# Presentation: 098129

## H-Prize

**H-Prize**

## The End of Cheap Oil

- The End of Cheap Oil ...

## GAS PRICES ON THE RISE

**GAS PRICES ON THE RISE**

- Source:
- US DOE EIA

- 2 8 3

**Notes:**
- tax is a lower percentage in SC because of lower gas taxes -> 18.4¢ federal and 16.8¢ state.
Currently problem in replacing MTBE with ethanol, causing spot shortages and higher prices – ALSO there is high PRICE volatility because of international events and very little excess capacity in the system. WE PRODUCE ABOUT 85-87 Million Barrels a day and consume 84-85 million barrels a day
One of the things we can do is try to standardize fuel mixes, cutting down on the number of “boutique” fuels.  A more fluid refining market means lower and more equalized prices between regions.
- Crude oil price used to depend on how fast the OPEC cartel chose to release it to the world market, but now is determined by production compared to demand.  Demand is beginning to outpace production capacity, leading to higher prices.

## Top 10 Foreign Suppliers of U.S. Oil

**Notes:**
Top 10 Foreign Suppliers
Canada
Mexico
Saudi Arabia
Venezuela
Nigeria
Iraq
Algeria
Angola
Russia
United Kingdom

Saudi Arabia
Russia
US
Iran
China & Mexico are tied

Countries in light pink are OPEC:
Saudi Arabia (11.9%), Iran (5.1%), Venezuela (4.7%), Iraq (3.6%), United Arab Emirates (3.2%), Nigeria (2.9), Libya (2%), Indonesia (2%), Algeria (1.6%), Qatar (1%)

Countries in red are non-OPED oil producers:
United States (10.3%), Russia (8.8%), Mexico (4.8%), China (4.6%), Norway (4.3%), UK (4%), Canada (3.5%)

(percentages of world output)

## Hugo Chavez, President of Venezuela: “...use geopolitical power from oil.”

**Hugo Chavez**, President of Venezuela: “...use geopolitical power from oil.”

**Mahmood Ahmadinejad**, President of Iran: “Rich nations should be paying $100 / barrel...”

- Energy Security?

## Global Energy Demand to Grow 60% by 2030*

**Cars line up to buy gas in**** China's Guangdong province,**** August 17, 2005. **(_[China Daily](http://www.chinadaily.com.cn/english/doc/2005-08/18/content_470149_2.htm)__)_

**Global Energy Demand to Grow 60% by 2030***

- ***Exxon Mobil Energy outlook**

**Notes:**
Developing nations are expected to double their demand for oil. World Oil Demand will grow by 57 percent by 2025

##  Demand will require 40% increase in OPEC Oil

-  Demand will require 40% increase in OPEC Oil

**Notes:**
Our imported oil (approx. 60% of our total supply) will increasingly come from OPEC countries as other fields go into decline.

## What about ANWR?

**What about ANWR?**

**ANWR:****One mb/day ****10 years**** from now**...

**Total  27 mb/day**

**U.S. Consumption of Oil** (million barrels /day)

**Notes:**
This is just US... add India and China and oil demand curve is much steeper.
Formerly, the DOE Energy Information Administration based their projections for how much OPEC could produce (Saudi Arabia particularly) on how much the world needed.  This was foolish, and they’ve since revised their projections to account for geological limitations.

## Near term:
Conservation measures
Mid term:
Hybrid, flexible fuel, ethanol & methanol, bio-diesel, better batteries
Long term:
Transitioning to the hydrogen economy

**Near term:**
**Conservation measures**
**Mid term:**
**Hybrid, flexible fuel, ethanol & methanol, bio-diesel, better batteries**
**Long term:**
**Transitioning to the hydrogen economy**

- The Road Ahead

## Why hydrogen?

**Why hydrogen?**

**Safe**
**Abundant**
**Clean**

**Notes:**
Hydrogen can be more efficient than gasoline in a reinvented car:
 - Liquid hydrogen internal combustion engine or fuel cell running electric motors on the 4 Tweels (integrated suspension)
 - Smart car technology for zero accidents
 - Zero emissions cleaning the air
 - In the future, refuel at home and sell power to the utilities or be paid to park in a garage

## Is Hydrogen safe?

**Gasoline tank fire**

**Is Hydrogen safe?**

**Notes:**
Hydrogen can be more efficient than gasoline in a reinvented car:
 - Liquid hydrogen internal combustion engine or fuel cell running electric motors on the 4 Tweels (integrated suspension)
 - Smart car technology for zero accidents
 - Zero emissions cleaning the air
 - In the future, refuel at home and sell power to the utilities or be paid to park in a garage

