presentation to the upmra 2012 convention and trade show august 16, 2012
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Presentation to the UPMRA 2012 Convention and Trade Show August 16, 2012. Cody Stewart Energy Advisor Governor Gary Herbert. Why I Love My Job. JOB DESCRIPTION: Promote and Increase energy production in the state of Utah. - PowerPoint PPT PresentationTRANSCRIPT
CODY STEWARTENERGY ADVISOR
GOVERNOR GARY HERBERT
Presentation to the UPMRA2012 Convention and Trade Show
August 16, 2012
Why I Love My Job
JOB DESCRIPTION:
Promote and Increase energy production in the state of Utah.
Create energy independence for the US and help drive down prices.
Energy is Hot One of four cornerstones of Governor Herbert’sAdministration
Major initiative as Chairman of the Western Governor’sAssociation.
ENERGY – Lifeblood of the economy and to modern society
“There is no substitute for energy. The whole edifice of modern society is built upon it…It is not “just another commodity” but the precondition of all commodities, a basic factor equal with air, water, and earth.”
E. F. Schumacher, 1973
Utah is Four Cornerstones Strong
Governor Herbert’s Priorities Energy Education Economic Development Self-Determination
“No other state can offer what Utah can. We are uniquely positioned in the Western Energy Corridor.
Utah has a rich abundance of diverse natural resources, both in terms of traditional fuels, and renewable and
alternative energies.” ~Governor Gary R. Herbert
Office of Energy Development
Created in 2011 by H.B. 475 Operating for approximately 500 days
Promote Energy Development Single point of contact Development of all energy resources Shape and implement policy Assists industry and citizens Streamline processes with state and federal
agencies
Utah Office of Energy Goals
1. Meet Projected Energy Growth Demands Over the Next Decade
2. Ensure Continued Economic Development Through Access to Our Own Energy
3. Develop New Cutting-Edge Technologies Particularly Utilization of Natural Resources
4. Create New & Support Existing Manufacturing Job Opportunities in Utah
5. Modernize Regulatory Environment For Power Generation, Transmission & Conservation
Utah Office of Energy Goals (cont.)
6. Promote Energy Efficiency Conservation and Peak Consumption Reductions
7. Facilitate Responsible Development Traditional, Unconventional & Renewable
8. Pursue Opportunities to Export Fuel Electricity and Technologies – Regional & Global
9. Enhance Relationship Integration Industry, Universities, Government & Communities
10.Collaborate with Other Western States Unified Voice for Federal Agencies & Public Lands
Western Governor’s Association (WGA)
Governor Herbert 2012 WGA Energy Initiative
1) Energy Education 2) Regional Plan for Energy
Independence3) Transmission Issues4) Energy Efficiency5) Alternative Fuels
Utah Energy Use - 1960 to 2010
Figure 5.2 - Net Generation of Electricity in Utah by Energy Sources, 1960-2010
0
10,000
20,000
30,000
40,000
50,000
1960 1965 1970 1975 1980 1985 1990 1995 2000 2005 2010*
Gig
awat
thou
rs
Coal Petroleum Natural Gas Hydroelectric Other
Utah Energy: Doing Alright
Utah ranks as the 15th largest producer of coal
Utah ranks as the 12th largest producer in crude oil
Utah ranks as the 8th largest procuder in natural gas
Need for Basic Energy Education
Renewable Energy More than half of Americans cannot identify one specific
type of renewable energy
Fossil Fuel Nearly 40% cannot identify a specific fossil fuel
We need your help educating the public!
Western Governor’s Association (WGA)
Governor Herbert 2012 WGA Energy Initiative
1) Energy Education 2) Regional Plan for Energy
Independence3) Transmission Issues4) Energy Efficiency5) Alternative Fuels
“ . . . H U R R Y, B E F O R E T H I S W O N D E R F U L P R O D U C T I S D E P L E T E D F R O M N AT U R E ’ S L A B O R AT O R Y ! ”
A D V E R T I S E M E N T F O R “ K I E R ’ S R O C K O I L” , 1 8 5 5 ( F O U R Y E A R S B E F O R E T H E F I R S T U . S . O I L W E L L W A S D R I L L E D )
“ . . . T H E P E A K O F [ U. S . ] P R O D U C T I O N W I L L S O O N B E PA S S E D - - P O S S I B LY W I T H I N T H R E E Y E A R S .
D A V I D W H I T E , C H I E F G E O L O G I S T, U S G S , 1 9 1 9
“ PA S T. . . P R O P H E C I E S O F “ R E S E R V E S R U N N I N G O U T ” H AV E B E E N N O T O R I O U S LY E R R O N E O U S , B U T F I N I T E R E S O U R C E S H AV E B Y
D E F I N I T I O N A F I N I T E E X I S T E N C E . P E R C E P T I O N S O F I M P E N D I N G S H O R T FA L L W I L L C A S T A S H A D O W F O R WA R D , W E L L I N T O T H E
P E R I O D B E T W E E N N O W A N D 2 0 2 0 . “
W O R L D E N E R G Y C O U N C I L , E N E R G Y F O R T O M O R R O W ' S W O R L D , 1 9 9 3
No More Oil?
“THE U.S. IS RUNNING OUT OF NATURAL GAS—PRODUCTION IS DECLINING AND
DEMAND GROWING—SO THE EXPECTATION IS THAT THE IMPORT LEVELS WILL GO FROM 3 PERCENT TODAY TO ABOUT 24
PERCENT IN 2020.”
PAUL H ANRAHAN, CEO OF AES POWER, JAN. 2007
No More Natural Gas?
“PEAK COAL LOOKS LIKE IT’S OCCURRED IN THE LOWER 48.”
D AV I D H U G H E S , G E O L O G I S T F O R T H E G E O L O G I C A L S U R V E Y O F C A N A D A , 2 0 0 7
“STUDY: WORLD’S ‘PEAK COAL’ MOMENT HAS ARRIVED”
N E W Y O R K T I M E S , S E P T. 2 0 1 0
No More Coal?
America’s Energy RichesThe United States is Energy RichBut How Rich?
• The U.S. has 110 years of natural gas
• The U.S. is the world’s #2 coal producer
• The U.S. has over 450 years of coal
• The U.S. is the world’s #3 oil producer
• The U.S. has over 200 years of oil
• The U.S. is the world’s #1 natural gas producer
North American Oil vs. World Oil
Source: Institute for Energy Research, North American Energy Inventory
Technically Recoverable Oil Resources
Can fuel every passenger car in the U. S. for 430 years
Can fuel all oil demand in the U.S. for 250 years at
current usage rates
Contains almost twice as much oil as the proved reserves of all the OPEC nations
Contains more than 6 times the proved reserves of Saudi Arabia
The United States is energy rich, but policy poor
A recent Wood Mackenzie study found that accessing U.S. oil and natural gas currently off-limits could create more than 500,000 new jobs and generate $150 billion in new government revenue by 2025.
In Utah, more sensible oil and gas energy policies could result in at least 26,000 created by 2015 and nearly 50,000 jobs created by 2020.
This would mean an average of $255 million of new revenue to the state every year through 2030.
*Includes tribal ownership. Land ownership data from ESRI Federal and Tribal Land shapefile available at http://www.baruch.cuny.edu/geoportal/data/esri/esri_usa.htm. Meant for visual illustration purposes only.
Not an official map. Produced March 2012, GOPB.
This map illustrates lands within the United States that are in federal or tribal ownership. Federal Lands of the United States
Federal LandsState Boundaries
*Based on percent of land in federal or tribal ownership compared to total land area. Land ownership data from ESRI Federal and Tribal Land shapefile available at http://www.baruch.cuny.edu/geoportal/data/esri/esri_usa.htm. Land area calculated using industry-standard Geographic Information System (GIS) software.
Meant for visual illustration purposes only. Not an official map. Produced March 2012, GOPB.
This map illustrates how the United States might appear if states were condensed to include only lands that are in federal ownership.*
Federally Owned United States
Portion of State Federally Owned Actual Land Area
*Includes tribal ownership. Land ownership data from ESRI Federal and Tribal Land shapefile available at http://www.baruch.cuny.edu/geoportal/data/esri/esri_usa.htm. Meant for visual illustration purposes only.
Not an official map. Produced March 2012, GOPB.
This map illustrates how the United States might appear if the states were condensed to only include federally owned lands.* A balanced approach to federal
lands?
Final Note
“…over the long run, societies that expand and improve their energy supplies overwhelm those that don’t. The paramount objective of US energy policy should be to promote abundant supplies of cheap energy and to facilitate their distribution and consumption.”
Peter Huber and Mark Mills, 2005