93
AN AMERICAN ENERGY REVOLUTION ENERGY IN CHARTS
AN AMERICAN ENERGY
REVOLUTIONENERGY IN CHARTS
HERE ARE THE FACTS…
Our nation’s economy continues to improve while America has become a world leader in energy production and in the reduction of greenhouse gas emissions, achievements long thought to be mutually exclusive. America’s 21st century energy revolution is the result of industry-led innovations and entrepreneurial spirit, not government
regulation and mandates. America’s brighter energy reality benefits consumers and our economy by providing abundant, affordable and reliable energy and a cleaner environment. To continue America’s positive energy, economic and environmental progress, we need to get our nation’s energy policy right today.
WHAT DOES AN ENERGY REVOLUTION LOOK LIKE
8 -13 Oil Production In U.S. (2000-2015) andU.S. Dry Natural Gas Production .............................. 9U.S., Russia and Saudi Arabia Petroleum and Natural Gas Production ........................................... 11Crude Oil Distillation Capacity ................................ 13
WHAT DOES THE AMERICAN ENERGY REVOLUTION MEAN
16 -29 Impacts of Policy Choices ....................................... 17Total Energy Consumption by Fuel ........................ 19Future Global Energy Demand ............................... 21Increase U.S. Domestic Energy Production ........... 23U.S. Field Production of Crude Oil and U.S. Dry Natural Gas Production ............................ 25U.S. Natural Gas Imports and U.S. Crude Oil Imports ................................................................................... 27Number of Refineries Declines but Capacity Expands .................................................................... 29
TABLE OF CONTENTS
WHAT ABOUT THE ENVIRONMENT
32 -39Electric Power Sector CO2 Reduction ..................... 33Lower CO2 Emissions From Electricity Generation.... 35Natural Gas Production and Methane Emissions From Production ...................................................... 37U.S. Energy Production as Percentage of Consumption ........................................................ 39
HOW TO STOP THE AMERICAN ENERGY REVOLUTION
42-47EISA Cellulosic Volumes Exceed Reality ................. 43Market Reality VS. RFS Mandates ........................... 45E85 Not a Solution to Blend Wall ............................ 47
HOW TO STOP THE AMERICAN ENERGY REVOLUTION
50-57Access to Most Onshore American Energy Resources are Off Limits ...................................................................... 51Unlocking America’s Offshore Energy Opportunity .... 53U.S. Oil and Natural Gas Production on Federal VS. Non-Federal Lands and Waters .............................. 55The Myth of Idle Leases ........................................... 57
Conclusion ............................................................... 65
ENERGIZING AMERICAENERGY IN CHARTS
WHAT DOES AN ENERGY REVOLUTION LOOK LIKEGlobal Energy Leadership.
Affordable, Domestically-Produced Energy.
Enhanced National Security.
WHAT DOES AN ENERGY REVOLUTION LOOK LIKE
As a result, our nation has become the world’s leading producer of oil and natural gas.
HYDRAULIC FRACTURING HAS UNLOCKED VAST AMOUNTS OF OIL AND NATURAL GAS
ENERGY IN CHARTS/ 9
U.S. DRY NATURAL GAS PRODUCTION Trillion Cubic Feet
OIL PRODUCTION IN U.S. (2000-2015) Million Barrels Per Day
Note: Some Conventional Formations are Also Hydraulically Fractured to Increase Production. Source: Today In Energy, March 15, 2016. EIA.
All Other Conventional Production
Coalbed Methane Production
Shale Gas Production
0
5
10
15
20
25
30(51% in 2015)from hydraulically fractured shale and other tight formations
(49% in 2015)from conventional formations
0
2
4
6
8
10
2000
2001
2002
2003
2004
2005
2006
2007
2008
2009
2010
2011
2012
2013
2014
2015
2007
2008
2009
2010
2011
2012
2013
2014
52% of production from shale gas in 2014
48% of production from conventionaland coalbed methane production in 2014
All Other Conventional Production
Coalbed Methane Production
Shale Gas Production
0
5
10
15
20
25
30(51% in 2015)from hydraulically fractured shale and other tight formations
(49% in 2015)from conventional formations
0
2
4
6
8
10
2000
2001
2002
2003
2004
2005
2006
2007
2008
2009
2010
2011
2012
2013
2014
2015
2007
2008
2009
2010
2011
2012
2013
2014
52% of production from shale gas in 2014
48% of production from conventionaland coalbed methane production in 2014
SHAL
E GA
S PR
ODU
CTIO
N
ALL
OTH
ER C
ONV
ENTI
ONA
L PR
ODU
CTIO
N
COALBED METHANE PRODUCTION
WHAT DOES AN ENERGY REVOLUTION LOOK LIKE
A dramatic change from just a few years ago. More American energy benefits our nation’s economy and consumers, and enhances our national security.
