m. moore - unconventional fuels and implications for ccus deployment

7/28/2019 M. Moore - Unconventional Fuels and Implications for CCUS Deployment

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Unconven(onalFuelsandImplica(onsforCCUSDeployment

MichaelE.Moore

Execu/veDirectorNACCSA

VicePresidentEnergyCommodi/esandAdvisoryServices

FearnOilInc.

June24th2013Birmingham,AL


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CoveredTopics

USOilandGasShaleResources&Infrastructure ChangingUSEnergyInfrastructure CrudeOilShippingbyRail OhioShaleInvestments USLNGNatgasExports Coal USRenewables CCUSCCSDevelopments OtherInter-relatedEnergyAc/vi/es


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USOil&GasResourcesandInfrastructure


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USConven/onalOilandGasReservoirs


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USShalePlays-Unconven/onalOil&Gas


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480,000MilesofNatgas-OilandHL

Pipelines-constantlyexpanding

6


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USNatgasProduc/onEIA4-30-13h$p://www.eia.gov/oil_gas/natural_gas/data_publicaons/eia914/eia914.html


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USNatgasProduc/onShaleEIAMay222013h$p://www.eia.gov/naturalgas/weekly/


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USOilProduc/on-Regional

EIAApril2013shorttermenergyoutlookforecastsUScrudeoilproducontoincreasefromanaverageof

6.5MMb/din2012to7.9MMb/din2014 h$p://www.eia.gov/forecasts/steo/archives/Apr13.pdf


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BakkenOilProduc/onSurgestoNewHighh$p://www.upstreamonline.com/live/arcle1330011.ece

June14th-2013OilproduconfromNorthDakota'sBakkenshalehitanewhighinAprilandcouldexceedthestate'sforecastof850,000barrelsperdaybytheendoftheyear,stateregulatorssaidonFriday.

NorthDakota'sDepartmentofMineralResourcessaidApriloutputrose1.3%,orjustover10,000bpdfromamonthearlier,to793,000bpddespiteinclementweathercondions.Outputwasaround33%higherthanayearearlier.

Naonwide,oilproduconhit7.37millionbpdintheweekthatended3May-themostsinceFebruary1992,accordingtotheEnergyInformaonAdministraon.Thosenumbersslippedbyabout76,000bpdlastweekto7.22millionbpd,Bloombergreported.

About75%ofBakkenoille\NorthDakotaontrainsinApril,upfrom71%inMarch,thestatePipelineAuthoritysaid.About17%wasshippedoutviapipeline,downfrom20%inMarch


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TexasRapidChangeinOilProduc/on

Source:TinteraACUSBucharestPresenta/on3-12-13Source:BloombergMay28th2013h[p:www.bloomberg.comnews2013-05-28eagle-ford-oil-output-rises-77-to-more-than-500-000-barrels-day.html

OilproduconinTexassEagleFordshaleformaonrosemoreThan77%inMarchfromayearearlier,topping500,000barrelsa

dayandposngarecord. Theninegeographicfieldsthat

makeupthemajorityofEagleFordyielded529,874barrelsofcrudeaday,accordingtopreliminarydatareleasedbytheTexasRailroadCommission.The

fieldsproduced298,266barrelsdailyinMarch2012.

TheTexasproduced2.3millionbarrelsadayinFebruary,thehighestmonthlylevelsinceApril1986


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PlannedPipelineCapacitytoDe-Bo[leneck

Cushingh$p://www.greencarcongress.com/2013/02/eiapipelines-20130214.html

Overthepastthreeyears,815,000bbl/dofnewpipelinecapacitydeliveringcrudeoiltoCushingwasadded.Overthesameperiod,only400,000bbl/dofnewpipelinetake-awaycapacitywasadded.

Duringthenexttwoyearsanaddional1,190,000bbl/dofpipelinecapacityfordeliveringcrudeoilfromCanadaandthemidconnenttoCushingisplanned,butthisisbalancedby1,150,000bbl/dofplannedpipelinecapacityaddionstodelivercrudeoilfromCushingtotheGulfCoast.

