LearningZenenergyacademy.learningzen.com/ · Web viewThe terminal has exported LNG to Japan almost continuously since beginning operations in 1969. What Is LNG? Liquefied natural

Information Courtesy of the U.S. Energy Information Administration www.eia.doe.gov/energyexplained

Non Renewable Energy Sources Continued (Part 2 of 2)

Coal

Coal Takes Millions of Years To CreateCoal is a combustible black or brownish-black sedimentary rock composed mostly of carbon and hydrocarbons. It is the most abundant fossil fuel produced in the United States.

Coal is a nonrenewable energy source because it takes millions of years to create. The energy in coal comes from the energy stored by plants that lived hundreds of millions of years ago, when the Earth was partly covered with swampy forests.

For millions of years, a layer of dead plants at the bottom of the swamps was covered by layers of water and dirt, trapping the energy of the dead plants. The heat and pressure from the top layers helped the plant remains turn into what we today call coal.

Source: National Energy Education Development Project (Public Domain)

Types of CoalCoal is classified into four main types, or ranks (anthracite, bituminous, subbituminous, and lignite), depending on the amounts and types of carbon it contains and on the amount of heat energy it can produce. The rank of a deposit of coal depends on the pressure and heat acting on the plant debris as it sank deeper and deeper over millions of years. For the most part, the higher ranks of coal contain more heat-producing energy.

Anthracite contains 86-97% carbon, and generally has a heating value slightly higher than bituminous coal. It accounts for less than 0.5% of the coal mined in the United States.

All of the anthracite mines in the United States are located in northeastern Pennsylvania.

Bituminous coal contains 45-86% carbon. Bituminous coal was formed under high heat and pressure. Bituminous coal in the United States is between 100 to 300 million years old. It is the most abundant rank

of coal found in the United States, accounting for about half of U.S. coal production. Bituminous coal is used to generate electricity and is an important fuel and raw material for the steel and iron industries.

West Virginia, Kentucky, and Pennsylvania are the largest producers of bituminous coal.

Subbituminous coal has a lower heating value than bituminous coal. Subbituminous coal typically contains 35-45% carbon. Most subbituminous coal in the United States is at least 100 million years old. About 46% of the coal produced in the United States is subbituminous.

Wyoming is the leading source of subbituminous coal.

Lignite is the lowest rank of coal with the lowest energy content. Lignite coal deposits tend to be relatively young coal deposits that were not subjected to extreme heat or pressure, containing 25%-35% carbon. Lignite is crumbly and has high moisture content. There are 19 lignite mines in the United States, producing about 7% of U.S. coal.

Most lignite is mined in Texas and North Dakota. Lignite is mainly burned at power plants to generate electricity.

Mining the CoalDiagram of Surface Mining

Source: National Energy Education Development Project

A Typical Deep Mine

Source: Adapted from National Energy Education Development Project

Coal Being Transported by Rail

Source: Stock photography (copyrighted)

Coal miners use giant machines to remove coal from the ground. They use two methods: surface or underground mining. Many U.S. coal beds are very near the ground's surface, and about two-thirds of coal production comes from surface mines. Modern mining methods allow us to easily reach most of our coal reserves. Due to growth in surface mining and improved mining technology, the amount of coal produced by one miner in one hour has more than tripled since 1978.

Surface mining (including mountain top removal) is used to produce most of the coal in the United States because it is less expensive than underground mining. Surface mining can be used when the coal is buried less than 200 feet underground.

In surface mining, giant machines remove the top soil and layers of rock known as "overburden" to expose the coal seam. Once the mining is finished, the dirt and rock are returned to the pit, the topsoil is replaced, and the area is replanted.

Underground mining, sometimes called deep mining, is used when the coal is buried several hundred feet below the surface. Some underground mines are 1,000 feet deep. To remove coal in these underground mines, miners ride elevators down deep mine shafts where they run machines that dig out the coal.

Processing the CoalAfter coal comes out of the ground, it typically goes on a conveyor belt to a preparation plant that is located at the mining site. The plant cleans and processes coal to remove other rocks and dirt, ash, sulfur, and unwanted materials, increasing the heating value of the coal.

Transporting the CoalAfter coal is mined and processed, it is ready to be shipped to market. The cost of shipping coal can cost more than the cost of mining it.

About 71% of coal in the United States is transported, for at least part of its trip to market, by train. Coal can also be transported by barge, ship, truck, and even pipeline.

It is often cheaper to transport coal on river barges, but barges cannot take coal everywhere that it needs to go. If the coal will be used near the coal mine, it can be moved by trucks and conveyors. Coal can also be crushed, mixed with water, and sent through a "slurry" pipeline. Sometimes, coal-fired electric power plants are built near coal mines to lower transportation costs.

Where We Get CoalCoal production is the amount of coal that is mined and sent to market. In 2009, the amount of coal produced at U.S. coal mines was 1,072.8 million short tons. Coal is mined in 26 States. Wyoming mines the most coal, followed by West Virginia, Kentucky, Pennsylvania, and Montana.

Click to enlarge »Coal is mainly found in three large regions, the Appalachian Coal Region, the Interior Coal Region, and Western Coal Region (includes the Powder River Basin).

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Coal Production by Coal-Producing Region, 2009Total: 1,072.8 Million Short Tons

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Source: U.S. Energy Information Administration, Quarterly Coal Report (April 2010)

Appalachian Coal Region:

• More than one-third of the coal produced in the United States • comes from the Appalachian Coal Region.• West Virginia is the largest coal-producing State in the region, • and the second largest coal-producing State in the United • States.• This region has large underground mines and small surface • mines.• Coal mined in the Appalachian coal region is primarily used for • steam generation for electricity, metal production, and for • export.

Interior Coal Region:

• Texas is the largest coal producer in the Interior Coal Region, • accounting for almost one-third of the region's coal production.• This region has mid-sized surface mines

Western Coal Region:

• Over half of the coal produced in the United States is produced in the Western Coal Region.• Wyoming is the largest regional coal producer, as well as the largest coal-producing State in the Nation.• This region has many large surface mines.• Some of the largest coal mines in the world are in the Western Coal Region.

U.S. Coal Exports

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Data for this figure

U.S. Coal Production, Consumption, and Exports

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Source: U.S. Energy Information Administration, Energy Perspectives, Figure 38: Coal Overview (August 2010).

Data for this figure

Because coal is heavy, bulky, and relatively cheap, historically it has not been shipped great distances. However, some of the coal produced in the United States is sold abroad. In 2009, of the 1,073 million short tons of coal produced in the United States, about 5.5% was exported.

The top five destination countries for exported U.S. coal in 2009 were:

1. Canada (18% of exports) 2. Brazil (13%)

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3. Netherlands (10%) 4. United Kingdom (8%) 5. France (6%)

U.S. Coal ImportsAlthough the United States produces a large amount of coal, customers along the Gulf Coast or the Atlantic Ocean sometimes find it less costly to import coal by sea than to have it sent by rail or barge from the coal-producing regions of the United States.

Of the 1,000 million short tons of coal consumed in the United States in 2009, about 23 million short tons were imported from abroad, which was 2% of total consumption. U.S. coal exports were significantly lower in 2009 than 2008, while coal imports decreased significantly. U.S. imports of coal were less than half the level of our exports in 2009.

The top five source countries for coal imported to the United States in 2009 were:

1. Colombia (79% of imports) 2. Indonesia (9%) 3. Venezuela (6%) 4. Canada (6%) 5. Australia (less than 1%)

There are several measures of how much coal is left, based on various degrees of geologic certainty and economic feasibility. Published data range from how much is left at currently producing mines to total coal resources, which is an estimate of how much coal is likely to exist, both currently known and that which is postulated based on geological principles. The major measures are described below.

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Did You Know?As the easier-to-mine coal is used up, the remaining coal reserves will be harder to mine.In the past, advancements in mining technologies have tended to compensate for these impacts, so that mining costs have typically not increased despite the progression to more difficult to mine coal deposits.

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Coal Reserves at Producing MinesEach year the U.S. Energy Information Administration (EIA) obtains the amount of “recoverable reserves at active mines” from its annual Coal Production and Preparation survey. These are the amounts of coal that can be recovered from reserves at active U.S. coal mines that produced at least 10,000 short tons of coal during the reporting year.

As of January 1, 2009, the recoverable reserves at producing mines were 17.9 billion short tons. (One short ton is 2,000 pounds.)

The amount of coal reserves at producing mines, however, is a small part of the total amount of coal that exists in the United States.

So How Much Coal Is There?It is impossible to know exactly how much coal there is, because it is buried underground. But we can make estimates.

"Total resources" is our best estimate of the total amount of coal, including undiscovered in the United States. Currently, total resources are estimated to be about 4 trillion short tons.1 Total Resources includes several categories of coal with various degrees of geologic assurance and data reliability.

But not all coal is feasible to mine. The Demonstrated Reserve Base2 is the sum of coal in both measured and indicated resource categories of reliability, representing 100% of the in-place coal that could be mined commercially at a given time. EIA estimates the Demonstrated Reserve Base to measure 489 billion short tons.

"Estimated Recoverable Reserves" include only the coal that can be mined with today’s mining technology, after accessibility constraints and recovery factors are considered. EIA estimates there are 263 billion short tons of U.S. recoverable coal reserves, about 54% of the Demonstrated Reserve Base.

Based on U.S. coal consumption for 2008, the U.S. recoverable coal reserves represent enough coal to last 234 years. However, EIA projects in the most recent Annual Energy Outlook (April 2009) that U.S. coal consumption will increase at about 0.6% per year for the period 2007-2030. If that growth rate continues into the future, U.S. recoverable coal reserves would be exhausted in about 146 years if no new reserves are added.

There Are Different Types of CoalThere are four major ranks (types) of coal. In the United States, coal rank is classified according to its heating value, its fixed carbon and volatile matter content, and, to some extent, its caking properties during combustion. The coal ranks from highest to lowest in heating value are:

Anthracite Bituminous Subbituminous Lignite

Types of Coal in the Demonstrated Reserve Base

Of the four ranks, bituminous coal accounts for over half (53%) of the Demonstrated Reserve Base. Bituminous coal is concentrated primarily east of the Mississippi River, with the greatest amounts in Illinois, Kentucky, and West Virginia.

All subbituminous coal (37% of the reserve base) is west of the Mississippi River, mostly in Montana and Wyoming.

Lignite, the lowest-rank coal, accounts for about 9% of the reserve base. Lignite is found mostly in Montana, Texas, and North Dakota.

Anthracite, the highest-rank coal, makes up only 1.5% of the reserve base. Anthracite is concentrated almost entirely in northeastern Pennsylvania.

U.S. Coal Resources

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Source: U.S. Energy Information Administration,

What Are International Coal Resources?Worldwide, compared to all other fossil fuels, coal is the most abundant and is widely distributed across the continents. The estimate for the world's total recoverable reserves of coal as of January 1, 2006 was 930 billion short tons. The resulting ratio of coal reserves to consumption is approximately 138 years, meaning that at current rates of consumption, current coal reserves could last that long.

The Distribution of World Coal Reserves Varies From That of Oil and GasSignificant coal reserves are found in the United States and Russia, but not in the Middle East. In fact, the United States and Russia account for nearly half of global coal reserves as shown in the table below. In contrast, oil reserves are predominantly found in the Middle East and Canada, while Russia, Iran, and Qatar own more than half of the world’s natural gas reserves.

Did You Know?A pound of coal supplies enough electricity to power ten 100-watt light bulbs for about an hour.

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Blast Furnace in a Modern Steel Works

Almost 94% of the coal used in the United States is used for generating electricity. Except for a small amount of exports, the rest of the coal is used as a basic energy source in many industries including steel, cement, and paper. The major uses of coal are:

For Electric PowerCoal is used to create almost half of all electricity generated in the United States. Power plants burn coal to make steam. The steam turns turbines (machines for generating rotary mechanical power) that generate electricity.

In addition to companies in the electric power sector, industries and businesses with their own power plants use coal to generate electricity.

For IndustryA variety of industries use coal's heat and by-products. Separated ingredients of coal (such as methanol and ethylene) are used in making plastics, tar, synthetic fibers, fertilizers, and medicines.

Coal is also used to make steel. Coal is baked in hot furnaces to make coke, which is used to smelt iron ore into iron needed for making steel. It is the very high temperatures created from the use of coke that gives steel the strength and flexibility for things like bridges, buildings, and automobiles.

The concrete and paper industries also use large amounts of coal.

Types of CoalLignite is the lowest rank of coal with the lowest energy content. Lignite is crumbly and has high moisture content. Lignite accounts for about 7% of U.S. coal production.Subbituminous coal has a higher heating value than lignite. Subbituminous coal typically contains 35-45% carbon, compared to 25-35% for lignite. About 44% of the coal produced in the United States is subbituminous.Bituminous coal contains 45-86% carbon and has two to three times the heating value of lignite. Bituminous coal was formed under high heat and pressure It is the most abundant rank of coal found in the United States, accounting for about half of U.S. coal production.Anthracite contains 86-97% carbon and has a heating value that is, on average, slightly higher than bituminous coal. It is very rare in the United States, accounting for less than 0.5% of the coal mined in the United States.

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Data for this figure (.xls).

Pouring Molten Metal While Casting Iron

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The price of coal varies by coal rank, mining method, geographic region, and coal quality.

Coal is classified into four main types, or ranks (lignite, subbituminous, bituminous, anthracite), depending on the amounts and types of carbon it contains and on the amount of heat energy it can produce. Coals with a high heat content are generally higher priced.

In 2008 the average open market price of coal at mines producing each of the four major ranks of coal:

Lignite: $16.50 per ton Subbituminous: $12.31 per ton Bituminous: $51.40 per ton Anthracite: $60.76 per ton

Surface-mined coal is generally lower-priced than underground-mined coal. Where coal beds are thick and near the surface, as in Wyoming, mining costs and, therefore, coal prices tend to be lower than where the beds are thinner and deeper, as in Appalachia. The higher cost of coal from underground mines reflects in part the more difficult mining conditions and the need for more miners.

When coal is burned, it releases impurities including sulfur which can combine with oxygen to form sulfur dioxide (SO2), a chemical that can harm forests and lakes when it combines with moisture in the atmosphere to produce acid rain. Because of environmental regulations limiting sulfur emissions, low-sulfur coals can command a higher price than high-sulfur coals.

Transportation Costs Can be SignificantOnce coal is mined, it must be moved to where it will be consumed. Transportation costs add significantly to the delivered price of coal. In some cases, as in long-distance shipments of Wyoming coal to power plants in the East, transportation costs can be more than the price of coal at the mine.

Most coal is transported by train, barge, truck or a combination of these methods. All of these transportation methods use diesel fuel and so increases in oil prices can significantly affect the cost of transportation and, in turn, the final delivered price of coal.

In 2008 the average sales of coal at the mine was $31.26 per ton and the average delivered price to electric utility power plants was $41.23 per ton, roughly implying a transportation cost of $9.97 per ton, or 24% of the total delivered price.

Most Coal Is Purchased for Power PlantsOver 90% of the coal consumed in the United States is used to generate electricity. The electricity produced from that coal accounts for almost half of all of our electricity.

Since 1976, coal has been the least expensive fossil fuel used to generate electricity when measured based on the cost per Btu (a unit of energy content). Although the cost of generating electricity from coal has increased, it is still lower than generating electricity from either natural gas or petroleum in most areas.

The Price of Coal Can Depend on the Type of TransactionThe majority of coal sold for electric power generation is through long-term contracts, in conjunction with spot purchases to supplement the demand. A "spot purchase" is a single shipment of fuel or multiple shipments purchased for delivery within one year. Spot prices can fluctuate based on short-term market conditions, while contract prices tend to be more stable.

In 2008 about 90% of coal for the electric power industry was bought under long-term contracts and only about 10% on the spot market. In 2008 the average delivered price of coal to power plants was $38.73 per ton for coal sold under contracts and $63.64 for spot purchases.

A More Expensive Coal Is Used To Make Iron and SteelIn addition to producing electricity, coal is also used to produce coke, which is used in smelting iron ore to make steel.

Coke is made by baking certain types of coal in special high-temperature ovens without contact with air until almost all of the impurities are driven off as gases. The resulting product, coke, consists principally of carbon. Coal used to make coke must be low in sulfur and requires more thorough cleaning than coal used in power plants and so is priced higher.

In 2008, the delivered price of coal used to make coke was $118.09 per ton –– more than twice as much as the price of coal delivered to power plants.

The Outlook for Coal PricesThe average delivered price of coal to the electric power sector averaged $2.22 per million Btu in 2009, a 7% increase compared with the 2008 average price, despite decreases in spot coal prices, lower prices for other fossil fuels, and declines in demand for coal for electricity generation. This higher cost of delivered coal is due to the significant portion of longer-term power-sector coal contracts that were initiated during a period of high prices for all fuels. The delivered price is projected to fall by 7% to average $2.06 per million Btu in 2010, and to decline by an additional 2% in 2011.

Environmental laws and modern technologies have greatly reduced the impact on the environment from the production and consumption of coal.

What Are Some Environmental Concerns In Coal Mining?Without proper care, mining can have a negative impact on ecosystems and water quality and alter landscapes and scenic views. Debris that chokes mountain streams can result from surface mining like mountaintop removal, and acidic water can drain from abandoned underground mines.

Today restoring the land damaged by surface mining is an important part of the mining process. Because mining activities often come into contact with water resources, coal producers must also go to great efforts to prevent damage to ground and surface waters.

Did You Know?Fly ash and bottom ash are residues created when coal is burned. In the past, fly ash was released into the air through the smokestack, but by law much of it now must be captured prior to release. In the United States, fly ash is generally stored at coal power plants or placed in landfills. Nearly half is recycled for use in cement production or as a raw material for other products including road construction materials.

What Emissions and Byproducts Are Produced from Burning Coal?The combustion of coal produces several types of emissions that adversely affect the environment. The five principal emissions associated with coal consumption in the energy sector are:

Sulfur dioxide (SO2), which has been linked to acid rain and increased incidence of respiratory illnesses

Nitrogen oxides (NOx), which have been linked to the formation of acid rain and photochemical smog

Particulates, which have been linked to the formation of acid rain and increased incidence of respiratory illnesses

Carbon dioxide (CO2), which is the primary greenhouse gas emission from energy use. Mercury, which has been linked with both neurological and developmental damage in

humans and other animals. Mercury concentrations in the air usually are low and of little direct concern. However, when mercury enters water — either directly or through deposition from the air — biological processes transform it into methylmercury, a highly toxic chemical that accumulates in fish and the animals (including humans) that eat fish.

How Are the Environmental Effects of Coal Use Diminished?The Clean Air Act and the Clean Water Act require industries to reduce pollutants released into the air and the water.

Industry has found several ways to reduce sulfur, nitrogen oxides (NOx), and other impurities from coal. They have found more effective ways of cleaning coal after it is mined, and coal consumers have shifted towards greater use of low sulfur coal.

Power plants use flue gas desulfurization equipment, also known as "scrubbers," to clean sulfur from the smoke before it leaves their smokestacks. In addition, industry and government have cooperated to develop technologies that can remove impurities from coal or that make coal more energy-efficient so less needs to be burned.

Equipment intended mainly to reduce SO2 (such as scrubbers), NOx (such as catalytic converters), and particulate matter (such as electrostatic precipitators and baghouses) is also able to reduce mercury emissions from some types of coal. Scientists are also working on new ways to reduce mercury emissions from coal-burning power plants.

Research is underway to address emissions of carbon dioxide from coal combustion. Carbon capture separates CO2 from emissions sources and recovers it in a concentrated stream. The CO2 can then be sequestered, which puts CO2 into storage, possibly underground, in such a way that it will remain there permanently.

Reuse and recycling can also diminish coal’s environmental impact. Land that was previously used for coal mining can be reclaimed for uses like airports, landfills, and golf courses. Waste products can also be captured by scrubbers to produce synthetic gypsum for wallboard.

Major Components of a Coal-fired Power Plant with Carbon Capture

Source: National Mining Association

The sun is basically a giant ball of hydrogen gas undergoing fusion into helium gas and giving off vast amounts of energy in the process.

Source: NASA

Did You Know?

All nuclear power in the United States is used to generate electricity.

How Fission Splits the Uranium Atom

Source: National Energy Education Development Project

Nuclear

Nuclear Energy Is Energy from AtomsNuclear energy is energy in the nucleus (core) of an atom. Atoms are tiny particles that make up every object in the universe. There is enormous energy in the bonds that hold atoms together.

Nuclear energy can be used to make electricity. But first the energy must be released. It can be released from atoms in two ways: nuclear fusion and nuclear fission.

In nuclear fission, atoms are split apart to form smaller atoms, releasing energy. Nuclear power plants use this energy to produce electricity.

In nuclear fusion, energy is released when atoms are combined or fused together to form a larger atom. This is how the sun produces energy. Fusion is the subject of ongoing research, but it is not yet clear that it will ever be a commercially viable technology for electricity generation.

Nuclear Fuel — UraniumThe fuel most widely used by nuclear plants for nuclear fission is uranium. Uranium is nonrenewable, though it is a common metal found in rocks all over the world. Nuclear plants use a certain kind of uranium, referred to as U-235. This kind of uranium is used as fuel because its atoms are easily split apart. Though uranium is quite common, about 100 times more common than silver, U-235 is relatively rare.

Most U.S. uranium is mined in the Western United States. Once uranium is mined, the U-235 must be extracted and processed before it can be used as a fuel.

During nuclear fission, a small particle called a neutron hits the uranium atom and splits it, releasing a great amount of energy as heat and radiation. More neutrons are also released. These neutrons go on to bombard other uranium atoms, and the process repeats itself over and over again. This is called a chain reaction.

Nuclear Power Plants Generate About One-Fifth of U.S. ElectricityNuclear power accounted for about 20% of the total net electricity generated in the United States in 2008, about as much as the electricity used in California, Texas, and New York, the three States with the most people. In 2008, there were 66 nuclear power plants (composed of 104 licensed nuclear reactors) throughout the United States. Most of the reactors are east of the Mississippi. The last new reactor to enter commercial service in the United States was the Tennessee Valley Authority’s Watts Bar 1 in Tennessee in 1996.

In 2008, TVA resumed construction on Watts Bar 2, which was about 80% complete when its construction was stopped in 1988. It is now expected to be completed in 2012.

Nuclear reactors look like large concrete domes from the outside. Not all nuclear power plants have cooling towers.


By the end of February 2009, the Nuclear Regulatory Commission (NRC) had received applications for a total of 26 newly designed reactors. It is uncertain how many of these reactors will eventually be built, but the NRC estimates 42 months to complete the review of all the applications prior to a final decision. Construction typically requires another five to seven years for each reactor.

Nuclear Power Comes from FissionMost power plants, including nuclear plants, use heat to produce electricity. They rely on steam from heated water to spin large turbines, which generate electricity. Instead of burning fossil fuels to produce the steam, nuclear plants use heat given off during fission.

In nuclear fission, atoms are split apart to form smaller atoms, releasing energy. Fission takes place inside the reactor of a nuclear power plant. At the center of the reactor is the core, which contains the uranium fuel.

The uranium fuel is formed into ceramic pellets. The pellets are about the size of your fingertip, but each one produces roughly the same amount of energy as 150 gallons of oil. These energy-rich pellets are stacked end-to-end in 12-foot metal fuel rods. A bundle of fuel rods, sometimes hundreds, is called a fuel assembly. A reactor core contains many fuel assemblies.

The heat given off during fission in the reactor core is used to boil water into steam, which turns the turbine blades. As they turn, they drive generators that make electricity. Afterward, the steam is cooled back into water in a separate structure at the power plant called a cooling tower. The water can be used again and again.

Nuclear reactors use black ceramic material called uranium dioxide (UO2) as their fuel. The fuel is loaded into a reactor core, which, for a 1,000 Megawatt power station, is about 14 feet high and 12 feet in diameter. Nuclear power plant operators can generate enormous amounts of heat and electricity from the reactor core. In 2008, a little over 51 million pounds of uranium was loaded into the 104 commercial U.S. reactors. These reactors generated a record of just under 800 billion kilowatthours of electricity, about 20% of all U.S. electricity in 2009.

The nuclear fuel cycle for typical light-water reactors is shown in the figure. The cycle consists of "front end" steps that lead to the preparation of uranium for use in nuclear reactors and "back end" steps to safely manage, prepare, and dispose of the highly radioactive spent nuclear fuel. Chemical processing of the spent fuel material to recover the remaining portion of fissionable products for use in fresh fuel assemblies is technically feasible, although it is not permitted in the United States.

Nuclear Fuel Cycle

Source: Pennsylvania State University Radiation Science and Engineering Center

The Front End of the Nuclear Fuel Cycle

ExplorationThe nuclear fuel cycle starts with the exploration for uranium resources and the development of mines to extract the discovered ore. A variety of techniques are used to find uranium including airborne radiometric surveys, chemical sampling of groundwater and soils, and exploratory drilling to understand the underlying geology.

It is sometimes difficult to locate economic uranium resources because the ore occurrences are not usually continuous like coal seams, but rather they form discrete, concentrated deposits much like the specks in blue cheese. A mining company may drill many holes around a large deposit without finding it. Likewise, one drill hole may hit a single deposit, and yet not be able to confirm the existence of a larger deposit. Once such deposits are located, the mine developer usually follows up with more closely spaced "in fill" or development drilling to further characterize the deposit.

Uranium MiningOnce economic resources have been discovered, the next step in the fuel cycle is to mine the ore using eitherconventional (underground or open pit) mining techniques or unconventional techniques such as in-place solution mining or heap leaching, which use liquid solvents to dissolve and extract the ore.

Prior to 1980, most U.S. uranium was produced using open pit and underground mining techniques. Today, the majority of uranium is produced using solution mining techniques commonly called in-situ-leach (ISL) or in-situ-recovery (ISR).

Uranium MillingOnce the ore is extracted from the mine, it is then further refined into uranium concentrate at the mill. For vein-type deposits, a typical mill facility at an open pit or underground mine would crush, pulverize, and grind the ore into fine powder that would then be reacted with chemicals to separate the uranium from other minerals. The concentrated uranium product is typically a bright yellow or orange powder called "yellowcake" (U3O8) (see photo), and the waste stream from these operations is called "mill tailings."

In solution mines, the uranium is typically found as a coating on underground sand particles called conglomerates. For these deposits, the uranium is extracted by exposing the sand to a groundwater solution whose pH has been elevated slightly using natural chemicals such as oxygen, carbon dioxide, or caustic soda. The uranium dissolves into the water, which is retrieved and circulated through a resin bed at a facility (also called a mill) in order to extract and further concentrate the uranium into yellowcake. The clean water is then returned to the ground where the mining process is repeated.