TODAY, THE U.S. IS THE WORLD’S LEADING PRODUCER OF OIL AND NATURAL GAS
ENERGY IN CHARTS/ 11
U.S., RUSSIA AND SAUDI ARABIA PETROLEUM AND NATURAL GAS PRODUCTION Quadrillion British Thermal Units Million Barrels Per Day of Oil Equivalent
TODAY, THE U.S. IS THE WORLD’S LEADING PRODUCER OF OIL AND NATURAL GAS
Source: EIA, http://www.eia.gov/todayinenergy/detail.cfm?id=20692.
PETR
OLE
UM P
RODU
CTIO
N
NATU
RAL
GAS
PRO
DUCT
ION
0
10
20
30
40
50
60
0
5
10
15
20
25
30
2008 2009 2010 2011 2012 2013 2014
United States
Russia
Saudi Arabia
United States
Russia
Saudi Arabia
WHAT DOES AN ENERGY REVOLUTION LOOK LIKE
America also leads the world in refining capacity, supplied by our world-leading refineries, which provides the American consumer and the world with cleaner more efficient fuels.
THE U.S. IS A WORLD LEADER IN CRUDE OIL REFINING
ENERGY IN CHARTS/ 13
CRUDE OIL DISTILLATION CAPACITY - 2012 Thousand Barrels Per Calender Day
Source: EIA, https://www.eia.gov/cfapps/ipdbproject/IEDIndex3.cfm?tid=5&pid=72&aid=7.
0
5,000
10,000
15,000
20,000
IranMexicoFranceUnited Kingdom
BrazilCanadaSaudi Arabia
ItalyGermanySouth Korea
IndiaJapanRussiaChinaUnited States
1,45
1.0
1,54
0.0
1,71
8.8
1,76
7.2
1,91
7.3
1,91
8.5
2,11
2.0
2,33
7.2
2,41
7.2
2,75
9.5
4,04
2.8
4,72
98.9
5,43
0.9
6,86
6.0
17,3
63.4
WHAT DOES THE AMERICAN ENERGY REVOLUTION MEAN
Energy Security.
Continued Environmental Progress.
Economic Growth and Opportunity.
WHAT DOES THE AMERICAN ENERGY REVOLUTION MEAN
The energy policy decisions our country makes today will determine America’s energy future for generations to come.
THE RIGHT ENERGY POLICY CHOICES COULD MEAN LONG-TERM U.S. ECONOMIC GROWTH, AND SUSTAINED GLOBAL ENERGY LEADERSHIP
ENERGY IN CHARTS/ 17
INCREASE DEVELOPMENT
GOVERNMENT REVENUE GOVERNMENT
REVENUE
JOBS JOBS
ENERGY PRODUCTION
ENERGY PRODUCTION
RAISE TAXES
MORE OR LESS?
1 MILLION new jobs 800,000 jobs
$111 BILLION $260 BILLION
2.8 MILLION barrels of oil and natural gas per day
2.6 MILLION barrels of oil and natural gas per day
Source: Wood Mackenzie. A Comparison of US Oil and Natural Gas Policies.
IMPACTS OF POLICY CHOICES Projected 2025 numbers
WHAT DOES THE AMERICAN ENERGY REVOLUTION MEAN
Today, oil and natural gas provide the bulk of America’s energy; and government and private analysis agree they will continue to do so for decades come.
DEMAND FOR ENERGY FROM ALL SOURCES WILL CONTINUE TO GROW
ENERGY IN CHARTS/ 19Source: AEO 2016 Early Release, Total Energy Supply, Disposition, and Price Summary, May 2014.
2015
7.7% NuclearPower
35.02%
Oil
33.03% Natural Gas
10.03% Coal
14.22% Renewable
Energy
2040
TOTAL ENERGY CONSUMPTION BY FUEL 2015-2040
8.62% NuclearPower
37.72% Oil
16% Coal
8.39% Renewable
Energy
29.27% Natural Gas
Actual Projected
WHAT DOES THE AMERICAN ENERGY REVOLUTION MEAN
What is true for America is also true for the world, demand for energy from all sources will continue to grow.
