1. The Oregon Department of Energy
John Kaufmann
Rick Wallace
ORULE, June 17, 2008

2. Our Mission
Ensure Oregon has an adequate supply of reliable and affordable energy and is safe from nuclear contamination, by helping Oregonians save energy, develop clean energy resources, promote renewable energy and clean up nuclear waste.
Our Mission - Essentially to help Oregonians use Energy wisely.
Through sponsoring efforts in conservation
Renewable resources
Energy Loans
Nuclear Safety
Facility Siting

3. Oregon Dept. of Energy History
 1975-Oregon Department of Energy established
 1979-Energy Loan Program and Business Energy Tax Credit created
 1991-Transportation category begins, AFV’s and conversions
 2001-Pass-through option is established

4. Oregon Energy Use by Sector
Oregonians spent about $10 Billion in 2006
2008?

5. Oregon Transportation Policy
Reduce Vehicle Miles Traveled
- Land use, mass transit, bicycles, telework, carpooling, rail – Over 7 million Gal/yr saved 2007
Vehicle Efficiency
- High mile per gallon vehicles (ie. hybrids)
- Efficient Truck Technology (APU, Aero, Tires) – Almost 3 million gal/yr saved 2007
Alternative Fuels
- Biodiesel, Ethanol, CNG, Propane etc.
By this fall over 160 million gal/yr petroleum displaced

6. U.S. Oil Demand by Sector

7. Transportation Energy Use

8. Oil Demand by Sector Since 1973
Between 1973 and 2001 the amount of oil consumed by the utility industry dropped by 76%, the commercial sector fell by 52% and the residential sector declined by 43%.
Industrial oil use increased by 8.5%.
In the same period transportation rose by 46.4% despite significant improvements in vehicle efficiency, 12.6 mpg in 1974 to 24.7 mpg in Transportation accounts for 69% of domestic petroleum consumption.
If transportation sector remained constant oil consumption would have decreased by 24.3% from 1973.

9. Source: Robert L. Hirsch Ph. D.

10. 16 of Last 19 Months Consumption is Higher than Production

11. Fuel Prices Take Toll on Truckers
More than 45,000 vehicles, or 3 percent of the tractor fleet, have disappeared from the highways since early last year.
Source: America’s Commercial Transportation Research
935 operators with five or more trucks shut down in the first quarter, up from 385 a year earlier.
Source: American Trucking Association

12. Business Practices Will Need to Adjust
As transportation becomes more expensive, managing a just-in-time supply chain becomes more challenging
Shippers carry extra inventory
Order less frequently
Use intermodal modes of transport

13. What is the Future of Rail in Oregon
How do we increase capacity
Train control capacity