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Apples, Oranges and Btu
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Last Updated: June 2006
Next Update: To Be Determined Assume that you have been assigned the responsibility of purchasing fuel for a large electric utility company. The 2004 average prices of fuel delivered to electric power plants were $27.42 per short ton of coal, $26.56 per 42-gallon barrel of oil, and $6.11 per thousand cubic feet of natural gas. Tons, barrels, cubic feet--how do you compare apples and oranges?
In 2004, a ton of coal used to generate electricity cost about 3 percent more than a barrel of oil and about five times as much as a thousand cubic feet of natural gas. However the thousand cubic feet of gas contained about 1 million Btu and the barrel of oil contained about 6 million Btu, while the ton of coal contained about 20 million Btu, over three times as much energy as the oil and 20 times as much as the gas. On a Btu basis, coal was cheaper. (Of course, cost is not the only consideration in selecting a fuel. Environmental restrictions, equipment costs, and other factors must also be taken into account.).
A single Btu is insignificant in terms of the Nation's energy consumption, or even in terms of energy use in a single household. One Btu is approximately equal to the energy released in the burning of a wood match. The average single-family household consumed 92 million Btu of energy in 2001. So on the family level, 1 million Btu is a meaningful quantity. Billions, trillions, and quadrillions of Btu are used to measure quantities of energy larger than those consumed by typical households. (Written out, 1 quadrillion is a 1 and 15 zeros.) To put those quantities in perspective, 1 million Btu equals about 8 gallons of motor gasoline. One billion Btu equals all the electricity that 300 households consume in one month. One trillion Btu is equal to 500 100-ton railroad cars of coal intended for electric power plants. And 1 quadrillion Btu is equal to 172 million barrels of crude oil. In 2004, the Nation used 100 quadrillion Btu of energy: 41 quadrillion Btu of petroleum, 23 quadrillion Btu of natural gas, 22 quadrillion Btu of coal, 8 quadrillion Btu of nuclear energy and 6 quadrillion Btu of renewable energy. More information on this subject can be found in the following EIA publications: Monthly Energy Review, Annual Energy Review, and Electric Power Annual.
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