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Michigan State Energy Profile

Michigan Quick Facts• In 2012, Michigan had more underground natural gas storage capacity – 1.1 trillion cubic feet – than any other

state in the nation.

• The Antrim Gas Field, located in Michigan's Lower Peninsula, was ranked 15th in the nation in estimated proved

wet natural gas reserves as of 2009 and produced an estimated 126 billion cubic feet of gas that year.

• In 2013, Michigan’s three nuclear power plants, with four reactor units, provided 28% of the state's net electricity

generation.

• Michigan used coal for 54% of its net electricity generation in 2013; much of its coal is brought by rail from

Wyoming and Montana.

• Biomass, much of it from Michigan’s almost 19 million acres of forest land, provided fuel for 42% of Michigan's

renewable net electricity generation in 2013.

• Because the weather in Michigan is cooler than in other areas of the United States, space heating makes up a

greater portion of energy use in homes (55 percent) compared to the U.S. average (41 percent), while air

conditioning makes up only 1 percent of energy use, according to EIA's Residential Energy Consumption Survey.

Last Updated: March 27, 2014

Michigan Energy Consumption Estimates, 2012

Coal

Natural Gas

Distillate Fuel Oil

Jet Fuel

LPG

Residual Fuel

Other Petroleum

Nuclear Electric Power

Hydroelectric Power

Biomass

Other Renewables

0 100 200 300 400 500 600 700 800 900

Trillion Btu

Page 1 of 14Michigan Profile

10/01/2014http://www.eia.gov/state/print.cfm?sid=MI

Source: Energy Information Administration, State Energy Data System



Michigan Energy Consumption by End-Use Sector, 2012

Michigan Energy Production Estimates, 2012

26.0 %

21.5 %

26.1 %

26.5 %

Residential

Commercial

Industrial

Transportation

Coal

Natural Gas - Marketed

Crude Oil

Nuclear Electric Power

Biofuels

Other Renewable Energy

0 50 100 150 200 250 300 350

Trillion Btu





DataLast Update: September 18, 2014 | Next Update: October 16, 2014

Energy Indicators

Michigan Net Electricity Generation by Source, Jun. 2014

Michigan Price Differences from U.S. Average, Most Recent Monthly

Petroleum-Fired

Natural Gas-Fired

Coal-Fired

Nuclear

Hydroelectric

Other Renewables

0 500 1,000 1,500 2,000 2,500 3,000 3,500 4,000 4,500 5,000

GWh

Natural Gas - Citygate

Electricity - Residential

Electricity - Commercial

Electricity - Industrial

-30 -25 -20 -15 -10 -5 0 5 10 15 20

Percent

Source: Energy Information Administration, Electric Power Monthly

Source: Energy Information Administration, Petroleum Marketing Monthly; Natural Gas Monthly;

