Fossil fuel increasing prices

As shown in Table 1.3, nearly 90% of the global energy demand is met by fossil and nuclear sources. Of these sources, nuclear is unsafe, fossil is polluting, and both are exhaustible. The costs of all forms of fossil fuels increased drastically during the last 5 years. In early 2008 the wholesale price of a million Btus of energy in the form of coal was about 6, in natural gas about 10,... 

We face three major problems as a consequence of our dependence on fossil fuels for energy. First, fossil fuels are a nonrenewable resource and the world s supply is continually decreasing. Second, a group of Middle Eastern and South American countries controls a large portion of the world s supply of petroleum. These countries have formed a cartel known as the Organization of Petroleum Exporting Countries OPEC), which controls both the supply and the price of crude oil. Political instability in any OPEC country can seriously affect the world oil supply. Third, burning fossil fuels increases the concentrations of CO2 and SO2 in the atmosphere. Scientists have established experimentally that... 

Nuclear Reactors. Nuclear power faciUties account for about 20% of the power generated in the United States. Although no new plants are plaimed in the United States, many other countries, particularly those that would otherwise rely heavily on imported fuel, continue to increase their nuclear plant generation capacity. Many industry observers predict that nuclear power may become more attractive in future years as the price of fossil fuels continues to rise and environmental regulations become more stringent. In addition, advanced passive-safety reactor designs may help allay concerns over potential safety issues. 

The increased availability of energy fueled the Industrial Revolution. The United States became the world s largest oil producer, and the new fossil fuels were abundant and modestly priced. A technology s energy efficiency was not a key part of capital investment decisions. Energy-efficient technology as a priority ranked well behind improved performance. 

Implementation of the 1998 Kyoto Protocol, which is designed to reduce global carbon emissions, will have dramatic effects on fossil fuel usage worldwide. The Kyoto Protocol mostly affects delivered prices for coal and conversion of plants to natural gas, nuclear and/or renewable resources. However, as pointed out by the International Energy Agency, increased natural gas consumption in the United States may likely have the effect of increased reliance... 

Section 14.4.2 (but excluding C02 prices for fossil fuels, unlike in the MOREHyS model) the dotted lines for the CCS cases indicate the additional costs for C02 transport and storage. Increases in feedstock prices could significantly increase hydrogen-production costs, owing to their high shares of total costs for some... 

Hydrogen production costs depend, to a very large extent, on the assumed feedstock prices. The typical range until 2030 is between 8 and 12 ct/kWh ( 2.6- 4/kg). In the long term, until 2050, with an expected increase in feedstock prices (fossil fuels) and C02 prices, hydrogen production costs will increase as well. 

Since the late 1960s, and more especially since 1973, when OPEC policies reversed fossil fuel pricing patterns that had virtually eliminated it as a major component of the Canadian energy economy, coal has not only regained substantial footholds in industrial fuel markets, but also attracted increasingly serious attention as a key resource from which, in future, more diverse energy demands could be met. 

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