THE WORLD COULD REQUIRE 56 PERCENT MORE ENERGY IN 2040 THAN IN 2010
ENERGY IN CHARTS/ 21Source: EIA, International Energy Outlook 2015.
FUTURE GLOBAL ENERGY DEMAND Quadrillion BTU
0
200
400
600
800
1000
Nuclear
Renewables
Natural gas
Coal
v
25.1%
21.2%
9.5%5.7%
38.4%
28.1%
22.3%
10.7%
5.2%
33.6%
26.8%
23.3%
14.5%
7.0%
28.4%100
02010 2040
200
300
400
500
600
700
800
900
1990
1990
2010
2040
NuclearRenewablesNatural gasCoalOil
WHAT DOES THE AMERICAN ENERGY REVOLUTION MEAN
Increased U.S. domestic energy production helps to ensure that future generations enjoy an affordable, abundant and reliable supply of energy for years to come.
U.S. OIL PRODUCTION HAS INCREASED MORE THAN 88 PERCENT SINCE 2006
ENERGY IN CHARTS/ 23
9.4 MILLION
HELPS TO ENSURE THAT FUTURE GENERATIONS
ENJOY RELIABLE AND ABUNDANT ENERGY
INCREASED U.S. DOMESTIC ENERGY PRODUCTION20
06
Barr
els P
er D
ay
Barr
els P
er D
ay20
15
5.0 MILLION
Source: EIA.
>88% GROWTH
WHAT DOES THE AMERICAN ENERGY REVOLUTION MEAN
Today, the U.S. is more energy self-sufficient and has transitioned from an era of energy scarcity and dependence into a global energy leader.
THE U.S. ENERGY REVOLUTION IS THANKS IN LARGE PART TO INDUSTRY INNOVATIONS
ENERGY IN CHARTS/ 25Source: EIA , AEO2006 - Table 14; January 2016 Monthly Energy Review.
ACTU
AL
2006
FO
RECA
ST
U.S. DRY NATURAL GAS PRODUCTION Trillion Cubic Feet
U.S. FIELD PRODUCTION OF CRUDE OIL Million Barrels Per Day
2006
2007
2008
2009
2010
2011
2012
2013
2014
2015
2006
2007
2008
2009
2010
2011
2012
2013
2014
2015
3k
4k
5k
6k
7k
8k
9k
10k
15
20
25
30
2006
2007
2008
2009
2010
2011
2012
2013
2014
2015
2006
2007
2008
2009
2010
2011
2012
2013
2014
2015
3k
4k
5k
6k
7k
8k
9k
10k
15
20
25
30
America’s energy progress can be measured by the actual amount of energy we produce today versus the forecasts from a decade ago.
PROGRESS
PROGRESS
WHAT DOES THE AMERICAN ENERGY REVOLUTION MEAN
The U.S. energy revolution has increased the supply of domestically produced energy and lessened the need to import energy resources.
INCREASED DOMESTIC OIL AND NATURAL GAS PRODUCTION MEANS A MORE ENERGY SECURE NATION
ENERGY IN CHARTS/ 27Source: EIA, AEO2006 - Table 13; EIA, AEO2006 - Table 11; January 2016 Monthly Energy Review.
U.S. CRUDE OIL IMPORTS Million Barrels Per Day
U.S. NATURAL GAS IMPORTS Trillion Cubic Feet
2006
2007
2008
2009
2010
2011
2012
2013
2014
2015
2006
2007
2008
2009
2010
2011
2012
2013
2014
2015
5
6
7
8
9
10
11
0
0.5
1
1.5
2
2.5
3
3.5
2006
2007
2008
2009
2010
2011
2012
2013
2014
2015
2006
2007
2008
2009
2010
2011
2012
2013
2014
2015
5
6
7
8
9
10
11
0
0.5
1
1.5
2
2.5
3
3.5
America’s energy progress can be measured by the actual amount of energy we import today versus the forecasts from a decade ago.
PROGRESS
PROGRESS
ACTU
AL
2006
FO
RECA
ST
WHAT DOES THE AMERICAN ENERGY REVOLUTION MEAN
Refining capacity is crucial to our nation’s economy and security. Our military depends on American refineries to provide secure, available fuels wherever and whenever they are needed. American refineries also supply the nation with clean and affordable fuels that are required to manufacture and produce hundreds of thousands of consumer products.
WORLD-LEADING INNOVATION CONTINUES TO INCREASE THE EFFICIENCY AND CAPACITY OF AMERICA’S REFINERIES
ENERGY IN CHARTS/ 29*Operable as of January 1st of each year.
