While working from Fox’s Miami office this week, I thought I would give you an energy update from the Sunshine State.
As I previously mentioned in a post I wrote while I was working from Fox’s Los Angeles office, which can be found here, it is easy to be isolated in the Rocky Mountain region and to keep our focus on the energy sector in our neighboring states. But, it is important to remember that many other states impact the energy industry of the country as a whole, and each state has very different issues that come into play.
While Florida is known for its citrus, warm weather and tourism industry, lets take a snapshot of the energy sector in the Sunshine State:
- Energy Consumption is a Big Ticket Item in this State.
According to the U.S. Energy Information Administration (“EIA”) Florida State Profile and Energy Estimate, which can be found here, Florida “consumes substantially more energy than it produces.” Therefore, consumption is a uniquely important issue for Florida. According to the EIA, “the transportation sector leads state energy demand” and due to Florida’s large population base, it is “one of the five largest energy-consuming states, but its per capita energy consumption ranks among the five lowest states.” Consumption is a bigger concern for Florida than it is for other, lesser populated states.
- Pipeline Infrastructure is a Crucial Piece.
According to the EIA, “Florida receives nearly all of its natural gas from the Gulf Coast region via two major interstate pipelines: the Florida Gas Transmission pipeline, which runs from Texas through the Florida panhandle to Miami, and the Gulfstream pipeline, an underwater link from Mississippi and Alabama to central Florida.”
Bottom line – natural gas keeps the air conditioners on in this state and the pipeline infrastructure is a critical piece of the pie for Florida.
- Historic Crude Oil Production Peaked in the Mid-1970s.
The Florida Department of Environmental Protection provides a spreadsheet of Florida’s Crude Oil Production since 1970 Annual Production History on its website, which can be found here. It is interesting to take a look back on a state’s historic production to get an idea of where it has been – and the spreadsheet reflects a statewide peak in oil production in the mid-1970s with production dropping in the late 1970s and remaining on the low side through 2010 (which is the last date reflected on the spreadsheet). This is obviously very different than crude oil production in the Rocky Mountain states over recent years.
- Renewables are Not Currently that Big in the Sunshine State.
Most of the Sunshine State’s renewable electricity comes from biomass, according to the EIA, but solar does also reportedly play a role. According to the EIA’s Quick Facts, which can be found here, “[r]enewable energy accounted for 2.3% of Florida’s total net electricity generation in 2015.”
It is clear that Florida’s energy-related issues vary from considerations that are crucial to Colorado and other Rocky Mountain states.