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Routledge. - Energy economics: markets, history and policy

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Routledge. Energy economics: markets, history and policy
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First published 2016
by Routledge
2 Park Square, Milton Park, Abingdon, Oxon OX14 4RN

and by Routledge
711 Third Avenue, New York, NY 10017

Routledge is an imprint of the Taylor & Francis Group, an informa business

2016 Roy L. Nersesian

The right of Roy L. Nersesian to be identified as author of this work has been asserted in accordance with the Copyright, Designs and Patents Act 1988.

All rights reserved. No part of this book may be reprinted or reproduced or utilised in any form or by any electronic, mechanical, or other means, now known or hereafter invented, including photocopying and recording, or in any information storage or retrieval system, without permission in writing from the publishers.

Trademark notice: Product or corporate names may be trademarks or registered trademarks, and are used only for identification and explanation without intent to infringe.

British Library Cataloguing in Publication Data
A catalogue record for this book is available from the British Library

Library of Congress Cataloging in Publication Data
Catalog record for this book has been requested

ISBN: 978-1-138-85837-4 (hbk)
ISBN: 978-1-315-71806-4 (ebk)

Typeset in Bembo
by Book Now Ltd, London

Please visit the Companion Website at wwwroutledgecomcwnersesian for the - photo 1

Please visit the Companion Website at www.routledge.com/cw/nersesian for the following additional sections.

Chapter 2

Early History of Electricity

Generating Electricity Commercially

When Demand Exceeds Supply

Real Lesson of California

Chapter 3

The Role of Charcoal and Wood Pellets

Biomass in Home Heating

Two Processes for Making Ethanol

Proposed Solutions

Traditional Means of Making Cellulosic Ethanol

Chapter 4

First Energy Crisis

Origin and History of Coal

Coal and the Industrial Revolution

Rise and Fall of King Coal

Chapter 5

History of Lighting

History of Oil

Enter John D. Rockefeller

Enter Marcus Samuel

Enter British Petroleum

Emergence of Oil as a Strategically Vital Commodity

Opening Up the Middle East

Chapter 6

Earth as an Oil Manufacturer

Formation of Oil

Biotic Theory of Origin

Abiotic Theory of Origin

Oil Exploration and Production

Drilling Rights

Drilling Operations

Offshore Exploration Rigs

Offshore Production Rigs

Decision to Drill a Production Well

Getting Oil to a Refinery

Refining

Chapter 7

History of Coal Gas

History of Natural Gas

Battle over Lighting

Long Distance Transmission

Federal Regulation

War Years

Last Stop before Total Regulation

Chapter 8

Nuclear Incidents and Accidents

Three Mile Island Incident

Chernobyl Nuclear Accident

Fukushima Daiichi Accident

Disposal of Spent Fuel

Birth of the Environmental Movement

Saga of the Hoover and Glen Canyon Dams

Saga of Aswan High Dam

Chapter 9

Solar Power

Historical Development of Thermal Solar Power

Thermal Solar Energy for Heating Water

Thermal Solar Energy for Generating Electricity

Wind Power

Historical Development

Government Involvement in Developing Wind Turbines

Chapter 10

Hydrogen Economy

Historical Background

Hydrogen Today

Ocean Power

Tidal Power

Wave Power

Chapter 11

Environment

US Clean Air Acts

Cross-State Air Pollution Rule

Climate Change Conferences

Sulfur in Diesel Fuel

Efficiency and Conservation

Energy Star Program

Light Emitting Diodes and Compact Fluorescent Light Bulbs

US Green Building Council/LEED

Sustainable Energy

Energy Returned on Energy Invested (EROEI)

Online Figures

Figure CW7.1 US Residential Consumers, Cost of Natural Gas

Figure CW7.2 Consumption versus Waste of Natural Gas

Figure CW9.1 Solar Thermal Capacity

Figure CW9.2 Historical Development Solar Thermal Electricity Capacity

Figure CW11.1 EROEI Values for Various Types of Energy

Figure CW11.2 Rise of Energy Input to Sustain Growing Energy Output

Online Tables

Table CW6.1 Historical Development of Refining Processes

Table CW8.1 Examples of Radioactivity in Bq

Table CW8.2 Likely Effects of Whole-body Radiation Doses

Contents
7
Natural Gas

This chapter covers the history of natural gas from its beginning as a manufactured gas made from coal. It is the most regulated of fossil fuels because only one natural gas pipeline can be connected to a house, just as a house can only be connected to one cable for electricity. Like electricity, deregulation/liberalization has changed the nature of regulation considerably in North America and Europe to allow market forces to influence price, but the mechanism by which market forces affect price is still well regulated. How natural gas travels from a resource in the earth to a point of consumption will be described along with growth in the international trade in natural gas and the development of nonconventional sources of methane, including fracking and coal bed methane. The future of natural gas as a replacement for coal and as a motor vehicle fuel will also be covered.

Natural gas is made up of primarily methane, a carbon atom surrounded by four hydrogen atoms. It is the cleanest burning fossil fuel with only water and carbon dioxide as products of combustion. Carbon monoxide emissions are caused by insufficient oxygen to support combustion. Natural gas, with no nitrogen within its chemical structure, releases far less nitrous oxides than oil and coal. Formation of nitrous oxides by oxidization of nitrogen in air during combustion is a function of boiler and burner tip design, not a property of the fuel. Burning natural gas produces virtually no sulfur oxides, and no particulate and metallic emissions.

Its greater ratio of hydrogen to carbon atoms releases less carbon dioxide per unit of energy than coal and oil. Moreover, cogeneration plants fueled by natural gas have a higher thermal efficiency than coal and oil, further lowering carbon dioxide emissions for the same output of electricity.

Reservoir recovery of natural gas fields is about double (7080 percent) that of oil (3040 percent), which lessens the need to continually find new gas fields. Unlike oil, natural gas requires relatively little processing to become pipeline-quality. On the minus side, natural gas has always been a logistics challenge. In the beginning decades of the oil age, much of the natural gas found with crude oil (associated natural gas) was flared (burned) or vented to the atmosphere. Discovery of a natural gas reservoir was treated in the same light as drilling a dry hole! The primitive state of pipeline technology and reliance on reservoir pressure as a motive force to move natural gas through a pipeline restricted natural gas to local markets. Large volumes of natural gas associated with oil production were available with developing oil discoveries in the US Southwest. With natural gas stranded with no nearby markets and no means to get it to distant markets, vast quantities of associated natural gas from oil production were vented to the atmosphere. This waste of a free energy source in the Southwest and the waning of natural gas fields in Appalachia provided an economic impetus to improve pipeline technology to connect suppliers with consumers over long distances in a safe, reliable, and cost-effective manner.

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