FUELING ENERGY INDEPENDENCE: Good News and Challenges for Montana.

• Author: Whitsitt, Bill
• Position: TRENDING

As our nation continues to move toward energy independence, with strong energy-enabled manufacturing, lower energy intensity, progress on greenhouse gas emissions and reduced consumer costs, Montana also has good energy news--but it is tempered by a bit of reality.

The Treasure State has oil, coal, hydro and wind resources that rank high among states. Oil and coal development and production contributed nearly $200 million to the budgets of state, county and local governments in fiscal year 2018 (Montana Department of Revenue). We have relatively low electricity prices, primarily because of our hydropower and coal-fired generation and their proximity. In fact, according to the U.S. Energy Information Administration (EIA) in August 2018, Montana's average residential electricity cost was 35th in the nation at 11.51 cents per kilowatt-hour--Hawaii ranked first at 32.40 cents/kWh and California fifth at 20.56 cents/kWh.

There has been movement toward more use of renewable sources among the state's diverse energy mix, and Montana's energy investment climate shows signs of improvement.

Montanans, however, are still among those using more energy per capita than consumers in most other states. We also spend more per person on our energy overall. In the EIA's latest full reporting year data for 2016, Montana ranked 15th in total energy consumption per capita and 14th in total energy expenditures per capita. Factors such as cold winters and long driving distances undoubtedly contribute to these trends. Other factors also provide reasons for caution when trying to gauge Montana's energy future.

Stunning technology advancements underpin a new, exciting phase of the shale energy revolution that is pushing the U.S. toward energy independence and oil and gas exports unimaginable only a few years ago.

The Bakken play in North Dakota and Montana has been part of the revolution. New exploration, development and production efficiency gains are surprising even to those accomplishing them. Increased precision in drilling and hydraulic fracturing, with use of high-tech downhole sensors, fiber optic communication, continuous remote monitoring, and real-time process adjustments, are improving flow rates and lowering costs dramatically nationwide.

Even older oil producing areas of Montana are benefiting from technology application. Most striking for the future will be the injection of carbon dioxide into oil-bearing formations to sweep otherwise unrecoverable crude...