Workshop HH Ohios Natural Gas Infrastructure: Powering - - PDF document

Workshop HH

Ohio’s Natural Gas Infrastructure:

Powering Manufacturers With Energy Savings

Wednesday, February 19, 2020 1:45 p.m. to 3:00p.m. .

Biographical Information

Chris Ventura, Midwest Executive Director, Consumer Energy Alliance 21 E. State St., Suite 2200, Columbus, OH 43215 614-524-0100 cventura@consumerenergyalliance.org Chris Ventura, Executive Director for Consumer Energy Alliance – Midwest is based out

• f Columbus, Ohio. In this position, Ventura works with state policymakers, trade

associations, and community groups to foster a dialogue around policies which ensure affordable, reliable energy from all energy sources for families, farmers, and businesses. Prior to joining CEA, Ventura served as Senior Project Manager for the Ohio House of Representatives under Speaker William Batchelder. Ventura also served as Legislative Aide and Clerk of the Policy and Legislative Oversight Committee for State Representative Michael Dovilla. Ventura provided strategic counsel on policy issues ranging from electricity generation and manufacturing to cybersecurity and travel and tourism. He holds a Master’s degree in Public Administration from The American University with a focus on State / Local Government and Management Consulting and a B.A. in Adolescent Young Adult Social Studies Education from Baldwin Wallace University. Brydon Ross, Vice President of State Affairs, Consumer Energy Alliance 9900 Corporate Campus Drive, Suite 3000, Louisville, KY 40223 859-685-1023 bross@consumerenergyalliance.org Brydon Ross is the Vice President of State Affairs for Consumer Energy Alliance. Before joining CEA, he served as the director of energy and environmental policy for the Council

• f State Governments and as the Interim Executive Director of the Association of Air

Pollution Control Agencies. Ross worked in the private sector as the director of government relations for the Association of Oil Pipelines in Washington D.C. and for nearly 10 years was a senior staff person in the U.S. Senate; specializing in energy and environmental issues for U.S. Senators George LeMieux and Mel Martinez of Florida and Elizabeth Dole of North

• Carolina. He also staffed the Senate Committee on Environment and Public Works and

he began his Capitol Hill career with his home state Senator Tim Hutchinson of Arkansas. He has spent a significant portion of his career advising private sector leaders, elected federal officials and other policymakers on energy and environmental policies impacting the nation’s infrastructure, energy sector and markets. Ross has a master’s degree in national security and strategic studies from the U.S. Naval War College and a bachelor’s degree in history from Centre College.

Biographical Information

Jackie Stewart, Director, External Affairs Encino Energy, 2321 Energy Drive Louisville Ohio 44641 (440) 462-3859 jstewart@encinoenergy.com Jackie Stewart is the Director of External Affairs for Encino Energy. Based in Ohio, Ms. Stewart leads federal and state government affairs, corporate responsibility, branding, and external communications for Encino. Encino is a private onshore U.S. oil and gas acquisition, exploration, and production company. Encino manages Encino Acquisition Partners (EAP), a multi-billion-dollar acquisition partnership between Encino and Canada Public Pension Investment Board headquartered in Houston, Texas. Formed in 2017, Encino takes a long-term approach to acquiring and developing high- quality assets onshore in the lower 48 United States. Encino targets large properties with well-established production and a large, low-cost development inventory. The company closed its first acquisition in 2018 with the $2 billion purchase of Chesapeake Energy’s Ohio Utica assets. Encino’s Utica HQ is located in Stark County. Prior to Encino, Ms. Stewart was Managing Director at FTI Consulting’s Strategic Communications practice, specializing in Energy & Natural Resources representing national trade groups and corporate clients in the energy space. Prior to FTI, Ms. Stewart spent a decade working in senior staff roles for members of the U.S. Senate and U.S. House of Representatives and even logged some time working for the PGA TOUR. Over the past few years she was named to the Columbus Business First “People to Know in Energy” list, received the Southeastern Ohio Oil & Gas Association Workhorse Award, and an honorary appointment into the Plumbers and Pipefitters Local 396. In addition,

• Ms. Stewart authored several nationally recognized reports and articles related to Utica

Shale and is a frequent keynote speaker at conferences across the country.

