office of the oklahoma secretary of energy · note: data does not include energy exports or retail...

24
The Oklahoma First Energy Plan: A Pragmatic Path Forward C. Michael Ming Secretary of Energy State of Oklahoma Southern States Energy Board Washington, DC February 27, 2012 Office of the Oklahoma Secretary of Energy

Upload: others

Post on 22-Aug-2020

5 views

Category:

Documents


0 download

TRANSCRIPT

Page 1: Office of the Oklahoma Secretary of Energy · Note: Data does not include energy exports or retail electricity sales and electrical system energy losses. 1.630 Quadrillion BTU. Oklahoma

The Oklahoma First Energy Plan: A Pragmatic Path ForwardC. Michael MingSecretary of EnergyState of Oklahoma

Southern States Energy BoardWashington, DC

February 27, 2012

Office of the Oklahoma

Secretary of Energy

Page 2: Office of the Oklahoma Secretary of Energy · Note: Data does not include energy exports or retail electricity sales and electrical system energy losses. 1.630 Quadrillion BTU. Oklahoma

Source: EIA Annual Energy Review, 2010

Page 3: Office of the Oklahoma Secretary of Energy · Note: Data does not include energy exports or retail electricity sales and electrical system energy losses. 1.630 Quadrillion BTU. Oklahoma

U.S. Total Energy Production Estimates

Source: EIA Energy Production Estimates, 2009

Oklahoma Ranks 8th in Total Energy Production

2.571

0

2

4

6

8

10

12

14

Texas

Wyoming

Louisia

naWest V

irginia

Kentucky

Penn

sylvania

California

Oklahom

aCo

lorado

New

 Mexico

Illinois

Alaska

Alabam

aUtah

Virginia

Mon

tana

Ohio

North Dakota

Arkansas

Indiana

New

 York

Washington

Kansas

South Carolina

Iowa

North Carolina

Arizo

naMichigan

Tenn

essee

Florida

Geo

rgia

Mississippi

Oregon

Minne

sota

New

 Jersey

Wisc

onsin

Neb

raska

Maryland

Missou

riCo

nnecticut

South Da

kota

Idaho

Maine

New

 Ham

pshire

Massachusetts

Verm

ont

Nevada

Hawaii

Delaware

Rhod

e Island

Qua

drillion Btu

Page 4: Office of the Oklahoma Secretary of Energy · Note: Data does not include energy exports or retail electricity sales and electrical system energy losses. 1.630 Quadrillion BTU. Oklahoma

The Process Of Developing The Energy Plan

1. Does it grow Oklahoma’s economy?2. Does it create Oklahoma jobs?3. Does it protect and improve Oklahoma’s environment?4. Does it protect and improve the health of Oklahoma’s 

citizens?5. Factoring in 3. & 4. above, does it provide reliable and 

affordable energy for Oklahomans?6. Does it focus on Oklahoma’s unique human and natural          

resources?7. Where are the opportunities to create leverage and 

synergy from our resource base?

Available for download at: www.governor.ok.gov

Page 5: Office of the Oklahoma Secretary of Energy · Note: Data does not include energy exports or retail electricity sales and electrical system energy losses. 1.630 Quadrillion BTU. Oklahoma

Petroleum0.489 Quadrillion BTU

30.0%

Natural Gas0.678 Quadrillion BTU

41.6%

Coal0.373 Quadrillion BTU

22.9 %

Renewables0.089 Quadrillion BTU

5.5 %

Energy Inputs

Transportation0.421 Quadrillion BTU

25.8%

Industrial0.368 Quadrillion BTU

22.6%

Residential & Commercial0.124 Quadrillion BTU

7.6%

Electric Power0.717 Quadrillion BTU

44.0%

Demand Sectors

Percent of Sector

Note: Data does not include energy exports or retail electricity sales and electrical system energy losses.

1.630  Quadrillion BTU

Oklahoma Primary Energy Flow By Source and Sector, 2009

4

Percent of Source

Source: EIA State Energy Data System (SEDS), 2009

Page 6: Office of the Oklahoma Secretary of Energy · Note: Data does not include energy exports or retail electricity sales and electrical system energy losses. 1.630 Quadrillion BTU. Oklahoma

Oklahoma Exports About Two‐Thirds Of Its Natural Gas To Interstate Markets!

0.0

2.1

0.4

0.10.4

0.70.5

0.1

0.9

0.0

0.5

1.0

1.5

2.0

2.5

Coal Natural Gas Petroleum Renewables Net Energy Exports

QuadrillionBtu

Oklahoma Net Energy Exports

Production

Consumption

Net Energy Exports

Total Production: 2.571Total Consumption (Est.):  1.630

Natural gas accounts for more than 80% of the energy produced in Oklahoma!

