1 / 30

Smart Energy Initiative

Smart Energy Initiative. Presented by: John R. Hanger 717-237-6036 jhanger@eckertseamans.com. April 19, 2012. U.S. In Energy Boom: Key Facts. Gas Production in 2011 Set Record U.S. World’s Number 1 Gas Producer U.S. Oil Production Increasing For First Time in 35 Years

simeon
Download Presentation

Smart Energy Initiative

An Image/Link below is provided (as is) to download presentation Download Policy: Content on the Website is provided to you AS IS for your information and personal use and may not be sold / licensed / shared on other websites without getting consent from its author. Content is provided to you AS IS for your information and personal use only. Download presentation by click this link. While downloading, if for some reason you are not able to download a presentation, the publisher may have deleted the file from their server. During download, if you can't get a presentation, the file might be deleted by the publisher.

E N D

Presentation Transcript

  1. Smart Energy Initiative Presented by: John R. Hanger 717-237-6036 jhanger@eckertseamans.com April 19, 2012

  2. U.S. In Energy Boom: Key Facts Gas Production in 2011 Set Record U.S. World’s Number 1 Gas Producer U.S. Oil Production Increasing For First Time in 35 Years U.S. Oil Imports Decline From 60% in 2005 to 47% in 2010

  3. Total Energy Provided By Fuels Oil 34% Natural Gas 26% Coal 19% Renewables 11% Nuclear 10%

  4. Power Generation Trends Renewable Energy of all Types (Ethanol, Hydro, Biomass) Provided About 11% of All U.S. Energy in 2011

  5. U.S. In Energy Boom Wind Has Doubled Since 2008: 25,000 MW to 50,000 MW Iowa - 20% of Electricity From Wind Texas – 7% of Electricity From Wind Wind Power Costs Cut 65% Since 2003 Wind Generation Now Costs 5 Cents Per Kwh

  6. U.S. In Energy Boom U.S. Solar Has Increased 700% Since 2008 500 MW to 4,000 MW Solar Costs Cut From $10 Per Watt to About $2.75 Per Watt for Large Projects Rooftop Solar in $3 to $4 Per Watt Range

  7. Energy Efficiency Also Booming Oil Use Back to 1999 Levels Gasoline Use Back to 2001 Levels Total Energy Use at 2000 Levels New Cars Sold in February 2012 18% More Fuel Efficient Than in October 2007

  8. Gas Production In Pennsylvania First Oil Well Drilled in Pennsylvania in 1857 Approximately 400,000 Oil & Gas Wells Drilled in Pennsylvania First Exploratory Shale Gas Wells Drilled in 2005 200 Shale Gas Wells Drilled by 2008

  9. Shale Gas Development • Strategic Objective Should Be: • Produce the Gas and Protect the Environment

  10. Gas Production In Pennsylvania Prior to Shale Gas Wells, Pennsylvania Produced Typically Less than 200 Billion Cubic Feet of Gas/Year or Less than 1% of U.S. Gas Production Pennsylvania has Issued More than 9,000 Shale Gas Well Permits More than 5,000 Shale Gas Wells Now Drilled

  11. Gas Production In Pennsylvania Pennsylvania Production in 2011 Greater than 1 Trillion Cubic Feet or About 6% of U.S. Production Gas Production in Pennsylvania Likely to Reach 2 Trillion Cubic Feet Per Year Pennsylvania Will Provide About 10% of U.S. Natural Gas Production USA is the Number 1 Gas Producer in the World

  12. Protecting the Environment – Issues for the Public 1. Impact on Water from Drilling /Wastewater - Streams - Private water wells - Withdrawals 2. Operational Problems/Accidents - Spills - Leaks - Fires – Response time - Blow outs – Response time - 50 plus emergencies responses

  13. Protecting the Environment – Issues for the Public 3. Truck Traffic Impact & Safety - Congestion - Road damage - Unsafe trucks 4. Gas Migration 5. Public Lands: State Forests & Parks

  14. Protecting the Environment – Issues for the Public 6. Staffing of Oil and Gas Program - Number of employees - Location 7. Air Impacts - Nox - HAPs

