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Ronald Reagan Presidential Library
Digital Library Collections
This is a PDF of a folder from our textual collections.
Collection: Reagan, Ronald: Gubernatorial Papers,
1966-74: Press Unit
Folder Title: [Energy] - Energy in California,
January 1973
Box: P35
To see more digitized collections visit:
https://reaganlibrary.gov/archives/digital-library
To see all Ronald Reagan Presidential Library inventories visit:
https://reaganlibrary.gov/document-collection
Contact a reference archivist at: [email protected]
Citation Guidelines: https://reaganlibrary.gov/citing
National Archives Catalogue: https://catalog.archives.gov/
ENERGY
IN CALIFORNIA
ITS SUPPLY DEMAND PROBLEMS
THE RESOURCES AGENCY STATE OF CALIFORNIA JANUARY 1973
STATE OF CALIFORNIA
RONALD REAGAN, Governor
THE RESOURCES AGENCY
N. B. LIVERMORE, JR., Secretary for Resources
DEPARTMENT OF CONSERVATION
RAY B. HUNTER, Director
THIS REPORT IS A STUDY OF CALIFORNIA'S ENERGY SITUATION.
COMMENTS SHOULD BE ADDRESSED TO THE DIVISION OF OIL AND
GAS, 2426 NINTH STREET, SACRAMENTO, CALIFORNIA 95874.
ENERGY IN CALIFORNIA
COORDINATED AND PREPARED BY THE
CALIFORNIA DIVISION OF OIL AND GAS
1973
STATE OF CALIFORNIA-RESOURCES AGENCY
RONALD REAGAN, Governor
DEPARTMENT OF CONSERVATION
DIVISION OF FORESTRY
DIVISION OF MINES AND GEOLOGY
DIVISION OF OIL AND GAS
DIVISION OF SOIL CONSERVATION
SACRAMENTO, CA 95814
1416 Ninth Street
Honorable N. B. Livermore, Jr.
Secretary, Resources Agency
1416 Ninth Street
Sacramento, California 95814
Dear Mr. Livermore:
Transmitted herewith is "Energy in California," a report
compiled by the Department of Conservation.
This report includes sections on demand for energy by the
various market categories, supplies of energy currently
available, and possible future supplies.
The project was coordinated by the Division of Oil and Gas,
Department of Conservation. The projections contained in
this report are based upon conditions affecting fuel supply
and demand which currently exist in California.
Sincerely,
They B Hunter Hunter, Director
CONSERVATION IS WISE USE-KEEP CALIFORNIA GREEN AND GOLDEN
FOREWORD
An energy crisis does exist. It exists at both the national level
and state level. It does not exist at a global level.
There is no shortage of energy resources in the Nation, but there
is a shortage of environmentally acceptable energy resources. And there
is a shortage of inexpensive energy resources.
This report will examine California's indigenous and exogenous energy
resources, demands for energy, and some of the problems associated with
supply and demand.
Here's what has been said recently about energy:
"California is faced with an energy shortage and insufficient
service by the mid-1970's if long-range and immediate planning
steps are not taken by the legislature, public agencies and
the electric utilities. "
-California Public Utilities
Commission, 1972
" almost any measure of well-being increases in close
proportion to the energy available per capita."
-Dr. Barry Commoner (1972)
Director, Center for the Biology
of Natural Systems, Washington
University, St. Louis, Mo.
"Many engineers in emission control areas have been concerned
because almost every solution has been energy-extravagant."
-Wayne Anderson (1972)
Chief of Propulsion System
Division of U. S. Army Tank
Command
iii
"
there are plentiful resources around the world but
economics and political forces keep them from being
available. We have the technology and tools to recover
more than we do but to recover the energy reserves we
call "potential" we'll need better economics and technology."
-B. Abbott Sparks, Jr. (1972)
Publisher "Petroleum Engineer"
"
(There is) equal disregard shown by all candidates for
office, news media, government officials, and just plain
citizens - for the welfare of the corporations which find,
transport, process and sell energy in the U. S."
-Professor A. J. Meyer (1972)
Economist, Harvard University
"
more and more people are becoming aware of the linkage
between pollution, the hasty and wasteful consumption of
limited resources, and the growth of energy consumption. The
reaction of industry
has been largely negative."
-Raymond Sherwin (1972)
President, Sierra Club
"
history would indicate that any major industrial power,
faced with exhaustion of its energy supplies and feeling
itself strong enough to win would, I think, risk war to keep
its economy functioning."
-Admiral Rickover (1972)
iv
TABLE OF CONTENTS
PAGE
Summary
ix
Energy in California
1
Market Demand
7
Transportation Market
9
Industrial Market
11
Electric Utilities Market
11
Residential Market
14
Commercial Market
14
The Five Markets Together
17
Primary Sources of Energy Together
17
Energy Supply
20
Oil
23
Gas
31
Hydropower
37
Geothermal energy
38
Coal
40
Nuclear fuel
43
Synthetic fuels
44
Basic Energy Supplies Together
50
New Supplies of Energy
52
Solar energy
52
Agricultural energy
52
Tidal energy
53
Hydrogen
54
Energy conversion systems
54
Conservation of Energy
57
Methods to increase efficiency
57
Restricting energy demand
58
V
PAGE
Postscript
59
Glossary
61
Bibliography
65
vi
LIST OF FIGURES
FIGURE
PAGE
1
ENERGY CONSUMPTION IN RELATION TO GROSS
NATIONAL PRODUCT
2
2
U. S. PORTION OF WORLD POPULATION AND
ENERGY CONSUMPTION
3
3
BASIC ENERGY MARKETS AND BASIC FUELS - 1970
5
4
CALIFORNIA POPULATION AND PROJECTED GROWTH
1970-1990
8
5
CALIFORNIA POPULATION - 20-34-AGE GROUP
VERSUS STATE TOTAL
8
6
TRANSPORTATION MARKET
10
7
INDUSTRIAL MARKET
12
8
ELECTRIC UTILITIES MARKET
13
9
RESIDENTIAL MARKET
15
10
COMMERCIAL MARKET
16
11
CALIFORNIA ENERGY CONSUMPTION AND DEMAND
BY MAJOR MARKETS - 1970-1985
18
12
EXPLORATORY DRILLING IN CALIFORNIA
24
13
GEOPHYSICAL ACTIVITY IN CALIFORNIA
24
14
HISTORICAL CHART SHOWING DISCOVERY OF
CALIFORNIA OIL RESERVES
25
15
MAP OF CALIFORNIA SHOWING PROVEN AND
POTENTIAL OIL AND GAS RESERVES BY AREA
27
16
CALIFORNIA DAILY OIL PRODUCTION - 1960-1985
30
17
CALIFORNIA DAILY GAS PRODUCTION - 1960-1985
33
18
HISTORICAL CHART SHOWING DISCOVERY OF
CALIFORNIA GAS RESERVES
34
19
FUTURE GEOTHERMAL POWER PRODUCTION IN
CALIFORNIA 1971-1985
39
20
MAP SHOWING COAL, BITUMINOUS ROCK, AND
URANIUM DEPOSITS IN CALIFORNIA
41
21
BASIC FUELS - 1970-1985
51
vii
LIST OF TABLES
TABLE
PAGE
1
CALIFORNIA ENERGY USE BY SOURCE
19
2
PROVEN RESERVES - OIL, GAS, AND COAL
21
3
CALIFORNIA OIL AND GAS RESERVES
22
4
CALIFORNIA OIL AND GAS INVENTORY
29
5
COAL RESERVES IN UNITED STATES AND CALIFORNIA
42
6
BITUMINOUS ROCK RESERVES IN CALIFORNIA
42
viii
SUMMARY
An energy crisis exists in California. It is not a physical shortage
of energy, but rather a shortage of cheap, environmentally acceptable energy.
In the time span of this report, 1970 to 1985, it is expected that total
energy consumption will double. During 1970 oil and gas supplied 89 percent
of our total energy requirements. By 1985 they will still supply 77 percent.
In 1970 California consumed oil at an average rate of 1.29 million 42-
gallon barrels a day while producing only 950,000 barrels a day. At currently
projected rates, by 1985 consumption will be 3 million barrels a day and our
production will fall to 500 thousand barrels a day, forcing the importing of
2.5 million barrels of oil a day. It will be necessary to construct 1.3
million barrels a day of additional refining capacity, or by way of example,
seven refineries the size of the giant Standard Oil Company of California
Richmond facility.
The most dramatic change that will occur in California's energy con-
sumption picture is the shortage of natural gas, and this will be severely felt
by 1975. Although other energy sources--hydro, nuclear, geothermal, and coal--
will play a role in satisfying our needs and filling the gas shortage void, oil
alone will still supply more than half of our total energy needs in 1985.
The energy markets in California, in order of descending magnitude, are:
Transportation, Industrial, Electric Utilities, Residential, and Commercial.
The Transportation Market demands 36 percent of the total energy consumed and
all of this is oil--nearly a million barrels a day. By 1985 Transportation
demand will grow to 1.77 million barrels a day with motor gasoline making up
58 percent of the market. The Electric Utilities Market will exhibit a major
change in energy mix during the period 1970-1985. Whereas natural gas pres-
ently supplies 51 percent of this market, by 1985 it will supply only 2
percent, a direct result of the natural gas shortage.
ix
California presently has about 5.2 billion barrels of proven oil reserves,
mostly onshore. In addition, there are 30 billion barrels of undiscovered oil
which is presumed to exist due to favorable geologic conditions, 24 billion of
which is in the offshore continental shelf area of California. With full-scale
development of our offshore resources, California could produce over 2 million
barrels a day from this area by 1985, double present state production. This,
coupled with strong incentives for onshore development, could make California
nearly independent of politically unstable foreign sources of oil which require
deficit spending.
California now imports about three-fourths of its natural gas. In the
face of declining domestic production, additional sources of gas will have to
be found, either from new discoveries or from foreign liquefied natural gas.
Small amounts of gas may be made available through gasification of coal before
1980. These alternative sources will cost at least three times the current
price of domestically-produced gas.
