CAES News
Florida Natural Gas Facts
“According to a 2001 study by the United States Energy Information Administration, Florida ranks third nationally in total energy consumption. Florida’s demand for electric generation is expected to grow by approximately 58 percent between 2002 and 2020.” (“Florida’s Energy Plan,” Florida Department of Environmental Protection, January 17, 2006, p. 13, emphasis added).“Forecasts indicate that electric utility generation will cause a 92 percent increase in natural gas requirements over the next ten years. Increased dependency on natural gas could affect the reliability of electric utility generation supply in Florida. The primary threat to reliability is the possibility of natural gas supply disruption.” (“Florida’s Energy Plan,” Florida Department of Environmental Protection, January 17, 2006, p. 21, emphasis added).
“Presently, Florida’s electric generating capacity is based on a variety of fuels: natural gas represents 39 percent of installed capacity, coal represents 23 percent, and oil represents 24 percent…In the future, new generation capacity additions are forecasted to be primarily 80 percent natural gas-fired and 19 percent coal-fired.” (“Florida’s Energy Plan,” Florida Department of Environmental Protection, January 17, 2006, p. 15, emphasis added).
“The charts above show the current installed generating capacity by primary fuel source and the projected new generation capacity additions for 2005-2014. One area of concern, which these charts highlight, is the projected growth of natural gas as the primary fuel source.” (“Florida’s Energy Plan,” Florida Department of Environmental Protection, January 17, 2006, p. 15, emphasis added).
“Natural gas-fired generation, currently at 29.9 percent of total statewide energy consumption, is expected to increase to 44.4 percent over the next ten years.” (“Florida’s Energy Plan,” Florida Department of Environmental Protection, January 17, 2006, p. 16, emphasis added).
Cuba is already exploring for energy 60 miles from Florida’s coast, where U.S. exploration is prohibited by U.S. moratoria. China’s partners are China, Venezuela and others. Meanwhile, Florida senators are introducing new legislation that would extend off-limits areas out to 150 to 250 miles off Florida’s coast. (Source: multiple news reports).
“The source of more than 99 percent of the state’s electric and transportation energy comes from out of state.” (Florida Today, December 15, 2005, emphasis added).
“We have been in a situation where many states are looking at us and saying, 'It's just not fair for Florida to use all that fuel and not be willing to open up their waters [to energy exploration],'” said Colleen Castille, secretary of the Florida Department of Environmental Protection.” (South Florida Sun-Sentinel, November 8, 2005, emphasis added).
More than half of Floridians polled recently support offshore energy exploration. The Orlando Business Journal reported the results of a “poll ask[ing] whether or not there should be expanded oil and gas drilling in the Gulf of Mexico off of Florida. Of the 299 online responses, 57 percent favor expanded drilling, while 40 percent oppose it.” (Orlando Business Journal, February 24, 2006).
Key Quotes
“Florida will suffer high economic consequences if we do not open some additional areas of the Gulf waters to exploration,” said AIF president, Barney Bishop. “The skyrocketing prices of natural gas will force businesses to cut jobs, freeze growth and raise consumer prices. While we must work hard to protect Florida’s pristine environment, we must also compete fiercely in a global economy. To do that, Florida’s businesses must have a reliable and affordable energy supply.” (Barney Bishop, President - Associated Industries of Florida.)
“The current natural gas situation creates additional problems for Florida’s agricultural industry, which continues to suffer from the devastating hurricanes of 2004 and 2005,” said Mary Hartney of the Florida Fertilizer and Agrichemical Association. “We depend heavily on natural gas to help produce fertilizer and other agricultural materials. If production costs rise, Florida’s ability to grow food and fiber will suffer, and consumers will pay the price.” (Mary Hartney, Florida Fertilizer and Agrichemical Association)
Bob Burleson, president of Florida Transportation Builders Association, expressed concern about the rising cost of gas and diesel fuel, which directly affect road-building contractors and suppliers. “Unfortunately, we have no choice but to pass increased costs onto project owners,” he said. “For private development, this translates into higher prices for new homebuyers. On the public side, precious dollars needed for infrastructure construction will not stretch as far.” (Bob Burleson, President - Florida Transportation Builders Association)
“The increasing cost of natural gas has caused plastic resin prices to rise to record levels, putting American-based plastic facilities at a severe competitive disadvantage,” said Josh Young of the American Plastics Council. “As a result, factories are closing or moving off shore, leaving many Americans jobless. Over the past five years, the plastics industry has lost nearly 4,000 jobs in Florida and more than 300,000 jobs nationwide.” (Josh Young, American Plastics Council)
Associated Industries of Florida (AIF) represents more than 10,000 businesses across the state including manufacturers, agricultural organizations, fertilizer producers, farmers, chemical producers and countless small companies that are trying to manage escalating energy costs and the uncertainty of future availability. These businesses rely upon natural gas both as a fuel source and for production purposes.