120214 2148 natural gas presentation (first draft version)
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TRANSCRIPT
Thursday February 283:00 – 4:00 PM
Networking event immediately after
The Johnson Energy Club is proud to welcome Joseph Degenfelder (Chem Eng ‘60) to campus for a panel discussion on the latest Green Technologies in Hydraulic Fracturing.
Joining Mr. Degenfelder will be Keith Hall JD, Director of the Louisiana Mineral Law Institute, and Arthur McGarr, Geophysicist Earthquake Science Center, U.S. Geological Service
BE INFORMED! The panel will discuss cutting edge technology in hydraulic fracturing and bio fuels with a Q+A session to follow.
Hydraulic Fracturing and Green Technologiesfeaturing Joseph Degenfelder , CEO of Atlantic Green Fuels
Next_Generation Biorefineries
Joseph R. Degenfelder
September 15, 2011
Presented by
Lessons From the Plastics IndustryCapital Effectiveness
• PVC commercialized 1937 by B.F. Goodrich Inc.• By 1961~ 25 Producers with 50+ Plants• Price $0.45/lb in 1950, $0.10/lb in 1970, $0.45/lb today
• Polypropylene (PP) commercialized 1958 by Hercules, Inc• By 1970 there were 12 producers with 20+ Plants• Price $0.40/lb in1961, $0.10/lb in 1970, $0.45/lb Today
WHY ?
Why?
Great increase in capital effectiveness
1. Improved catalyst a. Raised PVC output/plant 200-300%b. PP yield 2 mKg/gm to 450 mKg/gm
2. Depreciated equipment with minor mods
Improvement gained fully only by reactive companies with engineered processes to match the catalyst
Standard Oil Markets 1886Petro oil replaced whale oil
(15 years after first Drake oil well)
Transition Coal to Oil•First Oil-burning destroyer USS Paulding commissioned September 1910
•Oil-burning USS Nevada battleship commissioned 1911 with triple-16” gun turrets
•Half-century after opening of Drake oil well
•Germany hydroprocessed pulverized coal 1941-1945
•Hybrid electric USS Makin Island Oct 2009
•“Great Green Fleet” announced by US Navy 2011
•A century after first oil-burning ships
Lessons From the Petro-Refining Industry “Bottom-of-Barrel”
• John D. Rockefeller buys out Clark Bothers – 1864
• Starts expansion of Standard Oil by
building second refinery in Cleveland – 1865
• Getty Delaware City refinery for sour crudesIncludes new fluid coking process units – 1957
• First central computerized control at Imperial Oil's Sarnia refinery – 1974
• It took a century for petrorefining to fully utilize feedstock
US Energy and Emissions
Year
1961
1973
1983
1993
2010
Total Quad BTU’S
46
75
73
86
98
Emissions Billion Tons Carbon
50
79
74
75
??
Why decrease?
Why energy decrease for a decade?
1. Price of oil increased order-of-magnitude
2. Largest energy savers process industriesa. Petrorefining ~40% of industry savingsb. Pulp/paper ~30% of industry savings
William Jennings Bryan “Cross of Gold”
campaign speech Status 1896 vs. 1954 vs. 2012
If farms thrive, cities will thrive (40% lived on farms 1896)
21st century advantage similar to19th century advantage; i.e.
The fertile heartland of U.S. to grow food and fuel crops.
Corn ethanol plants boost farm income.
VEETC tax credit expires December 31, 2012
Overview for Biofuels progress
Startup cellulosic ethanol companies will fail
Corn ethanol companies will add-on cellulosic ethanol
RFS #2 level of 15 billion gals/year met ~10%
Can’t compete with fracking
When first hydraulic fracture performed?