Nuclear-generated electricity is expected to furnish 13 percent of the
total energy demand by 1985. Hydropower and geothermal energy will make a
lesser impact. The more exotic forms of energy, such as solar, nuclear fusion,
tidal, and hydrogen, and equally exotic conversion systems, such as fuel cells
and magnetohydrodynamics, are not expected to have any measurable impact on
California's Energy Market by 1985.
Less than half the energy consumed in California does useful work. The
remainder, equivalent to 1.3 million barrels of oil a day, is lost, mostly in
the form of heat. The Transportation Market offers the greatest possibility
of additional efficiency.
Over the last decade, there has been inadequate concern for a continuing
sufficient supply of our prime energy resources--oil and gas. Other forms of
energy were likewise treated with indifference. Actions taken by federal,
X
state, and local governments have, in effect, reduced our energy supplies.
The offshore drilling moratorium on state lands, coastline petroleum sanc-
tuaries, emission standards that reduce engine efficiency, and other restrictive
measures, such as the recently passed Coastline Initiative (Proposition 20),
have a serious influence on the State's energy situation.
If projected trends hold, by 1985 California will have to import 8 times
as much oil as we currently do, build 35 times more nuclear generating capacity
than now available, import 5 times more electricity derived from coal than at
present, maintain the maximum level of production of other energy sources, and
construct the refineries, ports, and distribution systems necessary to make this
energy available.
xi
ENERGY IN CALIFORNIA
Energy is defined as the capacity for doing work. Nearly every
human activity in modern society requires energy. Without energy our
agricultural production would be at subsistence level, our transporta-
tion would be on foot, our communications would be by voice. There
would be no cooking, heating, cooling, metals, glass, or plastics.
Energy resources available over the next several decades can be
classed in two basic categories; stored solar energy in the form of
fossil fuels (oil, gas, coal), and terrestrial energy in the form of
falling water, geothermal resources, or nuclear reactions. Most of the
basic energy used today is in the form of heat from burning fossil fuels.
Much is converted into secondary forms, such as boiling water to make
steam to turn a turbine to generate electricity to run a motor.
A very close relationship exists between energy consumption and the
gross national product. The United States consumes, by far, more energy
per capita than any other nation in the world, and consistent with this,
has the highest gross national product of any nation in the world
(Figure 1). Another dramatic example of our energy use is depicted in
Figure 2 which shows that the United States has six percent of the world's
population and yet consumes 35 percent of the world's energy.
Scope
The purpose of this report is to compile an inventory of indigenous
and exogenous energy resources available to the State of California. The
report will also deal with the energy demand over the next 15 years and
will inventory actions and events which have affected California's energy
supply.
1
35
U.S.
30
25
COMMERCIAL ENERGY CONSUMPTION (barrels of oil per capita)
CANADA
20
U.K.
AUSTRALIA
2
15
GERMANY
SWEDEN
POLAND
DENMARK
U.S.S.R.
NORWAY
NETHERLANDS
HUNGARY
10
SOUTH AFRICA
FRANCE
IRELAND
NEW ZEALAND
FINLAND
JAPAN
5
ITALY
MEXICO
SPAIN
GREECE
PORTUGAL
INDIA
0
0
500
1000
1500
2000
2500
3000
FIGURE I
GROSS NATIONAL PRODUCT (dollars per capita)
AFTER COOK, 1971
adv re-adding 34 will
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CONSUMPTION
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FIGURE 2 U.S. PORTION OF WORLD POPULATION
New expensest 1820 AND ENERGY CONSUMPTION the
et WIS assignes Street disponsible 10%
is add estable by Fied #1
bengloss de DOB INW seis et agreement
300 to Specify $80 only) as José to states add at até 3 VII
Internal
Energy Measurement
The physicist measures energy in terms of joules or ergs, the
engineer in horsepower or watts, the biologist in calories. Studies
dealing with electrical generation usually express energy in terms of
kilowatt-hours (KWH). Numerous other units can be used to measure
energy, directly or indirectly, and each can be converted into one
another. (See Glossary for conversion factors.) For the purpose of
this study, the common denominator for all energy supply and demand
figures will be in terms of equivalent barrels of oil. Although many
studies on energy use the British thermal unit (Btu)1/ as a standard for
comparison, few people can conceive this unit in a meaningful way, but a
barrel of oil is a concrete, rather than abstract unit, and can be visu-
alized in a general way by most people. Another reason for using a
barrel of oil is to focus attention on our basic energy supply. Presently
89 percent of California's total energy requirements are furnished by
oil and natural gas; in 1985, oil and gas will supply 77 percent.
Basic Energy Markets
The various energy markets are numerous and in many cases overlap-
ping; however, for the purposes of this report, the energy markets will
be broken into broad categories and only the primary energy used will
be computed. In order of relative size, the five basic markets are:
Transportation, Industrial, Electric Utilities, Residential, and Com-
mercial (Figure 3).
Electric utilities are only processors of basic energy resources and
not final consumers. Basic energy sources are converted to electricity
which is sold to ultimate consumers. Therefore, the portions of electric
energy supplied to the various markets will not be assigned.
1/ A Btu is the amount of heat required to raise one pound of water one
degree Farenheit.
4
CALIFORNIA
BASIC ENERGY MARKETS 1970
COMMERCIAL
4%
and
INDUSTRIAL
25%
TRANSPORTATION
36%
Date
RESIDENTIAL
11%
ELECTRIC UTILITIES
24%
NUCLEAR 1%
BASIC FUELS 1970
GEOTHERMAL 0.3%
COAL 1%
HYDRO
9%
GAS
40%
OIL
49%
FIGURE 3
5
Basic Fuels
In the early years of California, the primary source of energy was
wood, animal power, and falling water. For a while, small supplies of
coal from the Coalinga and Nortonville areas augmented California's
early energy needs. Oil and gas came into general use by the turn of
the century and rapidly rose in importance until now oil and gas supply
essentially all the energy used in California (Figure 3).
Assumptions
Certain assumptions are made in all supply and demand studies.
Those that will govern the forecasts of this report are:
1. There will be no major global conflict or natural disaster.
2. Population growth rate in California will be less than two percent
per year through 1985.
3. Government policies will control inflation near its present rate
of increase.
4. There will be a continued desire on the part of all Californians,
particularly those coming to the age of establishing households, to
share in the prosperity of our energy-demanding economic system.
5. The private enterprise system will continue to be the dominant
institution of our economic system.
6. There will be increased governmental controls on business activity,
particularly in the field of environmental protection.
6
MARKET DEMAND
The demand for energy is governed by one factor - PEOPLE. Satiating
the needs and desires of our population is the basic force motivating our
economy. Since modern time there has been an uninterrupted growth of
population, not only in the Nation but particularly in California.
California's growth has been dramatic, and consequently our growth in
energy demands has also been dramatic.
During the forecast period 1970-1985, it is estimated that the State's
population will increase 30 percent, from 19.7 million to 25.6 million,
(Figure 4). However, at current rate of growth, our energy demand will in-
crease 100 percent, from 2.6 million equivalent barrels of oil per day to
5.2 million barrels.
A principal reason for the energy demand increase, which is more than
three times the growth rate of the population, is the growth of the 20-34-
age bracket. This age group is the largest consumer of goods and services,
and commensurately, energy. Whereas this group now comprises 27 percent
of the population, in 1985 they will comprise 34 percent. Over the next 10
years this group will increase at twice the rate of the population as a
whole (Figure 5).
Another reason for the growth of California's energy demand is the
continual increase in energy use per capita. Our ever-increasing standard
of living goes hand in hand with energy consumption. In 1970, we used 48
equivalent barrels of oil per year per person; in 1985, we will use 74
equivalent barrels per year.
In all demand predictions there are varying degrees of uncertainty
for the component segments, but there is a fairly good overall agreement
on aggregate demand. A study which compared demand forecasts (Battelle
1/ California Department of Finance population projections.
7
CALIFORNIA POPULATION AND PROJECTED GROWTH
30
20
MILLIONS
10
1955
60
65
70
75
80
1985
FIGURE 4
CALIFORNIA POPULATION TRENDS
30
20-34
20
% INCREASE
10
TOTAL
1955
60
65
70
75
80
1985
20-34 AGE GROUP VERSUS STATE TOTAL
FIGURE 5
8
Memorial Institute, 1969) showed a general agreement of forecasts of
total demand through 1980.
Most energy economists concur that predictions beyond 15 years are
tenuous at best as changing technology becomes too large an unknown
factor. In the long term, such other factors as production of synthetic
oil and gas, and changes in cost relationships and lifestyles may also
appreciably affect energy requirements.
Traditionally estimates of future demand have been on the low side.
A study published in 1963 predicted U. S. oil yearly consumption at
5.34 billion barrels by 1980; this rate was reached in 1970. (0il and
Gas Journal, 1963). Component estimates are even more hazardous and
subject to technological influence. Estimates of aviation gas consumption
made during the late forties and fifties proved to be off by several orders
of magnitude as the rapid increase in jet aircraft was not anticipated.
The following discussion examines each of the five basic energy
markets in California.
Transportation Market
The Transportation Market is presently the largest consumer of energy
and is the only market sector that is supplied virtually entirely by
petroleum. Nearly one million barrels of oil per day are consumed by
transportation in California, an amount greater than our present domestic
production. This market includes all forms of transportation: automobiles,
trucks, airplanes, railroads, and vessels. Automobiles are the greatest
consumers, using 22 percent of the total energy market and 61 percent of
the transportation market (Figure 6).
Higher vehicle manufacturing costs, along with a desire to gain fuel
economy, may lead to a reduction in average car size, but conversely the
efforts to limit polluting emissions from automobile engines will cause
reduced operating efficiency. On balance then, the fuel requirements for
9
FIGURE 6
CALIFORNIA
TRANSPORTATION MARKET
1970
1985
PERCENT OF TOTAL ENERGY MARKET
36%
34%
PRIMARY SOURCES OF ENERGY
61%
58%
MOTOR GASOLINE
MOTOR GASOLINE
OTHER
OTHER
12%
6%
JET
8%
JET
DIESEL
9%
FUEL
FUEL
FUEL
DIESEL
18%
28%
FUEL
THOUSANDS OF BARRELS PER DAY EQUIVALENT OIL
1200
800
400
0
O
400
800
1200
MOTOR
GASOLINE
JET FUEL
DIESEL FUEL
OTHER
TOTAL 945,000 BBL.
TOTAL 1,770,000 BBL.
#
10
automobiles will continue to rise proportionately to the number of cars unless
the average size and use of accessories is reduced substantially.
The fastest growing segment of this market is commercial air transport.
By 1985, the demand for jet fuel, according to present projections, will more
than triple while other segments will roughly double.
Rapid transit systems, such as the recently completed Bay Area Rapid
Transit, are not expected to be major consumers of energy by 1985. In the
event that there is broad acceptance and major systems are operating in the
Los Angeles area, the electrical energy used to power them will, for the
most part, be derived from burning oil and gas.
Industrial Market
The Industrial Market includes factories, mills, processing plants,
and other industry-type operations. The energy used is mostly in the
form of heat for furnaces, drying ovens, and process steam. Five percent
is in the form of raw materials for the manufacture of petrochemicals.
Currently the industrial component accounts for 25 percent of the total
market; by 1985, it will comprise 20 percent (Figure 7). This decrease
will result as greater amounts of electricity are substituted for primary
energy.
The demands of the Industrial Market are met almost entirely by natural
gas and oil with natural gas presently being dominant. A small amount of
coal is imported for use in a steel mill in Southern California. By 1985,
the total industrial demand will increase by 62 percent.
Electric Utilities Market
Vast amounts of primary energy are used to generate electricity. This
market ranks third in California as a consumer of energy. This is also the
fastest growing market and by 1985, according to present projections, will
rank as number two in comparison with the other markets. Its demands for
energy will roughly triple (Figure 8).
11
FIGURE 7
CALIFORNIA
INDUSTRIAL MARKET
1970
1985
PERCENT OF TOTAL ENERGY MARKET
20%
25%
PRIMARY SOURCES OF ENERGY
COAL 3%
COAL 2%
OIL
GAS
OIL
GAS
41%
56%
60%
38%
THOUSANDS OF BARRELS PER DAY EQUIVALENT OIL
800
400
O
O
400
800
GAS
OIL
I
COAL
I
TOTAL 651,000 BBL.
TOTAL 1,050,000 BBL.
12
FIGURE 8
CALIFORNIA
ELECTRIC UTILITIES
1970
1985
PERCENT OF TOTAL ENERGY MARKET
24%
32%
PRIMARY SOURCES OF ENERGY
GAS 2%
HYDRO
OIL
36%
NUCLEAR 3%
OIL
GEOTHERMAL-1%
8% COAL 8%
29%
7%
COAL 2%
GEOTHERMAL
HYDRO
13%
NUCLEAR
GAS
40%
50%
THOUSANDS OF BARRELS PER DAY EQUIVALENT OIL
800
400
0
O
400
800
GAS
OIL
HYDRO
-
NUCLEAR
GEOTHERMAL
COAL
TOTAL 636,000 BBL.
TOTAL 1,670,000 BBL.
13
Fortunately, electricity can be generated by a diverse selection of
primary fuels - hydropower, nuclear, geothermal, coal, oil, and natural gas.
Fossil fuels presently account for 59 percent of our electrical generation;
by 1985, this figure is expected to drop to 39 percent as nuclear and geother-
mal energy make a rapid rise. There will also be a substantial increase in
coal-derived electricity imported from the Four Corners area (juncture of
the four states - Colorado, Arizona, Utah, and New Mexico).
Residential Market
At present the Residential Market ranks fourth as a consumer of
primary energy, accounting for 11 percent of the total market (Figure 9).
By far the major energy source is natural gas, about 94 percent; this will
generally hold through 1985. The bulk of the primary energy is used for
heating with lesser amounts required for cooking, water heating, clothes
drying, and miscellaneous purposes. The Residential Market will likely
grow at a lesser rate than the other markets as electricity will increas-
ingly replace primary energy use in the home. By 1985 the Residential
Market will increase 70 percent, decreasing its share of the total market
by one percent.
Commercial Market
The smallest of the basic markets is the Commercial Market, presently
accounting for about four percent of the total (Figure 10). The market
includes all forms of commercial enterprise - retail establishments, whole-
sale organizations, office buildings, hotels, and institutions. Most of
the primary energy utilized is for space heating. Secondary energy in the
form of electricity satisfies the major portion of the energy used. The
past shift to natural gas away from oil for heating will probably not
continue. LPG is expected to be a more important factor. At present
natural gas accounts for 89 percent of the energy used for this segment;
by 1985 it will be 88 percent.
14
FIGURE 9
CALIFORNIA
RESIDENTIAL MARKET
1970
1985
PERCENT OF TOTAL ENERGY MARKET
11%
10%
PRIMARY SOURCES OF ENERGY
OIL
6%
OIL
9%
GAS
GAS
94%
91%
THOUSANDS OF BARRELS PER DAY EQUIVALENT OIL
600
300
0
0
300
600
GAS
OIL
TOTAL 296,000 BBL.
TOTAL 502,000 BBL.
15
FIGURE 10
CALIFORNIA
COMMERCIAL MARKET
137823
ТИЗОКЗЯ
1970
1985
PERCENT OF TOTAL ENERGY MARKET
4%
4%
PRIMARY SOURCES OF ENERGY
OIL
OIL
11%
12%
GAS
GAS
89%
88%
THOUSANDS OF BARRELS PER DAY EQUIVALENT OIL
200
100
0
0
100
200
GAS
OIL
TOTAL 111,000 BBL.
TOTAL 195,000 BBL.
16
The Five Markets Together
The primary energy requirements of the major markets in California for
1970 and 1985 are shown in Figure 11. This figure also shows that our overall
demand for energy is expected to be about twice as large in 1985 as in 1970.
If these forecasts hold reasonably true, it is evident that the
energy needs of the State, notwithstanding the Nation, will be enormous.
The requirements of the Transportation and Electric Utilities Markets alone
will represent two-thirds of the total market.
Even though the basic markets vary considerably in size, each one must
be considered as important as the other because they are inextricably
entwined. If any one is denied a fully adequate supply of energy, it will
impair the State's economy and the people's standard of living.
Primary Sources of Energy Together
The primary sources of energy, their consumption, and expected demand
are summarized in Table 1 in equivalent barrels of oil.
Oil is virtually the only energy source common to each of the five
basic markets and is the only source used in the Transportation Market. By
1985 a small amount of natural gas and synthetic fuel derived from coal may
be used in this market segment.
In 1970 oil alone accommodated 49 percent of California's energy need
and by 1985 it is expected to accommodate 57 percent. This is a direct
reflection of the decreasing availability of natural gas.
Natural gas and hydropower are the only basic sources that will remain
essentially unchanged in consumption.
17
CALIFORNIA ENERGY CONSUMPTION AND DEMAND
By Major Markets
COMMERCIAL
COMMERCIAL
RESIDENTIAL
RESIDENTIAL
4%
4%
10%
11%
ELECTRIC
TRANSPORTATION
ELECTRIC
TRANSPORTATION
ULTILITIES
36%
ULTILITIES
34%
24%
32%
INDUSTRIAL
INDUSTRIAL
25%
20%
1970 - 2,639,000 BBL.* *
1985 - 5,187,000 BBL.*
O
500
1000
1500
2000
THOUSANDS OF BARRELS DAILY
TRANSPORTATION
1985
INDUSTRIAL
ELECTRIC UTILITIES
RESIDENTIAL
COMMERCIAL
*
OIL EQUIVLENT
FIGURE II
18
Table 1
California Energy Use
By Source
Thousands of Barrels Per Day Oil Equivalent
Percent of Total
1970
1975
1980
1985
1970
1985
Petroleum
1,287
2,020
2,490
2,971
49.0
57.0
Natural Gas
1,063
1,087
1,090
1,049
40.0
20.0
Hydro
230
225
222
212
9.0
4.0
Nuclear
19
58
238
677
0.7
13.0
19
Geothermal
8
16
67
130
0.3
3.0
Coal
32
55
106
148
1.0
3.0
Total
2,639
3,461
4,213
5,187
100.0
100.0
ENERGY SUPPLY
Because energy is absolutely essential to the welfare of California
and the Nation as well as an indispensable ingredient for our national
security, the continuing availability of adequate supplies is vitally
important. All segments of society, small business, private industry,
and most of all, government, need to be concerned because an energy
crisis does exist. As Table 1 shows, oil and natural gas will continue
as the mainstays of our energy supply through 1985. The time lag asso-
ciated with the development of other energy resources, seven to eight
years for nuclear, means that petroleum must provide the major portion of
our energy needs. As Table 2 denotes, there are vast proven reserves of
the principal fuels--oil, gas, and coal--on a world basis and these fuels
supply 96 percent of the Nation's energy demand and 90 percent of
California's demand. However, at the present and projected domestic
rates of consumption, proven national reserves of oil and natural gas will
be short-lived. California's proven reserves and daily production of these
two important fuels are rapidly diminishing. The last major oil discovery
was in 1965 in the McKittrick area in Kern County. Our oil reserves have
declined to about 5.2 billion barrels and our gas reserves to about 7.5
billion Mcf. (Table 3). Daily oil production has declined from a high of
1,022,000 barrels in 1968 to 892,000 barrels in 1972. Natural gas production
also fell; from a high of 1,960,000 Mcf. per day in 1968 to 1,420,000 Mcf.
per day in 1972.
In the light of projected demand, these statistics reveal that
California will become increasingly reliant on foreign imports. The
amount of reliance will depend largely upon national and state policies
and their role in encouraging efforts to enhance or restrict domestic
20
TABLE 2
PROVEN RESERVES - OIL, GAS, AND COAL
1971
OIL
GAS
COAL
Billion equiv.
Billion
Billion equiv.
(Billion barrels)
Billion Mcf.
bbls. oil
short tons
bbls. oil
California
5.2
7.5
1.33
.078
.4
21
United States
37.0
257.0
45.6
1,605.0
7,240.0
(includes
North Slope)
Free Foreign
474.4
897.0
159.4
3,300.0*
14,900.0
*Total Foreign
Table 3
CALIFORNIA OIL AND GAS RESERVES
1971
Million Bbls. or Mcf.
