Availability of World Energy Resources Availability of World Energy Resources DClon ENERGY INFORMATIONAL SERVICES McGraw-Hili, Inc. Energy Informational Services McGraw-Hill, Inc. 1221 Avenue ofthe Americas New York, N.Y. 10020 ©D CIon 1975, 1980 Softcoverreprintofthehardcover1stedition 1980 Library ofCongress Catalog Card Number 81-80984 ISBN-13: 978-94-009-8729-6 e-ISBN-13: 978-94-009-8727-2 DOl: 10.1007/978-94-009-8727-2 All rights reserved. No part ofthis publication may bereproduced in a retrievalsystem, ortransmitted in any form or byanymeans mechanical, photocopying, recordingorotherwise, without the permission ofthe publishers. Contents List ofTables List ofFigures INTRODUCTION RESOURCE DEFINITIONS AND MEASUREMENT Defmitions Resource Bases Resources and Reserves Measurement 2 RESOURCES 25 3 RESOURCES TO RESERVES 41 4 PROVED RESERVES 60 5 PRODUCTION 91 6 CONVERSION 164 7 TRANSPORTATION AND STORAGE 196 8 DEMAND 210 9 SUPPLYAND DEMAND 256 10 CONCLUSIONS 296 Appendices I. List ofReferences 314 II. Abbreviations 335 III. Conversion factors 336 INDEX 338 Moredetailedchapterbreakdownscanbeobtainedfrom boldentriesin the index LISTOFTABLES Page 1. Comparisonofcrudeoilreservesbymassand energycontent 12 2. EstimateofCanada'sultimaterecoverable potentialofcrudeoil 21 3. Worldprobableannualgeneratingcapacityfromhydraulicresources 28 4. Estimatedprobablehydro-electricdevelopment, 1976-2020,(1978) 28 5. World hydroresources(1974) 29 6. Worldresourcesofsolidfossil fuels 30 7. Worldestimatedultimatecrudeoilrecovery,(1.1.1974) 32 8. World crudeoilresources, 1.1.1974, 1.1.1976, 1.1.1979 34 9. Worlduraniumresources, 1.1.1976 39 10. World reservesandresourcesofthorium, 1974 40 11. Uraniumreserves- selecteddevelopingcountries, 1977 44 12. Comparableprovedcoalreserves- anexercise 60 13. Worldenergyresources 66 14. Energycontentofprovedreserves(1974) 67 15. Geologicalcoalresourcesandreserves 69 16. World crudeoilprovedreserves, end 1978 70 17. Developmentofworldprovedreservesofcrudeoil, 1960-1979 73 18. World provedandprospectivereservesofnaturalgasliquids 74 19. World provedreservesofnaturalgas 75 20. Middle Eastprovedreservesofnaturalgas 76 21. EstimatedpotentialsupplyofnaturalgaswithinUSA 77 22. Pakistan'sprovedreservesofnaturalgasandtheirenergycontent 79 23. Estimatedoffshorereservesofnaturalgas- N.W. Europe 81 24. Ultimatelyrecoverable naturalgasreserves- UK.ContinentalShelf 82 25. Uraniumresourcesfortheworld outsideCommunistareas, 1.1.1977 85 26. EstimateofCanada'srecoverablealldprognosticatedUresources 87 27. Hydraulicenergy 89 28. Energyproductionbymajorregions 92 29. Worldcoalproduction, 1925,1965, 1977 93 30. Possiblecoal-basedsyntheticfuelproduction,USA, 1985(1974) 96 31. UScoalproductionand exports, 1977, 1978, 1979, 1983 97 32. Solidfuelproductionanduse,SouthMrica, 1972-2000,(1974) 101 33. GiantoilfieldsofCalifornia 112 34. Somepossibleworld crudeoilproductioncapacities, 1975-2025 116 35. fvliddle East - anexerciseinpossiblefuture oil production- the assumptions, 1970-2020 123 36. MiddleEast - anexerciseinpossiblefuture oilproduction- by countries, 1975-2025 125 37. MiddleEast - arevised exerciseinfuture oil production, 1975-2025 127 38. MiddleEastOPEC& otherOPEC,production& provedreserves 128 39. Estimatedcommercialproductionofnaturalgas, 1974& 1978 129 40. Primaryenergyproduction,USSR, 1940-1973 130 41. RegionseastofUrals,shareofUSSRfuelresourceproduction 131 42. Supportingactivitiesto USAoil&gasproduction, 1973-1985 132 43. Canadiannaturalgasproduction,consumption& exports 132 44. MajorMiddleEast naturalgasavailabilities(1977) 135 45. NorthSeaestimatedgas production(1976) 147 46. Schemesfor naturalgasimportsto N.W. Europe 153 47. Uraniumproduction,outsideUSSR, E. Europe& China, 1972-1985 160 48. Projecteduraniumproductioncapabilities,(WOCA), 1980-2025 162 49. Mainoil productconsumption, 1970&1978 170 50. Valueofhydrogenasalternative tofossil fuels 171 51. Some estLrnatedenergyproductioncosts(1979) 183 52. Comparativecapital&generatingcostsofUSpowerplants 188 53. Fuelcycleeconomicparametersandsensitivityindices 189 54. Uraniumdemandsensitivities,USA 192 55. Growthofslurrypipelines 201 56. Oilandgaspipelines 