## Commitment
Collaboration
Discovery

**Commitment**
**Collaboration**
**Discovery**

**Our part in the****Hydrogen Economy**

**Notes:**
Hydrogen can be more efficient than gasoline in a reinvented car:
 - Liquid hydrogen internal combustion engine or fuel cell running electric motors on the 4 Tweels (integrated suspension)
 - Smart car technology for zero accidents
 - Zero emissions cleaning the air
 - In the future, refuel at home and sell power to the utilities or be paid to park in a garage

## Commitment

**"to achieving the goal, before this decade is out, of landing a man on the moon and returning him safely to the Earth."**

**Neil Armstrong: “One small step for man. One giant step for mankind.**

- July 20, 1969

**Notes:**
• Commitment. On May 25, 1961, President Kennedy challenged the Congress to commit America "to achieving the goal, before this decade is out, of landing a man on the moon and returning him safely to the Earth." The Soviet Union 's launch of Sputnik in 1957 had sparked the challenge; Neil Armstrong's "one small step" from Apollo 11 on July 20, 1969, answered it. National security demands a new Apollo mission — this one aimed at the garage rather than the moon. • Collaboration. Smart cars and fuels of the future will come only from successful collaboration with capable partners. Here in South Carolina we — Clemson, USC and State; the Upstate, Midlands and Lowcountry — must work in common cause. The Savannah River Site should reach out to Oak Ridge National Laboratory in Tennessee . ICAR should invite Georgia, North Carolina and Tennessee research universities, among others, to participate in its work. We Southerners, new in the car business, should respect the significance of Detroit , searching for ways to cooperate and to build the future with them. • Discovery. Development of a hydrogen economy depends on breakthroughs in the production, storage and distribution of hydrogen. South Carolina can help. Nanotechnology centers at Clemson and USC may be able to add to the promising results announced recently by Rutgers University whereby the microscopic rearrangement of ammonia molecules made easier the separation of hydrogen from ammonia, opening up the possibility of producing hydrogen under the hood of the car. Perhaps solar, wind or biological units might someday produce enough power to run small water electrolysis units in homes, producing enough hydrogen for the household's daily consumption. In the nearer term, a new generation of nuclear power plants can be built that can efficiently "crack" large quantities of water, producing enough hydrogen to supply pipelines leading to filling stations. One of the best locations for a next-generation nuclear plant is the Savannah River Site. The site is large, its neighbors are accustomed to nuclear activity and it has expertise in the storage of hydrogen. At a recent panel discussion, a GM executive was asked about the wisdom of his company's investment of over $1 billion in hydrogen. Like BMW, GM intends to lead the transformation to a hydrogen economy. "How can you be so sure," the questioner asked, "that 30 years from now there will be a supply of hydrogen to run this new car of yours?" The GM executive paused for a moment and then responded, "How can you be so sure that 30 years from now there will be a supply of gasoline to run your car?" The truth is, we can't be sure there will be gas to run our cars. That's why we need to get with it and get on to fuels of the future. If we play it right we can create lots of new jobs by retooling the car; we can clean up our air (especially important that we get this technological fix before the Chinese start driving cars like we do); and we can take the oil pressure off the Middle East. Like the Apollo missions and the Manhattan Project before that, America is in a race. Get ready to run; the race comes through South Carolina . 

