Alabama Energy October 09, 2008

Overview
Resources and Consumption
Alabama is rich in energy resources. The State has considerable conventional and unconventional natural gas reserves, substantial deposits of coal, and numerous rivers capable of hydroelectric generation. Several regions of Alabama are well suited for growing switchgrass, making the State a potential site for the installation of bioenergy plants. With a strong manufacturing base in paper products, chemicals, and textiles, Alabama’s industrial sector leads State energy consumption, accounting for nearly one-half of total energy use.

Petroleum
Alabama produces a small amount of crude oil from reserves located in the Black Warrior Basin in the north and the Gulf Coast in the south. Although production has been in decline since the early 1990s, high oil prices have sparked new onshore drilling activity in recent years. To increase production from aging fields, producers have repaired old wells and applied new technology. One petroleum refinery is located near the Port of Mobile, and a second is located in Tuscaloosa on the Black Warrior River. A third refinery is located in Atmore in the southern part of the State. Alabama markets receive finished petroleum products from Texas and Louisiana through the Colonial and Plantation pipelines. Per capita petroleum consumption in Alabama is about average compared to other States.

Natural Gas
Alabama’s annual natural gas production accounts for more than 1 percent of total U.S. output. More than one-half of this production typically comes from offshore wells, and more than one-third comes from coalbed methane deposits (unconventional natural gas found trapped within coal seams) in the Black Warrior Basin and the Cahaba Coal Field. As with oil production, Alabama’s natural gas production is in decline and does not satisfy all consumer demand, about three-fourths of which is from industrial users and electric power generators. Consequently, Alabama purchases additional supplies of natural gas transported by pipeline from Louisiana and Texas.

Coal, Electricity, and Renewables
Alabama ranks high among States in electricity generation. Coal is the dominant fuel for electric power generation, typically accounting for more than one-half of the electricity produced within the State. Although Alabama produces large amounts of coal in the northern part of the State, industry consumes most of the State’s output. Coal used for electricity generation is shipped in from other States, primarily Wyoming and Kentucky. Alabama is a major nuclear power generator, and in 2005 its two nuclear power plants produced about one-fourth of the electricity generated in the State. The State’s nuclear power capacity is expected to expand in mid-2007 when the Tennessee Valley Authority (TVA) restarts a nuclear reactor at its Browns Ferry nuclear power plant that has been idle since 1985. With more than two dozen hydroelectric dams, located mainly along the Alabama and Coosa Rivers, Alabama is the one of the top producers of hydroelectric power east of the Rocky Mountains. Hydroelectric power typically supplies at least 6 percent of State electricity generation.

Due to high demand from the industrial and residential sectors, Alabama’s total electricity consumption is high when compared to other States. Alabama’s per capita consumption of residential electricity is one of the highest in the country due to high air-conditioning demand during hot summer months and the widespread use of electricity for home heating during generally mild winter months. However, despite high total and per capita electricity demand, Alabama electricity production exceeds consumption and the State exports large amounts of electricity to neighboring States via several high-voltage interstate transmission lines.

Data

Economy:

Population and Employment
Alabama - U.S. Rank - Period
Population - 4.6 million - 22 - 2007
Civilian Labor Force - 2.2 million - 22 - 2007
Per Capita Personal Income - $32,404 - 43 - 2007

Industry
Alabama - U.S. Rank - Period
Gross Domestic Product by State - $165.8 billion - 24 - 2007
Land in Farms - 8.9 million acres - 32 - 2002
Market Value of Agricultural Products Sold - $3.3 billion - 23 - 2002

Prices:

Petroleum
Alabama --- U.S. Avg. --- Period
Domestic Crude Oil First Purchase: $129.03/barrel --- $128.38/barrel --- Jul-08
No. 2 Heating Oil, Residential: n/a --- $4.297/gal --- Jul-08
Regular Motor Gasoline Sold Through Retail Outlets (Excluding Taxes) --- $3.51/gal --- $3.543/gal --- Jul-08
State Tax Rate on Motor Gasoline (other taxes may apply): $0.18/gal --- $0.2159/gal --- Aug-08
No. 2 Diesel Fuel Sold Through Retail Outlets (Excluding Taxes): n/a --- $4.152/gal --- Jul-08
State Tax Rate on On-Highway Diesel (other taxes may apply): $0.21/gal --- $0.2214/gal --- Aug-08

