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U.S. Energy Sector Overview U.S. Energy Production and Consumption Trends March 29, 2016 Producer: Ben Booker Edited by: Katharine Conlon Director: Afzal.

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Presentation on theme: "U.S. Energy Sector Overview U.S. Energy Production and Consumption Trends March 29, 2016 Producer: Ben Booker Edited by: Katharine Conlon Director: Afzal."— Presentation transcript:

1 U.S. Energy Sector Overview U.S. Energy Production and Consumption Trends March 29, 2016 Producer: Ben Booker Edited by: Katharine Conlon Director: Afzal Bari

2 Coal, Natural Gas and Crude Oil are the Largest Sources of Energy March 29, 2016 | Ben Booker Sources: EIA, “Total Energy Production,” March 10, 2016. NATIONAL ENERGY DATAPRESENTATION CENTER ■ Total Renewable Energy Production ■ Nuclear Electric Power Production ■ Crude Oil Production ■ Natural Gas Production ■ Coal Production Energy Production by Source in Quadrillion British Thermal Units (BTU) 1

3 Over the Past Decade, Coal Production Has Declined While Natural Gas and Crude Oil Have Increased Significantly March 29, 2016 | Ben Booker Sources: EIA, “Total Energy Production,” March 10, 2016. NATIONAL ENERGY DATAPRESENTATION CENTER ■ Total Renewable Energy Production ■ Nuclear Electric Power Production ■ Crude Oil Production ■ Natural Gas Production ■ Coal Production Energy Production by Source in Quadrillion British Thermal Units (BTU) 2

4 Natural Gas and Crude Oil Production Have Increased Due to Fracking, Which Has Tapped into U.S. Shale March 29, 2016 | Ben Booker Sources: Al Granberg, “What Is Hydraulic Fracturing?”, ProPublica, 2013; Robert B. Jackson, Avner Vengosh, J. William Carey, Richard J. Davies, Thomas H. Darrah, Francis O’Sullivan, and Gabrielle Petron, “The Environmental Costs and Benefits of Fracking,” Annual Review of Environmental Resources, August 11, 2014. NATIONAL ENERGY DATAPRESENTATION CENTER The Process of Fracking and Its Pros and Cons 3 Hydraulic Fracturing “Fracking” pumps sand, water and chemicals into horizontally-drilled wells as far as 10,000 feet below the surface. The mixture is pumped at high pressures causing fractures in the rock layer. Through these fissures, oil and natural gas flow out of the shale and to the surface of the well Sand keeps fissure open Oil and natural gas flow out of shale fissures Shale Water, sand and chemicals Marcellus Shale Shale is fractured by the pressure inside the well

5 The Largest Sources of Electricity Generation are Coal, Natural Gas and Nuclear March 29, 2016 | Ben Booker Sources: EIA, “Electric Power Monthly,” February 2016. NATIONAL ENERGY DATAPRESENTATION CENTER Electricity Generation by Source in Thousands of Megawatt Hours ■ Renewable Energy Except for Hydropower ■ Hydropower ■ Nuclear ■ Natural Gas ■ Petroleum ■ Coal 4

6 Coal Has Been Declining with Natural Gas and Renewable Energy Replacing It as an Electricity Source March 29, 2016 | Ben Booker Sources: EIA, “Electric Power Monthly,” February 2016. NATIONAL ENERGY DATAPRESENTATION CENTER Electricity Generation by Source in Thousands of Megawatt Hours ■ Renewable Energy Except for Hydropower ■ Hydropower ■ Nuclear ■ Natural Gas ■ Petroleum ■ Coal 5

7 New Electric Power Generation Has Been Mainly Natural Gas and Renewable Energy, Particularly Solar and Wind March 29, 2016 | Ben Booker Sources: FERC,” Office of Energy Projects Energy Infrastructure Update,” December 2015. NATIONAL ENERGY DATAPRESENTATION CENTER Percentage of New Power Generation by Source ■ Natural Gas ■ Wind ■ Solar ■ Other Renewables ■ Other 6

