Asking ChatGPT what all was made from petroleum produced surprising results - the answer: everything. Photo by Sanket Mishra/Unsplash

I sat down to have a conversation with ChatGPT from OpenAI about energy by-products; specifically, everyday items we use that contain some form of petrochemicals. My first prompt was rather broad, so I wasn’t surprised to get back a rather broad answer highlighting product categories instead of specific examples. Plastics, synthetic fibers, cleaning products, personal care products, medicines, paints & coatings, and adhesives were all succinctly summarized, but I wanted to dive deeper.

Given that AI has an almost limitless reach, I asked for a comprehensive list of all the products we use in everyday life that are made from petrochemicals. Turns out, ChatGPT has some healthy boundaries, so it pushed back, only offering a slightly more detailed list of the categories produced from the first prompt.

Not to be deterred, I asked for additional examples. I didn’t want to continue getting spoon-fed 10 items at a time, so I asked for 200. Less than comprehensive, more than the crumbs I was getting.

In entertaining fashion, ChatGPT told me compiling a list of 200 items might be challenging, but that it could offer up 100. The brazen negotiation made me smile.

I complimented the list and nudged a bit, encouraging ChatGPT it could come up with another 100 items if it tried. Much like a teenager wishes to stave off further questioning from a nosy parent, ChatGPT proffered up a second response of 100 items–almost half of which were simply things before which it added the qualifier “synthetic.” Salty.

As my intention is not to bore you, but rather enhance the knowledge of our readers by understanding how pervasive petrochemical products are in our everyday life, I settled on a more direct inquiry with a capped demand prompt: “What would you say are the 10 most surprising things in common everyday use that contain petrochemical products?”

Most of the answers featured wax-based products, like lotions, crayons, and lipstick–not necessarily earth-shattering realizations given my familiarity with cosmetics as petroleum by-products. I was pleasantly surprised to learn that chewing gum, with its synthetic rubber base enabling theoretically endless chewing, is derived from petroleum. I was also surprised to learn that many artificial sweeteners, like saccharin and aspartame, are made from petrochemicals. Huh.

There was one item on the list, however, that helped me see how truly pervasive the energy industry is, and not just for petrochemicals. Tucked in nonchalantly at #6 was Deodorant. My brain jumped immediately to the waxy base of a solid sweat deterrent, but my eyes got a curveball. ChatGPT writes, “Many deodorants contain aluminum, which is often derived from bauxite, a mineral that is usually mined from the earth using petroleum-powered machinery.” Now that was an answer I wasn’t expecting.

While my initial inference stood true – the smooth glide of a buttery solid antiperspirant is without a doubt derived from petrochemicals (not to mention the plastic packaging surrounding it), I wasn’t expecting ChatGPT to rope in the oft petroleum-fueled tools used to make said product. If that’s true, then nearly every item on the planet is derived from petroleum. Or at the very least, some source of energy. Regardless of whether the machinery used runs on gasoline, electricity, or wind power, literally almost everything that is produced on this earth is related to the energy industry.

Even if it’s hand-made, it’s technically still energy-adjacent, assuming we all bathe regularly with soap, yet another on the list of commonly used items derived from petroleum by-products. It’s certainly directly powering some manual activities, for those busting stress and bad breath with gum, or drinking a diet soda to power through. No pun intended.

I share this amusing tale simply to clarify the ubiquitous nature of energy in all parts of the modern world. As we look toward the #futureofenergy, we must be cognizant of its universal reach. It’s not necessarily realistic to switch from one source of energy to another overnight, but we do have a responsibility to seek cleaner, healthier, more efficient sources of energy while sustaining the life to which we have all grown accustomed.

Much like ChatGPT thought she couldn’t come up with 200 items derived from petroleum products, many think Houston will be unable to drive the Energy Transition, given our extensive petroleum focus. But like so many fellow Houstonians before us, we love a good challenge.

Just keep prompting us, and we’ll eventually unlock infinite potential for the #futureofenergy. It’s a limitless time to be in Houston, absorbing wisdom the city so willingly wants to share with the growing ecosystem of innovators. Just ask the growing number of almost 5,000 Energy-related firms in Houston. We’re just getting started.

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Lindsey Ferrell is a contributing writer to EnergyCapitalHTX and founder of Guerrella & Co.

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Houston-based co. closes acquisition of 50 percent stake in Texas cogeneration facility

M&A Moves

Fengate Asset Management announced the financial close on the acquisition of a 50 percent interest in Freeport Power Limited, which owns a 440-megawatt cogeneration facility in Freeport, Texas.