Source: EIA, Petroleum Supply Annual and EIA, Annual Energy Review. http://www.eia.gov/petroleum/refinerycapacity/.
NUMBER OF REFINERIES DECLINES BUT CAPACITY EXPANDS Thousands of Barrels Per Day
1985 1986 1987 1988 1989 1990 1991 1992 1993 1994 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 20150
2,000
4,000
6,000
8,000
10,000
12,000
14,000
16,000
18,000
20,000
0
50
100
150
200
250
OPE
RABL
E* C
APAC
ITY
NUM
BER
OF
REFI
NERI
ES
WHAT ABOUT THE ENVIRONMENTReduced Emissions.
Increased Production.
Increased Economic Growth.
WHAT ABOUT THE ENVIRONMENT
A fundamental shift to natural gas continues to reduce our nation’s CO2 emissions from electricity generation from 2006 – 2014.
MORE U.S. ENERGY, LOWER U.S. EMISSIONS
ENERGY IN CHARTS/ 33Source: EIA.
ELECTRIC POWER SECTOR CO2 REDUCTION Million Metric Tons of CO2
EMIS
SIO
NS R
EDUC
TIO
N IN
FO
SSIL
GEN
ERAT
ION
M
IX F
ROM
SH
IFT
TOW
ARD
NATU
RAL
GAS
EMIS
SIO
NS R
EDUC
TIO
N FR
OM
INCR
EASE
IN
NON-
CARB
ON
GENE
RATI
ON
33
62 61
107126
147
266
223 229
28
-7
27
95
70
135117
155169
2006 2007 2008 2009 2010 2011 2012 2013 2014-50
0
50
100
150
200
250
300
WHAT ABOUT THE ENVIRONMENT
America’s energy revolution has not only increased production and economic growth, but also helped decrease greenhouse gas emissions. Today, the U.S. is leading the world in energy production while it simultaneously leads the world in reductions of greenhouse gas emissions, an achievement that stands alone on the world stage.
LOWER CO2 EMISSIONS FROM ELECTRICITY GENERATION
ENERGY IN CHARTS/ 35Source: EIA, AEO2006 - Table 18; 2015, Feb 2016 STEO for 2015.
U.S. LOWER CO2 EMISSIONS Emissions From Energy
2006 2007 2008 2009 2010 2011 2012 2013 2014 2015
4,000
4,500
5,000
5,500
6,000
6,500
7,000
PROGRESS
ACTU
AL
2006
FO
RECA
ST
WHAT ABOUT THE ENVIRONMENT
Our nation’s abundant supply of domestically produced natural gas, driven by innovations in hydraulic fracturing and horizontal drilling, continues to drive down greenhouse gas emissions for the nation.
CLEANER BURNING NATURAL GAS LEADS TO LOWER EMISSIONS
ENERGY IN CHARTS/ 37Source: EPA, Emissions and Production Data.
METHANE EMISSIONS FALLING WHILE PRODUCTION RISES U.S. Natural Gas 2005 to 2014
Perc
ent
Chan
ge
42.5%
47.3%
43.1%
-0.68%
Dry Production Pipeline & Distribution Natural Consumed by Electric Power Sector Methane Emissions from Natural Gas Systems
-10
0
10
20
30
40
50
WHAT ABOUT THE ENVIRONMENT
The vast majority of the energy we consume is produced right here in North America by the world’s most efficient and advanced refineries.
THE U.S. ENERGY REVOLUTION HAS MADE OUR NATION MORE ENERGY SECURE
ENERGY IN CHARTS/ 39* Data through November 2015. Source: EIA , February 2016. Monthly Energy Review, Table 1.1.
0%
65%
70%
75%
80%
85%
90%
95%
100%
2015*2014201320122011201020092008200720062005
U.S. ENERGY PRODUCTION AS PERCENTAGE OF CONSUMPTION
HOW TO STOP THE AMERICAN ENERGY REVOLUTION
Substitute Government Mandates
for Economic and Market Realities.
HOW TO STOP THE AMERICAN ENERGY REVOLUTION
The RFS should be repealed or significantly reformed. Its artificial mandates are based on consumption forecasts that are much different from market reality.