Primary Reserves
Secondary Reserves
Potential Reserves
Oil
Wet Gas
Dry Gas
Oil
Wet Gas
Oil *
(Bbls.)
(Mcf.)
(Mcf.)
(Bbls.)
(Mcf.)
(Bbls.)
Onshore
Urban
1,635
938
6
478
60
1,175
22
Rural
2,710
2,972
3,002
296
15
5,575
Offshore
State
756
275
302
66
8
3,590
Federal
99
146
-
125
11
20,000
TOTALS
5,200
4,185
3,310
965
94
30,440
DEFINITION OF TERMS:
Primary Reserves - Reserves recoverable under currently active operations.
Secondary Reserves - Additional reserves recoverable by application of known stimulation methods to
proven fields.
Potential Reserves - Undiscovered recoverable reserves presumed to exist due to favorable geology.
* Includes gas equated to oil.
exploration and development.
Although California has a large potential reserve of oil and gas
(Table 3), there has been a drastic decline in exploratory well drilling
since 1964 (Figure 12). Geophysical exploration has also been on the
decline (Figure 13). Since exploratory efforts are needed to make dis-
coveries, it is easy to understand why there have been no significant
oil discoveries in California in recent years. This trend is graphically
illustrated on Figure 14, which is a historical account of the amount of
oil reserves discovered. Thirty-one percent of the oil was discovered
prior to 1910 and 91 percent prior to 1940.
Oil
In 1970, California consumed oil at an average rate of 1.29 million
barrels a day while producing only 950 thousand barrels per day. Oil
comprised 49 percent of California's total energy supply, including
100 percent of our transportation fuel, 7 percent of our energy used in
households and commercial establishments, 41 percent of our industrial
energy, and 7 percent of the energy input for electrical power.
Projections of demand growth rate indicate an ever-increasing need
for oil products. However, within the probable range of future California
requirements, one conclusion seems obvious. Without a major, positive
change in our domestic oil-finding and producing efforts, California will
certainly depend more and more on outside sources for its oil supplies.
This dependency on foreign sources of supply presents another set of
complex problems. Two of the foremost foreign import shortcomings are
the unreliability of the source and the burgeoning balance of payments
deficit. It has been estimated that by 1985 the United States may have
to import more than one-half of its petroleum supply. This will place
the Nation in a highly vulnerable position. Many of the foreign
23
FIGURE 12
800
700
600
500
400
300
200
100
0
1961
62
63
64
65
66
67
68
69
1970
EXPLORATORY WELLS DRILLED IN CALIFORNIA, 1961 - 1970
FIGURE 13
300
250
CREW MONTHS WORKED
200
150
100
50
0
1961
62
63
64
65
66
67
68
69
1970
GEOPHYSICAL ACTIVITY IN CALIFORNIA, 1961-1970
24
FIGURE 14
4.0
3.5
HISTORICAL CHART SHOWING DISCOVERY OF
CALIFORNIA OIL RESERVES
3.0
2.5
25
BILLIONS OF BARRELS
2.0
1.5
1.0
0.5
0.0
Pre 1900
05
10
15
20
25
30
35
40
45
50
55
60
65
1970
producing areas have long been the scene of strife and turmoil which poses
the continuing possibility that the movement of oil to market may be halted
by foreign governmental action. Threats to cut off or reduce the supply
are frequently heard, and several times in the past the movement of oil to
market has been stopped or reduced.
Not only would the United States be in a position of constant weakness,
always vulnerable to having a major portion of its supply cut off, but it
would also suffer from a monumental balance of payments deficit. Chase
Manhattan Bank (1972) projections indicate that the amount of imported oil
and natural gas needed by 1985 will likely create an outflow in excess of
$30 billion per year. The annual balance of payments deficit for petroleum
alone could be as much as $25 billion. This is a deficit the Nation simply
could not tolerate. Because the United States would be an importer out of
necessity, we would have no bargaining power and would be forced to pay
whatever price is demanded by the producing countries. This could make the
balance of payments deficit even greater. These effects will also be felt
by California. If the decline of domestic oil and gas production continues
at its present rate, by 1985 California will have to import 2.47 million
barrels of oil or more than 83 percent of its supply; the major source will
be the Eastern Hemisphere unless the Aleyska pipeline is constructed to Valdez.
In any event, California will be in a precarious energy supply position which
certainly underscores the tenet that domestic reserves of oil must be exploited.
As shown on Table 3 and illustrated on Figure 15, there is a potential
recoverable reserve of over 30 billion barrels of oil in California, including
the Outer Continental Shelf. Therefore, a considerable volume of oil could
be added to California's present proved reserve if appropriate incentives
were given to insure a thorough examination of all of the State's
26
FIGURE 15
MAP SHOWING PROVEN AND POTENTIAL OIL AND GAS RESERVES FOR 1971
AREAS
I
HUMBOLDT OFFSHORE BASIN
O
2
MENDOCINO OFFSHORE BASIN
I
3
NORTH COAST RANGES
140
<<<<<<<<<<<<<
4
SACRAMENTO VALLEY
5
O
POINT REYES OFFSHORE BASIN
2
6
SANTA CRUZ OFFSHORE BASIN
130
7
CENTRAL COAST RANGE
8
SAN JOAQUIN VALLEY
9
SANTA MARIA OFFSHORE BASIN
10
SANTA MARIA BASIN
11
SANTA BARBARA CHANNEL
12 VENTURA BASIN
13 LOS ANGELES BASIN
14 SOUTHERN CALIFORNIA OFFSHORE BASINS
5
3
265
EXPLANATION
5
4
625
265 = PROVEN RESERVE (MILLIONS OF BBLS.)
625 = POTENTIAL RESERVE(MILLIONS OF BBLS.)
BASE
SACRAMENTO
O
5
320
O
6
450
3445
110
8
3165
7
625
COTINENTAL
BAKERSFIELD
0
9
300
210
150
SAN
I2
10
155
175
II
1275 ANDRES Rs FAULT
3500
830
13
LOS ANGELES
1000
760
14
18750
ADOPTED FROM NPC, 1970
27
potential oil-producing sedimentary basins, whether located in offshore, urban,
or rural areas. Particular emphasis should be placed on the offshore areas where
some 25 percent of our present supply is obtained and where over 75 percent of our
potential reserves exist. We must also be cognizant of the fact that about 30
percent of our proven reserves of oil is found in urban areas, and that it has
been demonstrated that this oil can be produced without major deleterious affects
on the area's natural esthetics or environment. The producing oil fields in down-
town Los Angeles and the offshore area of Long Beach are excellent examples of
this compatibility. With present technology only about one-quarter of the total
oil in the reservoir is recovered. As indicated in Table 4, approximately 60
billion barrels of oil will be left in California's proven fields after the 5.2
billion barrels of proven reserves are produced using our present extraction
technology. Therefore, a large potential oil reserve exists in these old fields
if new techniques can be found to increase the percentage of extraction. Industry
has ongoing research programs in methods of secondary recovery. It is expected
that this technology will steadily improve. Added production from any of these
domestic sources could negate or certainly diminish California's expanding re-
liance on outside sources of supply.
As shown on Figure 16, by 1985 California's total oil production will be
about 500 thousand barrels per day, far short of our demand of 2.97 million
barrels. Under optimum conditions and with full development of our offshore
and onshore resources, including Federal Outer Continental Shelf, by 1985 our
production could be more than 2.0 million barrels per day. Additionally, if
the Elk Hills Naval Petroleum Reserve, with an initial capacity of 160 thousand
barrels per day were produced, by 1985 55 thousand barrels per day would still
be available.
28
Table 4
CALIFORNIA OIL AND GAS INVENTORY
1971
Million Bbls. or Mcf.
REMAINING OIL AND GAS IN PLACE
OIL
WET GAS
DRY GAS
(Bbls.)
(Mcf.)
(Mcf.)
Onshore
Urban
27,384
4,984
11
Rural
31,799
3,336
3,601
Offshore
State
5,683
341
172
Federal
732
179
-
TOTAL REMAINING
65,598
8,840
3,784
CUMULATIVE STATE
PRODUCTION
15,787
19,216
6,365
(Incl. Federal)
TOTAL ORIGINAL
OIL & GAS IN PLACE
81,385
28,056
10,149
29
3000
OIL PRODUCTION IN CALIFORNIA
2000
30
DAILY OIL (thousands of borrels)
PRODUCTION FROM FULL-SCALE DEVELOPMENT OFFSHORE OF AND ONSHORE
TOTAL CONSUMPTION
1000
DAILY
PRODUCTION
ADDITIONAL PRODUCTION FROM ELK HILLS NAVAL RESERVE
O
1960
1965
1970
1975
1980
1985
FIGURE 16
By 1985 then, California's production from all sources could be as
much as 2.6 million barrels per day. This would make our daily oil deficit
only 370 thousand barrels as opposed to 2.47 million barrels if we follow
our present course.
This, coupled with California's share of the 2.0 million barrels per
day expected from the Alaska North Slope, could make California essentially
independent from unstable foreign supplies through 1985.
It is possible that alternate sources of oil from coal or oil shale
could provide some oil to California, but it will be 15 years before we have
the capability to produce significant amounts of oil from these resources,
and California has no oil shale or significant deposits of coal. Therefore,
any products from these sources would have to be imported and with the current
requirements of the other states involved, there is no assurance that
California would receive any of these products.
Regardless of where we obtain our oil, it still has to be refined to be
of use. To process our 1985 demand, California's refining capacity of about
1.7 million barrels per day will have to be increased by about 70 percent.
This means that seven new refineries the size of the giant Richmond facility
would have to be constructed. This number will be even larger if California
continues to refine products for use in other western states.
Gas
Natural gas provides 40 percent of California's total energy require-
ments. It supplies approximately 94 percent of the residential and com-
mercial energy needs, 50 percent of the requirement of steam electric plants,
and 56 percent of the industrial demand.
The emphasis being placed on improving our air quality, particularly
in the Los Angeles region, will further accentuate demand for natural gas
because of its clean-burning qualities. During the last few years, demand
31
for natural gas has exceeded the growth rate demand for total energy.
