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Utahs Energy Landscape

by Michael D. Vanden Berg

PUBLIC INFORMATION SERIES 95 UTAH GEOLOGICAL SURVEY a division of DEPARTMENT OF NATURAL RESOURCES 2009

Utah Geological Survey

Utahs Energy Landscape


by Michael D. Vanden Berg

TABLE OF CONTENTS
Introduction ............................................................................................................................................1 Overview ................................................................................................................................................. 2 Coal .........................................................................................................................................................6 Crude Oil and Petroleum Products .....................................................................................................12 Natural Gas .......................................................................................................................................... 19 Renewable Resources .......................................................................................................................... 25 Unconventional Petroleum ResourcesOil Shale and Tar Sands ................................................... 32 Uranium ................................................................................................................................................33 Electricity ...............................................................................................................................................35

Cover photo captions

2 4

6 8

7 9

10

1. Utah State Energy Program (USEP) staff constructing a 50-meter anemometer tower. (Photo by Jason Berry) 2. Coal loadout at the Horizon mine. 3. Utah oil shale sample. 4. The Hatch geothermal electric plant. (Photo courtesy of Raser Technologies) 5. Spanish Fork wind farm. 6. Longwall mining machine at the Deer Creek coal mine. 7. Coal loadout at the SUFCO mine. 8. Hunter coal-burning power plant. 9. Swaner Nature Center in Park City. (Photo courtesy of Swaner Nature Center) 10. Crude oil pump jack from the Aneth oil field.

For more information, contact: Michael D. Vanden Berg Project Geologist Energy & Minerals Program Utah Geological Survey 801-538-5419 ISBN: 1-55791-823-6

Although this product represents the work of professional scientists, the Utah Department of Natural Resources, Utah Geological Survey, makes no warranty, expressed or implied, regarding its suitability for a particular use. The Utah Department of Natural Resources, Utah Geological Survey, shall not be liable under any circumstances for any direct, indirect, special, incidental, or consequential damages with respect to claims by users of this product.

INTRODUCTION
The state of Utah is fortunate to have abundant and diverse energy resources including large reserves of conventional fossil fuels, several areas suitable for renewable resource development, and vast quantities of untapped unconventional fossil fuel energy sources. This publication, Utahs Energy Landscape, was created to offer a complete, visual-based, description of Utahs entire energy portfolio. The graphs found within this document were created using data compiled by the Utah Geological Survey (UGS) from several different sources, including the U.S. Department of Energys Energy Information Administration (EIA) and the Utah Division of Oil, Gas, and Mining (DOGM), as well as in-house surveys and conversations with individuals and companies. Utah Energy and Mineral Statistics (UEMS) is a Web-based data repository located on the UGS Web site (see screen shot below) and contains all the energy data used to create the graphs contained in this report. Each graph includes a reference table number, indicating where the data can be found and downloaded either as a Microsoft Excel file or an Adobe PDF file. Utah Energy and Mineral Statistics Web page: http://geology.utah.gov/emp/energydata

O v erv ie w
Utah Energy Balance: Production and Consumption, 19602008
1,200

1,000

800 Trillion Btu

600

400

200
Total energy production Total energy consumption

1980 Utah again became a net-exporter of energy

0 1960

1965

1970

1975

1980

1985

1990

1995

2000

2005

UEMS Web page table: Table 1.4


Source: EIA, UGS Note: 2008 data is estimated.

Utah produced 29% more energy than it consumed in 2008, making the state a net-energy exporter. The majority of this excess energy was in the form of exported coal and natural gas. Utah also exports significant amounts of electricity, produced from both fossil fuels and renewable sources.

Utahs Energy Landscape

Energy Production in Utah by Source


2008
Trillion Btu (Percent of total) Geothermal 5.5 (o.5%) Biomass 6.4 (o.5%)

Hydroelectric 6.3 (o.5%)

Natural gas (Dry) 458 (39.2%)

Coal 563 (48.3%)

Total: 1,167 Trillion Btu Crude oil 128 (10.9%)

Fossil fuels made up 98.4% of Utahs total energy production in 2008, while renewable sources accounted only for 1.6% of Utahs production portfolio.

19602008
700
Coal Crude Oil Natural gas Hydroelectric Geothermal Biomass

600

1986 Start of IPP 1800 MW of coal-fired generation

16 14 12 10 Hydroelectric, geothermal, and biomass (Trillion Btu)

Coal, crude oil, and natural gas (Trillion Btu)

500

400 8 300

1963 Flaming Gorge hydroelectric came online (152 MW)

6 4 2 0

200

100

1984 Utahs first geothermal power plant


0 1960 1965 1970 1975 1980 1985 1990 1995 2000 2005

UEMS Web page table: Table 1.8


Source: EIA, UGS Notes: 2008 data are estimated; production from wind and solar are negligible; IPP=Intermountain Power Project.

Overview

Energy Consumption in Utah by Source


2008
Trillion Btu (Percent of total) Geothermal 6.4 (o.7%) Biomass Hydroelectric 6.4 (o.7%) 6.3 (o.7%) Trillion Btu

Net Interstate Flows and Losses in Utah, 19602008


100 50 0 -50 -100 -150 -200
The start of the Intermountain Power Plant, which sends most of its power out of state Net Interstate Flows and Losses

Natural gas 244 (25.6%)

Coal 399 (41.8%)

Total: 827 Trillion Btu* Petroleum products 292 (30.6%)

1960

1965

1970 1975 1980 1985 1990 1995 2000 2005

Fossil fuels made up 98.0% of Utahs total energy consumption in 2008, while renewable sources only accounted for 2.0% of Utahs consumption portfolio. These graphs do not include net interstate flows and losses (see inset graph); Utah exported 127 trillion Btu of electricity (including losses) in 2008, thus reducing total consumption to 827 trillion Btu.

19602008
16 400 Coal, petroleum products, and natural gas (Trillion Btu)
Coal Petroleum products Natural gas Hydroelectric Geothermal Biomass

14 12 Hydroelectric, geothermal, and biomass (Trillion Btu)

300 10 8 200 6 4 2 0 1960 0

100

1965

1970

1975

1980

1985

1990

1995

2000

2005

UEMS Web page table: Table 1.14


Source: EIA, UGS Notes: 2008 data are estimated; consumption from wind and solar are negligible.

*Total includes net interstate f lows and losses. Net interstate f low of electricity is the difference between the amount of energy in the electricity sold within a state (including associated losses) and the energy input at the electric utilities within the state. A positive number indicates that more electricity (including associated losses) came into the state than went out of the state during the year; conversely, a negative number indicates that more electricity (including associated losses) went out of the state than came into the state.

Utahs Energy Landscape

Energy Consumption in Utah by Sector


2008
Trillion Btu (Percent of total)

Transportation 266 (32.1%)

Residential 167 (20.2%)

Total: 827 Trillion Btu*

Commercial 157 (19.0%) Industrial 237 (28.7%)

The transportation sector, mostly gasoline and diesel for vehicles, was the largest consumer of energy in Utah in 2008 (32.1%). The residential, commercial, and transportation sectors have all gradually increased over time, consistent with increasing population and increasing energy consumption per capita, while the industrial sector follows a pattern more closely tied to the national economy (e.g., an economy-related dip in the mid-1980s).