Source: EIA State Energy Data System (SEDS), 2009

Page 7: Office of the Oklahoma Secretary of Energy · Note: Data does not include energy exports or retail electricity sales and electrical system energy losses. 1.630 Quadrillion BTU. Oklahoma

Oklahoma Crude Oil & Natural Gas Production

Source: EIA, 2010

0

20

40

60

80

100

120

140

160

180

0

0.5

1

1.5

2

2.5

1981

1982

1983

1984

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

Million Ba

rrels

Trillion Cu

bic Feet

Natural Gas Crude Oil

Page 8: Office of the Oklahoma Secretary of Energy · Note: Data does not include energy exports or retail electricity sales and electrical system energy losses. 1.630 Quadrillion BTU. Oklahoma

Coal22.9 %

Natural Gas41.6 %

Petroleum30.0 %

Renewables5.5 %

Renewables Provide About 5.5% Of Oklahoma Energy

Biomass31.6 %

Source: EIA State Energy Data System (SEDS), 2009

Wind29.5

Hydroelectric38.9%

Solar/PV & Geothermal<1%

Note: Data excludes net interstate flow of electricity

Page 9: Office of the Oklahoma Secretary of Energy · Note: Data does not include energy exports or retail electricity sales and electrical system energy losses. 1.630 Quadrillion BTU. Oklahoma

Oklahoma Wind Capacity

Source: EIA Electric Power Annual, 2010; OK Dept. of Commerce, 2012

0

500

1000

1500

2000

2500

3000

3500

2003 2004 2005 2006 2007 2008 2009 2010 2011 2012*

Nam

eplate Cap

acity

 (MW)

*Projects Under Construction

Page 10: Office of the Oklahoma Secretary of Energy · Note: Data does not include energy exports or retail electricity sales and electrical system energy losses. 1.630 Quadrillion BTU. Oklahoma

Electricity GenerationSummer Capacity

Actual Electricity Generation

Natural Gas

Coal

HydroelectricWind

Biomass, Wood, & Derived Fuels

Petroleum

61.6%

5.3%

7.0%

0.5%<0.1%

25.4%

Oklahoma Electric Power Industry Profile

Source: EIA Electric Power Annual, 2010

0.4%

0.3%

5.3%

4.1%

47.0%

43.6%

Total Generation72,250,733 MWh

Total Capacity21,022 MW

Page 11: Office of the Oklahoma Secretary of Energy · Note: Data does not include energy exports or retail electricity sales and electrical system energy losses. 1.630 Quadrillion BTU. Oklahoma

Source: EIA 2011, Average Retail Price of Electricity to Ultimate Customers, Form EIA‐861

National Average: 9.83 cents/kWh 

Oklahoma Average: 7.59 cents/kWh

Oklahoma Ranks Among The Top States For Affordable Electricity Prices

0.00

5.00

10.00

15.00

20.00

25.00

30.00

HI CT NY

NH AK NJ

MA RI DC VT CA ME

MD DE FL PA MI

WI

NV AZ TX CO OH IL AL GA VA NC TN MS SC MN

NM KS MT SD LA MO IN IA OK

OR NE

WV AR ND UT KY WA ID WY

Cents/kW

h

Page 12: Office of the Oklahoma Secretary of Energy · Note: Data does not include energy exports or retail electricity sales and electrical system energy losses. 1.630 Quadrillion BTU. Oklahoma

The Oklahoma First Concept

• Enhance all forms of Oklahoma energy production

• Create jobs and grow the economy

• Reduce dependence on foreign oil

• Make the energy system smarter and more efficient

• Protect the environment & human health

• Build new markets for Oklahoma natural gas

• Support local industry & attract new industry

• R&D: The Oklahoma Energy Initiative

Available for download at: www.governor.ok.gov

Page 13: Office of the Oklahoma Secretary of Energy · Note: Data does not include energy exports or retail electricity sales and electrical system energy losses. 1.630 Quadrillion BTU. Oklahoma

The Centerpiece, But Not The Only Piece

Natural Gas

RenewablesIntegration

High End Use Efficiency

DistributedGeneration & Combined 

Heat & Power

Transportation Fuel Diversity

Ultra Low Emissions

Reliable, Affordable, Abundant, & 

Secure

Rampable & Highly Efficient Power 

Generation

Page 14: Office of the Oklahoma Secretary of Energy · Note: Data does not include energy exports or retail electricity sales and electrical system energy losses. 1.630 Quadrillion BTU. Oklahoma

As Supply Grows, Price Remains Low & Stable• Lower 48 supply has grown by 13.5 billion cubic feet per day since 2004, up 33% 

– Driven by horizontal shale and infrastructure development– Impact has been more stable pricing

$0

$2

$4

$6

$8

$10

$12

$14

$16

35

40

45

50

55

60

Jan-

97

Jun-

97

Nov

-97

Apr-

98

Sep-

98

Feb-

99

Jul-

99

Dec

-99

May

-00

Oct

-00

Mar

-01

Aug-

01

Jan-

02

Jun-

02

Nov

-02

Apr-

03

Sep-

03

Feb-

04

Jul-

04

Dec

-04

May

-05

Oct

-05

Mar

-06

Aug-

06

Jan-

07

Jun-

07

Nov

-07

Apr-

08

Sep-

08

Feb-

09

Jul-

09

Dec

-09

May

-10

Oct

-10

Lower 48 Production Natural Gas Price

Note:  Natural gas price and range are for Henry Hub trading pointSource: Devon Energy Corporation