About830,000bbl/dofnewpipelinecapacityisplannedtomovecrudeoildirectlyfromthePermianBasintotheGulfCoast,avoidingthecongestedMidwest.Ifthiscapacityisconstructedandfullyulized,waterborneimportstotheUSGulfCoast,parcularlyoflightsweetcrudeoil,coulddropsignificantly,theEIAsaid.


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EuropeanCompanyStakesinU.S.

ShalePlaysh$p://www.cleanskies.org/wp-content/uploads/2013/02/2.11.2013_EuropeReport_FINAL-web.pdf


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ChangingUSEnergyInfrastructure


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NewGasFlowDynamics-ShaleGas


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h$p://www.ferc.gov/industries/gas/indus-act/pipelines/horizon-pipe.pdf


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GasPipe ineConverte toCarry

CrudeOilfromIllinoistoGulfCoasth$p://www.ogj.com/arcles/2013/02/enbridge--energy-transfer-to-convert-trunkline-segment-to-

crude-.html?cmpid=EnlPipelineFebruary252013

EnbridgeInc.andEnergyTransferwilljointlydevelopaprojecttomove420,000-660,000b/dofcrudeoilbypipelinefromPatoka,Ill.,toSt.James,La.,andtheeasternGulfCoastrefiningmarketbyconverngcertainsegmentsofTrunklineGasCo.LLCssystemtoliquidsservice.TrunklineisasubsidiaryofEnergyTransferPartnersLPandEnergyTransferEquityLP.

Theconverted30-in.ODcrudeoilpipelinewouldenterserviceby2015,pendingUSFederalEnergyRegulatoryCommissionapprovalofTrunklinesJuly2012requesttoabandoncertaindesignatedsegmentsofpipelinefromnaturalgastransmissionservice.Crudeslateandthelevelofsubscriponsreceivedinapendingopenseasonwilldeterminethepipelinescapacity.

Oncecompleted,theprojectwillspanmorethan700miles,includinganewlateralfromnearBoyce,La.,toSt.James.TheSt.JameshubwillprovideaccesstorefineriesintheeasternGulfCoast,aswellasdockaccessforwater-borneshipments.

EnbridgeandEnergyTransferwouldeachown50%ofthejointventure.Enbridgesparcipaonintheventureissubjecttoaminimumlevelofcommitmentsbeingobtainedintheopenseason,andoncompleonofduediligence.

CrudeoilreachesthePatokahubfrombothwesternCanadaproduc/onandfromtheBakkenplayinNorthDakotathroughavarietyofexisngpipelines.EnbridgesSouthernAccessExtensionpipelinewillalsodeliver300,000b/dtoPatokastarnginearly2015(OGJOnline,Dec.14,2012).

EnergyTransferdescribestheeasternGulfCoastasahighlya$racvemarketforCanadianandBakkencrude,butnotcurrentlyaccessiblebypipeline.TheTrunklineconversionwouldcreatethefirstpipelinetransportaonoponformovingcrudeoiltotheeasternGulfCoastfromtheUSMidwest.


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CrudeOilShippingbyRail


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CrudeOilShipmentsbyRailJumph$p://www.progressiverailroading.com/rail_industry_trends/arcle/Shales-in-the-West-well-beyond-the-Bakken-drive-crude-oil-

traffic-for-many-railroads--36140

May2013--BNSFnowmovesaboutsevenoreightunittrainsperdayoutoftheBakken,carryingabout600,000barrelsofoil.Anddailyvolumeisprojectedtoconnueclimbing,to700,000barrelsbyyear'sendandto1millionbarrelsbysomepointin2014.

ThedifferencecomparedwithseveralyearsagoisthatBakkencrudenowisbeingtransportedtomoredesnaons,saysBNSFVicePresidentofIndustrialProductsSalesJohnMiller.BNSFexpectstomovecrudetomorethan50desnaonsby2014'send.

