Wyomings Natural Gas Energy Past, Present, and Future

1
Wyomings Natural Gas Energy Past, Present, and
Future Leadership Wyoming Class of
2006 Gillette, WY
Marc Randal Strahn, October 21, 2005
2
Preview

• WPA Impetus - Focus
• Consumption and forecasts
• Market facts observations
• Production
• Existing/proposed NG infrastructure
• Coal to Fuels initiative
• Conservation efforts

3
Todays Cost of Constrained Export Capacity

• WYs cumulative lost opportunity - 620m/yr
  (1.7m per day)
• 137m/yr from WY share of federal royalties
• 30m/yr from State lands
• 219m/yr from State severance tax
• 234m/yr from ad valorem taxes

• Feds lost opportunity - 274m/yr
• Stalled investment in development of mineral
  resources priceless, the downstream affects are
  a ripple affect, ex. Fertilizer manufacturing

4
WPA

• . . .facilitate the production,
  transportation, distribution and delivery of
  natural gas and associated natural resources
  produced in the state ( . . . carbon dioxide . .
  . synthetic fuels, and water related to energy
  production).
• We are a body politic and corporate operating as
  an instrumentality of the State, but we are not a
  state agency or regulatory body.

5
(No Transcript)
6
Natural Gas Production, Consumption, and
Imports,1970 - 2025 (trillion cubic feet)
History
Projections
Net Imports
Consumption
Natural Gas Net Imports, 2002 and 2025
(trillion cubic feet)
Production
2002
2025
7
Facts and Observations

• Wyoming/Central Rockies 10 year supply of
  natural gas for the U.S.
• It would take about 150 years to bring this gas
  supply to market.
• Wyoming and the Central Rockies have more than
  20 of the remaining North American supply, but
  less than 7 of the U.S. market.
• Other gas supply provinces in North America are
  mature and are declining (Mid-Continent, Texas,
  Louisiana).
• The single-most important objective for Wyoming
  and the countrys foreseeable energy needs is to
  build more natural gas pipelines out of Wyoming
  and the Rockies

8
Natural Gas Pipelines Volume of Remaining
Supply (Tcf)

• The pipeline system is underbuilt in relation to
  the natural gas resource in the Central Rocky
  Mountains. This gas supply is underutilized and
  undervalued as a consequence of lack of pipeline
  capacity.

9
(No Transcript)
10
Major Expansion/Export Projects

• Kern River Gas Transmission Expansion 0.5 Bcfd
  via compression supplying the Los Angeles and Las
  Vegas demand
• Williston Basin Interstate Pipeline Grasslands
  Expansion 0.120 Bcfd via compression feeding
  Northern Borders 42 to Chicago
• El Paso Cheyenne Plains Expansion 0.170 Bcfd
  via compression to Greensburg, KS
• KM/Sempra Rockies Express 1500 miles from
  Opal to Ohio, 2 Bcfd, 42, CAPEX 3.3b

11
(No Transcript)
12
(No Transcript)
13
(No Transcript)
14
Suggestions to act upon . . .

• Eliminate sales and use tax associated with the
  purchase of equipment used to construct new coal
  gasification or coal liquefaction facilities
• solicit federal selection of Wyoming as the site
  for deploying a commercial-scale Western
  Integrated Coal Gasification Demonstration
  Project
• promote funding and technical evaluation for a
  small-scale advanced coal technology
  demonstration project in Wyoming
• solicit interest from developers (for both
  electric generation and synthetic fuels), in
  building projects in Wyoming

15
Conservation Efforts

• Turn down your thermostat
• Close off rooms not in use
• Use solar heat by opening curtains and drapes
  when the sun is shining
• Lower the temp on the water heater to 120 F
• Use cold water only to wash clothes
• Close the damper on the fireplace when not in use
• Replace/clean furnace filter
• Use energy efficient appliances

16
Source Peter Huber and Mark Mills, 2005
17
Thank You

• This presentation can be accessed via our website
  at www.wyopipeline.com