Texas Technology Partners texastechnologypartners Mark Armentrout marmentrout@yahoo

1

TTPTexas Technology Partners

Sierra Club Earth, Wind and Fire Energy SummitThe Future of Energy Fuel Sources

Texas Technology Partnerswww.texastechnologypartners.com

Mark Armentroutmarmentrout@yahoo.com

October 4, 2014

TTPTexas Technology Partners

2

TTPTexas Technology PartnersSierra Club Earth, Wind and Fire

Energy SummitThe Future of Energy Fuel Sources

Consider the uses of energy

3

TTPTexas Technology Partners

Sierra Club Earth, Wind and Fire Energy SummitThe Future of Energy Fuel Sources

WTI crude oil futures price10/1/2014: $90.73/bbldown$2.07 from week earlierdown$11.31 from year earlierNatural gas futures price10/1/2014: $4.023/mmBtuup$0.112 from week earlierup$0.414 from year earlierNatural gas inventories9/26/2014: 3,100 Bcfup112 Bcf from week earlierdown373 Bcf from year earlierCrude oil inventories9/26/2014: 356.6 mmbbldown1.4 mmbbl from week earlierdown7.1 mmbbl from year earlierWeekly coal production9/20/2014: 18.833 million tonsdown0.343 million tons from week earlier

?

Source::DOE/EIA

Considerthe pricesof energy

Consider the availability of energy

4

TTPTexas Technology Partners

Sierra Club Earth, Wind and Fire Energy SummitThe Future of Energy Fuel Sources

Renewables

Hydropower

Petroleum/Other

Natural Gas

Nuclear

Coal

0 200 400 600 800 1000 1200 1400 1600 1800 2000

2040

2012

EIA Fuel Source Projections in Billions of Kilowatts

5

TTPTexas Technology PartnersElectric Utility Structure in Competitive Market

CompetitiveGeneration

Competitive Retail Electric Providers (REPs)

Customer

Regulated utilities prohibited from selling

electricity or other competitively available

energy services, or from discriminating among generators or among

REPs/retail customers

Regulated Open Access

Transmission & DistributionProviders (TDSPs)

(Source: ERCOT)

6

TTPTexas Technology PartnersTen ISO/RTOs in the US

ERCOT is one of ten North American ISOs/RTOs

ISOs/RTOs serve 67% of U.S. population

Goal: Efficiency and impartiality for wholesale deregulation

Independent System Operators (ISOs) are single-state or multiple-state entities established under Order 888 of the Federal Energy Regulatory Commission.  Regional Transmission Operators (RTOs) perform similar or expanded services across a multi-state area, and have been approved by FERC as meeting the requirements of FERC Orders 2000 and 2001. ISOs perform equivalent services but tend to be smaller in geographic size, or are not subject to FERC jurisdiction (as in Canada and central Texas).

7(Source: ERCOT)

Summer Peak Day Load Shape with Fuel Mix

Coal

DC Imports

Nuclear

Wind

Natural Gas

$0

$500

$1,000

$1,500

$2,000

$2,500

$3,000

$3,500

0

10,000

20,000

30,000

40,000

50,000

60,000

70,000

80,0000:00

1:00

2:00

3:00

4:00

5:00

6:00

7:00

8:00

9:00

10:00

11:00

12:00

13:00

14:00

15:00

16:00

17:00

18:00

19:00

20:00

21:00

22:00

23:00

August 3, 2011 Natural Gas Wind Nuclear Hydro

Other DC Imports Coal Energy Price

MW

$/M

Wh

$25 - $75

$3001

TTPTexas Technology Partners

8

TTPTexas Technology PartnersRetail Electricity Deregulation

Green: Some Level of deregulationYellow: SuspendedWhite: Regulated http://www.eia.gov

9

TTPTexas Technology PartnersThe Oil and Gas Picture – All Reservoir Types

10

TTPTexas Technology PartnersGas! Gas! Gas! – Price Forecasts

11

TTPTexas Technology PartnersShale Plays in the Lower 48

12

TTPTexas Technology PartnersUS Shale Play Production History

13

TTPTexas Technology PartnersWhere is the wind?

14

TTPTexas Technology PartnersWhere is the Sun?

15

TTPTexas Technology PartnersElectric Vehicles – Where are they going?

What is the fuelsource forplug in cars?

16

TTPTexas Technology Partners

Texas Technology Partnerswww.texastechnologypartners.com

Mark Armentroutmarmentrout@yahoo.com

Thank You