The Energy Dilemma. Randy A. Foutch TAPL

Transcription

1 The Energy Dilemma Randy A. Foutch Chairman and CEO TAPL September 20, 2010

2 Any Energy Solution should: Sustain Growth Increase Energy Independence Rd Reduce Carbon Emissions i Keep Energy Affordable 2

3 Energy Use is Highly Correlated with: Qualityof Life: A United Nations statistic (HDI), when compared to per capita energy use, shows large correlation A country s development: Growth occurs primarily with the use of fossil fuels Cheap energy resource Source: 1,2,3 3

4 United States is a world leader in: Consuming energy Using energy to provide aid to the World Source: 2,4 4

5 Daunting Task for Energy Independence NOTICE: Greater imports needed to fill an everwidening energy deficit Use less energy Become more efficient Reduce consumption Produce more energy Increase volumes of current energy sources Develop viable alternative energy sources Source: 5 5

6 Focusing on Electricity: Remove all cars and ground all airplanes, and there will STILL be a significant amount of CO 2 released into the air Source: 6,7 6

7 What viable alternatives exist to burning fossil fuels?

8 WIND Capacity: Can it be done? NOTE: In 2009, wind provided only 1.8% of U.S. electricity demand What would it take to produce 20% of our Electricity from wind 2030? by Need to add 265 GW over 20 years 10 GW added during 2009, the largest single year addition to date Using most common wind turbine of 1.5 MW, means installing 176,666 new turbines (8,800 per year) 2009 was a record year with 5,600 wind turbines added to meet capacity needs Source: 8,9 8

9 WIND Land Requirements: Staggering amount needed 12.2 Million acres of wind farms throughout the United States 5 ½ times the size of Yellowstone National Park Relatively small supply of suitable land with adequate wind Source: 10 speeds, most of which is used for agriculture 9

10 WIND Costs: Economic AND Environmental Fuel FY 2007 Net Generation (BKWh) Natural Gas / Petroleum liquids Subsidy & Support per unit of production 919 $0.25 Government subsidies 100x that for natural gas Study from Ontario s Wolf Island: 1,270 bats and 602 birds killed in 6 months from just 86 wind turbines. Keep in mind that 176,000 new wind turbines would need to be installed. Coal 1,946 $0.44 Nuclear 794 $1.59 Wind 31 $23.37 Solar 1 $24.34 Source: 11,12 10

11 WIND Additional Comments that challenge wind s capability How often, even in the wind corridor, is the wind constantly blowing at desired speeds? Harsh reality is that for large scale wind projects, the capacity factor is MUCH lower 25%. Meaning that wind turbines only produce their nameplate capacity 25% of the time As a result of this capacity factor, multiply everything (number of windmills, land requirement, costs) by 4 Source: 13 11

12 SOLAR Department of Energy Goal of 10% by 2025 NOTE: In 2008, solar provided < 1% of all electricity generation in US U.S. Current capacity just over 2,000 MW For 10% solar electricity, it need 50,000 MW Increase of 25x Source: 14,15,16 12

13 SOLAR DeSoto Next Generation Solar Energy Center Currently provides 25 MW 90,000 solar panels 180 acres Cost: $150 Million With the completion of the DeSoto Next Generation Solar Energy Center, SunPower s high efficiency photovoltaic technology is demonstrating that solar is competitively priced for electric utility power plant applications. Howard Wenger, SunPower Source: 17,18,19 To reach Department of Energy Goal: 2,000 of these solar farms 180 Million solar panels 360,000 acres $288 Billion 13

14 SOLAR Environmental Constraints Ironic? Solar has unquenchable thirst for water Source: 20 In a rural corner of Nevada reeling from the recession, a bit of salvation seemed to arrive last year. A German developer, Solar Millennium, announced plans to build two large solar farms here that would harness the sun to generate electricity, creating hundredsofjobs jobs. But thenthingsthings got messy. The company revealed that its preferred method of cooling the power plants would consume 1.3 billion gallons of water a year, about 20 percent of this desert valley s available water. Now Solar Millennium finds itself in the midst of a new age version of a Western water war. 14

15 Natural Gas is the Answer! NATURAL GAS 15

16 ABUNDANT Current Reserve Estimates of domestic Natural Gas provide a multigenerational supply that can be used for years to come Source: 21,7,22 16

17 WATER EFFICIENT Despite what industry critics suggest, deep shale natural gas is much more efficient than many of the sources we use today Source: 23,24,25,26 17

18 CLEAN Natural Gas Combustion Produces: 29% less CO 2 than oil 44% less CO 2 than coal No solid waste Extremely low particulates The U.S. will need to develop affordable natural gas supplies in the immediate future Sierra Club Greenhouse Gas emissions from natural gas are 23% lower than diesel, and 30% lower than gasoline California Energy Commission Source: 27,28 18

19 VERSATILE Source: 6 19

20 DOMESTIC, WITH SECURE INFRASTRUCTURE & SIGNIFICANT ECONOMIC CONTRIBUTIONS 32 of 50 states produce natural gas Of the total U.S. natural gas consumption, 98% comes from North America Employs 2.8 Million Americans In 2008, contributed $385 Billion directly to US U.S. economy Source: 29,30,31,32 20

21 A look back at our objectives: Sustain Growth Increase Energy Independence d ReduceCarbon Emissions Keep Energy Affordable NATURAL GAS IS THE ANSWER! 21

22 References 1) United Nations Development Program: 2) International Energy Agency data: 3) International Energy Agency: 4) Organization for Economic Co Operation and Development: 5) Energy Information Administration: Annual Energy Review 2009: Primary Energy Overview 6) Energy Information Administration (EIA) Annual Energy Outlook ) EPA: Inventory of U.S. Greenhouse Gas Emissions and Sinks , March 9, ) American Wind Energy Association U.S. Wind Industry Annual Market Report Year Ending ) Energy Information Administration: 10) 11) Energy Information Administration: Federal Financial Interventions and Subsidies in Energy Markets 2007 Executive Summary 12) 13) American Wind Energy Association; 14) Energy Information Administration: Electric Power Monthly (August 2010) 15) Solar Energy Industries Association: U.S. Solar Industry Year in Review 2009 (April 2010) 16) United States Department of Energy: 17) 18) Energy Online; 19) Florida Power & Light Company; / / / 20) environment/30water.html 21) The American Clean Skies Foundation (ACSF): North American Natural Gas Supply Assessment (July 2008) 22) Potential Gas Committee (PGC): June ) U.S. Department of Energy (DOE), Groundwater Protection Council (GWPC): Modern Shale Gas Development in the United States: A Primer (2009) 24) Chesapeake Energy Corporation: Hydraulic Fracturing and Water Use in Deep Shale Gas Exploration Fact Sheets (2009) 25) Chesapeake Energy Corporation: Deep Shale Natural Gas Abundant, Affordable, and Surprisingly Water Efficient (2009) 26) U.S. Department of Energy (DOE): Energy Demands on Water Resources Report to Congress on the Interdependency of Energy and Water (Dec 2006) 27) EIA: Natural Gas Issues and Trends (1998) 28) Sierra Club: Testimony before the House Committee on Appropriations (April 3, 2009) 29) Energy Information Administration, Office of Oil and Gas: How EIA Estimates Natural Gas Production (February 2004) 30) Natural Gas Vehicles for America: The Case for Natural Gas: The Most Abundant, Clean and Cost Efficient American Fuel 31) The Contributions of the Natural Gas Industry to the U.S. and State Economies, HIS Global Insight, Sep ) American Clean Skies Foundation American Gas Association: Key Factors Influencing U.S. Natural Gas Supply

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