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OKLAHOMA
Jim Roth
Corporation Commissioner
OKLAHOMA’S WINDS OF CHANGE

“How Wind Energy Makes Oklahoma #1”

“Where the wind comes sweeping down the plains,” who knew that Rodgers and Hammerstein were talking about wind energy when they wrote that famous line in the song Oklahoma! Truth be known, at the time they wrote the song neither had even been to Oklahoma. However, their characterization was very accurate and still is today. Oklahoma has now found a way to harness the wind as it sweeps down the plains and turn it into usable energy in the form of electricity.

If you haven’t driven down Interstate 40 towards Texas in awhile you may be surprised when you reach Elk City. It is an amazing sight to see an entire farm of 260 feet tall wind turbines with blades stretching over 125 feet across. The behemoths at OG&E’s Centennial Wind Farm in Woodward already produce 170MW, or enough power to supply over 40,000 homes. They expect to almost double that output to 300MW in 2009.

Oklahoma has an abundance of wind energy, but only recently has this resource become exploited for production. Before 2003 Oklahoma had no wind power, but by the end of 2006 we were producing over 500MW, representing a capital investment of over $600 million. The American Wind Energy Association (AWEA) estimates that Oklahoma ranks 6th among the states in installed wind energy capacity.

Wind energy is an excellent source of clean renewable energy but it is not a sustainable energy and cannot be stored. The downfall is that if the wind doesn’t blow then there is no energy produced. That is why wind energy is best used as an integrated form of energy working with our current plants. The more wind energy we produce means we burn less coal and natural gas in our primary power plants.

Oklahoma farmers have been using wind energy for many years to pump water from wells using windmills. In parts of the state, windmills have been used since before statehood to pump water from low-lying areas. And wind has also been used to turn large grinding stones to grind wheat or corn, just like a water wheel is turned by waterpower. Oklahomans have been harnessing the power of the wind since before the days of the dust bowl. Now we have the opportunity to take an old idea and modernize it to create power for the next hundred years.

Oklahoma has over twice the wind energy potential per square mile than Texas, according to Tim Hughes, director for the Oklahoma Wind Power Initiative. To give some idea of the state's potential, a national study shows that Oklahoma could provide nine percent of the U.S. needs for electricity. This not only means cheaper more efficient energy for Oklahomans, it also would create a billion dollar industry for the state. In order for this to happen it will take the business community, policy makers and local communities to make wind generation and renewable energy a priority.

On a smaller scale, across the nation people are utilizing small wind turbines to power their homes and businesses. Oklahoma based Bergey Wind Power is one of the leading manufactures of small turbines in the country. With 500 domestic and international dealers, Bergey is bringing power to all corners of the globe directly from Norman Oklahoma. Including war-torn Afghanistan where utility infrastructure was severely damaged. These small wind turbines provide power to remote areas that might otherwise have to wait years for service. Consumers are using the residential models in conjunction with other technologies such as solar cells and geothermal to create self sustaining homes that don’t require any energy from local power plants.

The next time the wind is sweeping remember that somewhere in Oklahoma clean power is being generated and that less coal or natural gas is being burnt for energy. It is far easier to endure windy Oklahoma days knowing the wind is as valuable as black gold.

OKLAHOMA’S OPPORTUNITIES WITH BIO FUELS

“Tomorrow’s Promise for Oklahoma’s New Frontier”

Cars were never intended to run on petroleum-based fuels. Nikolas Otto, the inventor of the combustion engine envisioned his masterpiece to run on ethanol fuel produced from corn. Another German, Rudolf Diesel inventor of the engine that dawns his name, designed his motor to run on peanut oil. But the most well-known inventor of the automobile, Henry Ford, produced his first Model T in 1903 at that time he announced this world-changing invention would run completely on bio fuel created from hemp. However after large supplies of inexpensive and easily refined crude oil was found in North America those early bio fuel pioneers ideas went up in smoke.

Fast forward to 2008 and the need for bio fuel is as great as anytime in our history. With Diesel fuel prices approaching $4.00 and gas prices over $3.00 Oklahomans need to find alternative sources to power our state. Just as Oklahoma is one of the leaders in the exploration of oil we too can be ahead of the curve in bio fuel innovation and production.

Oklahoma State University is already bolstering the state’s ethanol production in their Agricultural Sciences and Natural Resources Division (DASNR). Cowboy scientists are looking for new ways to convert crop residues and grasses to ethanol, rather than the traditional method of using corn that has been around since the days of moonshine. The OSU team is examining all types of perennial grasses and even straw. Ray Huhnke is the director of DASNR and sees a great future in the research. “I like to tell people that if you see a round bale in a field, consider that single bale to be a barrel of liquid fuel,” he said. It is estimated that grasses will provide more than sixty gallons of ethanol per dry ton of material.

