Total Production Increases as Consumption Remains Steady

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Presentation transcript:

Total Production Increases as Consumption Remains Steady During the first 11 months of 2017, total US energy production was 79.824 quadrillion Btu, which was a 3.4% increase compared to 77.222 quadrillion Btu for the first 11 months of 2016, which was a 4.6% decrease from the first 11 months of 2015. Despite a significant increase in energy production, total US energy consumption during the first 11 months of 2017, or 88.813 quadrillion Btu, was essentially the same as the first 11 months of 2016, or 88.488 quadrillion Btu, just a 0.04% increase. As might be expected, the most consumption occurred during January 2017, or 8.976 quadrillion Btu, followed by March, 8.515 quadrillion Btu; July, 8.439 quadrillion Btu; and August, 8.352 quadrillion Btu.

Lower Electricity Demand Is Bad News for Investor-Owned Utilities 2017 marked the third consecutive year natural gas generated more total electricity in the US than coal-fired electricity generation; however, natural gas’s total decreased 105 billion KWh, the largest one-year decline ever recorded. According to US government data, the demand for electricity has remained relatively the same since 2007, although the US GDP has increased significantly. Total electricity use is forecast to increase 5.5% from 2018 through 2028. This is particularly troubling for investor- owned utilities (IOUs) that must make money for their investors, but regulations forbid them from generating a profit. They make money with investments in new plants, but they can’t if there is little or no demand.

Hot Springs and Summers with Affordable Electricity Rates According to The Weather Network, temperatures will be above normal throughout the lower two-thirds of the US during spring, and precipitation will be below normal for most of this area. This pattern will increase during the summer when the entire country will have above-normal temperatures, except for Mideast states. Even Northwest states and Alaska are forecast to experience above-normal temperatures. Despite the electricity demands for air conditioning during the summer, residential rates are forecast to increase by a relatively low 2.3% for all of 2018, following a 2.4% increase for 2017 and a 0.7% decrease for 2016.

Plant Construction and Closings According to the American Public Power Association, natural gas accounted for 61.84% of power plants under construction, as of January 2017, with wind a distant second, at 18.99%, followed by nuclear, 8.69%, and solar, 8.33%. The Reliability First Corporation region had the largest share of power plants under construction, or 30.13%, followed by the Southeastern Electric Reliability Council, 21.75%, and the Electric Reliability Council of Texas, 15.61%. During 2016, coal had the largest share, or 73.9%, of electricity generation capacity plant retirements, followed by natural gas, 13.0%; nuclear, 5.1%; distillate fuel oil, 3.8%; and petroleum coke, 2.7%.

The Elegance of Solar and Wind Energy According to the 2017 Year in Review report from Green Tech Media Research and the Solar Energy Industries Association, 10.6 gigawatts of solar photovoltaic capacity was installed in the US during 2017, a 30% increase from 2016. The US Energy Information Administration (EIA) reported during March 2018 wind accounted for 6.3% of total net generation during 2017, a record share. Wind will become the largest renewable electricity generation source in the US during 2018, increasing by 8.3 gigawatts and another 8.0% during 2020.

More Work Needed to Reduce Emissions Because of strong global economic growth during 2017, energy demand worldwide increased 2.1%, and oil, natural gas and coal were the fuel sources to power more than 70% of that demand; renewables provided power for the remaining 30%. In addition, there was less emphasis on energy efficiency during 2017, and this trend in combination with economic growth resulted in a 1.4% increase in global energy- related carbon dioxide emissions to 32.5 gigatons, which was a new record amount. The latest JRC Science for Policy Report from the European Commission stated the top-6 countries in 2016 CO2 emissions were China, US, EU28, India, Russia and Japan. Together, they accounted for 68% of total global CO2 emissions.

Advertising Strategies As environmental concerns become mainstream issues, utilities can use TV to share the initiatives and methods they are introducing to reduce the use of coal and unhealthy emissions. TV and direct mail is an excellent combination to reach the many Baby Boomers/seniors who plan to age in their homes with energy-saving tips and home improvement ideas to make their homes more energy efficient. Consider developing and promoting a rewards program for customers who are able to lower their energy bill each month during the summer and/or winter by proactively initiating various energy-savings methods.

New Media Strategies Online polls and surveys, via email and social media, are excellent opportunities for utilities to gauge public opinion and solicit energy- saving ideas from customers. Utilities’ Websites can dedicate a page to all of the current government- or privately-based energy efficiency programs for consumers and homeowners. These can also become social media content prior to and during the appropriate season the programs match. Create and post short videos of energy-saving tips, such as gradually increasing the home’s thermostat setting during the summer, so occupants can adjust too and feel comfortable at a higher setting, changing the AC filter every month and the right kind of filter, etc.