Today in Energy

Aug 20, 2014

Russia-China deal will supply Siberian natural gas to China’s northern, eastern provinces

graph of Chinese natural gas supply mix, as explained in the article text
Source: U.S. Energy Information Administration, International Energy Outlook 2013, IHS Energy, Eastern Bloc Research
Note: Volumes shown for Russia-China gas deal assume minimal contract obligations. Increases in these volumes will lessen the amount needed from LNG imports and other contracts.

China's natural gas demand has been growing as the government seeks to move away from coal in favor of cleaner fuels. According to EIA's International Energy Outlook 2013 (IEO2013) Reference case, demand will more than triple from 5.2 Tcf in 2012 to 17.5 Tcf by 2040.

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Aug 19, 2014

Hawaii and U.S. Territories aim to increase fuel diversity with LNG imports

graph of share of total energy consumption by fuel, as explained in the article text
Source: U.S. Energy Information Administration, State Energy Data System and International Energy Statistics
Note: 2012 shares for Puerto Rico, U.S. Virgin Islands, Guam, and American Samoa based on 2011, the most recently available data. Data for the Northern Mariana Islands were unavailable.

Unlike the rest of the United States, energy consumption in island states and territories is almost entirely petroleum-based. These islands may soon be able to diversify their energy sources to include natural gas, because relatively low natural gas prices and new shipping technology may allow these islands to import liquefied natural gas (LNG).

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Aug 18, 2014

Natural gas serves a small, but growing, portion of China’s total energy demand

Map of Chinese natural gas infrastructure, as explained in the article text
Source: U.S. Energy Information Administration, IHS EDIN
Note: Click to enlarge.

China relies heavily on domestic coal (and to a lesser extent oil) to meet rising energy consumption. To reduce air pollution and carbon dioxide emissions, the Chinese government is attempting to replace some of the country's coal and oil use with natural gas. Natural gas accounted for only 4.9% of China's total energy consumption in 2012, but large investments in domestic natural gas production and infrastructure, along with growing imports, are likely to underpin a significantly larger role in the future. The Chinese government anticipates increasing its natural gas share of total energy consumption to around 8% by the end of 2015 and 10% by 2020.

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Aug 15, 2014

Reasons for projected natural gas-fired generation growth vary by region

graph of projected natural gas-fired generation increase, as explained in the article text
Source: U.S. Energy Information Administration, Annual Energy Outlook 2014 Reference case
Note: Values for the Northeast Power Coordinating Committee, Midwest Reliability Organization, and Western Electricity Coordinating Council regions account only for the portions of these regions within the United States. Totals exclude electric generation in the end-use sector, which is largely onsite industrial generation. WECC is Western Electricity Coordinating Council, TRE is Texas Reliability Entity, RFC is ReliabilityFirst Corporation, and SERC is SERC Reliability Corporation.

EIA projects that natural gas-fired electric power sector generation in the contiguous United States will increase to 1,600 million megawatthours (MWh) by 2040, a 1.3% average annual increase. This growth is spread throughout the Lower 48 states, and the reasons for the growth vary by region.

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Aug 14, 2014

India is increasingly dependent on imported fossil fuels as demand continues to rise

graph of Indian fossil fuel consumption, as explained in the article text
Source: U.S. Energy Information Administration, International Energy Statistics

India's dependence on imported fossil fuels rose to 38% in 2012, despite the country having significant domestic fossil fuel resources. India ranked as the fourth-largest energy consumer in the world in 2011, following China, the United States, and Russia. The country's energy demand continues to climb as a result of its dynamic economic growth and modernization. India is the third-largest economy on a purchasing power parity basis and has the world's second-largest population, according to World Bank data.

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Aug 13, 2014

Steam coal imports remain down sharply from historic high in 2007

graph of U.S. coal imports by electric power sector plants, as explained in the article text
Source: U.S. Energy Information Administration, Monthly Cost and Quality of Fuels for Electric Plants Report, Power Plant Operations Report, and Federal Energy Regulatory Commission (FERC), Monthly Report of Cost and Quality of Fuels for Electric Plants
Note: The number of reported plants excludes transfer terminals. Data for 2013 are preliminary.