202 57. Characteristicsofvariousgenerating&storagesystems 208 58. Energyconsumptionbygroupsofcountries, 1950, 1960, 1970 215 59. Summaryofalternativeenergyresourceconsumption, USA, 1985(1974) 224 60. Alternativepowerstationcostings,Romania,(1974) 225 61. Globalenergydemandscenarios, 1972-2020,(1977& 1978) 226 62. USA- energyconsumption, 1973-1990(1976) 228 63. USA- energyproduction, 1973-1990(1976) 228 64. Someleadtimesfor developmentofknownenergyresources(1977) 230 65. Estimatedworlduraniumrequirements&powercapacities,(1975) 232 66. Estimateofinstallednuclearcapacitybyarea, 1980,1990(1976&1979) 234 67. Effectofreactortypepatternonuraniumdemandfor uranium 235 68. Estimatedenrichmentplantcapacity& uraniumdemand,(1979) 236 69. EECEnergyreserves,(1979) 249 70. Longtermexerciseinworldenergyconsumption, 1950-2075,(Frisch)254 71. Oilexporterssurpluses, 1973-1980 259 72. OPECoilproductionandexportrevenues, 1972-1978 261 73. Worldcurrentaccountbalances, 1973-1978 262 74. UKenergybalancein2000 268 75. USSR- majorfuelsupplies 279 76. USSR- visible tradebalances 280 77. Comeconoilbalances, 1976& 1980 280 78. EuropeanComeconcountries- energybalance, 1980 281 79. EuropeanComeconcountries- energyconsumptionforecast, 2000 281 80. USA- importsofcrudeoilbycountries, 1971-1976 292 81. USA- importsofpetroleumenergyproducts, 1971-1976 293 82. USA- someestimatesoffuture oilimports 294 83. Forecastsofrole ofnuclearenergyinworld excludingChina(1974) 295 84. EECenergyforecasts ofenergysourcesupply(1974) 296 85. Ninetylessdevelopedcountriesin 1976,energy&oilimports 297 86. Energyprospectsofthe EEC 305 87. World EnergySupply& Demand, 1950-2050,(1977 & 1979) 310 LISTOFFIGURES Page 1. Resourcesconcepts(DCI) 3 2. Resourcesdeftnitions(USA) 4 3. Resourcesclassillcationcategories(UN) 5 4. Scheme ofoilresourcesclassillcation(USSR) 6 5. Coalresourcesconcept(DCI) 16 6. Uraniumdepositsandmajoroccurrences- AfricaandMiddleEast 43 7. Uranium-depositsandmajoroccurrences- latinAmerica 43 8. World EnergyResources-linearscale 64 9. World EnergyResources-logarithmicscale 65 10. World productionand consumptionof primaryenergysources, 1920 91 11. USACoalproduction, 1935-1970 94 12. World crudeoilproduction; 1930-1978 108 13. Annualproductionsofcrudeoil, NorthAmerica, 1920-1978 109 14. Annualcrudeoilproductions&footage drilled, California 111 15. Somepossible crudeoilavailabilities, 1970-2020 118 16. World, 1970-2020,oneprobablecrudeoilavailabilityforecast, (1 November 1977,DCI) 120 17. Mexico- oilandgasdevelopments 121 18. Mexico- crudeoilproductionandexports, 1970-2000,some estimates 121 19. Middle East- majorcountryoilproductionprojections, 1966-2020 126 20. NorthSea- estimatedoilproduction(1976) 139 21. HowDutchgasisused(1976) 150 2'2. NorthSeaoilandgasdevelopments 152 23. Annualworldproductionofuraniumoxide, 1945-1975 158 24. Thenuclearfuel cycle 191 25. Competitivetransmissioncostsofgas,naphtha, LNG, electricity 205 26. WesternEurope- some economicand energygrowthpossibilities 249 27. Developingcountries- someeconomicgrowthpossibilities 251 28. Japan- someeconomicgrowthpossibilities 270 29. USSR- mapofprospectiveoilandgasareas 274 30. China- exerciseinfuture oilproduction, 1970-2070 287 31. Worldenergysupply/demand, 1950-2050,(1977&1979) 307 32. World energysupplybysources, 1950-2050 311 Introduction Energy will be a most important topic in the 1980s. The speed with which a dozen or more trends will develop will be critical. Most of these trends are interdependentandinteracting,andinclude: - the degree of constraint on oil and gas supplies exercised by the producers, whether inside or outside the OPEC, as they each attempt to matchproduc tion to their own energy needs and the funding of their own economic growthfrom exports, - the depth ofthe appreciationbyindustrializedcountriesthatenergysupplies will be tight and fossil fuels will be very expensive at least until the end of the century, - the actionstakenbythose countriesto ameliorate thissituation, inexplorationfor new oiland gassources, inexploitationeffortfornewcoalsupplies, in acceptance ofthe needfor expansionofnuclearenergysupplies, - the balancingofenergy supply and