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Wyomings Economic Future Planning for Sustained Prosperity.ppt

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Wyomings Economic Future Planning for Sustained Prosperity.ppt Powered By Docstoc
					  Wyoming’s Economic Future:
Planning for Sustained Prosperity
“Wyoming‟s economic strength lies in
items highly sought after by the people of
this nation. First is our commodity
production, including minerals and
agriculture. This commodity production
constitutes our most significant economic
engine.”

Governor Freudenthal‟s 2005 Address to the Legislature
  Today’s Energy Economy:
This is Not Your Father’s Boom
                        Average Price $




              0.5
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                                  2.5
                                            3.5
                                                      4.5




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     91
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     92
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     95
                                                               1985 - 2004




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     96
19
                                                            WYOMING GAS PRICE




     97
19
     98
19
     99
20
     00
20
     01
20
     02
20
     03
20
     04
                     Average Price $




        0
            5
                10
                        15
                              20
                                       25
                                            30
                                                 35
19
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   92
19
   93
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   94
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   95
                                                         1985 - 2004




19
   96
                                                      WYOMING OIL PRICE




19
   97
19
   98
19
   99
20
   00
20
   01
20
   02
20
   03
20
   04
    POTENTIAL WYOMING GAS PRODUCTION
     1950-2003 WITH PROJECTIONS TO 2035
B
I
L   4400
L   4000
I
    3600
O
N   3200
    2800
C   2400
U   2000
B   1600
I   1200
C
     800
     400
F
E      0
E      1950   1960   1970   1980   1990   2000   2010   2020   2030
T
                                   YEAR
WYOMING NATURAL GAS PRICES (1950-2003)
      WITH PROJECTIONS TO 2035
D
O
  $12.00
L
L $10.00
A
R $8.00
S                                                  .   Actual, 2005


P $6.00
E
R   $4.00

    $2.00
M
C
F   $0.00
         1950   1960   1970   1980   1990   2000       2010     2020   2030

                                     YEAR
      WYOMING OIL PRODUCTION (1950-2003)
      WITH POTENTIAL PROJECTIONS TO 2035

M
    180
I
L   160
L   140
I
O   120
N   100
                                                OTHER EOR PROJECTS
    80
B                                        MONELL CO2 SALT CREEK CO2
A   60
R   40
R
E   20
L    0
S
      1950   1960   1970   1980   1990   2000   2010   2020   2030

                                    YEAR
             WYOMING OIL PRICES (1950-2003)
              WITH PROJECTIONS TO 2035

D   $80.00
O
L   $70.00
L
A
    $60.00                                         .   Actual, 2005
R   $50.00
S
    $40.00
P
E $30.00
R $20.00
B
  $10.00
B
L  $0.00
        1950    1960   1970   1980   1990   2000       2010     2020   2030

                                     YEAR
 Wyoming Annual Coal Production Actual 1995 to 2003
       and Projected for Period 2004 to 2035

                                                                Uinta County Power Project
                    600
                                                 Eastern GRRB Power Complex                                                           FutureGen “Type” Projects
                                       Medicine Bow Clean Coal Project
                    500
                                      Diesel from Coal Projects
                                    Enhanced Coal Projects                                                   DM&E Build-in Additional Steam Base
Million tons/year




                    400



                    300



                    200
                                                                                       Utility Steam Base


                    100



                       0
                       95

                               97


                                        99

                                                01

                                                        03

                                                                05


                                                                        07

                                                                                09

                                                                                        11

                                                                                                13


                                                                                                        15

                                                                                                                17

                                                                                                                        19

                                                                                                                                21


                                                                                                                                        23

                                                                                                                                                25

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                    19

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                                                                                                                                     20

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                                                                                                                                                     20

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                                                                                                                                                                     20

                                                                                                                                                                             20

                                                                                                                                                                                     20
                                                                                                     Year
Wyoming Coal Prices Actual 1995 to 2003
   and Projected from 2004 to 2035
$16.00


$14.00


$12.00


$10.00
                   Quoted, 2007

                                  . .                                                                           Price/ton


                                  .
                Quoted, 2006
 $8.00
                Quoted, 2005


 $6.00


 $4.00
         1995
                  1998

                         2001
                                2004
                                       2007
                                              2010
                                                     2013
                                                            2016
                                                                   2019
                                                                          2022
                                                                                 2025
                                                                                        2028
                                                                                               2031
                                                                                                      2034
                                                                   Projected prices in constant 2005 dollars.
Global Market Demand:
   China and India
                            Thousand Bbls/Day




              1000
                     2000
                               3000
                                       4000
                                                5000
                                                       6000
                                                              7000




