Ronald Jibson, CEO and Chairman, Questar Corporation, Salt Lake City, UT
Talks about the emerging natural gas market in the energy sector. He also discusses how filling stations are being constructed in the western half of the US as well as companies adding LNG/CNG vehicles.
Ronald W. Jibson is chairman, president and CEO of Questar Corporation. Prior to his current assignment, Jibson was president and CEO of Questar Gas Company and was responsible for distribution of natural gas services to about 900,000 customers in Utah, southern Idaho and southwestern Wyoming.
Ron has held the positions of executive vice president, vice president of operations, general manager of operations, operations manager and director of engineering. He has been with Questar Corporation for the past 32 years where he started as a design engineer.
Support American Entrepreneurs! Click on the image and use the promo code OTIS!
Below is the raw, unedited transcript from our artificial intelligence translator.
Ron Jibson
Ron Jibson Chairman, President Ceo Questar Corporation,
Jason Spiess
we've been covering the bacon now for a couple of years. And uh 2012 we called 2013 the year pad drilling last year in about october we called 2014 or current year, the year of natural gas. And it certainly has been in the bacon with one oak and Hess and uh north Dakota, L N. G with some of the refineries coming on uh, in your world, what do you make of that comment? 2014 is the year of natural gas.
Ron Jibson
Why? I think it's very applicable, I think, you know, It started prior to 14, but obviously the shale plays have been a paradigm shift in our industry. Uh, we always knew there was gas in the shale, but we never could economically get that. Get that gas out now with the technologies of horizontal drilling and the ability to, To continue to use cracking, cracking isn't do, we've been doing it for 25 years, but with the technologies we're able to not only get the gas out of the shell,
but get a very economically, some of the lowest cost plays. And so as a result of that, you now have an abundance of natural gas that we've never had before. And for many, many years dating back to the 70s with President Carter when he said, you know, we're gonna be out of gas in the next 8 to 10 years. Uh, he was, he was right, we had an issue at that time, but as always the, you know, ingenuity and smart people found ways to change that and and found ways to develop the natural resources and
do it very effectively and prudently. And so it is a year of of natural gas in the sense that we have a very strong abundance of natural gas. We can now look at natural gas beyond just space heating and water heating. We can look at it for enhanced power generation, continued building more and more plants on a natural gas, It's a backup to all renewable energy.
And at the same time we can use it for natural gas for transportation and do all of this. And we can even look at exporting natural gas, which is six years ago we were considered an importing country now. Uh now we're looked at as an exporter of natural gas. So I think you've got a situation where natural gas is certainly going to be an abundant not a bridge fuel, it's going to be abundant foundation fuel.
And it's very important to prudently and cautiously. We need to be careful as we uh partner with environmental concerns, but we can do that and we can develop this resource and use it for much more. Uh lessen our dependence on foreign oil and be able to take care of our own in the in the country as we need to do, I think. Uh so so it is a year of that.
I think, you know, there's a lot of talk about E. P. A rules and uh cold being replaced with natural gas I think we need to be very careful there. But we need to look at all forms of energy. We need to be using oil. We need to be using coal. We need to be using natural gas. We need to develop renewable energy. We need to continue to look at hydro, we need to continue to look at the opportunities for nuclear I think to meet the demands that we have in the future.
We're going to need all forms of energy. And it's and it's not you know it's probably not a great situation to have just one foundation fuel. So as people talk about natural gas being that foundation fuel we believe it is. We think we have the abundance for it but we also have to be cognizant that we need a large portfolio of many supplies of energy and that includes the development better technologies in all the areas
Jason Spiess
you mentioned transportation um whether it be CNG or LNG is that the type of transportation that we're talking about with natural gas, the conversion and some of the filling stations. Um you guys are involved with that. Talk to me a little bit about that transportation when it comes to natural gas that seems to be the wave of the
Ron Jibson
future. You know it really is. And we've had You know we're behind a lot of countries in this regard but uh we we got our kind of put one ft into it back in the 90s and, and then with the advent of more computerized engines and different engines and different kits for replacement for conversions have made it difficult to continue that market. Plus, I'm not sure the American public was ready for smaller vehicles and so forth.
But I think what we've seen again, because of the abundance is you now have what I would call the foundation market, which is your midsize vehicles. These would be your trash hauling vehicles, your busses, commuter shuttles and so forth. Where the economics are just A flat out no brainer. They're, they're seeing tremendous savings and again, abundance of natural gas makes it possible.
So very likely see 70% of the trash hauling vehicles within the next two years will be running on natural gas. I've heard figures of about 49% today. So, you know, the medium size, mid sized vehicles, transit busses and so forth, are definitely the foundation of this, this ship. The large vehicles, the big semi trucks are now what I would call the emerging market there.
Uh, we're seeing tremendous results from companies like swift trucking and central freight lines. Major companies like Frito Lay and Dark transportation, who have made major commitments to convert large number of vehicles who are buying the engines currently available in a 12 liter engine and we're seeing the trucking industry really take hold of this and it's saving them money.
It's uh, you know, all of the little issues are being resolved. Were there originally, uh, where to fuel again, we're out building those kind of facilities and the right locations, uh, how to fill. Uh, we're seeing the filling times of natural gas, CNG, uh, and L. N. G. Or filling as quickly as the diesel was spilled into the trucks. Drivers love them.
And uh, and companies are moving that direction. So I think it truly in the United States, we're seeing finally the needle move to a point where I think we're going to be very competitive in the rest of the world. You know, we'll see this market continue to grow and develop a passenger vehicles are probably the market that's being pulled along right now.
I think we're going to need to see home refueling at a very economical rate uh, and technology, uh, their, their devices currently available, but we need to get the price down on home refueling units. When that happens, I think you'll see the passenger market also take off. So, uh, you know, it's, it's exciting. I think it's one of the things that we get asked probably the most questions about and the results that we're seeing really show that it's, it's gonna happen now.
And I, uh, we're very excited to be part of that. We're building these major facilities, literally from the West Coast to the East Coast and in strategic locations. A lot of cities that many people haven't heard about, but there are major hubs for major trucking companies and, and we're going to see that market continue now when you
Jason Spiess
said at home, is that exactly how it sounds where I can pull into my garage and there's a filling station in my garage or maybe outside cooked into the propane tank or the propane
Ron Jibson
line. It definitely is uh, these, these units are attached directly to the home. Natural gas system, does not take any different pipelines, It doesn't take a different service line in the home. It just needs to be tapped onto their slow fill. So the concept is with a lot of the new vehicles that are being introduced by Detroit. We're starting to see passenger vehicles now that are dual fuel, recognizing that the majority of miles people put on their vehicles are commuter miles
each day. And so the philosophy is that you have a vehicle that say has 100 and 50 mile range on natural gas. People can drive to work every day. They come home, they plug in in their garage by the next morning, they've got a full tank again, ready to go. If they decide to drive somewhere outside of the range of a natural gas, the filling station on the weekend.
They can run on their gasoline in the vehicle. So it's a great philosophy. It can be done right on their home unit. Uh, their natural gas utility companies and install these. they can maintain them for a very small cost per month and the customers for very low cost have that convenience, have been able to literally fill at home each day,
Jason Spiess
put a plug out for blaze energy out of bismarck North Dakota. They've got some uh, natural gas trucks out in the bacon and they fill up at their, at their shop at the end of the night just to kind of validate some of your points. A couple more questions. If you don't mind, the next one you can bypass because it does become
controversial depending on who you're talking to, Just comments on importing exporting. And I know it depends on if you're one oak or if your dowel, how the answer is gonna come. So
Ron Jibson
that's a, that's a great point. And uh, I chaired the American Gas Association last year and, and spoke throughout the country in the world. And I got asked that question literally by every audience and it's uh, it's one that we, uh, we think, uh, we support, I think exporting of natural gas is an opportunity for us in the United States, we have the abundance, we have the supply.
And if you really look at it just about everyone and I can't think of too many exceptions to this estimate that the, you know, the total market for exporting lng will probably be 10% or less of the total demand in the United States, currently in the 65 to 70 BcF per day ranges. Our current demand that could go up to 80 say by 2020 or so. The estimates I've heard are anywhere between five and maybe eight BcF per day of export that will be controlled not only by permitting, but it's
controlled by economics more than anything. And again, if we allow free market to work, if we allow supply and demand to work, uh, there are a lot of other countries that have a lot of natural gas that are closer to some of these markets. The world market will keep the exporting from the United States, I think in that range. And so if you see that that percentage, it's very unlikely that that will have major impact on price, uh, may have a very moderate impact, but it would be moderate,
we have the supplies, it's jobs, it's opportunities, it's, you know, keeping producers producing natural gas, it's uh, you know, being able to move that gas elsewhere at the same time, there's plenty of production, plenty of natural gas for the domestic market. So, you know, we support it. I think it needs to be prudently watched. I don't know that it needs a lot of government control, but I think what it needs is really to just be allowed to work in a free market enterprise and I
think it'll be controlled and uh, I certainly acknowledge the concerns of the DoW's and others who chemical companies, steel companies who have come back to the United States because of the low price of natural gas. Obviously you should be concerned about anything that would drive natural gas prices higher. But I think what will mitigate that is again, the volumes will be small and the, these plants are extremely expensive even though there's, you know, 20 something that are
on the books right now to be permitted, they're not all going to get permitted. First of all, they're not all going to get built. So there will be a limited number of plants that will be a limited amount of volume of natural gas. And I think it's something that can be balanced very well.