19602008
300
Residential Commercial Industrial Transportation

Geneva Steel closed

250

200 Trillion Btu

150

100

50

0 1960

1965

1970

1975

1980

1985

1990

1995

2000

2005

UEMS Web page table: Table 1.16


Source: EIA Note: 2008 data are estimated *includes net interstate f lows and losses

Overview

COal
Goose Creek Grouse Creek
CACHE

RICH BOX ELDER WEBER

Lost Creek

Utahs most economic coal reserves are located in three coal fields forming an inverted U primarily across Sevier, Emery, and Carbon Counties. One proposed mine lies outside this area, the Coal Hollow mine in southern Utahs Kane County. Utahs largest coal deposit is within the Kaiparowits Plateau coal field and is currently off limits to development since this area sits within the Grand StaircaseEscalante National Monument.
Coal
Coal Fields
Dinosaur NM

MORGAN DAVIS DAGGETT

Henrys Fork Coalville


SALT LAKE TOOELE SUMMIT

WASATCH

Economic reserves Prospective resources Marginal resources Coal >4 ft thick and <3000 ft deep Active coal mine

Tabby
UTAH

DUCHESNE

Vernal

UINTAH

Proposed coal mine National park or monument County Interstate

Wasatch Plateau
JUAB Skyline

Horizon

Dugout Canyon West Ridge

Wales

Mt. Pleasant
CARBON

Book Cliffs

Sego

Data Source: UGS


0 20 miles 40

SANPETE

GRAND
Lila Canyon

MILLARD

Sterling SUFCO

Deer Creek

Emery Salina Canyon


SEVIER
it Cap

Emery EMERY

Arches NP

La Sal
onlan Cany

BEAVER PIUTE WAYNE

ol R eef NP

Henry Mtns.

ds NP

GARFIELD IRON Bryce Canyon NP Coal Hollow

Kaiparowits Plateau
Grand Staircase Escalante NM

Harmony

San Juan

SAN JUAN Zion NP WASHINGTON

Alton Kolob
KANE

Utahs Energy Landscape

Utah's Recoverable Coal Resources Resources Utahs Recoverable Coalby Coal Field, 2008 Million tons (Percent of total) by Coal Field, 2008
Million tons (Percent of total)

Sego 208 (1.4%) 8 Others Henry Mountains (2.3%) 340.5 Sego 485 (3.2%) 8 Others 277.2 (1.8%) ry Mountains 341 (2.3%) 277 (1.8%) 84.7 (3.2%) Book Cliffs 683.4 (4.5%) Emery 803.2 (5.3%)
Book Cliffs 683 (4.5%)

Salina Canyon 207.8 Canyon Salina (1.4%)

Emery 803 (5.3%) Kolob 805 (5.4%) Alton 1,056 (7.0%) Kaiparowits 9,096 (60.5%)

The majority of Utahs recoverable coal resources are located in the Grand StaircaseEscalante National Monument within the Kaiparowits coal field (60.5% of Utahs estimated recoverable coal, as of 2008). Only the Wasatch Plateau, Emery, and Book Cliffs fields currently contain economically recoverable reserves and active mines.
UEMS Web page table: Table 2.3
Source: UGS Note: For Wasatch Plateau, Alton, Emery, Book Cliffs, and Henry Mountains, resources were constrained by Kaiparowits a seam height minimum of four feet, with no more than 3000 feet of 9095.9 (60.5%) cover. For the remaining fields, resources were constrained by an estimated resource factor ranging from 30% to 40% of principal (unconstrained) resources. These resources do not take into account economic or landuse constraints.

Kolob 05.0 (5.4%) Alton 1055.7 (7.0%)

Wasatch Plateau 1,282 (8.5%) Total: 15,035 million tons

Wasatch Plateau 1282.2 (8.5%)

Coal

U.S. Coal Production by State, 2008


500,000 450,000 400,000 350,000 Thousand tons 300,000 250,000 200,00 150,000 100,000 50,000 0 Illinois Ohio West Virginia Pennsylvania North Dakota New Mexico Mississippi Oklahoma Wyoming Indiana Colorado Virginia Alabama Louisiana Kentucky Montana Arizona Maryland Tennessee Alaska Texas Utah Missouri Kansas Arkansas

In 2008, Utah ranked as the 14th largest producer of coal in the United States.
14th

UEMS Web page table: Table 2.7


Source: EIA, UGS

Utah Coal Production by Mine, 2008


8,000 7,000 6,000 5,000 4,000 3,000 2,000 1,000 0 SUFCO Dugout Canyon Deer Creek West Ridge Skyline Emery Bear Canyon Aberdeen Horizon (now closed) UEMS Web page table: Table 2.8 Canyon Fuel (Arch Coal) Energy West Mining Co. (PacifiCorp) UtahAmerican Energy (Murray Energy) CONSOL Energy Hiawatha Coal Co. (Co-op) America West Mining Co.

Thousand tons

In 2008, 58.3% of Utahs coal production came from Canyon Fuel Company mines located in Sevier and Carbon Counties.

Source: EIA, UGS

Utahs Energy Landscape

Utah Coal Production by County


2008
Thousand tons (Percent of total)

Sevier 6,946 (28.6%) Carbon 11,533 (47.5%)

Emery 5,796 (23.9%) Total: 24,275 thousand tons

In 2008, Utah produced its 1 billionth ton of coal. In recent years, coal production growth in Carbon County has outpaced that of Emery and Sevier Counties on strength of the West Ridge, Dugout, and Skyline mines. Only one large mine, Deer Creek, remains in Emery County, while the only coal produced in Sevier County is from the SUFCO mine. In the next few years, the percentage of coal mined from Emery County should increase when the new Lila Canyon mine commences production and mines in Carbon County deplete their reserves. In addition, the proposed Coal Hollow mine in the Alton coal field of southern Utahs Kane County could result in the first significant coal production outside Carbon, Emery, and Sevier Counties in over 50 years.

19602008
30,000
Carbon Emery Sevier

25,000

IPP power plant came online Recession related drop in production Huntington and Hunter power plants came online

Skyline mine temporarily idled

20,000 Thousand tons

15,000

10,000

5,000

0 1960

1965

1970

1975

1980

1985

1990

1995

2000

2005

UEMS Web page table: Table 2.10


Source: UGS Note: Production too small to be seen on graph was reported from Summit, Iron, and Kane Counties, mostly between 1960 and 1972.

Coal

Utah Coal Consumption by Sector


2008
Thousand tons (Percent of total) Residential Industrial and commercial 852 (4.8%) 22 (0.1%)

Total: 17,846 thousand tons

Electric utilities 16,972 (95.1%)

The vast majority of coal in Utah (95.1%) is consumed at electric power plants. The second-largest amount (4.8%) is consumed by the industrial sector at cement/lime plants and Kennecott Utah Coppers power plant which provides electricity for copper smelting. Coke consumption ceased in 2001 when Geneva Steel went out of business.

19602008
18,000
Electric utilites

16,000 14,000 12,000 Thousand tons 10,000 8,000 6,000 4,000 2,000 0 1960

Coke plant Other industrial Residential & commercial

IPP power plant came online in 1986

1965

1970

1975

1980

1985

1990

1995

2000

2005

UEMS Web page table: Table 2.21


Source: EIA, UGS Note: 2008 data are estimated.

10

Utahs Energy Landscape

Average Minemouth Price and Value of Utah Coal, 19602008


$100

$87
$80

$1.1 billion

$1,200
Minemouth price - $ per ton Minemouth price - 2008 $ per ton Value of coal produced - $ Value of coal produced - 2008 $

$1,000

$60

$600 $40

$27.78
$20

$400

$200

$0 1960

1965

1970

1975

1980

1985

1990

1995

2000

2005

$0

Utahs minemouth price (the price at the mine) of $27.78 in 2008 was the 4th highest in history in nominal dollars, but was well below the inflation-adjusted high of $87 reached in 1976. The 2008 value of produced Utah coal equaled $674 million, a record in nominal dollars, but much less than the inflation-adjusted value of $1.1 billion recorded in 1982.
UEMS Web page table: Table 2.22
Source: UGS Note: 2008 data are estimated.

Distribution of Utah Coal, 19702008


30,000
Consumed in Utah Domestic exports Foreign exports

25,000

20,000 Thousand tons

15,000

10,000

The majority of Utah coal, 65.6% in 2008, is used in state, while 33.2% was shipped out of state, and 1.2% was shipped to other countries. Foreign exports, mostly to Asia, peaked in 1996 when 5.5 million tons, or 19.7%, of Utah coal was shipped to foreign markets. This export market ceased to be economic as Australia and China increased production.

5,000

UEMS Web page table: Table 2.19


0 1970 1975 1980 1985 1990 1995 2000 2005

Source: UGS Note: 2008 data are estimated.

