Shale Gas: A Global Phenomenon 3 | MARCELLUS SHALE COALITION
Source: Energy Information Administration
Slide 4
Shale Gas Revolution Across the U.S. 4 | MARCELLUS SHALE
COALITION Source: Energy Information Administration
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Marcellus and Utica Shales Below the Marcellus Bigger, deeper,
denser One of the last U.S. unconventional energy fields
Particularly attractive in OH Success in the Marcellus will lead to
success in the Utica
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Clean, Abundant, and Versatile Resource-How will things be
different? Heating and cooling sources Light duty and heavy duty
transportation Fuels Generation of electricity Combined heat and
power applications Feedstock for industries Utilization of liquids
in Wet Natural Gas 6 | MARCELLUS SHALE COALITION
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Natural Gas Fundamentals Three Industry Segments Upstream:
bringing natural gas to the surface (drilling) Midstream: storing
and transporting natural gas (pipelines, etc.) Downstream: selling
and distributing natural gas (your supplier) Types of Natural Gas
Dry Gas: Home, business heating and fueling Wet Gas: Contains
Natural Gas Liquids, or NGLs; Raw material for other products
(polymers, paints, plastics, fertilizers, etc.)
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Natural Gas Power Plants 46 % by 2035 Natural Gas Vehicles U.S.
has 110,000 (.9167%) Worldwide 12 Million Infrastructure (Fueling
Choices) Industrial Feedstock
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Shell Picks Pittsburgh Area For Major Refinery Several BILLION
$ to build the plant 500 -1,000 Full time jobs 10,000 +/-
construction jobs for several years Plus additional downstream
Industries with additional job and state revenue
opportunities.
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Average Composition in Wet Gas Region Source: Pace Global;
NiSource Gas Transmission and Storage Presentation to WVONGA Spring
Meeting May 6, 2010 p.5
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Pulp and Paper Metals Chemical plants Petroleum refining Stone
Clay & Glass Plastics Food Processing
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Why Chemical Makers Love Cheap Natural Gas Margins at U.S.
chemical companies are at their highest in years due to the glut of
natural gas. New factories are being planned, and current ones are
running at full capacity. European and Asian chemical manufacturers
use oil-derived naphtha to make ethylene. With ethane prices
currently around 70 cents a gallon, it costs U.S. producers about
$730 to make a ton of ethylene, while manufacturers that use
naphtha to make polyethylene are paying nearly $1,250 a
ton.manufacturers that use naphtha to make polyethylene are paying
nearly $1,250 a ton Adding insult to foreign rivals injury, U.S.
chemical manufacturers can take advantage of cheap
natural-gas-fired electricity to run their refining operations.
Every 10-cent drop in the cost of ethane boosts Dows earnings by
nearly $200 million. Mar 2, 2012, 6:00 am EDT | By Aaron Levitt,
InvestorPlace ContributorAaron Levitt
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Comparing the importance of natural gas to the chemical
industry to flour in a bakery, Babe said theres great promise for
the regions chemical industry in Shell Oils recent announcement
that it has chosen a location in Beaver County to build a $2
billion ethane cracker. Greg Babe, president and CEO of Bayer Corp.
and Bayer MaterialScience LLC, speaks May 23 at a VisionPittsburgh
event at the Duquesne Club. It really could signal the revival of
Americas petrochemical industry, Babe said. That competitive
advantage stems from the abundance of the supply, Babe said, which
will help create cost advantages and provide a predictable
feedstock. Friday, May 25, 2012
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Liquefied Natural Gas LNG is a clear, colorless, non-toxic
liquid that can be transported and stored more easily than natural
gas because it occupies up to 600 times less space.
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EXISTING IMPORT TERMINALS Today, there are 12 U.S. facilities
(and one facility in Puerto Rico) capable of importing LNG. They
are located in: Everett, Massachusetts Cove Point, Maryland Elba
Island, Georgia Lake Charles, Louisiana Gulf Gateway Energy Bridge,
Gulf of Mexico Northeast Gateway, Offshore Boston Freeport, Texas
Sabine, Louisiana Hackberry, Louisiana Neptune LNG, Offshore
Gloucester, Massachusetts Sabine Pass, Texas Pascagoula,
Mississippi At present, the U.S. has one existing LNG export
terminal located in Kenai, Alaska.