Electric Power Monthly



Energy Indicators

Demography Michigan Share of U.S. Period

Population 9.9 million 3.1% 2013

Civilian Labor Force 4.7 million 3.0% Jul-14

Economy Michigan U.S. Rank Period

Gross Domestic Product

$ 400.5 billion 13 2012

Gross Domestic

Product for the Manufacturing Sector

$ 66,230 million 8 2012

Per Capita Personal

Income

$ 39,215 36 2013

Vehicle Miles Traveled 94,548 million miles 10 2012

Land in Farms 9.9 million acres 28 2012

Prices

Petroleum Michigan U.S. Average Period find more

Domestic Crude Oil

First Purchase

$ 101.89 /barrel $ 98.70 /barrel Jun-14

Natural Gas Michigan U.S. Average Period find more

City Gate $ 4.46 /thousand cu ft $ 5.96 /thousand cu ft Jun-14 find more

Residential $ 12.87 /thousand cu ft $ 16.06 /thousand cu ft Jun-14 find more

Coal Michigan U.S. Average Period find more

Average Sales Price -- $ 39.95 /short ton 2012

Delivered to Electric Power Sector

W $ 2.37 /million Btu Jun-14

Electricity Michigan U.S. Average Period find more

Residential 14.94 cents/kWh 12.97 cents/kWh Jun-14 find more

Commercial 11.20 cents/kWh 10.94 cents/kWh Jun-14 find more

Industrial 7.99 cents/kWh 7.30 cents/kWh Jun-14 find more

Reserves & Supply

Reserves Michigan Share of U.S. Period find more

Crude Oil 56 million barrels 0.2% 2012 find more

Dry Natural Gas 1,750 billion cu ft 0.6% 2012 find more

Expected Future

Production of Natural Gas Plant Liquids

26 million barrels 0.2% 2012 find more



Energy Indicators

Recoverable Coal at

Producing Mines

-- -- 2012 find more

Rotary Rigs & Wells Michigan Share of U.S. Period find more

Rotary Rigs in

Operation

0 rigs 0.0% 2013

Natural Gas Producing

Wells

10,900 wells 2.3% 2012 find more

Production Michigan Share of U.S. Period find more

Total Energy 618 trillion Btu 0.8% 2012 find more

Crude Oil 606 thousand barrels 0.2% Jun-14 find more

Natural Gas - Marketed 129,333 million cu ft 0.5% 2012 find more

Coal -- -- 2012 find more

Capacity Michigan Share of U.S. Period

Crude Oil Refinery

Capacity (as of Jan. 1)

120,000 barrels/calendar day 0.7% 2013

Electric Power Industry

Net Summer Capacity

30,730 MW 2.9% Jun-14

Net Electricity

Generation

Michigan Share of U.S. Period find more

Total Net Electricity

Generation

9,108 thousand MWh 2.5% Jun-14

Net Electricity

Generation (share of

total)

Michigan U.S. Average Period

Petroleum-Fired 0.1 % 0.3 % Jun-14 find more

Natural Gas-Fired 10.8 % 27.3 % Jun-14 find more

Coal-Fired 50.8 % 38.7 % Jun-14 find more

Nuclear 30.6 % 19.1 % Jun-14 find more

Hydroelectric 1.3 % 7.2 % Jun-14 find more

Other Renewables 5.1 % 6.8 % Jun-14

Stocks Michigan Share of U.S. Period find more

Motor Gasoline

(Excludes Pipelines)

317 thousand barrels 1.5% Jun-14

Distillate Fuel Oil

(Excludes Pipelines)

1,098 thousand barrels 1.2% Jun-14 find more

Natural Gas in

Underground Storage

671,495 million cu ft 10.6% Jun-14 find more



Energy Indicators

Petroleum Stocks at

Electric Power

Producers

413 thousand barrels 1.4% Jun-14 find more

Coal Stocks at Electric

Power Producers

4,380 thousand tons 3.3% Jun-14 find more

Production Facilities Michigan

Major Coal Mines None find more

Petroleum Refineries Marathon Petroleum (Detroit) find more

Major Non-Nuclear

Electricity Generating

Plants

Monroe (Detroit Edison Co) ; Ludington (Consumers Energy Co) ; Dan E

Karn (Consumers Energy Co) ; Midland Cogeneration Venture (Midland

Cogeneration Venture) ; Belle River (Detroit Edison Co)

Nuclear Power Plants Donald C Cook (Indiana Michigan Power Co), Fermi (Detroit Edison Co),

Palisades (Consumers Energy Co)

find more

Distribution & Marketing

Distribution Centers Michigan

Petroleum Ports Detroit. find more

Natural Gas Market

Centers

None

Major Pipelines Michigan find more

Crude Oil Enbridge, Sunoco

Petroleum Product Buckeye Partners, Wolverine Pipeline, Marathon Pipeline, Sunoco

Natural Gas Liquids Buckeye Partners, Enbridge, Kinder Morgan

Interstate Natural Gas Pipelines

ANR Pipeline Co., ANR Storage Co., Great Lakes Gas Transmission Ltd, Northern Natural Gas Co., Panhandle Eastern Pipe Line Company, Vector