Klepper #1 Hugoton gas field Kanasas1947 – 2500 ft deep
Little frack activity next three decades
George Mitchell Fracking Pioneer
•1980 tax break starts unconventional gas drilling• •Mitchell Energy's first 35 wells lose money• •Sold to Devon Energy in 2002• •George Mitchell Statement February 2013•“It’s appropriate that states lead in regulating drilling activities"
Key Issues for Johnson Energy Club Feb 28, 2013
•Earthquake causation by fracking or water injection
•Use eco-friendly chemicals in slickwater fracturing
•Recycle frack water with updated chemistry
• Conversion/use of methane for/as liquid fuels
Strategic issues presented in DC 2011
•January - House Science, Space & Technology Comm•Rand report re Fischer Tropsch process is foolish•HEFA jet fuels from camelia oil low-volume fantasy• •November - senior US Navy execs at Pentagon•Repeat January points to SST committee•Hydroprocessed cellulosic fuels never economical•"Great Green Fleet" by 2016 is impossible
Assumptions for upper-bound seismic moment•The formation is seismogenic hydraulic communication between injection and faults•Rock mass is fully saturated before water injection•Faults pre-stressed close failure stress•Response follows Gutenberg-Richter distribution
Special paper for Johnson Energy Club on following slides
Art McGarr, US Geological Service
http://earthquake.usgs.gov/regional/nca/directory/?id=139
Activities involving injection that induce earthquakes
•Wastewater disposal - general
•Injection into hot rock - Enhanced Geothermal Systems
•Hydraulic fracturing of oil/gas reservoirs
•Scientific studies of earthquakes
Table. Maximum seismic moments M0(max) and total injected volumes V Event M0(max), Nm V, m3 Type M Location
KTB1 1.43e11 200 scientific 1.4 eastern Bavaria, Germany
BUK 2 3.2e12 4.17e3 frak 2.3 Bowland shale, UK
GAR3 1.78e13 8.91e3 frak 2.8 Garvin County, OK
STZ4 2.51e13 3.98e4 egs 2.9 Soultz, Frnce
BAS4 1.41e14 1.15e4 egs 3.4 Basel, Switzerland
ASH5,6 2.82e14 6.17e4 wd 3.6 Ashtabula, OH
CBN4 3.98e14 2.0e4 egs 3.7 Cooper Basin, Australia
YOH7 8.3e14 8.34e4 wd 4.0 Youngstown, OH
ASH8 8.0e14 3.4e5 wd 3.9 Ashtabula, OH
PBN9 3.16e15 3.287e6 wd 4.3 Paradox Valley, CO
RAT110 4.5e15 3.87e5 wd 4.4 Raton Basin, CO
GAK11 1.2e16 6.29e5 wd 4.7 Guy, AK
POH12 2.0e16 1.19e6 wd 4.8 Painesville, OH
RMA13 2.1e16 6.25e5 wd 4.85 Denver, CO
RAT214 3.6e16 2.92e6 wd 5.0 Raton Basin, NM
RAT314 1.0e17 4.95e6 wd 5.3 Raton Basin, CO
POK15 4.0e17 1.20e7 wd 5.7 Prague, OK
Deep injection of wastewater Colorado
Raton Basin includes coal-bed methane
Earthquake sequence August 2001 – present
Deepwater injection Prague, OK
445 480
979
0
200
400
600
800
1,000
1,200
1,400
1,600
ConventionalGas
Shale Gas -Published
Coal
Max
75th
Median
25th
Min
Grams CO2 equivalent per Kilowatt hour (gCO2e/kWh)
Comparison of GHG emissions for Power Generation
Shale gas in PG … ~40-50% less CO2
Wide range of results from various studies
• Assumptions drive variation in Shale gas carbon numbers
• Power plant efficiency (41-51%)
• GWP (global warming potentials- 25 year or 100 year)
• Well productivity (Bcf per well)
• life-cycle stages considered• Methane loss stages
considered
Sources: NGCC conventional gas estimates from O’Donoughue et al. 20117 published shale gas LCA studies: Burnham et al 2011 Argonne National Lab; Hultman et al 2011 University of Maryland; Relies heavily on EPA Subpart W; Howarth 2011, Jiang et al. 2011, NETL, Tyndall Centre, NYSDEC
Shale avg. 8% over
conventional
Shale avg. 40-50% under
coal generation
Considerations
GE Energy: GE © 2012 – All Rights Reserved
ATOMIC BIOCIDE - DESCRIPTION
•ACTIVE CHEMICAL IS 20 ORDERS MAGNITUDE LOWER THAN COMPETITIVE BIOCIDES
•POLYMERIC BASE – INSOLUBLE IN WATER & INSOLUBLE IN SOLVENTS AND OIL
•THERMALLY STABLE – DECOMPOSES AT 360 C
•SAFE NON - TOXIC CHEMISTRY APPROVED FOR DISINFECTION OF POTABLE WATER
•RESIDUE DISPOSABLE AS NON – HAZARDOUS SOLID
ATOMIC BIOCIDE FUNCTIONING
• KILLS BACTERIA ON CONTACT
• STABLE IN A WIDE RANGE OF pH ENVIRONMENTS
• HALOGEN COMPONENT STABLE I; < 1 ppb RELEASED TO WATER • COST – EFFECTIVE VS COMPLEX ORGANICS
• COMPONENT OF FRACK-WATER RECYCLING SYSTEM
FDA OLIGOMER APPLICATION IN FRACKING
• EASILY EMULSIFIED IN MOST FLUID FORMULATIONS
• HIGH CARRYING SUSPENSION FOR BOTH PRODUCED AND INTRODUCED SOLIDS
• RECOVERABLE BY FLOATATION
• STABLE AT DOWN – HOLE TEMPERATURES
• EXTENSIVE CHARACTERIZATION AT LEADING RESEARCH UNIVERSITY
FDA OLIGOMER FOR HYDRAULIC FRACTURING SYSTEMS
• PURE HYDROCARBON POLYMER –NO TOXINS OR AROMATIC
• FDA FEEDSTOCK - FOOD GRADE APPROVAL APPLIED FOR
• RESISTS OXIDATION - NO SLUDGE FORMATION
• SLIGHT MILD ODOR – HIGH FLASH POINT
• REPLACES PETROLEUM DISTILLATES