https://www.shaledirectories.com/blog/pioneers-svp-of-investor-relations-frank-e-hopkins-to-retire/
Thursday, May 31, 2018
Pioneer’s SVP Of Investor Relations Frank E. Hopkins To Retire
Pioneer Natural Resources (NYSE: PXD) Frank E. Hopkins will retire as senior vice president of investor relations, the company said on May 31.
Wednesday, May 30, 2018
Exxon Mobil Shareholders Reject Proposal To Split CEO, Chair Roles
Exxon Mobil Corp. (NYSE: XOM) shareholders rejected a proposal on May 30 that would have split the roles of chairman and CEO, securing CEO Darren Woods's role as he looks to improve results at the world's largest publicly traded oil producer. Woods, who became chairman and CEO in January 2017, has struggled to recover from failed bets taken by his predecessor Rex Tillerson, the former U.S. secretary of state, that resulted in billions of dollars in write-downs and a stock price that has lagged peers. Exxon Mobil under Woods has moved aggressively to launch major expansion programs to find and produce new reserves of oil and natural gas, as well as expand the company's refining and chemical footprint.
Nutmeg State’s Nutty Attempt to Stop Pennsylvania Power Plant Crushed
Editor & Publisher, Marcellus Drilling News (MDN)
Connecticut, the “Nutmeg State,” had a thoroughly nutty scheme to stop a Pennsylvania power plant from converting from coal to gas but EPA has crushed it.
Brunner Island Power Plant is located in York County, Pennsylvania, straddling Lancaster County. It is a huge, 1,490 megawatt coal-fired electric generating plant, and has been the target of environmentalists for years. In February 2017, MDN told you that the new owner of the plant, Talen Energy, invested $100 million to retrofit the plant so it can, at least part of the time, burn Marcellus Shale gas. Talen said it “plans to burn little or no coal until 2019 as part of a ‘site evaluation.’” Meaning almost all (perhaps all) of the fuel powering the plant at this point is Marcellus Shale gas.
Brunner Island Power Station
This Marcellus Shale gas use is why we’re interested in this Pennsylvania power plant and what happens to it. However, it appears they still burn at least some coal from time to time. In February, Talen signed an agreement to settle a lawsuit brought by the odious Sierra Club. The terms of the settlement say Talen will burn only Marcellus gas at Burnner Island during “peak ozone season”–from May 1 through Sept. 30–starting in 2023.
Talen will phase out coal completely by 2028. But, all of that isn’t good enough for the state of Connecticut, which asked the federal EPA to shut down Brunner Island, permanently, claiming “computer models” show the plant is causing smog in CT. The EPA told CT to stuff it (emphasis added):
The U.S. Environmental Protection Agency has turned down Connecticut’s petition to force the Brunner Island power plant to cut down on smog pollutants the state claims heavily contribute to its unhealthy air.
Connecticut claimed that computer modeling of emissions showed that nitrogen oxide pollution from the much-criticized York County plant drifts into the state and is a major contributor to smog there.
Connecticut claimed it incurs $135 million a year in health-care charges from asthma attacks linked to smog.
In 2014, New Jersey had successfully used the Clean Air Act’s Good Neighbor provision to get a coal plant in Northampton County closed by EPA.
But EPA Secretary Scott Pruitt, under a federal court order to act on the Connecticut case, refused to intervene. He gave a number of reasons, including lack of proof that pollution could be traced to a single source that far away, according to a story in InsideClimate News.
Pruitt also noted that Brunner Island had recently invested $100 million so that natural gas could be phased in to replace more-polluting coal being used at the plant.
In a February settlement with The Sierra Club environmental group, Brunner Island owner Talen Energy agreed to stop using coal by the end of 2028.
In the meantime, the plant will stop using coal from May through September — the peak smog season — by 2023. The only exception would be during power shortage emergencies.
Talen Energy did not respond to a request for comment.
Editor’s Note: One suspects Connecticut’s nutty leaders are motivated more by ideological views and political correctness than anything else. After all, even though they’ve reduced electricity consumption significantly over the last several years (starting with the 2008 recession) the Energy Information Administration indicates they still used 28.9 million megawatt hours in 2016, about 5% below the average for the last two decades and their electric rates were 51% higher than Pennsylvania’s in March. So, it’s not like they don’t need additional sources of supply to be competitive if nothing else. Moreover, if asthma were their concern, the New York record suggests conversion from dirty fuels to gas is the solution, not the problem.
