2012 FEPA Presentation: Paul Smith

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  • 1. Natural GasSmarter Power TodayFlorida Energy Pipeline AssociationJuly 19, 2012Paul SmithDirector, Business Development
  • 2. About ANGA ANGA is dedicated to increasing the understanding of the environmental, economic and national security benefits of clean, abundant, reliable and affordable North American natural gas. 2
  • 3. ANGA Members 3
  • 4. ANGA’s Mission Key Stakeholders Strategy • Electric Utilities • Outreach to stakeholders • State Regulators • Grassroots • Third Parties • Paid Advertising • Legislators • Earned Media • Research/Consulting 4
  • 5. Our Story• We have an extraordinary story to tell: – Natural gas supports 2.8 million American jobs; – Our innovation is unleashing vast domestic supplies; – We are enhancing national security by delivering vast and sustainable domestic energy; and – We are poised to play a pivotal role in our nation’s low-carbon future. 5
  • 6. ABUNDANT
  • 7. The Shale Gas Revolution Cody Bakken Gammon Mowry Antrim EIA: 2011 Baxter-Mancos Marcellus/ Mancos Niobrara Devonian/Utica 862TCF shale Pierre Mulky New Albany Lewis Fayetteville 2,543TCF total Woodford Barnett- Floyd-Neal Woodford Barnett Haynesville 67% INCREASE in just three years Eagle FordSource: EIA Annual Energy Outlook, 2008 to 2011 7
  • 8. Abundant By Any Estimate Estimates of U.S. Recoverable Natural Gas (TCF – trillion cubic feet)) 3,600 3,350 2,836 2,543 2,170 2,074 2,102 2,100 1,532 1,314 1,268 1,312 Potential Gas Committee Other EstimatesSources:ICF: As reported in MIT Energy Initiative, 2010, The Future of Natural Gas, interim report ; Table 2.1EIA: See http://www.eia.gov/analysis/studies/worldshalegas/PGC: Potential Gas Committee’s Advance Summary and press release of its biennial assessment; see www.potentialgas.orgCERA: IHS CERA, 2010, Fueling North America’s Energy Future: The Unconventional Natural Gas Revolution and the Carbon AgendaMIT: MIT Energy Initiative, 2010, The Future of Natural Gas, interim report 8NPC: Realizing the Potential of North America’s Abundant Natural Gas and Oil Resources Johns Hopkins University ; Prudent Development Study 2011
  • 9. Florida Industrial Gas Rates HaveDropped Considerably 9
  • 10. Total Utility Savings to Florida Consumers Were Over $3.9Billion per Year in 2011 – 15 Percent of Utility Bills Total Utility Cost Savings by Class, 12 Mos. Ended December 2011 Residential Commercial Industrial TotalThousands of $ $33,863 $100,005 $202,496 $336,365Electric Savings, Thousands of $ $1,869,698 $1,461,041 $274,887 $3,605,626Total Savings, Thousands of $ $1,903,561 $1,561,046 $477,384 $3,941,991Percent 14% 16% 20% 15% 10
  • 11. Price Stability
  • 12. Long-Term Price Stability Henry Hub Spot Natural Gas Price ($2010 / MMBtu) 2010$/MMBtu $12 Historic Projected $10 ction ge: Ran O 2012 E Proje 009 – A 2 AEO $8 AEO 2010 $6 AEO 2011 AEO 2012 $4 $2 $0 2000 2005 2010 2015 2020 2025 2030 2035Source: EIA Annual Energy Outlook: 2012 (Early Release), 2011, 2010, and 2009Henry Hub Spot prices (EIA reported actual prices included 2000 to 2010) 12
  • 13. Beneficial Long-Term Joint Contracts• The Public Utility Commission of Oregon recently approved a deal for Northwest Natural to invest approximately $250 million over the next five years in Encana’s Jonah Field in Wyoming. – Will provide NW Natural with secure, reliable and economic supplies of natural gas for a portion of the needs of its 674,000 customers.• The Public Utility Commission of Colorado approved a 10-year long-term natural gas purchase contract with Xcel Energy and Anadarko set to begin this year. – Will cost the utility on average about $5.80 per thousand cubic feet over the 10 years.• Chesapeake recently agreed to sell Morgan Stanley 10 years of future gas output for approximately $745 million, providing stability to the price of gas for both producers and consumers. 13
  • 14. Natural Gas: A ManufacturingRenaissance• The abundance of stable priced natural gas has provided many American companies with the opportunity to revitalize their workforce and bring manufacturing operations back to America. 14
  • 15. 14 BCF/Day Of New Pipeline Capacity Added In 2011 Bison Pipeline Ruby Pipeline 133 Loop Expansion Acadian Haynesville Extension Golden Pass Pipeline FGT Phase VIII 2011 Projects Pascagoula Existing Natural Gas Pipelines Expansion Natural Gas Pipeline Projects > 100 miles Natural Gas Pipeline Projects < 100 milesSource: EIA, Ventyx Velocity 15
  • 16. PRODUCTION
  • 17. Horizontal Drilling Traditional Wells Horizontal Drilling 17
  • 18. Hydraulic FracturingMultiple protective layers extend Groundwater aquifers Private well, about 500 feet deepfrom surface to below aquifers. Public well, about 1,000 feet deep Several layers of steel tubes encased in cement protect groundwater supplies Protective steel casing encased in cement extends to shale depth Shale Fractures Depth from surface is typically more than a mile 18
  • 19. Innovations In ProductionWater Innovations• Onsite Water Recycling• Wastewater Treatment Facilities• Hybrid Stimulation• Abandoned Coal Mine Water• Reuse of Municipal Wastewater• Development of Electrocoagulation Non-Water Innovations• Greener Fluids •Emissions Reductions• Increased Efficiencies •Natural Gas STAR• Water Pipelines Reducing Truck •Horizontal Drilling •Development of Natural Gas Traffic Turbines• Involving Small Businesses in •Improving Estimates for Technically Water Reuse & Recycling Recoverable Gas• “The Marcellus Effect” and Water Purification Developments 19
  • 20. Responsible Production Means…• Being a good neighbor – Working in partnership with communities • Transparency and access to information – Companies are disclosing hydraulic fracturing chemicals through a registry run by state regulators• Commitment to innovations – New technologies to reduce environmental impacts• Appropriate state and federal regulation – Taking into account the unique geologic characteristics in each state 20
  • 21. TRANSPORTATION
  • 22. Driving Change• NGVs in fleets across America. – About 16 percent of all US transit buses are powered by natural gas – Waste trucks are fastest-growing segment – CNG-powered fire trucks and ambulances coming to market – Used by large fleets like USPS, UPS, AT&T, Comcast 22
  • 23. Cleaner For Vehicles• Compared to gasoline or diesel, NGVs: Reduce CO2 emissions 20-30% Reduce CO emissions 70-90% Reduce NOx emissions 75-95% Reduce Particulate Matter emissions 90% Reduce VOC emissions 89%Source: Argonne National Laboratory, U.S. DOE, 2012 23
  • 24. ANGA’s Role in Florida• Public Education about Safe and Responsible Development• Public Outreach through Advertising• Earned Media Advocacy• Policymaker and Regulator Outreach• Utility Outreach• Policy Research Assistance• NGV Education 24
  • 25. www.anga.us twitter @ANGAus Paul SmithDirector, Business Development psmith@anga.us