Advanced Energy Research Corporation

To better understand the real meaning of TrueFuelä by Advanced Energy Research Corporation, we need to know the past, present and future energy situation.

In the Beginning

If we were going to imagine man’s progress as a historical timeline of energy laid out before us, we could see the energy timeline beginning with fire.

Moving forward in time into the past thousands of years, you can now see man burning wood, burning oil from plants.

Now move forward into recent centuries and see mankind starting to use coal. Coal is the fuel of the industrial revolution – steam engines, railroad trains, houses, etc.

Petroleum Arrives

Now move up to one hundred years ago. See oildiscovered in Pennsylvania. Now see the progress of the oil business. See the Standard Oil monopoly. Watch the growth of the large international oil companies.

Now move youself into the last half of the Twentieth Century. You see the coming of nuclear energy and its grows to 8% of energy use. The growth of nuclear energy stops after the Three Mile Island and Chernobyl disasters.

Suddenly, you start to become alarmed at more and more bad things associated with or coming from petroleum.

You look at this time, and you find yourself becoming grealy alarmed by oil price increases and the Oil Embargo of the 1970s. You see the huge economic disaster in this Oil Embargo. You see the lines at the gas stations.

Pollution Arrives

Moving forward from there, you find more and more bad things from oil and coal – air pollution, acid rain, massive oil spills, like the Exxon Valdez, and suddenly global warming appears.

You now see the US spending more and more on military forces in the Middle East.

You discover wild swings in oil prices and this makes it almost impossible to predict energy costs.

You see the California energy crisis at the turn of the century.

Yet even though you find these problems growing and growing, you are horrified that the world stays addicted to oil and fossil fuels.

You see failing attempts at other types of energy. You also notice that renewable energy accounts for a mere 7% of all energy. Half of that renewable energy is hydroelectric power.

Dirty fossil fuel still has 85% of the market.

The Near Present

Move into the near present and look now at the year 2003.

The President has just announced a huge investment in the hydrogen economy but nothing meaningful happends.

We are in Iraq. Oil prices are moving much higher. Concern about fossil fuels has never been greater.

You see the dangers of energy security coming from hatred of the U.S. in the Middle East.

You see global warming and other pollution problems.

The United States spends hundreds of billions per year for foreign oil. The United States also spends $100 billion on the war in Iraq and will spend billions more per year to rebuild Iraq.

The U.S. will also spend tens of billions per year on pollution expenses associated with the use of oil. As the real total cost of a barrel of oil approaches $50 per barrel, you see people horrified.

Now

And now you see the price of a barrel of oil jump to $130, yet the Saudis, the swing producers fail to do much to increase production.

Global warming fixates planetary attention as a looming disaster for the human race. Nothing effective is being done.

The future from here does not look bright. Many predict $200 per barrel.

Our Future

What will happen in the future? What will happen as the energy situation gets worse?

As you move forward on the energy timeline into the future, we find that the bad news gets worse and worse.

Our reliance on foreign oil grows to two-thirds of U.S. consumption. World oil use grows by two billion barrels per year.

China and India and the other fast growing Asian economies alone eat up 45% of this growth.

Third-world countries rapidly industrialize andl their energy use starts to become almost as much as the energy use of the developed countries.

China’s dependence on foreign oil grows from 22% to 77%. Europe’s dependence on foreign oil grows from 52% to 79%. U.S. Dependence on foreign oil grows to 66%.

Reliance on Middle Eastern oil becomes more and more precarious for all.

Now as more and more try to turn to natural gas, natural gas prices climb to new highs.

And worse yet, after 2010, world oil production peaks.

Oil is now more and more expensive to recover.

As Saudi Arabia has a very cheap cost of production, it is now the producer of last resort. Saudi Arabia has two-thirds of the world’s oil reserves and one-third of its natural gas reserves.

Oil prices begin an inevitable and irreversible climb to even higher record levels. Oil price increases create economic depressions and political instability increases worldwide.

Problems in photovoltaic power and wind power limit their growth. Photovoltaic power requires large investment and expensive storage. Wind power looks like it requires less investment until you look at energy storage costs and transportation of energy costs. Solar and wind production do not exceed a few percentage points of energy production in 2020.

What about the hydrogen economy and fuel cells? As you look down at the years from 2003 forward, you see the limitations in the hydrogen economy.

Hydrogen is very expensive to make. Steam reformation, the cheapest way to make hydrogen pollutes. Making hydrogen with electrolysis is clean but the electricity must come from fossil fuels or nuclear power. Storing and transporting hydrogen each double costs. We try to produce hydrogen on-site with electrolysis. Getting electrical power to the electrolysis machines requires us to quadruple electrical power's infrastructure.

We try to turn to nuclear power as the solution to provide electricity for electrolysis to make hydrogen. However, the nuclear industry is stopped by safety concerns and after the realization that de-commissioning nuclear power plants is prohibitively expensive.

Global oil production peaks and begins its inevitable decline after 2010.

Yet now it becomes painfully clear: to us that renewable energy systems have the potential to generate no more than a tiny fraction of the power being generated by fossil fuels.

We are running out of oil. We have no viable alternatives. The energy infrastructure is so large that it will take decades to implement any alternative to fossil fuels. We find that it is too late.

Moving forward now, we discover a very grim future. We see the economy slow as energy prices rise are too high.

Pollution is unchecked. The world is hooked on foreign oil. There are no other workable solutions.

We have no way out.

We are more vulnerable to political problems in oil producing countries. The Arab oil producing countries are antagonistic to us. The U.S., Europe, China and developing countries all need Middle Eastern oil, and so does the U.S.

Conflict grows and grows. Saudi Arabia is under enormous pressure.

What will now happen after oil production peaks just as demand is exploding?

What will now happen as the limitations of other energy solutions surface?

What will now happen as our energy position gets worse and worse?

We now see an energy future is a nighmare. There must be a huge change. We must have that change and we must have it now.

Standing at the end of the timeline, looking back, you now know that we need energy that is cheap, clean and renewable.

This is why we believe that the more you look at TrueFuel by Advanced Energy Research Corporation now, the more you can see that TrueFuel is the Answer.

The energy markets are huge, $1 trillion per year. So real hope exists only if we make a large investment now in TrueFuel. TrueFuel must become a large percentage of our energy mix.

Only then can we look forward to a future of energy independence from oil in general and foreign oil in particular.

Only then can we have a future of predictable energy costs.

Only then can we see a future of greatly reduced pollution.

We see that TrueFuel is the answer, and we decide to make TrueFuel a reality, and we can look back on this decision as being the start of the turning point for us.

We can now look back and see how things continued to get better and better after we decided that TrueFuel is the Answer.

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