The Battery Series
Part 2: Our Energy Problem: Putting the Battery in Context
The Battery Series is a five-part infographic series that explores what investors need to know about modern battery technology, including raw material supply, demand, and future applications.
Our Energy Problem: Putting the Battery in Context
In Part 1, we examined the evolution of battery technology. In this part, we examine what batteries can and cannot do, and the energy problem that humans hope that batteries can help solve.
Batteries enable many important aspects of modern life.
They are portable, quiet, compact, and can start-up with the flick of a switch. Importantly, batteries can also store energy from the sun and wind for future use.
However, batteries also have many limitations that prevent them from taking on an even bigger role in society. They must be recharged, and they hold a limited amount of energy. A single battery cycle is only so long, and after many of them they begin to lose potency.
Therefore, to understand the market for batteries and how it may look in the future, it is essential to understand what a battery can and cannot do.
The biggest difference between batteries and other fuel types is in energy density.
Even the best lithium-ion batteries have a specific energy of about 250 Wh/kg. That is just 2% of the energy density of gasoline, and less than 1% of hydrogen.
While it may be enough to power a car, it’s also magnificent engineering that helps makes this possible. Airplanes, ships, trains, and other large power drains will not be using batteries in powertrains anytime soon.
A Renewable Future?
Renewable energy sources like solar and wind face a similar problem – today’s battery technology cannot store big enough payloads of energy. To balance the load, excess energy must be stored somehow to be used when the sun isn’t shining and the wind isn’t blowing.
Currently, industrial-strength battery systems are not yet fully developed to handle this storage problem on a widespread commercial basis, though progress is being made in many areas. New technologies such as vanadium flow batteries could play an important role in energy storage in the future. But for now, large-scale energy storage batteries are experimental.
Other energy storage technologies may also solve this problem:
- Chemical storage: Using excess electricity to create hydrogen fuel, which can be stored.
- Pumped hydro: Using electricity to pump water up to a reservoir, which can be later used to generate hydroelectric power.
- Compressed air: Using electricity to compress air in deep caverns, which can be released to generate power.
Solving this energy storage problem will pave the way for more use of renewables in the future on a grander scale.
The Sweet Spot
Therefore, the sweet spot for battery use today comes when batteries can take advantage of their best properties. Batteries can be small, portable, charged on the go, and provide energy at the flick of a switch.
It’s why so many rechargeable batteries are used in: electronics, laptops, smartphones, electric cars, power tools, startup motors, and other portable items that can benefit from these traits.
To assess the suitability of a particular type for any specific use, there are 10 major properties worth looking at:
- High Specific Energy: Specific energy is the total amount of energy stored by a battery. The more energy a battery can store, the longer it can run.
- High Specific Power: Specific power is the amount of load current drawn from the battery. Without high specific power, a battery cannot be used for the high-drain activities we need
- Affordable Cost: If the price isn’t right for a particular battery type, it may be worth using an alternative fuel source or battery configuration for economic reasons
- Long Life: The chemical makeup of batteries isn’t perfect. As a result, they only last for a number of charge/discharge cycles – if that number is low, that means a battery’s use may be limited.
- High Safety: Batteries are used in consumer goods or for important industrial or government applications – none of these parties want batteries to cause safety issues.
- Wide Operating Range: Some chemical reactions don’t work well in the cold or heat – that’s why it’s important to have batteries that work in a range of temperatures where it can be useful.
- No Toxicity: Nickel cadmium batteries are no longer used because of their toxic environmental implications. New batteries to be commercialized must meet stringent standards in these regards.
- Fast Charging: What good would a smartphone be if it took two full days to recharge? Charge time matters.
- Low Self-Discharge: All batteries discharge small amounts when left alone over time – the question is how much, and does it make an impact on the usability of the battery?
- Long Shelf Life: The shelf life of batteries affects the whole supply chain, so it is important that batteries can be usable many years after being manufactured.
There are many pros and cons to consider in choosing a battery type. The more pros that a given battery technology can check off the above list, the more likely it is to be commercially viable.
Now that you know what batteries can and cannot do, we will now look at the rechargeable battery market in Part 3 of the Battery Series.
What’s Made from a Barrel of Oil?
Oil is a building block that makes modern life possible. Here are the proportion of finished products that are created from a barrel of oil.
What Products Are Made from a Barrel of Oil?
From the gasoline in our cars to the plastic in countless everyday items, crude oil is an essential raw material that shows up everywhere in our lives.
With around 18 million barrels of crude oil consumed every day just in America, this commodity powers transport, utilities, and is a vital ingredient in many of the things we use on a daily basis.
This graphic visualizes how much crude oil is refined into various finished products, using a barrel of oil to represent the proportional breakdown.
Barrel of Oil to Functional Fuel and More
Crude oil is primarily refined into various types of fuels to power transport and vital utilities. More than 85% of crude oil is refined into fuels like gasoline, diesel, and hydrocarbon gas liquids (HGLs) like propane and butane.
Along with being fuels for transportation, heating, and cooking, HGLs are used as feedstock for the production of chemicals, plastics, and synthetic rubber, and as additives for motor gasoline production.
|Refined Crude Oil Product||Share of Crude Oil Refined|
|Hydrocarbon gas liquids||2.0%|
Source: Canadian Association of Petroleum Producers
Crude oil not only powers our vehicles, but it also helps pave the roads we drive on. About 4% of refined crude oil becomes asphalt, which is used to make concrete and different kinds of sealing and insulation products.
