Energy ResourcesSlide 2Slide 3U.S. Energy Flow 2002-2004 Domestic ProductionSlide 5Slide 6Slide 7U.S. Energy Flow 2004The Global Oil MarketSlide 10Slide 11Slide 12Slide 13Slide 14Impact of changes in oil pricesCrude Oil -- Elasticity of DemandSlide 17Slide 18Slide 19Energy ResourcesWednesday, March 15Energy Flow 2004 – United StatesSource: http://www.eia.doe.gov/emeu/aer/diagram1.html$Energy BTUsSDU.S. Energy MarketU.S. Energy Flow 2002-2004Domestic ProductionQuadrillion BTUs2002 2004Coal 22.55 22.69Natural Gas 19.56 19.34Crude Oil 12.31 11.53Nuclear 8.15 8.23Renewables 5.9 6.12Energy BTUs$Coal RenewablesCrudeScrSrScoDExample: Distribution of Consumption Among Alternative Sources of Energy, U.S.Energy BTUs$Coal RenewablesCrudeScrSrScoDDo energy costs reflect true costs of their use?Energy BTUs$Coal RenewablesCrudeScrSrScoDDo energy costs reflect true costs of their use?U.S. Energy Flow 2004Crude Oil(quad. BTUs)Total Energy(quad. BTUs)Domestic Production11.53 70.37Imported 27.68 33.00The Global Oil Markethttp://www.npr.org/news/specials/oilseries/global.html$Quantity of petroleumDomestic SupplySDDomestic DemandInternational SupplySIThe U.S. Petroleum Market:Graph #1PwQtQdimported$Quantity of petroleumDomestic SupplySDDomestic DemandInternational SupplySIThe U.S. Petroleum Market:Graph #2QdPdLossPwQd2Pd2$Quantity of petroleumDomestic SupplySDDomestic DemandInternational SupplySIThe U.S. Petroleum Market:Graph #3SI2PwPw2QdQtQdQt$Quantity of petroleumDomestic SupplySDDomestic DemandInternational SupplySIThe U.S. Petroleum Market:Graph #4PwQdSDQtQd$Quantity of petroleumDomestic SupplySDDomestic DemandInternational SupplySIThe U.S. Petroleum Market:Graph #5DQdQtQtImpact of changes in oil priceshttp://www.npr.org/news/specials/oilseries/conserve.htmlhttp://marketplace.publicradio.org/shows/2005/06/24/PM200506244.htmlhttp://marketplace.publicradio.org/shows/2005/06/24/PM200506245.htmlCrude Oil -- Elasticity of DemandCountry Short Run ElasticityLong Run ElasticityUnited States -0.061 -0.453France -0.069 -0.568New Zealand -0.054 -0.326Source: J.B.Cooper “Price Elasticity of Demand for Crude Oil: Estimates for 23 Countries.” OPEC Review, March 2003$Quantity of petroleumDomestic SupplySDDomestic DemandInternational SupplySIThe U.S. Petroleum Market:SI2Pw2Q$Quantity of petroleumDomestic SupplySDDomestic DemandInternational SupplySIThe U.S. Petroleum Market:SI2Pw2Q$Quantity of petroleumDomestic SupplySDDomestic DemandInternational SupplySIThe U.S. Petroleum Market:Graph #6SI2Pw2Welfare loss from