Natural Gas
Alabama --- U.S. Avg. --- Period
Wellhead: $7.57/thousand cu ft --- $6.40/thousand cu ft --- 2006
City Gate: $13.80/thousand cu ft --- $12.39/thousand cu ft --- Jul-08
Residential: $23.81/thousand cu ft --- $20.19/thousand cu ft --- Jul-08

Coal
Alabama --- U.S. Avg. --- Period
Average Open Market Sales Price: $55.56/short ton --- $26.20/short ton --- 2007
Delivered to Electric Power Sector: $2.56/million Btu --- $2.08 /million Btu --- Jun-08

Electricity
Alabama - U.S. Avg. - Period
Residential: 10.79 cents/kWh --- 11.80 cents/kWh --- Jun-08
Commercial: 10.15 cents/kWh --- 10.88 cents/kWh --- Jun-08
Industrial: 6.73 cents/kWh --- 7.42 cents/kWh --- Jun-08

Reserves & Supply

Reserves
Alabama --- Share of U.S. --- Period
Crude Oil: 45 million barrels --- 0.2% --- 2006
Dry Natural Gas: 3,911 billion cu ft --- 1.9% --- 2006
Natural Gas Liquids: 56 million barrels --- 0.7% --- 2006
Recoverable Coal at Producing Mines --- 327 million short tons --- 1.7 % --- 2007

Rotary Rigs & Wells
Alabama --- Share of U.S. --- Period
Rotary Rigs in Operation: 5 --- 0.3% --- 2007
Crude Oil Producing Wells: 832 --- 0.2% --- 2007
Natural Gas Producing Wells: 6,227 --- 1.4% --- 2006

Production
Alabama --- Share of U.S. --- Period
Total Energy: 1,602 trillion Btu --- 2.3% --- 2005
Crude Oil: 646 thousand barrels --- 0.4% --- May-08
Natural Gas - Marketed: 286,220 million cu ft --- 1.5% --- 2006
Coal: 19,327 thousand short tons --- NA --- 2007

Capacity
Alabama --- Share of U.S. --- Period
Crude Oil Refinery Capacity (as of Jan. 1): 124,600 barrels/calendar day --- 0.7% --- 2008
Electric Power Industry Net Summer Capability: 30,664 MW --- 3.1% --- 2006

Net Electricity Generation
Alabama --- Share of U.S. --- Period
Total Net Electricity Generation: 13,559 thousand MWh --- 3.6% --- Jun-08
Petroleum-Fired: 14 thousand MWh --- 0.4% --- Jun-08
Natural Gas-Fired: 2,524 thousand MWh --- 3.0% --- Jun-08
Coal-Fired: 6,747 thousand MWh --- 3.9% --- Jun-08
Nuclear: 3,564 thousand MWh --- 5.1% --- Jun-08
Hydroelectric: 376 thousand MWh --- 1.2% --- Jun-08
Other Renewables: 321 thousand MWh --- 3.1% --- Jun-08

Stocks
Alabama --- Share of U.S. --- Period
Motor Gasoline (Excludes Pipelines): 1,388 thousand barrels --- 2.1% --- Jul-08
Distillate Fuel Oil (Excludes Pipelines): 827 thousand barrels --- 0.9% --- Jul-08
Natural Gas in Underground Storage: 20,149 million cu ft --- 0.3% --- Jul-08
Petroleum Stocks at Electric Power Producers: 190 thousand barrels --- 0.5 % --- Jun-08
Coal Stocks at Electric Power Producers: 3,874 thousand tons --- 2.5% --- Jun-08

Production Facilities Alabama
Major Coal Mines: None
Petroleum Refineries: Goodway Refining LLC (Atmore), Hunt Refining Co (Tuscaloosa), Shell Chemical LP (Saraland)
Major Non-Nuclear Electricity Generating Plants: James H Miller Jr (Alabama Power Co), Barry (Alabama Power Co), E C Gaston (Alabama Power Co), Widows Creek (Tennessee Valley Authority), Colbert (Tennessee Valley Authority)
Nuclear Power Plants: Browns Ferry (Tennessee Valley Authority), Joseph M Farley (Alabama Power Co)