Uranium ConversionThe next step in the nuclear fuel cycle involves the conversion of yellowcake into uranium hexafluoride (UF6) gas. This step is required because there are three forms (isotopes) of uranium that occur in nature: U-234, U-235, and U-238. The current U.S. nuclear reactor designs require a stronger concentration (enrichment) of the U-235 isotope in order to operate efficiently. To perform this atomic segregation, the uranium in yellowcake is first converted into a gaseous compound (UF6) from which the individual atoms can be sorted (see photo).

Uranium EnrichmentUranium Hexafluoride Crystals in a Glass Vial

Source: Argonne National Laboratory

The uranium hexafluoride gas coming from the converter facility is called "natural UF6" because the original concentrations of uranium isotopes are still unchanged. This gas is then sent to an enrichment plant where the isotope separation takes place. The United States currently has one operating enrichment plant, which uses a process called gaseous diffusion to separate the uranium isotopes. Because the smaller U-235 atoms travel slightly faster than the U-238 atoms, they tend to leak (diffuse) faster through the porous membrane walls, where they are collected and concentrated. The final product has about a 4% to 5% concentration of U-235 and is called "enriched UF6". It is sealed in canisters and allowed to cool and solidify before it is transported to the fuel assembly plant by train, truck, or barge.

Another enrichment technique is the gas centrifuge process, where UF6 gas is spun at high speed in a series of cylinders to separate 235UF6 and 238UF6 atoms based on their different atomic masses. New enrichment technologies currently being developed are atomic vapor laser isotope separation (AVLIS) and molecular laser isotope separation (MLIS). These laser-based enrichment processes can achieve higher initial enrichment (isotope separation) factors than the diffusion or centrifuge processes and are capable of operating at high material throughput rates.

Uranium Re-Conversion and Nuclear Fuel FabricationThe next step in the production of nuclear fuel takes place at one of the five U.S. fuel fabrication facilities. Here, the enriched UF6 gas is reacted to form a black uranium dioxide powder. The powder is then compressed and formed into the shape of small ceramic fuel pellets. The pellets are stacked and sealed into long metal tubes that are about 1 centimeter in diameter to form fuel rods. The fuel rods are then bundled together to make up a fuel assembly (see photo). Depending on the reactor type, there are about 179 to 264 fuel rods in each fuel assembly; and a typical reactor core holds 121 to 193 fuel assemblies.

At the ReactorA Nuclear Fuel Assembly

Source: Commissariat à l'Énergie Atomique

Following fabrication, the fuel assemblies are shipped by truck to the reactor sites where they are stored onsite in “fresh fuel” storage bins until needed by the reactor operators. At this stage, the uranium is only mildly radioactive and essentially all radiation is contained within the metal tubes. Consequently, the fresh fuel can be handled safely with bare hands and with no special precautions. Typically, about one third of the reactor core (40 to 90 fuel assemblies) is changed out every 12 to 24 months.

The reactor core itself is a cylindrical arrangement of the fuel bundles, about 12 feet in diameter and 14 feet high. It is encased in a several-inch-thick steel pressure vessel. The core has essentially no moving parts except for a small number of control rods that can be inserted to regulate the reaction. Merely placing the fuel assemblies next to each other and adding water is sufficient to initiate the nuclear reaction.

The Back End of the Nuclear Fuel Cycle

Interim StorageFollowing use in the reactor, the fuel assembly becomes highly radioactive and must be removed and stored under water in a spent fuel pool at the reactor for several years. Even though the fission reaction has stopped, the spent fuel continues to give off heat from the decay of radioactive elements that were

created when the uranium atoms were split apart. The water in the pool serves to both cool the fuel and shield the operators from any radiation. As of 2002, there were over 165,000 spent fuel assemblies stored in about 70 interim storage pools throughout the United States.

After cooling a few years in the pool, the spent fuel element may be moved to a dry cask storage container for further on-site storage. An increasing number of reactor operators now store their older spent fuel in these special outdoor concrete or steel containers with air cooling.

ReprocessingLess than 4% of the uranium loaded into the reactor is consumed in nuclear reactions. The rest of the uranium remains unchanged. Chemical processing of the spent fuel material to recover the remaining portion of fissionable products for use in fresh fuel assemblies is technically feasible. Some countries, such as France, reprocess spent nuclear fuel, but it is not permitted in the United States.

Final DisposalThe final step in the nuclear fuel cycle is the collection of spent fuel assemblies from the interim storage sites or future reprocessing facilities, and the disposal of any remaining high-level nuclear waste in a permanent underground repository. The United States currently has no such repository.

The fuel most widely used by nuclear plants for nuclear fission is uranium. In nuclear fission atoms are split apart to form smaller atoms, releasing energy. Nuclear power plants use the heat from nuclear fission to produce electricity.

Uranium Is Found in Nature but Must Be Processed into FuelUranium is nonrenewable, though it is a common metal found in rocks all over the world. Uranium occurs in nature in combination with small amounts of other elements.

Nuclear plants use a certain kind of uranium, U-235, as fuel because its atoms are easily split apart. Though uranium is quite common, about 100 times more common than silver, U-235 is relatively rare.

Economically recoverable uranium deposits have been discovered principally in the western United States, Australia, Canada, Africa, and South America. Once uranium is mined, the U-235 must be extracted and processed before it can be used as a fuel. Mined uranium ore typically yields one to four pounds of uranium concentrate (U3O8 or "yellowcake") per ton, or 0.05% to 0.20% U3O8. The Nuclear Fuel Cycle describes uranium processing in more detail.

Typical Conventional Uranium Mill

Source: U.S. Energy Information Administration, Office of Coal, Nuclear, Electric and Alternate Fuels (Public Domain)

Most of Our Uranium Is ImportedOwners and operators of U.S. civilian nuclear power reactors purchased the equivalent of 53 million pounds of uranium during 2008. Uranium delivered to U.S. reactors in 2008 came from six continents:

14% of delivered uranium came from the United States 86% of delivered uranium was of foreign-origin:o 42% was from Australia and Canada o 33% originated in Kazakhstan, Russia and Uzbekistan o 11% came from Brazil, Czech Republic, Namibia, Niger, South Africa, and the United Kingdom

Nuclear power provides about 20% of the U.S. electricity and about 8% of the total U.S. energy consumed from all sources.

In 2008, U.S. nuclear plants generated 796.7 billion kilowatthours from 104 commercial nuclear generating units; a 1% drop in annual nuclear generation from 806 billion kilowatthours in 2007.

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Did You Know?The last new reactor to come on-line in the United States was the Tennessee Valley Authority’s (TVA) Watts Bar 1 reactor in Tennessee, in February 1996. Nuclear expansion since 1996 has occurred through “uprating,” the practice of increasing capacity at existing power plants.

