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The Oklahoma First Energy Plan: A Pragmatic Path ForwardC. Michael MingSecretary of EnergyState of Oklahoma
Southern States Energy BoardWashington, DC
February 27, 2012
Office of the Oklahoma
Secretary of Energy
Source: EIA Annual Energy Review, 2010
U.S. Total Energy Production Estimates
Source: EIA Energy Production Estimates, 2009
Oklahoma Ranks 8th in Total Energy Production
2.571
0
2
4
6
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12
14
Texas
Wyoming
Louisia
naWest V
irginia
Kentucky
Penn
sylvania
California
Oklahom
aCo
lorado
New
Mexico
Illinois
Alaska
Alabam
aUtah
Virginia
Mon
tana
Ohio
North Dakota
Arkansas
Indiana
New
York
Washington
Kansas
South Carolina
Iowa
North Carolina
Arizo
naMichigan
Tenn
essee
Florida
Geo
rgia
Mississippi
Oregon
Minne
sota
New
Jersey
Wisc
onsin
Neb
raska
Maryland
Missou
riCo
nnecticut
South Da
kota
Idaho
Maine
New
Ham
pshire
Massachusetts
Verm
ont
Nevada
Hawaii
Delaware
Rhod
e Island
Qua
drillion Btu
The Process Of Developing The Energy Plan
1. Does it grow Oklahoma’s economy?2. Does it create Oklahoma jobs?3. Does it protect and improve Oklahoma’s environment?4. Does it protect and improve the health of Oklahoma’s
citizens?5. Factoring in 3. & 4. above, does it provide reliable and
affordable energy for Oklahomans?6. Does it focus on Oklahoma’s unique human and natural
resources?7. Where are the opportunities to create leverage and
synergy from our resource base?
Available for download at: www.governor.ok.gov
Petroleum0.489 Quadrillion BTU
30.0%
Natural Gas0.678 Quadrillion BTU
41.6%
Coal0.373 Quadrillion BTU
22.9 %
Renewables0.089 Quadrillion BTU
5.5 %
Energy Inputs
Transportation0.421 Quadrillion BTU
25.8%
Industrial0.368 Quadrillion BTU
22.6%
Residential & Commercial0.124 Quadrillion BTU
7.6%
Electric Power0.717 Quadrillion BTU
44.0%
Demand Sectors
Percent of Sector
Note: Data does not include energy exports or retail electricity sales and electrical system energy losses.
1.630 Quadrillion BTU
Oklahoma Primary Energy Flow By Source and Sector, 2009
4
Percent of Source
Source: EIA State Energy Data System (SEDS), 2009
Oklahoma Exports About Two‐Thirds Of Its Natural Gas To Interstate Markets!
0.0
2.1
0.4
0.10.4
0.70.5
0.1
0.9
0.0
0.5
1.0
1.5
2.0
2.5
Coal Natural Gas Petroleum Renewables Net Energy Exports
QuadrillionBtu
Oklahoma Net Energy Exports
Production
Consumption
Net Energy Exports
Total Production: 2.571Total Consumption (Est.): 1.630
Natural gas accounts for more than 80% of the energy produced in Oklahoma!
Source: EIA State Energy Data System (SEDS), 2009
Oklahoma Crude Oil & Natural Gas Production
Source: EIA, 2010
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Million Ba
rrels
Trillion Cu
bic Feet
Natural Gas Crude Oil
Coal22.9 %
Natural Gas41.6 %
Petroleum30.0 %
Renewables5.5 %
Renewables Provide About 5.5% Of Oklahoma Energy
Biomass31.6 %
Source: EIA State Energy Data System (SEDS), 2009
Wind29.5
Hydroelectric38.9%
Solar/PV & Geothermal<1%
Note: Data excludes net interstate flow of electricity
Oklahoma Wind Capacity
Source: EIA Electric Power Annual, 2010; OK Dept. of Commerce, 2012
0
500
1000
1500
2000
2500
3000
3500
2003 2004 2005 2006 2007 2008 2009 2010 2011 2012*
Nam
eplate Cap
acity
(MW)
*Projects Under Construction
Electricity GenerationSummer Capacity
Actual Electricity Generation
Natural Gas
Coal
HydroelectricWind
Biomass, Wood, & Derived Fuels
Petroleum
61.6%
5.3%
7.0%
0.5%<0.1%
25.4%
Oklahoma Electric Power Industry Profile
Source: EIA Electric Power Annual, 2010
0.4%
0.3%
5.3%
4.1%
47.0%
43.6%
Total Generation72,250,733 MWh
Total Capacity21,022 MW
Source: EIA 2011, Average Retail Price of Electricity to Ultimate Customers, Form EIA‐861
National Average: 9.83 cents/kWh
Oklahoma Average: 7.59 cents/kWh
Oklahoma Ranks Among The Top States For Affordable Electricity Prices
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5.00
10.00
15.00
20.00
25.00
30.00
