the case against liquefied natural gas loretta lynch member, board of directors pacific environment
TRANSCRIPT
The Case Against The Case Against Liquefied Natural Liquefied Natural
GasGasLoretta LynchLoretta Lynch
Member, Board of DirectorsMember, Board of Directors
Pacific EnvironmentPacific Environment
““A major shift in U.S. A major shift in U.S. energy policy that is energy policy that is likely to have major likely to have major impacts on the U.S. impacts on the U.S. economy for decades and economy for decades and could cost hundreds of could cost hundreds of thousands of Americans thousands of Americans their jobs has occurred their jobs has occurred largely in a vacuum.”largely in a vacuum.”
-Andrew Weissman, Energy -Andrew Weissman, Energy Ventures Group, Summer Ventures Group, Summer 20052005
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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.
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LNG: Further Dependence on Foreign Energy
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Source: California Energy Commission
Proposed Liquefied Natural Proposed Liquefied Natural Gas Terminals – West CoastGas Terminals – West Coast
Source: California Energy Commission
Sempra’s Campaign of Sempra’s Campaign of DeceptionDeception
““North America's North America's demand for demand for natural gas is natural gas is growing, yet growing, yet production in production in the lower 48 of the lower 48 of the United the United States is States is decreasing.”decreasing.”
-Sempra Energy-Sempra Energy
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Sempra’s “Current Trend” Sempra’s “Current Trend” vs. Realityvs. Reality
Lower 48 Natural Gas Marketed Production
43
44
45
46
47
48
49
50
51
52
53
54
55
56
2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010B
illio
n c
ub
ic fe
et p
er
da
y
Source: U.S. Energy Information Administration
Current Trend
Source: Sempra’s Presentation to Cambridge Energy, February 2006
Lower 48 Natural Gas Marketed Production (EIA)
1,200,0001,300,0001,400,0001,500,0001,600,0001,700,0001,800,000
Jan.
04
May
. '04
Sep.
'04
Jan.
'05
May
'05
Sep.
'05
Jan.
'06
May
'06
(Millions ofCubic Feet)
Source: Energy Information Administration
A Tale of Two GraphsA Tale of Two Graphs
Source: Energy Information Agency, U.S. Department of Energy
Source: Sempra Energy
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Sempra’s Energy Sempra’s Energy KingdomKingdom
•Rockies Express Pipeline will deliver 1.8 billion cubic feet of NG per day to the Mid-West
•Two LNG terminals will deliver up to 3 billion cubic feet of NG to Western states.
•Strategy: Monopoly over supplies & customers.
•Sempra’s Mexico LNG projects: outside of U.S. jurisdiction.
•Sempra implicated in manipulating energy supply in 2000 – 2001.