Coal

Million Dollars

Dollar per ton

$674 million

$800

11

Crude Oil and PetrOleum PrOduCts


CACHE BOX ELDER RICH

WEBER MORGAN

Utahs crude oil production is mostly concentrated within Duchesne and Uintah Counties to the north and San Juan County to the south; smaller producing areas are in Summit and Grand Counties. The discovery of the Covenant field in central Utah boosted Utahs overall declining production and opened up that area to new exploration.
Crude Oil
Crude oil field
DUCHESNE

DAVIS

DAGGETT

SUMMIT SALT LAKE TOOELE WASATCH

Altamont/Bluebell

Petroleum refinery Crude oil pipeline Pet. products pipeline County Interstate

UTAH UINTAH

Data Source: UGS, DOGM


0 20 miles
CARBON

40

JUAB

SANPETE MILLARD EMERY

GRAND

Covenant
SEVIER

BEAVER

PIUTE WAYNE

IRON

GARFIELD

SAN JUAN

WASHINGTON KANE

Greater Aneth

12

Utahs Energy Landscape

Crude Oil and Natural Gas Liquid Reserves in Utah, 19602008


600
Crude oil reserves

$80 Wellhead price (2008 $ per barrel)

500

Natural gas liquid reserves Wellhead price 2008 $ per barrel

400 Million barrels

$60

300 $40 200 $20 100

0 1960

1965

1970

1975

1980

1985

1990

1995

2000

2005

$0

UEMS Web page tables: Table 3.2 and Table 3.20


Source: EIA

Natural gas liquid reserves surged in 1979, coinciding with a spike in crude oil prices, and peaked in the late 1980s. The recent increase in crude oil price has translated into record crude oil reserves in 2007 (355 million barrels), but has since declined in 2008.

Oil and Gas Well Completions in Utah, 19602008


1,200
Oil Gas

$80 Wellhead price (2008 $ per barrel)

1,000

Dry Wellhead price 2008 $ per barrel

$60

Number of wells

800

600

$40

400 $20 200

0 1960

$0 1965 1970 1975 1980 1985 1990 1995 2000 2005

UEMS Web page tables: Table 3.5 and Table 3.20


Source: DOGM, EIA

The number of well completions (both oil and gas) has tracked closely with wellhead price, both peaking in the early 1980s and again in recent years. The recent price surge has facilitated a record high of 1207 wells drilled in 2008. Also of note is the decrease in the number of dry wells through the years as drilling and exploration techniques have improved and high-risk wildcat drilling has decreased.

Crude Oil and Petroleum Products

13

Utah Crude Oil Production by County, 2008


Thousand barrels (Percent of total) Grand 268 (1.2%) Other Summit 241 (1.2%) 320 (1.5%)

Sevier 2,140 (9.7%)

Crude oil production in Utah is mostly concentrated in Duchesne, Uinta, and San Juan Counties. Recently production has started in Sevier County with the discovery of the Covenant field in central Utah.
Duchesne 8,703 (39.5%)

San Juan 3,813 (17.3%)

UEMS Web page table: Table 3.8


Source: DOGM Note: Other includes Garfield, Carbon, Emery, Sanpete, and Daggett Counties.

Uintah 6,525 (29.6%)

Total: 22,010 thousand barrels

Utah Crude Oil Production, 1945-2008


Production

40,000

Wellhead price 2008 $ per barrel

$80 Wellhead price (2008 $ per barrel)

Thousand barrels

30,000

$60

20,000

$40

10,000

$20

UEMS Web page tables: Table 3.7 and Table 3.20


Source: DOGM, EIA
0 1945 1950 1955 1960 1965 1970 1975 1980 1985 1990 1995 2000 2005 $0

Utah has experienced three oil booms in the past 60 years and is currently defining a fourth. The first spike in crude oil production followed the discovery of the very large Bluebell and Greater Aneth fields in 1955 and 1956, respectively. The second spike coincided with a 1971 increase in wellhead price as well as the discovery of the Altamont field. The third spike in production resulted from the price spike of the early 1980s and followed the 1980 discovery of the Anschutz Ranch East natural gas field, which also produced large amounts of crude oil. The current rise in crude oil production is related to higher prices resulting in higher production from existing fields, as well as the discovery of the Covenant field in central Utah.

14

Utahs Energy Landscape

U.S. Crude Oil Production by State, 2008


450,000 400,000 350,000 Thousand barrels 300,000 250,000 200,000 150,000
24,147 249,874 214,544 398,014 421,697

13th

100,000 50,000 0

UEMS Web page table: Table 3.6


Source: EIA, DOGM

In 2008, Utah ranked as the 13th largest producer of crude oil in the United States (not including federal offshore areas).

3,000
# of producing oil wells Average yearly production per well

2,500

Texas Alaska California Louisiana Oklahoma North Dakota New Mexico Wyoming Kansas Montana Colorado Mississippi Utah Illinois Alabama Michigan Arkansas Ohio Pennsylvania Kentucky Nebraska Florida Indiana South Dakota West Virginia Nevada New York Tennessee Missouri Arizona Virginia Fed. Offshore Gulf Fed. Offshore Cal.

Number of Producing Crude Oil Wells in Utah Versus Average Yearly Production per Well, 19602008
50,000

73,011 64,065 62,776 59,403 52,943 39,582 31,545 24,054 22,102 22,010 9,432 7,546 6,223 6,079 5,715 3,611 2,645 2,394 1,956 1,858 1,697 1,593 436 386 344 99 52 7

40,000 Barrels per well per year

Number of wells

2,000

30,000

1,500

20,000

1,000

10,000

UEMS Web page table: Table 3.7


Source: DOGM
500 1960 1965 1970 1975 1980 1985 1990 1995 2000 2005 0

As the total number of producing oil wells has increased over the years, the average yearly production per well has decreased. This graph illustrates how it requires more wells to produce the same amount of crude oil.

Crude Oil and Petroleum Products

15

Crude Oil Shipped to Utah Refineries by State or Country of Origin, 19602008


60,000
Utah Canada Other Colorado Refinery utilization rate Wyoming

100%

50,000

90% Refinery utilization rate (%)

Thousand barrels

40,000

80%

30,000

70%

20,000

60%

10,000

50%

0 1960

1965

1970

1975

1980

1985

1990

1995

2000

2005

40%

Utah refineries receive crude oil from four main sources: Utah, Colorado, Wyoming, and, as of 1995, Canada. Utahs refinery utilization rate, the average ratio of crude oil inputs to total refinery capacity, has averaged 86% over the past 20 years. In 2006, the average rate was greater than 90% for the first time since 1973, but has since dropped to 87% in 2008 as the high price of gasoline helped decrease demand.
UEMS Web page tables: Table 3.15 and Table 3.17

Utah Refinery Production by Product, 2008


Thousand barrels (Percent of total) LRG 1,755 (2.7%) Residual fuel 3,273 (5.1%) Other 6,637 (10.3%)

Source: EIA, UGS Note: Other includes small amounts from Nevada, Montana, and New Mexico.

Jet fuel 4,998 (7.8%)

Motor gasoline 31,622 (49.2%)

Distillate fuel 16,012 (24.9%) Total: 64,297 thousand barrels

Utah refineries produced over 31 million barrels of motor gasoline in 2008, of which roughly 14 million barrels was shipped to surrounding states.
UEMS Web page table: Table 3.16
Source: EIA Note: LRG = Liquefied refinery gases

16

Utahs Energy Landscape

Consumption of Petroleum Products in Utah


2007
Thousand barrels (Percent of total) Residual fuel 309 (0.6%)

Motor gasoline was the most used petroleum product in 2007, accounting for 46.8% of all consumption. Distillate fuel ranked second at 28.6%, followed by jet fuel at 12.7%. Residual fuel use has declined greatly since the mid-1980s since it is no longer used as a fuel in power plants. Overall petroleum product consumption tracks well with Utahs population growth.

Other 6,296 (11.3%)

Jet fuel 7,085 (12.7%) Motor gasoline 26,054 (46.8%)

UEMS Web page table: Table 3.18


Source: EIA Notes: 2008 data are not yet available; Other includes asphalt and road oil, aviation gasoline, kerosene, liquefied petroleum gases, lubricants, among others.
Distillate fuel 15,945 (28.6%) Total: 55,689 thousand barrels

19602007
60,000
Motor gasoline Distillate fuel

3,000

50,000

Jet fuel Residual fuel Other

2,500

40,000 Thousand barrels

Utah popluation

2,000 Utah Population

30,000

1,500

20,000

1,000

10,000

500

0 1960

0 1965 1970 1975 1980 1985 1990 1995 2000 2005

Crude Oil and Petroleum Products

17

Average Wellhead Price and Value of Crude Oil in Utah, 19602008


Wellhead price - $ per barrel

$2,500

$80.86

$86.58 $2.1 billion $1.9 billion


$2,000

$80

Wellhead price - 2008 $ per barrel Value of crude oil produced - $ Value of crude oil produced - 2008 $

Dollars per barrel

$60 Million dollars $1,500

$40

$1,000

$20

$500

$0 1960

1965

1970

1975

1980

1985

1990

1995

2000

2005

$0 table: Table 3.20

UEMS Web page


Source: EIA

Utahs crude oil wellhead price hit an all-time high of $86.58 per barrel in 2008, even when adjusted for inflation. The value of Utahs crude oil also reached a record high of $1.9 billion in nominal dollars, but is the third-highest value in inflation-adjusted dollars behind 1984 and 1985.

