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U.S. In Energy Boom: Key Facts Gas Production in 2011 Set Record
U.S. World’s Number 1 Gas Producer
U.S. Oil Production Increasing For First Time in 35 Years
U.S. Oil Imports Decline From 60% in 2005 to 47% in 2010
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Total Energy Provided By Fuels Oil 34%
Natural Gas 26%
Coal 19%
Renewables 11%
Nuclear 10%
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Power Generation Trends
Renewable Energy of all Types (Ethanol, Hydro, Biomass) Provided About 11% of All U.S. Energy in 2011
Coal Gas Nuclear Wind Solar2000 52% 16% 20% 0 02011 42% 26% 20% 3% 0.2%2012 38% 29% 20% 4% 0.4%
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U.S. In Energy Boom Wind Has Doubled Since 2008:
25,000 MW to 50,000 MW Iowa - 20% of Electricity From Wind Texas – 7% of Electricity From Wind Wind Power Costs Cut 65% Since
2003 Wind Generation Now Costs 5 Cents
Per Kwh
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U.S. In Energy Boom 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
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Energy Efficiency Also Booming 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
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Gas Production In Pennsylvania First Oil Well Drilled in Pennsylvania
in 1857 Approximately 400,000 Oil & Gas
Wells Drilled in Pennsylvania First Exploratory Shale Gas Wells
Drilled in 2005 200 Shale Gas Wells Drilled by 2008
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Strategic Objective Should Be:
Produce the Gas and Protect the Environment
Shale Gas Development
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Gas Production In Pennsylvania Prior to Shale Gas Wells,
Pennsylvania Produced Typically Less than 200 Billion Cubic Feet of Gas/Year or Less than 1% of U.S. Gas Production
Pennsylvania has Issued More than 9,000 Shale Gas Well Permits
More than 5,000 Shale Gas Wells Now Drilled
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Gas Production In Pennsylvania Pennsylvania Production in 2011
Greater than 1 Trillion Cubic Feet or About 6% of U.S. Production
Gas Production in Pennsylvania Likely to Reach 2 Trillion Cubic Feet Per Year
Pennsylvania Will Provide About 10% of U.S. Natural Gas Production
USA is the Number 1 Gas Producer in the World
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Protecting the Environment – Issues for the Public1. 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 emergencies responses
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Protecting the Environment – Issues for the Public3. Truck Traffic Impact & Safety
- Congestion- Road damage- Unsafe trucks
4. Gas Migration
5. Public Lands: State Forests & Parks
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Protecting the Environment – Issues for the Public6. Staffing of Oil and Gas Program
- Number of employees- Location
7. Air Impacts- Nox- HAPs
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Protecting the Environment – Issues for the Public
8. Seismic Impacts from Deep Well Injections
- Arkansas- Ohio
9. Disclosure of Chemicals
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Regulatory Response: Pennsylvania Case Study Review & Strengthen All Rules
4 Regulatory Packages Enacted1. Water Withdrawal Plan: August 20082. Waste Water Disposal/TDS Rule: August 20103. New, Strong Drilling Standards: January 20114. 150 Feet Mandatory Buffer from All Development for
22,000 Miles of High Quality Steams: November 2010
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Regulatory Response 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
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Regulatory Response 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
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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
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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
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Protecting the EnvironmentFour Remaining Main Environmental Issues
Air Emissions Smog
Methane Leakage
Gas Migration
Seismicity Associate With Injection of Wastewater in Deep Caverns
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Coal v. Gas Carbon Lifecycle Studies 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
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5 Studies Contradicting Howarth Paper1. 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
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Natural Gas Good For Economy
Shale Gas Production Boom Shale Gas Less than 1% of U.S. Gas
Supply in 2000 Shale Gas Production at 2 Bcf/day in
2007 Shale Gas Production at 16 Bcf/day
in February 2011 Today Shale Gas is 30% of U.S.
Natural Gas Production
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Natural Gas Good For Economy1. Shale Gas Production Has Lowered
Natural Gas Prices Significantly$13 for Thousand Cubic Feet July 2008$4.50 for Thousand Cubic Feet July 2011
2. Shale Gas Has Saved Residential Gas Heating Customers About $500/year51% of Homes Use Natural Gas as a Heating
Fuel
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Natural Gas Good For Economy3. Shale Gas Has Saved Residential
Electricity Customers About $500/year
25% of U.S. Electricity Supply Comes from Natural Gas Plants
Natural Gas Plants Often Set Wholesale Price of Electricity
4. Shale Gas Has Prevented a Broad Energy Shock in 2011 & 2012 to U.S. Economy
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Getting Off Foreign Oil5. U.S. Exports About $400 Billion/year for
Foreign Oil
60% Oil Imports in 2005 45% Oil Imports in 2011
Natural Gas is Cheaper and Cleaner Than oil But Major Market Failure Blocks Transition from Oil to Gas in Transportation
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Getting Off Foreign Oil Keys to Getting Off Foreign Oil By No
Later Than 2025 Natural Gas Vehicles Electric Vehicles U.S. Oil Production Biofuels Efficiency
Goal Should be to Decrease Oil Imports 3 Percentage Points Per Year for Next 15 Years
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THERE ARE NO PERFECT ENERGY CHOICES
SAYING NO TO GAS MEANS SAYING YES TO OIL & COAL
GAS AND RENEWABLES WILL GROW RAPIDLY IN THE NEXT 20 YEARS