Since oil fields are located only at certain places on Earth,[20] only some countries are oil-independent; the other countries depend on the oil-production capacities of these countries.
The theory that fossil fuels formed from the fossilized remains of dead plants by exposure to heat and pressure in Earth's crust over millions of years was first introduced by Andreas Libavius "in his 1597 Alchemia [Alchymia]" and later by Mikhail Lomonosov "as early as 1757 and certainly by 1763".[21] The first use of the term "fossil fuel" occurs in the work of the German chemist Caspar Neumann, in English translation in 1759.[22] The Oxford English Dictionary notes that in the phrase "fossil fuel" the adjective "fossil" means "[o]btained by digging; found buried in the earth", which dates to at least 1652,[23] before the English noun "fossil" came to refer primarily to long-dead organisms in the early 18th century.[24]
Aquatic phytoplankton and zooplankton that died and sedimented in large quantities under anoxic conditions millions of years ago began forming petroleum and natural gas as a result of anaerobic decomposition. Over geological time this organicmatter, mixed with mud, became buried under further heavy layers of inorganic sediment. The resulting high temperature and pressure caused the organic matter to chemically alter, first into a waxy material known as kerogen, which is found in oil shales, and then with more heat into liquid and gaseous hydrocarbons in a process known as catagenesis. Despite these heat-driven transformations, the energy released in combustion is still photosynthetic in origin.[4]
Terrestrial plants tended to form coal and methane. Many of the coal fields date to the Carboniferous period of Earth's history. Terrestrial plants also form type III kerogen, a source of natural gas. Although fossil fuels are continually formed by natural processes, they are classified as non-renewable resources because they take millions of years to form and known viable reserves are being depleted much faster than new ones are generated.[25][26]
Net income of the global oil and gas industry reached a record US$4 trillion in 2022.[27]After recovering from the COVID-19 pandemic, energy company profits increased with greater revenues from higher fuel prices resulting from the Russian invasion of Ukraine, falling debt levels, tax write-downs of projects shut down in Russia, and backing off from earlier plans to reduce greenhouse gas emissions.[28] Record profits sparked public calls for windfall taxes.[28]
Fossil fuels have been important to human development because they can be readily burned in the open atmosphere to produce heat. The use of peat as a domestic fuel predates recorded history. Coal was burned in some early furnaces for the smelting of metal ore, while semi-solid hydrocarbons from oil seeps were also burned in ancient times,[29] they were mostly used for waterproofing and embalming.[30]
Commercial exploitation of petroleum began in the 19th century.[31]
Natural gas, once flared-off as an unneeded byproduct of petroleum production, is now considered a very valuable resource.[32] Natural gas deposits are also the main source of helium.
Heavy crude oil, which is much more viscous than conventional crude oil, and oil sands, where bitumen is found mixed with sand and clay, began to become more important as sources of fossil fuel in the early 2000s.[33] Oil shale and similar materials are sedimentary rocks containing kerogen, a complex mixture of high-molecular weight organic compounds, which yield synthetic crude oil when heated (pyrolyzed). With additional processing, they can be employed instead of other established fossil fuels. During the 2010s and 2020s there was disinvestment from exploitation of such resources due to their high carbon cost relative to more easily-processed reserves.[34]
Prior to the latter half of the 18th century, windmills and watermills provided the energy needed for work such as milling flour, sawing wood or pumping water, while burning wood or peat provided domestic heat. The wide-scale use of fossil fuels, coal at first and petroleum later, in steam engines enabled the Industrial Revolution. At the same time, gas lights using natural gas or coal gas were coming into wide use. The invention of the internal combustion engine and its use in automobiles and trucks greatly increased the demand for gasoline and diesel oil, both made from fossil fuels. Other forms of transportation, railways and aircraft, also require fossil fuels. The other major use for fossil fuels is in generating electricity and as feedstock for the petrochemical industry. Tar, a leftover of petroleum extraction, is used in the construction of roads.