## Collaboration

**CLEMSON-ICAR**

**Center for Fuel Cell Research**

**Notes:**
• Commitment. On May 25, 1961, President Kennedy challenged the Congress to commit America "to achieving the goal, before this decade is out, of landing a man on the moon and returning him safely to the Earth." The Soviet Union 's launch of Sputnik had sparked the challenge; Neil Armstrong's "one small step" from Apollo 11 on July 20, 1969, answered it. National security demands a new Apollo mission — this one aimed at the garage rather than the moon. • Collaboration. Smart cars and fuels of the future will come only from successful collaboration with capable partners. Here in South Carolina we — Clemson, USC and State; the Upstate, Midlands and Lowcountry — must work in common cause. The Savannah River Site should reach out to Oak Ridge National Laboratory in Tennessee . ICAR should invite Georgia, North Carolina and Tennessee research universities, among others, to participate in its work. We Southerners, new in the car business, should respect the significance of Detroit , searching for ways to cooperate and to build the future with them. • Discovery. Development of a hydrogen economy depends on breakthroughs in the production, storage and distribution of hydrogen. South Carolina can help. Nanotechnology centers at Clemson and USC may be able to add to the promising results announced recently by Rutgers University whereby the microscopic rearrangement of ammonia molecules made easier the separation of hydrogen from ammonia, opening up the possibility of producing hydrogen under the hood of the car. Perhaps solar, wind or biological units might someday produce enough power to run small water electrolysis units in homes, producing enough hydrogen for the household's daily consumption. In the nearer term, a new generation of nuclear power plants can be built that can efficiently "crack" large quantities of water, producing enough hydrogen to supply pipelines leading to filling stations. One of the best locations for a next-generation nuclear plant is the Savannah River Site. The site is large, its neighbors are accustomed to nuclear activity and it has expertise in the storage of hydrogen. At a recent panel discussion, a GM executive was asked about the wisdom of his company's investment of over $1 billion in hydrogen. Like BMW, GM intends to lead the transformation to a hydrogen economy. "How can you be so sure," the questioner asked, "that 30 years from now there will be a supply of hydrogen to run this new car of yours?" The GM executive paused for a moment and then responded, "How can you be so sure that 30 years from now there will be a supply of gasoline to run your car?" The truth is, we can't be sure there will be gas to run our cars. That's why we need to get with it and get on to fuels of the future. If we play it right we can create lots of new jobs by retooling the car; we can clean up our air (especially important that we get this technological fix before the Chinese start driving cars like we do); and we can take the oil pressure off the Middle East. Like the Apollo missions and the Manhattan Project before that, America is in a race. Get ready to run; the race comes through South Carolina . 

## Discovery

**Discovery**

**Hydrogen Storage**
**–****  ****Needs to be about 300 miles**
**Fuel Cell**** ****Cost**
** – ****Now  about $110 a kW; **
** ****Needs to be about $30 per kW**
**H2 Cost **
**– ****Now $4 gallon of gas equivalent (gge)**** ****Needs to be about $3 gge.**** **

**Notes:**
Hydrogen can be more efficient than gasoline in a reinvented car:
 - Liquid hydrogen internal combustion engine or fuel cell running electric motors on the 4 Tweels (integrated suspension)
 - Smart car technology for zero accidents
 - Zero emissions cleaning the air
 - In the future, refuel at home and sell power to the utilities or be paid to park in a garage

## The most non-governmental way government can achieve clear results.
Provides results-based financial incentives to harness the creative, can-do spirit of Americans.

**The most non-governmental way government can achieve clear results.**
**Provides results-based financial incentives to harness the creative, can-do spirit of Americans.**

**H-Prize**

**H-Prizes**** **
**1) Technical Breakthroughs**
**2) Prototypes**
**3) Transformational  Technologies**

## We can. Because we have.

**Transcontinental Railroad last spike on**** May 10, 1869, at Promontory Summit, Utah**

**Notes:**
Construction of the Transcontinental railroad began in Sacramento on January 8, 1863 and in Omaha on December 2, 1863. 
The initial construction efforts were hardly marvels of engineering. By February 1864 only 18 miles of rail had been laid in California and none were laid out in Omaha until the spring of 1865. 
Despite the fact that the U.S. government offered lucrative subsidies, these covered only half of the necessary capital needed to build the railroad. Both companies created a number of indirectly held private companies to draw private capital and carry out the work.
By the time the final spike was driven on May 10, 1869, at Promontory Summit, Utah, it had become one of the greatest engineering feats of the 19th century. Innovation, the desire for profits and gritty determination united the American continent.

## We can. Because we have.

**August 15, 1914 the Panama Canal opened after nine years of grueling effort**

**Notes:**
In 1894, industrialists in France knew the time had come to build a canal across the isthmus of Panama. After eight years, $287 million dollars and 20,000 deaths from malaria, France gave up. It had built 11 of the canal’s 51 miles.
In 1905 the United States picked the project up. On August 15, 1914 the canal opened after nine years of grueling effort and engineering genius that included ridding the isthmus of yellow fever and malaria.  

## We can. Because we have.

**July 16, 1945, Manhattan project results in first successful atom bomb test at Trinity Site**

**Notes:**
Despite an enormous investment of resources, in August of 1944 the Manhattan Project had not found success. There was little enriched uranium or plutonium, bomb designs were faulty, and time was running short. To resolve the problem, Los Alamos brought the best and the brightest engineers, physicists, mathematicians, and explosive experts to an area called S Site. This elite group worked round the clock to make the new implosion bomb. On July 16, 1945 their efforts came to fruition with the successful Trinity test in the New Mexico desert.

## How Long?

- Transcontinental Railroad
- 1863-1869  				6 years
- Panama Canal
- 1905-1914				9 years
- Manhattan Project
- 1942-1945				3+ years
- Moon Landing
- 1961-1969				8 years
- Hydrogen economy
- 2003 - 				?

## We can. Because we must.

**We can. Because we must.**