However, an acute shortage already exists which will preclude further
growth. The supply will remain nearly static through 1985 with oil making
up the difference between supply and demand.
Although California imports three-fourths of its natural gas needs,
a strong indigenous base is still important. California's total domestic
proved reserves of natural gas now available to our markets has been
declining since 1963. As of December 31, 1971, the total proved reserve
of natural gas in California was approximately 7.5 billion Mcf. (Table 3).
Our present rate of consumption is 5.7 million Mcf. per day or 1.1 million
equivalent barrels of oil. California production is steadily declining
and by 1985 will be about 1.0 million Mcf. per day (Figure 17), or only
17 percent of our demand compared to 28 percent in 1970. If new dis-
coveries of natural gas are not found to augment our reserves, greater
shortages will surely prevail. Figure 18 is a historical account of the
discovery of California gas reserves.
California's gas production comes from two sources, that which is
produced from gas fields (dry gas) and that which is produced in associa-
tion with oil (wet gas). There is a large potential reserve of both wet
and dry gas that lies undiscovered in California's major hydrocarbon-
producing basins. Generally, the discovery of a large oil reserve means
the discovery of a large gas reserve, so if oil drilling is resumed in
offshore areas, substantial reserves of gas will be found. In the
Sacramento Valley, the source of most of our dry gas supply, there is an
estimated gas reserve of 625 million barrels of equivalent oil. Steps
must be taken to enhance the exploration and development of this undis-
covered resource. If the rate of natural gas development is not accelerated,
then alternate methods of providing supplemental supplies of gaseous
32
6000
5000
TOTAL CONSUMPTION
4000
IMPORTED GAS
DAILY GAS (thousands of MCF)
3000
33
2000
DAILY PRODUCTION
1000
CALIFORNIA GAS PRODUCTION
0
1960
1965
1970
1975
1980
1985
FIGURE 17
8
7
HISTORICAL CHART SHOWING DISCOVERY OF
CALIFORNIA GAS RESERVES
6
WET GAS
DRY GAS
5
34
BILLIONS OF MCF
4
3
2
I
0
Pre 1900
05
10
15
20
25
30
35
40
45
50
55
60
65
1970
FIGURE 18
fuels will have to be developed because the bulk of our gaseous fuels for
at least the next decade will be natural gas.
Obviously there is a great need for alternate sources of supply.
California presently obtains approximately 61 percent of its gas supply
from the southwestern states and 17 percent from Canada. Although the
amount of gas brought in from Canada is likely to increase substantially
in the years ahead, it will not represent a significantly large portion of
the required supply. Pacific Gas Transmission, the utility which brings
Canadian gas to California, was recently denied authority to import an
additional 200,000 Mcf. per day from Canada by the Canadian Natural Energy
Board. It is anticipated that Pacific Gas Transmission will renew its
import request as soon as sufficient reserves are available to meet present
import criteria, but nevertheless the shortcomings of imports still arise.
To help bolster our reserves, several California gas utilities are carrying
on exploration and development ventures in Canada, Alaska, and the Rocky
Mountain states. Recently these utilities have begun a program to aid in
financing California gas ventures. Also, Pacific Gas Transmission is a
member of Gas Arctic, which is a study group analyzing prospective pipeline
routes from the Arctic area to the United States. Such participation should
insure the consideration of California needs in all pipeline routing studies.
As noted, imported gas is presently brought to California markets via pipe-
line. However, it is possible to convert natural gas to liquid form by
lowering its temperature to -260° Farenheit. In this form it can be trans-
ported by specially built tankers from foreign sources. However, the high
cost of these special tankers and other handling and liquification facilities
makes this gas several times more expensive than pipeline gas. Thus the
delivery costs to our markets would be considerably higher than the cost of
domestic gas. Here again, as with imported oil, we are confronted with the
35
problems of balance of payments, governmental instability, and unre-
liability from a foreign source. Nevertheless, some pilot projects have
been started.
There are two locations in Alaska--Prudhoe Bay and Cook Inlet--that
are possible sources of liquid natural gas (LNG). The gas may be available
from Cook Inlet by 1975 if contracts can be obtained. The minimum project
would be for 180,000 Mcf. per day using 120,000 cubic meter ships. The
delivered price is unknown at this time because the cost of the gas at
the source is unknown. LNG from Australia is being considered. The recent
gas discoveries offshore in northwest Australia are likely to become available
for export. The chances are now remote, however, for the central Australian
Project because this gas will most likely be used in Australia. Indonesia is
a possible source, but at this time little is known of the project except that
Pacific Lighting Company has a letter of intent with the government-owned
company concerning gas discoveries in that country. An agreement with Russia
to sell LNG to the United States by 1980 seems likely as of this writing.
The proposal, involving about $46 billion, will deliver gas to both the East
and West Coasts. A 56-inch pipeline carrying about two million Mcf. per day
would be built from Yakutsk in central Siberia to Vladivostok. At this point
the gas would be liquefied for shipment to the West Coast. Cost to
California consumers has been variously estimated between $1.40 - $2.00
per Mcf. Also, Algerian LNG will probably be available on the Gulf
Coast of Texas in 1977. The cost of this supply would be $1.20 per Mcf.
at the Gulf Coast, which would mean approximately $1.50 per Mcf. in
California as compared to the approximate price of $0.35 per Mcf. currently
paid for domestic gas. These are dramatic examples of rising costs of
future energy supplies. Nevertheless, imports of LNG could become signifi-
cant contributors to market demand by 1985.
36
Upon reviewing all the possible sources of gas supply-both natural
and synthetic-- that can be realistically made available by 1985, indica-
tions are that supply will fall very short of indicated market needs. If
circumstances do not improve sufficiently to stimulate a much expanded
search for North American reserves of natural gas, a significant percentage
of California's market will go unsatisfied. This means that a portion of
the market will have to look to other sources of primary energy.
The only direct substitutes for natural gas in California that can be
utilized in the short term are oil and coal. Because of the gas shortage,
it is expected that the Industrial and Electric Utilities Markets will sub-
stitute oil to meet energy requirements. For example, in 1975 it is expected
that the Electric Utility Market alone will consume nearly ten times as much
oil as in 1970. The Nation has a vast supply of coal, but all of the major
deposits are found outside of California. Also, coal, like much of our
crude oil, has a serious drawback from an air pollution standpoint because
of its high sulfur content. Nevertheless, if the stage is reached where
these two fuels are the primary source of the State's energy, then a trade-
off may have to be made between air quality commitments and energy demand
because at this point California could not have both.
Hydropower
In 1970 in California, hydropower, including imports, accounted for
nine percent of the total energy supply and 36.0 percent of the Electric
Utility Market; this amounts to 230 thousand barrels of equivalent oil
per day.
During 1970, 104 million kwh per day of electricity was generated in
California by hydropower; converted to equivalent oil, this is 177 thousand
barrels per day. In addition, 31 million kwh of electricity per day generated
by hydropower were imported into California from Arizona and the Pacific
37
Northwest. This is equivalent to 53 thousand barrels of oil per day.
Production of hydroelectricity in California is expected to increase
only 8.2 percent by 1985. This slowness of growth is attributable to the
scarcity of available sites and environmental restrictions. Imported
hydroelectricity is expected to drop 49 percent as the Northwest consumes
an increasing share of its own output. If there were unrestricted develop-
ment of hydropower in California, the ultimate production would be about
164 million kwh per day, or 280 thousand barrels of equivalent oil.
Geothermal Energy
Geothermal energy is the natural heat of the earth which can be
extracted in the form of hot water and/or water vapor (steam). It is
presently being used in California to generate electrical power, heat
commercial and residential buildings and greenhouses, and to provide hot
water for spas.
Its prime use at present is to generate electrical power as is being
done at The Geysers geothermal field in Sonoma County. In 1970, geothermal
energy accounted for 0.3 percent of the total energy used in the State and
1.3 percent of the Electric Utility Market. The power generation at The
Geysers in 1970 was slightly above 1.4 million kwh per day, or eight
thousand equivalent barrels of oil. It is estimated that by 1985 the power
generation from geothermal energy, developed throughout the State, will be
about 76 million kwh per day, or 130 thousand equivalent barrels.
At present the real nature of the resource is not well known; also,
to what ultimate extent it can be exploited is unknown. In the one pro-
ductive geothermal area, the electrical generating capacity in 1970 was
82.5 megawatts per hour; by 1985, California's total capacity, assuming
technical difficulties will be overcome, might be 5,000 megawatts per
hour (Figure 19). Because the State has at least 15 potential geothermal
38
FIGURE I9
7
6
ESTIMATED FUTURE GEOTHERMAL ELECTRIC POWER CAPACITY
IN CALIFORNIA
5
39
THOUSANDS OF MEGAWATTS/HR
4
3
2
I
0
1970
71
72
73
74
75
76
77
78
79
80
81
82
83
84
1985
areas (Figure 20), the energy resource could be even more significant in
the future, especially in view of the rapidly rising costs of competing
energy sources. However, by 1985, its contribution to the overall energy
demand will likely be small, less than 3.0 percent.
Coal
Coal occurrences have been reported in 43 counties in California, but
only at a few locations is the coal of sufficient quantity and quality to
warrant consideration for commercial development. Most of the coal beds
in California are apparently of limited extent, and few seams have been
traced more than a few square miles. By comparison, coal fields in the
eastern United States and in the Rocky Mountains are known to underlie
hundreds and even thousands of square miles.
Records and reports of coal production in California are fragmentary
and incomplete. In many places, the coal beds have not been mapped and
their extent is unknown, hence recoverable reserves in the State can only
be roughly estimated. The present reserve of 77.9 short tons is only
0.00005 percent of the Nation's coal reserve (Table 5).
The principal coal mines in California have been those at Mt. Diablo,
Contra Costa County; Corral Hollow, Alameda County; Stone Canyon, Monterey
County; Alberhill, Riverside County; and Ione, Amador County (Figure 20).
As coal found in California is generally of lignite or subbituminous
rank, it has a low heating value, and generally makes poor fuel compared
with coal mined in the Rocky Mountains and the eastern United States.
California coal does not yield coke that is suitable for use in steel
smelting. This is attributable to the high ash and sulfur content of the
coal and to the weakness of the resulting coke. Coking coal for
California's steel smelters is brought into the State, mostly from Utah,
Colorado, New Mexico, and Oklahoma. This amounts to 17 thousand barrels
40
LOCATION OF
BITUMINOUS ROCK, COAL, URANIUM
DEPOSITS AND GEOTHERMAL AREAS
0
EXPLANATION
BITUMINOUS ROCK
SACRAMENTO
COAL
URANIUM
GEOTHERMAL AREAS
BAKERSFIELD
LOS ANGELES
FIGURE 20
SOURCE CALIFORNIA DIV. MINES AND GEOLOGY
AND DIV. OIL AND GAS
41
TABLE 5
Coal Reserves in California and United States
(Millions of Short Tons)
California
United States
Total Reserves
155.9
3,210,060
Recoverable Reserves @50%
77.9
1,605,030
TABLE 6
Bituminous Rock Reserves in California
Bitumen
Gallons
Area
Weight
per ton
Tons
Barrels of Bitumen
Point Arena
6½½
15.6
3,232,000
1,207,000
Cowell Mine
12%
10,000,000
Calrock Quarry
10%
10,000,000
Edna
11%
26.0
282,880,000
175,116,000
McKittrick
24.0
12,100,000
6,925,000
Northern Casmalia
42.0
100,000
4,200,000
Southern Casmalia
30.0
75,000,000
53,600,000
Sisquoc
30.0
41,000,000
30,000,000
Total Reserves
291,048,000
42
per day of equivalent oil. Additional coal, equivalent to 15 thousand
barrels of oil per day, is burned outside the State to generate elec-
tricity for California consumption.
Nuclear Fuel
Uranium combines with other elements to form a large variety of
minerals. Uraninite and pitchblende are the most common of primary
uranium minerals and generally occur in veins of hydrothermal origin.
Most of the uranium mined in the United States is obtained from
secondary uranium minerals in sedimentary deposits in the states of New
Mexico, Utah, Texas, Wyoming, and Colorado.
The first uranium ore marketed from California was shipped from the
Thum Bum claim near Big Bear Lake, San Bernardino County, in the early
summer of 1954. Also, in 1954 a railroad carload of uranium ore was
shipped from the Miracle Mine in Kern River Canyon, Kern County. Since
then about 9,000 tons of ore has been shipped from 17 different properties
in the State, and the uranium contained in this ore placed California
twelfth in rank among uranium-producing states.
Uranium ores have been mined in California from several different
kinds of deposits in widely separated parts of the State. Nearly all the
deposits are in the Sierra Nevada, Great Basin, and Mojave physiographic
provinces or parts of adjacent provinces (Figure 20). However, since only
about 10,000 short tons of uranium ore have been shipped from California
deposits in the past 18 years, it may be safe to infer that a similar
quantity of ore may be shipped in the next 20 years.
Nuclear reactors for power generation provide a heat source for making
steam to drive conventional turbines. Although there have been great improve-
ments in design, the thermal efficiency of nuclear-fired steam electric plants
is about 30 percent, or roughly 10 percent less efficient than a modern fossil
43
fuel-fired plant.
The current reactors consume more than twice the quantities of
fissionable materials as they produce. The breeder reactor, however, will
produce more material than it consumes. Further, the breeder is more
efficient than the conventional reactor, thus producing less heat loss and
radioactive waste. Breeder reactors are still in the development stages,
but a full-scale plant is planned for 1980.
Uranium is the principal fuel used in the nuclear generation of
electric power. Currently all this fuel is imported from other states.
In 1970, it supplied 0.7 percent of the total energy requirements of the
State and 3.0 percent of the Electric Utility Market. By 1985 nuclear
power is expected to increase greatly and to furnish 13 percent of the
total energy demand and 40 percent of the Electric Utility Market.
Because nuclear fuels are primarily used only in the generation of
electricity, their use is limited. A complete substitution of nuclear
fuel for oil and gas would satisfy only 25 percent of the total energy
demand in 1985.
Synthetic Fuels
1. Oil shale
There are several alternate methods of obtaining petroleum
supplies. One technique is the extraction of oil from oil shale.
Actually the term "oil shale" commonly refers to rocks that
contain a carbon compound known as kerogen, which is not petroleum,
but which can be processed to yield petroleum products. The oil
shale resources of the United States have enormous potential as
a future source of petroleum. Large areas of the United States
are known to contain oil shale deposits, but those areas in
Colorado, Utah, and Wyoming that contain the oil shale-rich
44
sedimentary rocks of the Green River formation possess the
greatest promise for shale oil production in the future.
Recoverable reserves from high-grade deposits have been esti-
mated to be in excess of 80.0 billion barrels. The less
accessible lower-grade deposits have a potential reserve of
over 1.0 trillion barrels.
Some 72 percent of the land containing commercial quantities
of oil shale is owned and managed by the Federal Government. To
stimulate development, the U. S. Department of the Interior has
proposed a plan of competitive bidding on selected tracts of oil
shale land in accordance with requirements and recommendations
of the Mining and Minerals Policy Act of 1970 and the Public
Land Review Commission. Although it is too early to appraise
the extent and nature of the interest by private industry in
obtaining and developing oil shale leases, it is possible that,
with adequate economic incentive, such as a sharp increase in the
price of crude oil, the production of shale oil could reach as
much as 900 thousand barrels a day by 1985.
More importantly, a basis would be laid for greater shale
oil production near the end of the century when it will be
urgently needed. Again, it must be noted that California has
no significant deposits of oil shale.
2. Bituminous rock
Another source of petroleum is that extracted from bituminous
rock (tar and asphaltic sands). These sands have been recognized
for many years as a potential source of synthetic crude oil. There
are numerous sand occurrences throughout the world, including
several in the United States. The largest known domestic deposits
45
are in Utah with lesser deposits in New Mexico, Kentucky, and
California.
The world's largest deposit is the Athabasca tar sands in
Alberta, Canada. The Great Canadian Oil Sands plant, with a
capacity of 45,000 barrels a day, was placed in operation there
in 1967. This marked the first large-scale recovery from tar
sands. Initial operating difficulties were encountered, but
improvements have been made in all phases of the operation.
In California extensive outcrops of bituminous rocks occur
in several counties (Figure 20). Several areas have been
extensively mined for quarry materials. Large deposits in
San Luis Obispo and Santa Barbara counties have been investigated
for commercial oil mining possibilities, but so far mining has not
been economic. One tar sand accumulation in Santa Barbara County
is operating commercially to produce lightweight concrete aggregate
and pozzolan by burning oil-impregnated rock. The estimated oil
reserve recoverable from tar sands by mining exceeds 290 million
barrels (Table 6). The largest single reserve is over 175 million
barrels at Edna in San Luis Obispo County. However, the mining
operation involved in tar sand recovery presents serious environ-
mental problems, especially in California.
3. Coal conversion
A third source for obtaining synthetic oil and gas is from
coal. As noted before, the coal reserves of the Nation are by
far its largest fossil fuel energy source. However, California's
coal resources are quite small. Synthetic oil and gas derived
from coal can be refined into a complete range of normal petroleum
products. Pilot projects are now in operation, but several years
46
more work will be required before the processes are commercially
satisfactory.
The interest in making synthetic pipeline gas from coal has
grown rapidly in the last few years. Coal can currently be con-
verted to pipeline gas, although it is of somewhat lower Btu value.
Coal-based gas contains about 915 Btu's per cubic foot compared to
approximately 1,030 Btu's per cubic foot for natural gas. Two
projects that can affect California are being contemplated, one by
El Paso and a second by the Pacific Lighting Group and Texas-
Eastern. Both plants will have an initial capacity of 250 thousand
Mcf. per day in about 1977. The contemplated total capacity of
each is 750 thousand Mcf. per day available after 1981. The cost of
either of these supplies is approximately $1.00 per Mcf. over the
25-year plant life at the plant outlet. The E1 Paso project has an
initial price of $1.20 per Mcf. However, new techniques and plant
design will probably lower this price in the future.
These processes are all relatively expensive and moreover,
approximately one-third of the energy content of the coal is lost
in the gasification process. There are also problems of an environ-
mental nature concerning the mining and plant operations. All of
these factors, of course, add to the price of synthetic gas.
El Paso is also contemplating a gasification plant on the Gulf
Coast using naphtha or condensate (petroleum products) for feedstock
with a capacity of 1.25 million Mcf. per day. Gas from this plant
would cost approximately $1.25 per Mcf. at the plant outlet and would
be available by approximately 1977. There has also been discussion
by Pacific Lighting Company to manufacture synthetic gas in the
Southern California area if the projects mentioned above do not
47
provide gas soon enough or do not come to fruition. No quantities
or price data is available for this source.
4. Solid waste conversion
In 1967, about 72 million tons of solid wastes were produced
in California. By the year 2000, an estimated 125 million tons of
solid wastes will be generated annually by domestic, commercial,
industrial, and agricultural activities.
Solid waste is grouped into three major categories: municipal
(residential garbage, commercial and street refuse, rubbish, etc.),
industrial (food, lumber, chemical, petroleum process waste), and
agricultural (manure, fruit, nut, field, and row crop waste).
Interpolation for 1973 indicates the total anticipated quantity
for that year is 77 million tons; the respective anticipated quantities
of solid waste production for agriculture, municipal, and industry in
1973 are 39 million tons, 26 million tons, and 12 million tons
respectively.
The U. S. Bureau of Mines is engaged in an extensive research
program directed toward the recovery of energy fuels from solid waste.
One program involves the recovery of oil from organic wastes. A
yield of about two barrels of low-sulfur oil per ton of dry organic
waste was attained in laboratory studies in 1970. This is suitable
fuel for electric power plants.
In 1971 experiments, agricultural wastes, wood, lignin, and
manure were successfully converted to oil. The oil can be used as
fuel directly or can be converted to gasoline and diesel fuels. More
work on the process will be required to determine the optimum condi-
tions of temperature, pressure, water content of the charge, and
carbon monoxide consumption, which contain the key to low cost of
48
oil recovery.
Another program involves the recovery of oil from scrap tires.
