Global Petroleum Dependence final

Document Sample
Global Petroleum Dependence final Powered By Docstoc
					 Global Dependence
       On Oil:
  An Addiction that Threatens
    World Peace and Security

• Why We Should Strive for Energy Independence
• What Role Israel Can Play to Help Us

                                                 Neil B. Goldstein
                                                 Executive Vice President
                                                 Energy Alternatives for the 21st Century, Inc (EA-21)
                                                 The Israel Energy Partnership, Inc (TIEP)

The World Consumes roughly 85 million barrels
of oil a day -      - even in the midst of a global recession

• At the current price of about $80 a barrel, worldwide spending for oil
  amounts to almost 2.5 trillion dollars a year.
• At the 2007 price of $147 a barrel it represented an enormous tax on
  all of us; one that made it impossible for many people to
  simultaneously pay their mortgages and one that helped lead to the
  economic collapse.
                                                       Who Gets That Money –
                                                  OPEC Sells 30 million barrels a day
                                           = $2.4 billion per day from the industrialized world.

                                                                  OPEC Average Daily Production

 Barrels Output (000's)

                           5,000                                                                                                            Series1





















Non-OPEC producers of note (producing over 1 million bbl/day) include: Russia (9.9 million bbl/day),
U.S. (8.5 million), China (3.7 million), Mexico (3.5 million), Canada (3.4 million), EU (2.7 million),
Norway (2.6 million), Brazil (2.3 million), UK (1.7 million) and Kazakhstan (1.5 million).
              What They Are Able to Do with It -
     1.   In the case of Iran, develop Nuclear Weapons and subjugate
     their own people. In the case of Saudi Arabia, purchase
     conventional arms in quantities out of proportion to their size.

Saudi Arabia ranks with India, Italy Japan and even Russia in military spending!
  2.   Buy Influence

• China imports over 3 million barrels a day. Its largest
  suppliers are Saudi Arabia and Iran.

 • The EU imports even more oil than China. Of its total,
   2.48 million barrels a day come from the Middle East.
3.   Raise a new generation that hates the West and that
      seeks to end the very industrialized world that
                    purchases their oil

      To See What Lies Behind Terrorism Click on the black background
Oil empowers America’s enemies, funds terrorism,
threatens Israel, distorts foreign policy to our disadvantage,
and finances Iran’s development of nuclear weapons.

Our Conclusion:

There are few things we can be working on more
  important to the security of the United States, to
  the economic well-being of the industrialized
  world, for the success of the war on terrorism,
  and for the survival of the state of Israel than
  ending the geopolitical importance of oil.
                     What Using “Less Fuel” Really Means
Oil is a fungible international commodity. To the extent that Americans use up the oil supplied from
our domestic production plus some oil from “friendly” nations, demand from the rest of the world
must be met by other suppliers including “bad” producers like Iran. So we can’t solve the problem
merely by buying our oil only from friendly producers.

                                      World Oil Supply

             There is no such thing as “good” oil or “bad” imported oil.
              Every ounce of oil we import helps empower our enemies.
  The only way to reduce the geopolitical impact of
 oil and to take away the power of the oil producers
         is to find alternatives to imported oil.

• Supply: Increase domestic

• Demand: Reduce consumption
  or find alternative fuels
 60% of the oil we use is consumed
         for transportation
• The entire $5 billion being spent for
  weatherization will save less than
  ½% of the oil we use each year.

• Less than 3% of the oil we use is
  consumed generating electricity. So,
  while using renewables will reduce
  greenhouse gases, it will not
  significantly reduce oil consumption.
      What Will and Will Not Work

•   When it comes to our addiction to oil, electric power is not the problem, so as good as
    renewables may be for addressing the problem of global warming, using solar or wind
    instead of coal to generate electricity will do next to nothing for solving our addiction to

•   And while electric cars and plug-in electric hybrid vehicles may the wave of the future,
    they can’t do much immediately to end our addiction to oil. Although they can be built
    today (the technology is ready right now) US DoE projects that fewer than 3% of the
    cars on the road by 2030 will be electrics or plug-in hybrids. The problem is not
    primarily one of technology (they can be built today) but rather one of marketplace
    development and acceptance. If you have any doubt that it will take that long for this
    new technology to gain market share, remember that fewer than ½ of 1% of the cars on
    U.S. roads today are hybrids 12 years after Honda introduced them to the U.S. market
    in 1998.

    The quickest, surest and most economical approach to slashing
    gasoline use is one that would produce and use alternative fuels in
    cars very much like those produced today, and that could be driven
    immediately, without a massive investment in new auto manufacturing
    or refueling infrastructure.
                   What That Will Take
1.   Flexible Fuel” cars that can run on those alternative fuels - The “Open Fuel
     Standard Act (OFS),” (HR 1476 and S 835), would give consumers such a choice
     of fuels, by requiring manufacturers to produce and sell such cars. Since they are
     nearly identical to ordinary cars, for less than $100, every new car could be a
     flexible fuel vehicle equipped to run on alcohol fuels. According to USEPA
     OFS would give consumers that choice and put 177 million flexible fuel cars
     on the road by 2022.

