| I |
Introduction |
3 |
| II |
Summary |
9 |
| |
Introduction |
9 |
| Major Findings |
9 |
| Specific Findings |
17 |
| |
Replacing Oil Through Energy Technologies |
17 |
| Macroeconomic Impacts |
23 |
| Environmental Impacts |
23 |
| Longer Term Effects |
24 |
| Policy |
25 |
| |
Policy Strategy |
26 |
| Advance Preparation for an Oil Supply Shortfall |
29 |
| Measuring the Rate of Oil Replacement |
31 |
| Selected Regional and International Considerations |
33 |
| |
| |
Table 1. Major Oil Replacement Options |
11 |
| Table 2. Estimated investment Costs for
Major Oil Replacement Technologies |
13 |
| |
| |
Figure 1. Potential Replacement of Oil
Through Fuel Switching and Increased Efficiency |
10 |
| Figure 2. Economic Comparison of two Oil
replacement Scenarios |
14 |
| Figure 3. Potential Reductions in Oil
Consumption |
20 |
| Figure 4. Potential Oil Replacement |
21 |
| Figure 5. GNP: Two Shortfall Projections |
21 |
| |
| III |
U.S. Energy Consumption Patterns, 1952-82 |
39 |
| |
Energy Consumption and Intensity
Averaged Over the Entire U.S. Economy |
41 |
| Energy Consumption by End-Use Sector |
43 |
| |
All Fuels Products |
43 |
| Oil Consumption |
43 |
| Natural Gas |
44 |
| Petroleum Product Mix |
45 |
| |
Motor Gasoline |
45 |
| Distillate Fuel Oil |
45 |
| Residual Fuel Oil |
45 |
| Ethane and Liquefied Gases |
46 |
| Jet Fuel |
46 |
| Other Petroleum Products |
46 |
| The Combination of Oil Product Mix and
Four Demand Sectors |
47 |
| |
Residential and Commercial Sectors |
47 |
| Electric Utilities |
47 |
| Transportation |
47 |
| Industrial |
48 |
| Industrial Sector Energy Intensity |
48 |
| Industrial Product Mix Shift |
50 |
| Economic Recession and Poductivity Decline |
51 |
| |
| Table 3. EIA Petroleum Product
Categories |
45 |
| Table 4. Refined Petroleum Products
Supplied to End-Use Sectors, by Type, 1982 |
47 |
| Table 5. Growth Rates for Alternative
indices of Mining and Manufacturing Output |
51 |
| |
| |
Figure 6. Total Oil Consumption and
Price per Barrel |
39 |
| Figure 7. Total Natural Gas Consumption
and Average Price |
40 |
| Figure 8. Average Price of Electricity
Sold by Electric Utilities, 1960-1982 |
40 |
| Figure 9. Consumption of Energy by
End-Use Sector |
41 |
| Figure 10. Energy Consumption-GNP
Ratios, 1962-82 |
41 |
| Figure 11. Energy Use and GNP Growth
Rate Trends, 1952-82 |
42 |
| Figure 12. Refined Petroleum Products
Supplies to End-Use Sectors |
44 |
| Figure 13. Consumption of Natural Gas by
End-Use Sector |
44 |
| Figure 14. Industrial Energy Intensity
Using the FRB Outfit Index |
49 |
| Figure 15. Industrial Energy Intensity
Using Census Data |
50 |
| Figure 16. Gross National Product
Overtime |
52 |
| Figure 17. Total Investment and
Expenditures for Durable Goods |
52 |
| |
| IV |
Fuel Switching |
57 |
| |
Introduction |
57 |
| Options Considered |
58 |
| Technologies |
59 |
| |
Electric Heat Pumps |
59 |
| Conversion to Solid Fuels |
60 |
| Ethanol |
62 |
| Compressed Natural Gas in Motor Vehicles |
64 |
| Liquefied Petroleum Gas in Motor Vehicles |
64 |
| Mobile Gasifiers |
66 |
| |
Fuel and Grain Supplies |
67 |
| |
|
Coal |
68 |
| Wood and Other Solid Biomass |
69 |
| Natural Gas |
70 |
| Liquefied Petroleum Gas |
71 |
| Enhanced Oil Recovery |
71 |
| Grain |
73 |
| |
Deployment of Fuel Switching
Technologies |
75 |
| |
Electric Utilities |
78 |
| Residential and Commercial Space Heat
and Hot Water |
83 |
| Industrial Boilers |
86 |
| Mobile Engines |
89 |
| Summary |
93 |
| |
| Environmental Impacts |
93 |
| |
| Appendix A - Reasons for Excluding
Various Oil Replacement Technologies From Detailed Consideration |