"FirstitwenttoCushingandthenSt.James,[Louisiana],andnowitheadsinalldirecons,includingtheEastCoast,"saysMiller."Ittellsthestoryofrail'sflexibility."


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CrudeOilbyRail-BakkenExample

BakkentoWA BakkentoNF,CA BakkentoUSGC BakkentoNJ BakkentoPA BakkentoUSGC


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USExportedMoreRefinedProducts

thanitImported-NotSeenSince1949 Forthefirstmesince1949,theUnitedStates

exportedmoregasoline,heangoilanddieselfuellastyearthanitimported,theEnergyDepartmentreportedtoday.

BloombergwritesthattooffsetweakU.S.demand,refinersexported439,000barrelsadaymorethanwereimportedtheyearbefore.In2010,dailyimportsaveraged269,000barrels,accordingtothePetroleumSupplyMonthlyreport.

Importsofcrudeoilandrelatedproductsfell11%lastyear,reachingalevelnotseensince1995. h$p://content.usatoday.com/communies/

ondeadline/post/2012/02/us-exported-more-gasoline-than-imported-last-year/1


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OhioShaleInvestments


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IHSOhioU/caShaleReportHTTP://UNCONVENTIONALENERGY.BLOGS.IHS.COM/2013/02/12/UTICA-SHALE-PROMISES-TO-

MAKE-OHIO-AN-ENERGY-POWERHOUSE

2012unconvenonaloil/gasacvitycontributedvalue-addedeconomicacvityof4.1billion

IHSforecaststhatthiscontribuonwillgrowto35.2billionby2035.

2012Ucashalenewjobs-39,000. 2020willincreaseto144,000 2035to275,000 2012Ohiosoperangshale/horizontalrigcountwas9rigs AsofFeb2013549permitsissued249wellsdrilled 2013shale/horizontaloperangrigcount25


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OhioEconomicImpactfromShaleSource:ODNRpresentaon3/12h$p://www.dnr.state.oh.us/portals/10/energy/Uca/Uca-

PointPleasantPlay.pdf


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InvestmentsinOhioU/caShaleh$ps://www.mecseminars.com/sites/default/files/presentaon-files/Manufacturing

%20Renaissance%20in%20Ohio%20Powered%20by%20Oil%20and%20Gas%20from%20Shale.pdf


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MidstreamCommitmentsinOhioU/ca

Shale

h$ps://www.mecseminars.com/sites/default/files/presentaon-files/Manufacturing%20Renaissance%20in%20Ohio%20Powered%20by%20Oil%20and%20Gas%20from%20Shale.pdf


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USLNGNatgasExports


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GlobalLNGMarkerPrices-Daily,Feb.2,2009

July31,2012Source:USLNGExports:TruthandConsequencebyKennethB.MedlockIIIPH.D-JAMESA.BAKERIIIINSTITUTEFOR

PUBLICPOLICYRICEUNIVERSITYAug12-2012Pg.17

Sources:Pla$s,USEnergyInformaonAdministraon,authorscalculaon USHenryHub(HH) (NBP)theUKNa/onalBalancingPoint (JKM)thePla$sJapan/KoreaMarker AndarepresentavecrudeindexedLNGpricefrom2009tothepresent


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h$p://ferc.gov/industries/gas/indus-act/lng/lng-proposed-potenal.pdf


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USNatgasExportPointsh$p://www.eia.gov/pub/oil_gas/natural_gas/analysis_publicaons/ngpipeline/impex_map.html


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ProposedNatgasPipelinesforLNG

ExportfromAlaskah$p://www.arccgas.gov/alaska-natural-gas-pipeline-projects-guide-and-maps


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LNGExports

ExpeditedLNGforAmericanAlliesActof2013

SenatorBarrassoand

CongressmanTurner

introducedFeb6th

2013theExpeditedLNGforAmerican

AlliesActof2013(HR580,S

192)thatwouldreduce

barriersforLNGexportsto

NATOalliesandJapan,giving

themthesamepreferenal

treatmentascountriesthat

havefree-tradeagreements.

