Table of Contents

Vol. 6, No. 4
4th Quarter 2000

US Geological Survey 2000 World Petroleum Assessment is Now Available on CD-ROM

The assessment is the result of a five-year effort to estimate the quantities of conventional oil, gas, and natural gas liquids outside the United States that have the potential to be added to reserves in the 30 years from 1995 to 2025. The results are presented hierarchically from the basic Assessment Unit, through the Total Petroleum System and geologic province, to each region and the world. The CDs permit users to query databases, generate maps interactively, and conduct further analysis.

For more information about the CD visit the USGS website, http://energy.usgs.gov 

Distributed Energy Resources - Information Resources

Distributed energy resources (DER), or distributed power generation, provides opportunities for producers to reduce operating costs and/or increase revenues. Spawned by electric deregulation, DER systems complement the primary generating systems operated by power companies. There are benefits to both producers and power companies, but hurdles and perceptions must be overcome for more widespread application of DER.

Why is DER of importance to producers? Consider for a moment the issue of vented or flared gas. According to the U.S. Energy Information Agency, about 300 Bcf of gas is vented or flared in the lower 48 states each year. Leading states are Wyoming (140 Bcf) and Texas (41 Bcf). With natural gas prices exceeding $5 per Mcf, the revenue potential from this "waste" gas is significant, let alone the greenhouse gas implications. In some areas, there are also large amounts of subquality gas. Producers contemplating distributed generation must understand its three components—technologies, regulations, and markets. There are information resources available for producers considering DER.

Distributed Energy Resources Initiative (DERI) at LSU's Center for Energy Studies in Baton Rouge, Louisiana. DERI coordinates research, disseminates information and hosts educational forums, having already held two in Texas. The initial forum, which was supported by PTTC's Central Gulf and Texas Regions, covered the basic concepts of distributed generation. The most recent forum addressed a proposed Texas emissions rule and its potential unfavorable impact, both in Texas and across the country. Visit DERI's website (www.deri.lsu.edu) or contact Ritchie Priddy (phone 225-578-4544 or rpriddy@lsu.edu) to learn more.

Gas Technology Institute (formerly Gas Research Institute). GTI maintains a comprehensive website (http://www.gastechnology.org/) providing information about reports, software products, and R&D investment opportunities. One software product, DGEN ProTM, helps determine the economic viability of on-site and distributed generation projects.

DOE's National Energy Technology Laboratory. DOE's National Energy Technology Lab (NETL) is playing more of an advanced research and regulatory/policy role supporting distributed generation. Within the Strategic Center for Natural Gas at NETL, research covers the spectrum of reciprocating internal combustion engines, fuel cells and advanced turbines. Before making any installation, one owes it to themselves to see where the leading edges are going.

For information on advanced turbines and engines, contact Abbie Layne, phone 304-285-4603, alayne@netl.doe.gov. For fuel cell information, contact Mark Williams, phone 304-285-4747, mark.williams@netl.doe.gov

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Governors' Natural Gas Summit: Responding to the Looming Energy Crisis

The summit, held on September 20, 2000, in Columbus, Ohio, by the Interstate Oil and Gas Compact Commission (IOGCC), drew attention to and initiated a discussion of the supply, demand and price for natural gas and helped guide a rational public policy response to the current high prices and looming supply shortfalls.The wholesale price of natural gas has doubled since April, and tripled since last summer, pointing to an extremely tight natural gas market for the winter of 2000-2001.

Alaska Governor and IOGCC chairman, Tony Knowles, co-hosted the summit with Ohio Gov. Bob Taft. The summit was attended by national industry experts from across the U.S. 

Summit Goals

• Communicate the higher price of natural gas to consumers.

• Inform the public there is an abundant supply of clean-burning domestic natural gas.

• The higher price and any temporary supply disruptions are the cause of market forces at work. 
  The demand for natural gas has outpaced supply replacements. 

• The lengthy period of low oil prices caused a decline in drilling. (Producers who drill for oil are the same ones who drill for natural gas.) 

• As price has recovered, drilling has increased. However, there is a lead time of a couple of years from the time natural gas is drilled for until it reaches the consumer. 

• Demand has increased because of electric generation being powered by natural gas. 

• A coordinated national energy policy should be developed to avoid future price swings. The states, through their governors, can lead such a policy.

For questions or comments, contact Sarah Sitzes, IOGCC Communications Manager, phone 405-525-3566, ext 114, or email sarah.sitzes@iogcc.state.ok.us Detailed information on presentations and other related items can be found at http://www.iogcc.state.ok.us/meetings/2000_governors_Natural_Gas_Summit.htm