demandin centrally-plannedeconomies, - the rate ofdevelopmentwithin developingcountries,includingChina, - the developmentand adoptionofunconventionalenergy sources, - the adaptationoftheworld fmancialsystemto new situations. These examples highlight some ofthe continuing problems in the energy field. These problems will be discussed in allsortsofmeetingsofallsortsofpeoplein all sorts of places and through all forms of the communication media. Other trends will materialize and take the centre ofthe stage, often only for a short time. There are, however, basic facts and principles to which all trends are sub ject. Therefore, rather than pick only some or all ofthe trends mentioned and treat them in turn, I have chosen to retain the format of the first edition of Availability ofWorld Energy Resources for this second edition. The horizontal treatment ofall the energy sources, from resource base through to the supply/ demand balance, stresses the basic principle ofthe interdependence ofall ener gies and all countries. Therefore into that format have beenmelded thevertical treatment ofcoal, nuclear energy and the natural gas ofNorth-West Europe of the first supplement to the original edition, the suggestion in the second sup plement which arose from the reports which flooded 1977, together with the facts and developments which 1978and 1979broughtalong. Hence I have again attempted to provide a thought-provokingreferencebookonenergywithwhich tobeequippedforthe 1980s. The gap of ignorance between the operators in the energy industries and others, whether in other industries, inpoliticaloracademiclifeorelsewherehas narrowed only slightly between 1975 and 1980. Therefore themainaim ofthis secondedition,as ofthe first edition,is to 'assist the understanding of the numbers, concepts and factors on which judgement of energy resources problems must be based, whetherby anindividual,grouporgovernment.' 15 December 1979 D.C. Ion 1 Resource definitions and measurement The resources which man can adapt to hisownuse are those which result direct from the sun (solar energy), from the moon (lunar energy) and from the earth (nuclear and geothermal energy), and indirectly from the sun, either historic ally in the fossil fuels in carbon or hydrocarbon form, or currently in wind power, water-power and by biological processes through the flora and fauna. The direct sources create the renewable sources, for one might say that nuclear energy is only a technique ortwo awayfrom becomingvirtually renewable. The indirect sources of the wind, etc, are renewable but limited to being oflocal ratherthen globalvalue. The fossil fuels are the non-renewable resources. The carbon, hydrocarbon and nuclear resources are of the earth and their occurrence is conditioned by the history ofthe earth. The earth is a dynamic body, not a static one. The oceans are fundamentally different from the conti nents. The crust under the continents is thick, about 35 km, and consists pri marily of acidic rocks, such as granites, whereas the crust under the oceans is thin, about 6 - 8km,and formed ofbasicrocks,like basalts.The continentsare old and ofcomplexstructure,the ocean floors are young,beingmostlylessthan seventy-five million years old and simple in rock type and structure.l New oceanic crust is formed from upwelling material along the mid-ocean ridges, with the older, outer oceanic plates being forced under the light continental plates and being redigested into the material ofthe mantle around the core of the earth. The continental plates have suffered many contortions. Mountains have been formed, suffered erosion from sun, wind and water and the resulting sediments deposited into topographically low areas. Igneous rocks have been injected into the sediments and volcanic rocks ejected through and onto the sediments. Forests have flourished, been submerged and buried as the earth's geography changed. Fauna have flourished and died. There is notacubicmetre ofthe continental crust which has nothadauniquehistory,differentfrom that ofeveryothercubicmetre. Thewatersofthe oceanscoverthe oceaniccrustalsegmentsand, to varying extents, the edges ofthe continental