FPL is located near the Freeport Energy Center, which is a 260-megawatt cogeneration facility that is currently owned and managed by Fengate. The two facilities work to provide cost-effective power and steam to Dow’s Freeport site, which is the largest integrated chemical manufacturing complex in the Western Hemisphere.

“We are thrilled to have closed this acquisition, which aligns with our strategy of acquiring behind-the-meter cogeneration projects with strong industrial partners like Dow,” Greg Calhoun, managing director of Infrastructure Investments at Fengate, says in a news release.

Fengate was able to acquire interest in FPL under a strategic operating partnership with asset manager Ironclad Energy. The partnership with Ironclad was established in 2022 to acquire and operate cogeneration, district energy and other power generation projects throughout North America.

“This is our second acquisition with Fengate, and we look forward to continuing our partnership to optimize and expand the portfolio,” Christopher Fanella, president and CFO of Ironclad Energy, says in the release.

Fengate opened its first U.S. office in 2017 in Houston.

“Combined heat and power projects like FPL will continue to play an important role in the U.S. power industry – especially for hard-to-abate industrial sectors – to ensure reliability, efficiency and affordability,” adds in the release.

Houston energy leader on why the future of fuels is more than electric vehicles

guest column

Gasoline, diesel, bunker fuel, and jet fuel. Four liquid hydrocarbons that have been powering transportation for the last 100-plus years.

Gas stations, truck stops, ports, and airport fuel terminals have been built up over the last century to make transportation easy and reliable.

These conventional fuels release Greenhouse Gases (GHG) when they are used, and governments all over the world are working on plans to shift towards cleaner fuels in an effort to lower emissions and minimize the effects of climate change.

For passenger cars, it’s clear that electricity will be the cleaner fuel type, with most countries adopting electric vehicles (EVs), and in some cases, providing their citizens with incentives to make the switch.

While many articles have been written about EVs and the benefits that come along with them, they fail to look at the transportation system as a whole.

Trucks, cargo ships, and airplanes are modes of transportation that are used every day, but they don’t often get the spotlight like EVs do.

For governments to be effective in curbing transportation-related greenhouse emissions, they must consider all forms of transportation and cleaner fuel options for them as well.

43 percent of GHG emissions comes from these modes of transportation. Therefore, using electricity to reduce GHG emissions in light duty vehicles only accounts for part of the total transportation emissions equation.

The path to cleaner fuels for these transportation modes has its challenges.

According to Ed Emmett, Fellow in Energy and Transportation Policy at the Baker Institute Center for Energy Studies (CES);

  • "Airplanes cannot be realistically powered by electricity, at least not currently, and handle the same requisite freight and passenger loads"
  • "The long-haul trucking industry [...] pushed back against electrification as being impractical due to the size and weight of batteries, their limited range, and the cost of adoption"
  • "Shipowners have expressed reluctance to scrap existing bunker fueled ships for newer, more expensive ships, especially when other fueling options, e.g. biofuels and hydrocarbon derivatives-for fleets can be made available"

Finding low-cost, reliable, and environmentally sound fuels for the various segments of transportation is complex. As Emmett suggests in his latest article;

"Hovering over the transition to other fuels for almost every transportation mode is the question of dependability of supply. For the trucking industry, the truck stop industry must be able to adapt to new fuel requirements. For ocean shipping, ports must be able to meet the fuel needs of new ships. Airlines, air cargo carriers and airports need to be on the same page when it comes to aviation fuels. In other words, the adoption equation in transitions in transportation is not only a function of the availability and cost of the new technology but also a function of the cost of the full supply chain needed to support fuel production and delivery to the point of use. Going forward, the transportation industry is facing a dilemma: How are environmental concerns addressed while simultaneously maintaining operational efficiency and avoiding unnecessary upward cost shifts for moving goods and people? In answering that question, for the first time in history, modes of transportation may end up going in multiple different directions when it comes to the fuels each mode ultimately chooses."

This is why many forecasts predict that hydrocarbon demand will continue through 2050, despite ambitious aspirations of achieving net zero emissions by that year. The McKinsey "slow evolution" scenario has global liquid hydrocarbon demand in 2050 at 92mmb/d versus 103 mmb/d in 2023. With their "continued momentum" scenario, oil demand is 75 mmb/d. Proportionally, global oil demand related to GHG emissions from transportation would decline 11-27 percent. The global uptake of EVs is the primary driver of uncertainty around future oil demand. In all the McKinsey scenarios, the share of EVs in passenger cars sales is expected to be above 90 percent by 2050.

