Oil and gas prices down off 28 highs $ US$ per per barrel barrel US$ $ per thousand cubic feet 16 9 14 8 12 7 Natural gas (wellhead) 6 1 (Right) 5 8 4 6 3 4 2 Crude oil 2 (Left) 1 198 1985 199 1995 2 25 21 215 22 Sources: U.S. Energy Information Administration and NYMEX.
Highest domestic reserves in the world Fossil fuel reserves in barrels of oil equivalent Percentage of Proved Reserves 2.% 17.5% 15.% 12.5% 1.% 7.5% 5.% 2.5%.%
Oil imports trending downward Imports of crude oil, United States Million barrels per day 1.5 Projected 1. 9.5 9. 8.5 8. 2 25 21 215 22 225
Strategic Petroleum Reserve (SPR) Historical reserve levels Million barrels 8 7 6 5 4 3 2 1 1983 1988 1993 1998 23 28 213 Source: U.S. Department of Energy. SPR Inventory (left) Value of reserves (right) US$ billions 8 7 6 5 4 3 2 1
Natural gas comprises bulk of planned new capacity Planned new capacity (213-215), United States Other renewable 6% Coal 3% Other fossil fuels 2% Wind 1% Solar 18% Natural gas 61% Sources: Milken Institute, U.S. Energy Information Administration.
Higher global demand for natural gas Natural gas consumption, OECD and non-oecd countries Trillion Cubic Feet 16 14 Total 12 1 8 OECD 6 4 Non-OECD 2 198 1985 199 1995 2 25 21 215 22 225
U.S. energy surplus by 22 Natural gas imports and exports, United States Trillion cubic feet 35 3 25 Imports 2 15 1 5 Exports Net exports -5 199 1995 2 25 21 215 22 225 23 235 24
The rise of shale Natural gas withdrawals by source, United States Trillion cubic feet 16 14 12 1 211 8 6 4 27 2 Shale gas Oil wells Gas wells Sources: Milken Institute, U.S. Energy Information Administration.
Major shale basins around the world
Shale will continue to drive future production Natural gas withdrawals share by source, United States 35 3 25 2 15 1 Shale Tight gas 5 Onshore conventional Offshore Coalbed 199 1995 2 25 21 215 22 225 23 235 24 Sources: U.S. Energy Information Administration.
Transitioning to natural gas in transportation sector Natural gas demand from transport sector Billion cubic feet 34 32 3 28 26 24 22 2 25 26 27 28 29 21 211 Sources: Bloomberg New Energy Finance, U.S. Energy Information Administration.
Transitioning to natural gas in transportation sector Compressed (CNG) & liquefied (LNG) natural gas fueling stations, United States Number of fueling stations 1,2 1, 8 6 CNG 4 2 LNG 25 26 27 28 29 21 211 212 Sources: Bloomberg New Energy Finance, U.S. Energy Information Association.
Compressed natural gas (CNG) as cheaper alternative Average retail fuel prices in gasoline gallon equivalent, United States US$ per gasoline gallon equivalent 5 4 Gasoline 3 2 1 Retail CNG 2 22 24 26 28 21 212 Source: U.S. Department of Energy.
Massive shale withdrawals keeping natural gas prices low US$ per million BTUs 14 12 1 8 6 4 2 Henry Hub spot price (Left) 27 28 29 21 211 Shale withdrawals (Right) Trillion cubic feet 9 8 7 6 5 4 3 2 1
Natural gas substantially cheaper than oil Brent crude oil to Henry Hub gas price ratio, energy equivalent Forecast 8 7 6 5 4 3 2 1-199 1995 2 25 21 215 22 225 23 235 24
Gas production continues rising as rig count falls Monthly dry natural gas production and average monthly rig count, United States Billion cubic feet 2,5 2, 1,5 1, 5 Monthly production (left) Rig count (right) Average monthly rig count 1,8 1,6 1,4 1,2 1, 8 6 4 2
Gas production outpaces domestic oil production Million barrels per day 1 9 8 7 6 Oil production (left) Billion cubic feet per day 7 65 6 55 5 5 4 8 82 84 86 88 9 92 94 96 98 2 4 6 8 1 12 Natural gas production (right) 45 4