GUEST EDITORIAL

By:  Rick Kaysen and Hank True

Wyo No. 1 in BTU Energy

On November 16^th and 17^th the Wyoming Heritage Foundation held a public forum on energy. There were national and state speakers; nearly 550 people attended.

Why was this forum so important and timely?  Why is energy so important? The best answer is that America’s sustained economic growth has benefitted from affordable and dependable energy supplies. But will that last? Over the next 20 years the U. S. will need 43% more natural gas; 35% more oil; 33% more electricity; 24% more coal; 7% more hydro carbons and resources will need one thousand new power plants; worldwide, electric consumption will increase by 76%.

Wyoming, as we all know, is an energy producing state. In August we asked the Wyoming Geological Survey how Wyoming’s recoverable BTU (British Thermal Unit) energy reserves compare to other producing regions in the entire Western Hemisphere. The answer, Wyoming is number one, with an estimated 374 billion barrels of oil equivalency!

Today, Wyoming is number one in the nation in coal and uranium production, sixth in oil; and soon to be 2^nd or 3^rd in natural gas. Wyoming exports 70% of its electricity production . . . while California imports 20% . . . And, guess what is the nation’s fastest growing source of electricity on a percentage basis - - wind, which Wyoming has begun to convert to electricity.

As winter approaches, some Wyomingites will face home heating increases of up to 50%. That will be hard on many, especially those with limited or fixed incomes. But rising energy prices nationwide are caused by supply and demand - - largely due to transportation, computer usage and electric technologies. (In America today, computers account for 17% of all electricity consumed).

The good news is Wyoming benefits from energy production. The coal bed methane (natural gas) play in the Gillette area has an estimated 25 trillion cubic feet of reserves. It could generate $100-$200 million a year just to state government for 30 years. The state’s current budget surplus is a far cry from the $183 million projected deficit a year ago . . . and it’s the reason why Wyoming citizens and businesses will not be looking at a tax increase in the foreseeable future.

What are the pressures and changes today? Just as the U.S. has no national energy policy, nor does Wyoming. Kyoto Protocol - - direct and indirect, rejected or ratified, scaled down or not, could hurt Wyoming’s coal production if coal burning power plants across the country are forced to limit carbon emissions. Deregulation or regulation of electricity is another issue facing our state. So, too, is the opportunity to construct new power plants and transmission systems to meet growing electrical demand nationwide. Imagine blending our clean burning natural gas and wind power with our low sulfur coal at power plants built in Wyoming. Major automobile manufacturers will have liquid hydrogen fuel cell cars in production beginning in 2002 . . . a clear sign for major changes, and opportunities, over the next 20 years.

The Wyoming Heritage Foundation’s "Energy: Wyoming and the U.S." forum addressed growing world energy demand, estimated supplies and shortages . . . and Wyoming’s role as a producing state. Who is to say where Wyoming will be 20 years from today. Wind power probably will increase. Coal, oil and gas, and uranium can still be the drivers. But maybe with advanced technology, non-renewable resources will be transformed into low emission hydrogen or other energy forms. It’s a road map to harness energy from Wyoming’s abundant coal and natural gas reserves.

So should Wyoming study or invest in the developing, yet uncertain, hydrogen energy economy? Given change, it’s something to think about if Wyoming is to maintain its status as the BTU Capitol of the Western Hemisphere. Progress is not standing still while others move forward.

Rick Kaysen, Chairman, Wyoming Business Alliance/Wyoming Heritage Foundation

Hank True, Vice Chairman, Wyoming Business Alliance/Wyoming Heritage Foundation