2.   The Advance Biofuels for them to run on – The revised Renewable Fuel
     Standard (“RFS2”) established by Congress in 2007 requires that gasoline refiners
     sell these alternative fuels in amounts that increase from about 9 billion gallons
     today, to 15 billion in 2012 and to 36 billion gallons a year by 2022. Today it’s corn
     ethanol that is being used to meet that requirement. But to meet the 36 billion
     requirement will take as much as 21 billion gallons of advanced biofuels from such
     sources as cellulosic waste or algae. The U.S. and our friends will need to carry
     out a massive R&D program to figure out ways to cost-effectively produce these
     advanced biofuels.
              What Israel Can Do to Help
                  Marshalling Israel’s capabilities to help solve the
                  problem of global addiction to oil.

                  Producing cost-effective substitues for gasoline.

• The U.S.-Israel Energy Cooperation Act (section 917 of EISA
  [PL110-140]), already establishes a framework for U.S.-Israel
  cooperation to help produce these advanced biofuels.

• Prime Minister Netanyahu’s has made a commitment that Israel will
  help in the fight to end the global dependence on oil.
What are some of the technologies that Israel has
   to offer to produce replacements for oil?

• Producing synthetic fuels from traditional
  feedstocks using new chemical processes:
    • Or new biological processes (Enzymatic and
    Microbial Pretreatment of Cellulose, Hemicellulose and
    Lignin to free up the glucose needed for fermentation)

•    Ed Bayer – Weizmann (enzymatic complexes, “cellusomes”) to use biochemical
     approaches to pretreat
•    Charles Greenblatt and Stefan Rokem at Hebrew University and Shoham Yuval at
     Technion – study of bacteria that readily digest cellulosic waste (e.g. in municipal
     wastewater) to pretreat or that naturally produce petroleum to produce fuels direcdtly
•    Sharon Amir at Tel Aviv University to use fungi that produce biodegrading enzymes
• Or new physical processes
                             •   Hydrogen production – WIS scientists work
                                 on several methods to produce hydrogen (a
                                 clean and efficient fuel) using solar energy.
                                 These methods include: (i) hydrocarbon
                                 reforming, (ii) methane decomposition, and
                                 (iii) solar thermal-electrochemical
                                 dissociation of water at high temperatures.

                             •   Biomass gasification – developing means
                                 to use solar energy to convert biomass
                                 (such as organic waste) to fuel.

 Feedstocks could be coal,
 municipal waste, corn                        Reprinted by permission of the owner, Deror Avi

 stover, rice husks, wood
 waste, etc.
                                    Photos reprinted by permission of author: Deror Avi
• Or by improving the fuel feedstocks using
the most advanced scientific methods

 Unique In Silico gene discovery
 The use of advanced computational tools to organize, refine, enrich, mine and prioritize vast amounts of genomic data
 allows the identification of novel genes which cannot be discovered using standard bioinformatic tools and wet lab
 Comparative genomics based gene discovery
 We believe that comparative genomics, harnessing the valuable information available in the evolutionary
 processes that all plants underwent, is a strong approach for gene discovery. Our computational database
 includes more than 70 plant species and over 8 Million expressed sequences
• Or by BioEngineering Entirely New Ones

 •   TransAlgae's Technology

 •   Scientific Approach
 •   The basic premise of TransAlgae is that organisms chosen from the wild are
     being used for bio-fuel and co-products; nonetheless, they must be domesticated
     just as all successful crops have been. TransAlgae recognizes that the only
     effective method of domestication for the looming challenges ahead, is to use the
     tools of modern molecular biology. Therefore, we are developing platform
     technologies based on transgenic algae.
 •   Using transgenic algae together with our novel production systems, adapted for
     cultivating and harvesting algae, will considerably enhance yields per unit area,
     while greatly decreasing capital and running costs. As a breeding company,
     TransAlgae is developing a large number of strains that will be appropriate for
     different environments and system designs. By developing a platform for a matrix
     of climates, resources and co-products, we will be able to rapidly deploy stocks
     worldwide, allowing our partners to to meet demand and respond to changing
     market conditions.
 •   TransAlgae’s patent-protected production technologies, harvesting processes and
     gene modulations will increase yields of the desired products, prevent
     contamination of the algal production systems, while protecting the environment
     from inadvertent release of transgenic organisms.
• Or by Using Israel’s Experience with Desert
Environments to Rediscover Old Ones

Halophytes – plants that can grow prolifically on damaged
  desert lands without the need for fresh water

       January 2006           October 2007 (22 months growth)
An Army of Trees Grows in the Desert
 in the War for Energy Independence

    For Further Information or to Help in the U.S. Effort for
             Energy Security and Independence,
                    Click on the Link Below

Shared By: