James Adams: Energy Economy
jradams1Louisiana plays a large role in the US's energy economy. It is both the highest energy consuming state (per capita) and the 8th largest energy producing state in the US. Louisiana is also the fourth highest producer of natural gas (7% of the US's total natural gas production) and has 8% of the US's natural gas reserves. The state’s 17 oil refineries enable the capacity to refine 3.3 million barrels of crude oil per day, which is 1/5 of the nation's total refining capacity. Louisiana also exports a considerable amount of energy resources. The New Orleans port alone handled 1/5 of the US's coal exports in 2018, and the Sabine Pass Liquid Natural Gas (LNG) export terminal exported 22% of the US's natural gas exports in 2017.
Though Louisiana is one of the last 12 states in the US that have yet to produce a Renewable Portfolio Standard (RPS) and currently generates only 1.8% of its electricity from renewable energy resources, the state has the potential to contribute significantly to the US's renewable energy economy. The state has considerable potential for geothermal energy and its wind resources have been estimated at 1,100 gigawatt hours of electricity per year. Louisiana's well-developed forestry and agricultural industries also have substantial promise as biomass energy resources. Though, as of yet, the state has not taken measures to develop and capitalize on these potential energy assets.
New Orleans is unique in that its electricity utility is regulated at the city instead of the state level. And this is a difference makes a difference, given that the city can plan and implement an RPS of its own, in lieu of a statewide standard. This process has recently been initiated. Energy Future New Orleans Coalition drafted a Resilient and Renewable Portfolio Standard (R-RPS) and submitted it for approval by the City Council on June 15, 2019. As of 2014, 57% of the city’s electricity was generated from Entergy’s nuclear power plants, 18% from natural gas plants, 4% from coal-fired plants, and the city sourced remaining 21% from the Midcontinent Independent System Operator from an assortment of resources. The latest draft of the proposed R-RPS includes a goal of achieving 100% carbon neutrality by 2040.