Comment of Allegheny Defense Project, FreshWater Accountability Project, Heartwood, and Ohio Valley Environmental Coalition under CP14-553, et al

Shale Development: Its impact on Infrastructure and LNG Exports IOGCC Annual Meeting International Session Buffalo, NY October 18, 2011 Berne L. Mosley, Deputy Director OFFICE OF ENERGY PROJECTS FEDERAL ENERGY REGULATORY COMMISSION Why Shale Gas? Why Now? Project drivers Market Supply Impacts on Existing Infrastructure Shale Gas and LNG Exports Federal Energy Regulatory Commission 1 Market Drivers Natural gas is in demandnow more than ever! Firming-up Variable Power Generation (RPSs) New Baseload Power Generation Replacing / Converting Retiring Coal-Fired Plants Natural Gas Vehicles Federal Energy Regulatory Commission 2 Supply Drivers Shale gas is abundant and is becoming increasingly cheaper to produce Rockies gas can now easily reach markets in the Northeast, and with Ruby, the Pacific Coast Deeper shale formations (e.g., Utica) are now being considered as emerging supply sources Federal Energy Regulatory Commission 3 Future U.S. Gas Supply LNG Imports Alaska Net Pipeline Imports Gas Shales Coalbed Methane Tight Sands Conventional Offshore Source: EIA Annual Energy Outlook 2011 (April 2011) and EIA spreadsheets. Federal Energy Regulatory Commission 4 Shale Gas and Shale Oil Plays, Lower 48 States Source: EIAs Review of Emerging Resources: U.S. Shale Gas and Shale Oil Plays July 2011 Federal Energy Regulatory Commission 6 Technically Recoverable Gas in the U.S. Source: Report of the Potential Gas Committee (December 31, 2010) Potential Supply of Natural Gas in the United States April 27, 2011 Federal Energy Regulatory Commission 7 PGCs Assessment Highest in 46-Year History Source: GasMart 2011 CenterPoint Energy Federal Energy Regulatory Commission 8