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Today’s Energy Picture

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Presentation on theme: "Today’s Energy Picture"— Presentation transcript:

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2 Today’s Energy Picture
Total energy production, from fossil fuels, nuclear electric power and renewable energy, recorded an all-time high during 2014 of quadrillion Btu. The quadrillion Btu produced during Q was 6% more than Q1 2014’s quadrillion Btu. Total energy consumption has been declining since its 2007 peak of quadrillion Btu to quadrillion Btu for Despite the cold winter of , Q total consumption was quadrillion Btu, compared to for Q A major trend in the industry that is making the United States more energy-independent is the decrease in energy imports and increase in energy exports. Since imports’ peak during 2007, it decreased 32.8% by 2014 while exports have increased by 131%.

3 Electricity Energizes the Economy
As of April 2015, US electric utilities were capable of generating 1.1 million megawatts of electricity, with natural gas accounting for 41.88%; coal, 27.81%; nuclear, 9.21%; hydro, 8.42%; wind, 5.44%; and solar, 0.91%. The projections for 2020 reveal that natural gas, nuclear, wind and solar generation will increase as coal and hydro decrease. Wind, at 37%, and solar, at 82%, will increase the most, although their combined capacity will only be 9.11%. Although just less than 25% of total electric generation by 2020 will come from coal, additional capacity since 2008 and plants currently under construction show coal having a very minor role, compared to renewable energy sources.

4 Natural Gas: Clean, Abundant and Low-Cost
According to the American Gas Association, there are approximately 72 million natural gas customers: 66 million homes, 5 million businesses, 195,000 factories and 1,900 electric generating units. The average American home consumes approximately 168 cubic feet of natural gas per day and will save, on average, $693 per year when using natural gas for heating, water heating, cooking and clothes drying, compared to comparable electrical appliances. The total amount of recoverable natural gas resources and dry proved natural gas reserves at the end of 2014 was 2,850 trillion cubic feet (Tcf), which represents the highest combined future supply of natural gas ever.

5 Renewables’ Significant Contribution
During 2014, US renewable energy production was the highest ever, at 9,656 quadrillion Btu, and total consumption was also the highest ever, at 9,622 quadrillion Btu, with hydroelectric, geothermal, solar, wind and biomass the primary sources. Production and consumption continued to increase during Q1 2015, with 2,444 and 2,419 quadrillion Btu, respectively, compared to production of 2,385 and consumption of 2,370 quadrillion, Btu, respectively, for Q US solar-generated electricity consumption is projected to increase at a 9% annual compound rate and US wind-generated electricity consumption at a 6% increase from 2015 through 2019.

6 Power Potentates Duke Energy was the largest electric utility in the US, based on a market value of $55.4 billion, as of April 6, The company has approximately 7.3 million US customers in Southeast and Midwest states. Southern California Gas Company was the largest natural gas utility by total customers, 5.57 million, and total revenues, $2.85 billion, during 2013. The second and third largest electric utilities, based on their 2015 market value, were NextEra Energy and Dominion Resources and the second and third natural gas utilities, based on their 2013 total revenues, were Atmos Energy Corporation and Pacific Gas.

7 Transformative Trends
Many large utility companies that were participating in multiple sectors of the market are separating their various divisions, so each can focus on competing successfully in their specific sectors. The EPA’s new Clean Air Act mandates a 30% reduction in nationwide CO2 emissions by 2030, which will likely force more rapid closure of coal-fueled power plants and a significant number of nuclear facilities closed by 2024. Consumers will continue to gain more control of their energy usage – and even its production – with the huge potential for localized solar power generation and smart home technologies, much of which will cost less and reduce the demand from traditional utilities.

8 Advertising Strategies
Look for local utilities and/or their parent companies that are separating their various divisions, as each are likely to have separate advertising budgets and specific products and services to promote, and television will still be the best medium to reach those audiences. With an average saving of $693 per year for residential consumers of natural gas, compared to electricity, natural gas utilities should make this a primary branding point of their TV advertising, especially during the fall, as the heating season approaches. Electric utilities that significantly reduce their operation of coal-fueled power plants can promote this transition with the visual power of television, as the resulting reduction in CO2 emissions will resonate with the many environmentally conscious consumers.

9 Social Media Strategies
Utilities can host a contest on social media, asking users to explain and/or submit photos or videos of how they are reducing their energy consumption, and then voting on their favorite. The winner receives a smart thermostat or similar smart home technology product. Utilities often appear as monolithic organizations to the public, so companies should designate one or more persons to serve as “brand ambassadors,” creating a more personalized connection with consumers through blogs, videos and other relevant content. Companies that manufacture and/or install (solar, wind and biomass) can use social media to distinguish themselves from traditional utilities and energy sources, especially with testimonials from customers using renewables onsite.

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