Natural Gas The Natural Choice Now.

Transcription

1 Natural Gas The Natural Choice Now.

2 About ANGA ANGA is dedicated to increasing the understanding of the environmental, economic and national security benefits of clean, abundant, dependable and efficient North thamerican natural gas.

3 ANGA Members

4 Why Natural Gas? CLEAN ABUNDANT DOMESTIC JOBS

5 CLEAN

6 Cleaner for Power Generation Compared to coal, natural gas Reduces CO 2 emissions 50% Reduces NOx emissions 80% Virtually Eliminates i SO2 Emissions i 99.96% 96% Virtually Eliminates Particulate Emissions 99.74% Completely Eliminates Mercury Emissions 100%

7 Cleaner for Vehicles Compared to gasoline or diesel, NGVs: Reduce CO 2 emissions 20-30% Reduce CO emissions Reduce NOx emissions Reduce Particulate Matter emissions 70-90% 75-95% 90% Reduce VOC emissions 89%

8 Meeting Clean Air Goals EPA Non-Attainment Areas June 2010 Source: EPA, Green Book, June 15, 2010

9 ABUNDANT

10 The Shale Gas Revolution Cody Bakken Mowry Gammon Antrim Baxter-Mancos Mancos Niobrara Marcellus/ Devonian/Utica Lewis Pierre Woodford Barnett- Woodford Barnett Eagle Ford Mulky New Albany Fayetteville Floyd-Neal Haynesville

11 A New Age of Nat Gas Abundance 2500 Total Potential Natural Gas Resources (trillion cubic feet) Potential Shale Gas Resources 2000 Potential Traditional Resources* Proved Reserves ,074TCF Estimated Future Supply 58% Increase YEARS Supply Here in the US *From , traditional resources include shale gas, which was not broken out separately by the PGC until Source: Potential Gas Committee Report, June 2009

12 Enough For Generations North American Dry Gas Productive Capacity (BCF per Day) Shale Tight Sands Coalbed Methane Conventional Associated Source: IHS CERA, Fueling the Future, 2010

13 DOMESTIC

14 Our Dependence on Foreign Oil How much do we use? 3,540,500,000 barrels imported in 2009 How much does it cost? $208,894,495,000 on imported oil in 2009 $680 for each person in America Where does the money go? Among the top countries we import from: Venezuela, Saudi Arabia, Nigeria, Russia, Algeria, Angola and Iraq.

15 JOBS

16 Economics & Employment 1,500,000 Natural Gas Employment (Average Annual Workers) 1,250,000 1,000,000 1,282, ,412 2,060 1,4 482, MILLION 2008 Total Employment 750, , , , , , , , , $385 BILLION 2008 Total Value Added. $181 BILLION 2008 Total Labor Income. Direct Indirect Induced Source: IHS Global Insight, 2009

17 Jobs Across the Country Top 10 States for Natural Gas Jobs State Jobs % of Total Employment Texas 1,269, Louisiana 266, California 255, Oklahoma 174, Colorado 137, Wyoming 62, Pennsylvania 53, New Mexico 46, Illinois 45, Ohio 40, Source: IHS Global Insight, 2009

18 How We Use Natural Gas How Natural Gas is Used Today 3% Transportation 14% Commercial 30% Electric Power 32% Industrial 21% Residential Source: EIA, Natural Gas Year In Review, 2009

19 POWER GENERATION

20 Today s ElectricityMix 1% other non-renewable 4% other renewable wind, biomass, geothermal and solar 7% hydropower 20% nuclear 45% coal 23% natural gas Source: EIA, 2009 Annual Energy Review

21 Ready Now Utilization of Electric Generation Capability (net generation as a percentage of net summer capacity) 397 GW 313 GW 72% Utilized 24 % Utilized Natural Gas Coal Source: EIA, 2008 Electric Power Annual

22 More Efficient in Every Way Electricity Generation: Cost vs. Efficiency Solar ($6,000, 17%) to Build ($/KW) Cost t $4,000 $3,500 Biomass Nuclear $3,000 $2,500 Coal $2,000 Wind $1,500 $1,000 Liquid Hydrocarbons $500 Natural Gas $ Efficiency (%, BTU Output vs. BTU Input) Sources: KEMA Power Generation and Sustainables: Energy Efficiency in Power Plants (2008) Argonne National Laboratory- ) g y Energy Systems Division: Comparison of Power Efficiency on Grid Level (2004) Argonne National Laboratory- Energy Systems Division: Fuel Cycle Comparison of Distributed Power Generation Technologies (2008) EIA: Electricity Market Module (Mar 2009)

23 Stable Supplies = Stable Prices Price volatility has declined sharply, due to: Prolific on-shore production of gas from shale 70 % Increase in U.S. reserves Vastly expanded pipeline distribution system $7.25 $6.75 $6.25 Nat Gas vs. Coal Pricing Parity MMBtu $ / $5.75 $5.25 $4.75 Source: Credit-Suisse, September 2010 $4.25 NYMEX CAPP Coal NYMEX Natural Gas $ /10 02/11 06/11 10/11 02/12 06/12 10/12 02/13 06/13 10/13

24 Pipeline Additions ,000 MILES Of New Transmission Pipeline 97 BCFD Capacity Added in US in the Last 10 Years Growth Driven By The Need To: 2008 ACCESS NEW SUPPLIES Expanding Production From New Fields Imports From Canada MEET INCREASED DEMAND From New Gas-Fired Power Plants

25 TRANSPORTATION

26 Opportunity: Heavy-Duty Vehicles Miles Traveled Fuel Economy Fuel Consumed (average per year) (average mpg) (average gallons per year) 25, ,075 10,951 11, Heavy-Duty Vehicles Vans, Pickups & SUVs Passenger Cars Source: EIA Annual Energy Review 2009

27 Benefits: Reducing GHG Emissions CO2 Emissions From U.S. Vehicles (average per year) Medium and Heavy-Duty Vehicles Vans, Pickups & SUVs Passenger Cars Source: EPA, Inventory of U.S. Greenhouse Gas Emissions and Sinks:

28 Infrastructure: Refueling Stations Natural Gas Refueling Stations (current or planned as of July 2010) RI 5 CT 13 DE 1 DC stations or more 1 17 Source:

29 Cost Savings: On the Road and at the Pump Natural gas costs, on average, one-third less than conventional gasoline at the pump. Natural gas vehicles are proving to have lower operating and maintenance costs, generating significant vehicle life-cycle savings. Because natural gas burns so cleanly, it results in less wear and tear on the engine and extends the time between tune-ups and oil changes. Many fleets report 15-28% savings compared to diesel fleets.

30 Hydraulic Fracturing Small hole, about 15 in diameter Private well, about 500 feet deep Public well, about 1,000 feet deep Multiple layers of steel, encased in cement to protect groundwater Protective steel casing Approximate distance from surface 8,000 feet

31 Peter D. Robertson Senior Vice President for Legislative and Regulatory Affairs