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Natural Gas
Florida Energy Pipeline AssociationJuly 19, 2012
Paul SmithDirector, Business Development
Smarter Power Today
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.
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ANGA Members
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Key Stakeholders
• Electric Utilities• State Regulators• Third Parties• Legislators
Strategy
• Outreach to stakeholders• Grassroots• Paid Advertising• Earned Media• Research/Consulting
ANGA’s Mission
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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.
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ABUNDANT
The Shale Gas Revolution
Source: EIA Annual Energy Outlook, 2008 to 2011
Haynesville
Fayetteville
New Albany
Floyd-Neal
Marcellus/Devonian/Utica
WoodfordBarnett-Woodford
Eagle Ford
Barnett
Lewis
Cody
Niobrara
Mulky
Bakken
Antrim
Baxter-Mancos
Mowry
Gammon
Mancos
Pierre
EIA: 2011
862TCF shale
2,543TCF total
67% INCREASE in just three years
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Abundant By Any Estimate
Sources: 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.org CERA: 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 NPC: Realizing the Potential of North America’s Abundant Natural Gas and Oil Resources Johns Hopkins University ; Prudent Development Study 2011
Estimates of U.S. Recoverable Natural Gas(TCF – trillion cubic feet))
1,268
2,074
1,532
1,3121,314
2,170 2,102
2,836
2,100
2,543
3,600
Potential Gas Committee Other Estimates
3,350
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Florida Industrial Gas Rates Have Dropped Considerably
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Total Utility Savings to Florida Consumers Were Over $3.9 Billion per Year in 2011 – 15 Percent of Utility Bills
Residential Commercial Industrial Total
Thousands of $ $33,863 $100,005 $202,496 $336,365
Electric Savings, Thousands of $ $1,869,698 $1,461,041 $274,887 $3,605,626
Total Savings, Thousands of $ $1,903,561 $1,561,046 $477,384 $3,941,991
Percent 14% 16% 20% 15%
Total Utility Cost Savings by Class, 12 Mos. Ended December 2011
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Price Stability
$0
$2
$4
$6
$8
$10
$12
2000 2005 2010 2015 2020 2025 2030 2035
Long-Term Price StabilityHenry Hub Spot Natural Gas Price($2010 / MMBtu)
Source: EIA Annual Energy Outlook: 2012 (Early Release), 2011, 2010, and 2009Henry Hub Spot prices (EIA reported actual prices included 2000 to 2010)
Historic Projected
Projection Range:
AEO 2009 – AEO 2012
AEO 2012
AEO 2010
AEO 2011
2010$/MMBtu
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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.
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Natural Gas: A Manufacturing Renaissance • 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.
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14 BCF/Day Of New Pipeline Capacity Added In 2011
Bison Pipeline
Ruby Pipeline
133 Loop Expansion
FGT Phase VIII
Pascagoula Expansion
Golden Pass Pipeline
Acadian Haynesville Extension
Existing Natural Gas PipelinesNatural Gas Pipeline Projects > 100 milesNatural Gas Pipeline Projects < 100 miles
Source: EIA, Ventyx Velocity
2011 Projects
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PRODUCTION
Horizontal Drilling
Traditional Wells Horizontal Drilling
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Hydraulic Fracturing
Groundwater aquifers
Depth from surface is typically more than a mile
Private well, about 500 feet deep
Protective steel casing encased in cement extends to shale depth
Public well, about 1,000 feet deep
Several layers of steel tubes encased in cement protect groundwater supplies
Shale Fractures
Multiple protective layers extend from surface to below aquifers.
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Water Innovations• Onsite Water Recycling• Wastewater Treatment Facilities• Hybrid Stimulation• Abandoned Coal Mine Water• Reuse of Municipal Wastewater• Development of Electrocoagulation• Greener Fluids• Increased Efficiencies• Water Pipelines Reducing Truck Traffic• Involving Small Businesses in Water
Reuse & Recycling• “The Marcellus Effect” and Water
Purification Developments
Non-Water Innovations•Emissions Reductions•Natural Gas STAR•Horizontal Drilling•Development of Natural Gas Turbines •Improving Estimates for Technically Recoverable Gas
Innovations In Production
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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
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TRANSPORTATION
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
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Cleaner For Vehicles
• Compared to gasoline or diesel, NGVs:
Reduce CO2 emissions
Reduce CO emissions
Reduce NOx emissions
Reduce Particulate Matter emissions
Reduce VOC emissions
20-30%
70-90%
75-95%
90%
89%
Source: Argonne National Laboratory, U.S. DOE, 201223
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
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