The energy for the Green Revolution was provided by fossil fuels in the form of fertilizers (natural gas), pesticides (oil), and hydrocarbon-fueled irrigation.[35][36] The development of synthetic nitrogen fertilizer has significantly supported global population growth; it has been estimated that almost half of the Earth's population are currently fed as a result of synthetic nitrogen fertilizer use.[37] According to head of a fertilizers commodity price agency, "50% of the world's food relies on fertilisers."[38]
The Global Carbon Project shows how additions to CO2 since 1880 have been caused by different sources ramping up one after another.
The burning of fossil fuels has a number of negative externalities – harmful environmental impacts where the effects extend beyond the people using the fuel. These effects vary between different fuels. All fossil fuels release CO2 when they burn, thus accelerating climate change. Burning coal, and to a lesser extent oil and its derivatives, contributes to atmospheric particulate matter, smog and acid rain.[39][40][41]
Air pollution from fossil fuels in 2018 has been estimated to cost US$2.9 trillion, or 3.3% of the global gross domestic product (GDP).[10]
Global surface temperature reconstruction over the last 2000 years using proxy data from tree rings, corals, and ice cores in blue.[42] Directly observational data is in red, with all data showing a 5 year moving average.[43]
Climate change is largely driven by the release of greenhouse gases like CO2, and the burning of fossil fuels is the main source of these emissions. In most parts of the world climate change is negatively impacting ecosystems.[44] This includes contributing to the extinction of species and reducing people's ability to produce food, thus adding to the problem of world hunger. Continued rises in global temperatures will lead to further adverse effects on both ecosystems and people; the World Health Organization has said that climate change is the greatest threat to human health in the 21st century.[45][46]
Combustion of fossil fuels generates sulfuric and nitric acids, which fall to Earth as acid rain, impacting both natural areas and the built environment. Monuments and sculptures made from marble and limestone are particularly vulnerable, as the acids dissolve calcium carbonate.
Fossil fuels also contain radioactive materials, mainly uranium and thorium, which are released into the atmosphere. In 2000, about 12,000 tonnes of thorium and 5,000 tonnes of uranium were released worldwide from burning coal.[47] It is estimated that during 1982, US coal burning released 155 times as much radioactivity into the atmosphere as the Three Mile Island accident.[48]
Burning coal also generates large amounts of bottom ash and fly ash. These materials are used in a wide variety of applications (see Fly ash reuse), utilizing, for example,[clarification needed] about 40% of the United States production.[49]
In addition to the effects that result from burning, the harvesting, processing, and distribution of fossil fuels also have environmental effects. Coal mining methods, particularly mountaintop removal and strip mining, have negative environmental impacts, and offshore oil drilling poses a hazard to aquatic organisms. Fossil fuel wells can contribute to methane release via fugitive gas emissions. Oil refineries also have negative environmental impacts, including air and water pollution. Coal is sometimes transported by diesel-powered locomotives, while crude oil is typically transported by tanker ships, requiring the combustion of additional fossil fuels.
