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News stories continued. PHEV’s to the Rescue This projection resulted in our having to wait until
the mid 2050’s to cut oil consumption to around 3 million barrels per
day (mb/d). The same projections showed that without PHEV’s,
gasoline consumption would grow from around 8.5 (mb/d) to over 11 mb/d
by 2040.
GM recently announced its plan to produce 20,000 PHEV’s (the
Volt) in 2010 and increasing production to 100,000 PHEV’s in 2011. This is an aggressive plan and can have a
significant impact on our oil consumption, depending on how quickly the
market accepts the PHEV. We made two new projections based on 100,000 units
in 2011.
The projections assumed there would be a continuing
need for gasoline powered, non-electric vehicles amounting to 20% of
annual sales. This assumption kicked-in in 2035 for scenario “A” and
2026 for scenario “B”. Under scenario “A” it is in 2041 that PHEV’s reach
75% of all cars on the road and oil consumption for gasoline is cut to
3.6 mb/d. Under scenario “B” it is in 2036 that PHEV’s reach
75% of all cars on the road and oil consumption for gasoline is cut to
3.5 mb/d. The amounts of oil could be reduced
slightly by using ethanol. Current corn ethanol production is around 0.5 mb/d
and the projected maximum is around 0.8 mb/d (if production is limited
to 1/3 the size of the corn crop). The two wild cards in projecting ethanol usage is
whether cellulosic ethanol will ever become viable and the extent to
which we might be able to import sugarcane ethanol from Brazil. At the most, cellulosic ethanol production could be
around 1.2 mb/d assuming we use all 30 million acres of unused farm land
enrolled in the Conservation Reserve to grow switchgrass and other
cellulosic materials. These projections suggest we should be aggressively
developing PHEV’s. Cutting our usage of oil to 3 mb/day would have a
profound effect on oil imports and also help to put downward pressure on
the price of gasoline. While it might take 20 years to reach this goal it
should be a part of our energy strategy. If it’s possible to retrofit existing vehicles so
they become PHEV’s, it could advance the point at which gasoline
consumption is reduced to 3 mb/d. A123Systems has developed a retrofit
package for Prius’s, and if it proves successful, could lead to the
development of retrofit packages for other models. A huge hurdle to increasing sales of PHEV’s is the
high first cost of PHEV’s caused by the high cost of Li-ion batteries. TSAugust proposed a leasing program for Lithium-ion
batteries three years ago. Utilities would benefit from off peak
recharging of batteries and have the capital available to initiate a
leasing program. Whether this would help accelerate the sale of PHEV’s
or whether some form of government tax rebates could help is worth
investigating. PHEV’s combined with drilling for oil in the Outer
Continental Shelf and development of oil shale will go a long way toward
achieving a substantial degree of independence from foreign oil. Note: It is assumed that the number of vehicles on
the road and sold each year, increases in proportion with the increase
in population. TSAugust July 13, 2008
Make a tax exempt contribution to TSAugust and
receive either print copies of the projections or disk containing the
projections: For a $25 dollar contribution we will mail you a
printed copy of projections
“A” and “B”. For a $100 contribution we will mail you a
disk containing the
spreadsheets for projections “A” and “B”. Mail your check made payable to TSAugust, with the
note “FOR PROJECTIONS” to; 1760Reston Parkway, suite 515, Reston, VA
20190.
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Second news story, continued. |
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Renewables and Electricity |
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solutions that aren’t capable of solving much of
anything; at least with our current technology.
Wind receives an inordinate amount of attention, possibly because the 450 foot high wind towers have caught
the attention of the public. First there was the Cape Wind proposal
objected to by Senator Kennedy and then there are the many local
organizations that are fighting wind turbines for a variety of reasons;
noise, appearance and environmental. The sole reason for promoting wind energy is global
warming. Coal is the cheapest way to produce huge amounts of
electricity, and we have a 200 year supply of coal. We are “electricity
independent”. Wind is an intermittent source of electricity that
can’t be used for base load.
By any objective analysis it’s more expensive than electricity produced
by coal. It requires back-up (which adds to the cost in an objective
analysis) so that replacement electricity is quickly available when the
wind stops blowing. It requires new, dedicated transmission lines (often
not included in the evaluation of cost) when wind turbines are installed
in remote locations. (See 1) And it is an ineffective way to generate
electricity. Wind turbines only work when the wind blows and the
wind blows at an appropriate speed only thirty percent of the time. For
this reason, a wind turbine rated 1.5 MW (about the size of recent
average installations) only has the generating capability of a 0.5 MW
nuclear plant. (2) It would take 200,000 wind turbines rated 1.6 MW to
generate 20% of our electricity. The most wind turbines ever installed in one year in
the United States was 1,533: And the industry was working at capacity. Solar only produces electricity when the sun shines.
This limits the usefulness of solar as a base load source of
electricity. Concentrating solar (where sunlight is concentrated using
mirrors) has some potential in the Southwest. Photovoltaic solar also
can be useful in the Southwest, but is extremely expensive and lacks’
consistency in Northern states. Geothermal sources are found in the Western U.S.
There are futuristic geothermal sources (hot dry rocks, for example,
where wells are drilled over 10,000 feet to reach rocks at elevated
temperatures, with water injected into the well to create steam) but
these can best be described as experimental. These alternatives lack sufficient scale to have any
meaningful effect on the generation of electricity.
These are feel-good non-solutions touted by people who have an agenda other than resolving our need for increased electricity.
TSAugust July 6, 2008
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Copyright © 2002 - 2008 TSAugust |
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