The resource curse, also known as the paradox of plenty or the poverty paradox, is the phenomenon of countries with an abundance of natural resources (such as fossil fuels and certain minerals) having less economic growth, less democracy, or worse development outcomes than countries with fewer natural resources. There are many theories and much academic debate about the reasons for and exceptions to the adverse outcomes. Most experts believe the resource curse is not universal or inevitable but affects certain types of countries or regions under certain conditions. In our final episode of season three of the Future of Energy, Kyle Koerner moderates a panel of three distinguished experts, Dr. Don Paul from ECET, USC, Tisha Schueller of Adamantane Energy and Trem Smith. Even our student podcasters get to ask the experts their questions. Thanks for all your support.

In an era defined by rapid technological advancement, rising global tensions, escalating environmental concerns and the quest for sustainable energy, our nation’s future hinges on strategic investments in the energy sector. Petroleum engineering enrollment and other disciplines related to subsurface energy resources like petroleum geology and the resulting degrees granted are greatly affected by oil and gas prices, and the changes lag prices by 2.5 years. But the academic timeline to produce new engineers is 4 to 5 years long. When industry petroleum engineering requirements increase, it will take several years to increase the supply of engineers to take advantage of the new opportunities. How does the industry deal with this time lag? Our topic for this episode is the next generation of energy workforce. We understand that you have recently prepared a paper on this topic for a Western Region SPE conference. What were your conclusions? What are the major challenges in recruiting, training, and retaining the next generation workers? Our topic for this episode is the next generation of energy workforce. Mike Hauser, working with researchers at USC recently prepared a paper on this topic for a Western Region SPE conference. We talk about his conclusions and the major challenges in recruiting, training, and retaining the next generation workers?

What is the cost of going green? Actually no one really knows for sure and it depends on the scope of the transition. But a recent study by the consultancy, McKinsey & Company said this: “We found that if you look at those (energy) systems today, we’re spending about $5.7 trillion (annually) on both high-emissions spending (gas power or internal-combustion-engine-based vehicles) and some low-emissions spending. Under a transition scenario, over the next three decades, that $5.7 trillion would need to rise to $9.2 trillion (a year). Also, about 75 percent of that $5.7 trillion is going to high-emissions spending. Going forward, 75 percent would need to go toward low-emissions spending. So it’s not just a scale-up of capital; it’s a reallocation of capital.” The finance system is integrating net zero with new financing commitments and mechanisms, but a $41 trillion funding gap remains. We already spend a lot of money for the current energy economy based on fossil fuels. Another challenge is to keep the lights on and manufacturing plants working while others are building a new energy infrastructure. There are even carbon taxes in some places. The topic of climate finance isn’t something we think much about so we am glad to see that we have Brad Handler from the Sustainable finance Lab of the Payne Institute for Public Policy at the Colorado School of Mines on the episode to help us better understand where the public and private investments are going to come from.ReferencesSustainable Finance Lab at the Payne Institute for Public Policy https://payneinstitute.mines.edu/payne-institutes-latest-initiative-sustainable-finance-lab/World Economic Forum https://www.weforum.org/stories/2022/01/net-zero-cost-3-5-trillion-a-year/

A carbon market is a specialized type of financial market. Carbon markets facilitate the purchase and sale of carbon credits. Carbon credits are essentially permits that allow the purchaser to emit a certain amount of carbon dioxide or other greenhouse gases. Some carbon markets are run and regulated by governments or international bodies, with certain industries required to participate, while others are entirely voluntary. Carbon markets are a key element of cap-and-trade programs intended to reduce greenhouse gas emissions. In a cap-and-trade program (or an emissions trading system), governments or groups of governments cap emissions at certain levels and assign limits to participants, such as countries or companies. An entity that doesn’t use all of its carbon credits can sell them to one that expects to exceed its limits. We all need a better background on finance in general, but we are excited that we are going to talk to Staci Taruscio from Rebellion Energy Solutions and get an entrepreneur’s perspective on putting together a new type of company to deal with carbon emissions from plugging orphan oil wells, in a new market called a Voluntary Carbon Offset market. Some of the solutions to the energy transition must come from new business models as well as the traditional banks and government regulations. We need both public and market-based private capital solutions in the Future of Energy. Critics argue that Carbon offsets can be controversial, but advocates propose that they can be another market mechanism to address climate challenges. Keep an open mind as we talk to Staci.references:Rebellion Energy Solutions https://rebellionenergy.com/American Carbon Registry https://acrcarbon.org/news/american-carbon-registry-is-now-acr/ Voluntary Carbon Markets https://www.spglobal.com/commodity-insights/en/news-research/blog/energy-transition/061021-voluntary-carbon-markets-pricing-participants-trading-corsia-credits

Decarbonizing the world’s electricity supply will take more than solar panels and wind turbines. EVs need on-board batteries and grid-scale storage is required to solve the intermittency problems with their alternate energy sources. Batteries are going to be a critical element in the net-zero energy chain. The critical minerals that will be needed for all those batteries is going to require a lot of new sources for lithium, graphite, nickel, copper and cobalt and hopefully a way to recycle the batteries when they are done. Yes, a lot more mining and processing the minerals as well. Chinese companies have a big share of this market right now, at least in the processing segment, but the rest of the world, including the EU and the US are trying to catch up. Currently the best grid-scale storage relies on hydroelectric systems but in most places the dams and power plants are already installed. A solution like the Tesla Power Pack provides other options. But the reality is, we need to mine for materials that the future of energy will need. In this episode we will be talking to Dr. Priscilla Nelson from the Colorado School of Mines to learn more about the past and the future of mining.References: Tailings Center, Colorado School of Mines https://tailingscenter.com/ Colorado School of Mines Mining Department https://mining.mines.edu/Mine of the Future https://www.minesnewsroom.com/news/colorado-school-mines-helping-guide-industry-forward-mine-future

