WESTERN ENERGY CORRID R Western Energy Corridor Executive Summary he energy resources con- In 2009, WEC oil production was Coal production within the WEC Significant quantities of uranium centrated along the Rocky approximately 2.3 million barrels was approximately 620 million found in the WEC supply a number Mountains and northern per day, with continued produc- short tons (~560 million metric of nuclear power plants interna- Tplains in Canada and the United tion growth anticipated from the tons) with approximately 15 billion tionally. Saskatchewan currently States (U.S.) are world class, Alberta oil sands and the Bakken short tons (14 billion metric tons) dominates uranium production and as measured by their diversity, Formation. Proven reserves, domi- in recoverable reserves from active hosts the largest uranium mine in magnitude, and longevity. This nated by Alberta oil sands, cur- mines in 2009. WEC coal supplies the world. The province contrib- area, informally referred to as rently place the region third in the much of the electricity produc- uted 18% of world production in the Western Energy Corridor world with approximately 170 bil- tion for Canada and the U.S., and 2009, and is complemented by lion barrels. Undeveloped potential the WEC hosts the largest coal- (WEC), is strategic to meeting growing production south of the oil resources within the WEC are producing area (the Powder River U.S.-Canada border. the increasing energy demand in estimated at over 4 trillion barrels Basin) in Canada and the U.S. Canada, the U.S., and interna- (in-place). This includes oil shale Although large amounts of WEC tionally. These energy resources, reserves in the Green River Forma- The WEC also contains several raw energy resources are exported, collectively, also provide a tion that spans parts of Wyoming, large river systems, which host these resources also contribute to foundation for regional economic Colorado, and Utah. a number of hydropower dams local electricity and transportation development, including a plat- within and outside the WEC. Brit- fuel production. In 2009, electric- form for moving the region’s en- Natural gas production in the WEC ish Columbia alone produced over ity generation within the WEC was ergy products up the value chain. was approximately 10.5 trillion cu- 62 GWh of hydropower in 2009. over 370 million MWh. Of this, To provide a foundation and bic feet (297 billion cubic meters) Significant electrical generation more than 70% came from fossil stimulus for a bi-national regional in 2009, which places the WEC potential remains untapped, espe- energy plants (primarily coal and dialogue, Idaho National Labora- third in natural gas production cially in the north. natural gas), approximately 24% tory (INL) created this document worldwide. Although conventional from hydropower, and approximate- with input from representatives of gas production is declining, new Other renewable energy resources, ly 4% from other renewables with participating states and provinces. techniques and technological ad- such as some of the greatest wind no contribution from nuclear energy. Further data was gathered from vances have enabled development and bioenergy potential in Canada reliable internet and print sources of unconventional gas resources and the U.S., are available, but Transportation fuels production and compiled to provide an over- within the area (i.e., shale gas, remain mostly untapped in the in the WEC is primarily from oil view of energy resources within tight gas, and coal bed methane), WEC. Efforts are underway to refining, with small amounts of the WEC. increasing overall natural gas also develop geothermal and solar biofuels (i.e., biodiesel and etha- production. potential within the region. nol). Plans are underway to build Western Energy Corridor Executive Summary coal-to-liquids (CTL) and liquid wildlife, and climate change. In ad- WEC states and provinces are criti- natural gas (LNG) plants. dition, energy resources are critical cal players in supplying the U.S. for developing other natural re- and Canada with energy resources Energy delivery infrastructure is sources in the region such as water, this century and beyond. Given rapidly expanding. Oil and gas minerals, agricultural, and fertil- the importance of these resources pipelines are both planned and izer. Also, technological innovation there is an unprecedented opportu- built to provide access from newly continues to play a pivotal role in nity for these states and provinces developed fields such as the Bak- accessing energy resources and ken Formation to both traditional mitigating environmental impacts. The Western Energy Corridor contains a world-class and nontraditional markets, includ- And energy demand and invest- ing Asia. There are also plans to ment from Asia will continue to concentration of energy resources critical to ensuring expand CO pipelines to enhance impact markets around the world. 