U.S

. Lo

wer

48

prod

ucti

on(b

illio

n cu

bic

feet

per

day

)

Gas

pri

ce (

$ pe

r m

illio

n Bt

u)

Page 15: Office of the Oklahoma Secretary of Energy · Note: Data does not include energy exports or retail electricity sales and electrical system energy losses. 1.630 Quadrillion BTU. Oklahoma

CNG: Providing The Chicken & The Egg

Page 16: Office of the Oklahoma Secretary of Energy · Note: Data does not include energy exports or retail electricity sales and electrical system energy losses. 1.630 Quadrillion BTU. Oklahoma

Economic/Environmental Benefits

• Economic:– In Oklahoma, transitioning 500 new state vehicle purchases to run on CNG 

could save the state as much as $345,000/year in fuel costs:• $3.00/gallon & $1.85/gge• 15,000 miles/year• 25 mpg

• Environment: – CNG as a replacement for gasoline in light duty vehicles reduces emissions: 

• CO by 90% ‐ 97% • NOx by 35% ‐ 60% • Virtually all PM

Page 17: Office of the Oklahoma Secretary of Energy · Note: Data does not include energy exports or retail electricity sales and electrical system energy losses. 1.630 Quadrillion BTU. Oklahoma

Keystone XL ODOT’s Rolling Pipeline

Clean Line

“Development of the Mississippian could bring more than 100,000 jobs to Oklahoma and Kansas over the next five years, with Oklahoma City being the hub for that growth.”

SandRidge CEO, Tom Ward

Meeting Infrastructure Needs

Page 18: Office of the Oklahoma Secretary of Energy · Note: Data does not include energy exports or retail electricity sales and electrical system energy losses. 1.630 Quadrillion BTU. Oklahoma

Advancing Oklahoma Renewable Target

Source: Federal Energy Regulatory Commission (FERC) 2011, available at: http://www.ferc.gov/market‐oversight/othr‐mkts/renew/othr‐rnw‐rps.pdf

Page 19: Office of the Oklahoma Secretary of Energy · Note: Data does not include energy exports or retail electricity sales and electrical system energy losses. 1.630 Quadrillion BTU. Oklahoma

Untapped Efficiency Potential

Sources: U.S. Energy Information Administration, State Energy Data Systems 2008; U.S. Bureau of EconomicAnalysis, Regional Economic Accounts, Gross Domestic Product by State;American Council for an Energy‐Efficient Economy , State Efficiency Scorecard 2011 

Among Western States, Oklahoma Ranks 4th In Terms Of Industrial Efficiency Potential ‐ $890 Million Potential Savings With A 2.5%/year  Energy Intensity Goal from 2012 – 2016

Page 20: Office of the Oklahoma Secretary of Energy · Note: Data does not include energy exports or retail electricity sales and electrical system energy losses. 1.630 Quadrillion BTU. Oklahoma

Benchmarking & Improving State Buildings 

The Nation’s First Energy Star Certified Capitol Building!

Building1‐Jul‐09 1‐Jul‐10 1‐Jul‐11Energy 

Star Rating Rating Rating

Allen Wright Memorial Library 88 90 91Attorney General 73 77 77Banking Commission N/A 45 57Construction & Properties (LEED) 12 N/A 97Connors/Hodge* 68 76 74Denver Davison Courts 35 34 61Dept. of Agriculture 35 84 89Dept. of Transportation 69 68 76Jim Thorpe 77 76 83Kerr‐Edmondson 87 90 91Sequoyah/Will Rogers* 80 84 87State Capitol 82 88 89

Oklahoma Department Of Central Services: An Energy Efficiency Success Story

Source: Oklahoma Department of Central Services, 2011

Page 21: Office of the Oklahoma Secretary of Energy · Note: Data does not include energy exports or retail electricity sales and electrical system energy losses. 1.630 Quadrillion BTU. Oklahoma

Advancing Oklahoma’s Qualified Workforce

Learn more at www.OKJobMatch.com

Page 22: Office of the Oklahoma Secretary of Energy · Note: Data does not include energy exports or retail electricity sales and electrical system energy losses. 1.630 Quadrillion BTU. Oklahoma

R&D: The Oklahoma Energy InitiativeCO2 EOR

Wind Forecasting

UnconventionalNatural Gas & Oil Resources

Renewables Integration

Advanced Biofuels

Energy System Optimization

Energy, Water, & Environment

Academia 

StatePrivate

Page 23: Office of the Oklahoma Secretary of Energy · Note: Data does not include energy exports or retail electricity sales and electrical system energy losses. 1.630 Quadrillion BTU. Oklahoma

Moving Forward

Wind/Gas Partnership

Combined Heat & Power (CHP)

Energy Efficient Building Codes (IECC)

Hydraulic Fracturing Chemical Disclosure (OCC RM No. 201200005)

Page 24: Office of the Oklahoma Secretary of Energy · Note: Data does not include energy exports or retail electricity sales and electrical system energy losses. 1.630 Quadrillion BTU. Oklahoma

C. Michael MingEmail: [email protected]

Web: www.energy.ok.gov

Office of the Oklahoma

Secretary of Energy