DOEApprovesnon-FTALNGExports

Cheniere FreeportLNG


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Coal


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USCoalResourcesSource:h$p://pubs.usgs.gov/of/1996/of96-092/Comp/main.gif


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FuelSwitchingImpactsandCoalExportsh[p:www.aar.org~mediaaarBackground-PapersRailroads-and-Coal.ashx


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Coalvs.NatgasforGenera/on-Vola/le


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CoalExportTerminalsh[p:www.pla[s.comnewsfeature2012coaltransportmap


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ChinaCoalConsump/onvs.theWorld

Combined

consecuveyear,accordingtonewlyreleasedinternaonaldata.China'scoalusegrewby325milliontonsin2011,accounngfor87%ofthe374milliontonglobalincreaseincoaluse.Ofthe2.9billiontonsofglobalcoaldemand

growthsince2000,Chinaaccountedfor2.3billiontons(82%).Chinanowaccountsfor47%ofglobalcoalconsumponalmostasmuchastheenrerestoftheworldcombined.

RobustcoaldemandgrowthinChinaistheresultofamorethan200%increaseinChineseelectricgeneraonsince2000,fueledprimarilybycoal.China'scoaldemandgrowthaveraged9%peryearfrom2000to2010,morethandoubletheglobalgrowthrateof4%andsignificantlyhigherthanglobalgrowthexcludingChina,which

h$p://www.eia.gov/todayinenergy/detail.cfm?id=9751&src=email


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USCoaltoEuropeDisplacesNatgas-

GHGEmissionsGoUph$p://www.bloomberg.com/news/2012-10-31/gas-golden-age-darkens-in-europe-on-u-s-coal-energy-

markets.html

Globalgasconsumponmayrise19percentby2017from2010levelsasdemandsurgesinAsiaandtheU.S.whileEuropesusagedrops1.6percent,accordingtotheInternaonalEnergyAgency.Increasingcoal-firedgeneraoninEuropehascutgasdemandby3billioncubicfeetaday,accordingtoSanfordC.Bernstein&Co.,about7percentofconsumpon.TheIEAlastyearpredictedagoldenageforthefuelwithnewexportsfromAmericatoAustralia.

GasfordeliverynextmonthontheNetherlandsTitleTransferFacility,themainlandEuropeanbenchmark,tradedat27.50euros(35.65)amegawa$-houryesterday,morethandoublethepricefouryearsago,accordingtobrokerdatacompiledbyBloomberg.Thatsequivalentto10.43permillionBrishthermalunitsandcompareswith3.69permillionBtuforfront-monthfuelintheU.S.,whichfell43percentovertheperiod.

Germanpowerstaonsmakealossof11.25eurosamegawa$-hourfromburninggas,accordingtoBloombergcalculaonsoftheso-calledclean-sparkspread,whichtakesintoaccountelectricity,fuelandcarbonpricesfornextmonth.

TheequivalentmeasurewhenburningEuropeancoalfordeliverytoAmsterdam,Ro$erdamandAntwerpshowsaprofitof14.22eurosamegawa$-hour.U.S.CentralAppalachianCoalFuturesforthenextmonthtradedat59.43ashorttononOct.29,excludingshipping,versus84.85ametricton(93.53ashortton)forEuropeancoal.

Burningcoalhascontributedtoa10percentincreaseinEUcarbon-dioxideoutputthisyearthroughSeptember,accordingtoBloombergNewEnergyFinance.First-quarteremissionsfrompowergeneraonintheU.S.droppedtothelowestsince1992becauseof

increasedgasusageandamilder-than-normalwinter,theEIAsaidinanAug.1report.


