FOSSIL FUEL and GEOTHERMAL ENERGY SOURCES for LOCAL USE in ALASKA: Summary of Available Information

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FOSSIL FUEL and GEOTHERMAL ENERGY SOURCES for LOCAL USE in ALASKA: Summary of Available Information FOSSIL FUEL AND GEOTHERMAL ENERGY SOURCES FOR LOCAL USE IN ALASKA: Summary of Available Information edited by Coal Robert F. Swenson Marwan A. Wartes David L. LePain James G. Clough Special Report 66 Geothermal Published by STATE OF ALASKA DEPARTMENT OF NATURAL RESOURCES DIVISION OF GEOLOGICAL & GEOPHYSICAL SURVEYS Natural Gas 2012 FOSSIL FUEL AND GEOTHERMAL ENERGY SOURCES FOR LOCAL USE IN ALASKA: Summary of Available Information Edited by: Robert F. Swenson1, Marwan A. Wartes1, David L. LePain1, and James G. Clough1 With contributions to individual chapters by: James G. Clough1, Paul L. Decker2, Robert J. Gillis1, Ken Helmold2, David L. LePain1, Simone Montayne1, Christopher J. Nye1, Shaun Peterson2, and Marwan A. Wartes1 Figures and plates composed by: Andrea Loveland1 and James Weakland1; editing by Paula Davis1; and layout by Joni Robinson1. 1Alaska Department of Natural Resources, Division of Geological & Geophysical Surveys, 3354 College Road, Fairbanks, Alaska 99709-3707 2Alaska Department of Natural Resources, Division of Oil & Gas, 550 W. 7th Ave., Suite 800, Anchorage, Alaska 99501-3560 Division of Geological & Geophysical Surveys Special Report 66 FRONT COVER PHOTOS: TOP: From 1922 to 1962, historic Suntrana Mine operated at this site near Healy, Alaska, using mostly underground mining methods. Usibelli Coal Mine currently mines to the north of Suntrana, using open-pit methods. The prominent black coal bed dipping to the left is near the top of the Suntrana Formation, which contains the thickest seams of subbituminous coal in the Nenana basin. Photo by Jim Clough, September 2008. MIDDLE: View to the east over the persistently steaming summit fumaroles of Makushin Volcano, with Makushin Valley, Unalaska Bay, and Dutch Harbor visible in the distance. Fumaroles are high-temperature steam and gas vents that result from hot or molten igneous rocks releasing gas and boiling off groundwater and melting snow. Makushin Volcano is a viable geothermal prospect near Dutch Harbor. Photo by Janet Schaefer, August 3, 2012. BOTTOM: Natural gas flared from production test of an oil and gas well in Cook Inlet. Photo by Bob Swenson. BACK COVER PHOTO: View from the summit ridge of Mt. Spurr down into the ice cauldron. Bare, warm, steaming rock, part of the turquoise lake, and multiple fumaroles are visible. Photo by Sorokin Maxim. STATE OF ALASKA Sean Parnell, Governor DEPARTMENT OF NATURAL RESOURCES Daniel S. Sullivan, Commissioner DIVISION OF GEOLOGICAL & GEOPHYSICAL SURVEYS Robert F. Swenson, State Geologist and Director Publications produced by the Division of Geological & Geophysical Surveys (DGGS) are available for free download from the DGGS website (www.dggs.alaska.gov). Publications on hard-copy or digital media can be examined or purchased in the Fairbanks office: Alaska Division of Geological & Geophysical Surveys 3354 College Rd., Fairbanks, Alaska 99709-3707 Phone: (907) 451-5020 Fax (907) 451-5050 [email protected] www.dggs.alaska.gov Alaska State Library Alaska Resource Library & Information State Office Building, 8th Floor Services (ARLIS) 333 Willoughby Avenue 3150 C Street, Suite 100 Juneau, Alaska 99811-0571 Anchorage, Alaska 99503-3982 Elmer E. Rasmuson Library University of Alaska Anchorage Library University of Alaska Fairbanks 3211 Providence Drive Fairbanks, Alaska 99775-1005 Anchorage, Alaska 99508-4614 ii EXECUTIVE SUMMARY Economic growth and stability in Alaska hinges partially, if not primarily, on the availability of a mix of affordable and sustainable energy sources. The high and volatile prices of diesel fuel and heating oil have created economic hardship in many areas of Alaska, particularly remote rural communities where these im- ported fuels are the primary source of energy. Developing local energy sources that are not tied to a global market will help diversify the state’s energy portfolio and help facilitate economic growth in many regions. Unfortunately, all areas are not created equal in energy accessibility. The purpose of this report is to summarize existing information concerning locally available, geologi- cally hosted sources of energy across the state. This work considers both geothermal and fossil fuel (oil, natural gas, and coal) resources and is intended to supplement the Alaska Energy Authority’s ongoing analysis of non-geologic energy sources such as hydro, wind, and biomass. Collectively, these summaries provide a basis for ensuring that Alaska’s entire suite of potential energy sources is considered. Although this review does not represent a comprehensive analysis or resource assessment, the information should as- sist local, regional, and statewide efforts to reduce the