STATE OF THE INDUSTRY MARCELLUSCOALITION.ORG | @MARCELLUSGAS About - - PowerPoint PPT Presentation

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STATE OF THE INDUSTRY MARCELLUSCOALITION.ORG | @MARCELLUSGAS About - - PowerPoint PPT Presentation

Mar 15, 2023 308 likes •658 views

STATE OF THE INDUSTRY MARCELLUSCOALITION.ORG | @MARCELLUSGAS About MSC Our Membership 125 diverse members Associate Producers, midstream and suppliers Members are an integral part of Our Focus the MSC and the More than 95% of

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MARCELLUSCOALITION.ORG | @MARCELLUSGAS

STATE OF THE INDUSTRY

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MARCELLUSCOALITION.ORG | @MARCELLUSGAS

Our Membership

  • 125 diverse members
  • Producers, midstream and suppliers

Our Focus

  • Long-term development
  • End use opportunities
  • Addressing landowner and

public issues

  • Maximizing benefits to secure our

region’s energy future

MARCELLUSCOALITION.ORG | @MARCELLUSGAS

Associate Members are an integral part of the MSC and the industry's robust supply chain. More than 95% of the natural gas in Pennsylvania is produced by MSC member companies. The MSC Board

  • f Directors

consists of 27 major producer and midstream companies in the Appalachian Basin.

About MSC

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Drilling Activity in PA

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Pennsylvania: A World-Class Player in Shale Gas Production

2nd largest natural gas producer in U.S. Over 9,400 producing wells 6.12 Trillion Cubic Feet (2018) 19% of total U.S. natural gas production 33 of 67 counties with at least 1 producing well

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Fueling the Nation

92% 52% 31% 13% 11% 5% 14%

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Pricing

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PA Price Differential

* November 2019 Monthly Bidweek Price – Platts Inside FERC

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Closing the Gap

$1.18 $2.47 $2.62 $3.09 55% 20% 0% 10% 20% 30% 40% 50% 60% $0.00 $0.50 $1.00 $1.50 $2.00 $2.50 $3.00 $3.50 2015 2016 2017 2018

$ per MCF

PA v NYMEX Price 2015 - 2018

PA Price NYMEX Price PA Discount Source: Platts Inside FERC (note: price reflects final annual average for each year – not price fluctuations within the year)

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MARCELLUSCOALITION.ORG | @MARCELLUSGAS

Consumer & Economic Benefits

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Wholesale electric prices down 41% since 2008 Natural gas prices for end-use customers down 56% - 76% since 2008 Average annual savings > $1,100 - $2,200 per household

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Benefiting Consumers

Lower Prices = Customer Savings

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MARCELLUSCOALITION.ORG | @MARCELLUSGAS

Utility PGC Rate / mcf % Change Customer Savings** 2008* 2018* 2008-2018 Annual PECO $13.16 $5.05

  • 62%

$1,460 NFG $10.86 $4.50

  • 59%

$1,145 PGW $13.02 $3.62

  • 72%

$1,692 Columbia $15.94 $3.84

  • 76%

$2,178 UGI $13.26 $5.89

  • 56%

$1,327 UGI Penn $11.68 $4.33

  • 63%

$1,323

Peoples/Equitable

$15.89 $4.53

  • 71%

$2,045

* PUC Purchased Gas Cost (PGC) Rate in Effect Prior to Annual Review: 2008 & 2017 ** Residential heating customer using 15 MCF/month

Benefiting Consumers

Lower Prices = Customer Savings 2008 - 2018

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MARCELLUSCOALITION.ORG | @MARCELLUSGAS

Getting Gas to Market

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MARCELLUSCOALITION.ORG | @MARCELLUSGAS

Moving Gas to Market

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MARCELLUSCOALITION.ORG | @MARCELLUSGAS

Pipeline Project* Investment

(Millions)

Capacity

(MMcf/day)

Adelphia Gateway Undetermined 250 Atlantic Sunrise $2,100 650 Birdsboro $47 79 Constitution $683 650 Eastern Panhandle Exp. $250 47.5 Eastern Shore Exp. Project $98.6 400 Empire North $141 205 Leidy South Undetermined 580 Monaca Line $20 133 Northeast Supply Enhancement $927 400 Northern Access $500 490 Orion $109 135 PennEast $1,000 1,107 Risberg Line $86 55 Supply Header $500 1,511

15 Source: Energy in Depth – Appalachian Basin *FERC Project – approved or under review

Moving Gas to Market

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Moving Gas to Market

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Sophisticated and Well- Funded Opposition

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MARCELLUSCOALITION.ORG | @MARCELLUSGAS

Pipeline Project* Investment

(Millions)

Capacity

(MMcf/day)

Adelphia Gateway Undetermined 250 Atlantic Sunrise $2,100 650 Birdsboro $47 79 Constitution $683 650 Eastern Panhandle Exp. $250 47.5 Eastern Shore Exp. Project $98.6 400 Empire North $141 205 Leidy South Undetermined 580 Monaca Line $20 133 Northeast Supply Enhancement $927 400 Northern Access $500 490 Orion $109 135 PennEast $1,000 1,107 Risberg Line $86 55 Supply Header $500 1,511

19 Source: Energy in Depth – Appalachian Basin *FERC Project – approved or under review

Moving Gas to Market

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Benefiting Consumers

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Source: U.S. Chamber of Commerce – Global Energy Institute 2018 Average Retail Electricity Prices

Not…Benefiting New England Consumers

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Wasn’t Always that Way

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Operation Paukenschlag “American Shooting Season”

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The Tulsa Project

Big Inch – 24” line stretching 1254 miles

  • Over 300k barrels of crude a day

Little Inch – 20” line stretching 1475 miles

  • Over 200k barrels of gasoline a day
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MARCELLUSCOALITION.ORG | @MARCELLUSGAS

Engineering Marvel

16,000 workers Big Inch construction: 8/3/42 – 8/14/43 Little Inch construction: 4/23/43 – 10/8/43

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ENERGY TRANSFER

$456M SPENT TO MAINTAIN AND IMPROVE INFRASTRUCTURE ASSETS IN 2018 +86K MILES OF ENERGY INFRASTRUCTURE NATIONWIDE ~30% OF THE NATION'S NATURAL GAS AND CRUDE OIL MOVED ON ET PIPELINES

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Community Engagement

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