One of the concerns facing Oklahoma in regards to bio fuel production is to use material that doesn’t affect the nations food supply. With more and more corn being converted to fuel there is less to be used in production of food and feed for livestock. This creates a supply and demand dilemma and that raises the cost of corn per bushel.

As a state Oklahoma has realized the need to press forward with the research and production of bio fuels. Governor Brad Henry in conjunction with the State Department of Commerce sponsored the annual Grow Conference dedicated to the development of bio fuels. This conference provides a forum for the researchers, growers and policy makers to come together and forge a direction for our state in the flourishing bio fuel industry.

Oklahoma oil companies are world leaders in the exploration and production of crude oil. However, even the oil and gas industry has realized the need to supplement our nation’s oil consumption with alternative sources. Sixty percent of our nation’s oil comes from foreign countries, some of which are hostile towards the United States. Bio fuels can help our state and country with less dependence on foreign oil and boost our economy with Oklahoma produced fuel energy.

One Sooner State company is looking beyond crop based fuels and utilizing another abundant resource to power fleet vehicles. Oklahoma based HydroDyno has developed a hybrid hydrogen system that converts water into energy and works with gas and diesel vehicles to increase fuel economy in some cases up to fifty percent. Hydrogen filling stations are far and few between, so HydroDyno’s system produces hydrogen onboard, mixing with the current fuel to make the vehicle more fuel efficient and environmentally friendly. HydroDyno primarily works with operations that utilize fleet vehicles. Companies can save thousands of dollars per year on fuel costs and cut down the number of barrels of oil our state consumes daily.

The production of hydrogen as a source of energy is one of the most promising technologies of this generation. It is accomplished by using a process known as electrolysis, or electrically charging water to separate the hydrogen and oxygen molecules creating energy. During this production of hydrogen, there is virtually no pollution or toxic byproducts, and the feed sources are fully renewable, so the importance of electrolysis is increasing as human population and pollution increase.

Oklahoma has a tremendous opportunity to be at the forefront of energy innovation in the field of bio fuels. Policy makers must recognize the need for our participation in this growing field. Providing funding and the opportunity for research will be what seperates Oklahoma from all the states who continually rely on petroleum based fuels. It is obvious that in our lifetime we will never completely abandon this concept, but the more we can suppliment their use the less dependent we will be on foreign lands for our energy needs.

OKLAHOMA’S OIL & GAS INDUSTRY

“An Honorable History and a Promising Future”

Oklahoma has a rich history in the oil and gas industry stretching back to the days of E.W Marland and the Marland Oil Company in Ponca City. In the early 1920’s it was believed that Marland controlled approximately 10 percent of the world’s oil production, which is equivalent to Saudi Arabia today. Although the grandness of the Marland Empire is gone the oil and gas industry of Oklahoma is stronger than ever.

Oklahoma is the nations’ fifth-largest producer of crude oil, producing approximately 170,000 barrels of oil everyday. Crude oil production has provided nearly $75 billion in revenues to our state and it is estimated that two to three times the amount produced still remains in the ground. In 2006 alone, oil and natural gas producers contributed $1 billion to the state through the gross production tax.

Since the creation of the Oklahoma Energy Resources Board by the State Legislature in 1993, the industry has worked to be better community partners. To date, more than $38 million has been spent on restoring orphaned and abandoned well sites around the state. The industry has also made a tremendous effort towards educating the public about the exploration, extraction and refining of oil.

The effects of oil production have significant social and environmental impacts. Opponents of the process would point out the generation of polluting wastes are not produced by other alternative energy sources. There are also numerous counts of oil spills on land and sea. In some cases damaging delicate ecosystems that will never recover. Oil opponents would also point to the growing sector of renewable energy that is safer and cleaner. Burning fossil fuels and the production of carbon dioxide is widely considered the main cause of global warming. (Unless of course you’re a narrow minded U.S. Senator from Oklahoma who thinks it is all a hoax. Go Andrew!) Although burning oil produces less carbon dioxide than coal and there are fewer processes to limit carbon dioxide output in vehicles.

There is no doubt that oil consumption will continue to rise at a feverous rate, much faster than prodution can provide fuel. That is why Oklahoma’s future lies in creating better ways to find, extract and produce oil. We also must be on the forefront of the development of alternative fuels and biofuels. Not to replace the production of oil but to compliment it.

An evolving term in world of oil production is EOR or enhanced oil recovery. This is a generic term for more efficient ways to extract oil from the ground with the least amount of lost product. It is the job of the Corporation Commission to ensure that our companies are practicing EOR to create a more profitable and environmentally friendy industry. And to their credit, some of our companies are leading the industry in innovative EOR techniques.