• Ms. Stewart earned a Bachelor of Arts degree from the University of Mount Union in

Political Science and History. Mrs. Stewart serves as the Vice Chairwoman of the Ohio Oil and Gas Energy Education Program (OOGEEP) and was recently appointed to the Executive Committee of the Stark Economic Development Board (SEDB). She also serves on several boards and committees for the Canton Regional Chamber, the Youngstown Regional Chamber, and the Ohio Chamber of Commerce.

Biographical Information

James E. Eck, Vice President & General Manager Ohio & West Virginia Distribution Operations Dominion Energy Ohio, 1201 East 55th Street, Cleveland, Ohio 44103 216-736-6199 Fax: 216-736-6262 jim.e.eck@dominionenergy.com Jim Eck joined Consolidated Natural Gas in Pittsburgh in 1998 as corporate contracts

• manager. After merging with Dominion in 2000, he was named director–Strategic

Sourcing in Supply Chain Management. He became director–Total Compensation Strategies in Human Resources in 2003, responsible for strategy and operations associated with benefits, compensation, payroll and employee treatment supporting acquisitions and divestitures. In November 2007, Jim became vice president-Human Resources and was named vice president–Business Development in July 2009. In January 2016, he was named vice president–Business Development and Merchant Operations, Dominion Generation, and vice president–Ohio & West Virginia Distribution Operations in July 2017. He assumed his current post in January 2018 and is responsible for overseeing all aspects of Dominion Energy Ohio’s natural gas distribution company, including gathering, storage, distribution and transmission assets, and Dominion Energy West Virginia. Jim previously held numerous supply and procurement positions in the nuclear industry. He serves on the American Gas Association Leadership Council; Case Western Reserve University Corporate Visiting Committee; and on the boards of directors of Greater Cleveland Partnership, and The Diversity Center of Northeast Ohio. Jim received his bachelor’s degree in industrial engineering from the University of Illinois.

Ohio’s Natural Gas Infrastructure: Pow ering Manufacturers With Energy Savings

Ohio Energy Management Conference February 19, 2020

CONSUMER ENERGY ALLIANCE Consumer Energy Alliance

The mission of CEA is to improve consumer understanding of our nation’s energy security, including the need to reduce reliance on imported oil and natural gas, maintain reasonable energy prices for consumers, and continue efforts to diversify our energy resources.

Oil, Gas & Nuclear Association Chamber of Commerce Consumer Discretionary Services Trucking/Transportation/Logistics Manufacturing/Chemicals Independent Oil & Gas/Support & Services Engineering/Machinery/Construction Other Agriculture/Food & Beverage Power Generation/Utility

Membership Makeup by Industry

2

CONSUMER ENERGY ALLIANCE Who We Are

Consumer Energy Alliance was formed in 2006 on the premise that it would focus

• n improving the public’s understanding of energy.

CEA is now a leading advocacy organization for energy education and sound energy policies by talked to communities here and across the nation.

280+

Affiliate Members

550,000+

Individual Members

Broad membership of farmers, manufacturers, labor, transportation, plastics, local chambers, small businesses, families 65% are consumers CEA Board includes: Virginia Manufacturing Assn. Caterpillar Nucor Steel General Electric Wortham Insurance Airlines 4 America National Assn. of Convenience Stores

250+

Campaigns

CEA has managed over 250 local, state and national campaigns in the past 14 years.

Chapters

National & Local

National Brand with Regional Chapters CEA Gulf Coast CEA Midwest CEA Mid-Atlantic CEA Mid-Continent CEA Northeast CEA Rockies CEA Southeast CEA-AK, CEA-FL 3

CONSUMER ENERGY ALLIANCE

• Amplifying the credibility of pro-

energy positions

• Countering emotional

arguments by using facts and emotion to lead public to end points

• Building relationships with

consumers, labor, businesses, landowners, stakeholders, and public officials

• Bringing new voices to the table
• n energy!

