CURRENT PROJECTS TO INCREASE COAL PRODUCTION & UTILIZATION. West Virginia University November 13, 2008 Bart J. Hyita
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1 CURRENT PROJECTS TO INCREASE COAL PRODUCTION & UTILIZATION Poundstone Lecture West Virginia University November 13, 2008 Bart J. Hyita
2 The information contained in this presentation is the property of CONSOL Energy Inc. and is not to be copied or distributed without the expressed consent of CONSOL Energy Inc.
3 BJH - #3
4 A New CONSOL Energy Inc. Headquarters Canonsburg, Pennsylvania aerial view CONSOL Energy Corporate Headquarters
5 CONSOL Energy employs 8,000 people BJH - #5
6 Coal Operations Engineering Disciplines Several of our employees are industry professionals possessing various engineering and technical degrees: (180) Mining Engineering (100) Mining Engineering Technology (25) Electrical Engineering (70) Electrical l Engineering i Technology (20) Mechanical Engineering (1) Mechanical Engineering Technology (30) Civil Engineering (10) Civil Engineering Technology (10) Industrial and Environmental Engineering (15) Engineering & Environmental Technology (20) Geology & Geological Engineering (10) Chemical Engineering (10) Safety Engineering BJH - #6
7 CONSOL has existed for 145 years CONSOL Energy Inc. is the largest bituminous coal producer in the United States and the largest producer of coal by underground mining methods. We operate nineteen active mining complexes in five states along with several other energy-related companies BJH - #7
8 Safety At Absolute ZERO ZERO Accidents is CONSOL s Primary Objective Maintain Absolute ZERO Recordable Accidents Recordable Accidents are those resulting in Lost-Time or requiring Professional Medical Attention Continuous Improvement of Safety & Compliance Empowering the Workforce to always be Safe At CONSOL, Nothing Trumps SAFETY BJH - #8
9 CONSOL Safety versus the Coal Industry Incident Rates Coal Industry CONSOL (Coal) Linear (CONSOL (Coal)) BJH - #9
10 Projected Energy Consumption in Total BTUs World Consumption and U.S. Energy Production and Consumption (quadrillion Btu) History Projections World 400 Consumption U.S. Production U.S. Consumption Sources November : EIA International 13, 2008 Poundstone Energy Lecture Outlook 2007 (May 2007) and EIA Annual Energy Outlook 2008, Early Release (December BJH 2007) - #10
11 Existing US Energy Resources Must be Utilized Coal Oil Shale Enhanced Oil Recovery (EOR) Domestic Resources 1.4 trillion barrels (shale) * 800 billion barrels of FT (coal) * 0.15 billion barrels (pet coke) 22.7 billion barrels oil reserves 32+ billion barrels of oil (EOR) 300 billion barrels Renewables (Trees) Total 2.6+ trillion barrels equivalent BJH - #11
12 EPAct Section 2398a Fuel Procurement The Secretary of Defense is developing a strategy to use fuel produced in whole or in part, from coal, oil shale, and tar sands that is extracted by either mining or in-situ methods and refined or otherwise processed in the United States Use all secure indigenous sources of energy Coal, oil shale, petroleum coke, renewables From dispersed production facilities Minimize government funding focus focus on qualification and certification Meet existing government mandates and executive orders to ensure environmental compliance Make a better fuel from coal and petroleum coke (Fischer Tropsch fuels) and oil shale Low (or no) Sulfur, cleaner burning, bio-degradable, low (or no) aromatics, reduced particulate emissions Blends near term, neat fuel future goal Use Environmentally sensitive processes to produce fuel Clean Coal Technologies such as the Fischer-Tropsch process, Mahogany Shale Research Project, Direct Coal Liquefaction CO 2 sequestration for enhanced oil recovery (EOR) BJH - #12
13 Summary of Active Coal Operations Operation Location Mining Method Installed Capacity (MM tons) Northern Appalachia Bailey PA CM/LW 11.0 Enlow Fork PA CM/LW 11.0 McElroy WV CM/LW 11.0 Blacksville 2 WV CM/LW 5.2 Robinson Run WV CM/LW 6.5 Loveridge WV CM/LW 6.3 Shoemaker WV CM/LW Mine No. 84 PA CM/LW Central Appalachia Buchanan VA CM/LW 5.0 Jones Fork KY CM 3.0 Miller Creek WV Truck/Shovel Amonate WV, VA CM 1.0 Bronzite WV CM 0.5 Fola WV Truck/Shovel 4.2 Rock Lick WV CM 0.5 Powellton WV Truck/Shovel 0.4 Lick Branch WV CM Little Eagle WV CM West/Midwest Emery UT CM Total 76.5 BJH - #13
14 CNX Gas Company Operating Regions Coalbed Methane (CBM) Oil & Gas (O&G) BJH - #14
15 CNX Gas Pipeline Project - Jewell Ridge, VA BJH - #15
16 CONSOL Energy Project Development Provide More Energy by Expanding Existing Operations to Meet Increasing Market Demand (Brownfield Projects) Longwall Face Width Extensions Overland Surface Belts to Replace Large Areas of Aging Underground Infrastructure Vertical Belts & Coal Processing Expansions Total Mine Rehabilitation, Slope & Belt Haulage Upgrades Mine Expansions Utilizing Existing & New Infrastructure Provide More Energy by Potentially Developing Untapped Reserves to Meet Future Market Demand (Greenfield Projects) New Underground Continuous Haulage Operations New State-of-the Art Underground Longwall Operations New Surface Mines: Truck/Shovel & Highwall Operations New CBM & Shale Gas Developments New Clean Coal Technologies Incorporating CO 2 Sequestration Coal Conversion Projects Producing Fuel & Chemical Feedstocks BJH - #16
17 Existing Longwall Face Extension Projects (2) Shearer Units per longwall face: (1) operating, (1) spare (260) Hydraulic roof supports (shields) (2) Armored Face Conveyors: (1) operating, (1) spare BJH - #17
18 Evolution of LW Panel Face Width ( ) BJH - #18
19 New LW Conveyor High-HP HP Motor Technology BJH - #19
20 New Bailey Slope and Overland Belt Project BJH - #20
21 Overland Belt Preparation Plant Connection BJH - #21
22 5 miles of 72 Wide Conventional Conveyor Belt BJH - #22
23 Bailey Slope Belt Drive Building Construction BJH - #23
24 Shoemaker Haulageway & Overland Belt Project
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