Steam coal imports at electric power plants have fallen significantly from their peak level of more than 30 million tons in 2007 to less than 7 million in 2013. The number of plants using imported coal similarly fell from a peak of 48 in 2006 to 13 in 2013. Preliminary data for the first five months of 2014 indicate an increase in both imports and the number of plants taking imports, but both are still well below 2007 levels. Coal imports, mainly from Colombia but also from countries including Venezuela, Indonesia, and Canada, remain a small component of overall U.S. coal consumption—only 3% during the peak year of 2007 and less than 1% in 2013.

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Aug 12, 2014

Ohio's Utica Region now included in EIA's monthly Drilling Productivity Report

graph of Utica region natural gas production, as explained in the article text
Source: U.S. Energy Information Administration, Drilling Productivity Report

The Utica Region in eastern Ohio, one of the fastest growing natural gas production areas in the United States, has been added to the Drilling Productivity Report (DPR). Total natural gas production in the Utica Region, which includes production from the Utica and Point Pleasant formations as well as legacy production from conventional reservoirs, has increased from 155 million cubic feet per day (MMcf/d) in January 2012 to an estimated 1.3 billion cubic feet per day (Bcf/d) in September 2014.

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Aug 11, 2014

Northeast natural gas spot prices particularly sensitive to temperature swings

graph of daily natural gas spot prices vs temperatures, as explained in the article text
Source: U.S. Energy Information Administration, with data from Bloomberg and SNL Energy
Note: Lines represent best-fit fourth-order polynomial equations based on a scatter plot of temperatures observed at major airports in each city, and prices at nearby market hubs. Best-fit lines do not extend to cover the entire range of all temperature and price observations. Spot prices are by delivery date.

Natural gas spot prices fluctuate throughout the year in response to several factors, including weather, production levels, supply interruptions, pipeline constraints, inventory levels, and the availability of other energy sources. Temperature changes, more than any other factor, most frequently correlate with natural gas spot price movements. Natural gas demand and, in turn, natural gas prices in the spot market, will generally rise as temperatures move further away from 60 degrees Fahrenheit, as more natural gas is needed for space heating as temperatures cool and for power generation as temperatures warm.

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Aug 8, 2014

August differentials offer insight into Aramco’s oil pricing

graph of Saudia Aramco OSP differential for sale of Arab Light Crude by destination, as explained in the article text
Source: U.S. Energy Information Administration, based on data from Arab Oil & Gas
Note: OSP is Official Selling Price; ASCI is Argus Sour Crude Index; and BWAVE is Brent Weighted Average. The differential charged to each region is based on a different crude oil price benchmark: ASCI for the United States, BWAVE for Europe, and Oman/Dubai for Asia.

Saudi Arabia produces and sells its crude oil via Saudi Aramco, its state-owned oil company. Like many such companies, Saudi Aramco sells its oil to long-term customers at an official selling price (OSP). Saudi Aramco adjusts the OSP monthly based on specific conditions in different regions of the world.

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Aug 7, 2014

Energy production and other mining account for a large percentage of some state economies

graph of mining as a share of the economy for select states and the United States, as explained in the article text
Source: U.S. Commerce Department, Bureau of Economic Analysis (BEA), Regional Economic Accounts
Note: BEA uses the value-added approach to estimate industrial contribution to GDP by state, or gross state product, presenting industrial value-added output by state based on the North American Industry Classifications System (NAICS). Mining comprises establishments that extract naturally occurring mineral solids, such as coal and ores, crude petroleum, and natural gas. The data are converted to real (2009$) GDP by state by applying national chain-weighted price deflators.

At the national level, establishments that extract crude oil and natural gas as well as naturally occurring mineral solids, such as coal and ores, collectively referred to as the mining sector in economic data, accounted for about 2% of the U.S. economy last year. In some states, though, the mining sector accounts for a much larger share of the economy. Of the six states where mining comprised more than 10% of the state's economy in 2013, mining growth resulted in five of those states having higher economic growth than the national average.

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