While most fossil fuels in the United States are burned, or combusted, to produce heat and power, EIA estimates that the equivalent of about 5.5 quadrillion British thermal units of fossil fuels were consumed for non-combustion purposes in the United States in 2017. Over the past decade, non-combustion consumption of fossil fuels has typically accounted for about 7% of total fossil fuel consumption and about 6% of total energy consumption in the United States.
Fossil fuels can be consumed, but not combusted, when they are used directly as construction materials, chemical feedstocks, lubricants, solvents, waxes, and other products. Common examples include petroleum products used in plastics, natural gas used in fertilizers, and coal tars used in skin treatment products. In 2017, about 13% of total petroleum products consumed were for non-combustion use. Natural gas non-combustion use accounted for about 3% of total natural gas, while coal was less than 1%.
In 2017, carbon dioxide (CO2) emissions would have been 196 million metric tons (about 4%) higher if non-combustion fuel use would have been combusted. Estimation of fossil fuels for non-combustion consumption is essential to calculate total U.S. carbon dioxide emissions. In the non-combustion use of these fuels, some (but not all) of the carbon is sequestered and not included in the fuel consumption values for emissions calculations.
Source: U.S. Energy Information Administration, Monthly Energy Review
Petroleum products account for about 86% of non-combustion consumption. Hydrocarbon gas liquids (HGL) such as ethane, ethylene, butane, butylene, isobutane, isobutylene, propylene, and natural gasoline and petrochemical feedstocks such as naphthas are important components for making plastics. HGL are used as intermediate products, while petrochemical feedstocks are used directly at chemical plants. Other petrochemical feedstocks are used to make synthetic fabrics, such as Kevlar, synthetic rubbers, detergents, and other chemical products.
Many other petroleum products are consumed for non-combustion uses other than plastics. Asphalt and road oils are used for roofing and paving construction. Lubricants, which include motor oil and greases, are used in vehicles, machinery, and various industrial processes. Petroleum coke is used as a chemical catalyst, while special naphthas are used in petroleum-based paints. Other petroleum products include distillate and residual fuel oils used as chemical feedstocks as well as polishes and waxes.
Relatively small amounts of natural gas are consumed for non-combustion use in the industrial sector. Natural gas is used as feedstock to make nitrogenous fertilizers and a range of chemical products including ammonia, hydrogen, and methanol.
Only small amounts of coal are used for non-combustion purposes in the industrial sector. Among the byproducts of the process to produce metallurgical coke are coal tars, which are rich in aromatic hydrocarbons, such as benzene, and are used as feedstocks in the chemical industry to make sealcoats for pavement, synthetic dyes, and paints. Some anti-dandruff shampoos and other medical skin care products contain coal tars.
Monthly and annual estimates of non-combustion consumption of fossil fuels are available in both physical units and energy units (British thermal units) in Tables 1.11a and 1.11b of EIA’s Monthly Energy Review.
Principal contributor: Mickey Francis
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Pioneering technology expert tells ADIPEC Energy Dialogue up to 80 per cent of plant shutdowns could be mitigated through combination of advanced electrification, automation and digitalisation technologies
Greater use of renewables in power management processes offers oil and gas companies opportunities to create efficiencies, sustainability and affordability when modernising equipment, or planning new CAPEX projects
Abu Dhabi, UAE – XX August 2020 – Leveraging the synergies created by the convergence of electrification, automation and digitalisation, can create significant cost savings for oil and gas companies when making both operational and capital investment decisions, according to Dr Peter Terwiesch, President of Industrial Automation at ABB, a Swiss-Swedish multinational company, operating mainly in robotics, power, heavy electrical equipment, and automation technology areas.
Participating in the latest ADIPEC Energy Dialogue, Dr Terwiesch said up to 80 per cent of energy industry plant shutdowns, caused by human error, or rotating machinery or power outages, could be mitigated through a combination of electrification, automation and digitalisation.
“Savings are clearly possible not only on the operation side but also, using the same synergies between dimensions, you can bring down the cost schedule and risk of capital investment, especially in a time when making projects work economically is harder,” explained Dr Terwiesch.