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EuropeGasCarnageShownbyEON

Closing3-Year-OldPlanth$p://www.bloomberg.com/news/2013-03-12/europe-gas-carnage-shown-by-eon-closing-3-year-old-plant-

energy.html EONSEsIrsching-5inBavarialastyearoperatedlessthan25percentoftheme

asslumpingpowerpricesmadeburningnaturalgasunprofitablebyrecordmargins.AsEuropesweakeconomyholdsbackelectricitydemand,cheapercoal,requirementstobuyrenewableenergyandthecollapsingcostofcarbonpermitsareundercunggas-firedplants.

Thepa$ernisrepeatedthroughoutEuropeasuliesincludingFrancesGDFSuezSAandCentricaPlcmothballgasplants.Theimpactisbothenvironmentalandcommercial.Switchingtocoalincreasesemissions,whileitlowersprofitforgasplants,whichgeneratealmostaquarterofEuropeanpower,andshrinksthemarketforsuppliersledbyOAOGazprom.(GAZP)

Gas-firedplantsarestoppedthreedaysoutoffour,GerardMestrallet,chiefexecuveofficerofGDFSuez,Francesformergasmonopoly,saidatabriefingonFeb.28.Thethermalindustryisincrisis.Thereisovercapacity.

Thedifferencebetweenthecostoffuelandthepricepaidforthepowergeneratedreachedarecordlowtoday.Theso-calledsparkspreadforthemonthaheadfelltoaslowasminus18.35eurosamegawa$-hour(23.87).GasplantsarealsounprofitableinFrance,theNetherlands,SpainandtheCzechRepublic,accordingtodatacompiledbyBloomberg.IntheU.K.,theyrebarelybreakingeven.

Atthesameme,sparkspreadsforcoalplantsareprofitableineveryEuropeanmarkettrackedbyBloombergaspricesforthefueldrop.


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USRenewables


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USSolarProjectsh$p://www.seia.org/map/majormap.php

Thereareover490majorsolarprojectscurrentlyinthedatabase,represenngover32GWofcapacity.

Thelistshowsthatthereisover2.4GWofmajorsolarprojectscurrentlyopera/ng.

Thereremainsanenormousamountofcapacityinthepipeline,withover29GWofPVandCSPprojectseitherunderconstruc/onorunderdevelopment.

UndertheObamaAdministraon,16projectshavebeenpermi$edonfederallands,whichwillprovide6,058MWofgenerangcapacity.


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h$p://www.windpoweringamerica.gov/wind_installed_capacity.asp

AsofJanuary30th2013Installed

CapacityBreaks60,000mwh$p://www.awea.org/newsroom/pressreleases/officialyearendnumbersreleased.cfm


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USPowerGridSource:h$p://en.wikipedia.org/wiki/File:UnitedStatesPowerGrid.jpg


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CO2,Hydrocarbons,Renewables&Electric

Transmission

AnINGAAFoundaonstudyfocusedonthepipelineinfrastructurerequirementsforCCS.Itforecaststhatbetween

15,000and66,000milesofpipelinewillbeneededintheU.S.by

2030,dependingonhowmuchCO2couldbesequestered,and

theuseofCO2forenhancedoilrecovery(EOR). FutureCO2pipelineswilllikelycompetewithnaturalgas

pipelines,NGLs,crudeoilandrefinedproductsforlaborand

materials.

Alsothesingofrenewables(solar/wind)andrelatedtransmissionlinescouldcompetewithCO2,crudeoilandnatural

gasinfrastructureforrights-of-way,especiallyinhighlypopulated

areas.