THE RENEWABLE FUEL STANDARD IS A FAILED POLICY THAT ENDANGERS CONSUMERS
ENERGY IN CHARTS/ 43Source: Energy Independence and Security Act of 2007. EPA EMTS data and 2016 Final Rule. https://www.epa.gov/renewable-fuel-standard-program.*Applicable volume of cellulosic biofuel (in billions of gallons); ** Cellulosic RINs (billions).
EISA CELLULOSIC VOLUMES EXCEED REALITY Billions of Gallons
0.0
0.5
1.0
1.5
2.0
2.5
3.0
3.5
4.0
4.5
5.0
2016201520142013201220112010
EISA
STA
NDAR
D*
REAL
ITY*
*
HOW TO STOP THE AMERICAN ENERGY REVOLUTION
The Renewable Fuel Standard’s disconnect with market reality could send our nation into the blend wall, which could cost consumers millions of dollars in unexpected engine repair costs.
THE RENEWABLE FUEL STANDARD IS A DANGEROUS RELIC OF OUR NATION’S ENERGY PAST
ENERGY IN CHARTS/ 45Source: EIA and EISA.
MARKET REALITY VS. RFS MANDATES Billions of Gallons
100
110
120
130
140
150
160
170
180
AEO 2007
Consumption level needed to avoid blend wall
AEO 2015
March STEO (EIA)
2022202120202019201820172016201520142013201220112010
Actual Consumption
HOW TO STOP THE AMERICAN ENERGY REVOLUTION
Biofuels have an important role to play in meeting the fuel needs of America’s consumers. Our nation’s world-class refiners will continue to use biofuels due to their valuable blending properties with or without the RFS mandate. Unfortunately the continued implementation of biofuel mandates untethered from market reality or consumer demand poses a significant potential risk to consumers through engine repair costs.
E85 NOT A SOLUTION TO THE BLEND WALL
ENERGY IN CHARTS/ 47Source: U.S. Department of Energy.
E85 SOLD IN 2015 IS LESS THAN ONE PERCENT
OF ANNUAL GASOLINE DEMAND.
ACCORDING TO THE EIA THE ANNUAL AMOUNT OF
LESS THAN 1 PERCENT OF
GASOLINE DEMAND
E85 NOT A SOLUTION TO BLEND WALL Annual Gasoline Demand
HOW TO STOP THE AMERICAN ENERGY REVOLUTION
Keep Most Federal Land Off Limits to Safe
and Responsible Energy Production.
HOW TO STOP THE AMERICAN ENERGY REVOLUTION
The U.S. energy revolution is unnecessarily constrained by limited access to energy resources on the vast majority of land under federal jurisdiction.
AMERICAN ONSHORE ENERGY RESOURCES OFF LIMITS
ENERGY IN CHARTS/ 51
TODAY
OF BLM’S MANAGED LAND IS CURRENTLY LEASED FOR OIL AND NATURAL GAS DEVELOPMENT.
LESS THAN 15 PERCENT85%
Unleased15%
Leased
Source: Bureau of Land Management.
MOST ONSHORE AMERICAN ENERGY RESOURCES ARE OFF LIMITS
HOW TO STOP THE AMERICAN ENERGY REVOLUTION
Approximately 87 percent of our nation’s offshore acreage is off-limits to energy production. If production on federal lands had grown at the same rate as overall U.S. production, from 2009 through 2014, total royalties would have been 22 percent higher, with an additional $11 billion in royalties collected by the federal government. That glaring difference is not just bad energy policy; it is also bad fiscal policy.
ACCESS TO OFFSHORE RESOURCES IS VITALTO AMERICA’S ENERGY FUTURE
ENERGY IN CHARTS/ 53Source: The Bureau of Ocean Exploration and Management (BOEM) - http://www.boem.gov.
Off LimitsPresidential MoratoriumUnder Consideration for Seismic Survey Open
Pacific OCS10.2 Bbl16.1 Tcf
Alaska OCS26.6 Bbl131.5 Tcf
Mid-Atlantic
South Atlantic
Eastern Gulf5.1 Bbl16.1 Tcf
Central Gulf30.9 Bbl133.9 Tcf
Western Gulf 12.4 Bbl69.5 Tcf
Atlantic OCS4.7 Bbl37.5 Tcf
Gulf of Mexico OCS48.4 Bbl219.5 Tcf
Chukchi Sea15.4 Bbl76.8 Tcf
Beaufort Sea8.2 Bbl27.6 Tcf
Cook Inlet1.0 Bbl1.2 Tcf
UNLOCKING AMERICA’S OFFSHORE ENERGY OPPORTUNITY (Billion Barrels — Bbl and Trillion Cubic Feet — Tcf)
87% OF FEDERAL OFFSHORE ACREAGE IS OFF LIMITS TO DEVELOPMENT
HOW TO STOP THE AMERICAN ENERGY REVOLUTION
In the private sector, on state-controlled and private property, crude oil production increased by 88 percent, and production grew 43 percent for natural gas between 2009 and 2014. Conversely, on federally controlled land crude oil production has remained flat and natural gas production has declined by 35 percent during the same time period. Unnecessary restrictions on energy resource development on most federal land stifles our nation’s ability to the produce the energy we need and hinders our ability to maintain American global energy leadership.
