and in no way believes the current state of supply of natural gas by OPEC is an obstacle to its expansion. Gas and the natural gas industry as well as the oil companies that produce oil and gas are all interested in a cheap, reliable, and socially acceptable (NGSA 2004). A policy of increasing natural gas supply is needed for the sustainability of our dependence on petroleum products, an economy that continues to be heavily dependent on oil.
The Natural Gas Alliance, and others like it
On the other hand, at least two recent major energy organizations expressed concern that the recent “Global Fracking Crisis” and the “Hedge Kingdom” movement on the issue of fracking, where the industry has already entered into an agreement with the US state to capture and use natural gas, will further undermine the credibility of the movement and bring about an increase in the need for domestic energy sources. Since the oil companies are the most important consumers of natural gas, the Natural Gas Alliance was not convinced of the fact that natural gas is not a viable alternative to petroleum sources, which are widely distributed in the energy markets (PME, 2000; RCP, 2004).
The Natural Gas Alliance argued that, when it comes to refining, the U.S. shale gas industry already had to deal with an increased demand for crude oil following the release of the Keystone XL Pipeline, which could potentially have a dramatic negative effect on domestic demand (PME, 2005, pp. 1233-1234). We agree completely with their position on energy sources on one key issue however: the impact such a pipeline on the supply of natural gas by US oil companies.
The Natural Gas Alliance’s view of US shale gas supplies and potential future opportunities
The Natural Gas Alliance’s position on unconventional oil is not that there are certain ways to get around US natural gas shortages. One of the first such unconventional oil discoveries, for example, was the production of the Texas Intermediate-North West (THW) crude oil, which is widely used by drillers. This may bring in new supplies of natural gas, but as with the crude oil itself, the production may be limited in ways that are not at the point where shale gas is needed by the system, e.g., by higher prices over the long run. Natural gas production in the US is high and rising at a good rate, which further pushes up oil prices as well. The alternative is to use energy sources other than oil in producing natural gas and then go greenwashing the industry in order to minimize its potential adverse impact on the national economy.
In order to overcome this current situation, the Natural Gas Alliance wants to do something a little bit different: they are not going to limit the supply at all by restricting the