What’s also interesting is that Connecticut’s own last coal-fired power plant, the Bridgeport Harbor Power Station, is scheduled to be converted to natural gas. It’s apparently smart to convert Connecticut from coal to gas, but not Pennsylvania because it might impact Connecticut? And, how exactly would that impact be anything but hugely positive? If there is any need for evidence of the Nutmeg State’s nuttiness, it is this. But, the hypocrisy doesn’t end there because this is Connecticut natural gas use over the last two decades:
Yes, Connecticut consumed 247,175 MMcf of natural gas in 2016, up from 144,708 MMcf in 1997, for a 41% increase. They’ll need still more when Bridgeport Harbor converts to gas, of course, but they don’t want Pennsylvanians producing either the gas or the electricity. Such is the nuttiness of the Nutmeg State, where ideology and political correctness trump everything and electric prices continue to skyrocket as far as the eye can see into the heavens.
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The post Nutmeg State’s Nutty Attempt to Stop Pennsylvania Power Plant Crushed appeared first on Natural Gas Now.
Tuesday, May 29, 2018
Leading Colorado Green Group Wont Back Boulder Climate Lawsuit
Just how unpopular is Boulder’s climate lawsuit?
Less than a week after leading Democrats running for governor in Colorado refused to endorse the climate lawsuit, the Denver Post reports that Colorado’s largest green group also refuses to endorse the suit.
Continue reading at EID Climate.
Shale Gas News – May 26, 2018
External Affairs Coordinator, Cabot Oil & Gas
The Shale Gas News, heard every Saturday at 10 AM on 94.3 FM, 1510 AM and Sundays on YesFM, talked about steel tariffs, TransCanada Pipe, Texas LNG expansion and much more last week.
The Shale Gas News has grown again; welcome Gem 104 as our FOURTH station! Gem 104 helps to solidify the Shale Gas News coverage in an important Marcellus region, PA’s northern tier. The Shale Gas News is now broadcasting in Bradford, Lackawanna, Lancaster, Lebanon, Luzerne, Lycoming, Pike, Sullivan, Susquehanna, Tioga and Wayne Counties, as well as in greater central PA. The Shale Gas News is aired on Saturday or Sunday depending on the station.
Every Saturday Rusty Fender and I host a morning radio show to discuss all things natural gas. This week, as guests, we had Dave Williams of PA Farm Country radio and Rauf Mammadov a resident scholar on energy policy at The Middle East Institute.
The Shale Gas News, typically, is broadcast live. On the May 26th show (click above), we covered the following new territory (see news excerpts below):
- API calls for oil, gas industry exemptions from steel tariffs. The American Petroleum Institute (API) led a coalition of eight industry groups in calling on the U.S. Department of Commerce to exempt natural gas and oil companies from steel tariffs and quotas handed down by the Trump administration under Section 232 of the Trade Expansion Act. “U.S. natural gas and oil companies should be granted relief from the tariffs and quotas on imported steel that will harm U.S. businesses, our economy, and American consumers,” Kyle Isakower, the vice president or regulatory and economic policy at API, said.
- Texas Project Expansions Mark LNG’s ‘Second Wave’ – The developers of an under-construction liquefied natural gas terminal going up in Freeport, Texas, have applied to expand it to export more LNG, while another project expansion announced plans yesterday to move forward. The Freeport LNG project is currently authorized to build three LNG “trains,” each of which could liquefy up to 500 million metric tons per year (mtpa) of natural gas and sell them into world markets.
- Donation from Exxon and Employees Underscores Vital Role of O&G in Funding Ohio Education. ExxonMobil, XTO Energy and its current and former employees contributed more than $852,000 to 33 Ohio colleges and universities in 2017, the company announced this week. Part of the ExxonMobil Foundations 2017 Educational Matching Gift Program, the company generously matched almost $217,000 from current and former employees on a three to one basis.
- Rex Energy Owes Nearly $1B – Who They Owe & How Much. Last week Rex Energy filed for Chapter 11 bankruptcy protection. Right after filing, the company announced it has put up essentially all of its Marcellus/Utica assets (leases, wells, etc.), for sale, in order to pay off what it owes. Which begs the question: What does the company owe? As it turns out, it’s close to $1 billion. The company, in a filing made on the first day of bankruptcy proceedings, included a list of who it owes, for what purpose, and how much–totaling $984.5 million.
- TransCanada Pipe Construction Crew Helps Locate Missing WV Boy. It’s every parent’s worst nightmare. Last Monday afternoon a three year-old boy wandered into the woods near his home in Jackson County, WV and got lost. The parents could not find him. WV State Police and several local fire departments aided in a search effort, canvasing the woods. TransCanada is building the Mountaineer XPress Pipeline project several miles from where the toddler went missing. Upon hearing of the missing boy, the people in charge of the project flew into action, delivering supplies and port-a-potties to the searchers. They also provided maps of the area made by TransCanada–maps which ended up being instrumental in finding the boy.
- Fire Sale: Rex Energy Selling Everything to Pay Back Lenders. Some even sadder news to share about Rex Energy. On Friday we told you that Rex had filed for Chapter 11 “voluntary” bankruptcy protection. After our story, Rex released a press release to announce not only are they seeking Chapter 11 protection, they are, as of now, putting all of their Marcellus/Utica assets (wells, leases, etc.) up for sale–in both Pennsylvania and Ohio. The stated reason is to “maximize their long-term value and prospects.”
