Monday, August 3, 2009

Oil

A diversion from the health crisis.
50% of U.S. energy requirements are met by oil, 25% by natural gas. $1600 is spent per person for food per year in this country. In 1970, the U.S. produced 10 million barrels of oil per day; we now produce 5 million. We now import 10 million barrels a day. That is the equivalent of 750 nuclear plants (we have 104 and they take 20 years to build), or 2000 times our current solar capacity. The net energy returned from oil investment (energy out/energy in) for oil was 100/1 in 1930. It was 25/1 in 1970. Now it is 3/1. The ratio for ethanol is 2%, for tar sand and shale 3/1, for wind and solar 25/1 (but the electricity is not liquid so it can't power mobile units.) There has not been a major oil field find since 1970. All the other finds are miles under the ocean which have huge "energy in" numbers. As countries expand, they will have greater oil demands and will compete with us for those barrels. There is also more domestic demand for domestic production so their exports drop. (Mexico, a top exporter of oil to the U.S. has seen domestic demand cut into their exports and may become a net importer in the next several years.)
http://freakonomics.blogs.nytimes.com/2009/07/30/it-wont-be-so-bad-a-qa-with-the-author-of-20-per-gallon/

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