Scrap tires are shredded or cut into large pieces and placed in an
electric furnace connected with condensers, scrubbers, and metering
and sampling devices. Solid, liquid, and gaseous products are re-
covered. This method of treating tires was shown to be technically
feasible with the production of potentially valuable products. No
cost figures were reported for this pilot study.
A research and development company is presently operating a
small pilot plant that converts solid waste to oil. The company
has contracted with the County of San Diego (supported by an EPA
grant) to build and put in operation by November 1974 a small-scale
plant in the City of Escondido. This plant will have a capacity of
200 tons of as-received municipal solid waste per day. In addition
to producing an estimated one barrel of oil per ton of waste, the
plant will recover 140 pounds of ferrous metal, 120 pounds of clean
glass, and 160 pounds of residual char. The char has a reported fuel
value of 9,000 Btu's per pound. The company reports that a plant with
a capacity of 500 tons of solid waste per day would be competitive with
most existing integrated (i.e., collection, trucking, and cut and fill
disposal) solid waste land-fill operations of comparable size.
In 1967, the total solid waste production in California was
72 million tons. Assuming that only 50 percent of the solid waste
produced reaches disposal sites in significant volumes and that the
disposal site will eventually be replaced by treatment plants, and
that many new treatment plants will be built at appropriate localities
throughout the State, then these plants would handle approximately
1/ Based on the following assumed content: 50 percent organic waste,
25 percent nonorganic waste, and 25 percent water.
49
10Q thousand tons of solid waste per day and would produce oil on
a one barrel for one ton as-received total waste basis. Thus, if
all phases of these operations prove successful, it would be possible
to produce 100 thousand barrels of oil per day from solid wastes, or
about one-third of the present daily oil imports into California.
Basic Energy Supplies Together
California has no significant supplies of coal or nuclear fuel, yet
electrical energy from these two sources is expected to increase substan-
tially by 1985. In the case of coal, it will be burned outside of
California in conventional steam electric plants and the electricity will
be transmitted to California consumers. Nuclear fuel, however, will be
imported and converted to electricity in California plants. Geothermal
resources may develop into a significant supply of energy within the next
several decades, but the quantity is highly speculative at present.
Because new sites for dams are limited, hydropower will provide a lesser
share of the total market in the future. Oil and natural gas will still
supply the bulk of our energy requirements through 1985. The level of
gas consumption is not expected to change due to the limited availability.
Oil consumption will increase sharply and as our domestic production
declines, imports will grow from 337 thousand barrels per day to about
2.5 million barrels per day.
Figure 21 shows the proportion of the total energy market that each
fuel occupied in 1970 and the proportion that they are expected to occupy
in 1985, together with the probable relative level of domestic and
imported availability.
50
FIGURE 21
CALIFORNIA
BASIC ENERGY SUPPLIES
1970 - 2,639,000 BBL.
12%
13%
GAS
28%
OIL
36%
7% 2
%
HYDRO
NUCLEAR 1%
COAL 1%
GEOTHERMAL < 1%
1985 - 5,187,000 BBL.
GAS
4%
16%
HYDRO
3%
1%
47%
13%
OIL
NUCLEAR
3%
3%
10%
GEOTHERMAL
COAL
DOMESTIC
IMPORTED
51
NEW SUPPLIES OF ENERGY
Although fossil fuels, particularly oil, will continue to be our
dominant energy source through 1985, the exotic energy sources need to
be briefly examined, if only to allay hopes of them being a panacea for
the immediate problem. It is recognized, however, that research and
development of these sources should continue along a broad front as our
energy demand cannot be forever satisfied by fossil fuels. The following
text will be a cursory examination of some of the better known or more
important possible new sources or conversion systems. None of these are
expected to make significant contributions to our energy supplies by 1985.
Solar Energy
Often heralded as the savant of our energy crisis, it is interesting
to note that direct solar energy has been used for thousands of years by
man. Raisins, apricots, peaches, and prunes are still dried by solar
energy in the field. Brines are evaporated in ponds for salt recovery and
greenhouses utilize this source extensively.
A solar furnace that concentrates incident sunshine by means of flat
mirrors and a parabolic reflector is in use in France, but its use is
largely experimental and appears to offer no real promise for widespread
power generation (Weaver 1972).
The silicon cell has been used with reliability for the conversion
of solar radiation to electricity for applications in outer space. To
generate significant amounts of power requires the connection of vast
numbers of cells and the high capital cost of these results in power costs
on the order of one thousand times that of conventional generation methods.
Agricultural Energy
Agriculture currently provides the major source of renewable energy.
52
Forests and cultivated lands can be used repeatedly for the production of
energy. Some by-products of agriculture, including forests, are now used
as energy sources, but although significant for their specific purpose,
they are insignificant in the total energy picture. Some lumber mills
utilize wood waste to fire steam boilers, and fruit seeds and nut shells
are used to make charcoal briquets.
Currently some alcohol is produced by fermenting grains, but the
cultivation of crops strictly for the production of energy has been given
little consideration. Cereal grains could be raised exclusively for their
value as carbohydrates for fermentation, and with hybridization of new
varieties for this single purpose, yields of usable carbohydrates could
undoubtedly be increased.
It has been estimated (NPC 1971) that on a national basis about
18 billion gallons of alcohol could be produced from grain not needed
for food. Taking into account that alcohol has a heating value of 65
percent of that of gasoline, this would replace about 14 percent of our
national consumption of gasoline.
Tidal Energy
Three major problems concerned with the development of tidal energy
are that there is negligible potential in California, capital costs are
high, and there are adverse ecological effects from damming an entire bay
or estuary. The tidal range (height between high and low tide) varies from
five feet off Southern California to about 7.5 feet off the coast of
Washington. Several areas in Northeastern United States, Alaska, and
Canada do have ranges in excess of 20 feet, and therefore, have some
potential.
The concept of using the rise and fall of the tides to produce power
has long interested the inventor. The only practical method demonstrated so
53
far is based on the use of tidal basins separated from the sea by dams
and of hydraulic turbines through which the water passes between the
basin and sea.
The only large-scale plant of this kind is on the Rance River in
France; the output is 240 thousand kwh (Weaver 1972).
Hydrogen
The possibility of utilizing hydrogen as a replacement fuel for
natural gas is a fascinating concept. Hydrogen burns hotly and the only
emission is water vapor. It can be transported by the same systems that
transport natural gas. At present there is no commercial method of
making hydrogen gas for widespread use. It can be made from petroleum,
but to be a substitute fuel, it would probably be made by separating
water into hydrogen and oxygen by electrolysis. The electricity could
be generated by nuclear or wind power stations located offshore and thus
the hydrogen would be made on site and piped ashore where it would be
used as a substitute for natural gas, including the generation of
electricity by fuel cells.
Energy Conversion Systems
1. Fuel cells
The fuel cell is a chemical-to-electrical-energy-conversion
device in which complete conversion of energy is theoretically
possible. Natural gas, alcohols, gasified coal, or other materials
containing large amounts of hydrogen can be reformed to hydrogen
gas, and this is then used with oxygen to produce electricity. In
practice, the conversion efficiency is between 40 and 50 percent
which is about 10 percent better than fossil fuel-fired plants.
Another significant advantage is that there are fewer environmental
deficiencies.
In 1967 a nationwide group of gas companies, together with
54
Pratt and Whitney Aircraft, started a nine-year pilot program
to explore, research, develop, and test natural gas fuel cells
for on-site electric power generation. To date, $50 million has
been invested and 30 units have been installed in various local-
ities throughout the Nation. Should this program prove successful,
the power plant that could be brought to market would be smaller,
lighter, and capable of years of unattended operation. However,
it is not likely that fuel cells will have a significant effect
on California's total energy market before 1985.
2. Total energy systems
In a total energy system, waste heat from the electrical
generating system is used to supply other energy needs in an
establishment. Gas and diesel engines or gas turbines are the
usual prime movers. The economic appeal of these systems is
their high fuel efficiency (up to 70 percent) and low energy
costs relative to network-electricity if cheap fuels are available.
With the increasingly less favorable economics for natural gas
beyond 1975, it is not expected that total energy systems will
have a significant effect on the energy picture during the
forecast period of this report.
3. Magnetohydrodynamics (MHD)
The energy contained in a hot electrical-conducting gas is
converted directly into electric power when the charged particles
of gas cut through the field of an external magnet.
The promise of MHD is that it is a simple conversion device
that offers high thermal efficiency (about 60 percent) and will
work well with the combustion of gas or coal, our most abundant
fossil fuel. MHD can also be used as a "topping" device (using
hot exhaust gas) in conjunction with conventional gas turbines.
55
There are still some technical and engineering problems
to be worked out before MHD will be a significant power source.
It is probable that MHD peaking plants will be functioning
before 1985.
4. Nuclear fusion
The nuclei of the lightest elements can be made to fuse to
form heavier nuclei and in the process release enormous quantities
of thermal energy. Controlled thermonuclear fusion offers the
possibility of direct conversion of this thermal energy into
electricity and an almost infinite source of energy.
Deuterium, an isotope of hydrogen, is the essential fuel
for fusion. Deuterium can be extracted readily at relatively
low costs from water which contains one atom of deuterium for
each 6,500 atoms of ordinary hydrogen. The world's oceans
represent a virtually inexhaustible potential source of fuel.
Thus, the development of controlled fusion would provide an
unlimited energy source.
However, technological and economic problems facing the
successful development of fusion are so great at this time that
fusion as a practical energy source will not be available by 1985.
With sufficient support, a demonstration fusion power system
might be built by the end of this century. However, there is a
big difference between establishing a scientific principle and
translating it into a commercially successful industry. In this
case, the difference amounts to years of effort and billions of
dollars of investment, assuming it can be done at all (U. S.
Department of the Interior, 1972).
56
CONSERVATION OF ENERGY
There are two principal ways to conserve energy: (1) by increasing
efficiency of conversion, and (2) by restricting demand. In the intro-
duction it was pointed out that there is a strong correlation between
energy consumption and gross national product. If steps to restrict energy
consumption are based on measures which will make energy use too costly for
certain segments of society, then there is a real risk that the growth of
GNP will suffer. A corollary of this would be an increase in the balance
of payments deficit brought about by the competitive disadvantage that our
goods would face against goods manufactured abroad with cheap energy.
The following discussion will only briefly touch on some of the better
known or popularly credited methods of energy conservation. This important
subject could easily be expanded into a separate report.
Methods to Increase Efficiency
In California less than half of our energy consumption does useful work;
the remainder is waste, mostly in the form of heat. This amounts to about
1.3 million barrels per day of equivalent oil.
Conversion of energy resources to heat for process steam and space
heating are highly efficient, nearly 90 percent. Conversion of falling
water to electricity is also highly efficient, about 85 percent. But, the
internal combustion engine is only 25 percent efficient, the incandescent
lamp less than 5 percent, Wankel engine 17 percent, and nuclear electric
30 percent. Although some electrical devices, such as motors and trans-
formers, are extremely efficient, the basic conversion system of energy
resources which renders them operable is only about 33 percent efficient.
A quantum jump in efficiency of steam electric power plants was made
between 1900 and 1970 when it rose from four percent to 33 percent.
57
Railroad locomotives made like increases when they switched to diesel
electric (Summers 1971).
Industry is constantly searching for more efficient energy conversion
systems; the search will intensify as energy becomes more expensive. A
new system of generating electricity from coal has been devised which will
achieve 51.1 percent efficiency compared to the best 39.5 percent for
conventional model plants. This increase effectively adds 11.6 percent to
our coal reserves.
It is apparent, therefore, that improved efficiency in conversion
systems holds excellent promise for increasing the longevity of our re-
sources and reducing pollution.
Restricting Energy Demand
Much publicity has been given to restricting demand as an energy
conservation means. A tax on horsepower, a halt to new electrical gen-
erating plants, a restriction on development of resources, a prohibition
on advertising by energy suppliers--these have all been proposed. To some
extent these are now in effect; however, no measurable impact has yet been
documented.
58
POSTSCRIPT
The findings of this report lead to the following questions:
1. How can we stimulate domestic development of energy supplies?
2. Can the State accommodate vastly increased tanker traffic including
providing deep water ports and attendant facilities?
3. Can environmental controls be more flexible?
4. Can incentives be given for high efficiency in use of fuel?
5. How dependent can the State afford to become on foreign oil and gas?
6. How can the State provide for increased consumption of energy and
yet preserve the environment and improve the quality of life?
It is obvious that answers to these questions will not be easily
attainable. An in-depth study or studies need to be made which will
bring the exceedingly complex interrelationships among demand, supply,
environmental quality, esthetic desirability, and government policy into
focus.
59
GLOSSARY
Asphalt - A brown to black solid or semisolid bituminous substance occur-
ring in nature.
Barrel - A liquid volume measure equal to 42 U. S. gallons.
Bituminous coal - "Soft coal," coal containing between 15 and 50 percent
volatile matter.
Bituminous rock - A rock containing hydrocarbons or bituminous material.
Breeder reactor - A nuclear reactor that creates more fissionable fuel
than it consumes.
Btu - British thermal unit; the amount of heat needed to raise the tempera-
ture of one pound of water 1° F. at or near 39.2° F.; a measure of energy.
Coal gasification - The conversion of coal to a gas suitable for use as
a fuel.
Condensate - Known sometimes as distillate. A heavier hydrocarbon occur-
ring usually in gas reservoirs of great depth and high pressure.
Conversion factors -
Crude oil
5,800,000 Btu per barrel
Residual fuel oil
6,287,400 Btu per barrel
Petroleum coke
6,024,000 Btu per barrel
Bituminous coal
26,200,000 Btu per ton
4.51 Barrels per ton
Coke
24,800,000 Btu per ton
4.27 Barrels per ton
Kilowatt hour (kwh)
3,412 Btu per kwh (theoretical)
9,895 Btu per kwh (at 34.5% efficiency)
.0017 Barrels per kwh
Oil shale
5,800,000 Btu per barrel of recovered oil
Wood
20,960,000 Btu per cord
3.61 Barrels per cord
Diesel oil - Fuel used for internal combustion in diesel engines; usually
that fraction which distills after kerosine.
Enriched uranium - Uranium in which the amount of the fissionable isotope,
uranium-235, has been increased above the 0.7 percent contained in natural
uranium.
61
Fission - The splitting of an atomic nucleus by a subatomic particle
(free neutron) to produce a large amount of energy.
Fossil fuel - Any naturally-occurring fuel of an organic nature, such as
coal, crude oil, and natural gas.
Fuel cell - A device in which fuel and oxygen are combined to produce
chemical energy that is converted directly into electricity.
Fuel oil - Relatively heavy refined oil used as fuel for producing heat
or power.
Fusion - The formation of a heavier nucleus from two lighter ones with
the attendant release of a large amount of energy.
Geothermal energy - The heat energy available in the earth's subsurface.
Gross national product (GNP) - The total market value of the goods and
services produced by the nation before the deduction of depreciation
charges and other allowances for capital consumption; a widely used
measure of economic activity.
High-sulfur coal - Generally, coal that contains more than one percent
sulfur by weight.
Hydroelectric plant - An electric power plant in which the turbine-generators
are driven by falling water.
Jet fuel - Fuel meeting requirements for use in jet engines and aircraft
turbine engines, generally of kerosine or naphtha base components.
Kilowatt - One thousand watts.
Kilowatt hour - The amount of energy equal to one kilowatt in one hour;
equivalent to 3,412 Btu's.
Liquefied natural gas (LNG) - Natural gas that has been changed into a
liquid by cooling to about -260° F., at which point it occupies about 1/600
of its gaseous volume at normal atmospheric pressure.
Liquefied petroleum gas (LPG) - Propane, butane, or mixture thereof; kept
in the liquid state by pressure or refrigeration to facilitate handling.
Low-sulfur coal and oil - Generally, coal or oil that contains one percent
or less of sulfur by weight.
Magnetohydrodynamic (MHD) generator - One that produces electricity by
passing hot plasma through a magnetic field.
Mcf. - One thousand cubic feet.
Megawatt (MW) - One thousand kilowatts.
62
Megawatt-hours (MWh) - One thousand kilowatt-hours.
Naphtha - Liquid hydrocarbon fractions recovered by the distillation of
crude petroleum.
Natural gas - Naturally-occurring mixtures of hydrocarbon gases and
vapors, the more important of which are methane, ethane, propane, butane,
pentane, and hexane.
Nuclear electric powerplant - One in which heat for raising steam is
provided by fission rather than combustion of fossil fuels.
Nuclear energy - Energy produced largely in the form of heat during
nuclear reactions, which, with conventional generating equipment can be
transformed into electric energy.
Nuclear (atomic) fuel - Material containing fissionable materials of
such composition and enrichment that when placed in a nuclear reactor
will support a self-sustaining fission chain reaction and produce heat
in a controlled manner for process use.
Oil shale - A sedimentary rock containing solid organic matter (kerogen)
that yields substantial amounts of oil when heated to high temperatures.
Petroleum - A naturally-occurring material (gaseous, liquid, or solid)
composed mainly of chemical compounds of carbon and hydrogen.
Quadrillion Btu - 10¹⁵ (thousand million million) Btu's; equal to the
heat value of 965 billion cubic feet of gas, 175 million barrels of oil,
or 38 million tons of coal.
Reserves - The amount of a mineral expected to be recovered by present-day
techniques and under present economic conditions.
Residual fuel oil - Topped crude petroleum or viscous residuum obtained
in refinery operation. (Am. Petroleum Inst. Glossary).
Resources - The estimated total quantity of a mineral in the ground;
includes prospective undiscovered reserves.
Secondary recovery - Any method of augmenting the natural energy of a
petroleum reservoir to increase production.
Short ton - A unit of weight that equals 20 short hundredweights or 2,000
avoirdupois pounds. Used chiefly in the United States, in Canada, and in
the Republic of South Africa. (USBM, Dictionary of mining, mineral, and
related terms).
Solar energy - Radiation energy from the sun falling upon the earth's
surface.
Steam-electric plant - A plant in which the prime movers (turbines)
connected to the generators are driven by steam.
63
Subbituminous coal - Coal of rank intermediate between lignite and
bituminous; weathering and nonagglomerating coal having calorific values
in the range 8,300 = 13,000 Btu, calculated on a moist, mineral-matter-free
basis. (American Society for Testing Materials, D338-38).
Synthetic liquid fuel - Liquid hydrocarbon material produced from solid
carbonaceous material, such as oil shale.
Synthetic natural gas (SNG) - Gas produced from conversion of some solid
carbonaceous material, such as coal.
Tar sand - Any sedimentary rock that contains bitumen or other heavy
petroleum material that cannot be recovered by conventional petroleum
recovery methods.
Thermal plant - A generating plant which uses heat to produce electricity.
Such plants may burn coal, gas, oil, or use nuclear energy to produce
thermal energy.
Watt - The rate of energy transfer equivalent to one ampere under a
pressure of one volt at unity power factor.
64
SELECTED BIBLIOGRAPHY
Air Transport Association of America, 1972, United States airline
industry turbine fuel forecast 1972-1981; Air Transp. Assoc.
of Amer., Washington, D. C., P. 30-39.
American Gas Association, et al, 1969, Reserves of crude oil, natural
gas liquids and natural gas in the United States and Canada and
United States productive capacity: Amer. Gas Assoc., Arlington,
Va., p. 33-36.
American Gas Association, 1971, The natural gas supply problem: Amer.
Gas Assoc., Arlington, Va., 13 P.
American Petroleum Institute, 1970, The energy supply problem: Comm.
on Public Affairs, Am. Petroleum Inst., Washington, D. C., 24 P.
1971, Petroleum facts and figures: Am. Petroleum Inst.
Washington, D. C., 604 P.
1972, One answer to the energy crisis: Am. Petroleum Inst.,
Washington, D. C., 42 P.
Anderson, Wayne, 1972, quoted in "Are we nearing the bottom of the
barrel": Automotive Indust., August 1972, p. 31.
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65
1972, Summary report, ten-year forecast on gas utilities' require-
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1971, The national power survey, guidelines for growth of the
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1972, National gas supply and demand, Bureau of Natural Gas,
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66
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68
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69
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