Why CEA?

4

CONSUMER ENERGY ALLIANCE What We Do

5

• Develop & Manage advocacy campaigns to educate the public and elected
• fficials to support sensible, realistic energy policies.
• In the past 14 years, CEA has managed ~250 local, state and national

campaigns.

• CEA remains responsive to the requests of our member

companies, who inform our actions based on their direction. CEA’s efforts are designed to:

• Reach the public to improve their understanding

about energy;

• Create an economy-wide coalition;
• Work within & outside of state capitals;
• Develop strong communications strategies; and
• Think long-term, beyond just one news cycle.

CONSUMER ENERGY ALLIANCE

Energy Solutions for Families, Farmers, and Local Businesses

The mission of CEA is to improve consumer understanding of our nation’s energy security, including the need to reduce reliance on imported oil and natural gas, maintain reasonable energy prices for consumers, and continue efforts to diversify our energy resources. Focus on Families and Small Business

• The most vulnerable Americans need affordable energy the most. For those

families living at or below the poverty line, energy consumes between 20 and 45 percent of their income. Environment

• We agree on the environment. The industry MUST be held to the highest

standard. Non Partisan

• Energy is a non partisan issue. It affects every man, woman, and child in this

country, providing opportunities for upward mobility. Solutions Oriented

• Can you really live with what you are asking for? Despite claims from anti-

energy groups, traditional fuels are an essential part of our lives every day. Without a balanced energy policy, and without energy infrastructure, there would be negative consequences for our entire society.

6

CONSUMER ENERGY ALLIANCE

• The Utica Shale accounts for almost all of

the rapid increase in Ohio's natural gas production, which was more than 28 times higher in 2018 than in 2012.

• Ohio is the eighth-largest ethanol-

producing state in the nation, supplying about 550 million gallons of the biofuel per year.

• Ohio has the seventh-largest crude oil-

refining capacity in the nation, and the state's four refineries can process nearly 600,000 barrels of oil per calendar day.

• Ohio is the third-largest coal-consuming

state in the nation after Texas and Indiana, and nearly 90% of the coal consumed in Ohio is used for electric power generation.

• Ohio’s two nuclear power plants, located

along Lake Erie, supplied about 15% of the state’s net generation in 2018.

Ohio Energy Snap Shot

7

CONSUMER ENERGY ALLIANCE The Appalachian Basin – Pow ering the Future

8

CONSUMER ENERGY ALLIANCE The Appalachian Basin – Pow ering the Future

9

CONSUMER ENERGY ALLIANCE The Appalachian Basin – Pow ering the Future

10

CONSUMER ENERGY ALLIANCE

Benefits of Natural Gas Production to Energy Consumers and Job Creators

11

• Examined Three States
• Ohio - $40.2 billion in total savings
• Pennsylvania – $30.5 billion
• West Virginia - $4.3 billion
• How have these states benefited from energy

development

• Cost savings for residential, commercial, industrial

end users

• Core shale industry job growth
• Additional benefits

CONSUMER ENERGY ALLIANCE Overall Consumer Savings

12

$0 $500,000,000 $1,000,000,000 $1,500,000,000 $2,000,000,000 $2,500,000,000 $3,000,000,000 $3,500,000,000 $4,000,000,000 $4,500,000,000 $5,000,000,000 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016

Consumer Savings Per Year

Residential Commercial Industrial

CONSUMER ENERGY ALLIANCE

• 7.5 percent increase in

population

• 6.5 percent increase in

vehicle miles traveled

• 118.9 percent increase in

the state’s gross domestic product

• 28 fold increase in natural

gas production

An Era of Unprecedented Economic Grow th

13

Figure 2: Ohio Dry Natural Gas Production (Source: Energy Information Administration)

CONSUMER ENERGY ALLIANCE

From 1990 to 2017, Ohio’s emissions of key pollutants have decreased across the board:

