Agenda

 Oil
 Production Technology
 Reserves & Demand
 Economics
 Coal
 Reserves – World & India
 Economics
 Pollution control Policies
 Clean coal Technologies
 Natural Gas
 Reserves & Production
 Economics
 Shale Oil
 Reserves
 Case study – Stuart Project, Australia
 Tar Sands

 Methane Hydrate

 Conclusion
Workhorses Of Our Energy Sector
• Fossil Fuels are energy-rich substances
that have formed from long-buried plants
and microorganisms.

• The gasoline that fuels our cars, the coal

that powers electrical plants, the natural
gas that heats our homes are all fossil
fuels.
 They are indispensable…
• High energy density
– 73,890 BTU/ lb of Natural Gas
– 17,400,000 BTU/ton of Lignite Coal
– 138,000 BTU/gal of Fuel oil
• Renewable sources vary with
– Geographical location
– Season
– Time of day
• Relative inexpensiveness.
• Needed to provide back up.
• The entire transportation infrastructure is built
around fossil fuels.
It is next to impossible to alter these to suit any
other resources.
 Basic Technology of Oil Extraction
• The crude oil is separated in a distillation column
into various fractions of multifarious uses.
 Current Production
Technologies
• Development and use of (3D) seismic waves.
• Innovative drilling and production structures.
• Carbon dioxide reinjection
Deep offshore Production:
• FPSO (Floating Production Storage and
Offloading) and TLP (Tension Leg Platform)
systems.
• New materials for flexibles.
• Horizontal and multibranch wells.
• The current depth is around 1800 m, the next
target depth is 3000 m.
 Micro hole drilling
• Aimed at slashing costs and reducing
environmental impacts of drilling.
• Tap potentially billions of barrels of
bypassed oil at shallow depths.
• The Technique:
– Ultra small-diameter holes.
– Adapts coiled tubing drilling techniques.
– Drill motor and bit are deployed on the end of
tubing coiled around a spool on a trailer.
– Trailer pulled by pickup truck.
 Oil Reserves & Production
• Currently, the world has proven reserves of a little
over 1,100 million barrels.
• Production of oil is around 37 million tonnes per
annum.
India reserves and production(1999)
Proved recoverable reserves (crude 645
oil and NGL’s, million tonnes)

Production (crude oil and NGL’s, 36.7

million tonnes, 1999)
R/P ratio (years) 16.7
 Role of OPEC

• Middle East countries hold 65% of oil and 34%

of the gas reserves.
• 14 of the major oil producing countries constitute
the Organization of the petroleum exporting
corporation (OPEC)
• OPEC has proven reserves of 891,116 million
barrels of crude oil, representing 78.3% of the
world reserves, and produces around 40% of the
world’s crude.
Increasing Demands And Consequences

• Oil is extracted at the rate of 75 million

barrels per day, which means the current
reserves are predicted to last only for
another 35-40 years.
• The cost of oil has already
surged past $70 per barrel.
 COAL
The energy bridge to the future!!
• First fossil fuel to be discovered.
• Pushed to background because of its
environmental effects.
• The two major uses for coal – steel production and
electricity.
• Accounts for 23% of the global primary energy
demand, 38% of world electricity production and
70% of world steel production.
 Reserves
The proved recoverable world reserves at the end
of 1991

Type of coal Reserves (million

tonnes)
Bituminous 519 062
Sub-bituminous 276 301
Lignite 189 090

India has proven coal reserves of 84,396 million

tonnes
 Reserves…
• The present reserves represent a life span
of hundreds of years at the current rate of
production and consumption
• The average open market sales price of
coal in the USA is around $30/ton
 Reverting to COAL
• For coal to reestablish itself as the primary
fuel, it will need to reduce its environmental
footprint.
Comparison of Air Pollution from the Combustion of Fossil Fuels
(kilograms of emission per TJ of energy consumed)
Natural gas Oil Coal
Nitrogen 43 142 359
oxides
Sulphur di 0.3 430 731
oxide
Particulates 2 36 1333
• Major pollutants are volatile organic compounds
(VOC), Nitrogen oxides (NOX), CO, SO2,
particulate matter, mercury and lead.