A variety of mitigating efforts have arisen to counter the negative effects of fossil fuels. This includes a movement to use alternative energy sources, such as renewable energy. Environmental regulation uses a variety of approaches to limit these emissions; for example, rules against releasing waste products like fly ash into the atmosphere.[41]
In December 2020, the United Nations released a report saying that despite the need to reduce greenhouse emissions, various governments are "doubling down" on fossil fuels, in some cases diverting over 50% of their COVID-19 recovery stimulus funding to fossil fuel production rather than to alternative energy. The UN secretary general António Guterres declared that "Humanity is waging war on nature. This is suicidal. Nature always strikes back – and it is already doing so with growing force and fury." He also claimed there is still cause for hope, anticipating the US plan to join other large emitters like China and the EU in adopting targets to reach net zero emissions by 2050.[51][52][53]
Inflation effects
Fossilflation is a term that describes the impact of fossil fuels on inflation.[54][55]
According to Vox in August 2022, "Economists have pointed to energy prices as the main reason for high inflation," noting that "energy prices indirectly affect virtually every part of the economy".[54] Sectors that raise prices significantly as a result of higher fossil fuel prices include transportation, food, and shipping.[54]
History
Mark Zandi of Moody's says that fossil fuel prices have driven every big episode of inflation since WWII.[54]
Gernot Wagner argues that commodities are undesirable energy sources because they are susceptible to volatile price swings that technologies like renewable energy are not. He also argues that technologies improve and get relatively cheaper over time.[54][56] Coming out of the COVID-19 pandemic, some argued for the possibility of a base effect phenomenon due to cheaper than normal prices, such as for oil, at the onset of the pandemic, followed by above-average prices which exacerbated the perceived inflation.[57][58]
Inflation Reduction Act
While not expected to provide much short-term relief, the Inflation Reduction Act seeks to make the United States less dependent on fossil fuels and their ability to cause inflation in the economy.[54][59][56]Moody's estimates that by 2030, the bill could reduce the typical American household's spending on energy by more than $300 each year, in 2022 dollars.[54]
Illness and deaths
Deaths caused as a result of fossil fuel use (areas of rectangles in chart) greatly exceed those resulting from production of renewable energy (rectangles barely visible in chart).[60]
Environmental pollution from fossil fuels impacts humans because particulates and other air pollution from fossil fuel combustion may cause illness and death when inhaled. These health effects include premature death, acute respiratory illness, aggravated asthma, chronic bronchitis and decreased lung function. The poor, undernourished, very young and very old, and people with preexisting respiratory disease and other ill health are more at risk.[61] Global air pollution deaths due to fossil fuels have been estimated at over 8 million people (2018, nearly 1 in 5 deaths worldwide)[62] at 10.2 million (2019),[63] and 5.13 million excess deaths from ambient air pollution from fossil fuel use (2023).[64]
While all energy sources inherently have adverse effects, the data show that fossil fuels cause the highest levels of greenhouse gas emissions and are the most dangerous for human health. In contrast, modern renewable energy sources appear to be safer for human health and cleaner. The death rates from accidents and air pollution in the EU are as follows per terawatt-hour (TWh):
Energy source
Nos. of deaths per TWh
Greenhouse gas emissions (thousand tonnes/TWh)
Coal
24.6
820
Oil
18.4
720
Natural gas
2.8
490
Biomass
4.6
78–230
Hydropower
0.02
34
Nuclear energy
0.07
3
Wind
0.04
4
Solar
0.02
5
[65] As the data shows, coal, oil, natural gas, and biomass cause higher death rates and higher levels of greenhouse gas emissions than hydropower, nuclear energy, wind, and solar power. Scientists propose that 1.8 million lives have been saved by replacing fossil fuel sources with nuclear power.[66]
Phase-out
Bloomberg NEF reported that in 2022, global energy transition investment equaled fossil fuels investment for the first time.[67]
This article needs to be updated. The reason given is: Needs to incorporate developments in international law and climate law which now recognise just transition. Please help update this article to reflect recent events or newly available information.(September 2024)
As of 2021, 1,300 institutions possessing US$14.6 trillion have divested from the fossil fuel industry.[70]
Fossil fuel divestment or fossil fuel divestment and investment in climate solutions is an attempt to reduce climate change by exerting social, political, and economic pressure for the institutional divestment of assets including stocks, bonds, and other financial instruments connected to companies involved in extracting fossil fuels.[71]
Fossil fuel divestment campaigns emerged on college and university campuses in the United States in 2011 with students urging their administrations to turn endowment investments in the fossil fuel industry into investments in clean energy and communities most impacted by climate change.[72] In 2012, Unity College in Maine became the first institution of higher learning to divest[73] its endowment from fossil fuels.
