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16                                                     INTRODUCTION

              Oil‐importing countries can attempt to minimize their dependence on imported
           oil by developing technologies that reduce the cost of alternative energy. If an oil‐
           importing country  contains mature  oil reservoirs,  the development of  relatively
             inexpensive technologies for producing oil remaining in mature reservoirs or the
           imposition of economic incentives to encourage domestic oil production can be used
           to reduce the country’s dependence on imported oil.


           1.5  PETROLEUM AND THE ENVIRONMENT

           Fossil fuels—coal, oil, and natural gas—can harm the environment when they are
           consumed. Surface mining of coal scars the environment until the land is reclaimed.
           Oil pollutes everything it touches when it is spilled on land or at sea. Pictures of wild-
           life covered in oil or natural gas appearing in drinking water have added to the public
           perception of oil and gas as “dirty” energy sources. The combustion of fossil fuels
           yields environmentally undesirable by‐products. It is tempting to conclude that fossil
           fuels have always harmed the environment. However, if we look at the history of
           energy consumption, we see that fossil fuels have a history of helping protect the
           environment when they were first adopted by society as a major energy source.
              Wood was the fuel of choice for most of human history and is still a significant
           contributor to the global energy portfolio. The growth in demand for wood energy
           associated with increasing population and technological advancements such as the
           development of the steam engine raised concerns about deforestation and led to a
           search for new source of fuel. The discovery of coal, a rock that burned, reduced the
           demand for wood and helped save the forests.
              Coal combustion was used as the primary energy source in industrialized societies
           prior to 1850. Another fuel, whale oil, was used as an illuminant and joined coal as
           part of the nineteenth‐century energy portfolio. Demand for whale oil motivated the
           harvesting of whales for their oil and was leading to the extinction of whales. The dis-
           covery that rock oil, what we now call crude oil, could also be used as an illuminant
           provided a product that could be substituted for whale oil if there was enough rock oil
           to meet growing demand. In 1861, the magazine Vanity Fair published a cartoon
           showing whales at a Grand Ball celebrating the production of oil in Pennsylvania.
           Improvements in drilling technology and the discovery of oil fields that could provide
           large volumes of oil at high flow rates made oil less expensive than coal and whale oil.
           From an environmental perspective, the substitution of rock oil for whale oil saved the
           whales in the latter half of the nineteenth century. Today, concern about the harmful
           environmental effects of fossil fuels, especially coal and oil, is motivating a transition
           to more beneficial sources of energy. The basis for this concern is considered next.


           1.5.1  Anthropogenic Climate Change
           One environmental concern facing society today is anthropogenic climate change.
           When a carbon‐based fuel burns in air, carbon reacts with oxygen and nitrogen in
           the  air  to  produce  carbon  dioxide  (CO ),  carbon  monoxide,  and  nitrogen  oxides
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