Nuclear Power Constitutes a Sizeable Portion of U.S. PowerThe top five States for nuclear generation of electricity in 2008 were:

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1. Illinois 2. Pennsylvania 3. South Carolina 4. New York 5. Texas

The Beginning of the U.S. Commercial Nuclear IndustryThe process of generating electricity has involved the burning of fossil fuels (coal, oil, and natural gas) since before the turn of the twentieth century. An experimental reactor used uranium to generate electricity in December 1951, but more than half a decade passed before uranium contributed significantly to commercial electricity generation.

In 1957, the first large-scale U.S. commercial nuclear power plant opened at Shippingport, Pennsylvania. The use of nuclear-generated electricity has grown substantially since then. Nuclear power as a percentage of total U.S. electricity generation increased quickly from nearly 5% in 1973 to 9% in 1975 and then to the current level of about 20% by 1988.

The United States Has the Most Nuclear CapacityIn 2008, the United States had more nuclear capacity than any other nation, 100.3 gigawatts, followed in rank order by France, Japan, and Germany. Although each of these countries generate less electricity than the United States, they are more dependent on nuclear power.

International Outlook for Nuclear Power VariesInternational growth in commercial nuclear power has slowed, but several countries have ambitious nuclear construction programs. The United States, China, India, Russia, South Korea, and other countries have brought new reactors into service during the latter part of the twentieth century. However, the United States has not ordered any new reactors since 1978.

Did You Know?Steam coming out of the nuclear cooling towers is just hot water.

Dry Storage Cask

Some canisters are designed to be placed vertically in robust above-ground concrete or steel structures.

Source: U.S. Nuclear Regulatory Commission

Nuclear Power Plants Produce No Carbon DioxideUnlike fossil fuel-fired power plants, nuclear reactors do not produce air pollution or carbon dioxide while operating. However, the processes for mining and refining uranium ore and making reactor fuel require large amounts of energy. Nuclear power plants have large amounts of metal and concrete, which also require large amounts of energy to manufacture. If fossil fuels are used to make the electricity and manufacture the power plant materials, then the emissions from burning those fuels could be associated with the electricity that nuclear power plants generate.

Nuclear Energy Produces Radioactive WasteThe main environmental concerns for nuclear power are radioactive wastes such as uranium mill tailings, spent (used) reactor fuel, and other radioactive wastes. These materials can remain radioactive and dangerous to human health for thousands of years. They are subject to special regulations that govern their handling, transportation, storage, and disposal to protect human health and the environment. The U.S. Nuclear Regulatory Commission regulates the operation of nuclear power plants.

Radioactive wastes are classified as low-level and high-level. The radioactivity in these wastes can range from just above natural background levels, as in mill tailings, to much higher levels, such as in spent reactor fuel or the parts inside a nuclear reactor. The radioactivity of nuclear waste decreases with the passage of time through a process called radioactive decay. The amount of time necessary to decrease the radioactivity of radioactive material to one-half the original level is called the radioactive half-life of the material. Radioactive waste with a short half-life is often stored temporarily before disposal in order to

reduce potential radiation doses to workers who handle and transport the waste, as well as to reduce the radiation levels at disposal sites.

By volume, most of the waste related to the nuclear power industry has a relatively low-level of radioactivity. Uranium mill tailings contain the radioactive element radium, which decays to produce radon, a radioactive gas. Most uranium mill tailings are placed near the processing facility or mill where they come from, and are covered with a barrier of a material such as clay to prevent radon from escaping into the atmosphere and then a layer of soil, rocks, or other materials to prevent erosion of the sealing barrier.

The other types of low level radioactive waste are the tools, protective clothing, wiping cloths, and other disposable items that get contaminated with small amounts of radioactive dust or particles at nuclear fuel processing facilities and power plants. These materials are subject to special regulation that govern their handling, storage, and disposal so they will not come in contact with the outside environment.

High-level radioactive waste consists of “irradiated” or used nuclear reactor fuel (i.e., fuel that has been used in a reactor to produce electricity). The used reactor fuel is in a solid form consisting of small fuel pellets in long metal tubes.

Spent Reactor Fuel Storage and Power Plant DecommissioningSpent reactor fuel assemblies are highly radioactive and must initially be stored in specially designed pools resembling large swimming pools, where water cools the fuel and acts as a radiation shield, or in specially designed dry storage containers. An increasing number of reactor operators now store their older spent fuel in dry storage facilities using special outdoor concrete or steel containers with air cooling. There is currently no permanent disposal facility in the United States for high-level nuclear waste. High-level waste is being stored at nuclear plants.

When a nuclear power plant stops operating, the facility must be decommissioned. This involves safely removing the plant from service and reducing radioactivity to a level that permits other uses of the property. The Nuclear Regulatory Commission has strict rules governing nuclear power plant decommissioning that involve cleanup of radioactively contaminated plant systems and structures, and removal of the radioactive fuel.

Nuclear Reactors and Power Plants Have Complex Safety and Security FeaturesAn uncontrolled nuclear reaction in a nuclear reactor can potentially result in widespread contamination of air and water with radioactivity for hundreds of miles around a reactor. The risk of this happening at nuclear power plants in the United States is considered to be very small due to the diverse and redundant barriers and numerous safety systems at nuclear power plants, the training and skills of the reactor operators, testing and maintenance activities, and the regulatory requirements and oversight of the Nuclear Regulatory Commission. A large area surrounding nuclear power plants is restricted and guarded by armed security teams. U.S. reactors have containment vessels that are designed to withstand extreme weather events and earthquakes.

Image of a Coastline


Map Showing Exclusive Economic Zone Around the United States and Territories

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Diagram of Shore and Ocean Overlayed With Territorial Sea, Exclusive Economic Zone, the Continental Shelf, and Continental Slope

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When you are at your favorite beach in Florida or California, you are not at the very edge of the country.

Although it might seem like the ocean is the border of the United States, the border is actually 200 miles out from the land. This 200-mile-wide band around the country is called the Exclusive Economic Zone (EEZ).

In 1983, President Reagan claimed the area of the EEZ in the name of the United States. In 1994, all countries were granted an EEZ of 200 miles from their coastline according to the International Law of the Sea.

There is a lot of activity just beyond the beach. The beach extends from the shore into the ocean on a continental shelf that gradually descends to a sharp drop, called the continental slope. This continental shelf can be as narrow as 20 kilometers or as wide as 400 kilometers. The water on the continental shelf is shallow, rarely more than 150 to 200 meters deep. The EEZ is part of the United States. The Federal government manages the land under the sea on behalf of the American people.

The U.S. Minerals Management Service (MMS) leases the land under the ocean to producers. These companies pay MMS rental fees and royalties on all the minerals they extract from the ocean floor. Individual states control the waters off their coasts out to 3 miles for most states and between 9 and 12 for Florida, Texas, and some other States.

