DOW RESTRICTED - For internal use only.ppt

DOW RESTRICTED - For internal use only Government’s Role in Industry Growth Gordon Slack Business Director – Energy April 29, 2005 Breaking News! Liquid vs. Gas Ethylene Feedstocks(% of total) Key Questions U.S. Natural Gas Consumption by Sector Projected Growth in U.S. Power Production The Power Debacle battles its customers for fuel! causes unmeetable 2005-2007 U.S. gas demand except by having a factory shutdown. requires 62% of all U.S. gas production to run all 200,000 MW at the same time. operated at 40% of capacity in 2003. consumed over $100 Billion in new investment which is severely impaired or bankrupt. U.S. Dry Natural Gas Production Public Policy Changed the energy policy debate Consumer-focused Alliance with non-traditional allies Creation of the Consumers Alliance for Affordable Natural Gas (CAANG) Position papers, issue education Growing grassroots support for change Senator Alexander natural gas bill CAANG Goal: Comprehensive Natural Gas Bill in 2005 - Four Pillars Energy Efficiency and Conservation emphasized. Greater Fuel Diversity. Promote increased use of clean coal, nuclear, and renewable energy. Additional gas supply. LNG imports, coal-bed methane, a new political consensus on development of domestic natural gas resources. Improved Infrastructure. Increased transmission and storage capacity. Supply: OCS Access States’ rights Gather reserves data Governor request lifting moratoria Bonus bids, enhanced royalties Coastal restoration assistance Access to remaining LeaseSale 181 Gas only leases Supply: On-shore Access Efficient permit processing Timely agency action Interagency cooperation Hydraulic fracturing states’responsibility Supply: LNG Siting Clarify FERC siting jurisdiction One-year processing deadline Codify “Hackberry Decision” Pipeline liquids content rules Supply: Alaska Pipeline Resolve permit impediments Limited federal financial support Supply: Storage/Infrastructure Market based rates for new storage Str