crustal plates. Hence although the oceans cover71%ofthesurface oftheglobe2 (363X 106km2) thesubmergedcontinen tal shelves take up some 55 X 106 km2 ofthat and must be thought ofassub merged land, not asocean? Thevariationsinextentofthesubmergedcontinen taledgesare great. Chilehasvirtuallynoshelf;theUSSRhasover3.43 X 106 km2 of adjacent shallow water ofless than 100 fathoms; France with a coastline of 2,560kmhas 140,600km2 under 100fathoms and32,600km2 between 100 1,000 fathoms, whereas Spain has a coastline of 2,766 km has 68,600 km2 under 100 fathoms but 157,700 km2 between 100-1,000 fathoms. These submergedlandshaveasvariedgeologyastheiradjacentlandmasses. Our knowledge of the earth, geology in the broad sense, has grown rapidly in the past two hundred years through field and laboratory work, observation and deduction. New tools are alwaysbeingdeveloped suchasthe datingofrocks by measuring their radio-isotopes, deep oceanic drilling and mapping ofpalaeo magnetic trends from which developed the plate tectonic ideas ofthe structure of the oceans. Our knowledge, however, is still incomplete and fragmentary. There are many areas ofthe earth virtually unexplored. We do know that they Availability ofWorld Energy Resources will be different from anything we do know. They may be similar to areas we know and perhapswemay be able to use analogy,but suchis the infinitevariety of nature that homogeneity is a virtual impossibility. This is a basic thought with which one must approach the discussion of the earth and its resources. A second is that current knowledge is incomplete and one shouldthink and act in the humility ofacknowledged ignorance and not with the arrogance ofuncon sciousignorance. Definitions Much ofthe misunderstandingaboutnatural resourcesisdue to lack ofapprecia tion ofour ignorance and to the misuse ofwords. Definitions ofresources and reserves have been developed in the differentenergy industriesin different terms for different reasons because of different uses. These definitions have been mangled by other workers in different fields whohaveconfused and are confus ing understanding. However,the problemis not simple;because ofthe variety of circumstances, the lack of homogeneity and the gaps in our knowledge, no precise standardization is possible. The best that can be done is to define the termsbeing used and then be as consistent as possible. In thisbook the termsused will be: Resource base: The total amount ofthe energy sourceoccurringin the world in commonly recognizable form. In the renewable energy resources a time factor has to be added to allow quantification. In the non-renewable resources ofthe fossil fuels the amount ofthe coal-in place oroil-in-placeisfinite because the currentformation ratesareinfinitesimal. In the nuclear or fissile resourcesthere isafinite amountofradioactive material in the earth and when used in current reactors the fuel may be considered as non-renewable; when used inbreederreactors theenergycontentissoexpanded that the energysourcebecomes,ineffect,a renewable source. Resources: The total amount of the resource base which is estimated to be probably recoverable for the benefit ofman.Thisestimatewill be based onboth knowledge and reasonable conjecture regarding location and probable recovery techniquesbut is avery imprecise term. Reserves: The total amount ofthe resource which can be defined as recoverable in stated terms of economic and operational feasibility. Whenever possible the degree offeasibility willbegiven byqualifying the term 'reserves' as: Possible reserves: the amount about which geological knowledge is insuffi cient to give any but the most vague recovery costing or indicate optimum recovery method, yet is still within the range of possibility. This is again imprecise and dependent onindividual opinion. Probable reserves: the amount about which geological and engineering knowledge is insufficient for an explicit statement that itcould be recovered under current economic and operating conditions,but can be judged as be coming economically recoverable with only a slight increase in knowledge ofeitherthe deposit oroperatingtechniquesorboth. 2