The continental shelf drops off at the continental slope, ending in abyssal plains that are three to five kilometers below sea level. Many of the plains are flat, while others have jagged mountain ridge, deep canyons, and valleys. The tops of some of these mountain ridges form islands where they extend above the water.

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Most of the energy we get from the ocean is extracted from the ground. Oil, natural gas, and minerals all come from the ocean floor.

People are working on other new ways to use the ocean. Solar and windenergy have been used on land, and now they are also being used at sea. Other energy sources that are being explored in the ocean arewave energy, tidal energy, methane hydrates, and ocean thermal energy conversion.




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What Is Offshore?Image of a Coastline



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A Petroleum Processing Plant


An Oil Pipeline


Most diesel fuel consumed in the United States is produced in U.S. refineries. In 2008, 4% was imported, mainly from Canada and the Virgin Islands.

U.S. refineries produce diesel fuel from domestically produced and imported crude oil, of which about two-thirds was imported in 2008.

How Does it Get to Your Service Station?Most diesel fuel is transported by pipeline from refineries and ports to terminals near major consuming areas, where it is loaded into tanker trucks for delivery to retail service stations. A small amount of diesel fuel is transported by barge and rail.

Diesel and other products are sent through shared pipelines in “batches.” Because these batches are not physically separated in the pipeline, some mixing or “commingling” of products occurs. This possible mixing is why the quality of the diesel fuel and other products must be tested as they enter and leave the pipeline to make sure they meet appropriate specifications. Whenever the product fails to meet local, State, or Federal product specifications, it must either be removed and trucked back to a refinery for further processing, or sold as a different product.



An Oil Pipeline








An Oil Pipeline








An Oil Pipeline








An Oil Pipeline








An Oil Pipeline








An Oil Pipeline








An Oil Pipeline



An Oil Pipeline





Diesel and other products are sent through shared pipelines in “batches.” Because these batches are not physically separated in the pipeline, some mixing or “commingling” of products occurs. This possible mixing is why the quality of the diesel fuel and other products must be tested as they enter and leave the

pipeline to make sure they meet appropriate specifications. Whenever the product fails to meet local, State, or Federal product specifications, it must either be removed and trucked back to a refinery for further processing, or sold as a different product.



An Oil Pipeline








An Oil Pipeline








An Oil Pipeline








An Oil Pipeline








An Oil Pipeline




An Oil Pipeline




An Oil Pipeline




An Oil Pipeline




An Oil Pipeline


Tanker in an Argentina Seaport


A Dirt Scooper and Loader, Loading Dirt in a Dumptruck


Rudolf Diesel originally designed the diesel engine to use coal dust as fuel, and then experimented with vegetable oil (biodiesel) before the petroleum industry came out with the product now known as diesel fuel.

The first diesel-engine automobile trip was completed on January 6, 1930. The trip was from Indianapolis to New York City, a distance of nearly 800 miles. This feat helped prove the usefulness of the diesel engine design. It has been used in millions of vehicles since that time.

Diesel Is an Important FuelDiesel fuel accounted for about 7% of all energy used in the United States in 2009 and 17% of all petroleum products, the second largest petroleum product after gasoline.

Diesel fuel is important to America’s economy, quality of life, and national security. As a transportation fuel, it offers a wide range of performance, efficiency, and safety features. Diesel fuel contains between 18% and 30% more energy per gallon than gasoline. Diesel technology also offers a greater power density than other fuels, so it packs more power per volume.

Diesel Fuel Is Used for Many TasksIn agriculture, diesel fuels more than two-thirds of all farm equipment in the United States, because diesel engines can perform demanding work. It is also the most widely used fuel for public buses and school buses throughout the United States.

America's construction industry depends on diesel's power. Diesel engines are able to do demanding construction work, like lifting steel beams, digging foundations and trenches, drilling wells, paving roads and moving soil — safely and efficiently. Diesel also powers the movement of America's freight in trucks, trains, boats and barges; 94% of our goods are shipped using diesel-powered vehicles.

The military also uses diesel for fighting vehicles like tanks and trucks, because diesel fuel is less flammable and explosive and less likely to stall than gasoline.

Diesel fuel is also used in diesel engine-generators to generate electricity. Many industrial facilities, large buildings, institutional facilities, hospitals, and electric utilities have diesel generators for backup and emergency power supply. Most remote villages in Alaska use diesel generators for their electricity.





















Diesel Fuel Is Used for Many Tasks

In agriculture, diesel fuels more than two-thirds of all farm equipment in the United States, because diesel engines can perform demanding work. It is also the most widely used fuel for public buses and school buses throughout the United States.










Diesel Is an Important Fuel

Diesel fuel accounted for about 7% of all energy used in the United States in 2009 and 17% of all petroleum products, the second largest petroleum product after gasoline.


















































Diesel Fuel Is Used for Many Tasks

In agriculture, diesel fuels more than two-thirds of all farm equipment in the United States, because diesel engines can perform demanding work. It is also the most widely used fuel for public buses and school buses throughout the United States.










Diesel Is an Important Fuel

Diesel fuel accounted for about 7% of all energy used in the United States in 2009 and 17% of all petroleum products, the second largest petroleum product after gasoline.






























Did You Know?Even though the United States is primarily an importer of liquefied natural gas (LNG), it is also an exporter. The oldest active LNG marine terminal in the United States is located in Kenai, Alaska. The terminal has exported LNG to Japan almost continuously since beginning operations in 1969.

What Is LNG?

Liquefied natural gas (LNG) is natural gas that has been cooled to about -260°F for shipment and/or storage as a liquid. The volume of the liquid is about 600 times smaller than in its gaseous form. In this compact form, natural gas can be shipped in special tankers to receiving terminals in the United States and other importing countries. At these terminals, the LNG is returned to a gaseous form and transported by pipeline to distribution companies, industrial consumers, and power plants.

Liquefying natural gas provides a means of moving it long distances where pipeline transport is not feasible, allowing access to natural gas from regions with vast production potential that are too distant from end-use markets to be connected by pipeline.

Did You Know?Even though the United States is primarily an importer of liquefied natural gas (LNG), it is also an exporter. The oldest active LNG marine terminal in the United States is located in Kenai, Alaska. The terminal has exported LNG to Japan almost continuously since beginning operations in 1969.

What Is LNG?Liquefied natural gas (LNG) is natural gas that has been cooled to about -260°F for shipment and/or storage as a liquid. The volume of the liquid is about 600 times smaller than in its gaseous form. In this compact form, natural gas can be shipped in special tankers to receiving terminals in the United States and other importing countries. At these terminals, the LNG is returned to a gaseous form and transported by pipeline to distribution companies, industrial consumers, and power plants.

