Many Roads to a Common Goal: Automakers' Wide-

Ranging Approaches to 2017 and Beyond

Transforming our Nation’s Transportation

Sector: The Role of Natural Gas

Legislative Energy Horizons InstitutePortland, Oregon

July 22, 2011Kathryn Clay, Ph.D. Executive Director

Drive Natural Gas Initiative

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Transforming the transportation sector to meet our energy

and environmental goals:

Energy Security: Last year, the United States imported 1.5 billion barrels of

oil from dangerous, unstable nations.

•Local Air Quality: Natural gas vehicles produce far lower emissions of

criteria air pollutants than conventional vehicles.

We need a portfolio approach to meet these challenges, and all

alternative fuels will play an important role.

America’s natural gas industry is committed to being a part of the

solution.

• Over fifty participating distributors and producers of natural gas.

• Working to build the infrastructure to support natural gas vehicles nationwide.

• Representing the full natural gas value chain, from production to delivery.

AGA-ANGA Transportation Collaborative

Who we are:

NATURAL GAS

America’s New Energy Landscape

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Natural Gas: A foundation fuel for our energy

security

•Our nation is the largest producer of natural gas in the world.

•The United States now has more natural gas than Saudi Arabia

has oil.

•Over the last decade, U.S. shale gas production has increased

12-fold and now comprises about 25 percent of total U.S.

production.

Shale Gas Plays and Basins are a vast

resource, widely distributed across the United States.

Thirty-two states are now producing, or have produced, natural gas.

Game-changing discoveries mean abundant

domestic natural gas for the coming decades.

Source: EIA Annual Energy Outlook 2011

U.S. Natural Gas Resource Estimates (TcF)Sources: National Petroleum Council, Potential Gas Committee, ICF Consulting.

0

500

1000

1500

2000

2500

NPC 2003 PGC 2006 PGC 2008 ICF 2009 PGC 2010

Natural Gas Abundance: Independent sources estimate one hundred years supply.

Our Commitment: Responsible Resource Development

•Safe, reliable extraction of natural gas is the first priority for every segment of the industry.

•Engaging all stakeholders is critical to defining and meeting environmental goals.

•All energy production methods bring risks and trade-offs to manage.

•The industry is committed to best practices and strict enforcement of those practices.

NATURAL GAS:Part of the

Transformation of Transportation

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•Greenhouse gas emissions 29% lower

than comparable gasoline light-duty

vehicles.

•Domestic gas production accounts for

89% of natural gas consumed in the

United States.

• Natural gas prices are decoupled

from petroleum, with abundant

resources to support stable prices for

years to come.

Natural Gas: Clean, Domestic,

Secure, Affordable Energy for

Transportation

Compressed Natural Gas (CNG) costs one-third to one-half less than gasoline on an energy equivalent basis.

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$0.00

$0.50

$1.00

$1.50

$2.00

$2.50

$3.00

$3.50

$4.00

$4.50

Gasoline Diesel CNG Ethanol (E85) Propane Biodiesel (B20) Biodiesel (B99-B100)

Source: DOE Clean Cities Program, Alternative Fuel Price Report, January 2011http://www.afdc.energy.gov/afdc/pdfs/afpr_jan_11.pdf

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Auto Manufacturer Markets with Light Duty NGVs on offer

GM (Chevrolet, Opel)

Fiat/Chrysler

Ford

Hyundai

Mercedes

Mitsubishi

Toyota

Volkswagen

Nissan/Renault

Saab

Europe

India, Thailand

Europe

Europe

India, Thailand

Europe

Volvo

Europe, India, Thailand

Europe, India, Columbia, Thailand

Europe, India

Europe, Brazil

Europe, Thailand, Singapore, India

Many automakers already offer natural gas vehicles in other nations….but not in North America.

• Washington, D.C.

– 439 of 1,500 city buses run on natural gas

• 53 percent lower nitrogen oxide emissions

• 85 percent lower particulate matter

• 89 percent lower carbon monoxide

• Portland, OR: 100 percent of airport shuttles operate on

natural gas

• Ardmore, PA: 8 million cleaner miles on 73 CNG vehicles

to transport children to school

Natural Gas Vehicles:

Solutions for Cities and Local Air Quality

Sempra•Maintains a fleet of 1100

natural gas vehicles, over 20%

of their total.

•Over half of their CNG

refueling stations are open to

the public.

Questar• A fleet of 450 natural gas

vehicles,

• 26 owned and operated NG

refueling stations.

AGL

•Recently requested approval

from regulators for $10 million

to construct public CNG

charging stations and purchase

of home refueling stations.

• The decision is pending and

expected soon.

Natural Gas Distributors: living our commitment

Encana•Converting a fleet of 1,300

vehicles to bi-fuel.

•Up to 150 bi-fuel vehicles

will be in place by this fall.

Chesapeake •Converting its entire fleet

of 4,200 vehicles by 2014.

•Last month in Oklahoma,

introduced their 800th

natural gas vehicle.

Natural Gas Producers: living our commitment

Apache•Doubling the size of its CNG-

powered vehicle fleet this year.

• Doubling the number of CNG

stations the company operates.

•Intends to have 80 percent of

the fleet, about 720 vehicles, on

bi-fuel operation by the end of

2015.

Going forward, we will work to:

•Build regional corridors for LNG and CNG fueling.

•Partner with developers of home refueling equipment.

•Engage automakers to encourage production vehicles

fueled by natural gas.

ANGA-AGA members bring natural gas from the

wellhead to the fuel dispenser.

Transportation Collaboration Participants

Anadarko Petroleum Corporation

Apache Corporation

BG Group

BHP Billiton

Bill Barrett Corporation

Cabot Oil & Gas Corporation

Chesapeake Energy Corporation

Cimarex

Devon Energy

El Paso

Encana Corporation

Energen

EQT

High Mount Exploration &

Production LLC

Laredo Petroleum

Linn Energy, LLC

Newfield Explorations Company

Noble Energy, Inc.

Petrohawk Energy Corporation

Pioneer Natural Resources

Plains Exploration & Production

Company

QEP Resources

Range Resources

Seneca Resources

SM Energy Company

Southwestern Energy Company

Talisman Energy Inc.

Ultra Petroleum Corp.

Williams Company

XTO Energy Inc.

Transportation Collaboration Participants

AGL Resources

Alagasco

Atmos

Avista

Cascade Natural Gas

CenterPoint Energy

Citizens Energy

DTE Energy

Integrys

Intermountain Gas

Metropolitan Utilities District

MDU Resources Group: Montana Dakota Utilities / Cascade Natural

Gas / Intermountain Gas / Great Plains

Company

National Fuel

National Grid

New Jersey Natural Gas

NiSource

ONEOK: Texas Gas Service

Piedmont Natural Gas

Questar Gas

Sempra: San Diego Gas &

Electric/Southern California Gas

Southwest Gas

TECO Energy

UGI

Vectren

www.aga.org www.anga.us

For More Information on the Transportation

Collaborative please visit:

http://cata.aga.org