Keeping California’s Clean Energy Promise Loretta Lynch Member, Board of Directors Pacific Environment
What is Liquefied Natural Gas?
Natural gas is extracted through underground drilling overseas. Chilled to 260 degrees Fahrenheit —liquefies, becomes highly flammable. Moved in huge, dieselburning tankers across the ocean. Regasified at coastal import terminals. Sent into CA’s gas pipelines which must be retrofitted to handle foreign gas.
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Who Are the LNG Companies?
LNG: Further Dependence on Foreign Energy
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Fact: Plentiful Supplies •Industry Hype of Gas Shortages False. •There are 1,400 Trillion Cubic Feet of Gas Reserves in the Lower 48 United States. •The U.S. Uses About 60 Billion Cubic Feet of Gas per year. •That’s a 60 year supply. •There are 488 – 516 TCF of gas reserves in Canada. •Canada now uses about 8 billion Cubic Feet of Gas per Year, projected to rise to 12 billion by 2025 – 190 BCF Total. •At that rate of growth, Canada has about enough gas to supply itself for 90 years, not counting exports.
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The Fictional Shortage of ‘05
December ’05 – ’06: Gas prices hit $16 per unit. Utilities blamed hurricanes, tight supplies, ‘spiraling demand.’ March ’06 MidWestern Attorneys General Report: Prices driven by complex, deregulated market, NOT shortages. Spring ’06: Gas storage is at record highs, price tumbles to about $6. June ’06: Washington Post Reports “Gas Glut.”
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California Gas Demand 3,000,000
•Demand is Expected to Stay Flat Until 2010.
2,500,000 2,000,000
MMcf
•In California, we are using 20 percent less than we were in 2000.
1,500,000 1,000,000 500,000 0 1998 1999 2000 2001 2002 2004 2005 2008 2016 2020 2025
Source: Dave Maul, California Energy Commission
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Total Gas Demand in California (Mmcf) Total Gas Production in California (Mmcf)
How To Reduce Gas Demand
Source: Community Environmental Center Renewables and Efficiency has the potential to meet more than 3 times the projected increase in demand, with cleaner and safer energy. www.pacificenvironment.org
Old, Gas Guzzling Power Plants •About 2/3rds of Gas Fired Electricity Comes from Power Plants Over 25 Years old. •Most of these are sited in poor neighborhoods. •Everyday, these plants unnecessarily hemorrhage huge amounts of gas. •Replacing them would save about 50,000 GWh, or about 85 percent of energy from one LNG terminal
Hunter’s Point Power Plant, Decommissioned in 2006.
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Other Efficiency Opportunities
Source: Community Environmental Council.
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The Role of Renewables
Source: Community Environmental Council
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Wind More Economical Than Natural Gas
Wind power now costs 5 cents per kilowatt hour. NG prices peaked at 8 to 9 cents in winter. Wind industry creates 7 times more jobs than natural gas industry. Wind provides long term income to landowners who host the turbines.
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LNG = Higher Utility Bills •California LNG investment dependent on lockedin, long term contracts with utilities. Noncompetitive environment. •Cost of infrastructure passed on to consumers through charge on bill. •Cost of foreign extraction passed on to taxpayers through Export Credit Agencies. •Cost of increased security around facilities passed on to taxpayers. •LNG More Expensive to Produce and Transport than domestic gas. •Global Competition from China, India, Europe will drive up cost. •Increasing talk by gas producing countries of natural gas cartel.
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