ANGA & America's New Natural Gas

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-- This is the story of America’s New Natural Gas. -- This year, some of America’s largest independent natural gas producers joined together to form America’s Natural Gas Alliance. -- ANGA is an educational organization, comprised of 28 North American independent natural gas exploration and production companies, who together produce more than 40 percent of the U.S. natural gas supply.

-- ANGA was formed to promote the environmental, economic and national security benefits of clean, abundant, affordable and dependable American natural gas. -- Today, we will discuss and demonstrate the positive attributes of a fuel source that burns cleaner than oil and coal, promotes American jobs, and exists in vast quantity right here in America.

-- New shale discoveries have led experts to rethink the role this valuable resource will play in America’s energy future. --We have more than one hundred years of natural gas supply in the United States, and this supply continues to expand because of the use of new technologies. -- A recent front-page Wall Street Journal article said of discoveries “have spurred energy experts and policy makers to start looking to natural gas in their pursuit of a wide range of goals: easing the impact of energy-price spikes, reducing dependence on foreign oil, lowering "greenhouse gas" emissions and speeding the transition to renewable fuels.”

-- The Potential Gas Committee, considered the authority on natural gas, reported that domestic reserves were far larger than previously thought -- up 58 percent in just the last four years. --According to the 2009 PGC report, the U.S. possesses a total resource base of 2,074 trillion cubic feet (Tcf). This is the highest resource evaluation in the Committee’s 44-year history. -- In a July 17 story about the PGC’s report, the New York Times said “The finding raises the possibility that natural gas could emerge as a critical transition fuel that could help to battle global warming”.

-- New technologies, including horizontal drilling and multi-stage hydraulic fracture stimulation, have resulted in a rapid shift in the nature of North American gas supply. Today, about half of our nation’s supply comes from so-called unconventional reservoirs – coal seams, tight sands and shale. In this chart, prepared in 2007 before the huge ramp-up in production from shale, you can see that EIA predicted that production from these reservoirs will more than offset the decline from “conventional” reservoirs. -- Why does this matter? Well, there are a number of reasons. For one thing, it is allow us to reduce the amount of the natural gas we import from other countries. It allows us to reduce the price instability of the past, which was due in part to the limited geographical production areas of natural gas. And it allows us to reduce costs associated with turning imported natural gas, which comes in a liquefied form, into usable gas form.

-- Natural gas is a secure and reliable energy source found within the United States

-- What many people don’t realize, is that almost all of the natural gas we use is produced right here in North America. -- In fact, 85%of the natural gas used in the U.S. is produced domestically. And, natural gas is used in every single state in the country except Hawaii, whether in residential, commercial, industrial or transportation settings. -- And 98% is produced in North America -- And unlike oil and coal, which is produced in relatively small regions of the country, natural gas is produced in vast swaths of North America: 32 of 50 states produce natural gas.

-- New domestic discoveries have been made possible by new technological advances in exploration and drilling. --Natural gas production from hydrocarbon rich shale formations, known as “shale gas,” is one of the most rapidly expanding trends in onshore domestic oil and gas exploration and production today. -- Those discoveries have identified even broader swaths of North America that will be producing natural gas for decades to come, including in areas once thought to not be economically viable.

-- There are a number of reason that we need to be encouraging public policies that expand the use of natural gas. Among the most important is the environmental benefit. • Natural gas is a cleaner energy source that can reduce carbon today

-- Simply put, natural gas is the cleanest burning fuel that can be viably used for electric power generation on a large scale today. It is about twice as clean as coal, for example – and significantly cleaner than oil. You see here the Carbon Dioxide emissions for coal, oil and natural gas – both simple and combined cycle. You would see a similar pattern for Carbon Monoxide, Particulates, and Mercury. By using more natural gas – especially in electric power generation – we can significantly reduce our emissions.

-- According to a recent POS Mellman Research survey commissioned by ANGA, natural gas was viewed positively by 71% of respondents. -- Natural gas is the cleanest alternative transportation fuel commercially available today, according to the U.S. EPA. Fueling our nation’s vehicles with environmentally beneficial alternatives, such as natural gas can reduce oil imports, vehicle pollution and greenhouse gases. -- Automobiles using natural gas emit 25% less CO 2 per mile than traditional gasoline --A large number of municipal transit authorities have moved to clean natural gas bus fleets- and we think that more of them should.