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CCUSDevelopments


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USCCUSandCCSProjects

CCUS Southern/Kemper-MSUnderconstrucon Summit/TCEP-TXDevelopment AirProducts-TXOperang LeucadiaLakeCharlesCleanEnergyPlantLADevelopment

LeucadiaMississippiGasificaonProjectMSDevelopment NRG-TXDevelopment HECA-CADevelopment DKRW-WYDevelopment Peabody-GreatPoint-TBNPlanning LeucadiaIndianaGasificaon-INPlanning? BothTenaskaplantsTaylorvilleIllandTrailblazerTXcancelledJune21,2013 CCS Southern/PlantBarry-ALOperang ADM-ILOperang FutureGen-ILDevelopment


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CurrentCO2EOROpera/ons


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OtherInter-relatedEnergyAc/vi/es


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GTLAdvancesDuetoNatgasSupply

Price SASOL-LA&IN Shell-LA EmberClear-MS EmberClear-PA BP-AK Calumet-PA Am.GTL-PA Methanex-LA SouthMeth.-LA


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ShaleGasLiquidsDrivePetchemGrowth

h$p://www.argusmedia.com/~/media/Files/PDFs/Mkng/Argus%20NGL%20Shale%20Gas%20Special%20Report.ashx


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PricetoPolluteHitsRecordHighh$p://www.houstonchronicle.com/news/arcle/Price-to-pollute-hits-record-high-4608417.php

June18thThepricetopolluteisatarecordhigh,withtradersrecentlypaying270,000fortherighttoemit1tonofvolaleorganiccompounds,akeyingredientinozone,orsmog.That'supfrom4,500pertoninJanuary2011.

TherecordsaleinvolvedthecityofHouston,whichhad14.3creditsforvolaleorganiccompoundstosella\erupgradingequipmentatitsAlmedaSimssewagetreatmentplant.Thecityalsosoldcreditsfor12.4tonsofnitrogenoxides,anotheringredientinozone,for151,000pertontoAmerexBrokers,aSugarLand-basedfirm.

Thesoaringpriceofsmogcredits-eachequalto1tonofpolluon-meansthemarketisdoingitsjob:proddingindustrytoreduceemissions.Theallowanceshavebecomesovaluablethatforthefirstmesincethesystembegannearlyadecadeago,companiesarelookingforwaystocutemissionsinordertoselltheirexcesscreditsasabo$om-linebooster,traderssaid.

"Asthemarketpricehassignificantlyincreasedoverthepasttwoyears,ithassentsignalstocompaniestomakereduconsinemissions"ofvolaleorganiccompounds,saidMikeTaylor,whomanagestheemissionstradingdeskatHouston-basedElementMarkets.ThebrokeragefirmassistedthecityofHoustonintherecordsale,whichwasreportedlastweektoTexasregulators.

Themarketforthesestate-issuedallowances,officiallycalledEmissionReduconCredits,appearstobedrivenbychemicalmakers,whoarelookingtoexpandintheHoustonareaa\eryearsinthedoldrums.

Despitethebullmarket,tradersareworriedaboutliquidity-theeasewithwhichtheallowancescanbetraded.TherearesofewavailablecreditsingreaterHoustonthatNRGEnergyhasaskedregulatorstoletitbuysomefromtheDallas-FortWorthareatocanceloutemissionsofvolaleorganiccompoundsatitscoal-firedpowerplantinFortBendCounty.Thestateenvironmentalqualitycommission,however,hasnotallowedtradesthatarenotinthesameregion.

ThemarketrunbeganasChevronPhillipsChemicalCo.,CelaneseCorp.andotherchemicalmakersstartedmakingplanstoexpandbecauseofcheapandabundantnaturalgas


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PanamaCanalExpansionandIts

ImpactItcouldbethesinglebiggestgamechangerfortheexportofUSenergyandrelatedcommodiestotheFarEast.

LNGExportsfirstexportfacilityonlinein2015 CoalExportsmajorexpansionsofGCterminals

NGLExportslongtermexportcontracts TransportaonFuelsExports-fromforeignandUScrude,GTLand

CTLprojects

CrudeOilExportstalktoopenuplower48restricons PetrochemicalExportsworldscalenewbuildsandexpansion

underwayintheGC

Annualcapacitywillincreasebyabout2,000addionalships. CapacityintermsofTEUwillalmosttriplefrom4,500to12,000. Bulkcapacityindeadweighttonswillmorethandouble.From