$4.00

Utah Price of Motor Gasoline and Diesel, 19802008


Regular unleaded gasoline - $ Regular unleaded gasoline - 2008 $ Diesel - $ Diesel - 2008 $

$3.50

$3.00 Dollars per gallon

$2.50

$2.00

$1.50

$1.00

Source: UGS, EIA


$0.50 1980 1985 1990 1995 2000 2005

Regular unleaded gasoline reached the highest inflation-adjusted level since 1981, averaging $3.23 per gallon in 2008, while diesel prices hit an all-time inflation-adjusted high of $3.86 per gallon in 2008.

18

Utahs Energy Landscape

natural Gas
CACHE BOX ELDER RICH

WEBER

Utahs natural gas production is mostly concentrated within Uintah and Grand Counties in the east and Summit County in the north. Coalbed methane fields in central Utah have added greatly to Utahs overall natural gas production.
Natural Gas
Natural gas field Coalbed methane field
UINTAH DUCHESNE

MORGAN DAVIS

Anschutes Ranch East


SUMMIT
SALT LAKE

DAGGETT

Natural gas processing plant Natural gas pipeline

TOOELE WASATCH

Natural Buttes
UTAH

County Interstate Data Source: UGS, DOGM


0 20 miles 40

JUAB CARBON

Drunkards Wash
GRAND EMERY

SANPETE MILLARD

SEVIER

BEAVER PIUTE WAYNE

IRON GARFIELD

WASHINGTON

SAN JUAN

KANE

Natural Gas

19

Natural Gas Reserves in Utah, 19502008


7
Nonassociated Associated-dissolved Wellhead price - 2008 $ per thousand cubic feet

5 $6 Trillion cubic feet 4 $4

2 $2 1

0 1950

1955

1960

1965

1970

1975

1980

1985

1990

1995

2000

2005

$0

Natural gas reserves surged in 1980 and 1981, coinciding with an increase in wellhead price, and a second surge occurred in the late-1990s, coinciding with new development of coalbed methane. The current increase in reserves is again the result of higher prices.

UEMS Web page tables: Table 4.2 and Table 4.16


Source: EIA Note: Nonassociated natural gas is not in contact with significant quantities of crude oil in the reservoir. Associated-dissolved natural gas occurs in crude oil reservoirs either as free gas (associated) or as gas in solution with crude oil (dissolved gas).

20

Utahs Energy Landscape

Wellhead price (2008 $ per thousand cubic feet)

$8

Utah Natural Gas Production (Gross) by County, 2008


Billion cubic feet (Percent of total) Summit Grand 10.3 (2.3%) 6.2 (1.4%) Other San Juan 1.1 (0.3%) 13.4 (3.0%) Emery 16.7 (3.8%) Duchesne 26.6 (6.0%)

Gross natural gas production in Utah is mostly concentrated in Uintah and Carbon Counties (Carbon County production is predominantly from coalbed methane).
UEMS Web page table: Table 4.6

Carbon 94.5 (21.4%)

Uintah 273 (61.8%)

Source: DOGM Note: Other includes Daggett, Sanpete, and Garfield Counties.

Total: 442 billion cubic feet

Utah Natural Gas Production, 19602008


400
Gross withdrawals Marketed production Dry production

$8

Billion cubic feet

300

Wellhead price - 2008 $ per thousand cubic feet

$6

200

$4

100

$2

0 1960

$0 1965 1970 1975 1980 1985 1990 1995 2000 2005

Wellhead price (2008 $ per thousand cubic feet)

The first major increase in natural gas production occurred in the mid-1980s, coinciding with a large spike in prices and the discovery of coalbed methane in central Utah. The current surge in production is also price related, with the majority of production centered in Uintah County.

UEMS Web page tables: Table 4.5 and 4.16


Source: DOGM, EIA

Natural Gas

21

U.S. Natural Gas Production (Dry) by State, 2007


6,000
5,704.4

5,000

4,000 Billion cubic feet Texas Wyoming 1,849.0 1,647.8 Oklahoma New Mexico 1,448.6 Louisiana 1,252.8 Colorado 1,204.4 Alaska 407.2 Utah 373.7 Kansas 337.8 California 293.6 Arkansas 269.7 Michigan 261.8 250.6 Alabama 223.1 West Virginia Pennslyvania 181.4 Montana 115.3 Virginia 112.1 Kentucky 93.5 Ohio 88.1 Mississippi 60.4 New York 54.9 North Dakota 47.3 Tennessee 3.9 Indiana 3.6 Florida 1.6 Nebraska 1.6 South Dakota 1.0 Arizona 0.7 Oregon 0.4 Illinois 0.1 Maryland 0.04 Nevada 0.01 2,798.7 Gulf of Mexico 8th

3,000

2,000

1,000

UEMS Web page table: Table 4.4


Source: EIA, DOGM Note: 2008 data are not yet available.

In 2007, Utah ranked as the 8th largest producer of natural gas in the United States (not including production in the Gulf of Mexico).

Number of Producing Natural Gas Wells in Utah Versus Average Yearly Production per Well, 19612008
800 5,000
# of producing gas wells Average yearly production per well

4,000 Number of wells

600

3,000 400 2,000 200 1,000

Million cubic feet per well per year

UEMS Web page table: Table 4.5


Source: DOGM
1960 1965 1970 1975 1980 1985 1990 1995 2000 2005 0

Similar to crude oil, as the total number of producing gas wells has increased over the years, the average yearly production per well has decreased.

22

Utahs Energy Landscape

Consumption of Natural Gas in Utah


2008
Million cubic feet (Percent of total)

Other 36,600 (15.9%)

Residential 65,972 (28.6%)

Electric utilities 57,241 (24.8%) Commercial 37,605 (16.3%) Industrial 33,112 (14.4%)

Natural gas is mostly used for home heating (residential, 28.6%), but starting in mid-2004, 1300 MW of new natural-gas-fired electric capacity have come online, greatly increasing the amount used by the electric utility sector (from 7.6% in 2005 to 24.8% in 2008).
UEMS Web page table: Table 4.15
Source: EIA Notes: 2008 data are estimated; Other includes lease use, plant use, and pipeline fuel.

Total: 230,735 million cubic feet

Vehicle fuel 205 (0.1%)

19602008
250,000
Residential Commercial Vehicle fuel Industrial Electric utilities Other

200,000

Million cubic feet

150,000

100,000

50,000

0 1960 1965 1970 1975 1980 1985 1990 1995 2000 2005

Natural Gas

23

Average Wellhead Price and Value of Natural Gas in Utah, 19602008


$8
Wellhead price - $ per thousand cf Wellhead price - 2008 $ per thousand cf Value of natural gas produced - $ Value of natural gas produced - 2008 $

$3,000

$8.45

$2.7 billion
$2,500

Dollars per thousand cubic feet

$6

$6.15
$2,000 Million dollars

$4

$1,500

$1,00 $2 $500

UEMS Web page table: Table 4.16


Source: EIA

$0 1960

$0 1965 1970 1975 1980 1985 1990 1995 2000 2005

The value of Utahs natural gas production in 2008 reached an all-time high of $2.7 billion, even when adjusted for inflation. This dramatic increase was the product of record high production resulting from near-record-high wellhead prices.

