Arthur Berman: “The Devil is in the Diesel”

Episode 44
November 9, 2022

(Conversation Recorded on October 25, 2022.)

On this episode, petroleum geologist Arthur Berman returns to discuss recent diesel shortages and go into depth on the importance of diesel and the complexity of getting it and other products from a barrel of crude oil. He and Nate also talk about the nuances of the global oil market as it shifts from the effects of the Russian/Ukraine war. Is the USA really a net exporter of petroleum and energy independent? And would making every car and truck on the road electric powered free us from needing crude oil?

About Arthur Berman

Arthur E. Berman is a petroleum geologist with 36 years of oil and gas industry experience. He is an expert on U.S. shale plays and is currently consulting for several E&P companies and capital groups in the energy sector.

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In-depth report from Art Berman - Energy Aware #4: The Devil is in the Diesel

00:40 - Art Berman Info, PPT for Episode, and Previous TGS Episode, Diesel Price Increases

04:11 - Ukraine/Russia war effects on energy

06:25 - What is diesel? Why is it important? Why is it in the news? (Slide #10)

10:55 - Diesel is more energy dense, making it more efficient and cost-effective

11:49 - Why don’t we use diesel for everything?

12:15 - US oil is predominantly light, tight oil

12:40 - Henry Ford, First model ran on ethanol

13:18 - First fast rate reserve of oil in the US found in Spindletop

14:07 - Until the automobile, the main use of oil was kerosene for oil

14:23 - Rockefeller

15:17 - What are the differences in oil around the world?

18:33 - What is in a barrel of oil? (Slide #4)

19:15 - Propane, Butane, Methane (Slide #3) - Correction - Art misspoke saying propane is heavier than butane, in actuality butane is heavier than propane.

19:48 - A large portion of the oil going into US refineries is imported, because it needs the right type of oil (Slide #7-#9)

21:05 - How hot do they heat oil at refineries

22:27 - Chemistry of oil (slide #6)

23:20 - What are the lighter portions of a barrel of oil used for?

26:42 - The heavier oil is more polluting

27:00 - When within territorial waters ships are required to use lighter form of oil

27:30 - In 2020 the marine community reformed guidelines for fuel and fuel pollution at sea

28:25 - Paraffins

29:44 - We cannot make roads the way we do now without the bottom 10% of a barrel of oil (Slide #5)

30:55 - Vaclav Smil, 4 Pillars of Modern Civilization

32:05 - The cement making process is very energy intensive

33:25 - The Green Revolution and modern fertilizer is heavily dependent on petroleum and natural gas (Haber-Bosch Process)