keeping california’s clean energy promise loretta lynch member, board of directors pacific...
TRANSCRIPT
Keeping Keeping California’s California’s
Clean Energy Clean Energy PromisePromiseLoretta LynchLoretta Lynch
Member, Board of DirectorsMember, Board of Directors
Pacific EnvironmentPacific Environment
What is Liquefied Natural What is Liquefied Natural Gas?Gas?
Natural gas is extracted Natural gas is extracted through underground through underground drilling overseas.drilling overseas.
Chilled to -260 degrees Chilled to -260 degrees Fahrenheit—liquefies, Fahrenheit—liquefies, becomes highly flammable.becomes highly flammable.
Moved in huge, diesel-Moved in huge, diesel-burning tankers across the burning tankers across the ocean.ocean.
Re-gasified at coastal Re-gasified at coastal import terminals.import terminals.
Sent into CA’s gas pipelines Sent into CA’s gas pipelines which must be retrofitted which must be retrofitted to handle foreign gas.to handle foreign gas.
www.pacificenvironment.org
Who Are the LNG Who Are the LNG Companies?Companies?
LNG: Further Dependence on Foreign Energy
www.pacificenvironment.org
Fact: Plentiful SuppliesFact: 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.
www.pacificenvironment.org
The Fictional Shortage of The Fictional Shortage of ‘05‘05
December ’05 – ’06: Gas prices hit $16 per December ’05 – ’06: Gas prices hit $16 per unit.unit.
Utilities blamed hurricanes, tight supplies, Utilities blamed hurricanes, tight supplies, ‘spiraling demand.’‘spiraling demand.’
March ’06 Mid-Western Attorneys General March ’06 Mid-Western Attorneys General Report: Prices driven by complex, Report: Prices driven by complex, deregulated market, NOT shortages.deregulated market, NOT shortages.
Spring ’06: Gas storage is at record highs, Spring ’06: Gas storage is at record highs, price tumbles to about $6. price tumbles to about $6.
June ’06: Washington Post Reports “Gas June ’06: Washington Post Reports “Gas Glut.”Glut.”
www.pacificenvironment.org
California Gas DemandCalifornia Gas Demand
0
500,000
1,000,000
1,500,000
2,000,000
2,500,000
3,000,000
1998 1999 2000 2001 2002 2004 2005 2008 2016 2020 2025
MM
cf
Total Gas Demand in California (Mmcf)
Total GasProductionin California (Mmcf)
Source: Dave Maul, California Energy Commission
•In California, we are using 20 percent less than we were in 2000.
•Demand is Expected to Stay Flat Until 2010.
www.pacificenvironment.org
How To Reduce Gas How To Reduce Gas DemandDemand
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 Old, Gas Guzzling Power PlantsPlants
•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.
www.pacificenvironment.org
Other Efficiency Other Efficiency OpportunitiesOpportunities
www.pacificenvironment.org
Source: Community Environmental Council.
The Role of RenewablesThe Role of Renewables
www.pacificenvironment.org
Source: Community Environmental Council
Wind More Economical Wind More Economical Than Natural GasThan Natural Gas
Wind power now Wind power now costs 5 cents per costs 5 cents per kilowatt hour. NG kilowatt hour. NG prices peaked at 8 to prices peaked at 8 to 9 cents in winter.9 cents in winter.
Wind industry Wind industry creates 7 times more creates 7 times more jobs than natural gas jobs than natural gas industry.industry.
Wind provides long Wind provides long term income to term income to landowners who host landowners who host the turbines.the turbines.
www.pacificenvironment.org
LNG = Higher Utility LNG = Higher Utility BillsBills
•California LNG investment dependent on locked-in, long term contracts with utilities. Non-competitive 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.
www.pacificenvironment.org