Overview

Resources and Consumption

Oregon has few conventional energy resources but is rich in renewable energy potential. The Columbia River in the north and several smaller waterways flowing from the Cascade Mountains give Oregon some of the highest hydroelectric power potential in the United States. Much of the State has considerable wind power potential. The geologically active basin and range country in southeastern Oregon, as well as the Cascades in western Oregon, are promising sites for geothermal energy development. Oregon’s total energy consumption is low, although the State is a leader in the energy-intensive forest products industry. The transportation sector is the leading energy-consuming sector in Oregon, followed closely by the industrial and residential sectors.

Petroleum

Oregon’s only refinery, located in the Portland area, primarily produces asphalt and vacuum gas oil. The State receives petroleum-based transportation and heating fuels from Washington and northern California. Tanker trucks from California supply southern Oregon, while ships and barges deliver additional product from San Francisco to the Portland area. The use of oxygenated motor gasoline is required in the Klamath County and Medford areas during the winter months.

Natural Gas

Oregon receives its natural gas supply by pipeline: the Northwest Pipeline Corp. system supplies the Portland area and western markets, while the Gas Transmission Northwest system line serves the east. Although Oregon has two market hubs along the Gas Transmission Northwest line, they serve primarily California markets. In Oregon, natural gas is principally used for electricity generation, with the industrial and residential sectors, respectively, as the next largest consumers. Over one-third of Oregon households use natural gas as their primary energy source for home heating. Liquefied natural gas (LNG) import facilities have been proposed in Oregon to help meet demand for the fuel.

Coal, Electricity, and Renewables

Accounting for more than one-half of State electricity generation, hydroelectric power dominates the electricity market in Oregon. Natural gas-fired plants supply around one-third of the market, with coal-fired generation supplying most of the rest.

Oregon is one of the leading hydroelectric power producers in the Nation. Oregon’s four largest electricity generation facilities, all located on the Columbia River, are hydroelectric generation plants. Smaller hydroelectric plants generate power along several rivers flowing from the Cascade Mountains. Natural gas-fired power plants are located along major gas transmission lines. The Boardman plant in the north central part of the State supplies virtually all of Oregon’s coal-fired generation. Oregon has several small operating wind power facilities, generates some electricity from wood and wood waste, and produces smaller amounts of electricity from landfill gas. Major transmission lines connect Oregon’s electricity grid to California and Washington State, allowing for large interstate energy transfers. One of these transmission systems is the Western USA interconnection, which runs from northern Oregon to southern California. The system, also known as the Pacific Intertie, is the largest single electricity transmission program in the United States. Although the Pacific Intertie was originally designed to transmit electricity south during California’s peak summer demand season, flow is sometimes reversed overnight and has occasionally been reversed during periods of reduced hydroelectric generation in the Northwest. Nearly one-half of Oregon households use electricity as their main source of energy for home heating.