the rocks matter: energy, extraction and natural resource considerations in missouri

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Celebrating 40 years of taking care of Missouri’s natural resources. The Rocks Matter: energy, extraction and natural resource considerations in Missouri Joe Gillman State Geologist and Director Missouri Geological Survey Department of Natural Resources Maryville, Missouri, October 2014

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The Rocks Matter: energy, extraction and natural resource considerations in Missouri. Joe Gillman State Geologist and Director Missouri Geological Survey Department of Natural Resources Maryville, Missouri, October 2014. Missouri’s historic production of carbon based energy resources. Coal. - PowerPoint PPT Presentation

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Celebrating 40 years of taking care of Missouri’s natural resources.

The Rocks Matter: energy, extraction and natural resource considerations in Missouri

Joe GillmanState Geologist and DirectorMissouri Geological Survey

Department of Natural ResourcesMaryville, Missouri, October 2014

Celebrating 40 years of taking care of Missouri’s natural resources.

Missouri’s historic production of carbon based energy resources

Oil

Gas

Coal

The End

Celebrating 40 years of taking care of Missouri’s natural resources.

Celebrating 40 years of taking care of Missouri’s natural resources.

Missouri’s historic production of carbon based energy resources

Celebrating 40 years of taking care of Missouri’s natural resources.

Missouri’s historic production of carbon based energy resources

Celebrating 40 years of taking care of Missouri’s natural resources.

Current trends

Coal

• 2 operating mines• Significant economically recoverable reserves• Bituminous• 3-6% sulfur, 10% ash content• Technology – IGCC, GTL, ISC, other

• Future of Missouri coal?• Demand?

• Technology?

Celebrating 40 years of taking care of Missouri’s natural resources.

Celebrating 40 years of taking care of Missouri’s natural resources.

Current trends

Oil

• Very little primary production• Increasing exploration and secondary/tertiary production–

steam, water, CO2

• Oil sands - significant economically recoverable reserves• Low sulfur, high gravity• 75-80% $$ WTI• Technology – horizontal drilling, hydraulic fracturing, mining,

other

• Future of Missouri oil?• Demand?

• Technology?• Water?

Celebrating 40 years of taking care of Missouri’s natural resources.

Celebrating 40 years of taking care of Missouri’s natural resources.

Celebrating 40 years of taking care of Missouri’s natural resources.

Celebrating 40 years of taking care of Missouri’s natural resources.

Celebrating 40 years of taking care of Missouri’s natural resources.

Celebrating 40 years of taking care of Missouri’s natural resources.

Celebrating 40 years of taking care of Missouri’s natural resources.

Current trends

Gas

• Very little production• Associated with oil recovery, not primary • Coal Bed Methane – known occurrence; unknown quality or

reserves• Technology – horizontal drilling, hydraulic fracturing, other

• Future of Missouri gas?• New Discovery?

• Technology?• Water?

Celebrating 40 years of taking care of Missouri’s natural resources.

Celebrating 40 years of taking care of Missouri’s natural resources.

Celebrating 40 years of taking care of Missouri’s natural resources.

Alternative Energy and Natural Resources

Solar

Battery

Wind

Geothermal

Celebrating 40 years of taking care of Missouri’s natural resources.

Current trends

Wind

• A single 3-MW wind turbine requires:• 335 tons of steel• 4.7 tons copper• 1,200 tons industrial minerals• 3 tons aluminum• 2 tons REE (Samarium-neodymium-holmium-gadolinium-

praseodymium-dysprosium)

• Upstream issues?• Economic opportunity?

• Water?

Celebrating 40 years of taking care of Missouri’s natural resources.

Current trends

Solar

• Photovoltaic cells and solar concentrators:• High purity silica• Copper-indium-gallium-selenium• Molybdenum• Cadmium-Tellurium• Aluminum• Nickel

• Upstream issues?• Economic opportunity?

• Water?

Celebrating 40 years of taking care of Missouri’s natural resources.

Current trends

Battery

• Battery technology requires:• Vanadium-zinc-cerium-bromine-lead-nickel-lithium-cobalt• Copper-indium-gallium-selenium• Cadmium-tellurium

• Upstream issues?• Economic opportunity?

• Water?

Celebrating 40 years of taking care of Missouri’s natural resources.

Current trends

Geothermal

• Geologic/geographic restriction• Uniqueness of the resource• Not scalable• Induced seismicity

• Ground Source Heat Exchange

• Upstream issues?• Economic opportunity?

• Water?

Celebrating 40 years of taking care of Missouri’s natural resources.

Missouri operations• Currently 23 oil and gas operators in Missouri• Energy prices and demand will drive E/P• Technology breakthroughs could lead to substantial increases• Missouri oil and gas operators:

• no oil and gas permit fees• not required to pay full cost well closure bonding• pay no oversight/regulatory expenses to the State • pay no severance taxes• no regulation addressing hydraulic fracturing

• Regulatory?• Economic opportunity?

• State Energy Plan?

Celebrating 40 years of taking care of Missouri’s natural resources.

City Utilities- JTEC

DSI work plan meeting – June 18

The Rocks Matter

• Earth resources are essential to energy sources of all types.– The supply chain is long and global – and the public is

generally shielded from thinking about it– Legacy issues – past, present, future– Influence on other elements: water, landscapes, food,

environmental health, climate, jobs, public health– Hazards and risks: Real? Perceived?

Celebrating 40 years of taking care of Missouri’s natural resources.

Energy Supply

Natural Resources

Extraction

Eco-systems

Climate

Water

Economy

Public Health

Security

Celebrating 40 years of taking care of Missouri’s natural resources.

Thank You

[email protected]