Why California Is A Natural Gas State?

Oil & Natural Gas / Gas Shales / Economics

Jude Clemente previously reported that loaded with mandates for renewable energy and efficiency, California energy policies are often cited as an example for other states. The EPA Clean Power Plan mentions California a leading 22 times in this 128-page proposal, with the typical state getting no mentions at all. First enacted in 2003, California has one of our highest Renewable Portfolio Standards (RPS) at 33% by 2020, and Governor Brown wants to make this 50%. And at about 6,800 kWh per capita, Californians use half of the electricity that other Americans do. Full disclosure, Clemente has already documented some of the major problems with duplicating the California model. 1) high renewable mandates have power rates 45% above the national average, 2) residents use less electricity mostly because of mild weather, smaller homes with more people, and economic structure, and 3) California imports 33% of its electricity... by far the highest percentage in the U.S.

Lest we forget, California has increasingly become a natural gas state since the focus dramatically shifted to renewables in 2003. California now consumes about 2.5 trillion cubic feet (Tcf) of gas a year, compared to 2.1 Tcf in 2011, a third of which is for power generation. While U.S. natural gas production has boomed, California produces very little, and imports 95% of its natural gas via interstate pipelines from the Southwest, Rocky Mountains, and Canada. There are no liquefied natural gas import terminals in the state. The Santa Monica Mirror headlines California needed reality check: Fracking Gives New Meaning To California Rejecting LNG. Got Shale? California is Decisively a Natural Gas (and Oil) State...

The original URL is: https://www.forbes.com/sites/judeclemente/2015/07/12/why-california-is-a-natural-gas-state/#18d8adb65250