Although transportation and utility fuels dominate a large proportion of refined products, essential everyday materials like wax and plastic are also dependent on crude oil. With about 10% of refined products used to make plastics, cosmetics, and textiles, a barrel of crude oil can produce a variety of unexpected everyday products.
Personal care products like cosmetics and shampoo are made using petroleum products, as are medical supplies like IV bags and pharmaceuticals. Modern life would look very different without crude oil.
The Process of Refining Crude Oil
You might have noticed that while a barrel of oil contains 42 gallons, it ends up producing 45 gallons of refined products. This is because the majority of refined products have a lower density than crude oil, resulting in an increase in volume that is called processing gain.
Along with this, there are other inputs aside from crude oil that are used in the refining process. While crude oil is the primary input, fuel ethanol, hydrocarbon gas liquids, and other blending liquids are also used.
|U.S. Refiner and Blender Inputs||Share of Total|
|Hydrocarbon gas liquids||3.0%|
The process of refining a 30,000-barrel batch of crude oil typically takes between 12-24 hours, with refineries operating 24 hours a day, 365 days a year. Although the proportions of individual refined products can vary depending on market demand and other factors, the majority of crude oil will continue to become fuel for the world’s transport and utilities.
The Difficulty of Cutting Down on Crude Oil
From the burning of heavy fuels that tarnish icebergs found in Arctic waters to the mounds of plastic made with petrochemicals that end up in our rivers, each barrel of oil and its refined products impact our environment in many different ways.
But even as the world works to reduce its consumption of fossil fuels in order to reach climate goals, a world without crude oil seems unfathomable.
Skyrocketing sales of EVs still haven’t managed to curb petroleum consumption in places like Norway, California, and China, and the steady reopening of travel and the economy will only result in increased petroleum consumption.
Completely replacing the multi-faceted “black gold” that’s in a barrel of oil isn’t possible right now, but as electrification continues and we find alternatives to petrochemical materials, humanity might at least manage to reduce its dependence on burning fossil fuels.
Mapped: Visualizing U.S. Oil Production by State
The U.S. is the largest oil producer in the world. Here we map the share of oil production in the country by all 50 states in 2020.
Mapped: Visualizing U.S. Oil Production by State
In 2018, the United States became the world’s top crude oil producer. It has strongly held this position ever since.
According to the U.S. Energy Information Administration (EIA), the country accounted for nearly 15% of the world’s total oil production in 2020, churning out close to 13 million barrels of crude oil per day—more than Russia or Saudi Arabia.
Although total U.S. oil production declined between 1985 and 2008, annual production increased nearly every year from 2009 through 2019, reaching the highest amount on record in 2019.
The Dominant Oil Producing States
Impressively, 71% of total U.S. oil production came from just five states. An additional 14.6% came from the Gulf of Mexico, which is a federal jurisdiction.
Here are the five states that produce the largest amount of crude oil:
|Share of Total Production|
Rounding the top 10 are states like Alaska, California, Wyoming, Louisiana, and Utah.
Texas is undoubtedly the largest oil-producing state in the United States. In 2020, Texas produced a total of 1.78 billion barrels of oil. Texas is home to the most productive U.S. oil basin, the Permian, routinely accounting for at least 50% of total onshore production. A distant second is North Dakota, which produced about 431.2 million barrels of oil in 2020.
Regional Distribution of U.S. Oil Production
A total of 32 of the 50 U.S. states produce oil. They are divided among five regional divisions for oil production in the U.S., known as the Petroleum Administration for Defense Districts (PADD).
These five regional divisions of the allocation of fuels were established in the U.S. during the Second World War and are still used today for data collection purposes.
Given that Texas is the largest U.S. oil-producing state, PADD 3 (Gulf Coast) is also the largest oil-producing PADD. PADD 3 also includes the federal offshore region in the Gulf of Mexico. There are around 400 operational oil and gas rigs in the country.
Impact of U.S. Oil Production on Employment
Rapid growth in oil production using advanced drilling methods has created high-paying jobs in states like North Dakota and Texas.
Thanks to the rapid development in the Bakken Shale formation, North Dakota boasts the nation’s lowest unemployment rate. The state has also grown personal income and state economic output at a fast rate, due to oil and gas industry growth.
Oil production from the Eagle Ford Shale has transformed a relatively poor region of South Texas into one of the nation’s most significant economic development zones. In fact, due largely to the oil and natural gas industry, the Texas Comptroller estimates that Texas has recovered 100% of the jobs lost during the Great Recession.
Looking to the Future
The U.S. slashed its oil production forecast through next year just as OPEC and its allies begin to roll back their production cuts in the coming months.
U.S. oil output will drop to 11.04 million barrels a day this year, down from a forecasted 11.15 million. This was a result of the deep freeze that shut down the oil industry in Texas. The EIA also lowered its output forecast for 2022 by 100,000 barrels a day.
Despite its forecast for a rise in supply from outside the cartel this year, OPEC said in its report that it is uncertain about the levels of investment expected to determine the non-OPEC supply outlook for the years to come.
Green2 weeks ago
The World’s 25 Largest Lakes, Side by Side
Science3 weeks ago
Comparing the Size of The World’s Rockets, Past and Present
Misc4 weeks ago
Every Single Cognitive Bias in One Infographic
Misc1 week ago
All World Languages in One Visualization
Economy7 days ago
The 20 Fastest Growing Jobs in the Next Decade
Technology4 weeks ago
Which Companies Belong to the Elite Trillion-Dollar Club?
Misc2 weeks ago
Razor Thin: A New Perspective on Earth’s Atmosphere
Misc3 weeks ago
Visualizing the Highest-Paid Athletes in 2021