The Good News

Despite the relatively slow progress expected for reducing GHG emissions in the global transportation sector, there are solutions emerging that lower the carbon footprint tied to traditional petroleum-based fuels. Emmett highlights some of the methods under study, noting that "sustainable biofuels sourced from cooking oils, animal fats, and agriculture products, as well as hydrogen, methanol, ammonia, and various e-fuels are among the options being tested. Some ocean carriers are already ordering ships powered by liquified natural gas, bio-e-methanol, bio/e-methane, ammonia, and hydrogen. Airlines are already using sustainable aviation fuel as a supplement to basic aviation fuel. Railroads are testing hydrogen locomotives. The trucking industry is decarbonizing local delivery by using vehicles powered by electricity, compressed natural gas, and sustainable diesel. Long-haul trucking companies are considering sustainable diesel as a drop-in fuel for existing equipment, and fuel suppliers are researching new engines fueled by hydrogen and other alternative fuels."

Most of these options will require a combination of increased government incentives, along with advancements in technology and cost reductions.

McKinsey's "sustainable transformation" scenario, which considers potential shifts in government regulations as well as advancements in technology and cost, suggests there is moderate growth in alternative fuels alongside growth in EVs. Mckinsey projects;

  • EV demand could grow to over 90 percent of total passenger car sales by 2050
  • EVs to make up around 80 percent of commercial truck sales by 2050
  • In aviation, low carbon fuels such as biofuels, synfuels, hydrogen and electricity are projected to grow to 49 percent by 2050.

According to McKinsey, the combination of these alternatives along with demand changes in power and chemicals could reduce global oil demand to 60 mmb/d in 2050. The shift to cleaner fuels, for modes of transportation other than EVs, is underway but the progress and adoption will take decades to achieve according to McKinsey’s forecasts.

Looking more closely at EVs, the story may not be as dire globally as it seems to be in the West. While the U.S. appears to be losing momentum on electric vehicle adoption, China is roaring ahead. New electric car registrations in China reached 8.1 million in 2023, increasing by 35 percent relative to 2022. McKinsey’s forecasts have underestimated global EV sales in the past, with China surpassing their estimates, while the U.S. lags behind. It’s clear that China is the winner in EV adoption; could they also lead the way to adopt cleaner fuels for other modes of transport? That is something governments and the transportation industry will be watching in the years ahead.

Conclusion

While we are not on a trajectory to meet the aspirations to reduce global GHG emissions in the transportation sector, there are emerging solutions that could be adopted should governments around the world decide to put in place the incentives to get there. Moving forward, the future of transportation fuels will be shaped by a mix of innovation, government policies, and what consumers want. The focus will be on ensuring that the transportation sector remains reliable, secure, and economically robust, while also reducing GHG emissions. But, decarbonizing the transportation sector is much more than just EV's – it's a broader effort that will require continued global progress in each of the multiple transportation segments.

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Scott Nyquist is a senior advisor at McKinsey & Company and vice chairman, Houston Energy Transition Initiative of the Greater Houston Partnership. The views expressed herein are Nyquist's own and not those of McKinsey & Company or of the Greater Houston Partnership. This article originally ran on LinkedIn on October 9, 2024.

Houston company secures $10M contract to deliver subsea well decommissioning solution

big deal

Houston energy services provider Expro was awarded a contract valued at over $10 million for the provision of a well decommissioning solution.

The solution will combine subsea safety systems and surface processing design that can enable safe entry to the well and management of well fluids.

“The contract reinforces our reputation as the leading provider of subsea safety systems and surface well test equipment, including within the P&A sector,” Iain Farley, Expro’s regional vice president for Europe and Sub-Saharan Africa, says in a news release. "It demonstrates our commitment to delivering best-in-class equipment, allied with the highest standards of safety and service quality that Expro is renowned for.”

Expro will provide from its global support hub in Aberdeen, a surface fluid management package and a market-leading 7-3/8 inch large-bore subsea test tree assembly (SSTTA). This will include surface tree and controls that can provide dual barrier and disconnect capability to facilitate re-entry into the subsea wells.

Expro has been supplying its subsea safety systems and well test equipment to the construction of many of the 52 wells now being plugged and abandoned.

“Having been involved in the development phase for many of these fields, we have gained a life of well experience that will be invaluable for this P&A campaign,” Farley adds. “Our expertise and know-how will help deliver key technical and commercial benefits for the client across the project.”