-- The bottom line is that we should be looking to natural gas as the natural partner and foundation for renewable energy sources in North America. -- Natural gas can make wind and solar power more viable by providing a stable energy source when the winds subside and the sun dips below the horizon. --In a 2007 study, Archer and Jacobson, professor s of civil and environmental engineering at Stanford, found that an average of 33 percent and a maximum of 47 percent of yearly-averaged wind power from interconnected farms can be used as reliable, baseload electric power..

-- There’s another reason we need to be encouraging public policies that support natural gas: The industry supports millions of American jobs and pumps billions of dollars into – not out of – the American economy.

-- Let’s examine the numbers: The natural gas industry supports nearly 3 million jobs, directly or indirectly! -The Natural Gas industry supports over 2.8 million jobs nationwide. --NG companies employed roughly 622,000 Americans in 2008. --The industry generated over $70 billion in direct income for workers --These direct jobs had an overall value-added impact of $172 billion dollars on the U.S. economy --Natural gas can provide us with new opportunities in transportation, exploration, and power generation

-- We may have gotten off to a later start, but we are here now and have an important story to tell. Natural gas is the clean energy alternative right now. It is abundant, clean and can help end our dependence on foreign energy. --We have a very strong message to deliver that has been well received. We are finding that most people we meet with understand the clean attributes of natural gas but don’t have the most recent statistics on the abundance of the fuel. The shale plays and other unconventional sources have been truly game-changing in terms of unlocking record new supplies of domestic natural gas. Many end-user industries don’t yet understand or appreciate the potential positive impact of these enormous new supplies, in terms of reliability of supply, energy security and carbon-emissions reduction. -- ANGA was created to change that.

-- This chart shows the supply sources of various energy industries. Look at natural gas…in addition to electric power, there are big opportunities to boost the usage of natural gas in the transportation sector with natural gas vehicles, in heating and cooling our homes and businesses, and in industrial production. -- ANGA’s goal is not to argue for the obsolescence of oil and coal. That doesn’t makes sense. But it does make sense to point out that if our goal is to reduce greenhouse gases, we can get there faster and more efficiently by promoting greater use of natural gas in our energy mix.

-- This chart makes a key point: As an industry, we’re under utilized. No longer can our critics argue that increasing demand will dramatically spike prices. There is simply enough natural gas to go around. -- We as an industry are underutilized in the energy mix.

About Natural Gas Vehicles There are over 1,100 NGV fueling stations in the U.S. - over half are available for public use. Natural gas costs, on average, one-third less than conventional gasoline at the pump. Over 50 different manufacturers produce 150 models of light, medium and heavy-duty vehicles and engines. Roughly 22 percent of all new transit bus orders are for natural gas. Natural gas is sold in GGEs or gasoline gallon equivalents. A GGE has the same energy content (124,800 BTUs) as a gallon of gasoline.

Natural gas is lower carbon than gasoline or diesel- it burns cleaner. NGVs have closed fuel systems that eliminate evaporative emissions- which account for up to one-half of ozone-causing pollution, according to a 2007 report from the TX General Land Office. The Obama administration recently announced $300 million in stimulus cash to expand state and local government fleets of advanced technology vehicles. The Clean Cities Alternative Fuel and Advanced Technology Vehicles Pilot Program will help support as many as 30 alternative fuels or advanced technology projects and potentially create tens of thousands of jobs.

Pouring Steel into a mold- (image from Michelle Bloodworth, Energen)

-- We as an industry might have been late to the game. But now we’re in it and we’re working hard to get our story out. Advertising will be a substantial part of this effort. And I’d like to share with you some new ads from our Eureka campaign.

-- ANGA aims to inform and engage not just those elected officials, but a wide range of energy decision makers and stakeholders, including electric power utilities, commercial enterprises, non-governmental organizations, federal and state policy makers, energy regulators and, the ultimate beneficiaries of the many uses of America’s natural gas, American consumers. -- Thank you.