Pipeline LP

Fueling Stations Michigan Share of U.S. Period

Motor Gasoline 3,756 stations 3.4% 2011

Liquefied Petroleum

Gases

75 stations 2.7% 2013

Compressed Natural

Gas

19 stations 1.6% 2013

Ethanol 129 stations 5.0% 2013

Other Alternative Fuels 673 stations 4.2% 2013

Consumption & Expenditures

Summary Michigan U.S. Rank Period

Total Consumption 2,705 trillion Btu 11 2012 find more



Energy Indicators

Total Consumption per

Capita

274 million Btu 35 2012 find more

Total Expenditures $ 39,315 million 11 2012 find more

Total Expenditures per

Capita

$ 3,978 37 2012 find more

by End-Use Sector Michigan Share of U.S. Period

Consumption

» Residential 702 trillion Btu 3.5% 2012 find more

» Commercial 581 trillion Btu 3.3% 2012 find more

» Industrial 705 trillion Btu 2.3% 2012 find more

» Transportation 717 trillion Btu 2.7% 2012 find more

Expenditures

» Residential $ 8,646 million 3.7% 2012 find more

» Commercial $ 5,685 million 3.3% 2012 find more

» Industrial $ 5,472 million 2.4% 2012 find more

» Transportation $ 19,512 million 2.7% 2012 find more

by Source Michigan Share of U.S. Period

Consumption

» Petroleum 154.9 million barrels 2.3% 2012 find more

» Natural Gas 790.1 billion cu ft 3.1% 2012 find more

» Coal 32.0 million short tons 3.6% 2012 find more

Expenditures

» Petroleum $ 22,119 million 2.5% 2012 find more

» Natural Gas $ 5,880 million 4.4% 2012 find more

» Coal $ 1,918 million 4.2% 2012 find more

Consumption for

Electricity Generation


Petroleum 24 thousand barrels 1.6% Jun-14 find more

Natural Gas 8,345 million cu ft 1.1% Jun-14 find more

Coal 2,569 thousand short tons 3.4% Jun-14 find more

Energy Source Used

for Home Heating

(share of households)

Michigan U.S. Average Period



Energy Indicators

Natural Gas 77.6 % 49.4 % 2012

Fuel Oil 1.7 % 6.5 % 2012

Electricity 7.6 % 35.5 % 2012

Liquefied Petroleum

Gases

8.8 % 5.0 % 2012

Other/None 4.3 % 3.6 % 2012

Environment

Special Programs Michigan find more

Clean Cities Coalitions Ann Arbor, Detroit, Greater Lansing

Alternative Fuels Michigan Share of U.S. Period find more

Alternative Fueled

Vehicles in Use

31,548 vehicles 2.7% 2011 find more

Ethanol Plant Operating

Capacity

268 million gal/year 1.9% 2014 find more

Ethanol Consumption 10,771 thousand barrels 3.5% 2012 find more

Total Emissions Michigan Share of U.S. Period find more

Carbon Dioxide 157.0 million metric tons 2.9% 2011

Electric Power

Industry Emissions


Carbon Dioxide 67,876,595 metric tons 3.1% 2012

Sulfur Dioxide 214,979 metric tons 5.8% 2012

Nitrogen Oxide 80,818 metric tons 3.8% 2012

AnalysisLast Updated: December 18, 2013

Overview

Michigan, known as the Great Lakes State, has within its boundaries portions of

four of the five Great Lakes. The state has more shoreline than any other state

except Alaska, and vessels that transit the Great Lakes–Saint Lawrence Seaway

arrive and depart from its many ports. The northern ends of Lake Michigan and

Lake Huron divide Michigan into two distinct sections, the Upper Peninsula, which

is lightly populated and heavily forested, and the Lower Peninsula, where most of

the state's population lives and all of the major cities, manufacturing industries,

and commercial agriculture are located. Michigan's largest and longest rivers are

in the Lower Peninsula, but of the state's more than 150 waterfalls, all but one are

located in the Upper Peninsula. With almost 40,000 square miles of the Great

With over one-

half of the state

forested,

Michigan has

abundant

woody biomass.



Lakes within its borders and thousands of smaller inland lakes, almost one-half of Michigan is water.

Michigan's energy resources include natural gas and crude oil, as well as renewable resources in the form of biomass,

hydroelectric power, and wind. With over one-half of the state's land area forested, Michigan has abundant woody

biomass. The state has many rivers, but hydroelectric power generation is limited by the generally level terrain and

relatively small size of many of the rivers. Winds, occasionally of gale force, sweep in across the lakes and provide the

state with another potential resource.

Michigan has a temperate climate with four seasons. Generally, the Great Lakes moderate temperatures with the most

extreme temperature highs and lows occurring in the interior of the Lower Peninsula, away from the lakes. Snowfall, on

the other hand, is highest along the lakes because of the lake-effect snows created by cold air blowing over the warmer

lake waters. The lakes also cause Michigan to have more cloudy days than most states. Despite its cold winters and its

high total energy consumption, Michigan's large population places it in the bottom one-third of all states in energy use per

capita. The residential sector is the leading energy consumer, followed closely by transportation, and then the industrial

sector. The state's most valuable manufactured products are transportation equipment, including automobiles, trucks,

buses, airplanes, and boats. Energy-intensive industrial activities in the state include not only automotive manufacturing,

but also the forest products, machinery manufacturing, fabricated metal products, and petroleum refining industries.