IN ORDER TO REMAIN A GLOBAL ENERGY SUPERPOWER, THE U.S. NEEDS A TRUE ALL OF THE ABOVE APPROACH TO ENERGY POLICY
ENERGY IN CHARTS/ 55
U.S. OIL AND NATURAL GAS PRODUCTION ON FEDERAL VS. NON-FEDERAL LANDS AND WATERS Millions Barrels Per Day (Crude Oil) Trillion Cubic Feet Per Day (Natural Gas)
Source: CRS, “U.S. Crude Oil and Natural Gas Production in Federal and Non-Federal Areas,” April 10, 2014 and February 28, 2013.
0
1
2
3
4
5
2007 2008 2008 2010 2011 2012 2013 2014
0
5
10
15
20
Crude Oil
Natural Gas
Crude Oil
Natural Gas
NON-FEDERAL
FEDERAL
NON-
FEDE
RAL
FEDE
RAL
HOW TO STOP THE AMERICAN ENERGY REVOLUTION
Leases are widely misunderstood. There is no guarantee that a leased area actually has recoverable oil or natural gas resources. In fact, most do not! Additionally, leases that are labeled “idle,” or non-producing, are often under geological evaluation or in development.
HOW MANY LEASES ARE REQUIRED TO ENSURE A 90% CHANCE OF DISCOVERY?
ENERGY IN CHARTS/ 57
11 DRILLING PROSPECTS
25 PROSPECTS
1 DISCOVERY
100 IDEAS TOTAL LEASES WILL LEAD TO
50 LEADS LEASES WITH POTENTIAL FOR OIL AND GAS
THE MYTH OF IDLE LEASES
Source: API, 2008.
C O N C L U S I O N
Energy is fundamental to our society. The policies that influence it should be based on facts with a focus on what’s best for consumers and our economy. We have a once-in-a-generation opportunity to show the world how energy abundance can be used as a positive force.
Future generations are looking to us to get our nation’s energy policy right. They are counting on us to leave them a country that is second-to-none in energy production, security and economic prosperity.
ENERGY RESOURCESENERGY IN CHARTS
ENERGY IN CHARTS/ 69
INDUSTRY LOGISTICS Production, Consumption and Storage.
INDUSTRY LOGISTICS
Innovations in the decades-old technique of hydraulic fracturing combined with horizontal drilling have unlocked vast amounts of oil and natural gas.
HYDRAULIC FRACTURING HAS UNLOCKED VAST AMOUNTS OF OIL AND NATURAL GAS.
ENERGY IN CHARTS/ 71Source: EIA, http://www.api.org/~/media/Files/Oil-and-Natural-Gas/Hydraulic-Fracturing-primer/Hydraulic-Fracturing-Primer-2015-highres.pdf
U.S. TIGHT OIL PRODUCTION Million Barrels Per Day
U.S. DRY SHALE NATURAL GAS PRODUCTION Billion Cubic Feet Per Day
Tight Dry Natural Gas Productionbillion cubic feet per day
Shale And Tight Oil Productionmillion barrels per day
0
5
10
15
20
25
30
35
40
45
2000
2001
20
02
2003
2004
20
05
2006
2007
20
08
2009
2010
20
11
2012
2013
20
14
2015
Marcellus (PA,WV,OH & NY) Haynesville (LA & TX) Eagle Ford (TX) Fayetteville (AR) Barnett (TX) Woodford (OK) Bakken (ND) Antrim (MI, IN, & OH) Utica (OH, PA & WV) Rest of U.S. 'shale'
0
0.5
1
1.5
2
2.5
3
3.5
4
4.5
5
Eagle Ford (TX) Bakken (MT & ND)
Bonespring (TX & NM Permian) Wolfcamp (TX & NM Permian) Delaware (TX & NM Permian) Yeso-Glorieta (TX & NM Permian) Niobrara-Codell (CO, WY) Haynesville Utica (OH, PA & WV) Marcellus (PA,WV,OH & NY) Woodford (OK) Granite Wash (OK & TX) Austin Chalk (LA & TX) Monterey (CA)
Spraberry (TX & NM Permian)
2000
2001
20
02
2003
20
04
2005
2006
20
07
2008
20
09
2010
2011
20
12
2013
20
14
2015
AMERICAN ENERGY LEADERSHIP
INDUSTRY LOGISTICS
Increased domestic energy production helps to strengthen our nation’s economy.