dependence on diesel for heat and electricity. The potential for locally exploitable natural resources varies widely across the state, and certain regions possess more favorable geologic attributes than others. The chapters of this report are subdivided into the 11 regions recognized by the Alaska Energy Authority (AEA, 2009). For each region, discussion is provided on its potential for geologically hosted energy resources including coal, conventional and unconventional oil and gas, and geothermal resources. Many areas of the state lack sufficient geologic information to reli- ably evaluate local energy potential; summaries of each region conclude with recommendations regarding what additional data or strategies would be most helpful in developing new energy resources for local or regional use. Energy Regions of Alaska Alaska Energy Authority, 2009 iii CONTENTS Page EXECUTIVE SUMMARY ...........................................................iii CHAPTER A: GEOLOGIC REQUIREMENTS FOR EXPLOITABLE FOSSIL FUEL AND GEOTHERMAL ENERGY RESOURCES ...................................1 Introduction ............................................................................. 1 Geologic Requirements for Exploitable Coal Resources .......................................... 1 Geologic Requirements for Exploitable Conventional Oil and Gas Resources ......................... 3 Geologic Requirements for Exploitable Unconventional Fossil Fuel Resources ........................ 4 Coalbed Methane .................................................................... 4 Tight Gas Sands ..................................................................... 5 Shale Gas .......................................................................... 6 Gas Hydrate ........................................................................ 7 Underground Coal Gasification ......................................................... 8 Geologic Requirements for Geothermal Energy Resource ......................................... 9 References Cited and Selected Bibliography .................................................. 10 CHAPTER B: SUMMARY OF FOSSIL FUEL AND GEOTHERMAL RESOURCE POTENTIAL IN ALEUTIANS ENERGY REGION...........................13 Introduction ............................................................................ 13 Geologic Energy Resource Potential. 14 Recommendations ....................................................................... 19 References Cited and Selected Bibliography .................................................. 20 CHAPTER C: SUMMARY OF FOSSIL FUEL AND GEOTHERMAL RESOURCE POTENTIAL IN THE BERING STRAITS ENERGY REGION.............................23 Introduction ............................................................................ 23 Geologic Energy Resource Potential. 24 Recommendations ....................................................................... 29 References Cited and Selected Bibliography .................................................. 30 CHAPTER D: SUMMARY OF FOSSIL FUEL AND GEOTHERMAL RESOURCE POTENTIAL IN THE BRISTOL BAY ENERGY REGION ................................33 Introduction ............................................................................ 33 Geologic Energy Resource Potential. 34 Recommendations ....................................................................... 39 References Cited and Selected Bibliography .................................................. 40 CHAPTER E: SUMMARY OF FOSSIL FUEL AND GEOTHERMAL RESOURCE POTENTIAL IN THE COPPER RIVER–CHUGACH ENERGY REGION ....................43 Introduction ............................................................................ 43 Geologic Energy Resource Potential. 44 Recommendations ....................................................................... 48 References Cited and Selected Bibliography .................................................. 49 v CONTENTS Page CHAPTER F: SUMMARY OF FOSSIL FUEL AND GEOTHERMAL RESOURCE POTENTIAL IN THE KODIAK ENERGY REGION .....................................53 Introduction ............................................................................ 53 Geologic Energy Resource Potential. 54 Recommendations ....................................................................... 58 References Cited and Selected Bibliography .................................................. 58 CHAPTER G: SUMMARY OF FOSSIL FUEL AND GEOTHERMAL RESOURCE POTENTIAL IN THE LOWER YUKON–KUSKOKWIM ENERGY REGION ................63 Introduction ............................................................................ 63 Geologic Energy Resource Potential. 64 Recommendations ....................................................................... 69 References Cited and Selected Bibliography .................................................. 70 CHAPTER H: SUMMARY OF FOSSIL FUEL AND GEOTHERMAL RESOURCE
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