• Electric utility power plants 72%, 35%, and 33%

of total emissions of SO2, CO2, and NOx.

• Average mercury content of coal is 7.4 pounds

per trillion Btu of energy input to the coal-fired
electricity generator.
Kyoto Protocol
• Reduce "CO2- equivalent" gas emissions.
• Actions that take carbon out of the atmosphere.
• Countries to limit greenhouse gas emissions,
relative to the levels in 1990.
• USA hasn’t signed it as yet but instead agreed to
reduce emissions from 1990 levels by 7 percent
during the period 2008 to 2012.

Clear Skies Initiative

• Sulfur dioxide emissions to be cut by 73%
• Nitrogen oxide emissions to be reduced by 67%
• Mercury emissions be cut by 69%
Combined Cycle
• Combines gas turbine
and steam turbine.
• Exhaust energy from
gas section used in
steam system.
• High thermal
efficiency.
• Small plants
combined.
• High mobility.
 Gasification
• Breaks down coal into basic chemical
constituents.
• Coal is exposed to hot steam and controlled
amounts of air or oxygen under high
temperature and pressures.
• Carbon molecules in coal break apart, setting off
chemical reactions that produce syn gas and
other gaseous compounds.
Integrated gasification combined-cycle (IGCC)
• Syn gas is burned in a combustion turbine which
drives an electric generator.
• The exhaust gases are used to heat steam.
 Knocking the NOx out of coal
• NOx emissions reduced at low-combustion temperatures
and by use of low-nitrogen fuels, low- NOx burners and
fluidized-bed combustion.
• Particulate matter removed by fabric filters or electrostatic
precipitator.
• Membranes for separating gases.
• Selective removal of hydrogen from syngas.
• Flue gas desulfurisation units, selective catalytic control
systems and evaporative cooling towers.
• Sulfur extracted from coal converted into commercial-grade
sulfuric acid or elemental sulfur.
• Mercury controls - sorbents and oxidizing agents.
Transport Reactor
 Carbon Sequestration
It is a family of methods for capturing and permanently isolating gases that could
contribute to global climate change.

CARBON CAPTURE
• Pre-combustion capture
• Post-combustion capture
• Oxyfuel technologies. 

CARBON DIOXIDE SEQUESTRATION

• Industrial use of CO2 in plastics and other chemical industries
• Inorganic sequestration as carbonates
• Biological conversion to fuel
• Geological sequestration, in salt domes, or coal beds
• Injection into active oil wells
• Injection into exhausted gas or oil wells
• Injection into aquifers
• Ocean disposal
 SO2 emissions (thousand tonnes of SO2)
Fuel Type 1990 2003 % change
Coal 2710 727 -73
Other solid 68 19 -72
fuels
Fuel Oil 605 66 -89
Other 193 82 -57
petroleum
products
Gaseous 10 11 +6
fuels
Other 125 73 -41
emissions
Total 3711 979 -74
 US Initiatives
FutureGen - Tomorrow's Pollution-Free Power
Plant

• $1 billion dollar project.

• Employs coal gasification integrated with combined
cycle electricity generation and the sequestration of
carbon dioxide emissions.
• Will require 10 years to complete.
• In the operational phase, it will generate revenue
streams from the sales of electricity, hydrogen and
carbon dioxide.
 Vision 21 The "Ultimate" Power Plant
Concept
• Multiple products - electricity in combination with liquid
fuels and chemicals or hydrogen or industrial process
heat.
• Not restricted to a single fuel type.
• Coupled with carbon sequestration technologies.
• Technology modules interconnected to produce selected
products.
• Very High efficiencies with near-zero emissions.
• Uses low-polluting processes.
 Fuel Cells - for near zero emissions coal-based systems
• Based on electrochemical reaction of hydrogen
and oxygen.
• Integrated gasification fuel cell hybrids have the
potential to achieve up to 60 percent efficiency and
near-zero emissions.
• Hydrogen separated from syn gas got from
gasification.
• Exhaust gases can be used to drive gas turbines.
• Small 3-10 kW scale fuel cell systems combined to
give larger systems for use in hybrid power
systems.
 Natural Gas
• The world had around 5500 trillion cubic meters
at the end of 2003.
 Some Statistics…
Current reserves represent a life span of
60 years.
Indian Scenario
Proved recoverable reserves 647
(billion cubic metres)
Production 19.5
(net billion cubic metres,1999)
R/P ratio (years) 26.5
Why Natural Gas?
– Cleaner fuel, has low carbon/hydrogen ratio hence less
carbon dioxide emission.
– Has a distinct hydrogen-rich molecular structure, hence
supply hydrogen for future technologies like fuel cells.
• 3D seismic technologies now used to locate
fractures in the earth.
• Combined cycle technology used.
• Acid reinjection employed for better efficiency.
 Economics
The price is based on
calorific value of gas
 local demand
 supply
cost of alternate liquid fuels