Slide 17
Cheniere Wins Approval for Biggest U.S. Gas-Export Terminal By
Brian Wingfield and Joe Carroll - Apr 17, 2012 4:34 PM ET Importing
Countries expected to have high gas prices through 2018 Example:
Japanese Utilities are paying $20.87 per Million Btus = 10 times
the U.S. price. There is a great window of opportunity Energy
Independence: Boosting LNG Exports
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What About This? You've heard this before: "Shale gas is a
gamechanger." Charles Patton, president and chief operating officer
of Appalachian Power Co. said that as power plants in the company's
fleet and elsewhere are retired, "there's just a run to natural
gas."
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Complex Hydro Carbon Simplest Hydro Carbon Natural Gas
(methane) has highest hydrogen-to- carbon ratio of any hydrocarbon
Diesel is a complex hydrocarbon, while natural gas or methane is a
simple hydrocarbon. Simply, more carbon means more emissions have
to be handled. The future looks toward hydrogen, minimal
carbons.
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Natural Gas is a Safe Fuel Lighter than air Rises (rather than
pools) Doesnt accumulate in low places Rich mixture burns off
slowly Ignites at temperatures of approx. 600 C (higher flash
point) Non toxic Odorless-detection fragrance is added Evaporates
quickly Heavier than air Descends Accumulates in low places Rich
mixture explodes Gas and diesel vapors ignite at approx. 200 C
Toxic, especially gasoline Strong inherent odor Evaporates slowly
at room temperature CNG Liquid fuels
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Target NGV Fleet Applications Refuse collection and transfer
Transit Port drayage Local trucking and distribution Public works
(street sweeping, road maintenance, dump trucks, etc.) Airport
operations (taxi, hotel/parking shuttle bus)
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Oil City NG Fueling within 50 miles
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http://www.afdc.energy.gov/afdc/locator/stations/
Slide 27
The Pennsylvania Clean Transportation Corridor will: Result in
more than $200 million in investment in Pennsylvanias economy. Have
a direct impact on more than 1,350 jobs in Pennsylvania. Save
Pennsylvania fleet operators nearly $10 million in fuel costs
annually. Yield more than $60 million in tax revenue for the
Commonwealth of Pennsylvania. Reduce emissions of diesel soot (14.5
tons), 720 Tons Nox (Nitrogen Oxide) ozone-causing pollution and
21,000 tons of greenhouse gas NEED PA NG SUCCESS STORIES
Slide 28
The Pennsylvania Clean Transportation Corridor is a
strategically planned network of natural gas refueling
infrastructure connecting: Philadelphia Scranton / Wilkes-Barre
Allentown Harrisburg Pittsburgh This corridor will serve as the
cornerstone of a larger regional clean fueling network throughout
the northeastern United States.
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The Right Choice. Right Now Environment, Energy Security and
Economics Drive Local Governments Increased Use of Vehicles That
Run on Natural Gas Refuse Truck fuel usage=8,500-10,000 gallons per
year. @$4.00/gallon = $34,000 to $40,000 Estimated savings between
30 and 50% Savings by using NG @ 30%= $10,200.00 to $12,000.00/year
Savings by using NG @ 50%= $17,000.00 to $20,000.00/year Plus
buying incentives of $32,000.00 per heavy duty truck and 90%
quieter. As well as the cleaner burning fuel
Slide 31
Heavy-duty diesel powered trucks 3-4% of all registered on-road
vehicles. They are responsible for 25% of all on-highway fuel (both
gasoline and diesel). The largest trucks heavy-duty Class-8 11
trucks represent only 33% of the total number of registered heavy
vehicles in all weight categories (Classes 3 12 to 8). They are
responsible for 64% of the total miles traveled and 67% of the
total fuel consumed by all commercial vehicles1 3.
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http://www.afdc.energy.gov/afdc/locator/stations/ ONE Trash
Truck using NG will take 325 cars off the road!!