Petroleum

Although Michigan has one oil field that has produced more than 100 million barrels of oil since its discovery in 1957,

current crude oil production and reserves in Michigan are modest and account for far less than 1% of both the nation's

total production and reserves. The state's one refinery, located in Detroit, was recently upgraded to allow the processing

of heavy Canadian crude oils and to increase refinery capacity to 120,000 barrels per calendar day.

Several petroleum pipelines service the state. Two major crude oil pipelines from western Canada, both part of the

Lakehead Pipeline System, enter Michigan from the northwest and southwest, supplying both Michigan and eastern

Canada. Other pipelines come up from the Gulf South. Petroleum product pipeline systems that supply Michigan markets

enter the Lower Peninsula from the Chicago area to the southwest and also from the southeast. There are no petroleum

product pipelines in the Upper Peninsula. Domestic petroleum products enter the Upper Peninsula at the port of

Escanaba. The Lower Peninsula port cities of Detroit and Port Huron receive petroleum products from Canada. Port

Huron also receives crude oil imports from Canada.

Petroleum is consumed in the state primarily as motor gasoline. Although most of the state can sell conventional motor

gasoline year-round, the vapor pressure of motor gasoline sold in all eight Detroit area counties during the summer

ozone season is regulated to reduce emissions that contribute to ground-level ozone. Consumption of liquefied

petroleum gas (LPG) is high in Michigan. The state has the largest residential LPG consumption in the nation and ranks

among the top 10 states in the use of LPG overall.

Natural gasMichigan has significant natural gas reserves. The Antrim Field in the northern portion of the Lower Peninsula is one of

the top 100 natural gas fields in the nation as ranked by proved reserves. However, natural gas production in Michigan

peaked in the late 1990s and is declining. Current natural gas exploration is focusing on the Collingwood Shale, which

underlies the Utica Shale in northern Michigan. The state's natural gas marketed production meets less than one-fifth of

the state's needs. Several pipelines cross Michigan on the way to markets in the northeastern United States and eastern

Canada and satisfy the remainder of the state's natural gas demand. Natural gas enters the state from Indiana, Ohio,

and Wisconsin. Michigan also receives natural gas imports from Canada at Marysville, St. Clair, and Detroit. The bulk of

the natural gas flowing out of Michigan flows into Canada at St. Clair, Detroit, Marysville, and Sault Ste. Marie.

Driven largely by the residential sector, Michigan's natural gas consumption is

high. The state routinely ranks among the top 5 in residential use of natural gas,



and in the top 10 in total consumption. Nearly four-fifths of Michigan households

use natural gas as their primary source for home heating. With more than one-

tenth of U.S. capacity, Michigan has the most underground natural gas storage

capacity in the nation, and, after Pennsylvania, the second largest number of

natural gas storage fields. During the high-demand winter months natural gas is

withdrawn from storage and supplied within Michigan and to neighboring states.

CoalAlthough Michigan produced substantial amounts of coal between 1860 and 1949,

there are not currently any active coal mines within the state. However, Michigan's

ports handle almost one-third of all Great Lakes coal shipments. The state relies

heavily on coal for electricity generation, and some coal is used by coke plants, the industrial sector, and others. The

majority of the coal consumed in Michigan comes by rail from the west, primarily from Wyoming and, to a much lesser

extent, from Montana and Colorado. A significant amount also comes from nearby states, including some from the

Appalachian coal fields of West Virginia and Kentucky.

ElectricityBecause of Michigan's unique geography, the state is serviced by two major

interstate electricity grids. One covers the Lower Peninsula and a small portion of

the Upper Peninsula, and the other covers much of the Upper Peninsula. About

one-half of the electricity generated in Michigan is produced by coal-fired power

plants, the majority of which are in the southern half of the Lower Peninsula.

Michigan's three nuclear power plants, with a total of four reactors, are in the

extreme southern portion of the state and typically supply more than one-fourth of

the state's generation. Natural gas fuels much of the remainder, with renewables,

including hydroelectric power, routinely contributing less than 5% of the electricity

generation delivered to the grid.