Jason Spiess
Last year at an investors conference, I interviewed ken de que bellas, he's the ceo of black urge oil and gas. He was a former executive for Exxon mobil and he made a comment that the petrochemical industry is forecasted to invest about $30 billion into infrastructure. Uh, I spoke with a number of representatives down in Louisiana and they made a comment.
It's like chemical road down there, some of the advances happening. Um, also some of the things happen in Qatar for example, um, where do you see the future of natural gas going with these major investments. Do you see 10 years from now a global price on natural gas?
Ron Jibson
Well, I think, you know, the world is becoming smaller in that sense. I think technology has made that possible. And I think there's more and more interaction and capability for interface between other countries and what we're seeing. And so I think in a sense, it will be more of a global type environment world than what we see today. Um and and so I think that is very likely, but uh, you know, it's it's an amazing thing to watch what's taking place with technologies and innovation.
And and we're doing so much more with less, we're able to uh produce natural gas on a much smaller footprint. We're working in conjunction with environmental companies on methane emissions and on on the kinds of issues that we need to be aware of. And we're seeing better technologies that are making possible. We're working with industry, you know, we're trying to meet the needs of what those petrochemical companies need and others.
And so I think, yeah, I think it's, you know, the globe is getting much more connected and uh there's still a lot of water in between all of us. But But we're seeing that change. And I think 10 years from now it'll be much more of an interconnected world than what we see today.
Jason Spiess
Lee Tillman from Marathon Oil answered the question that it's possible, but it's very expensive to ship that molecule from the bacon to Southeast Asia.
Ron Jibson
That's exactly right. You know, and uh, and we're seeing it in so many energy industries, you look at natural gas being exported. Uh we're also looking at obviously the oil opportunities, whoever thought you know that you could do that from the United States. And uh and we talked yesterday about coal and uh yeah it's true that, you know, with New E. P. A. Rules and so forth in the United States, it's going to be more difficult to see new coal fired plants built.
But there's export opportunities for that coal and they're taking advantage of that. And I think the coal industry and the executives there of major companies will find ways to be successful again when we allow the market to work. People are very innovative and they and they find how to survive. And that's one thing we've been able to do over many years and I think the future looks very bright.
Support the industry! Only $5/month ensures daily interviews, news and information is available for the world. The Crude Life produces original content that focuses on industry, the people, energy innovations, community building and it’s proactive culture. Our custom content is non-polarizing, trusted and often news making.
Support American Entrepreneurs! Click on the image and use the promo code OTIS!
Submit your Article Ideas to The Crude Life! Email studio@thecrudelife.com
About The Crude Life
Award winning interviewer and broadcast journalist Jason Spiess and Content Correspondents engage with the industry’s best thinkers, writers, politicians, business leaders, scientists, entertainers, community leaders, cafe owners and other newsmakers in one-on-one interviews and round table discussions.
The Crude Life has been broadcasting on radio stations since 2012 and posts all updates and interviews on The Crude Life Social Media Network.
Everyday your story is being told by someone. Who is telling your story? Who are you telling your story to?
#thecrudelife promotes a culture of inclusion and respect through interviews, content creation, live events and partnerships that educate, enrich, and empower people to create a positive social environment for all, regardless of age, race, religion, sexual orientation, or physical or intellectual ability.
Sponsors, Music and Other Show Notes
Studio Sponsor: The Industrial Forest
The Industrial Forest is a network of environmentally minded and socially conscious businesses that are using industrial innovations to build a network of sustainable forests across the United States.
Studio Email and Inbox Sponsor: The Carbon Patch Kids
The Carbon Patch Kids are a Content Story Series targeted for Children of All Ages! In the world of the Carbon Patch Kids , all life matters and has a purpose. Even the bugs, slugs, weeds and voles.
The Carbon Patch Kids love adventures and playing together. This interaction often finds them encountering emotional experiences that can leave them confused, scared or even too excited to think clearly!
Often times, with the help of their companions, the Carbon Patch Kids can reach a solution to their struggle. Sometimes the Carbon Patch Kids have to reach down deep inside and believe in their own special gift in order to grow.
The caretakers of Carbon Patch Kids do their best to plant seeds in each of the Carbon Patch Kids so they can approach life’s problems with a non-aggressive, peaceful and neighborly solution.
Carbon Patch Kids live, work and play in The Industrial Forest.
Click here for The CarbonPatchKids’ website
Featured Music: Alma Cook
Click here for Alma Cook’s music website
Click here for Alma Cook’s day job – Cook Compliance Solutions
For guest, band or show topic requests, email studio@thecrudelife.com
Spread the word. Support the industry. Share the energy.
The Crude Life Podcast: Ron Jibson, Questar Corporation