• 72 percent reduction in nitrogen oxides

(NOx)

• 94 percent reduction in sulfur dioxide

(SO2)

• 74 percent reduction in carbon monoxide

(CO)

• 66 percent reduction in volatile organic

compounds (VOCs)

• 13 percent reduction in fine particulate

matter (PM2.5)

• 21 percent reduction in coarse particulate

matter (PM10)

• 23 percent reduction in ammonia (NH3)

Additionally, from 1990 to 2016, Ohio’s carbon dioxide (CO2) emissions declined by 16 percent.

With Declining Emissions

‐120% ‐100% ‐80% ‐60% ‐40% ‐20% 0% 20% 40% 60% 80% 1990 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017

Declining Ohio Emissions 1990‐2017

CO NH3 NOX PM10 PM25 SO2 VOC CO2 Figure 1: Declining Ohio Emissions 1990‐2017 (Source: U.S. Environmental Protection Agency and Energy Information Administration.) NOTE – EIA data only available through 2016

14

CONSUMER ENERGY ALLIANCE Eliminating Consumer Choice Across the Country

15

Brookline bans natural gas, heating

• il pipes for new

buildings: ‘Gas is the past’ Environmentalists to California Restaurants: Drop Lawsuit Over Berkeley Gas Ban South Euclid Council continues talks on setting clean energy goals for the city, residents; education deemed key SF bans natural gas in new city buildings, plans all construction ban New construction natural gas ban trend appears on East Coast

CONSUMER ENERGY ALLIANCE Closing Thoughts and Key Takeaw ays

• We’re witnessing the greatest story never told
• Energy costs for Ohio’s families, local businesses, and manufacturers

have decreased by $40.2 billion just in the past ten years

• Emissions in Ohio and across the nation have been decreasing

steadily for the past 30 years

• Polling shows Americans perceive the quality of the environment in our

country is getting worse – despite actual downward trend in air emissions in Ohio and around the country

• As groups continue to focus on hampering not just Ohio energy production,

but also end use, we remain committed to working with our partners to educate the public with facts and advocating for commonsense energy solutions.

16

CONSUMER ENERGY ALLIANCE

Contact Information: Brydon Ross bross@consumerenergyalliance.org

Questions?

17

24th Annual Ohio Energy Management Conference

Jackie Stewart – Director External Affairs

19

Safety Moment

Know your exits…muster station

20

Encino is committed to…

• Operate sustainable, safe, and environmentally

conscious operations

• Be an outstanding corporate citizen with active

participation in our communities

• Invest in our team and help them reach their full

potential

• Manage our assets to maximize return for our

investors, without undue risk of loss

Slide Subtitle

• Private Company
• Corporate HQ: Houston, TX
• Utica HQ: Stark County, OH
• Over 900,000 Net Acres
• ~55,000 Lessors
• ~70,000 Lease Tracts
• ~6,000 Royalty Checks
• Over 900 Operated Wells
• $2 Billion Acquisition (2018)

21

Key Facts

Encino continues to invest in Ohio because of its proven Utica Shale reserves, pipeline infrastructure, and business‐friendly environment.

2019 Ohio Economic Impact

143 Permanent Ohio Employees:

(Retained over 100 jobs and added over 30 new positions) *4,000 Indirect jobs supported by Encino through hundreds of contractors)

~$9.7 Million Payroll

(Largest employer in Louisville)

~$11 Million Ohio Taxes Paid

(Severance, Ad Valorem, CAT, Property, and Income)

~$75 Million Royalty Checks Paid to Landowners

(May‐October only)

