Energy: Why we need it? Where do we get it?

April 5, 2016

060801_trafficjams_hmed_1phmediumReading all the articles against fossil fuels and for renewable energy sources has been both fascinating and frustrating. As a retiree who worked in the petroleum sector both for industry and government regulators for over 35 years I have my opinions. Note that when I refer to “energy” I’m referring to all sources of energy not just oil and gas and coal (fossil fuels).

First I urge all people and organizations involved and interested in energy and its impact on the environment and the human race to get educated. Obtain your information from a variety of sources not just the media. Use government, industry and scientific sources to read up on the subject. Next look at where you and your family use energy and products derived from petroleum in your daily life. Ask intelligent questions and make sure you get answers. The entire realm is getting far too emotional and needs more realism injected.

Facts to remember,

  • Society requires energy to maintain our lifestyle.
  • Energy in all forms is needed to ensure the health, welfare and survival of the human species.
  • Energy is needed by humans to feed us, heat us, maintain health and allow us to transport goods, services and people from place to place.

The key question is how to obtain this energy in a way that is economical and yet environmentally friendly. Energy sources must also be sustainable to ensure society continues to progress.

Renewable sources of energy are important, but it will take time to develop them so they are reliable and cost efficient. Crude oil and natural gas will continue to be extremely important for a long time to come, however, much can be done and is being done to produce and utilize these in a more efficient and environmentally sustainable manner. Reducing the carbon footprint is good business for petroleum producers.

Revenues obtained from fossil fuel production will enable us to investigate and perfect the use of renewable energy sources such as solar, wind and geothermal. It will not be cheap at least initially to convert and move toward more dependence on other sources of energy. On the plus side this will be exciting and many economic opportunities will be available over the coming years related to the more intensive use of renewables.

One point that seems to escape activists is that government and industry are buying into the need to become more efficient and reduce that carbon footprint, but the other side of the coin involves the consumers of the energy. Individuals, industrial operations and governments who use the energy have to do their part to reduce energy use, and most of all to use energy more efficiently. Both sides must work together. Energy producers are in the business of supplying energy because there is a demand and a need for it.

Where we as a society need and use energy must be clearly identified and prioritized. Once this is done it will ensure we don’t leave ourselves short of what we need. It will allow us to concentrate our efforts to reduce the carbon footprint where it is most effective, obviously in those areas where it is consumed in the greatest amounts at the present time.

Myths that need to be dispelled,

  • Energy producers don’t care about the environment. False. Real people work for these companies and let me assure you they do care deeply. All human operations and activities impact safety and the environment in some way. The goal is to mitigate and minimize these impacts.
  • Energy producers don’t care about spills and other threats to the environment from their operations. False. They do care for several reasons, it is very expensive to have a spill and it is terrible to the operators reputation. Reputation is a huge financial asset to a good operator. Environmental protection and the safety of the companies employees, contractors and the general public is priority one.
  • Regulatory approvals for energy development such as pipelines are just rubber stamped by governments. False. In fact the opposite is true. Laws and regulations governing energy development in Canada are the toughest in the world. I know because I worked for both sides over my career. I was with the Regulator and educated and enforced these rules and regulations. I also worked for energy operators in obtaining these approvals and in ensuring compliance with regulatory requirements for all our operations. Regulatory, safety and environmental compliance is the number one priority for both energy operators and the regulators in this country.

So the next time your commute to work, drive your vehicle, buy groceries, purchase goods for you home or your leisure activities think about the energy required to produce those goods and services, and to transport them to the store near you.

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Natural gas is the answer, maybe.

May 11, 2012

Natural gas is the  answer, maybe.

Jet fuel and diesel fuel are usually derived from crude oil. With crude oil at all time highs the result is much higher prices at the pump. The biggest users of diesel fuel are truckers. Those semis we all see roaring down the roads and rely on for everyday products, groceries and consumer goods burn diesel.

A technology exists for converting natural gas to diesel and jet fuel. The “gas-to-liquids” plants have been built most recently in the Middle Eastern country of Qatar. These plants cost billions to build and require reliable access to relatively cheap supplies of natural gas feedstock over the long-term. Some of the major energy companies are now seriously considering building such plants in North America.

North America, especially Canada and the United States, have abundant and under-utilized reserves of natural gas with more coming on stream rapidly.

This technology might be able to assure us of a reliable supply of diesel and jet fuel but the prices may still be relatively high, at least over the short-term until the cost of constructing the plants is  paid out.

The big kicker for most consumers – this technology will not convert natural gas to gasoline. Consumers would still benefit but primarily by lowering the trucking industry’s costs.

We’ll just have to watch and see if someone takes the plunge and gets into this business.

Further reading:
“Turning natural gas into diesel fuel” by Steve Hargreaves @CNN Money May 9, 2012 (http://money.cnn.com)


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