Cost of natural gas has increased over

200% in the past 2 decades.
 Bright Prospects…
Shale Oil
• Is a 40-50 million-year-old sedimentary
rock.
• Contains a solid hydrocarbon, kerogen
which is "fossilised algae".
• Time, pressure and temperature have
transformed these sediments into a
hydrocarbon-bearing rock.
• Contains no liquid hydrocarbons.
• The heating of the oil shale, forces the
decomposition of kerogen and hydrocarbons
are released as a vapour which on cooling
becomes liquid oil and gas.
 Reserves
Recovery Proved Average Estimated
Country method recoverable yield of oil additional
reserves million kg oil/ reserves million
tonnes (oil) tonne tonnes (oil)
USA surface 60 000 – 57 62000
80 000
Australia In-situ 1725 53 35260
• The Estonia and Tapa deposits are situated
in the west of the Baltic Basin
• Share of oil shale in the Estonian
national primary energy balance is 52-
54%.
• Oil shale output had reached 7 million
tonnes by 1955
• Mainly used as a power station/chemical
plant fuel and in the production of
cement.
• The opening of more thermal plants boosted
production and by 1980 (the year of
maximum output) the figure had risen to
31.35 million tonnes.
 Stuart Project - Australia
• Incorporates the Alberta-Taciuk Processor
(ATP) retort technology.
• Three staged plant aimed at producing
85 000 b/d by 2009.
• Higher emissions of greenhouse gases than
conventional oil resources.
• Plans are on to reduce these emissions by
– Creating a ‘carbon sink’ through
planting trees to create permanent
forests. This would ‘capture’ or
sequester carbon dioxide
– Building a bio-ethanol plant to operate
alongside the Stuart Shale Oil plant,
and be based on woody biomass sourced
from local plantations and sugar
wastes.
 Tar Sands
• Deposits of bitumen - viscous oil that must
be rigorously treated in order to convert it
into an upgraded crude oil
• Of the oil sands found in Alberta, 10-12%
is bitumen, 80-85 % is mineral matter, and
4-6% is water.
• Reserves estimated at 280-300 billion
barrels.
 Processing Technique
• Must be mined or recovered in situ.
• Recovery processes include extraction
and separation systems to remove the
bitumen from the sand and water.
• Cyclic steam stimulation (CSS) and steam
assisted gravity drainage (SAGD) currently
used.
• Technique not advanced enough to make
it economical.
 Methane Hydrate…the gas
resource of the future
• It is a compound of water and methane
• Forms under pressure at cold
temperatures.
• Potential significant source of natural gas.
• Large volumes of hydrate based natural
gas found on Alaska's North Slope.
• Natural gas potential of methane hydrate
approach 400 million trillion cubic feet.
 Fossil Fuels…
the fuels of the past & the fuels for the future
• The volumes of exploitable oil and gas are closely
correlated to technological advances, technical
costs.
• Any improvement in the recovery rate - even if by
only one point - allows the industry to tap
substantial additional reserves.
• Coal with its plentiful reserves and inexpensiveness
offers tremendous potential if we carry out
environment friendly plans.
• With the various technological advancements, and
alternate sources for oil and gas, the end of fossil
fuels is still centuries away.
“ The path to the future is neither as rosy as
some people hope nor as thorny as others
fear, but depends on how effectively we pick
out the weeds and nurture the bush as we
walk ”
Thank you!

Presentation by
Aruna T S (CH03B008)
Sumegha M (CH03B021)
Yagna Deepika O (CH03B046)
Janani Kannan (CH03B049)