~$275,000 Community Investment & Sponsorships

22

Slide Subtitle

Our Role in the Process

23

Slide Subtitle

US Dry Shale Gas Production 2004‐2019

24

Slide Subtitle

US Oil & Gas Prices Since 2010

25

Slide Subtitle

26

Source: ODNR

Slide Subtitle

27

Ohio’s Shale Gas Competitiveness

Creates Opportunities Locally Enables U.S. Growth and Security Globally

28

Slide Subtitle

• Ohio power generation absorbed only a fraction of new production

since 2011

• Prolific Appalachian gas resource has significantly reduced natural gas

prices and reversed historical pricing trends that influence gas flow

• For future production, Utica producers rely on encouraging regional

new gas demand, access to new demand and premium markets along the Gulf Coast

Ohio 1,000 2,000 3,000 4,000 2011 2018 2025

Ohio & Pennsylvania Power Demand

(MMcfd)

Pennsylvania

Source: Wood Mackenzie Source: IHS

29

Local Opportunities

4 P’s of Progress  Prolific Resources  Policy conducive to investment  Price attractive to both supply and demand  Production growth Tools for Continued Success Encourage more regional demand and improving access to markets; for example:

• 1. Encourage new gas‐fired

generation

• 2. Support the development of

new petrochemical plants

• 3. Build‐out distribution systems

to supply more commercial and residential customers

Ohio Checks All the Boxes

30

31

Thank you for the

• pportunity to speak today!

Ohio’s Natural Gas Infrastructure: Powering Manufacturers with Energy Savings

Jim Eck, Dominion Energy Gas Distribution, Vice President & General Manager, Ohio & West Virginia Distribution

Natural Gas: Ohio’s Home Field Advantage

Ohio is one of the nation’s leading natural gas producing states New tech and Marcellus & Utica Shale responsible for abundant supplies at lower prices for Ohio customers $25.3 billion saved by Ohio commercial & industrial customers between 2006-2016 Abundant supplies + reasonable prices = new industrial customers

Annual Throughput, 2019: 336.3 bcf

Dominion Energy Ohio: Delivering Clean, Safe, Economical Natural Gas

We serve 1.2 million customers in Cleveland, Akron, Ashtabula, Canton, Lima, Marietta, New Philadelphia, Warren, Wooster and Youngstown. Founded in 1898 as The East Ohio Gas Company, now part

• f the Gas Distribution Group
• f Richmond-based

Dominion Energy, Inc.

More than 1,600 employees.

One

Maximizing the benefits of existing infrastructure, and enhancing the existing infrastructure to serve major new customers.

Two

Working with government and third- party pipeline builders to increase the amount of gas delivered to areas of constrained supply, thus enabling new industrial development.

Three

Thinking outside the box to explore the potential for tapping into nearby new interstate pipelines,

• riginally built to send

Ohio shale energy to

• ut-of-state markets,

to accommodate suburban growth markets.

Dominion Energy Ohio Is Using an “All of the Above” Approach to Deliver Sufficient Natural Gas Supplies to Meet the Needs of New and Existing Customers:

Maximizing Existing Infrastructure, Eastwood Commerce Center, Wood County

• NSG Glass North America, Inc. recently

announced it would build a $250 million glass production facility. The 500,000- square-foot plant will produce transparent conductive oxide (TCO) glass for the growing solar power market. The plant will create 150 jobs.

• Home Depot built a 1.6 million-square-

foot e-commerce distribution facility. The $130 million project created 700 new jobs.

Enhancing Existing Infrastructure

• Dominion Energy Ohio built a 5.2

mile, 24-inch lateral line from its Austintown Station to fuel Lordstown Energy Center.

• Lordstown Energy Center, began
• perations in October 2018.
• Provides clean, natural gas-powered

electrical generation, replacing retired coal-fired power plants.

• Cleaner-burning natural gas electrical

generation reduces Ohio’s greenhouse gas emissions.

Thinking Outside the Box to Meet Increase Natural Gas Demand for Today…and Tomorrow

Conventional Options

Upsizing pipelines and upgrading pressures on long stretches of our existing infrastructure Bringing in additional distribution capacity

Alternatives

Tapping Dominion Energy Ohio transmission line Tapping into interstate pipeline, originally designed to carry abundant Ohio shale gas supplies out of state.

GROWTH CONSTRAINTS