Environmental Engineering Reference
In-Depth Information
consumption will dangerously deplete already dwindling coal reserves. In a
study for the European Commission, Kavalov and Peteves provide a succinct
overview of trends in the coal industry:
• (Duemostlytoacceleratedconsumption),from2000to2005,theworld's
proven reserves-to-production ratio of coal in fact dropped by almost a
third, from 277 to 155 years.
• Coalproductioncostsaresteadilyrisingallovertheworldduetotheneed
to develop new ields, increasingly diicult geological conditions, and
additional infrastructure costs associated with the exploitation of new
ields.
• heUSAandChina—formerlargenetexporters—aregraduallyturning
into large net importers with an enormous potential demand, together
with India.
• hesetrendssuggestalikelysigniicantincreaseofworldcoalpricesin
the coming decades.
25
Recently, the costs of other fossil fuel stocks have not fared much bet-
ter than coal. hroughout the twentieth century, the price of oil averaged
US$24.98 per barrel with major price luctuations occurring only during
times of major global economic disruption.
26
However, as Figure 1.6 illus-
trates, since mid-1990 oil prices have sharply escalated. Given that the price
plunge in 2008 can be attributed to a massive global economic downturn,
it appears that an equilibrium price exceeding US$100 per barrel is likely.
140
120
100
80
60
40
20
0
Figure 1.6
. Europe Brent Spot Price FOB (US$ Dollars per Barrel in nominal prices)
Source of Data
: US Energy Information Administration website (2011).
