John Hanger Webinar: The Truth About Gas Drilling and America's Energy Choices
0 likes366 views
This document is from MarcellusDrilling.com and discusses trends in U.S. energy production and use. It notes that the U.S. set gas production records in 2011 and is now the world's largest gas producer, with shale gas making up 37% of supply. It also discusses increases in renewable energy like wind and solar and decreasing use of oil and coal. The document outlines criticisms of natural gas drilling but argues that gas and renewables will continue growing to replace coal and oil in the coming decades.
John Hanger Webinar: The Truth About Gas Drilling and America's Energy Choices
- 2. Jim Willis Editor, MDN http://MarcellusDrilling.com 2
- 4. There Are No Perfect Energy Choices All Energy Choices Have Strengths & Weaknesses Fairly Stated Criticism of An Energy Source Is Typically Accurate 4
- 5. Gas Production in 2011 Set Record U.S. World’s Number 1 Gas Producer Shale Gas About 37% of total U.S. Gas Supply U.S. Oil Production Increasing For First Time in 35 Years – Over 6 Million Barrels Per Day U.S. Oil Imports Decline From 60% in 2005 to 42% Today 5
- 6. Oil 34% Natural Gas 26% Coal 19% Renewables 11% Nuclear 10% 6
- 7. Coal Gas Nuclear Wind Solar 2000 52% 16% 20% 0 0 2011 42% 26% 20% 3% 0.2% 2012 36% 29% 20% 4% 0.4% Renewable Energy of all Types (Hydro, Biomass) Provided About 11% of U.S. Electricity Supply in 2011 Coal Fell to 34% in March 2012 7
- 8. Wind Has Doubled Since 2008: 25,000 MW to 50,000 MW Iowa - 20% of Electricity From Wind Texas – 7% of Electricity From Wind 8
- 9. Wind Power Costs Cut 65% Since 2003 Wind Generation Now Costs 5 Cents Per Kwh Global Wind Installations About 240,000 MW 9
- 10. U.S. Solar Has Increased 700% Since 2008 500 MW to 4,000 MW Solar Costs Cut From $10 Per Watt to About $2.75 Per Watt for Large Projects Rooftop Solar in $3 to $4 Per Watt Range 10
- 11. Global Solar Market Was About 28,000 MW in 2011 $90 Billion Dollar Industry Total Installed Solar Globally About 70,000 MW 11
- 12. Oil Use Back to 1999 Levels Gasoline Use Back to 2001 Levels Total Energy Use at 2000 Levels New Cars Sold in February 2012 18% More Fuel Efficient Than in October 2007 12
- 13. Oil Had Been Above $100 For Sustained Period Oil Consumption Globally at Record Level U.S. Oil to Gas Price Ratio at Record Levels: 35 to 1 13
- 14. Natural Gas Prices at $1.80 to $2.75 per Thousand Cubic Feet from January to June 2012 Natural Gas Prices at $4.20 for Thousand Cubic Feet in April 2011 July 2008 Price of $13/mcf 30% of U.S. Electricity Gas Fired in March 2012 14
- 15. Strategic Objective Should Be: Produce the Gas and Protect the Environment Natural Gas Development Must Be Strongly Regulated and Reasonably Taxed Natural Gas Production Cannot Be Done with Zero Impact on Environment 15
- 16. Approximately 400,000 Oil & Gas Wells Drilled in Pennsylvania’s History First Exploratory Shale Gas Wells Drilled in 2005 Pennsylvania Now Produces 5-3 bcf/day or About 2 Trillion Cubic Feet/Year Pennsylvania Now Ranks In Gas Production & Produces About 10% of U.S. Gas 16
- 17. 1. Impact on Water from Drilling /Wastewater - Streams - Private water wells - Withdrawals 2. Operational Problems/Accidents - Spills - Leaks - Fires – Response time - Blow outs – Response time - 50 plus emergency responses 17
- 18. 3. Truck Traffic Impact & Safety - Congestion - Road damage - Unsafe trucks 4. Gas Migration 5. Public Lands: State Forests & Parks 18
- 19. 6. Staffing of Oil and Gas Program - Number of employees - Location 7. Air Impacts - Nox - HAPs 19
- 20. 8. Seismic Impacts from Deep Well Injections - Arkansas - Ohio 9. Disclosure of Chemicals 20
- 21. Review & Strengthen All Rules 5 Regulatory Packages Enacted 1. Water Withdrawal Plan: August 2008 2. Waste Water Disposal/TDS Rule: August 2010 3. New, Strong Drilling Standards: January 2011 4. 150 Feet Mandatory Buffer from All Development for 22,000 Miles of High Quality Steams: November 2010 5. Raise Permit Fee to Drill From $100 to an Average of More than $3,000 21
- 22. Staffing 88 Positions in Oil Gas Program as of September 2008 Raised Fee When Applying For a Permit from $100 to as much as $10,000 for Deep Wells Doubled Staff to 202 by January 2011 22
- 23. Enforcement of Rules 1,200 Violations Issued During 2010 1,100 Violations Issued During 2011 Companies Pay for Clean Up of Spills, Leaks, Gas Migration 23
- 24. 24
- 25. Water Impacts From Gas Drilling Exist & Include Methane Migration to About 50 to 100 Private Water Wells But Water Impacts of Gas Drilling Are Less Than: Oil Production Coal Production Biofuels Large Hydro 25
- 26. Gas Drilling Is not in Top 5 Impacts of Water in Pennsylvania Acid Mine Drainage Raw Sewage Discharges Nitrogen & Phosphorus from Agriculture & Other lands Sediment From Construction Areas Spills, Leaks, Accidents From Underground Takes, Transportation of Materials 26
- 27. Four Remaining Environmental Issues Air Emissions Smog Methane Leakage Gas Migration Seismicity Associate With Injection of Wastewater in Deep Caverns 27
- 28. There are 6 Prof. Howarth, Cornell University, Most Publicized & Controversial Finding: “Coal is as Dirty as Gas on Carbon Emissions” No Claim that Coal is as Dirty as Gas on Mercury, Soot, Other Pollutants 28
- 29. 1. NETL – April 2011 2. Carnegie Mellon University – August 2011 3. Worldwatch Institute – August 2011 4. University of Maryland – October 2011 5. Cornell University – November 2011 All Papers are at www.johnhanger.blogsport.com 29
- 30. 100,000 Megawatts of U.S. Coal-Fired Power Plants Are 40 Years Old or Older EPA States Pollution – From Chiefly Old Coal-Fired Power Plants Cause 34,000 Premature Deaths Per Year Likely Coal Retirements In Next 10 Years Are 48,000 to 100,000 MW 30
- 31. 36% Coal 30% Gas 20% Nuclear 13% Renewables 1% Petroleum 31
- 32. 0% Coal 55% Gas 15% Nuclear 30% Renewables 32
- 33. THERE ARE NO PERFECT ENERGY CHOICES SAYING NO TO GAS MEANS SAYING YES TO MORE OIL & COAL FOR THE NEXT 20 YEARS GAS AND RENEWABLES WILL GROW RAPIDLY IN THE NEXT 20 YEARS 33
- 34. Ask John Your Question John’s email: jhanger@eckertseamans.com John’s blog: www.johnhanger.blogspot.com http://MarcellusDrilling.com 34
- 35. THANK YOU! For attending (1) To receive a free copy of the PowerPoint slides: Send an email to: hanger@marcellusdrilling.com (2) To watch this presentation again (and to read the most comprehensive Marcellus drilling news every weekday) Subscribe to Marcellus Drilling News: http://MarcellusDrilling.com/join-us Just $5.95 per month! 35