Transforming our Nation s Transportation Sector: The Role of Natural Gas

Transcription

1 Many Roads to a Common Goal: Automakers' Wide- Ranging Approaches to 2017 and Beyond Transforming our Nation s Transportation Sector: The Role of Natural Gas Legislative Energy Horizons Institute Portland, Oregon July 22, 2011 Kathryn Clay, Ph.D. Executive Director Drive Natural Gas Initiative

2 Transforming the transportation sector to meet our energy and environmental goals: Energy Security: Last year, the United States imported 1.5 billion barrels of oil from dangerous, unstable nations. Local Air Quality: Natural gas vehicles produce far lower emissions of criteria air pollutants than conventional vehicles. We need a portfolio approach to meet these challenges, and all alternative fuels will play an important role. America s natural gas industry is committed to being a part of the solution. 2

3 AGA-ANGA Transportation Collaborative Who we are: Over fifty participating distributors and producers of natural gas. Working to build the infrastructure to support natural gas vehicles nationwide. Representing the full natural gas value chain, from production to delivery.

4 NATURAL GAS America s New Energy Landscape 4

5 Natural Gas: A foundation fuel for our energy security Our nation is the largest producer of natural gas in the world. The United States now has more natural gas than Saudi Arabia has oil. Over the last decade, U.S. shale gas production has increased 12-fold and now comprises about 25 percent of total U.S. production.

6 Shale Gas Plays and Basins are a vast resource, widely distributed across the United States. Thirty-two states are now producing, or have produced, natural gas.

7 Game-changing discoveries mean abundant domestic natural gas for the coming decades. Source: EIA Annual Energy Outlook 2011

8 Natural Gas Abundance: Independent sources estimate one hundred years supply NPC 2003 PGC 2006 PGC 2008 ICF 2009 PGC 2010 U.S. Natural Gas Resource Estimates (TcF) Sources: National Petroleum Council, Potential Gas Committee, ICF Consulting.

9 Our Commitment: Responsible Resource Development Safe, reliable extraction of natural gas is the first priority for every segment of the industry. Engaging all stakeholders is critical to defining and meeting environmental goals. All energy production methods bring risks and trade-offs to manage. The industry is committed to best practices and strict enforcement of those practices.

10 NATURAL GAS: Part of the Transformation of Transportation 10

11 Natural Gas: Clean, Domestic, Secure, Affordable Energy for Transportation Greenhouse gas emissions 29% lower than comparable gasoline light-duty vehicles. Domestic gas production accounts for 89% of natural gas consumed in the United States. Natural gas prices are decoupled from petroleum, with abundant resources to support stable prices for years to come.

12 Compressed Natural Gas (CNG) costs one-third to one-half less than gasoline on an energy equivalent basis. $4.50 $4.00 $3.50 $3.00 $2.50 $2.00 $1.50 $1.00 $0.50 $0.00 Gasoline Diesel CNG Ethanol (E85) Propane Biodiesel (B20) Biodiesel (B99-B100) Source: DOE Clean Cities Program, Alternative Fuel Price Report, January

13 Many automakers already offer natural gas vehicles in other nations.but not in North America. Auto Manufacturer GM (Chevrolet, Opel) Fiat/Chrysler Ford Hyundai Mercedes Mitsubishi Saab Nissan/Renault Toyota Volkswagen Volvo Markets with Light Duty NGVs on offer Europe, Thailand, Singapore, India Europe, Brazil Europe, India Europe, India, Columbia, Thailand Europe, India, Thailand India, Thailand Europe Europe India, Thailand Europe Europe 13

14 Natural Gas Vehicles: Solutions for Cities and Local Air Quality Washington, D.C. 439 of 1,500 city buses run on natural gas 53 percent lower nitrogen oxide emissions 85 percent lower particulate matter 89 percent lower carbon monoxide Portland, OR: 100 percent of airport shuttles operate on natural gas Ardmore, PA: 8 million cleaner miles on 73 CNG vehicles to transport children to school

15 Natural Gas Distributors: living our commitment Sempra Maintains a fleet of 1100 natural gas vehicles, over 20% of their total. Over half of their CNG refueling stations are open to the public. Questar A fleet of 450 natural gas vehicles, 26 owned and operated NG refueling stations. AGL Recently requested approval from regulators for $10 million to construct public CNG charging stations and purchase of home refueling stations. The decision is pending and expected soon.

16 Natural Gas Producers: living our commitment Encana Converting a fleet of 1,300 vehicles to bi-fuel. Up to 150 bi-fuel vehicles will be in place by this fall. Chesapeake Converting its entire fleet of 4,200 vehicles by Last month in Oklahoma, introduced their 800th natural gas vehicle. Apache Doubling the size of its CNGpowered vehicle fleet this year. Doubling the number of CNG stations the company operates. Intends to have 80 percent of the fleet, about 720 vehicles, on bi-fuel operation by the end of 2015.

17 ANGA-AGA members bring natural gas from the wellhead to the fuel dispenser. Going forward, we will work to: Build regional corridors for LNG and CNG fueling. Partner with developers of home refueling equipment. Engage automakers to encourage production vehicles fueled by natural gas.

18 Transportation Collaboration Participants Anadarko Petroleum Corporation Apache Corporation BG Group BHP Billiton Bill Barrett Corporation Cabot Oil & Gas Corporation Chesapeake Energy Corporation Cimarex Devon Energy El Paso Encana Corporation Energen EQT High Mount Exploration & Production LLC Laredo Petroleum Linn Energy, LLC Newfield Explorations Company Noble Energy, Inc. Petrohawk Energy Corporation Pioneer Natural Resources Plains Exploration & Production Company QEP Resources Range Resources Seneca Resources SM Energy Company Southwestern Energy Company Talisman Energy Inc. Ultra Petroleum Corp. Williams Company XTO Energy Inc.

19 Transportation Collaboration Participants AGL Resources Alagasco Atmos Avista Cascade Natural Gas CenterPoint Energy Citizens Energy DTE Energy Integrys Intermountain Gas Metropolitan Utilities District MDU Resources Group: Montana Dakota Utilities / Cascade Natural Gas / Intermountain Gas / Great Plains Company National Fuel National Grid New Jersey Natural Gas NiSource ONEOK: Texas Gas Service Piedmont Natural Gas Questar Gas Sempra: San Diego Gas & Electric/Southern California Gas Southwest Gas TECO Energy UGI Vectren

20 For More Information on the Transportation Collaborative please visit: