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AGA/EEI Accounting Leadership Forum Austin, TX Fueling the Future with Natural Gas June 15, 2015

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Page 1: Fueling the Future with Natural Gas...Fueling the Future with Natural Gas June 15, 2015 2 Shale Gas Resources • 33 states are now producing or have produced natural gas. • The

AGA/EEI Accounting Leadership Forum Austin, TXFueling the Future with Natural Gas

June 15, 2015

Page 2: Fueling the Future with Natural Gas...Fueling the Future with Natural Gas June 15, 2015 2 Shale Gas Resources • 33 states are now producing or have produced natural gas. • The

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Shale Gas Resources

• 33 states are now producing or have produced natural gas.• The United States produces approximately 14 Bcf per day

more natural gas than 12 years ago.

Page 3: Fueling the Future with Natural Gas...Fueling the Future with Natural Gas June 15, 2015 2 Shale Gas Resources • 33 states are now producing or have produced natural gas. • The

Natural Gas Stable and affordable prices well into the future

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• Our nation’s abundance of home-grown natural gas provides an opportunity to satisfy significant new demand at affordable prices well into the future.

Page 4: Fueling the Future with Natural Gas...Fueling the Future with Natural Gas June 15, 2015 2 Shale Gas Resources • 33 states are now producing or have produced natural gas. • The

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Customers Sales

Residential Natural Gas Use:An Efficiency Success Story

Natural gas usage per

household has decreased

even as overall demand for

energy has risen. This trend

is due in part to installation

of tighter-fitting windows

and doors, better insulation,

utility sponsored energy

efficiency programs, and

the development of

increasingly more efficient

natural gas appliances.

Page 5: Fueling the Future with Natural Gas...Fueling the Future with Natural Gas June 15, 2015 2 Shale Gas Resources • 33 states are now producing or have produced natural gas. • The

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Commitment to EfficiencyUtilities helped customers save 136 trillion Btu of energy and offset 7.1 million metric tons of carbon dioxide emissions in 2012.

Page 6: Fueling the Future with Natural Gas...Fueling the Future with Natural Gas June 15, 2015 2 Shale Gas Resources • 33 states are now producing or have produced natural gas. • The

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Page 7: Fueling the Future with Natural Gas...Fueling the Future with Natural Gas June 15, 2015 2 Shale Gas Resources • 33 states are now producing or have produced natural gas. • The

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Emissions Have Declined Even as Pipelines Have Expanded

Replacing pipelines with protected steel and plastic materials can reduce emissions more than 95%.

Page 8: Fueling the Future with Natural Gas...Fueling the Future with Natural Gas June 15, 2015 2 Shale Gas Resources • 33 states are now producing or have produced natural gas. • The

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Emissions Leakage Rates

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Source: U.S. Department of Energy and U.S. Environmental Protection Agency

Approximately 1.3% of gross natural gas production (31 Tcf) is estimated to be emitted throughout the supply chain.

Production130 Bcf0.41%

Processing122 Bcf0.38% Transmission

& Storage84 Bcf0.27%

Distribution66 Bcf0.24%

Only0.24%

of produced natural gas is emitted from

systems operated by natural gas

utilities

Page 9: Fueling the Future with Natural Gas...Fueling the Future with Natural Gas June 15, 2015 2 Shale Gas Resources • 33 states are now producing or have produced natural gas. • The

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Page 10: Fueling the Future with Natural Gas...Fueling the Future with Natural Gas June 15, 2015 2 Shale Gas Resources • 33 states are now producing or have produced natural gas. • The

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Source: ICF International, Economic Analysis of Methane Emission Reduction Opportunities in the U.S. Onshore Oil and NaturalGas Industries, March 2014

Marginal Abatement Cost Curve For Methane Emissions

Page 11: Fueling the Future with Natural Gas...Fueling the Future with Natural Gas June 15, 2015 2 Shale Gas Resources • 33 states are now producing or have produced natural gas. • The

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States with InnovativeInfrastructure Cost Recovery Mechanisms

Page 12: Fueling the Future with Natural Gas...Fueling the Future with Natural Gas June 15, 2015 2 Shale Gas Resources • 33 states are now producing or have produced natural gas. • The

Kathryn Clay, Ph.D. Vice President, Policy [email protected]

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Find Us Online

www.aga.org

www.truebluenaturalgas.org

http://twitter.com/naturalgasflk

www.facebook.com/naturalgas

www.linkedin.com/company/50905?trk=tyah