The document outlines several grand challenges facing the energy industry. It notes that demand for energy is expected to increase 45% by 2030 but fossil fuels will still dominate, providing 87% of energy. Key challenges include developing new technologies to modernize the electricity grid and transition to more renewable and efficient energy sources, finding new sources of oil as large fields become more difficult to discover, and recruiting the next generation of scientists and engineers to work in the energy industry.

1. Energy’s Grand Challenges Why there isn’t an easy solution

2. Source: US Energy Information Administration Today’s Energy 85.5 % = fossil fuels (oil, gas, coal) 14.5 % = nuclear and all other sources By 2025 87 % = fossil fuels (oil, gas, coal) 13 %= nuclear and all other sources

3. World demand for energy expands 45% by 2030 Source: IEA World Energy Outlook 2008

4. Challenge: bridge supply limitations with 24-hour demand for electricity worldwide Image Credit: NASA 1970s: Photo from space - glow from electric lights at night.

5. Challenge: bridge supply limitations with 24-hour demand for electricity worldwide Streamline electricity grid for efficiency Develop wind and solar storage systems for peak use. Continue “clean coal” technology advancements Increase use of natural gas Image Credit: NASA 2005: Photo from space - glow from electric lights at night.

6. Challenge: Develop new technologies and cultural habits. Modernize electricity grid Develop and use more efficient transportation energy (i.e. hybrids, electric cars, hydrogen, natural gas, algae-based fuels) Redesign homes and buildings Use less!

7. Challenge: Develop new technologies and cultural habits Engineers use complex computer simulation models for design

8. How important is oil? U.S. consumes 19.5 million barrels of oil per day U.S. produces 8.5 million barrels of oil per day

9. Artificial Hearts Aspirin Balloons Bandages Blenders Cameras Candles CD Players Clothing CDs/DVDs Computers Containers Crayons Credit Cards Dentures Deodorant Digital Clocks Dyes Fertilizers Food Preservatives Footballs Furniture Garbage Bags Glasses Glue Golf Balls Hair Dryers Hang Gliders House Paint Ink Insecticides Life Jackets Lipstick Luggage Medical Equipment Medicines MP3 Players Pantyhose Patio Screens Perfumes Photographic Film Photographs Piano Keys Roller Blades Roofing You can kiss lipstick good-bye. Shampoo Shaving Cream Soft Contact Lenses Surfboards Telephones Tents Toothpaste Toys Umbrellas

10. How valuable is petroleum? Enough energy to heat 80 million homes 382 million gallons of gasoline to service stations, enabling 200 million drivers to get to work, take their kids to school, and take vacations-- traveling 7.5 billion road miles every day 67 million gallons to airport terminals, enabling 30,000 flights to travel around the world Source: API Energytomorrow.org In one day , the oil and gas industry delivers

11. The search for oil and gas Exploration Appraisal Production Refining and Marketing

12. Where we find oil: porous rock

13. Hydrocarbon Traps Images courtesy of http://www.planete-energies.com

14. Challenge: getting the oil out Today, we can access hydrocarbons trapped in rocks with smaller, complex pores using horizontal drilling

15. Challenge: large oilfields increasingly difficult to find. Seismic technology advances Breakthroughs in computer processing power and data management needed Offshore deepwater exploration

16. Seismic Reflections

17. Challenge: getting the oil out Deepwater Drilling The Deepwater Pathfinder drillship (shown) can drill in water depths up to 10,000 feet Dynamic-Positioning - Small thrusters and global positioning keep it stable, shifting less than 50 feet in any direction.

18. Offshore Rig A deepwater project will: Take many years to complete Cost almost $1 billion USD Employ 2000 people Bring 50,000 barrels of oil per day to market

19. Production Systems

20. Safety and Environmental Protection are Critical! Deepwater Horizon There has not been an offshore accident of this magnitude in the US since the late 1960s.

21. 2009 Analysis of U.S. Oil Spillage - API

22. Challenge: Recruiting the next generation of engineers and scientists Engineering Petroleum, Chemical, Mechanical, Others Geoscience Geology, Geophysics Sciences All basic sciences - research Business Finance, HR, Management

23. Energy’s Grand Challenges Your Questions