energy supply opportunities: the economic advantage for northeast wyoming campbell county economic...
TRANSCRIPT
Energy Supply Opportunities: the Economic Advantage for
Northeast Wyoming
Campbell County Economic Development Corporation, Wednesday, May 11th, 2005, Gillette, WY
Presented by Marc Strahn, Board Member of the Wyoming Natural Gas Pipeline Authority
The Wyoming Pipeline Authority Energy DEMAND - it’s not a science
fiction movie PRB Resources
THINK OUTSIDE THE BOX Planning for the future – areas where
you can influence the outcome
Bryan Hassler -- Executive Director
Carla Hubbard – Administrator
Gregg Detweiller – Technical Analyst
Colby Drechsel – Technical Analyst
Board MembersBoard Members:
Mark Doelger - Chairman
Marc Randal Strahn - Vice Chairman
Duane Zavadil - Board Member
Jim Nielson - Board Member
Jim Peck - Board Member
Kern River ‘smart pig’ launching station adjacent to the Opal Processing Station
Cheyenne Plains
Natural Gas Production, Consumption, and Imports,1970 - 2025 (trillion cubic feet)
0
5
10
15
20
25
30
35
1970 1975 1980 1985 1990 1995 2000 2005 2010 2015 2020 2025
Consumption
Production
Net Imports
History Projections
0
1
2
3
4
5
6
Pipeline Liquefied Natural Gas
Natural Gas Net Imports, 2002 and 2025(trillion cubic feet)
2002
2025
PRB resources
Coal – approx. 1,021,000 short tons per day (WY #1 producer in the Nation or approximately 35% total U.S. production – runner up was W.V. at 13%)
Campbell, Converse, and Sheridan Counties yield 96% of the coal mined in the State of Wyoming
CBM derived natural gas – approx. 850,000 Mcfd (18% of the total natural gas produced in the State of Wyoming)
Oil – 36,080 BOPD Uranium – 1.2 million pounds/y
yellowcake CO2 – power plants?????
On a national level,
Vintage Natural Gas Decline by First Year of Production
Campbell County, WY
0
100,000
200,000
300,000
400,000
500,000
600,000
700,000
800,000
900,000
Jan-
97
Jul-9
7
Jan-
98
Jul-9
8
Jan-
99
Jul-9
9
Jan-
00
Jul-0
0
Jan-
01
Jul-0
1
Jan-
02
Jul-0
2
Jan-
03
Jul-0
3
Jan-
04
Jul-0
4
Jan-
05
Gas
Prod
uctio
n - M
ean
(Mcf
/d)
Pre-1997 1997 1998 1999 2000 2001 2002 2003 2004
Natural gas related developments for northeast WY
Continued CBM development Northern Border Partners, L.P. ‘Bison Pipeline
Project’: 300 miles of 24-30" pipe from Deadhorse, WY near Gillette, WY to their CS 6 compression station near Hebron, ND to transport 250,000 to 500,000 Mcfd. In service November 2006. In the planning stages depending on Powder River Basin production.
Questar’s Wamsutter to Gillette, WY tying into Bison Pipeline Project terminus. 245 miles of 24-30" pipe providing up to 500,000 Mcfd capacity. In service mid to late 2007.
Revenue($) Generated by the Sale of Natural Gas
Produced from Campbell County, WY
$24,932,982
$30,176,191
$14,749,287
$18,953,260
$69,757,875
$82,947,577
$69,073,085
$81,451,756
$0
$10,
000,00
0
$20,
000,00
0
$30,
000,00
0
$40,
000,00
0
$50,
000,00
0
$60,
000,00
0
$70,
000,00
0
$80,
000,00
0
$90,
000,00
0
2003
2004
Federal Royalty State Royalty State Severance County Ad valorem
Outside of the box?
Coal-fired power plants utilize only 1/3 of the energy produced from burning coal; conversely, coal gasification can raise this amount to nearly 50%.
Coal gasification can generate saleable hydrogen and simplifies and lowers the cost of carbon dioxide capture - used for tertiary oil recovery methods
Developing and exporting raw hydrogen and/or hydrogen fuel cell technology GM has already spent $1 billion on developing hydrogen fuel cells and
has made statements that if a car were built in high volume, they could have a cost competitive vehicle by 2010.
Rolls Royce announced it will invest $75 million to develop a hydrogen fuel cell replacement for gas and diesel generators.
The number of companies investing in hydrogen fuel cell technology continues to increase.
cont’d
Coal liquefaction – theoretically, FTD netback at $40/Bbl. (20% return on investment) with the following parameters: export 10,200 BOPD, 104 MW power, consuming 7650 tons per day of coal and 240 gpm water. CAPEX of $740 million, OPEX w/out coal $48 million/y, 182 fulltime employees, 1500 employees during peak construction over a 2 year time frame (RENTECH, April 15, 2005)
Support the incentives that will promote new technology higher education institutions training facilities Examples – McMurray Training Center
Your competitors – LNG, Canada, Alaska
Production and Price Comparison of Wyoming Coal, Coal Gasified into
Methane1 after 1998, and Natural Gas Energy Equivalents
0
1,000
2,000
3,000
4,000
5,000
6,000
7,000
8,000
9,000
10,000
1995 1996 1997 1998 1999 2000 2001 2002 2003 2004
Year
Mil
lio
ns
of
MM
Btu
e
$0
$5
$10
$15
$20
$25
US
$Bil
lio
ns
Coal (MillionMMBtue)
Methane(MillionMMBtue)
Coal Value interms ofmethane price(US$Billions)
Coal Value(US$Billions)
Methane Value(US$Billions)
1 Efficiency = 70%
$ Derivatives from Gasification $
Source: Wyoming State Geological Survey, Wyoming Geo-Notes, Number 78, Nov. 2003, p. 1, Figs 1,2. Personal communication Rod.
WPA Services
Energy related data research and interpretation Infrastructure consulting Policy/planning development Government/Public Affairs services Technical support Annual subscription or by special project
VISIT US!
THE WYOMING NATURAL GAS PIPELINE AUTHORITY
WWW.WYOPIPELINE.COM
Bryan Hassler - Executive DirectorE-mail – [email protected]
Office (303) 748-6473Fax (303) 948-1428
Carla Hubbard – AdministratorE-mail – [email protected]
152 N. Durbin Street – Suite 230Casper, Wyoming 82601
Office (307) 237-5009