Tuesday, January 31, 2012

$460 Million Stimulus Comes to Florida This Year, From Shale Revolution, and NOT Taxpayer Dollars

John Hanger highlights a $460 million stimulus to the Florida economy this year, thanks to lower natural gas prices that prompted Florida's largest utility company to switch from oil to gas for electricity generation:

"Gas has been mainly displacing coal in electricity generation and not much oil for the simple reason that oil provides about 1% of America's electricity and that number is declining.  There is not a lot of oil to displace in the electricity industry, but FPL, Florida's biggest electric utility, is an exception.

Oil accounts for 15% of FPL's generation capacity and 4% of its electric generation, but FPL is aggressively switching its oil generation to gas, as a result of low gas prices, to the considerable benefit of the environment and consumers. FPL still has a monopoly on electricity generation so it collects from its customers every single dollar it spends on fuel to generate electricity.  Low natural gas prices will cut by an incredible $460 million the fuel costs collected from consumers just in 2012." 

HT: Robert Kuehl

3 Comments:

At 1/31/2012 10:16 PM, Blogger Benjamin said...

Soon, there will be CNG fleets--UPS, Fedex, city fleets. The savings are going to be huge. Perhaps cross-country 18-wheelers who can stop at special stats ion en route.

 
At 2/01/2012 6:39 AM, Blogger Larry G said...

there is a Congressional Research Report that looks at our aggregate energy resources by converting each fuel to equivalent barrels of oil:

http://epw.senate.gov/public/index.cfm?FuseAction=Files.View&FileStore_id=04212e22-c1b3-41f2-b0ba-0da5eaead952

it shows barrels of oil equivalent for natural gas:

barrels of oil equivalent (BOE):

1 million cubic feet = 1,028,000,000 Btu = 177.2 BOE = 5,643 cubic feet/barrel

Technically recoverable natural gas 1420.9 trillion cubic feet 251.8 billion BOE

we use about 20 million bpd

doing the math - about 35 years worth of nat gas if used totally for motor vehicles with no growth assumes and no increased discovered reserves.

anyone got different numbers?

anyone figure out if we converted all power plants to nat gas - how long it would last?

 
At 2/02/2012 3:26 PM, Blogger James A Harner said...

You cant replace the clean water that is being contaminated from the extraction process, that is exempt from the clean water act. This water feeds cities like NYC and Philadelphia.

 

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