2 regional, U.S., Canadian, and international energy security oil recovery and CO2 sequestration. New transmission lines are being The outlook for the WEC’s eco- and economic development. The states and provinces planned and built to access and nomic prosperity is both timely integrate more remote renewable and promising. Vast natural within the Corridor have an unprecedented opportunity energy sources, such as wind. Rail resources, strong commitment expansion continues to be essen- to economic development and a to collaborate with each other relative to challenges and tial to coal development. New rail pledge to maintain quality of life lines could also support delivery place the WEC in a unique posi- opportunities associated with developing these resources. of biomass feedstock as well as tion to capitalize on its riches and product from the Alberta oil sands become an international leader to collaborate and more effectively and the Bakken Formation to new in energy resource development. address pertinent energy chal- markets. Realizing the potential for devel- lenges and opportunities including opment, distribution, and utiliza- policy, regulation, technology de- Sustainable energy development tion of the WEC’s energy resources ployment, and regional economic within the WEC relies on a num- will present both opportunities and development. Such an approach ber of interdependent factors. For challenges that will require more may be advantageous to these low- example, energy development sophisticated and regionally inte- population jurisdictions given their increasingly requires mitigating grated approaches, enabling policy, sometimes limited political influ- impacts on air, water, landscape, and continued investment. ence at the national level. Western Energy Corridor Contents Contents Electricity Power Generation...22 Energy-Resource Nexus.......38 Acronyms...................1 Coal-Fired Electric Power Agriculture ..............38 Generation...............23 Introduction .................2 Fertilizer Production . .38 Natural Gas . 24 Fossil Energy Resources .......4 Water Resources . 39 Renewable Energy.........24 Crude Oil.................4 Fossil Energy Development . 39 Nuclear Energy . .25 Conventional Crude Oil . .5 Influences on WEC Energy Liquid Fuels Production.......26 Development ...............40 Unconventional Oil Resources . 5 Petroleum Refineries and Demand .................40 Upgraders ...............26 Natural Gas . .6 Energy Supply............40 Liquid Natural Gas Energy & Environment .....41 Conventional Natural Facilities ................26 Gas ...................7 Existing and Emerging Coal-to-Liquids ...........27 Unconventional Export Markets ...........41 Biofuels .................27 Natural Gas.............7 Price ...................41 WEC Energy Delivery ........28 Coal ....................9 Investment...............41 Electricity Transmission ....28 Renewable Energy Resources ..12 Infrastructure.............42 Natural Gas Pipelines ......29 Hydropower..............12 Technological Innovation ...42 Oil Pipelines .............31 Wind ...................13 Research Assets .............42 CO Pipelines ............32 Solar ...................15 2 Summary ..................44 Rail ...................34 Biomass.................16 Appendix A—References .....48 Energy and Environment ......36 Geothermal ..............17 Appendix B—Tables . .57 Air ...................36 Tidal/Ocean Energy........19 Glossary ...................73 Uranium Resources ..........20 Water ...................36 Landscapes and Wildlife ....37 Climate Change...........37 Western Energy Corridor Acronyms AECO Alberta Energy Company CSUG Canadian Society for IPPBC Independent Power SAGD steam-assisted gravity (trading symbol) Unconventional Gas Producers of British drainage ARRA American Recovery and CTL coal-to-liquids Columbia TCF trillion cubic feet Reinvestment Act \ DOE Department of Energy U308 triuranium octoxide 2 ATR Advanced Test Reactor EEI Edison Electric Institute kWh/m kilowatt-hours per square UHOP Utah Heavy Oil Program meter bbl/d barrels per day EIA Energy Information USGS United States Geological BCF billion cubic feet Administration \ Survey BCFD billion cubic feet per day EOR enhanced oil recovery MMCFD million cubic feet per WCI Western Climate day BDt/yr bone dry metric tonnes EPA Environmental Initiative per year Protection Agency MMst million short tons WEC Western Energy Corridor BOE barrel of oil equivalent EPAct Energy Policy Act MRO Midwest Reliability WECC Western Electricity Organization BP British Petroleum FERC Federal