Average Price of Residential Natural Gas by State, 2008


$50
$44.75

$40 Dollars per thousand cubic feet

$30
$21.29 $19.85 $18.55 $18.50 $18.41 $18.31 $18.04 $17.99 $17.66 $17.54 $17.11 $16.78 $16.77 $16.74 $16.71 $16.24 $16.20 $16.17 $15.82 $15.51 $15.19 $14.61 $14.51 $14.36 $14.18 $13.93 $13.89 $13.79 $13.77 $13.39 $13.33 $13.06 $13.03 $12.80 $12.74 $12.31 $12.29 $12.09 $11.93 $11.82 $11.52 $11.32 $11.30 $11.25 $11.15 $10.34 $10.12 $9.81 $9.00 $6.74 Hawaii Florida Connecticut Alabama Georgia DC Vermont Rhode Island South Carolina Maine Arizona Massachusetts New York Maryland New Hampshire North Carolina Pennsylvania Virginia Delaware Indiana Louisiana New Jersey West Virginia Ohio Tennessee Arkansas Mississippi Oregon Texas Kentucky Missouri Nevada Washington Kansas Wisconsin California New Mexico Oklahoma Illinois Iowa Michigan Montana South Dakota Minnesota Idaho Nebraska North Dakota Wyoming Colorado Utah Alaska

50th

$20

$10

UEMS Web page table: Table 4.18


Source: EIA Notes: 2008 data are preliminary; includes the District of Columbia.

$0

In 2008, Utah had the second-lowest price for residential natural gas in the country, behind only Alaska.

24

Utahs Energy Landscape

renewable resOurCes
Utah Renewable Energy Zones Task Force Phase I Report: Renewable Energy Zone Resource Identification
To promote and identify Utahs utility-scale electrical renewable energy resources and to assess transmission to bring those resources to load centers in Utah, former Governor Huntsman commissioned the Utah Renewable Energy Zones (UREZ) Task Force to (1) identify geographical areas in Utah where utility-scale renewable energy development could occur (see maps on following pages); (2) assess the electrical generation potential of wind, solar, and geothermal technologies; and (3) identify new and existing transmission needed to bring renewable energy generation sources to market. This study identified renewable energy zones totaling approximately 13,262 square miles and an estimated 837 gigawatts (GW) of electrical generating capacity. The multitude of factors that could not be taken into account at this point of the assessment include: project level resource data, site specific land use and environmental restrictions, and federal, state, and local regulatory policies that may complicate or restrict development. The scope of work for this phase of the UREZ process was not to assess the development potential from an economic perspective. Rather, analogous to estimating resources and reserves in the oil and gas industry, this projects scope of work was to identify the potential resources, within reason, for short-term (~<10 years) and long-term (~>10 years) potential. Again, similar to estimating conventional natural resource reserves, the quantity is a constantly changing value. More importantly, this macro-level assessment will identify likely areas of multiple resource zones that may have utility-scale generation potential. The entire document is available on the UGS Web page: http://geology.utah.gov/sep/renewable_energy/urez/phase1

Renewable Resources

25

SOLAR ASSESSMENT

Utahs solar resources are clearly abundant (map on right, no screening applied). The analysis identified 6,371 square miles of land that has a theoretical potential of about 826 gigawatts (GW) of utility-scale capacity. The solar analysis used several criteria to shape the methodology (map below): (1) measurements of Direct Normal Irradiance (DNI), with a threshold value of 6.0 kilowatt hours per meter squared (kWh/m2)/ day or greater, (2) screening out steeper areas (slopes of 3% or greater) unable to accommodate a large solar collection field, (3) screening out environmentally sensitive areas such as national parks, wilderness areas, wetlands, etc., that are not available for development, and (4) applying proxy technology, of a 50 megawatt (MW) parabolic trough concentrating solar thermal power plant, to estimate electrical energy capacity.

Solar
Direct Normal Irradiance
(kWh/sq. meter/day)

5.2 - 5.5 5.5 - 5.75 5.75 - 6.0 6.0 - 6.25 6.25 - 6.5 6.5 - 6.75 6.75 - 7.0 7.0 - 7.25 7.25 - 7.4 County Interstate Data Source: NREL
0 20 miles 40

Major findings from the solar assessment:


Solar
Direct Normal Irradiance
(kWh/sq. meter/day) Areas with slope <3%

6.0 - 6.25 6.25 - 6.5 6.5 - 6.75 6.75 - 7.0 7.0 - 7.25 County Interstate Data Source: NREL, UGS
0 20 miles 40

Sixteen thousand five hundred (16,500) theoretically potential 50 MW solar Renewable Energy Zone (REZ) areas (1 km square zones) were identified (826 GW). The geospatial distribution of the quality of the solar resource follows a simple north to south trend. Southern Utah has the higher quality resources (6.5 kWh/m2/day or greater), while northern Utah has a slightly lower quality solar resource (6.0 kWh/m2/day or less). The prime solar REZ areas constitute less than 1.5% of the identified sites, while the majority of the sites (43.2%) have a lower resource potential. The total area of the solar REZs is 6,371 square miles.

26

Utahs Energy Landscape

WIND ASSESSMENT
Utahs extreme diversity in landscape and climate are well known. These factors significantly affect Utahs wind resources. As a result, Utah has a wide array of locations that may be viable options for wind energy development. The resource analysis to identify REZs was based upon wind data collected from 109 anemometer towers stationed throughout the state. The wind resource analysis incorporated several criteria to shape the methodology: (1) screening out environmentally sensitive areas, (2) setting a maximum elevation of 9,500 feet, (3) eliminating land too rugged for development, (4) deleting military operating airspace, and (5)
CACHE

using a proxy wind turbine, General Electric 1.5 sle model, to estimate electrical energy capacity from identified sites. Major findings from the wind assessment: The combined technical electrical generating capacity is approximately 9,145 MW from the 51 wind REZs (orange areas on map). The estimated annual average gross capacity factor for the 51 REZ sites is 27.4%. Twelve sites have expected gross capacity factors of at least 30%, accounting for 1,830 MW or greater of generating capacity. Eleven sites have an estimated capacity of at least 250 MW each (2,750 MW). The greatest concentration of wind resources is located near Milford with an estimated capacity of 2,500 MW. Total area of the 51 wind sites is 1,838 square miles.

RICH BOX ELDER WEBER MORGAN DAVIS

DAGGETT SUMMIT

Wind
Wind energy zone 20 meter anemometer site 50 meter anemometer site Wind farm County Interstate Data Source: UGS

SALT LAKE TOOELE WASATCH

DUCHESNE

Camp Williams - 0.9 MW

Spanish Fork - 19 MW
UINTAH UTAH JUAB CARBON

20 miles

40

SANPETE MILLARD GRAND EMERY

Milford Wind Coridor - 203 MW


SEVIER

BEAVER PIUTE WAYNE

IRON GARFIELD

SAN JUAN

WASHINGTON

KANE

Renewable Resources

27

GEOTHERMAL ASSESSMENT
Although a number of geothermal power projects are currently underway, there is a general lack of subsurface drill-hole information for individual resource areas. The effort described here uses published information from various sources, but mostly relies on deep well data and shallow thermal-gradient information. Utahs identified higher-quality geothermal resources lie within a 50-mile-wide corridor along the eastern margin of the Basin and Range Provincea corridor that also parallels Interstate 15. Geothermal power generation projects are underway in southcentral and southwestern Utah. The geothermal analysis incorporated the following criteria to shape the methodology: (1) screening out environmentally sensitive areas not available for development, (2) calculating reservoir volume, and (3) factoring in porosity and sweep efficiency, which characterize the ability of the reservoir to transfer heat. Major findings from the geothermal assessment: A total of 2,166 MW of geothermal development potential exists within the state (orange areas on map). Utahs identified higher-quality geothermal resources lie within a 50-mile-wide corridor along the eastern margin of the Basin and Range Provincea corridor that parallels Interstate 15. The estimated potential for electric generation from identified geothermal systems is approximately 754 MW. The total estimated potential from undiscovered geothermal systems is approximately 1,413 MW. The total area of the four major geothermal REZ areas (Uinta Basin included) is 5,053 square miles.
DAGGETT SUMMIT

Raft River Mtns.