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ANGA & America's New Natural Gas - Presentation Transcript

WWW.ANGA.US AMERICA’S NEW NATURAL GAS
ANGA'S MEMBERS
- ANGA is dedicated to increasing the understanding of the environmental, economic and national security benefits of clean, abundant, dependable and efficient North American natural gas.
ANGA'S MISSION
ABUNDANT DOMESTIC CLEAN WHAT AMERICANS WANT FOR ENERGY JOBS
ABUNDANT
2,074.1 TCF OF FUTURE NAT GAS SUPPLY 58% INCREASE IN THE PAST 4 YEARS POTENTIAL GAS COMMITTEE REPORT, JUNE 2009 COALBED GAS RESOURCES TRADITIONAL GAS RESOURCES SHALE GAS (615.9 TCF) TOTAL POTENTIAL RESOURCES (VALUES, TCF) ABUNDANCE - POTENTIAL GAS COMMITTEE REPORT 1,836.4 Tcf INCREASE IN THE PAST 4 YEARS 237.7 Tcf PROVED RESERVES
TOTAL NATURAL GAS SUPPLY BY SOURCE UNCONVENTIONAL INCLUDES NATURAL GAS FROM SHALE FORMATIONS, COAL SEAMS AND TIGHT SAND TCF / YEAR
DOMESTIC
U.S. ENERGY INFORMATION ADMINISTRATION 32 OF 50 STATES HAVE PRODUCTION 85% SUPPLY FROM U.S. 97% SUPPLY FROM NO. AMERICA NATURAL GAS PRODUCING STATES
Cody Pierre Fayetteville Haynesville Eagle Ford Horn River Montney Deep Basin Colorado Group Mowry Gammon Bakken Baxter/Mancos Mancos Barnett/Woodford Barnett NEW SHALE PLAYS IN NORTH AMERICA Mulky New Albany Antrim Marcellus/Ohio/Huron Utica Woodford Floyd-Neal Niobrara Lewis
CLEAN
TYPICAL EMISSIONS FOR COAL-FIRED, OIL-FIRED, AND NATURAL GAS GENERATING PLANTS (POUNDS PER MEGAWATT-HOUR) U.S. ENERGY INFORMATION ADMINISTRATION, “NATURAL GAS ISSUES AND TRENDS,” 1998. COMPUTED USING EIA DATE BASED ON THE FOLLOWING CONDITIONS: A. COMBINED CYCLE (GAS/STEAM TURBINE PLANT) HEAT RATE OF 6,500 BTU/KW-HOUR (THERMAL EFFICIENCY=52.2%) B. SIMPLE CYCLE (GAS TURBINE PLANT) HEAT RATE OF 9,750 BTU/KW-HOUR (THERMAL EFFICIENCY=35.0%) NATURAL GAS IS CLEANER
NATURAL GAS IS CLEANER
NATURAL GAS WIND / SOLAR VIABLE RENEWABLE ENERGY MIX
JOBS
NATURAL GAS IMPACT ON THE U.S. ECONOMY 2.8 MILLION 2008 TOTAL EMPLOYMENT 2.6 MILLION 2007 TOTAL EMPLOYMENT 2.4 MILLION 2006 TOTAL EMPLOYMENT
WHAT SHOULD WE DO — LEGISLATION
PRIMARY ENERGY CONSUMPTION BY SOURCE & SECTOR, 2008 (Quadrillion Btu) 37.1 PETROLEUM 23.8 NATURAL GAS 22.5 COAL 7.3 RENEWABLE ENERGY (Including hydro) 27.8 TRANSPORTATION 20.6 INDUSTRIAL 10.8 RESIDENTIAL & COMMERCIAL 40.1 ELECTRIC POWER 8.5 NUCLEAR SUPPLY SOURCES % OF SOURCE % OF SECTOR DEMAND SECTORS AMERICA NEEDS A DIVERSIFIED ENERGY PORTFOLIO ENERGY INFORMATION ADMINISTRATION, ANNUAL ENERGY REVIEW, 2008
AMERICA NEEDS A DIVERSIFIED ELECTRICITY PORTFOLIO Total 4,157 Billion kWh Electric Utility Plants 60.2% Independent Power Producers and Combined Heat & Power Plants 39.8%
NATURAL GAS CAPACITY EXISTS 22.8% 68.5%
AMERICA NEEDS NATURAL GAS VEHICLES
THE NGV OPPORTUNITY
AMERICAN INDUSTRIES NEED NATURAL GAS
NATURAL GAS CONSUMPTION (TCF) BY SECTOR
INFORMING THE NATION ABOUT AMERICA’S NEW NATURAL GAS
EUREKA ADS
WWW.ANGA.US AMERICA’S NEW NATURAL GAS