  15. Protecting the Environment – Issues for the Public 8. Seismic Impacts from Deep Well Injections - Arkansas - Ohio 9. Disclosure of Chemicals

  16. Regulatory Response: Pennsylvania Case Study • Review & Strengthen All Rules • 4 Regulatory Packages Enacted 1. Water Withdrawal Plan: August 2008 2. Waste Water Disposal/TDS Rule: August 2010 3. New, Strong Drilling Standards: January 2011 4. 150 Feet Mandatory Buffer from All Development for 22,000 Miles of High Quality Steams: November 2010

  17. Regulatory Response • Staffing • 88 Positions in Oil Gas Program as of September 2008 • Raised Fee When Applying For a Permit from $100 to as much as $10,000 for Deep Wells • Doubled Staff to 202 by January 2011

  18. Regulatory Response • Enforcement of Rules • 1,200 Violations Issued During 2010 • 1,100 Violations Issued During 2011 • Companies Pay for Clean Up of Spills, Leaks, Gas Migration

  19. Water Impacts From Gas Drilling Exist & Include Methane Migration to About 50 to 100 Private Water Wells • But Water Impacts of Gas Drilling Are Less Than: • Oil Production • Coal Production • Biofuels • Large Hydro

  20. Gas Drilling Is not in Top 5 Impacts of Water in Pennsylvania • Acid Mine Drainage • Raw Sewage Discharges • Nitrogen & Phosphorus from Agriculture & Other lands • Sediment From Construction Areas • Spills, Leaks, Accidents From Underground Takes, Transportation of Materials

  21. Protecting the Environment Four Remaining Main Environmental Issues • Air Emissions • Smog • Methane Leakage • Gas Migration • Seismicity Associate With Injection of Wastewater in Deep Caverns

  22. Coal v. Gas Carbon Lifecycle Studies There are 6 Prof. Howarth, Cornell University, Most Publicized & Controversial Finding: “Coal is as Dirty as Gas on Carbon Emissions” No Claim that Coal is as Dirty as Gas on Mercury, Soot, Other Pollutants

  23. 5 Studies Contradicting Howarth Paper NETL – April 2011 Carnegie Mellon University – August 2011 Worldwatch Institute – August 2011 University of Maryland – October 2011 Cornell University – November 2011 All Papers are at www.johnhanger.blogsport.com

  24. Natural Gas Good For Economy Shale Gas Production Boom Shale Gas Less than 1% of U.S. Gas Supply in 2000 Shale Gas Production at 2 Bcf/day in 2007 Shale Gas Production at 16 Bcf/day in February 2011 Today Shale Gas is 30% of U.S. Natural Gas Production

  25. Natural Gas Good For Economy • Shale Gas Production Has Lowered Natural Gas Prices Significantly $13 for Thousand Cubic Feet July 2008 $4.50 for Thousand Cubic Feet July 2011 • Shale Gas Has Saved Residential Gas Heating Customers About $500/year 51% of Homes Use Natural Gas as a Heating Fuel

  26. Natural Gas Good For Economy • Shale Gas Has Saved Residential Electricity Customers About $500/year • 25% of U.S. Electricity Supply Comes from Natural Gas Plants • Natural Gas Plants Often Set Wholesale Price of Electricity • Shale Gas Has Prevented a Broad Energy Shock in 2011 & 2012 to U.S. Economy

  27. Getting Off Foreign Oil • U.S. Exports About $400 Billion/year for Foreign Oil • 60% Oil Imports in 2005 • 45% Oil Imports in 2011 • Natural Gas is Cheaper and Cleaner Than oil But Major Market Failure Blocks Transition from Oil to Gas in Transportation

  28. Getting Off Foreign Oil • Keys to Getting Off Foreign Oil By No Later Than 2025 • Natural Gas Vehicles • Electric Vehicles • U.S. Oil Production • Biofuels • Efficiency • Goal Should be to Decrease Oil Imports 3 Percentage Points Per Year for Next 15 Years

  29. THERE ARE NO PERFECT ENERGY CHOICES SAYING NO TO GAS MEANS SAYING YES TO OIL & COAL GAS AND RENEWABLES WILL GROW RAPIDLY IN THE NEXT 20 YEARS

More Related