8 Renewable Energy Has Increased Because of Government Subsidies and Falling Production Costs March 29, 2016 | Ben Booker Sources: International Energy Agency, “Renewable Energy: Medium-Term Market Report 2015,” October 2015; Matt Egan, “Coal Companies Have Been Scorched Under Obama,” CNN Money, August 3, 2015; Tata Papel, “Fossil Fuels Losing Cost Advantage Over Solar, Wind IEA Says,” Bloomberg Business, August 31, 2015; Hunotika, “Graph,” Noun Project, Lizzy Gregory, “Fossil Fuels,” Noun Project; Aha-Soft, “Storm,” Noun Project; Iconathon, “Solar Panel,” Noun Project. NATIONAL ENERGY DATAPRESENTATION CENTER Reasons for the Rise in Renewable Energy Production ReasonsKey Details Falling production costs make renewable sources more competitive Renewable energy sources, primarily wind and solar, have reached larger scales in the past decade resulting in mass production techniques being developed Mass production techniques have dramatically lowered the price of producing solar panels and wind turbines As a result, electricity produced from renewables is cheaper Government subsidies have defrayed the cost of renewables even further Under the Obama administration, government subsidies have started to bolster solar and wind production These subsidies push the price of solar and wind to below coal and oil production in some regions where it otherwise would not be cost competitive Pressure has been growing on coal industry Under Obama, the EPA has introduced more stringent environmental rules Complying with these environmental rules has increased coal production costs or has even shuttered low-performing coal plants 7

9 Oil and Natural Gas Production is Largely Concentrated in the South and Mid-West March 29, 2016 | Ben Booker Sources: EIA; “Us State Rankings,” March 10, 2016. NATIONAL ENERGY DATAPRESENTATION CENTER States Who are Top Producers of Oil and Natural Gas OH WV VA PA NY ME NC SC GA TN KY IN MI WI MN IL LA TX OK ID NV OR WA CA AZ NM CO WY MT ND SD IA UT FL AR MO MS AL NE KS AK ■ Top Crude Oil Producers ■ Top Natural Gas Producers ■ Both a Top Crude and Natural Gas Producer The Story of Shale Shale is concentrated in the mid-western region along with Texas and Oklahoma Shale deposits have resulted in rapid increase in oil and gas production Pennsylvania and North Dakota have been newcomers to top oil producers because of fracking technology 8

10 Coal Production Remains Heavily Concentrated in the Mid-East With Notable Exceptions in Northwest and Texas March 29, 2016 | Ben Booker Sources: EIA; “Us State Rankings,” March 10, 2016. NATIONAL ENERGY DATAPRESENTATION CENTER States Who are Top Coal Producers OH WV VA PA NY ME NC SC GA TN KY IN MI WI MN IL LA TX OK ID NV OR WA CA AZ NM CO WY MT ND SD IA UT FL AR MO MS AL NE KS AK Top Coal Producing States (Ranked from Highest to Lowest) 1.) Wyoming 2.) West Virginia 3.) Kentucky 4.) Pennsylvania 5.) Illinois 6.) Texas 7.) Montana 8.) Indiana 9.) North Dakota 10.) Ohio 9

11 Sunny Southwest Has the Largest Concentration of Solar Capacity March 29, 2016 | Ben Booker Sources: Solar Energy Industries Association, “Top Ten Solar Producing States,” March 2016 NATIONAL ENERGY DATAPRESENTATION CENTER States with the Most Solar Capacity Installed OH WV VA PA NY ME NC SC GA TN KY IN MI WI MN IL LA TX OK ID NV OR WA CA AZ NM CO WY MT ND SD IA UT FL AR MO MS AL NE KS AK Top Solar Producing States (Ranked from Highest to Lowest) 1.) California 2.) Arizona 3.) North Carolina 4.) New Jersey 5.) Nevada 6.) Massachusetts 7.) New York 8.) Hawaii 9.) Colorado 10.) Texas 10

12 Northwest and Northeast Have States Who Get a Large Portion of Their Energy from Renewables March 29, 2016 | Ben Booker Sources: Gina Marie Cheeseman, “Top Ten Renewable Energy Producing States,” Triple Pundit, December 14, 2015. NATIONAL ENERGY DATAPRESENTATION CENTER Top 10 States with Largest Percentage of Energy Coming from Renewable Sources OH WV VA PA NY ME NC SC GA TN KY IN MI WI MN IL LA TX OK ID NV OR WA CA AZ NM CO WY MT ND SD IA UT FL AR MO MS AL NE KS AK 11

13 The West Coast and the Wind Corridor in the Midwest are the Largest Wind Producers in the Country March 29, 2016 | Ben Booker Sources: Associated Press, “Top and Bottom Wind Energy-Producing Producing States in the US,” July 12, 2015. NATIONAL ENERGY DATAPRESENTATION CENTER States with the Most Wind Production as Measured in Megawatts OH WV VA PA NY ME NC SC GA TN KY IN MI WI MN IL LA TX OK ID NV OR WA CA AZ NM CO WY MT ND SD IA UT FL AR MO MS AL NE KS AK Top Wind Producing States (Ranked from Highest to Lowest) 1.) Texas 2.) California 3.) Iowa 4.) Oklahoma 5.) Illinois 6.) Oregon 7.) Washington 8.) Minnesota 9.) Kansas 10.) Colorado 12