Liquefying natural gas provides a means of moving it long distances where pipeline transport is not feasible, allowing access to natural gas from regions with vast production potential that are too distant from end-use markets to be connected by pipeline.

A Drilling Rig Near Downtown Fort Worth

Wet Natural Gas Proved Reserves by Area, 2009

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Source: U.S. Energy Information Administration, U.S. Crude Oil, Natural Gas, and Natural Gas Liquids Reserves 2009 Annual Report

Did You Know?In 1821, William Hart dug the first well specifically to produce natural gas in the United States in the Village of Fredonia on the banks of Canadaway Creek in Chautauqua County, New York. It was 27 feet deep, excavated with shovels by hand, and its gas pipeline was hollowed-out logs sealed with tar and rags.

Underground Reservoirs Hold Oil and GasA "reservoir" is a place where large volumes of methane, the major component of natural gas, can be trapped in the subsurface of the Earth at places where the right geological conditions occurred at the right times. Reservoirs are made up of porous and permeable rocks that can hold significant amounts of oil and gas within their pore spaces.

What Are Proved Reserves?Proved reserves of natural gas are estimated quantities that analyses of geological and engineering data have demonstrated to be economically recoverable in future years from known reservoirs.

Proved reserves are added each year with successful exploratory wells and as more is learned about fields where current wells are producing. For this reason those reserves constantly change and should not be considered a finite amount of resources available. Application of new technologies can convert categories of previously uneconomic natural gas resources into proved reserves. U.S. proved reserves of natural gas have increased in every year since 1999, a trend accelerated by shale gas drilling.

How Much Natural Gas Reserves Are in the United States?U.S. natural gas proved reserves, estimated as "wet" gas which includes natural gas plant liquids, increased by 11 percent in 2009 to 284 trillion cubic feet (Tcf), the highest level since 1971. Major improvements in shale gas exploration and production technologies drove the increase in U.S. natural gas proved reserves.

What Are Undiscovered Technically Recoverable Resources?In addition to proved natural gas reserves, there are large volumes of natural gas classified as undiscovered technically recoverable resources. Undiscovered technically recoverable resources are expected to exist because the geologic settings are favorable despite the relative uncertainty of their specific location. Undiscovered technically recoverable resources are also assumed to be producible over some time period using existing recovery technology.

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According to the EIA Annual Energy Outlook 2011, the United States possesses 2,552 trillion cubic feet (Tcf) of potential natural gas resources. Natural gas from shale resources, considered uneconomical just a few years ago, accounts for 827 Tcf of this resource estimate, more than double the estimate published last year. At the 2009 rate of U.S. consumption (about 22.8 Tcf per year), 2,552 Tcf of natural gas is enough to supply approximately 110 years of use.



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What Are Proved Reserves?


Proved reserves of natural gas are estimated quantities that analyses of geological and engineering data have demonstrated to be economically recoverable in future years from known reservoirs.







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Did You Know?


In 1821, William Hart dug the first well specifically to produce natural gas in the United States in the Village of Fredonia on the banks of Canadaway Creek in Chautauqua County, New York. It was 27 feet deep, excavated with shovels by hand, and its gas pipeline was hollowed-out logs sealed with tar and rags.









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Natural Gas Well Drilling Operation

Source: Bureau of Land Management (Public Domain)

Did You Know?Advanced technologies like satellites, global positioning systems, remote sensing devices, and 3-D and 4-D seismic technologies make it possible to discover natural gas reserves while drilling fewer wells.

Natural gas has many qualities that make it an efficient, relatively clean,

Natural Gas Well Drilling Operation

Source: Bureau of Land Management (Public Domain)

Did You Know?Advanced technologies like satellites, global positioning systems, remote sensing devices, and 3-D and 4-D seismic technologies make it possible to discover natural gas reserves while drilling fewer wells.

Natural gas has many qualities that make it an efficient, relatively clean,

As of December 2009, 21 States and the District of Columbia Had Legislation or Programs Allowing Residential Customer Choice

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Source: U.S. Energy Information Administration, Natural Gas Residential Choice Programs (2010).

Did You Know?

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Large commercial and industrial consumers have had the option of purchasing the natural gas commodity separately from other natural gas services for many years.

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Natural gas customer choice programs let households and small commercial establishments purchase natural gas from someone other than their traditional utility company. However, utility companies still deliver the natural gas to consumers.

How Choice Programs WorkCustomer choice programs give consumers the option of purchasing natural gas from an unregulated supplier (marketer) rather than a local utility company. If a consumer chooses to buy from a marketer, the marketer purchases the natural gas and arranges for its delivery to the local utility. The local natural gas utility, generally referred to as a local distribution company or LDC, continues to provide local transportation and distribution services. Local distribution companies are regulated by State utility commissions and cannot earn a profit on natural gas sales, whereas sales by marketers are unregulated.

Most natural gas customer choice programs began in the 1990s in an effort to introduce more competition into local energy markets. Traditionally, local distribution companies provide natural gas to their customers as part of a bundled service that includes both the price of the natural gas (sometimes called sales service) and the price of distributing the gas. In customer choice programs, gas sales are unbundled from distribution and other delivery-related services.

The characteristics and availability of existing choice programs vary markedly. Some States allow all customers to choose, while some limit choice to specific service areas or a specific number of customers. In some cases, even though choice is allowed statewide, no programs are being offered or no marketers are participating.

Choice Enrollment Reached a New High in 2009Overall, more than 15%, or about 5.1 million, of the approximately 35 million residential natural gas customers with access to choice (54% of U.S. residential customers) were buying natural gas from marketers in 2009, up from 4.7 million in 2008. Enrollment totaled 9% more than in 2008 and 15% more than in 2007, although the number of States allowing choice has remained the same since 2003.

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The State of Georgia has by far the most comprehensive choice program, in that all residential customers in Atlanta Gas Light Company’s service territory (more than 80% of Georgia’s residential gas customers) purchase their natural gas from marketers. Atlanta Gas Light still delivers the gas but no longer provides sales service. Ohio has the largest customer choice program with about 58% of all eligible households participating and enrollment levels of nearly 1.7 million. Together Georgia and Ohio accounted for nearly 60% of the residential customer enrollment total in 2009.

Customer participation is determined by a variety of factors, such as the customer’s potential to save money and the terms of service. In the same way, marketers’ participation is influenced by the potential to earn a profit on natural gas sales. In 2009, 149 marketers were authorized to serve residential customers, of which 110 were actively serving customers. Many marketers have expanded their price offerings to attract customers. Besides month-to-month variable rates or fixed rates for longer terms, some marketers offer introductory rates, rebates, budget plans, or capped rates.

LearningZenenergyacademy.learningzen.com/ · Web viewThe terminal has exported LNG to Japan almost continuously since beginning operations in 1969. What Is LNG? Liquefied natural

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