One EOR technique widely used in the industry and in Oklahoma is the injection of gas into the reservoir whereupon it expands and thereby pushes additional oil to the surface. It also dissolves in the oil to lower its viscosity and improves the flow rate of the oil. One of the gasses used in the process is carbon dioxide and this gas is also produced by coal burning electric plants, who have the ability to capture and use it as a commodity. Both industries are heavily regulated by the Corporation Commission which gives the agency the ability to encourage partnerships in situations when they can be beneficial to one another.

Part of the foundation of Oklahoma’s history is that of the oil and gas industry. Over the years we have enjoyed the feast and endured the famine of the oil markets. In the 1980’s the industry mostly abandoned our state like a drywell. In 2008 we are no longer in our infancy, at a 101 years old Oklahoma is smarter and better equipped to regulate the industry while allowing it to be profitable. But most of all, protecting our citizens while ensuring success in our future.

ENERGY EFFICIENCY

A FUEL EVERY OKLAHOMAN OWNS

We live in a time of serious concern about Energy and its costs. There is no doubt we have witnessed growing impacts on every Oklahoman’s life and budget. Supplies are considered scarce and demand is considered on the rise. All across our country the search has now begun for an American future where energy independence can safeguard our national safety and our quality of life. Some have termed our dilemma an ‘impending energy crisis.’ Yet, a big part of the solution may be cheaper and easier than we think, in the form of energy efficiencies.

You see, the cheapest form of power and energy is that kilowatt saved and never generated. Call it conservation, call it fiscal discipline, call it a cleaner America, but whatever you call it be sure to call it Cheap. In fact, Energy Efficiency programs, at work in many states, have been implemented at a cost of only 3 ¢ per kilowatt hour, as opposed to the nearly 8¢ per kilowatt hour paid today by Oklahomans for electricity.

The “Fifth Fuel,” energy efficiency is unlike: coal, nuclear, natural gas or wind power, because it’s something every single citizen owns and controls. And it’s time that this citizen-owned fuel becomes a greater resource for Oklahoma’s energy future.

So what is energy efficiency, what does that mean for you and me, and how can it help?

What is Energy Efficiency

Energy efficiency refers to products or systems using less energy to do the same or better job than conventional products or systems. In today’s world, there are many efficient products, homes, and buildings. They include efficient appliances for the kitchen, heating and cooling equipment, home electronics, and other products to weatherize our homes and improve the efficiency of buildings and industrial facilities.

If Americans took advantage of these more efficient products and took steps to improve the efficiency of their homes and buildings, they could save 10 to 30 percent on their energy bills, cost-effectively. It could help prevent or delay the need for building dozens of new power plants or other new energy infrastructure. In addition, it can help create jobs, keep energy prices reasonable, and reduce greenhouse gas emissions and air pollution.


With energy efficiency programs, you can benefit from lower energy bills, but the benefits are not limited to just your pocketbook. The benefits of Energy Efficiency can:

· Reduce customer energy bills.

· Give customers greater control over energy costs.

· Perform at a lower cost than new energy supply from new power plants in many cases

· Reduce air pollution and greenhouse gases.

· Can create jobs and improve state economies


What it means for utilities

Energy efficiency offers an alternative to utilities as well. When energy providers use energy efficiency to help their customers reduce the amount of energy required, instead of investing in new energy supplies to meet the growing need for energy services, it provides many other benefits while not requiring a lot of money up front. The energy provider also benefits by reducing the costs of meeting its customers’ needs. Because energy efficiency often costs less than building or buying most new supplies, this can prevent greater rate increases for the electricity and natural gas that you buy.

Studies show that energy efficiency helps the local economy. Instead of importing natural gas and electricity supply from outside of your community, energy efficiency relies on domestic and local companies and retailers to provide energy management services and energy-saving products.

Energy efficiency programs also provide customers with home improvements that enhance home comfort and increase property values for homeowners and businesses.

You can also feel good that you are doing something for the environment by supporting energy efficiency investments. Power plants and natural gas use are currently responsible for about 50 percent of greenhouse gas emissions, which contribute to the risks of global climate change. In fact, the energy use in the typical home contributes twice the greenhouse gas emissions as a typical vehicle in a year’s time. By reducing your own energy use, you can help reduce these emissions, as well as air pollution, water use, and the amount of natural resources (fossil fuels) being extracted from the earth. All of these actions help protect human health and our environment.

Energy efficiency also helps protect national energy security. Using less energy protects the economy and consumers from possible price fluctuations and from energy service disruptions due to natural causes.

How it helps

Energy efficiency would help to address our growing energy needs and rising energy costs. The amount of electricity and gas used in the United States is expected to rise over the next 25 years, putting stress on current systems and driving up energy costs.

The increasing demand for electricity and natural gas requires your utility to find new supplies of energy. Most new supply options require a great deal of money up front, which increases your utility bills.