IV. ECONOMIC DEVELOPMENT AND ENERGY JOBS Utah has abundant conventional energy resources, including three large oil fields with an estimated 286 million barrels in oil reserves. Utah is home to two large natural gas fields, and Utah’s proven natural gas reserves total 6.7 trillion cubic feet (tcf).36 In 2009, the State ranked 13th in the nation in the production of coal at 21.9 million tons. Utah currently has about 202 million tons of coal reserves under lease at active mines, while state-wide recoverable coal resources total about 15 billion tons (this number does not take into account economic or land use constraints).37 Another estimate from the Bureau of Land Management Price Field Office resource management plan indicates statewide coal reserves at 14.3 billion tons or greater than 50 years at current production rates. Table 2 summarizes Utah’s proven reserves and current consumption rates for petroleum, natural gas, and coal. It also shows remaining years of proven reserves at current consumption rates. Several factors affect these values, including unproven reserves, change in production rates (e.g., natural gas projected to increase, coal possibly to decline), new reserve discoveries, etc. Utah already imports a significant part of its consumed petroleum. Conventional energy and mineral resources have historically served as the backbone of Utah’s energy production. For example, in 2009, over 96% of electricity generated in Utah was fueled by coal and natural gas, 82% of which was coal and 14% natural gas.38 Of the electricity generated in Utah in 2009, approximately 37% was exported out of state.39 That is not to say, how-
ever, that the State’s electricity needs are served only by the in-state coal and gas fired plants. Rocky Mountain Power, the State’s largest electric utility provider, supplies electricity to the State through a diverse portfolio that includes coal, natural gas, hydro, geothermal, wind, wholesale market purchases and other generation resources. For example, in 2009, Rocky Mountain Power-owned wind plants produced over 2,000 GWh of electricity. Generation resources located in Utah contribute to Rocky Mountain Power’s portfolio, including some Utah renewable resources, primarily from geothermal and hydro resources. Utah possesses an array of renewable resources. Most renewable resources are used to generate electricity. About 2.5% of the State’s electricity generation comes from renewable resources, approximately 26% of which is from geothermal, 65% from hydroelectric, 3% from biomass, and 6% from wind, with a small fraction from solar.40 New studies indicate meaningful renewable resource capacity in the State.41 Fostering jobs, manufacturing strengths, and innovative entrepreneurial enterprises emanating from Utah’s energy sector is critical to success in future employment and investment opportunities. Department of Labor employment numbers as of June 30, 2010, provide the following baseline (Table 3) for Utah’s energy and natural resource industries.42 The energy sector contributes substantially to state tax revenues, thereby enhancing and stimulating various employment sectors of the State beyond energy. Also, a significant amount of energy development takes place on State School and Institutional Trust Lands generating direct revenues that support K-12 public
Table 2 Utah’s Current Annual Production Rates and Proven Reserves of Conventional Fossil Fuels (All values referenced elsewhere in this report.) Petroleum Natural Gas
Coal*
Proven Reserves
286 mbbl
6.7 bcf
202 mt
Yearly Production Rates
45 mbbl
0.131 bcf
21 mt
Remaining Years of Reserve at Current Production Rates
6 years
51 years
10 years
mbbl = million of barrels, bcf = billions of cubic feet, mt = millions of tons *including Kaiparowits (federal lands), 505 mt proven reserves, 25 years proven reserves at current production rates
18
Energy Initiatives and Imperatives
