Shale Energy: Americas Economic Catalyst
Shale Energy: Americas Economic Catalyst DUG Eagle Ford San Antonio TX Septepmber 16, 2014 Christopher Guith Senior Vice President - Policy Institute for 21st Century Energy U.S. Chamber of Commerce
U. S.
C h a m b e r
We Possess Tremendous Domestic Energy Resources
o f
C o m m e r c e
Technically Recoverable Resources 120 years of Nat Gas 206 Years of Oil 464 years of Coal
In-place Resources 586 years of Nat Gas 536 years of oil 9,844 years of coal Institute for Energy Resources Analysis of U.S. Government Data
U. S.
C h a m b e r
o f
C o m m e r c e
Liquids Supply & Demand Status Crude production has increased 70% since 2005 to 8.5 MMb/d (~1.2 MMb/d Condensate). EIA shows production hitting 9.3 MMb/d in 2015 Several independent analyses show produciton hitting 12 MMb/d by 2019 U.S. Refinery throughput is running 16.8 MMb/d. SO WHAT’S THE PROBLEM?
U. S.
C h a m b e r
o f
America’s New Energy Future
C o m m e r c e
U. S.
C h a m b e r
o f
C o m m e r c e
Oil & Gas is THE Job Driver Percentage Change in Employment from 2007: O&G v All Non-Farm 40
+38.6%
30 20
10 0 -10
-2.6%
Source: BLS
O&G
All Non-Farm
U. S.
C h a m b e r
o f
C o m m e r c e
Industrial Gas Consumption Returns
U. S.
C h a m b e r
o f
C o m m e r c e
Refineries Running at Record Levels
EIA, Weekly Petroleum Status Report, 7-24-14
U. S.
C h a m b e r
o f
It’s All About Price Differential
C o m m e r c e
U. S.
C h a m b e r
Shale Revolution Spawns Manufacturing Renaisance
o f
IHS, ANEF 2013
C o m m e r c e
U. S.
C h a m b e r
o f
C o m m e r c e
Exports Increasingly Important to PetChem
IHS, ANEF 2013
U. S.
C h a m b e r
o f
C o m m e r c e
Shale Fueling Texas
Jobs Supported New Government Revenue (billions) Economic Growth (billions)
2012
2020
2035
567k
929k
733k
$10.3 $19.3
$13.9
$102
$169
$125
$397 Billion in Gov Revs 2012-2035 IHS, America’s New Energy Future. October 2012
U. S.
C h a m b e r
o f
America’s New Energy Future
C o m m e r c e
U. S.
C h a m b e r
o f
America’s New Energy Future
Loss
Loss
Loss
C o m m e r c e
U. S.
C h a m b e r
o f
C o m m e r c e
A Bright Future is NOT a Given
435 Actions Across 26 States State Measures (Passed)
State Measures (Pending)
Local Measures (Passed)
Local Measures (Pending)
Shale Plays
Food & Water Watch: Mapping the Movement
U. S.
C h a m b e r
o f
Rulemakings On The Runway!
C o m m e r c e
U. S.
Coal & Gas Prices
C h a m b e r
o f
C o m m e r c e
U. S.
C h a m b e r
o f
C o m m e r c e
Expected Coal Plant Closures • >50 GW prematurely retired by 2020 • 15%-20% of entire coal fleet • ~10% of all US generation
U. S.
C h a m b e r
o f
C o m m e r c e
Heavy Concentration on Retirements
U. S.
C h a m b e r
o f
C o m m e r c e
Time to TAKE ACTION
ENERGYXXI.ORG
U. S.
C h a m b e r
We Possess Tremendous Domestic Energy Resources
o f
C o m m e r c e
Technically Recoverable Resources 120 years of Nat Gas 206 Years of Oil 464 years of Coal
In-place Resources 586 years of Nat Gas 536 years of oil 9,844 years of coal Institute for Energy Resources Analysis of U.S. Government Data
U. S.
C h a m b e r
o f
C o m m e r c e
Liquids Supply & Demand Status Crude production has increased 70% since 2005 to 8.5 MMb/d (~1.2 MMb/d Condensate). EIA shows production hitting 9.3 MMb/d in 2015 Several independent analyses show produciton hitting 12 MMb/d by 2019 U.S. Refinery throughput is running 16.8 MMb/d. SO WHAT’S THE PROBLEM?
U. S.
C h a m b e r
o f
America’s New Energy Future
C o m m e r c e
U. S.
C h a m b e r
o f
C o m m e r c e
Oil & Gas is THE Job Driver Percentage Change in Employment from 2007: O&G v All Non-Farm 40
+38.6%
30 20
10 0 -10
-2.6%
Source: BLS
O&G
All Non-Farm
U. S.
C h a m b e r
o f
C o m m e r c e
Industrial Gas Consumption Returns
U. S.
C h a m b e r
o f
C o m m e r c e
Refineries Running at Record Levels
EIA, Weekly Petroleum Status Report, 7-24-14
U. S.
C h a m b e r
o f
It’s All About Price Differential
C o m m e r c e
U. S.
C h a m b e r
Shale Revolution Spawns Manufacturing Renaisance
o f
IHS, ANEF 2013
C o m m e r c e
U. S.
C h a m b e r
o f
C o m m e r c e
Exports Increasingly Important to PetChem
IHS, ANEF 2013
U. S.
C h a m b e r
o f
C o m m e r c e
Shale Fueling Texas
Jobs Supported New Government Revenue (billions) Economic Growth (billions)
2012
2020
2035
567k
929k
733k
$10.3 $19.3
$13.9
$102
$169
$125
$397 Billion in Gov Revs 2012-2035 IHS, America’s New Energy Future. October 2012
U. S.
C h a m b e r
o f
America’s New Energy Future
C o m m e r c e
U. S.
C h a m b e r
o f
America’s New Energy Future
Loss
Loss
Loss
C o m m e r c e
U. S.
C h a m b e r
o f
C o m m e r c e
A Bright Future is NOT a Given
435 Actions Across 26 States State Measures (Passed)
State Measures (Pending)
Local Measures (Passed)
Local Measures (Pending)
Shale Plays
Food & Water Watch: Mapping the Movement
U. S.
C h a m b e r
o f
Rulemakings On The Runway!
C o m m e r c e
U. S.
Coal & Gas Prices
C h a m b e r
o f
C o m m e r c e
U. S.
C h a m b e r
o f
C o m m e r c e
Expected Coal Plant Closures • >50 GW prematurely retired by 2020 • 15%-20% of entire coal fleet • ~10% of all US generation
U. S.
C h a m b e r
o f
C o m m e r c e
Heavy Concentration on Retirements
U. S.
C h a m b e r
o f
C o m m e r c e
Time to TAKE ACTION
ENERGYXXI.ORG
