energy market Factors affecting that competition and the ability of SSP to enter the competition are discussed briefly below by fuel type. Oil is projected to be the predominant source of energy consumed through 2010, with consumption in creasing from 136.3 quadrillion Btu in 1992 to 181.3 quadrillion Btu (nominal case) in 2010. The projected increase is the largest of any single fuel considered in this analysis. Some oil (about 6% of U.S. petroleum use) is in the form of products such as asphalt, road oil, lubes, and waxes - a market unique to oiL The principal use of oil is liquid fuels for mobile and stationary engines and boilers, and for heating. Oil consumed for transportation is projected to account for about two-thirds of oil consumed in the United States through 2010. A high percentage of projected oil usage through 2010 will be for liquid fuels for transportation in both developed and developing countries. In developing countries, it is expected that there will be increased use of petroleum products as fuels for cooking and heating. Coal is projected to remain the second largest source of energy consumed in 2010, with consumption increasing from 88.9 quadrillion Btu in 1992 to 118.0 quadrillion Btu. The projected increase is smaller than the projected increase for oil or for natural gas. Coal has uses in metallurgy (about 25% of world use) for which other sources of energy cannot compete. The principal use of coal has been production of steam for generation of baseload electricity. Generation of electricity is projected to account for about 88% of coal consumed in the United States in 2010, and to be a principal use of coal world-wide (about two-thirds of the projected increase in use of coal is in non-OECD Asia). Despite environmental disadvantages, coal can be expected to be used heavily in 2010 and beyond, particularly in developing nations. Coal reserves are widely distributed and coal prices are competitive with those for other primary fuels. There is a well-developed production and distribution system that can supply coal routinely to users world-wide (albeit with difficulty for remote sites). Where new technologies are not available or are very expensive, coal will be used readily with older and cheaper technologies. Natural gas is projected to remain the third largest source of energy consumed in 2010, with consumption increasing from 74.3 quadrillion Btu in 1992 to 106.8 quadrillion Btu (nominal case). The projected increase is second only to that for oil The principal use of natural gas is burning to produce heat, although an increasing amount is being used as fuel for engines and turbines. 19% of gas consumption projected for the United States in 2010 is for generation of electricity by electric utilities. Natural gas is replacing both oil and coal as the preferred fuel for electric power generation in areas where environ-mental standards require reduced levels of emissions. Sources of natural gas are widely distributed and users do not have to depend on a limited number of major producers. Distribution of natural gas presents some problems, however, that are not found in distribution of oil or coal. It can be moved by pipeline from source to consumer where conditions are suitable for construction and maintenance of pipelines. Otherwise, it must be liquefied for transport, which adds considerably to its delivered cost. Some areas with large reserves of gas will have to make large investments in transportation and distribution infrastructure to make use of those reserves. Renewable energy is projected to increase its share of total energy consumption from about 8% in 1992 to about 9% in 2010, with consumption increasing from 26.8 quadrillion Btu in 1992 to 41.1 quadrillion Btu in 2010 (nominal case). The increase is about half as large as the increase in consumption of coal.
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