94 |
| |
Fossil Synthetic Fuels |
94 |
| Active Solar Systems |
95 |
| Photovoltaics |
95 |
| Electricity from Wind |
96 |
| Solar Thermal Electric Generation |
96 |
| Electric Vehicles |
96 |
| Ethanol from Food Process Wastes |
96 |
| |
| Appendix B - Addition Considerations
Regarding Ethanol's Net Energy Balance |
96 |
| V |
Increased Efficiency |
101 |
| |
Introduction |
101 |
| Buildings |
102 |
| |
Heating Oil Conservation |
103 |
| Natural Gas Conservation |
106 |
| Transportation |
107 |
| Industry |
110 |
| |
Technologies Available to Reduce Oil Dependence |
111 |
| Energy Conservation Potential of Industry |
113 |
| Summary |
115 |
| |
| Table 17. Assume 1985 Oil Consumption in
the Residential and Commercial Sectors, by Region |
103 |
| Table 18. Potential Oil Replacement by
Energy Efficiency Invests in the Residential and Commercial Sectors |
104 |
| Table 19. Transportation Oil Use by Mode
and Fuel Type, 1980 |
108 |
| Table 20. Industrial Users of Residual
Oil for Fuel, 1980 |
111 |
| Table 21. Fuel Use Projections |
114 |
| |
| Figure 35. Automobile Fuel Consumption
Projections, 1985-90 |
109 |
| Figure 36. Industrial Energy Demand,
1951-1981 |
110 |
| Figure 37. Total Fuel Use Projection |
115 |
| Figure 38. Petroleum Fuel Use
Projections |
116 |
| Figure 39. Natural Gas Use Projections |
116 |
| VI |
Fuel Use Changes and Longer Term Effects |
119 |
| |
Fuel Use Changes |
| Alternative Scenarios |
121 |
| Longer Term Effects |
122 |
| |
| Table 22. Changes in Fuel Consumption
Through Fuel Switching and conservation |
120 |
| |
| Figure 40. Potential Replacement of Oil
Through Fuel Switching and Increased Efficiency |
119 |
| Figure 41. Potential Reductions in Oil
Consumption |
121 |
| |
| VII |
Economic Impacts |
127 |
| |
Introduction |
127 |
| The INFORUM Macroeconomic Model of the
U.S. Economy |
127 |
| |
The Macroeconomics Without Energy Detail |
128 |
| The INFORUM Energy Skirt |
132 |
| |
| A Modeling Strategy Based on the OTA
Technology Data Base |
135 |
| |
The Energy Sector Guidelines |
135 |
| Guidelines for the Rest of the Economy |
139 |
| Guidelines for Scenario Integration by Iteration on
Fuel Prices |
141 |
| |
| Economic Projections |
143 |
| |
A Normal Economic Projection: The Reference Case |
143 |
| Two Macroeconomic Projections of Oil Import
Shortfall Impacts |
144 |
| |
| Table 23. Petroleum Products and End
Uses Common to Many Industries |
133 |
| Table 24. Illustrative Energy Skirt
Table for 1982: Flows in 1977 Dollars, Quantities and Btus |
134 |
| Table 25. Estimated Investment Costs for
Major Oil Replacement Technologies |
138 |
| Table 26. Estimated Investment Costs for
Selected Oil Replacement Technologies in Transportation |
138 |
| Table 27. Petroleum Uses Largely
Excluded From Technological and Economic Analysis of Oil Replacement |
139 |
| Table 28. Petroleum Price Projections:
Real Crude Price Per Barrel and Product Piece Indices |
141 |
| Table 29. Product Mix for Personal
Consumption Expenditures After 5 Years |
151 |
| Table 30: Product Mix for All Economic
Activity (GNP) 5 Years After Curtailment |
152 |
| |
| Figure 42. Model of the U.S. Economy |
129 |
| Figure 43. 1980 Petroleum Consumption by
Sector |
133 |
| Figure 44. Comparison of Shortfall
Projections |
145 |
| Figure 45. Comparison of Shortfall
Projections |
145 |
| Figure 46. GNP: Two Shortfall
Projections |
145 |
| Figure 47. Unemployment: Two Shortfall
Projections |
147 |
| Figure 48. Inflation: Two Shortfall
Projections |
148 |
| Figure 49. Investment in Producer
Durables |
149 |
| Figure 50. Personal Consumption
Expenditures |
150 |
| |
Index |
157 |