52,000to119,000(h$p://people.hofstra.edu/geotrans/eng/ch1en/appl1en/table_panama_new.html)


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WhatthePanamaCanalExpansionMeansto

Shippingh$p://people.hofstra.edu/geotrans/eng/ch1en/appl1en/table_panama_new.html


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Arc/cShippingRoutes

Aug26

th

2012ChinabecamethelatestcountrytonavigatetheNorthernSeaRoutelastweekwhenitsvesselSnowDragonarrivedinIceland.LinkingthePacificOceantotheAtlanc,theNorthernSeaRouteallowsshipstocutdownontravelmefromAsiatoEuropebyedgingthroughtheicywatersbetweennorthRussiaandtheNorthPole.

Unlnow,shipshavebeenforcedtopassbyIndonesia,India,theGulfandfinallythroughthecrowdedSuezCanalwhichsawalmost18,000vesselschugthroughlastyearalonebeforereachingtheMediterranean.

FollowinganortherncourseinsteadwestaboveCanadaoreastaboveRussiacutsthejourneymebyhalf,aspointedoutbyChairmanofNorway-basedTschudiShipping,FelixH.Tschudi,inaninterviewwithJapanesedailyAsahiShimbun.

"Ifacargoshipwithamaximumloadcapacityof40,000tonscanpassthroughtheNorthernSeaRoute,thatwillshortenthejourneyby22daysandcost839,000[670,000euros]lessthangoingthroughtheSuezCanal."Thearclealsonotesthat1,000tonneslessfuelisneededforthenorthernjourney.

AlsoknownastheNortheastPassage,theNorthernSeaRoutehasonlyrecentlybecomeaccessibletolargevesselsduetothemelngoftheArcc.GermanywasthefirstWesternpowertomakethejourneyin2009,andwassoonfollowedbyJapan,Denmark,CanadaandtheUK.

In2011,atotalof37vesselsmadethetrip.Butthisyearsawrecordlevelsofthaw,allowingChinasicebreakeraneasypassage,withthecrewrepornganastonishinglackoficeastheyskirtedtheNorthPole

h$p://www.france24.com/en/

20120826-arcc-melts-

developers-new-shipping-

northern-sea-route-russia-

china-ice-loss


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Arc/cResources

TheU.S.GeologicalSurvey(USGS)hascompletedanassessmentofundiscoveredconvenonaloilandgasresourcesinallareasnorthoftheArccCircle.Usingageologybasedprobabilisc

methodology,theUSGSesmatedtheoccurrenceofundiscoveredoilandgasin33geologicprovincesthoughttobeprospecveforpetroleum.Thesumofthemeanesmatesforeachprovinceindicatesthat90billionbarrelsofoil,1,669trillioncubicfeetofnaturalgas,and44billionbarrelsofnaturalgasliquidsmayremaintobefoundintheArcc,ofwhichapproximately84percentisexpectedtooccurinoffshoreareas.

h$p://pubs.usgs.gov/fs/2008/3049/fs2008-3049.pdf


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Ques/ons&ThankYou!

MichaelE.Moore

VPEnergyCommodi/esandAdvisoryServices FearnOilInc.(adivisionofAstrup-Fearnleys) www.fearnleys.com Execu/veDirector NorthAmericanCarbonCaptureStorageAssocia/on www.naccsa.org

[email protected]:281-759-0245


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NSPS

PresidenttoannouncehisnewclimatechangeiniavesonTuesday-CCSlikelyinthemix

NGOscanfilesincetheEPAmisseditsdeadlinearewaingtoseewhatthePresidentsannouncementwill

looklikeonTuesday ClassIIvs.ClassVIwillbeinthemix NSPSGHGreduconsoncurrentpowergenerators Abundanceofshalegas RenewableFuelStandard Renewablesgengcheaper RCRA


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h$p://www.rrc.state.tx.us/eagleford/EagleFordOilProducon.pdf

m. moore - unconventional fuels and implications for ccus deployment

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