Many Roads to a Common Goal: Automakers' WideRanging Approaches to 2017 and Beyond
Transforming our Nation’s Transportation
Sector: The Role of Natural Gas
Wisconsin Public Utility Institute
Madison, Wisconsin
July 14, 2011
Kathryn Clay, Ph.D.
Executive Director
ANGA-AGA Transportation Collaboration
Transforming the transportation sector to meet our energy
and environmental goals:
Energy Security: Last year, the United States imported 1.5 billion barrels of
oil from dangerous, unstable nations.
•Local Air Quality: Natural gas vehicles produce far lower emissions of
criteria air pollutants than conventional vehicles.
We need a portfolio approach to meet these challenges, and all
alternative fuels will play an important role.
America’s natural gas industry is committed to being a part of the
solution.
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AGA-ANGA Transportation Collaborative
Who we are:
• Over fifty participating distributors and
producers of natural gas.
• Working to build the infrastructure to
support natural gas vehicles nationwide.
• Representing the full natural gas value
chain, from production to delivery.
NATURAL GAS
America’s New Energy Landscape
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Natural Gas: A foundation fuel for our energy
security
•Our nation is the largest producer of natural gas in the world.
•The United States now has more natural gas than Saudi Arabia
has oil.
•Over the last decade, U.S. shale gas production has increased
12-fold and now comprises about 25 percent of total U.S.
production.
Shale Gas Plays and Basins are a vast
resource, widely distributed across the United States.
Thirty-two states are now producing, or have produced, natural gas.
Game-changing discoveries mean abundant
domestic natural gas for the coming decades.
Source: EIA Annual Energy Outlook 2011
Natural Gas Abundance: Independent sources estimate one
hundred years supply.
2500
2000
1500
1000
500
0
NPC 2003 PGC 2006 PGC 2008 ICF 2009 PGC 2010
U.S. Natural Gas Resource Estimates (TcF)
Sources: National Petroleum Council, Potential Gas Committee, ICF Consulting.
Our Commitment: Responsible Resource Development
•Safe, reliable extraction of natural gas is
the first priority for every segment of the
industry.
•Engaging all stakeholders is critical to
defining and meeting environmental
goals.
•All energy production methods bring
risks and trade-offs to manage.
•The industry is committed to best
practices and strict enforcement of
those practices.
NATURAL GAS:
Part of the
Transformation of Transportation
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Natural Gas: Clean, Domestic,
Secure, Affordable Energy for
Transportation
•Greenhouse gas emissions 29% lower
than comparable gasoline light-duty
vehicles.
•Domestic gas production accounts for
89% of natural gas consumed in the
United States.
• Natural gas prices are decoupled
from petroleum, with abundant
resources to support stable prices for
years to come.
Compressed Natural Gas (CNG) costs one-third to one-half
less than gasoline on an energy equivalent basis.
$4.50
$4.00
$3.50
$3.00
$2.50
$2.00
$1.50
$1.00
$0.50
$0.00
Gasoline
Diesel
CNG
Ethanol (E85)
Source: DOE Clean Cities Program, Alternative Fuel Price Report, January 2011
http://www.afdc.energy.gov/afdc/pdfs/afpr_jan_11.pdf
Propane
Biodiesel (B20)
Biodiesel (B99-B100)
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Many automakers already offer natural gas vehicles in
other nations….but not in North America.
Auto Manufacturer
Markets with Light Duty NGVs on offer
GM (Chevrolet, Opel)
Europe, Thailand, Singapore, India
Fiat/Chrysler
Europe, Brazil
Ford
Europe, India
Hyundai
Europe, India, Columbia, Thailand
Mercedes
Europe, India, Thailand
Mitsubishi
India, Thailand
Saab
Europe
Nissan/Renault
Europe
Toyota
India, Thailand
Volkswagen
Europe
Volvo
Europe
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Natural Gas Vehicles:
Solutions for Cities and Local Air Quality
• Washington, D.C.
– 439 of 1,500 city buses run on natural gas
• 53 percent lower nitrogen oxide emissions
• 85 percent lower particulate matter
• 89 percent lower carbon monoxide
• Portland, OR: 100 percent of airport shuttles operate on
natural gas
• Ardmore, PA: 8 million cleaner miles on 73 CNG vehicles
to transport children to school
Natural Gas Distributors: living our commitment
Sempra
•Maintains a fleet of 1100
natural gas vehicles, over 20%
of their total.
•Over half of their CNG
refueling stations are open to
the public.
Questar
With a fleet of xx natural gas
vehicles, and
AGL
•Recently requested approval
from regulators for $10 million
to construct public CNG
charging stations.
• The decision is pending and
expected soon.
Natural Gas Producers: living our commitment
Encana
•Converting a fleet of 1,300
vehicles to bi-fuel.
•Up to 150 bi-fuel vehicles
will be in place by this fall.
Chesapeake
•Converting its entire fleet
of 4,200 vehicles by 2014.
•Last month in Oklahoma,
introduced their 800th
natural gas vehicle.
Apache
•Doubling the size of its CNGpowered vehicle fleet this year.
• Doubling the number of CNG
stations the company operates.
•Intends to have 80 percent of
the fleet, about 720 vehicles, on
bi-fuel operation by the end of
2015.
ANGA-AGA members bring natural gas from the
wellhead to the fuel dispenser.
Going forward, we will work to:
•Build regional corridors for LNG and CNG fueling.
•Partner with developers of home refueling equipment.
•Engage automakers to encourage production vehicles
fueled by natural gas.
Transportation Collaboration Participants
Anadarko Petroleum Corporation
Apache Corporation
BG Group
BHP Billiton
Bill Barrett Corporation
Cabot Oil & Gas Corporation
Chesapeake Energy Corporation
Cimarex
Devon Energy
El Paso
Encana Corporation
Energen
EQT
High Mount Exploration &
Production LLC
Laredo Petroleum
Linn Energy, LLC
Newfield Explorations Company
Noble Energy, Inc.
Petrohawk Energy Corporation
Pioneer Natural Resources
Plains Exploration & Production
Company
QEP Resources
Range Resources
Seneca Resources
SM Energy Company
Southwestern Energy Company
Talisman Energy Inc.
Ultra Petroleum Corp.
Williams Company
XTO Energy Inc.
Transportation Collaboration Participants
AGL Resources
Alagasco
Atmos
Avista
Cascade Natural Gas
CenterPoint Energy
Citizens Energy
DTE Energy
Integrys
Intermountain Gas
Metropolitan Utilities District
MDU Resources Group:
Montana Dakota Utilities / Cascade Natural
Gas / Intermountain Gas / Great Plains
Company
National Fuel
National Grid
New Jersey Natural Gas
NiSource
ONEOK: Texas Gas Service
Piedmont Natural Gas
Questar Gas
Sempra: San Diego Gas &
Electric/Southern California Gas
Southwest Gas
TECO Energy
UGI
Vectren
For More Information on the Transportation
Collaborative please visit:
http://cata.aga.org
www.aga.org
www.anga.us