Distribution & Marketing
Distribution Centers Alabama
Oil Seaports/Oil Import Sites: Mobile
Natural Gas Market Centers: None

Major Pipelines
Crude Oil: Citronelle-Mobile, Genesis, Hess, Hunt, Miller
Petroleum Product: Amoco, Colonial, Plantation
Liquefied Petroleum Gases: Dixie, Enterprise
Interstate Natural Gas Pipelines: Chandeleur Pipeline Co., Enbridge Pipelines, Florida Gas Transmission Co., Gulf South Pipeline Co., Gulfstream Natural Gas System, Southern Natural Gas Co., Tennessee Gas Pipeline Co., Texas Eastern Transmission Co., Transcontinental Gas Pipeline Co.

Fueling Stations
Alabama --- Share of U.S. --- Period
Motor Gasoline: 6,200 --- 3.8% --- 2007
Liquefied Petroleum Gases: 46 --- 2.0% --- 2007
Compressed Natural Gas: 3 --- 0.4% --- 2007
Ethanol: 4 --- 0.3% --- 2007
Other Alternative Fuels: 13 --- 1.1% --- 2007

Consumption per Capita
Alabama --- U.S. Rank --- Period
Total Energy: 467 million Btu --- 7 --- 2005

by Source
Alabama --- Share of U.S. --- Period
Total Energy: 2,119 trillion Btu --- 2.1% --- 2005
Total Petroleum: 115,943 thousand barrels --- 1.5% --- 2006
Motor Gasoline: 63,465 thousand barrels --- 1.9% --- 2006
Distillate Fuel: 30,040 thousand barrels --- 2.0% --- 2006
Liquefied Petroleum Gases: 3,391 thousand barrels --- 0.5% --- 2006
Jet Fuel: 2,313 thousand barrels --- 0.4% --- 2006
Natural Gas: 391,098 million cu ft --- 1.7% --- 2006
Coal --- W --- W --- 2006

by End-Use Sector
Alabama --- Share of U.S. --- Period
Residential: 398,123 billion Btu --- 1.8% --- 2005
Commercial: 268,449 billion Btu --- 1.5% --- 2005
Industrial: 961,342 billion Btu --- 3.0% --- 2005
Transportation: 491,087 billion Btu --- 1.7% --- 2005

for Electricity Generation
Alabama --- Share of U.S. --- Period
Petroleum: 27 thousand barrels --- 0.4% --- Jun-08
Natural Gas: 20,052 million cu ft --- 2.9% --- Jun-08
Coal: 3,235 thousand short tons --- 3.6% --- Jun-08

for Home Heating (share of households)
Alabama --- U.S. Avg. --- Period
Natural Gas: 38% --- 51.2% --- 2000
Fuel Oil: 0% --- 9.0% --- 2000
Electricity: 46% --- 30.3% --- 2000
Liquefied Petroleum Gases: 14% --- 6.5% --- 2000
Other/None: 2% --- 1.8% --- 2000

Environment:
Special Programs
Alabama --- Clean Cities Coalitions --- None

Alternative Fuels:
Alabama --- Share of U.S. --- Period
Alternative-Fueled Vehicles in Use: 8,935 --- 1.5% --- 2006
Ethanol Plants: 0 --- 0.0% --- 2008
Ethanol Plant Capacity: 0 million gal/year --- 0.0% --- 2008
Ethanol Use in Gasohol: 31,384 thousand gal --- 0.9% --- 2004

Electric Power Industry Emissions:
Alabama --- Share of U.S. --- Period
Carbon Dioxide: 85,116,254 metric tons --- 3.5% --- 2006
Sulfur Dioxide: 457,504 metric tons --- 4.8% --- 2006
Nitrogen Oxide: 122,275 metric tons --- 3.2% --- 2006

This data is available in table format at the "Energy Information Administration".