CACHE

Wasatch Front Valleys


BOX ELDER WEBER

RICH

DAVIS

MORGAN

Geothermal
Geo. development area Geothermal energy zone

SALT LAKE TOOELE

DUCHESNE

Geothermal well (>25C) Geothermal spring (>25C) Geothermal power plant


Uinta Basin Oil and Gas Fields

WASATCH

County Interstate Data Source: UGS

UTAH

UINTAH

20 miles

40

JUAB

Sevier Desert

CARBON

SANPETE GRAND MILLARD EMERY

Black Rock Desert Cove Fort Sulphurdale Roosevelt Hot Springs Blundell - 38 MW Thermo Hot Springs - 10 MW
PIUTE WAYNE SEVIER

BEAVER

Thermo Hot Springs SW Escalante Desert


GARFIELD IRON

WASHINGTON

SAN JUAN

KANE

28

Utahs Energy Landscape

Renewable capacity (Megawatts) 10,000 15,000

20,000

25,000

5,000

0
22,999 15,867 9,681

UEMS Web page table: Table 6.1

In 2008, Utah ranked 41st in the nation in total renewable net summer electric capacity.

Source: EIA Note: Only includes utility scale capacity.

Utahs renewable electric capacity is dominated by hydroelectric power (Flaming Gorge), with increasing amounts from geothermal (Raser Technologies is planning to build several more 10 MW scale geothermal plants in southwestern Utah) and wind (the 203 MW Milford wind farm came online in late 2009). The biomass portion is mainly from Wasatch Front landfill gas operations. The SunSmart solar array in St. George is Utahs first utility-owned solar installation, but at only 100 kilowatts capacity, it is too small to be recorded by EIA or in the graphs on this page.

Renewable Resources
1,000 2,000
2,303

3,000

2,500

1,500

500

2,704 2,572

Geothermal 43 (12.6%) Wind 19 (5.6%)

Renewable Net Summer Capacity by Energy Source and State, 2008

Megawatts (Percent of total)

Hydroelectric 278 (81.8%) Biomass 7 (2.1%)

Washington California Oregon Texas New York Alabama Tennessee Montana Iowa Arizona Georgia Idaho North Carolina Minnesota Colorado South Dakota Arkansas Oklahoma Pennsylvania South Carolina Maine Virginia Nevada North Dakota Wisconsin Illinois Florida Wyoming Kentucky Michigan Maryland Missouri New Hampshire Kansas West Virginia Louisiana New Mexico Massachusetts Alaska Vermont Utah Nebraska Connecticut Indiana Hawaii Mississippi New Jersey Ohio Rhode Island Delaware

7,868 5,373 3,846 2,839 2,808 2,806 2,765 2,704 2,572 2,303 1,882 1,752 1,656 Washington California 1,623 Oregon 1,619 Texas 1,607 New York 1,589 Alabama 1,464 Tennessee 1,364 Montana 1,328 Iowa 1,248 Arizona Georgia 1,149 Idaho 1,141 North Carolina 1,048 Minnesota 929 Colorado 879 South Dakota 765 Arkansas 725 Oklahoma 720 Pennsylvania South Carolina 687 Maine 668 Virginia 594 Nevada 586 North Dakota 582 Wisconsin 560 Illinois 403 Florida 401 Wyoming Kentucky 347 Michigan 309 Maryland 288 Missouri 230 New Hampshire 229 Kansas 229 West Virginia 223 Louisiana 213 New Mexico Massachusetts 28 Alaska 7
1,882 1,752 1,656 1,623 1,619 1,607 1,589 1,464 1,364 1,328 1,248 1,149 1,141 1,048 929 879 765 725 720 687 668 594 586 582 560

41st

403 401 347 309 288 230 229 229 223 213 Vermont Utah Nebraska Connecticut Indiana Hawaii Mississippi New Jersey Ohio Rhode Island Delaware 28 7

Solar Geothermal Wind Biomass Hydroelectric

Utahs Renewable Net Summer Capacity by Energy Source, 2008

Total: 347 megawatts

29

Renewable Electric Generation by State, 2008


90% 80% Percent of total electrical generation from renewable sources 70% 60% 50% 40% 30% 20% 10% 0%
85.0%

Solar Geothermal Wind Biomass Hydroelectric


50.2% 44.4% 35.6%

74.2% 63.0%

Utahs renewable electric generation is dominated by hydroelectric power, but electricity from geothermal and wind sources will increase in coming years. The biomass portion is electricity generated from burning landfill gases. Two smaller scale anaerobic digesters are located in Utah, but are not utility scale.
UEMS Web page table: Table 6.2
Source: EIA

30

Idaho Washington Oregon Maine South Dakota Montana California New York Vermont Alaska New Hampshire Arkansas Minnesota Colorado Iowa Nevada North Dakota Oklahoma Hawaii Tennessee Alabama Arizona Maryland Massachusetts New Mexico Virginia Wisconsin Texas Louisiana North Carolina Georgia Connecticut Kansas Wyoming Michigan South Carolina Mississippi Missouri Kentucky Pennsylvania Nebraska Rhode Island Delaware Florida Utah West Virginia Illinois New Jersey Indiana Ohio

In 2008, Utah ranked 45th in the nation in percent of total net electricity generation from renewable resources. Of particular note, Utah is one of only four states where electricity is generated from geothermal resources (two more states, Idaho and Montana, were added to this list in 2009).

11.9% 11.5% 11.1% 9.3% 9.0% 8.8% 8.5% 8.0% 7.8% 7.3% 6.5% 6.2% 5.4% 5.3% 5.3% 5.3% 5.1% 4.3% 4.2% 4.1% 4.0% 3.8% 3.8% 3.8% 3.3% 3.1% 3.1% 2.5% 2.4% 2.4% 2.2% 2.1% 2.1% 2.1% 2.0% 1.8% 1.5% 1.4% 0.7% 0.6%

22.1% 21.4% 19.9% 18.3%

45th

Renewable Electric Generation in Utah, 2008


Gigawatthours (Percent of total renewables) (Percent of total net generation) Biomass 34 (3.6%)(0.0%)

Geothermal 260 (27.8%) (0.6%) Hydroelectric 640 (68.5%)(1.4%) Total: 934 gigawatthours

Utahs Energy Landscape

Renewable Energy Consumption in Utah


2007
Billion Btu (Percent of total) Solar 53 (0.3%)

Biomass 6,224 (39.5%)

Hydroelectric 5,325 (33.8%)

Utahs 2007 consumption of energy from renewable sources was evenly split between hydroelectric, geothermal, and biomass, with very small amounts coming from commercialand residential-scale solar photovoltaic arrays.
UEMS Web page table: Table 6.7

Total: 15,752 billion Btu

Geothermal 4,150 (26.3%)

Source: EIA Notes: 2008 data are not yet available; includes the electric utility sector; data on Utah wind energy consumption not available.

19602007
14,000 12,000 10,000 Billion Btu 8,000 6,000 4,000 2,000 0 1960
Hydroelectric Geothermal Biomass Solar

1965

1970

1975

1980

1985

1990

1995

2000

2005

Renewable Resources

31

unCOnventiOnal PetrOleum resOurCes


OIL SHALE
The Utah Geological Survey recently completed a comprehensive oil shale resource assessment for deposits in the state of Utah. This assessment answers the questions of where and how much that many people ask about Utahs largest unconventional resource by providing detailed basin-wide resource maps and estimates of inplace shale oil. A continuous interval of oil shale that averages 50 gallons of oil per ton of rock (GPT) contains an inplace resource of 31 billion barrels of shale oil. A continuous interval of oil shale that averages 35 GPT contains an in-place resource of 76 billion barrels of shale oil. A continuous interval of oil shale that averages 25 GPT contains an in-place resource of 147 billion barrels of shale oil (see included map). A continuous interval of oil shale that averages 15 GPT contains an in-place resource of 292 billion barrels of shale oil. After calculating total in-place resource numbers, the UGS imposed several constraints on the total endowment to offer a more realistic impression of Utahs potentially economic oil shale resource. The constraints used were: deposits having a richness of at least 25 GPT (assumed minimum grade), deposits that are at least 5 feet thick (assumed minimum mining thickness), deposits under less than 3000 feet of cover (maximum underground mining depth), deposits that are not in direct conflict with current conventional oil and gas operations, and deposits located only on U.S. Bureau of Land Management, state trust, private, and tribal lands. Accounting for these constraints, UGS estimates that approximately 77 billion barrels of shale oil are located in north-central Utah. Currently, only a handful of companies are pursuing oil shale development in Utah, including the Oil Shale Exploration Company (OSEC), which was the only company awarded an oil shale research and development lease from the U.S. Bureau of Land Management.
CACHE RICH BOX ELDER WEBER MORGAN DAVIS