ENERGY IN CHARTS/ 73Source: U.S. Energy Information Administration. https://www.eia.gov/dnav/ng/hist/res_epg0_r5302_nus_bcfa.htm
U.S. NATURAL GAS PRODUCTION Billion Cubic Feet
0
4,000
8,000
12,000
16,000
20142013201220112010200920082007
INDUSTRY LOGISTICS
Hydraulic fracturing, combined with horizontal drilling, has powered the U.S. energy revolution. Without this technology, the U.S. would not be the world energy leader that it is today.
HYDRAULIC FRACTURING AND HORIZONTAL DRILLING ARE VITAL TO U.S. ENERGY PRODUCTION
ENERGY IN CHARTS/ 75
OIL PRODUCTION FROM HYDRAULICALLY FRACTURED WELLS IN THE UNITED STATES (2000-2015) Million Barrels Per Day
OtherLower 48
Lower 48Tight Formations
Gulf of Mexicoand Alaska
0
1
2
3
4
5
2015201420132012201120102009200820072006200520042003200220012000
Source: CIA, https://www.cia.gov/redirects/ciaredirect.html?id=25372
AMERICAN ENERGY SECURITY
INDUSTRY LOGISTICS
Increases in proved reserves allow the U.S. to remain a world energy leader and add to our nation’s future energy security.
ENERGY IN CHARTS/ 77Source: U.S. Energy Information Administration. https://www.eia.gov/dnav/ng/hist/res_epg0_r5301_nus_bcfa.htm
U.S. SHALE PROVED RESERVES Billion Cubic Feet
0
62,500
125,000
187,500
250,000
20142013201220112010200920082007
CONSUMPTION VS. PRODUCTION
INDUSTRY LOGISTICS
America’s energy revolution is closing the gap between energy consumption and production.
ENERGY IN CHARTS/ 79Source: EIA, http://www.eia.gov/totalenergy/data/monthly/dataunits.cfm
(Qua
drill
ion
Btu)
PRIMARY ENERGY OVERVIEW Annual Totals, 1970-2014
0
20
40
60
80
100
120
1970 1975 1980 1985 1990 1995 2000 2005 2010
Energy Production
Energy Consumption
WHERE NATURAL GAS UNDERGROUND STORAGE FIELDS ARE LOCATED
ENERGY IN CHARTS/ 81
TYPE OF STORAGEDepleted Fields
Salt Formations
Depleted Aquifers
Less than 14.5
14.5 to 37.8
37.8 to 73
73 to 122
Greater than 122
TOTAL FIELD CAPACITY(Billion Cubic Feet)
Source: EIA Energy Mapping System; EIA-191 Monthly Underground Gas Storage Report, 2015. https://www.eia.gov/cfapps/ngqs/ngqs.cfm?f_report=RP7Note: The map includes both active and inactive fields.
WHERE NATURAL GAS UNDERGROUND STORAGE FIELDS ARE LOCATED Type of Storage and Total Field Capacity, 2015
CHANGES IN GASOLINE AND DIESEL PRICES MIRROR CHANGES IN CRUDE OIL PRICES
INDUSTRY LOGISTICS
Price changes are determined in the global crude oil market by the worldwide demand for, and supply of, crude oil. Weak economic conditions in the U.S. and around the world in 2008 and into 2009 led to less demand, which helped push prices down.
ENERGY IN CHARTS/ 83Source: NYMEX (WTI crude oil) and AAA (gasoline and diesel).
GASOLINE, DIESEL AND CRUDE OIL PRICES October 14, 2015
Diesel (AAA) $2.53 Gasoline (AAA) $2.30 WTI Crude Oil (NYMEX) $1.11
Oct-08 Oct-09 Oct-10 Oct-11 Oct-12 Oct-13 Oct-14 Oct-15$0
$1
$2
$3
$4
$5
INDUSTRY LOGISTICS
Crude oil prices are set globally through the dailyinteractions of thousands of buyers and sellers in bothphysical and futures markets, and reflect participants’knowledge and expectations of demand and supply.In addition to economic growth and geopolitical risks,other factors, including weather events, inventories,exchange rates, investments, spare capacity, OPECproduction decisions, and non-OPEC supply growth all figure into the price of crude oil.
