Promoting Energy Promoting Energy Infrastructure, Creating Infrastructure, Creating Opportunities, and Enhancing Opportunities, and Enhancing Reliability Reliability Business Continuity Strategies Business Continuity Strategies Houston, TX Houston, TX November 9-10, 2006 November 9-10, 2006
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Promoting Energy Infrastructure, Creating Opportunities, and Enhancing Reliability
Promoting Energy Infrastructure, Creating Opportunities, and Enhancing Reliability. Business Continuity Strategies Houston, TX November 9-10, 2006. Agenda. WPA – what are we? National production history, forecast Wyoming and Colorado specific Pipeline infrastructure Socioeconomic impacts - PowerPoint PPT Presentation
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Promoting Energy Infrastructure, Creating Promoting Energy Infrastructure, Creating Opportunities, and Enhancing ReliabilityOpportunities, and Enhancing Reliability
Business Continuity StrategiesBusiness Continuity Strategies
Houston, TX Houston, TX
November 9-10, 2006November 9-10, 2006
AgendaAgenda
• WPA – what are we?
• National production history, forecast
• Wyoming and Colorado specific
• Pipeline infrastructure
• Socioeconomic impacts
• Other commodities
6.458
5.705
2.140
5.4055.515
5.280
6.650
6.930
6.610
7.240
11/8/06
Date, WY Export (Bcfd), % WY Pipeline Contracted
4.668 95%10/22/2006
Source: 10/30/06Raymond James
Marketed Natural Gas Production (Bcfd)
0
10
20
30
40
50
60
2000 2001 2002 2003 2004 2005 Jun-06
West Producing East U.S. Total
-2.88
-1.07
+2.51
Source: EIA
Regional Natural Gas Production is Regional Natural Gas Production is Growing 260 MMcfd/yrGrowing 260 MMcfd/yr
(Note: much of CO production comes from the San Juan Basin)(Note: much of CO production comes from the San Juan Basin)
Natural Gas InfrastructureNatural Gas Infrastructure
1997
Source:EIA
WBIGrasslands80 MMcfd
El PasoCIG
50 MMcfd
William’sNorthwest175 MMcfd
El PasoCheyenne
Plains770 MMcfd
MidAmericanKern
1,052 MMcfd
GasInfrastructure Added in Last
5 years
Total of 2.1 Bcfd of export capacity added in the Rockies over the past 5 yrs (pre REX)
Current ConstraintsCurrent Constraints
• Wamsutter to Cheyenne
• Nearly all Export Points
El Paso Cheyenne Plains
Kinder Pony Express
Kinder Trailblazer
WBI Grasslands
Kern River
NWP PNW
NWP SJBKinder TransColorado
Southern Star
Approximate Pipeline Capacity Out of the Rockies on 9-12-2006Approximate Pipeline Capacity Out of the Rockies on 9-12-2006
Certificated Cap
(X 1000)MMBtu/day
Flowing
(X 1000)MMBtu/day
MidAmerican Kern 1,729* 2,032
William’s NWP PNW 653 643
William’s NWP South 349 349
Kinder TransColorado 375 367
Kinder Trailblazer 846 875
El Paso Cheyenne Plains 770 693
El Paso CIG 330 330
Southern Star 190 190
Kinder Morgan Pony 255 234
WBI Grasslands 80 80
Total Major Pipe Export 5,577
(6,148)
5,793
*2,300 Available
Note That Winter Demand in the Note That Winter Demand in the Rockies is SubstantialRockies is Substantial
Peak Day > 3.5 BcfdPeak Day > 3.5 Bcfd
DenverDenver
Salt Lake CitySalt Lake City
Note That Storage Injections in the Note That Storage Injections in the Summer Help Augment Pipeline Summer Help Augment Pipeline
Takeaway CapacityTakeaway Capacity
• Clay Basin Storage (Questar)
• Elk Basin Storage (WBI)
• Young Storage (XCEL/El Paso)
• Fort Morgan Storage (El Paso)
• Huntsman Storage (Kinder)
• Clear Creek Storage (Questar)
• …………..
THE FUTURE!THE FUTURE!
1.8 Bcfd1.8 Bcfd
42 –inch diameter42 –inch diameter
1,323 Miles1,323 Miles
•WIC Piceance Lateral
•REX Zone 1 (formerly Entrega)
•Questar Overthrust
•WIC Mainline
Storage OpportunitiesStorage Opportunities
Socioeconomic Socioeconomic impactsimpacts
Energy Price SensitivityEnergy Price Sensitivity
• Crude Oil [ $0.25 per bbl. change ]± $1.6 million revenue change.
• Coal [ $0.25 per ton price change ]± $13.6 million revenue change.
• Natural Gas [ $0.25 per mcf change ]± $50.7 million revenue change.
Note: revenue sources include severance taxes, federal mineral royalties, and the school foundation portion of ad valorem taxes (based on FY06 projections). Source: January 2006 CREG Forecast and Legislative Services Office.
Wyoming Economic Analysis Division
Current Economic ConditionsCurrent Economic ConditionsUpside - Energy continues to bolster the
economy!• Net population in-migration last 4 years.• Jobs, jobs, jobs!!!
• 8,800 (3.4%) between April 2005 to April 2006.• Consumer spending continues to climb.
• Retail sales taxes up 14% from year ago. • State revenue out-pacing forecast.
• General Fund ahead 7.4% ($65 million).• Gross State Product soars in 2004.
• GSP increased 7.6% to $24 billion; ranked 12th in U.S. (6.7%).
Wyoming Economic Analysis Division
Current Economic ConditionsCurrent Economic Conditions• Downside: Influx of workers stress communities.
• Increases traffic, domestic violence, drug use, 911 emergency services.
Investing in the future…Investing in the future…Education is top priority:• $400 million Hathaway Scholarship Program.• $105 million endowed professorships • $2 billion K-12 education funding.Other:• $564 million Permanent Wyoming Mineral Trust Fund.• $100 million tax cut (sales tax on groceries.)• $40 million Wildlife Trust Fund (conservation grants,
habitat improvement.)• Infrastructure increased bonding authority from $1 billion
to $3 billion.• Capital improvements – schools, prison, state buildings.
Wyoming Economic Analysis Division
Other commoditiesOther commodities
Crude OilCrude Oil
• Prices have rebounded since Spring 06.
• Pipeline infrastructure is tight but no consensus on new outlets – let’s talk!
• Refining expansions and new refining initiatives are expensive and have lengthy permitting lead times.
• Production continues to grow in the region.
CO2 Infrastructure and Announced Advanced CO2 Infrastructure and Announced Advanced Coal SitesCoal Sites