14 The Largest Sources of Energy Consumption Remain Petroleum, Natural Gas and Coal March 29, 2016 | Ben Booker Sources: EIA, “Total Energy Consumption,” March 10, 2016 NATIONAL ENERGY DATAPRESENTATION CENTER ■ Total Renewable Energy Consumption ■ Nuclear Electric Power Consumption ■ Petroleum Consumption ■ Natural Gas Consumption ■ Coal Consumption Energy Consumption by Source in Quadrillion British Thermal Units (BTU) 13

15 Electricity Sector Consumes the Most Energy With the Industrial Sector a Close Second March 29, 2016 | Ben Booker Sources: EIA, “Annual Energy Review,” September 2012. NATIONAL ENERGY DATAPRESENTATION CENTER ■ Electric Power (Primary Energy Consumed) ■ Transportation Sector ■ Industrial Sector ■ Commercial Sector ■ Residential Sector Energy Consumption by Sector in Trillion BTUs 14

16 In Recent Years, Coal Consumption Has Declined While Renewable Energy and Natural Gas Have Increased March 29, 2016 | Ben Booker Sources: EIA, “Total Energy Consumption,” March 10, 2016. NATIONAL ENERGY DATAPRESENTATION CENTER ■ Total Renewable Energy Consumption ■ Nuclear Electric Power Consumption ■ Petroleum Consumption ■ Natural Gas Consumption ■ Coal Consumption Energy Consumption by Source in Quadrillion BTUs 15

17 Northeast Consumes the Least Amount of Energy Per Capita While the Plains Region are the Highest March 29, 2016 | Ben Booker Sources: EIA,”U.S. State Rankings,” March 10, 2016. NATIONAL ENERGY DATAPRESENTATION CENTER ■ Top Energy Consumers Per Capital ■ Lowest Energy Consumers Per Capita Top and Lowest Energy Consumers by per Capita OH WV VA PA NY ME NC SC GA TN KY IN MI WI MN IL LA TX OK ID NV OR WA CA AZ NM CO WY MT ND SD IA UT FL AR MO MS AL NE KS AK 16

18 The Stimulus Package and Executive Actions Have Been the Principal Elements of Obama’s Energy Agenda March 29, 2016 | Ben Booker Sources: Valerie Volcovio, “Senate Starts Debate on Broad Energy Bill,” Reuters, January 27, 2016; Katherine Conlon, “Clean Power Plan Primer”, National Journal, August 5, 2015; Devin Hurry, “House Passes Energy Policy Bill Overhaul,” The Hill, December 3, 2015; Timothy Cama, “Obama Halts New Federal Coal Mining”, The Hill, January 15, 2016; US Spending Bill Lifts 40-year Ban On Crude Oil Exports Ban,” BBC News, December 18, 2015; GovTrack.us, January 28, 2016; Coral Davenport, “Citing Climate Change, Obama Rejects Construction of Keystone XL Oil Pipeline,” The NY Times, November 6, 2015; White House, “About the Recovery Act,,” March 11, 2016. NATIONAL ENERGY DATAPRESENTATION CENTER Major Energy Developments During the Obama Administration Feb. 2009 Nov. 2015 Jan. 2016 Dec. 2015 American Recovery and Investment Act of 2009: At the beginning of the Obama administration, a massive stimulus package was passed. It included over $80 billion in direct energy projects and tax credits for efficiency improvements Environmental Protection Agency Introduced Clean Power Plan: The EPA’s Clean Power Plan is a comprehensive set of rules regulating CO 2 emissions. The Clean Power Plan sets targets for carbon emission reductions to be met by 2030. States are required to submit plans to EPA outlining how they will reduce their carbon emissions. Obama blocked Keystone XL Pipeline: Obama announced he would be rejecting construction of the Keystone XL Pipeline on the U.S. side of the border. Paris Climate Agreement: World leaders agree to a voluntary reduction in greenhouse gas emissions contributing to climate change. Developed countries also agree to help subsidize the cost of developing countries to transition to clean energy resources. Obama signed law lifting 40 year crude oil export ban: For the first time since the 1970s oil crisis, US crude oil producers would be able to export their product. However, since the market is glutted with oil, the immediate impact on US oil exports will be limited. Obama Issued Executive Order Placing a Moratorium on New Federal Coal Leases: The moratorium lasts for three years while the Department of Interior conducts an assessment of the environmental impact of coal leases on federal land. Aug. 2015 Dec. 2015 Energy Outlook 2016 The Senate is working on a comprehensive energy bill, S. 2012. It is expected to be voted on in the coming weeks. The EPA’s Clean Power Plan is currently being ruled on by the D.C. Circuit Court of Appeals. The Supreme Court has ruled the CPP cannot be implemented until after the ruling, depending on the verdict. President Obama is pushing for the Paris Climate Accord to be approved by Congress, but will face sharp resistance from Republicans in both chambers 17


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