OIL PRICES RELATE TO MANY UNCERTAIN FACTORS
ENERGY IN CHARTS/ 85
WEATHER
INVENTORIES
SPECULATION, HEDGING, INVESTMENT
GLOBAL ECONOMIC GROWTH
NON-OPEC SUPPLY GROWTH
OPEC PRODUCTION DECISIONS
SPARE PRODUCTION CAPACITY
GEOPOLITICAL RISKS
GLOBALOIL PRICES
Source: EIA.
INDUSTRY LOGISTICS
The strength of the U.S. dollar against other currencies around the world has widened compared to the Yen and the Euro.
THE VALUE OF THE DOLLAR MAKES A DIFFERENCE
ENERGY IN CHARTS/ 87Source: Federal Reserve Bank of St. Louis, Energy Information Administration.
PERCENT CHANGE OF WEST TEXAS INTERMEDIATE CRUDE (WTI) IN DOLLARS, EUROS, AND YEN
0%
20%
40%
60%
80%
100%
120%
Jan-14 Apr-14 Jul-14 Oct-14 Jan-15 Apr-15 Jul-15 Oct-15 Jan-16
Japanese Yen Euro United States Dollar
ENERGY IN CHARTS/ 89
ENVIRONMENT AND EMISSIONS
THE OIL AND NATURAL GAS INDUSTRY HAS INVESTED $90 BILLION IN ZERO- AND LOW-CARBON EMITTING TECHNOLOGIES FROM 2000 THROUGH 2014.
ENVIRONMENT AND EMISSIONS
That’s almost as much as the federal government’s investment of $110.3 billion.
ENERGY IN CHARTS/ 91All expenditures are estimated except for remediation and spills. In 2010, Remediation and spills are unusually high because of an outlier event. Source: API Report: http://www.api.org/~/media/Files/Publications/Environmental-Expenditures-2015.pdf
U.S. ENVIRONMENTAL EXPENDITURES SINCE 2005 (Includes Expenditures on Remediation and Spills)
Billi
ons o
f dol
lars
0
5
10
15
20
25
35
30
R&D and Corporate Programs Marketing Refining Transportation Exploration and Production
R&D and Corporate Programs
Marketing:
Re�ning:
Transportation:
Exploration and production:
2014201320122011201020092008200720062005
LETTING MARKETS WORK
ENVIRONMENT AND EMISSIONS
Natural gas is a leading energy source in many states with below average emissions. Yet , EPA seeks to downplay natural gas use. This is what happens when ideology and politics trump science.
ENERGY IN CHARTS/ 93Source: U.S. Energy Information Administration, State Energy Data System.
STATES WITH BELOW AVERAGE EMISSION RATES Primary Fuel Sources
CT
ID ME
RI
CA MA
OR
NJ
NV
NH
NY
MSFLDE
VA
AL AZ GA
LA
OK
WA
TX
HYDR
OCO
ALNA
TURA
L GA
SNU
CLEA
R CT
NH
NJ
VA
CA
DE
FL
LA
MA
MS
NV
NY
OK
RI
TX
AL
AZ
GA
ID
ME
OR
WA
36.47% 28.18% 37.58% 28.79%
53.42% 74.14% 61.42% 61.97%42.79% 65.27%
41.28%66.61% 39.99%
29.43% 22.01% 28.23%
44.68%
9.91% 29.96% 15.10% 4.01%
97.81%
Nuclear
Wind Other
Hydro Coal
Natural Gas
LEADING INVESTMENT LEADING INNOVATION
ENERGY IN CHARTS/ 95Source: T2 & Associates, “Key Investments in Greenhouse Gas Mitigation Technologies from 2000 Through 2014 by Oil and Gas Firms, Other Industry and the Federal Government,” September 2015.
SPENDING TO REDUCE GHG EMISSIONS Leading Private Investors 2000-2014
B
illio
ns o
f dol
lars
$0
$20
$40
$60
$80
$100
$90.
0
Oil
and
Natu
ral G
as In
dust
ry
$13.
0
Agric
ultu
re
$38.
2 Au
tom
obile
$37.
1 El
ectr
ic U
tility
1220 L Street, NW Washington, DC 20005
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