Although the amount of net electricity generation in Michigan is in the top one-third of states, residential electricity sales

per person in Michigan are below the national average, in part because of low demand for air conditioning during the mild

summers and a reliance on natural gas for home heating. Less than one-tenth of Michigan households rely on electricity

as their primary source of energy for home heating.

Renewable energyMichigan's renewable electricity generation comes predominantly from biomass,

with a lesser amount from hydroelectric power and a small but rapidly growing

contribution from wind energy. Substantial renewable electricity generation comes

from wood and wood waste. Other sources include more than 100 hydroelectric

power plants and several facilities that generate electricity using methane

recovered from landfills and anaerobic digesters on some of Michigan's many

dairy farms. Although the state's wind resource is ranked as only 18th in the

nation, in recent years, Michigan has been among the top states in percentage

increase in wind capacity. More than 600 megawatts of additional wind generation

capacity was installed in 2012 helping the state's net generation from wind more

than double. Michigan has about 20 electric utility-scale wind farms. Overall, however, renewable power generation

contributes only minimally to the state's electricity grid.

Michigan has

the most

underground

natural gas

storage capacity

in the nation.

About one-half

of the electricity

generated in

Michigan is

produced from

coal.

Michigan's wind

capacity is

among the

fastest growing

in the nation.



Michigan has several ethanol and biodiesel production plants in operation. A major corn producer, Michigan uses corn as

a feedstock for its ethanol plants. Those plants have the ability to produce more than 260 million gallons of ethanol each

year from that feedstock. Michigan also has a small cellulosic ethanol plant that uses wood sugars as a feedstock.

Michigan's Clean, Renewable, and Efficient Energy Act, enacted in 2008, requires that all electricity providers obtain at

least 10% of their electricity supply from renewable energy resources by 2015. The act defines renewable energy

resources as biomass; solar and solar thermal energy; wind energy; kinetic energy of moving water; geothermal energy;

municipal solid waste; and landfill gas produced by municipal solid waste. Electricity generation from hydroelectric

facilities at newly constructed dams does not count toward the 10% requirement, but generation from modified facilities at

existing dams does. The standard also allows electric utilities to use energy efficiency and advanced cleaner energy

technologies to fulfill part of the requirement. The state's two largest investor-owned electric utilities have additional

requirements called renewable energy capacity standards. Those capacity standards are based on the number of

customers each of the two utilities served at the beginning of 2008. The energy produced from new facilities that meet

the capacity standards may be counted towards the 10% required from renewable energy resources for each of those

electric utilities.

Michigan offers tax incentives in Renewable Energy Renaissance Zones. Those zones were created to promote the

development of a renewable energy manufacturing industry in the state.

Other Resources

Energy-Related Regions and Organizations

• Regional Transmission Organization (RTO): Midwest Independent Transmission System Operator (MISO), PJM

Interconnection (PJM)

• Petroleum Administration for Defense District (PADD): 2

• North American Electric Reliability Corporation (NERC) Region: Midwest Reliability Organization (MRO, Reliability

First Corporation (RFC)

Other Websites

• Michigan Energy Office

• Michigan Public Service Commission

• Michigan Department of Human Services, Energy and Weatherization

• Michigan Public Service Commission, Renewable Energy

• Alternative Fuels and Advanced Vehicle Data Center - Federal and State Incentives and Laws

• Michigan Department of Environmental Quality, Office of Oil, Gas, and Minerals

• Benefits.Gov Energy Assistance (105)

• DSIRE - Database of State Incentives for Renewables and Efficiency

• National Association of Regulatory Utility Commissioners (NARUC)

• National Association of State Energy Officials (NASEO)

• National Conference of State Legislatures (NCSL)-Issues and Research - News Highlights: Issues and Research

- Energy

• National Renewable Energy Laboratory (NREL)-Dynamic Maps, Geographic Information System (GIS) Data and

Analysis Tools - Maps

• U.S. Geological Survey (USGS) Maps, Imagery, and Publications - Maps

• Interstate Oil and Gas Compact Commission

• United States Department of Health and Human Services - Administration for Children and Families - Low Income

Home Energy Assistance Program



Email suggestions for additional Michigan website resources to: [email protected].





Documents

Tracie Michigan State Energy Profile Economic Data... · Michigan State Energy Profile ... (Consumers Energy Co) ; Midland Cogeneration Venture ... Michigan's energy resources include