DAGGETT SUMMIT

SALT LAKE TOOELE WASATCH

DUCHESNE

Asphalt Ridge
UINTAH

Oil Shale and Tar Sand Deposits


Thickness of the 25 gallon per ton oil shale zone >0-5 ft 5-20 ft 20-40 ft 40-60 ft 60-80 ft 80-100 ft 100-130 ft Tar sand deposits County Interstate Data Source: UGS

UTAH

JUAB CARBON

PR Springs
SANPETE MILLARD EMERY

GRAND

San Rafael Swell


SEVIER

BEAVER

PIUTE WAYNE

Tar Sand Triangle

20 miles

40

IRON GARFIELD

Circle Cliffs

SAN JUAN

WASHINGTON KANE

The most prospective unconventional fossil fuel resources are located in the Uinta Basin in northeastern Utah.
place oil, with an additional estimated resource of 23 to 28 billion barrels. Twenty-four individual deposits exist in the Uinta Basin, mainly around its periphery, and an additional 50 deposits are scattered throughout the southeastern part of the state. Utahs major tar sand deposits individually have areal extents ranging from 20 to over 250 square miles, as many as 13 pay zones, gross thickness ranging from 10 to more than 1000 feet, and overburden thickness ranging from zero to over 500 feet. With the current high price of crude oil as an incentive, new drilling, bitumen extraction, and upgrading techniques developed in Canada may provide the necessary knowledge for successful and sustainable development of tar sand in Utah in the near future. However, factors such as site accessibility, adequate infrastructure, water availability, environmental concerns, land access and permitting, and the problems associated with the heterogeneity of reservoir sands must be resolved before tar sand development can become a reality in Utah. Currently, two companies are researching development of tar sands within the Asphalt Ridge deposit, and one company is looking at possible development in the PR Springs area.

TAR SANDS
North America has the greatest tar sand resources in the world, the majority of which are in Canada. Utahs tar sand resource, though small in comparison to that of Canada, is the largest in the United States. Utahs tar sand deposits contain 14 to 15 billion barrels of measured in-

32

Utahs Energy Landscape

uranium
CACHE BOX ELDER RICH

The most prospective uranium resources are located in northern San Juan County and near the Henry Mountains in eastern Garfield County.

WEBER MORGAN

DAVIS

DAGGETT SUMMIT

Uranium
Uranium districts Active or recently active mine Uranium mill

SALT LAKE TOOELE WASATCH DUCHESNE UINTAH

County Interstate

UTAH

20 miles

40

JUAB CARBON

SANPETE MILLARD

EMERY GRAND

Whirlwind
SEVIER

BEAVER PIUTE WAYNE

Beaver Pandora Energy Queen Snowball Velvet Rim

IRON

GARFIELD

Tony M

Daneros

White Mesa Mill


WASHINGTON KANE SAN JUAN

Uranium

33

Uranium Production in Utah, 19102008


10,000
Utahs first uranium boom was driven by the production of nuclear weapons Uranium production 2008 $ per pound U3O8 Utahs second uranium boom was driven by the need for fuel at nuclear power plants

$100

8,000 Thousand pounds U3O8

$80

6,000

$60

4,000

Uranium produced as a by-product of radium and vanadium

First new production in 16 years

$40

2,000

$20

0 1910

1920

1930

1940

1950

1960

1970

1980

1990

2000

$0

From 1909 to 1940, uranium was produced as a byproduct of first radium, then vanadium. Utahs first big uranium boom started in 1948 when the U.S. Atomic Energy Commission set a guaranteed price and bonus schedule for domestic uranium ore, driven by the requirements of nuclear weapons production. Utahs uranium production grew rapidly during the late-1940s and 1950s, peaking in 1958 at 8.9 million pounds of U3O8 before declining in the mid-1960s. During this time, production occurred at over 500 individual mines. A second period of uranium production began in the early 1970s with the development of the nuclear power industry, peaking in 1978 at 5.8 million pounds U3O8. Since the mid-1980s, Utahs underground ores had difficulty competing with other lower cost operations, exacerbated by the discovery of very large, high-grade, near-surface uranium ore in Canada and Australia. By 1990, all of Utahs uranium production had ceased, and within a few years there were no longer any underground uranium mines operating in the United States. Beginning in 2004, the price of uranium began to rise, reaching an inflation-adjusted record high of $102 per pound in 2007. This new resurgence in uranium price resulted in the reopening of several Utah mines which produced 183,000 pounds in 2007 and 670,000 pounds in 2008. In addition, the White Mesa uranium mill, located outside of Blanding, Utah, once again began processing uranium ore.
UEMS Web page table: Table 9.1
Source: EIA Note: 2008 data are preliminary.

34

Utahs Energy Landscape

2008 dollars per pound of U3O8

eleCtriCity
Utahs electric generation is dominated by six large coal-fired power plants (blue), but in recent years, many new natural-gas-fired power plants (red) have been built near population centers along the I-15 corridor. Renewable resources, like the geothermal and wind resources found in Beaver County, will play an increasingly important role in Utahs electricity generation future.
DAGGETT Flaming Gorge SUMMIT

Cutler Logan

RICH

CACHE BOX ELDER

Little Mtn Wasatch LF

WEBER MORGAN

DAVIS
Bountiful Salt Lake LF Gadsby

Electricity
Utility plants >10 MW
(except solar and biomass)

West Valley

TOOELE

Trans Jordan LF

SALT LAKE

Murray Jordanelle Heber Olmstead WASATCH Provo Whitehead Spanish Fork Nebo Payson Bonanza

Coal Natural gas


DUCHESNE

Petroleum Hydroelectric
UINTAH

Laketown

Geothermal Biomass Wind Solar

UTAH

JUAB
Carbon IPP Currant Creek

CARBON
Sunnyside

<1 MW 1-25 MW 25-100 MW 100-500 MW

Huntington

SANPETE GRAND MILLARD


Hunter

500-1000 MW >1000 MW Transmission


(>138 KV)

SEVIER
Milford*

EMERY

County Interstate Data Source: UGS, EIA *Came online in late 2009

BEAVER

Blundell

PIUTE
Thermo Hot Springs

WAYNE

20 miles

40

IRON

GARFIELD

SAN JUAN

WASHINGTON
Red Rock SunSmart Millcreek Bloomington

KANE

Electricity

35

Utahs 10 Largest Power Plants, 2008


Capacity in megawatts (Percent of total) Flaming Gorge 152 (2.1%) All others 471 (6.4%) Intermountain 1,800 (24.6%) Bonanza 500 (6.8%) Currant Creek 567 (7.7%) Lakeside 568 (7.8%) Hunter 1,472 (20.1%) Utahs Total Electric Capacity: 7,323 Megawatts
Coal plant NG plant Hydro

Carbon 189 (2.6%) West Valley 217 (3.0%) Gadsby 393 (5.4%)

Utahs electricity portfolio is dominated by coalfired power plants. However, several new natural gas plants have been built in the past eight years (Lakeside 2007, Currant Creek 20052006, West Valley 2002, and three new units at Gadsby 2002) decreasing our reliance on coal generation.
UEMS Web page table: Table 5.1
Source: EIA Note: Only includes utility plants.

Huntington 996 (13.6%)

U.S. Electricity Generation by State, 2008


400,000 350,000 300,000 Gigawatthours 250,000 200,000 150,000 100,000 50,000 0
222,843 219,254 199,592 199,412 154,060 146,751 139,444 137,020 129,826 126,222 119,276 115,059 110,971 101,926 98,560 92,782 91,732 91,619 91,393 76,238 73,278 64,165 63,842 58,395 55,093 54,441 53,696 53,693 48,620 47,113 46,919 46,515 46,217 42,405 36,741 35,039 32,738 32,425 30,120 29,370 23,172 16,736 11,999 10,883 7,615 7,262 7,093 6,456 6,105 72 402,731

450,000

33rd

36

Texas Pennsylvania Florida Illinois California Ohio Alabama New York Georgia Indiana North Carolina Arizona Michigan Washington South Carolina Kentucky Louisiana West Virginia Missouri Tennessee Oklahoma Virginia Wisconsin New Jersey Oregon Arkansas Minnesota Iowa Colorado Mississippi Maryland Kansas Utah Wyoming Massachusetts New Mexico Nevada North Dakota Nebraska Connecticut Montana New Hampshire Maine Idaho Hawaii Delaware Rhode Island South Dakota Alaska Vermont DC

Utahs total net generation of electricity ranked 33rd in the nation in 2008.