HI CT NY
NH AK NJ
MA RI DC VT CA ME
MD DE FL PA MI
WI
NV AZ TX CO OH IL AL GA VA NC TN MS SC MN
NM KS MT SD LA MO IN IA OK
OR NE
WV AR ND UT KY WA ID WY
Cents/kW
h
The Oklahoma First Concept
• Enhance all forms of Oklahoma energy production
• Create jobs and grow the economy
• Reduce dependence on foreign oil
• Make the energy system smarter and more efficient
• Protect the environment & human health
• Build new markets for Oklahoma natural gas
• Support local industry & attract new industry
• R&D: The Oklahoma Energy Initiative
Available for download at: www.governor.ok.gov
The Centerpiece, But Not The Only Piece
Natural Gas
RenewablesIntegration
High End Use Efficiency
DistributedGeneration & Combined
Heat & Power
Transportation Fuel Diversity
Ultra Low Emissions
Reliable, Affordable, Abundant, &
Secure
Rampable & Highly Efficient Power
Generation
As Supply Grows, Price Remains Low & Stable• Lower 48 supply has grown by 13.5 billion cubic feet per day since 2004, up 33%
– Driven by horizontal shale and infrastructure development– Impact has been more stable pricing
$0
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Lower 48 Production Natural Gas Price
Note: Natural gas price and range are for Henry Hub trading pointSource: Devon Energy Corporation
U.S
. Lo
wer
48
prod
ucti
on(b
illio
n cu
bic
feet
per
day
)
Gas
pri
ce (
$ pe
r m
illio
n Bt
u)
CNG: Providing The Chicken & The Egg
Economic/Environmental Benefits
• Economic:– In Oklahoma, transitioning 500 new state vehicle purchases to run on CNG
could save the state as much as $345,000/year in fuel costs:• $3.00/gallon & $1.85/gge• 15,000 miles/year• 25 mpg
• Environment: – CNG as a replacement for gasoline in light duty vehicles reduces emissions:
• CO by 90% ‐ 97% • NOx by 35% ‐ 60% • Virtually all PM
Keystone XL ODOT’s Rolling Pipeline
Clean Line
“Development of the Mississippian could bring more than 100,000 jobs to Oklahoma and Kansas over the next five years, with Oklahoma City being the hub for that growth.”
SandRidge CEO, Tom Ward
Meeting Infrastructure Needs
Advancing Oklahoma Renewable Target
Source: Federal Energy Regulatory Commission (FERC) 2011, available at: http://www.ferc.gov/market‐oversight/othr‐mkts/renew/othr‐rnw‐rps.pdf
Untapped Efficiency Potential
Sources: U.S. Energy Information Administration, State Energy Data Systems 2008; U.S. Bureau of EconomicAnalysis, Regional Economic Accounts, Gross Domestic Product by State;American Council for an Energy‐Efficient Economy , State Efficiency Scorecard 2011
Among Western States, Oklahoma Ranks 4th In Terms Of Industrial Efficiency Potential ‐ $890 Million Potential Savings With A 2.5%/year Energy Intensity Goal from 2012 – 2016
Benchmarking & Improving State Buildings
The Nation’s First Energy Star Certified Capitol Building!
Building1‐Jul‐09 1‐Jul‐10 1‐Jul‐11Energy
Star Rating Rating Rating
Allen Wright Memorial Library 88 90 91Attorney General 73 77 77Banking Commission N/A 45 57Construction & Properties (LEED) 12 N/A 97Connors/Hodge* 68 76 74Denver Davison Courts 35 34 61Dept. of Agriculture 35 84 89Dept. of Transportation 69 68 76Jim Thorpe 77 76 83Kerr‐Edmondson 87 90 91Sequoyah/Will Rogers* 80 84 87State Capitol 82 88 89
Oklahoma Department Of Central Services: An Energy Efficiency Success Story
Source: Oklahoma Department of Central Services, 2011
Advancing Oklahoma’s Qualified Workforce
Learn more at www.OKJobMatch.com
R&D: The Oklahoma Energy InitiativeCO2 EOR
Wind Forecasting
UnconventionalNatural Gas & Oil Resources
Renewables Integration
Advanced Biofuels
Energy System Optimization
Energy, Water, & Environment
Academia
StatePrivate
Moving Forward
Wind/Gas Partnership
Combined Heat & Power (CHP)
Energy Efficient Building Codes (IECC)
Hydraulic Fracturing Chemical Disclosure (OCC RM No. 201200005)
C. Michael MingEmail: michael.ming@doe.ok.gov
Web: www.energy.ok.gov
Office of the Oklahoma
Secretary of Energy
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