This has to be one of the most profound questions of the century, because we can produce less-costly and cleaner fuel right here at home—fuels that are fully compatible with our existing petroleum pipeline infrastructure and that can be used to run our vehicles on a days notice.
Part of the reason we are importing $200 billion in crude oil per year is because the people of our great country are not aware that we are capable of replacing the crude oil with fuels made right here in the USA.
Within the continental U.S., we have the capability and resources to replace all imported crude oil with synthetic fuels produced from coal, natural gas, and biomass. These fuels can be produced for less than $1.00 per gallon in the near future with prices less than $0.75 per gallon achievable in the 10-year timeframe. These fuels would be fully compatible with our liquid fuel pipeline infrastructure and have the potential to be considerably cleaner than current diesel fuels. Furthermore, production of these fuels could be incorporated with electrical power generation, ammonia production, and production of certain chemicals with improved efficiencies and lower costs for these products—this is achievable in the 10-year timeframe.
Fischer-Tropsh fuels can be produced in vast quantities for less than $1.00 per gallon. The following are a few facts about these fuels:
- Invented in 1930’s in Germany.
- The first commercial facilities converted coal to diesel and jet fuel during WWII in Germany. These were known as Germany’s synthetic fuel industry.
- After WWII, the technology was taken from Germany and pilot plants were built in the U.S.
- In the 1950’s, South Africa built commercial plants. South Africa continues use of this technology today producing liquid fuels from coal and natural gas.
- Shell Oil has a 1990’s vintage production plant in Indonesia and was selling product to the California market for $28 per barrel in 1997.
- Major oil companies are pursuing this technology more than any other to provide a replacement for crude oil when their reserves run out. The major oil companies know that Fischer-Tropsch technology is the technology that will replace drilling for crude oil.
You have not heard much about these fuels because they are not backed by the big lobbyist groups that back other alternative fuels. Also, these fuels are past the “exciting claims” research stage like fuel cell technology. These fuels have been produced for decades; they are being produced and used today.
The time is right for the leaders of our great country to take this technology forward. The American people and U.S. economy will be the benefactors of this technology.
Countries like Iran and Iraq will largely determine their own fate on this issue. Combined, they have $8-$20 trillion in oil reserves. Depending upon the rigor with which the U.S. advances domestic production of Fischer-Tropsch technology, the reserves could retain their value or become obsolete and worthless. The ability of the U.S. to totally depreciate the value of the oil reserves of Iran and Iraq could be the greatest incentive for these and other countries to become better neighbors.
The best fit for U.S. interests is the production of Fischer-Tropsch liquid fuels from coal. This would cost a bit more in the short term than production from natural gas, but the long-term costs would be less. Also, production from coal will have the greatest economic impact on the U.S. economy. Also, production from coal could lead to the more-efficient production of electricity as well as the efficient production of other valuable chemicals like ammonia.
The activities of the major oil companies on this technology is best indirectly determined by a thorough scrutiny of the large number of patents they have filed on this technology.
Galen J. Suppes
Professor of Chemical Engineering
University of Missouri – Columbia