The oil and gas industry is under increasing pressure to stop leaks of methane from their production operations. We read a lot about increasing regulations but in this episode we will talk to several experts about what the oil and gas industry is doing in response to the new laws. There is an interesting technology story here as well. Emerging technology from satellites, to planes and drones to sensors placed around a production facility are improving to help operators, inspectors and the local community, both identify and mitigate these leaks, sometimes called fugitive emissions. To find out what is going on and how well new inspection and facilities designs are working out, we will talk to Darcy Spady of Carbon Connect and get their field reports and thoughts about future operations. There is some good news in that emissions from large operators in North America and elsewhere are falling, not yet zero but a steady trend of less flares and emissions. But the job isn’t done yet and our experts can give us a progress report on where the industry performance stands in a KPI they call methane intensity.References: Carbon Connect International https://www.carbonconnectinternational.com/Oil and Gas Climate Initiative https://www.ogci.com/carbon-intensity-target/

To find the first geothermal power plant in the world you have to go to Tuscany, Italy in the early twentieth century. The creation of the first geothermal power plant was thanks to Prince Piero Ginori Conti of Trevignano. Conti initially worked for his father-in-law Florestano de Larderel in the processing of boric acid. It was through this work that Conti eventually found his way into geothermal energy with the creation of the first geothermal energy generator in 1904. Based at the Lardorello dry steam field, Conti’s generator was able to produce 10 kW of energy and power five light bulbs. From these humble beginnings, the geothermal potential of Lardorello was expanded in 1911. In an area known as the Devil’s Valley the world’s first geothermal power plant was completed in 1913. In this episode we talk with John Clegg of Hephae Energy on his career path from drilling oil and gas wells to developing drill bits and drilling tools for hot, dry rock for enhanced geothermal systems. Technology developed for unconventional oil and gas reservoirs may be the inspiration for this new industry. Innovation at work.ReferencesHephae Energy Technology https://www.linkedin.com/company/hephae-energy-technology/IADC Geothermal Well Classificaiton https://iadc.org/wp-content/uploads/2025/02/IADC-Geothermal-Well-Classification-v1.pdf

Geothermal energy is gaining traction as oil and natural gas majors funnel substantial investments into startups and projects that use drilling techniques akin to fracking to harness underground heat for clean power generation. Fervo Energy has recently announced a $244 million funding round, led by investors including Devon Energy and commodity trader Mercuria, while startups Eavor Technologies and Sage Geosystems have received backing from BP, Chevron and Chesapeake Energy. In this episode on the next generation geothermal we have the opportunity to talk to Dr. Will Fleckenstein about EGS or enhanced geothermal systems and his new startup company applying the oil and gas concept of conformance control to a geothermal reservoir. This industry is heating up , no pun intended.References:DOE Enhanced Geothermal Systems https://www.energy.gov/eere/geothermal/enhanced-geothermal-systems Fervo's Cape Station geothermal power plant https://capestation.com/

What is the role of AI in the future of Energy?You read about artificial intelligence or AI every day. But I was surprised that Ai could be a factor in the energy transition, both as a sophisticated way of developing new solutions and optimizing current processes but also as a new source of growing energy demand with the new data centers and computing chips that are very energy-hungry. Data centers are not what they used to be before the AI revolution. data centers have exploded in size in terms of power consumption. Ten years ago, a 30-megawatt (MW) center was considered large. Today, a 200-MW facility is considered normal and a 1GW center is proposed. I don’t think the utilities saw this coming. I think this was a surprise to most folks. In our episode today we have USC professor Dr. Benham Jafarpour from the USC Information Sciences Institute to help us better understand the opportunities and challenges of AI and how these new hyperscale data centers are impacting energy demand forecasts. Some of the tech companies from Silicon Valley are even turning to private power contracts where they negotiate deals with geothermal and even nuclear power generators to run their new data centers. The new AI GPU chips are very energy-hungry and have changed the way data centers have to be operated. This should be another real eye-opener for all of us.ReferencesSubsurface Energy and Environmental Systems (SEES) https://sees.usc.edu/ https://carboncredits.com/u-s-data-centers-power-demand-surges-to-46000-mw-whats-driving-the-growth/

Sometimes we worry too much about emerging technologies that we forget that there are powerful natural solutions as well, say like photosynthesis that takes carbon dioxide and water out of the air and converts it into chemical energy. Plants, especially hard wood trees, are the superheroes of the carbon cycle. The water cycle is essential for life. The problem is when human activity gets in the way of the earth’s processes that are trying to achieve balance for a livable planet. Maybe we should try to help the earth instead of fighting against it? As part of our “getting back to nature” episode, we have the privilege to talk to Flora Moon of Expressworks on nature-based solutions to climate change. We need to keep our minds open to different kinds of solutions for the Energy Transition and Flora is one of those experts we need to listen to. If we can better understand natural processes like the carbon cycle and the water cycle and help it along a little bit, we will have a powerful ally in the energy transition.

references

https://www.nature.org/en-us/what-we-do/our-insights/perspectives/natural-climate-solutions/

https://www.worldbank.org/en/news/feature/2022/05/19/what-you-need-to-know-about-nature-based-solutions-to-climate-change