Anadarko CEO Jim Hackett spoke to students at Southern Methodist University about how our nations low-carbon future and economy rests on abundant, clean, American natural gas. His speech is part of the prestigious Frank Pitts Lecture Series at the Maguire Energy Institute.
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Natural Gas: A Conventional Fuel as an Unconventional Answer
1. A Conventional Fuel as an
Unconventional Answer
Jim Hackett Chairman, President and CEO
January 14, 2010
3. NATURAL GAS: AN ABUNDANT RESOURCE
TOTAL POTENTIAL RESOURCES (VALUES, TCF)
2,074.1
COALBED GAS RESOURCES TCF OF FUTURE
TRADITIONAL GAS RESOURCES
NAT GAS SUPPLY
SHALE GAS (615.9 TCF)
58%
INCREASE IN
THE PAST 4 YEARS
1,836.4 Tcf
INCREASE IN
THE PAST 4 YEARS
237.7 Tcf
PROVED RESERVES
POTENTIAL GAS COMMITTEE REPORT, JUNE 2009
January 14, 2010 3
4. UNCONVENTIONAL GAS: A GAME CHANGER
UNCONVENTIONAL
INCLUDES NATURAL GAS FROM SHALE FORMATIONS,
COAL SEAMS AND TIGHT SAND
TCF / YEAR
January 14, 2010 4
6. NATURAL GAS PRODUCING STATES
32 OF 50
STATES HAVE
PRODUCTION
85%
SUPPLY
FROM U.S.
97%
SUPPLY FROM
NO. AMERICA
U.S. ENERGY INFORMATION ADMINISTRATION
January 14, 2010 6
7. SHALE PLAYS IN NORTH AMERICA
Horn River
Montney
Deep Basin Colorado Group
Bakken
Cody
Utica
Gammon
Mowry Antrim
Baxter/Mancos
Baxter/Mancos
Niobrara
Niobrara Marcellus/Ohio/Huron
Marcellus/Ohio/Huron
Mancos
Mancos New
Mulky Albany
Lewis Pierre
Woodford Fayetteville
Fayetteville
Barnett/Woodford
Floyd-Neal
Haynesville
Haynesville
Barnett
Eagleford/Pearsall
January 14, 2010 7
9. NATURAL GAS IS CLEANER
VIABLE
WIND / SOLAR NATURAL GAS RENEWABLE
ENERGY MIX
January 14, 2010 9
10. NATURAL GAS IS CLEANER
TYPICAL EMISSIONS FOR COAL-FIRED, OIL-FIRED, AND NATURAL GAS GENERATING PLANTS
(POUNDS PER MEGAWATT-HOUR)
U.S. ENERGY INFORMATION ADMINISTRATION, NATURAL GAS ISSUES AND TRENDS, 1998. COMPUTED USING EIA
DATE BASED ON THE FOLLOWING CONDITIONS: A. COMBINED CYCLE (GAS/STEAM TURBINE PLANT) HEAT RATE OF
6,500 BTU/KW-HOUR (THERMAL EFFICIENCY=52.2%)
B. SIMPLE CYCLE (GAS TURBINE PLANT) HEAT RATE OF 9,750 BTU/KW-HOUR (THERMAL EFFICIENCY=35.0%)
January 14, 2010 10
11. WE NEED MORE NATURAL GAS VEHICLES (NGVs)
January 14, 2010 11
12. THE NGV OPPORTUNITY
The transportation sector accounts for 30% of U.S.
CO2 emissions.
Converting one heavy-duty truck from diesel to
natural gas is the pollution-reduction equivalent of
removing 325 cars from the road.
There are more than 10 million NGVs worldwide,
with only about 120,000 in the U.S. ranking us 12th
in the world.
January 14, 2010 12
16. NATURAL GAS STRENGTHENS THE U.S. ECONOMY
2.8 MILLION
2008 TOTAL
EMPLOYMENT
2.6 MILLION
2007 TOTAL
EMPLOYMENT
2.4 MILLION
2006 TOTAL
EMPLOYMENT
January 14, 2010 16
18. WE NEED A DIVERSIFIED ENERGY PORTFOLIO
PRIMARY ENERGY CONSUMPTION BY SOURCE & SECTOR, 2008
(Quadrillion Btu)
SUPPLY
SOURCES 37.1 23.8 22.5 7.3 8.5
PETROLEUM NATURAL GAS COAL RENEWABLE ENERGY NUCLEAR
(Including hydro ~5%)
% OF SOURCE
% OF SECTOR
DEMAND
SECTORS
27.8 20.6 10.8 40.1
TRANSPORTATION INDUSTRIAL RESIDENTIAL ELECTRIC
& COMMERCIAL POWER
ENERGY INFORMATION ADMINISTRATION, ANNUAL ENERGY REVIEW, 2008
January 14, 2010 18
19. WE NEED CLEANER ELECTRICITY GENERATION
1.6
Total 4,157 Billion kWh
Electric Utility Plants 60.2%
Independent Power
Producers and Combined
Heat & Power Plants 39.8%
January 14, 2010 19
20. WE NEED TO SWITCH TODAY
22.8% 68.5%
January 14, 2010 20
21. WE NEED CONSTRUCTIVE LEGISLATION
32
GOVERNORS
64
SENATORS
324
MEMBERS OF
CONGRESS
U.S. ENERGY INFORMATION ADMINISTRATION
January 14, 2010 21
22. A Conventional Fuel as an
Unconventional Answer for Climate
Change and National Security
January 14, 2010