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     95
                                                                              1985 - 2004




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19
     97
                                                                     China Petroleum Consumption




19
     98
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20
     00
20
     01
20
     02
20
     03
20
     04
                                               CHINA PETROLEUM CONSUMPTION vs WYOMING OIL PRICE

                  35                                                                                                                                                                   7000




                  30                                                                                                                                                                   6000




                  25                                                                                                                                                                   5000




                                                                                                                                                                                              Thousand bbls/day
Avg Oil Price $




                  20                                                                                                                                                                   4000




                  15                                                                                                                                                                   3000




                  10                                                                                                                                                                   2000




                  5                                                                                                                                                                    1000




                  0                                                                                                                                                                    0
                          85


                                  86


                                          87


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                                                                                       WYOMING                 CHINA
                                                                                       Avg Oil Price           Consumption
      Domestic Gas Demand
• Projected 7.5 Tcf growth in North America
  (2004-2014)

• Projected 5.9 Tcf growth in USA (2004-
  2014)
     Domestic Gas Demand
• Significant Demand Growth Fueled by
  Electric Generation
New Electric Generation Capacity
  Market Supply: Wyoming’s Role
• Inevitable Import Disruptions: Middle East,
  Nigeria, Venezuela
• Declining Mid-Continent, Gulf of Mexico and
  Canadian Natural Gas Supply
• Wyoming located in Natural Gas “Production
  Alley” = North American Rockies
• 200 trillion cubic feet natural gas reserves – 10-
  year domestic supply
• 250 years coal reserves
      Ongoing Advancement: Natural Gas

• New Technologies:           • The benefits:
• Directional/horizontal      • Gas Production from
  drilling
                                tight gas sands
• Under-balanced mud
  drilling programs           • Increased recovery
• Drilling with non aqueous     factors (i.e. 70 to 80%
  fluids                        recovery)
• Multiple limited entry      • Rediscovery of By-
  fracing strategies            passed gas
• Improved fracing fluids       accumulations
• Improved logging tools
• Advanced reservoir
  descriptions and
  management techniques
           Ongoing Advancement: Oil

• New Technologies:           • The Benefits:
• Application of tertiary     • Increased recovery of
  recovery techniques           residual oil (i.e. CO2
• Improved secondary            flooding)
  recovery techniques         • Revitalization of mature
• Directional/horizontal        oil fields (i.e. reaching
  drilling                      previously inaccessible
• Formation damage              portions of the fields)
  remediation
• New reservoir description
  and management
  strategies
           Ongoing Advancement: Coal

• New Technologies:            • The Benefits:
• Improved coal                • Significant increases in
  liquefication/gasification     production capacity
  technologies                 • Substantial increase in
• Improved reclamation           environmental mitigation
  techniques                   • Huge potential for
• New mining equipment           generation of synfuels
  development (i.e. haulage
  capacity)
• Improved mine
  layout/design
     Policy & Technological Advancement:
    Wyoming is Well Positioned for the Future

•   Shale Oil
•   Uranium
•   Wind Power
•   Solar Power
 Long-Term Private Investment
• New Projects
  – Anadarko’s $200 million Enhanced Oil Recovery
    Project / Salt Creek Field
  – BP America’s Wamsutter Base Camp
  – Workforce Training Centers
• New Service Facilities
  – Halliburton
  – Schlumberger
• Higher than Projected Federal & State Lease
  Bonus Bids
  – Oil & Gas
  – Coal
 Planning for Long-Term Needs
• Workforce Development
• Community Infrastructure: transportation,
  housing, hospitals, schools, law
  enforcement
• New and/or improved electric transmission
• Air quality capacity
• New/improved rail capacity
• Maintenance and additional gas pipeline
  capacity
“In the words of Franklin Delano
Roosevelt, „The only limit to the realization
of tomorrow is our doubts about today.‟
Let us demolish those doubts, ignore the
politics of partisanship and credit, and get
about the work our kids and grandkids
deserve.”

Governor Freudenthal‟s 2005 Address to the Legislature
                    DATA SOURCES
• Wyoming State Geological Survey
   – Ron Surdam, State Geologist
   – www.wsgs.uwyo.edu
• Wyoming Oil & Gas Conservation Commission
   – Don Likwartz, Supervisor
   – http://wogcc.state.wy.us/
• Wyoming Natural Gas Pipeline Authority
   – Bryan Hassler, Director
   – www.wyopipeline.com
• Enhanced Oil Recovery Institute
   – Jim Steidtmann, Director
   – http://uwadmnweb.uwyo.edu/EORCOMMISSION/

				
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