The Future of Energy

The resource curse, also known as the paradox of plenty or the poverty paradox, is the phenomenon of countries with an abundance of natural resources (such as fossil fuels and certain minerals) having less economic growth, less democracy, or worse development outcomes than countries with fewer natural resources. There are many theories and much academic debate about the reasons for and exceptions to the adverse outcomes. Most experts believe the resource curse is not universal or inevitable but affects certain types of countries or regions under certain conditions. In our final episode of season three of the Future of Energy, Kyle Koerner moderates a panel of three distinguished experts, Dr. Don Paul from ECET, USC, Tisha Schueller of Adamantane Energy and Trem Smith. Even our student podcasters get to ask the experts their questions. Thanks for all your support.

In an era defined by rapid technological advancement, rising global tensions, escalating environmental concerns and the quest for sustainable energy, our nation’s future hinges on strategic investments in the energy sector. Petroleum engineering enrollment and other disciplines related to subsurface energy resources like petroleum geology and the resulting degrees granted are greatly affected by oil and gas prices, and the changes lag prices by 2.5 years. But the academic timeline to produce new engineers is 4 to 5 years long. When industry petroleum engineering requirements increase, it will take several years to increase the supply of engineers to take advantage of the new opportunities. How does the industry deal with this time lag? Our topic for this episode is the next generation of energy workforce. We understand that you have recently prepared a paper on this topic for a Western Region SPE conference. What were your conclusions? What are the major challenges in recruiting, training, and retaining the next generation workers? Our topic for this episode is the next generation of energy workforce. Mike Hauser, working with researchers at USC recently prepared a paper on this topic for a Western Region SPE conference. We talk about his conclusions and the major challenges in recruiting, training, and retaining the next generation workers?

What is the cost of going green? Actually no one really knows for sure and it depends on the scope of the transition. But a recent study by the consultancy, McKinsey & Company said this: “We found that if you look at those (energy) systems today, we’re spending about $5.7 trillion (annually) on both high-emissions spending (gas power or internal-combustion-engine-based vehicles) and some low-emissions spending. Under a transition scenario, over the next three decades, that $5.7 trillion would need to rise to $9.2 trillion (a year). Also, about 75 percent of that $5.7 trillion is going to high-emissions spending. Going forward, 75 percent would need to go toward low-emissions spending. So it’s not just a scale-up of capital; it’s a reallocation of capital.” The finance system is integrating net zero with new financing commitments and mechanisms, but a $41 trillion funding gap remains. We already spend a lot of money for the current energy economy based on fossil fuels. Another challenge is to keep the lights on and manufacturing plants working while others are building a new energy infrastructure. There are even carbon taxes in some places. The topic of climate finance isn’t something we think much about so we am glad to see that we have Brad Handler from the Sustainable finance Lab of the Payne Institute for Public Policy at the Colorado School of Mines on the episode to help us better understand where the public and private investments are going to come from.ReferencesSustainable Finance Lab at the Payne Institute for Public Policy https://payneinstitute.mines.edu/payne-institutes-latest-initiative-sustainable-finance-lab/World Economic Forum https://www.weforum.org/stories/2022/01/net-zero-cost-3-5-trillion-a-year/

A carbon market is a specialized type of financial market. Carbon markets facilitate the purchase and sale of carbon credits. Carbon credits are essentially permits that allow the purchaser to emit a certain amount of carbon dioxide or other greenhouse gases. Some carbon markets are run and regulated by governments or international bodies, with certain industries required to participate, while others are entirely voluntary. Carbon markets are a key element of cap-and-trade programs intended to reduce greenhouse gas emissions. In a cap-and-trade program (or an emissions trading system), governments or groups of governments cap emissions at certain levels and assign limits to participants, such as countries or companies. An entity that doesn’t use all of its carbon credits can sell them to one that expects to exceed its limits. We all need a better background on finance in general, but we are excited that we are going to talk to Staci Taruscio from Rebellion Energy Solutions and get an entrepreneur’s perspective on putting together a new type of company to deal with carbon emissions from plugging orphan oil wells, in a new market called a Voluntary Carbon Offset market. Some of the solutions to the energy transition must come from new business models as well as the traditional banks and government regulations. We need both public and market-based private capital solutions in the Future of Energy. Critics argue that Carbon offsets can be controversial, but advocates propose that they can be another market mechanism to address climate challenges. Keep an open mind as we talk to Staci.references:Rebellion Energy Solutions https://rebellionenergy.com/American Carbon Registry https://acrcarbon.org/news/american-carbon-registry-is-now-acr/ Voluntary Carbon Markets https://www.spglobal.com/commodity-insights/en/news-research/blog/energy-transition/061021-voluntary-carbon-markets-pricing-participants-trading-corsia-credits

Decarbonizing the world’s electricity supply will take more than solar panels and wind turbines. EVs need on-board batteries and grid-scale storage is required to solve the intermittency problems with their alternate energy sources. Batteries are going to be a critical element in the net-zero energy chain. The critical minerals that will be needed for all those batteries is going to require a lot of new sources for lithium, graphite, nickel, copper and cobalt and hopefully a way to recycle the batteries when they are done. Yes, a lot more mining and processing the minerals as well. Chinese companies have a big share of this market right now, at least in the processing segment, but the rest of the world, including the EU and the US are trying to catch up. Currently the best grid-scale storage relies on hydroelectric systems but in most places the dams and power plants are already installed. A solution like the Tesla Power Pack provides other options. But the reality is, we need to mine for materials that the future of energy will need. In this episode we will be talking to Dr. Priscilla Nelson from the Colorado School of Mines to learn more about the past and the future of mining.References: Tailings Center, Colorado School of Mines https://tailingscenter.com/ Colorado School of Mines Mining Department https://mining.mines.edu/Mine of the Future https://www.minesnewsroom.com/news/colorado-school-mines-helping-guide-industry-forward-mine-future