Energy Plan 2013-2017

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Energy Plan 2013-2017 Energy ENERGY PLAN 2013-2017 Letter from the Director DEAR READER, The Division of Energy was created in The inspiration for this plan has 2007. Our first mission was to prepare come from the leadership and vision West Virginia’s first five-year energy of Governor Tomblin. Analysis and plan. The document that follows is West projections for the plan were contributed Virginia’s second five-year plan, building by Tom Witt, former director of the on the continued development of West Bureau of Business and Economic Virginia’s fossil, renewable and energy Research at West Virginia University; Cal efficiency resources. Kent, former vice president of Business and Economic Research at Marshall Energy stands as one of the principal University, and Christine Risch, director strengths of West Virginia’s economy. of research for the Center for Business Our state is taking a lead in meeting and Economic Research at Marshall the country’s energy needs through University. The Division of Energy thanks traditional resources and advanced them for their time and effort on this technology. The preparation of this project. energy plan enables one to appreciate both the magnitude of our resources We would also like to thank the citizens and the national dependence on West of West Virginia who attended three Virginia energy. Our approach is truly public meetings to offer comments on an all-of-the-above strategy including the plan, as well as those who submitted advanced coal technologies, natural gas comments online. Those can be accessed production and utilization of biomass, at www.energywv.org/publiccomments. hydro, wind and solar power. By working together, we can develop Our resources have and will continue and implement an energy plan for the to compete in a free-market economy benefit of all West Virginians. in compliance with environmental regulations. Our energy resources can be Sincerely, affordable, reliable and sustainable. They can power our nation in the twenty-first century and beyond. We will be a leader in fostering an innovative clean energy economy. Jeff Herholdt Director, West Virginia Division of Energy P REFACE by Governor Earl Ray Tomblin AS ONE OF THE NATION’S TOP energy Our coal transportation infrastructure producing states, West Virginia shoulders is vital to our success. One out of every a lot of responsibility when it comes to two tons of coal exported from America fueling our state and nation. Together, comes from West Virginia and our coal members of our energy sector — coal, is shipped to 30 countries across the oil, natural gas, hydro and wind power, world, throughout Europe and Asia. In and more, share this responsibility 2011, West Virginia led the nation in coal so we can build a brighter future for exports, $5.3 billion worth, which helped West Virginia. West Virginia is blessed our state’s exports as a whole reach to have a diverse, strong, and growing historic highs. The world wants our coal energy sector as energy stands as one and needs our coal. According to the of the traditional strengths of the state’s International Energy Agency’s Medium- economy. We continue to embrace Term Coal Market Report, by 2017 coal is innovative ideas evolving our long- expected to rival oil as the as the world’s established energy resources to meet top energy source. today’s expectations. We’re also making the most of the opportunities associated “This report sees that trend with our abundant natural gas. Coal continuing. In fact, the world will continues to enable West Virginia to be a burn around 1.2 billion more tons of national leader. For our families, economy coal per year by 2017 compared to and communities, the many benefits we today — equivalent to the current enjoy today are directly related to our coal consumption of Russia and the energy sector and its evolving abilities. United States combined. Coal’s share of the global energy mix continues to West Virginia has been a leader in grow each year, and … coal will catch America’s energy program for years, oil within a decade,” said IEA executive and today our 20,000 miners produce director Maria van der Hoeven. approximately 13 percent of this country’s coal, which is more than any Our more than 500 mines are often other state in the East or Midwest. among the largest private employers in a West Virginia has been the benefactor majority of the 30 West Virginia counties of strong energy markets, strong in which they operate. West Virginia’s pricing and world demand which has coal miners are the best in the world and contributed to our fiscal stability. During are among the highest-paid industrial the global recession, West Virginia workers in our state. They are safe, has consistently maintained balanced caring, professional and true craftsmen budgets with annual surpluses, resulting who work every day to meet our energy in “rainy day” funds of unprecedented needs, maintaining our standard of living levels. I believe we must do everything in an environmentally responsible and possible to sustain our role as an