By 2015, fossil fuel divestment was reportedly the fastest growing divestment movement in history.[74] As of July 2023, more than 1593 institutions with assets totalling more than $40.5 trillion in assets worldwide had begun or committed some form of divestment of fossil fuels.[75]
Divesters cite several reasons for their decisions. To some, it is a means of aligning investments with core values; to others, it is a tactic for combatting the fossil fuel industry; to others, it is a way to protect portfolios from climate-related financial risk.[76] Financial research suggests that, in the longer term, fossil fuel divestment has positively impacted investors' returns.[77][78]
In 2019, Saudi Aramco was listed and it reached a US$2 trillion valuation on its second day of trading,[79] after the world's largest initial public offering.[80]
Despite the G20 countries having pledged to phase-out inefficient fossil fuel subsidies,[85] as of 2023[update] they continue because of voter demand,[86][87] or for energy security.[88] Global fossil fuel consumption subsidies in 2022 have been estimated at one trillion dollars;[84] although they vary each year depending on oil prices, they are consistently hundreds of billions of dollars.[89]
The fossil fuels lobby includes paid representatives of corporations involved in the fossil fuel industry (oil, gas, coal), as well as related industries like chemicals, plastics, aviation and other transportation.[90] Because of their wealth and the importance of energy, transport and chemical industries to local, national and international economies, these lobbies have the capacity and money to attempt to have outsized influence on governmental policy. In particular, the lobbies have been known to obstruct policy related to environmental protection, environmental health and climate action.[91]
Lobbies are active in most fossil-fuel intensive economies with democratic governance, with reporting on the lobbies most prominent in Canada, Australia, the United States and Europe, however the lobbies are present in many parts of the world. Big Oil companies such as ExxonMobil, Shell, BP, TotalEnergies, Chevron Corporation, and ConocoPhillips are among the largest corporations associated with the fossil fuels lobby.[92] The American Petroleum Institute is a powerful industry lobbyist for Big Oil with significant influence in Washington, D.C.[93][94][95] In Australia, Australian Energy Producers, formerly known as the Australian Petroleum Production and Exploration Association (APPEA), has significant influence in Canberra and helps to maintain favorable policy settings for Oil and Gas.[96]
^"fossil". Oxford English Dictionary (Online ed.). Oxford University Press. (Subscription or participating institution membership required.) – "fossil [...] n. [...] Something preserved in the ground, esp. in petrified form in rock, and recognizable as the remains of a living organism of a former geological period, or as preserving an impression or trace of such an organism."
^ abWagner, Gernot (23 February 2024). "The Ukraine War Blew Up the World's Energy Economy". heatmap.news. Retrieved 18 August 2024. Throughout the most recent U.S. spike in inflation in 2022, the energy category alone was responsible for around half of total inflation. And that's just counting the direct effects. Indirectly, a good portion of the food price increases ever since are also due to higher energy costs. If the farmer pays more to harvest the crop, soon those commodity prices increase as well. Of course, it isn't all fossil fuels...The IRA has not and will not cut inflation overnight. But that fight is indeed a big part of the bill's legacy: Play the long game of tackling all three types of climate-related inflation — fossilflation, climateflation, and greenflation — at their very core, and indeed justify the law's name.
^Ritchie, Hannah; Roser, Max (2021). "What are the safest and cleanest sources of energy?". Our World in Data. Archived from the original on 15 January 2024. Data sources: Markandya & Wilkinson (2007); UNSCEAR (2008; 2018); Sovacool et al. (2016); IPCC AR5 (2014); Pehl et al. (2017); Ember Energy (2021).
^Liodakis, E; Dashdorj, Dugersuren; Mitchell, Gary E. (2011). The nuclear alternative: Energy Production within Ulaanbaatar, Mongolia. AIP Conference Proceedings. Vol. 1342. p. 91. Bibcode:2011AIPC.1342...91L. doi:10.1063/1.3583174.
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