A pioneering technology leader, who works closely with utility, industry, transportation and infrastructure customers, Dr Terwiesch said despite the increasing investment by oil and gas companies in renewables and the growing use of renewables to generate electricity, both for individual and industrial uses, hydrocarbons will continue to have an important role in creating energy, in the short to medium term.
“If you look at the energy density constraints, clearly electricity is gaining share but electricity is not the source of energy; it is a conduit of energy. The energy has to come from somewhere and that can be hydrocarbons, or nuclear, or renewables.” he said.
Nevertheless, he added, the greater use of renewables to generate electricity offers oil and gas companies the option of integrating a higher share of renewables into power management processes to create efficiencies, sustainability and affordability when modernising equipment, or planning new CAPEX projects.
The ADIPEC Energy Dialogue is a series of online thought leadership events created by dmg events, organisers of the annual Abu Dhabi International Exhibition and Conference. Featuring key stakeholders and decision-makers in the oil and gas industry, the dialogues focus on how the industry is evolving and transforming in response to the rapidly changing energy market.
With this year’s in person ADIPEC exhibition and conference postponed to November 2021, the ADIPEC Energy Dialogue, along with insightful webinars, podcasts and on line panels continue to connect the oil and gas industry, with the challenges and opportunities shaping energy markets in the run up to, and following, a planned three-day live stream virtual ADIPEC conference taking place from November 9-11.
An industry first of its kind, the online conference will bring together energy leaders, ministers and global oil and gas CEOs to assess the collective measures the industry needs to put in place to fast-track recovery, post COVID-19.
To watch the full ADIPEC Energy Dialogue series go to: https://www.youtube.com/watch?v=QZzUd32n3_s&t=6s
Utility-scale battery storage systems are increasingly being installed in the United States. In 2010, the United States had seven operational battery storage systems, which accounted for 59 megawatts (MW) of power capacity (the maximum amount of power output a battery can provide in any instant) and 21 megawatthours (MWh) of energy capacity (the total amount of energy that can be stored or discharged by a battery). By the end of 2018, the United States had 125 operational battery storage systems, providing a total of 869 MW of installed power capacity and 1,236 MWh of energy capacity.
Battery storage systems store electricity produced by generators or pulled directly from the electrical grid, and they redistribute the power later as needed. These systems have a wide variety of applications, including integrating renewables into the grid, peak shaving, frequency regulation, and providing backup power.
Most utility-scale battery storage capacity is installed in regions covered by independent system operators (ISOs) or regional transmission organizations (RTOs). Historically, most battery systems are in the PJM Interconnection (PJM), which manages the power grid in 13 eastern and Midwestern states as well as the District of Columbia, and in the California Independent System Operator (CAISO). Together, PJM and CAISO accounted for 55% of the total battery storage power capacity built between 2010 and 2018. However, in 2018, more than 58% (130 MW) of new storage power capacity additions, representing 69% (337 MWh) of energy capacity additions, were installed in states outside of those areas.
In 2018, many regions outside of CAISO and PJM began adding greater amounts of battery storage capacity to their power grids, including Alaska and Hawaii, the Electric Reliability Council of Texas (ERCOT), and the Midcontinent Independent System Operator (MISO). Many of the additions were the result of procurement requirements, financial incentives, and long-term planning mechanisms that promote the use of energy storage in the respective states. Alaska and Hawaii, which have isolated power grids, are expanding battery storage capacity to increase grid reliability and reduce dependence on expensive fossil fuel imports.
Source: U.S. Energy Information Administration, Form EIA-860, Annual Electric Generator Report
Note: The cost range represents cost data elements from the 25th to 75th percentiles for each year of reported cost data.
Average costs per unit of energy capacity decreased 61% between 2015 and 2017, dropping from $2,153 per kilowatthour (kWh) to $834 per kWh. The large decrease in cost makes battery storage more economical, helping accelerate capacity growth. Affordable battery storage also plays an important role in the continued integration of storage with intermittent renewable electricity sources such as wind and solar.
Additional information on these topics is available in the U.S. Energy Information Administration’s (EIA) recently updated Battery Storage in the United States: An Update on Market Trends. This report explores trends in battery storage capacity additions and describes the current state of the market, including information on applications, cost, market and policy drivers, and future project developments.