energy safe manner. leader in this nation, protecting our skilled workers, providing clear-cut rules West Virginia’s 16 electric-generating and expectations while encouraging plants utilize more than 32 million tons investment so we can take full advantage of coal each year to make some of the of our proximity to high-demand areas lowest-cost, most reliable electricity and outbound export points on the in the country. Because 97 percent of eastern seaboard and the Gulf coast. our electrical needs in West Virginia West Virginia State Energy Plan 2013–2017 i are met with this coal-fired generation, Long before West Virginia began our citizens have some of the lowest producing enough energy for our nearly electricity rates in America. Our two million residents and millions of productive energy sector enables our fellow Americans, three families made state to rank third in the country in net a monumental discovery. In the 18th interstate sales of electricity and our century, these three families found industrial rates are among the lowest oil and gas deposits among our hills. in the east. This protects our people I believe our resources and skills have and their lifestyles. While 44 percent of evolved beyond our ancestors’ dreams— our yearly 80 million MWh (megawatt- and dreams of those who worked in the hours) of generation is used here in natural gas industry less than a decade West Virginia, the remaining 56 percent ago. According to the West Virginia of that electricity is exported to other Geological and Economic Survey, in 2011 states. In fact, West Virginia stands the state’s oil and natural gas production out as being one of only two states in was the highest on record1 and leading the Mid-Atlantic Region that is a net indicators suggest 2012 exceeded producer of electricity. We make more those numbers. In conjunction with electricity than we need with our plants Pennsylvania, West Virginia accounts for being in compliance with the nation’s more than 85 percent of the total natural Clean Air Act. Longview Power Plant in gas produced in the northeastern United Morgantown is the cleanest and most States. In just five years, natural gas efficient coal burning power plant in production in the Northeast increased the Eastern United States. And it was from less than two billion cubic feet per conceived, built and is operated every day in 2007 to more than nine billion day by West Virginians, burning local cubic feet per day in 2012. With our coal to make low-cost power that is abundant natural gas, West Virginia is dispatched across the grid 24 hours a fortunate to be able to export nearly 60 day, seven days a week. West Virginia’s percent of the gas we produce to the rest electric-generating infrastructure is of the nation. With the discovery of the leading by example and will never be Marcellus and Utica Shale deposits, our duplicated in any other state, particularly potential is astounding. in today’s world. Billions of dollars of risk capital have Since records have been kept, we been invested in the Marcellus Shale have mined more than 14 billion tons fields of West Virginia and regionally. of coal and, according to the experts, Likewise, billions of dollars of investment we have some 50 billion tons of coal in necessary ancillary activities such as remaining to be mined. However the natural gas processing and fractionation challenges are increasing and real. In plants, compressor stations, pipeline order to retain its viability in domestic infrastructure, and even professional and world markets, West Virginia’s coal services from engineering firms, industry must become more efficient and accounting firms, law firms, and competitive. The industry has pledged its environmental specialists have followed. commitment to operating in the safest There is a true renaissance going on in and most efficient manner possible with the Marcellus Shale fields of northern and uncompromising detail to environmental north central West Virginia. Natural gas quality. As a vital component to our industry-related jobs and investments energy sector, a continuously strong and helped drive our economy for the past robust coal industry will help us meet the demands of foreign as well as domestic markets, and that of our families. 1 West Virginia Geological and Economic Survey, 2013 ii West Virginia Division of Energy four years and the industry’s impact is and close by, there is every reason to expected to strengthen as development believe old manufacturing sites in West of the shale deposits progresses. Virginia can become active; and there is every reason to believe non-resident We are making sure those in search of manufacturers will relocate to the region natural gas responsibly undertake their to take advantage of the availability of efforts in accord with a body of law that is raw materials they must have to produce reasonable, clear, responsive to the need their goods — everything from plastic to conserve and protect our environment bags to parts for automobiles and while allowing for the important function everything in between.
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