UEMS Web page table: Table 5.9


Source: EIA Note: 2008 data are preliminary.

Utahs Energy Landscape

Net Generation of Electricity in Utah by Energy Source


2008
Gigawattshours (Percent of total) Municipal Geothermal solid waste Petroleum 260 (0.6%) 169 (0.4%) 46 (0.1%) Landfill gas Hydroelectric 27 (0.1%) 640 (1.4%)

Natural gas 7,255 (15.6%)

Coal has always dominated Utahs electricity generation portfolio, accounting for 94.2% of Utahs total net generation in 2005. However, in the past five years, 1318 megawatts of new natural-gas-fired electric capacity were built, decreasing coals overall share to 81.9% in 2008 and increasing natural gass share to 15.6%.
Coal 38,118 (81.9%)

UEMS Web page table: Table 5.10


Source: EIA Notes: 2008 data are preliminary; Other includes municipal solid waste, landfill gas, and other gases derived from fossil fuels.

Total: 46,515 gigawatthours

19602008
50,000
Coal Petroleum

40,000

Natural gas Hydroelectric Geothermal Other

Gigawatthours

30,000

20,000

10,000

0 1960

1965

1970

1975

1980

1985

1990

1995

2000

2005

Electricity

37

Sales of Electricity in Utah by Sector


2008
Gigawattshours (Percent of total)

Industrial 9,086 (32.4%)

Residential 10,722 (31.1%)

Electricity sales in Utah have averaged a 4.5% increase each year since 1960, roughly following increases in population (an average increase of 2.4% per year) and increases in per customer electricity use (an average increase of 3.0% per year). Each customer in Utah used roughly 13 MWh per year in 1960, and today each Utahn uses about 27 MWh per year.
UEMS Web page table: Table 5.19

Total: 28,074 gigawatthours

Commercial 10,230 (36.4%)

Source: EIA Notes: 2008 data are preliminary; Electricity used by the transportation sector (UTA transit) is very small (35 GWh in 2008) and is not shown on the graphs.

19602008
30,000
Residential Commercial Industrial Sales per customer

30

25,000

25 Sales (MWh) per customer

20,000 Gigawatthours

20

15,000

15

10,000

10

5,000

0 1960

1965

1970

1975

1980

1985

1990

1995

2000

2005

38

Utahs Energy Landscape

PacifiCorps 2009 Resource Energy Mix


Front office Interruptible 0.1% CHP transaction Gas-SCCT 0.03% 1.1% Class 2 Class 1 DSM DSM 2.3% 0.00% 0.5% DSG Renewable 0.00% 4.5%

PacifiCorps 2018 Projected Resource Energy Mix


CHP Class 1 DSM Interruptible 0.5% 0.02% DSG 0.1% 0.005% Gas-SCCT 1.2% Class 2 DSM Front office 5.4% transaction 7.7% Renewable 9.7% Existing purchases 7.8% Hydroelectric 7.3%

Existing purchases 7.1% Hydroelectric 8.9% Coal 58.0%

Coal 40.6%

Gas-CCCT 17.4%

Source: PacifiCorp IRP

Gas-CCCT 19.7%

Utahs net generation portfolio shows the fuel used to generate electricity at power plants in Utah; however, it is not a reliable indicator of the source of the electricity we actually use since much of the electricity generated in Utah travels out of state (e.g., about 75% of the electricity generated at IPP is consumed in California). The source of the electricity at the customers electric outlet can be estimated based on PacifiCorps (Utahs largest electricity provider) resource energy mix. For example, in 2009, a PacifiCorp customer can assume that 4.5% of the electricity they consume was generated by renewable resources such as wind, solar, geothermal, or biomass and that 8.9% comes from hydroelectric sources.
CHP: Combined heat and power Class 1 DSM: Demand side management (i.e., energy efficiency measures) Class 1 programs are those for which capacity savings occur as a result of active company control or advanced scheduling. Once customers agree to participate in Class 1 DSM program, the timing and persistence of the load reduction is involuntary on their part within the agreed limits and parameters of the program. In most cases, loads are shifted rather than avoided. Class 2 DSM: Demand side management (i.e., energy efficiency measures) Class 2 programs are those for which sustainable energy and capacity savings are achieved through facilitation of technological advancements in equipment, appliances, lighting, and structures. Class 2 programs generally provide financial and/or service incentives to customers to replace equipment and appliances in existing customer owned facilities (or to upgrade in new construction) to more efficient lighting, motors, air conditioners, insulation levels, windows, etc. Savings will endure over the life of the improvement. DSG: Distributed standby generators Existing Purchases: Power purchase agreements, PURPA qualified facilities (may include renewables). Front Office Transactions: Proxy resources that represent procurement activity made on an annual forward basis to help the company cover short term positions (i.e., spot market purchases may include renewables). Interruptible: Directly curtailed loads Gas-CCCT: Combined-cycle combustion turbine Gas-SCCT: Simple-cycle combustion turbine Renewable: Wind, geothermal, solar, and biomass

Electricity

39

Price of Electricity in Utah by Sector, 19602008


16

Cents per kilowatthour

12

8.

4
Residential (2008 cents) Commercial (2008 cents) Industrial (2008 cents) U.S. average res. (2008 cents) Residential (cents) Commercial (cents) Industrial (cents) U.S. average res. (cents)

UEMS Web page table: Table 5.20


Source: EIA Note: 2008 data are preliminary.

0 1960

1965

1970

1975

1980

1985

1990

1995

2000

2005

The price of electricity in Utah has generally decreased (when examining inflation-adjusted prices) over the years, with an average residential price of 8.3 cents per kilowatthour in 2008. Also, since 1989, Utahs residential price has averaged 1.7 cents less than the national average.

Average Residential Price of Electricity by State, 2008


35
32.50

30 Nominal cents per kilowatthour

25
19.36 18.79 17.57 17.50 16.35 15.96 15.95 15.69 14.62 14.41 13.92 13.81 12.83 12.68 11.93 11.67 11.60 11.39 11.07 10.94 10.39 10.36 10.30 10.25 10.15 10.13 10.06 10.02 9.99 9.79 9.72 9.72 9.70 9.46 9.25 9.14 8.98 8.93 8.81 8.52 8.30 8.22 8.18 8.03 7.97 7.82 7.58 7.48 7.03 7.01

20

42nd

15

10

UEMS Web page table: Table 5.21


Source: EIA Notes: 2008 data are preliminary; includes District of Columbia.

0
Hawaii Connecticut New York Rhode Island Massachusetts Alaska Maine New Jersey New Hampshire Vermont California Delaware Maryland Texas DC Nevada Florida Wisconsin Pennsylvania Illinois Michigan Louisiana Alabama Mississippi Arizona Colorado Ohio Georgia New Mexico South Carolina Minnesota Iowa North Carolina Virginia Arkansas Oklahoma Montana Kansas Indiana Tennessee Oregon Utah South Dakota Wyoming Missouri Kentucky Nebraska Washington North Dakota West Virginia Idaho

Utahs average price of residential electricity ranked 10th lowest in the nation in 2008 because of Utahs fully amortized coal-fire generation.

40

Utahs Energy Landscape

Electric Utility Customers in Utah by Class of Ownership, 2007


# of customers (Percent of total) Cooperative Other

41,740 (4.1%) 3,816 (0.4%)

Municipal
217,185 (21.1%)

The majority of electricity in Utah is provided by PacifiCorp, supplying 75% of Utah customers and accounting for 80% of in-state sales. Thirty-eight municipal-owned utilities provide the next-largest contribution, followed by nine cooperative electric utilities.
PacifiCorp
767,689 (74.5%)

UEMS Web page table: Table 5.24


Source: EIA Notes: 2008 data are not yet available; other includes state, political subdivision, and federal.

Electric Utility Sales in Utah by Class of Ownership, 2007


Megwatthours (Percent of total) Cooperative
983,573 (3.5%)

Other
114,979 (0.4%)

Municipal
4,334,736 (15.6%)

PacifiCorp
22,352,159 (80.4%)

Electricity

41

Utah Geological Survey, 1594 W. North Temple, Suite 3110, Salt Lake City, Utah 84116; (801) 537-3300

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