America’s Energy Future at a Crossroads

BizWest Energy SummitLoveland COJuly 10, 2014

Christopher GuithSenior Vice President - Policy

Institute for 21st Century EnergyU.S. Chamber of Commerce

U. S. C h a m b e r o f C o m m e r c e

English Literature Does Matter

It was the best of times, it was the worst of times, it was the age of wisdom, it was the age of foolishness, it was the epoch of belief, it was the epoch of incredulity, it was the season of Light, it was the season of Darkness, it was the spring of hope, it was the winter of despair, we had everything before us, we had nothing before us, we were all going direct to Heaven, we were all going direct the other way…

-A Tale of Two Cities (1859)

Charles Dickens

U. S. C h a m b e r o f C o m m e r c e

The New Energy RealityEnergy Security is central to our national and economic securityDemand to increase 53% by 2035 90% in non-OECD countriesElectricity demand to increase 76%1.6 billion people without electricity$38 trillion of new investment by 2035 to meet rising demand 90% world’s oil reserves owned by national oil companies

U. S. C h a m b e r o f C o m m e r c e

We Possess Tremendous Domestic Energy Resources

Technically Recoverable Resources 120 years of Nat Gas 206 Years of Oil 464 years of Coal

In-place Resources 586 years of Nat Gas 536 years of oil 9,844 years of coal

Institute for Energy Resources Analysis of U.S. Government Data

U. S. C h a m b e r o f C o m m e r c e

Rhetoric vs. Reality in Federal Permitting

Western Values Project, BLM Data

Permits & New Wells on Federal Lands

U. S. C h a m b e r o f C o m m e r c e

  2012 2020 2035

Jobs Supported 78k 121k 175k

New Government Revenue (billions) $1.4 $2.4 $3.7

Economic Growth (billions) $11.6 $17.6 $26.7

Shale Fueling Colorado

$63 Billion in Gov Revs 2012-2035

IHS, America’s New Energy Future. October 2012

U. S. C h a m b e r o f C o m m e r c e

Industrial Gas Consumption Returns

U. S. C h a m b e r o f C o m m e r c e

Shale Revolution Spawns Manufacturing Renaisance

IHS, ANEF 2013

U. S. C h a m b e r o f C o m m e r c e

It’s All About Price Differential

U. S. C h a m b e r o f C o m m e r c e

America’s New Energy Future

U. S. C h a m b e r o f C o m m e r c e

America’s New Energy Future

U. S. C h a m b e r o f C o m m e r c e

America’s New Energy Future

U. S. C h a m b e r o f C o m m e r c e

Oil & Gas is THE Job Driver

-10

0

10

20

30

40

Percentage Change in Employment from 2007: O&G v All Non-Farm

O&G All Non-Farm

+38.6%

-2.6%Source: BLS

U. S. C h a m b e r o f C o m m e r c e

U.S. Oil Supply

Source: BENTEK Crude Awakening/EIA

U. S. C h a m b e r o f C o m m e r c e

Cracking the Code: Increased Efficiency

RBN Energy LLC, 9/24/13

U. S. C h a m b e r o f C o m m e r c e

Exports Increasingly Important to PetChem

IHS, ANEF 2013

U. S. C h a m b e r o f C o m m e r c e

Midstream Expansion in Overdrive

Pipeline Projects: Jan 2010-Jan 2013 (MMcf/d)

FERC, Major Pipeline Projects on the Horizon

U. S. C h a m b e r o f C o m m e r c e

Rail, Truck, & Barge Shipments Double

EIA, Refinery Capacity Report. 6-25-14

2009 2010 2011 2012 20130

100000

200000

300000

400000

500000

600000

700000

TruckRailBarge

4.2%4.6%

7.1%

10.1%

Crude Refinery Receipt Shipments

Thousand Barrels Per Day

4.3%

Percentage of Total

U. S. C h a m b e r o f C o m m e r c e

America’s New Energy Future

Loss

Loss

Loss

U. S. C h a m b e r o f C o m m e r c e

A Bright Future is NOT a Given

Food & Water Watch: Mapping the Movement

State Measures (Passed)

State Measures (Pending)

Local Measures (Passed)

Local Measures (Pending)

Shale Plays

423 Actions Across 21 States

U. S. C h a m b e r o f C o m m e r c e

Rulemakings On The Runway!

U. S. C h a m b e r o f C o m m e r c e

Coal & Gas Prices

U. S. C h a m b e r o f C o m m e r c e

Expected Coal Plant Closures

• >50 GW prematurely retired by 2020

• 15%-20% of entire coal fleet

• ~10% of all US generation

U. S. C h a m b e r o f C o m m e r c eHeavy Concentration on Retirements

U. S. C h a m b e r o f C o m m e r c e

Time to TAKE ACTION

ENERGYXXI.ORG@Energy21