- Rice Brothers Act II – $200M Marcellus/Utica Investment Firm. Good news! The four Rice brothers, all of whom formerly worked in the family business, Rice Energy, have launched a new venture. You will recall last November EQT consummated a deal to buy and merge in Rice Energy, paying $8.2 billion to do so. Not all of that money went into the pockets of Dan, Toby, Derek and Ryan Rice–but you can be sure a good chunk of it did. We’ve been wondering where the Rice boys would land since they have a non-compete clause with EQT. Would they leave the Pittsburgh region and restart somewhere else? Fortunately, no!
The Shale Gas News sponsored by Linde Corporation
The post Shale Gas News – May 26, 2018 appeared first on Natural Gas Now.
https://www.shaledirectories.com/blog/shale-gas-news-may-26-2018/
Monday, May 28, 2018
Stored working gas volume keeps rising
The volume of working natural gas added to storage in the Lower 48 U.S. states during the week ended May 18, jumped 5.9% from one week earlier, with all five regions the Lower 48 are divided into, reporting an add, the Energy Information Administration reports.
The latest EIA data show stored working gas rose by 91 billion cubic feet (Bcf), with total working gas in storage rising to 1.63 trillion cubic feet (Tcf), from 1.54 Tcf one week earlier. (All numbers are rounded.)
The latest total is down a whopping 804 Bcf, or 33.0%, from the year-ago total of 2.43 Tcf, and was down 499 Bcf, or 23.4%, from the five-year average of 2.13 Tcf, Kallanish Energy calculates.
The largest week-to-week add to working gas in storage was in the South Central region, up 28 Bcf, or 4.0%, to 722 Bcf, from 694 Bcf from the week ended May 11.
The latest South Central results are down 351 Bcf, or 32.7%, from the year-ago total of 1.07 Tcf, and was down 163 Bcf, or 18.4%, from the five-year average of 885 Bcf, EIA found.
The East region added 24 Bcf, or 8.7%, to 299 Bcf, from 275 Bcf one week earlier. The latest East region total was down 88 Bcf, or 22.7%, from the year-ago total of 387 Bcf, and was down 101 Bcf, or 25.3%, from the five-year average of 400 Bcf.
https://www.shaledirectories.com/blog/stored-working-gas-volume-keeps-rising/
The Meaning of the Shale Revolution this Memorial Day
Shepstone Management Company, Inc.
The shale revolution is a miracle. It’s cleaned the air, reduced carbon emissions, lowered energy costs, built rural economies and made for energy security.
Today, as we honor those who gave their lives for America, it’s appropriate to focus on the contributions of the shale revolution to our American security. We have, over the course of the revolution, gone from a bleak future of continued dependence for energy on “death to America” spirited suppliers to a situation of world energy dominance. It has been a remarkable transformation of prospects that has made America more energy secure than ever. A recent “Today In Energy” column from the Energy Information Administration tells the story from a factual perspective.
Here are the highlights (emphasis added):
The United States remained the world’s top producer of petroleum and natural gas hydrocarbons in 2017, reaching a record high. The United States has been the world’s top producer of natural gas since 2009, when U.S. natural gas production surpassed that of Russia, and the world’s top producer of petroleum hydrocarbons since 2013, when U.S. production exceeded Saudi Arabia’s. Since 2008, U.S. petroleum and natural gas production has increased by nearly 60%…
U.S. petroleum production increased by 745,000 barrels per day (b/d) in 2017, driven by a 21% increase in oil prices to approximately $65 per barrel. In the United States, crude oil and lease condensate accounted for 60% of total petroleum hydrocarbon production in 2017, and natural gas plant liquids accounted for 24%. Saudi Arabia and Russia have much smaller volumes of natural gas plant liquids, as well as refinery gain and biofuels production, which combined account for most of the remaining share of U.S. petroleum production.
U.S. dry natural gas production grew slowly in early 2017 because of unfavorable economic conditions at that time. Production increased during the last nine months of the year, ultimately leading to a 5.7 billion cubic feet per day (Bcf/d) difference between the first quarter and fourth quarter of 2017. From 2016 to 2017, domestic dry natural gas production increased by 1%, and U.S. liquefied natural gas exports quadrupled…
In contrast, Russian and Saudi total liquids production fell in 2017 compared with 2016…
In EIA’s May Short-Term Energy Outlook (STEO), U.S. petroleum and other liquid fuels production is expected to increase, reaching 17.6 million b/d in 2018 and 19.1 million b/d in 2019, up from 15.6 million b/d in 2017.
Thank the shale revolution for all this. It’s made us less dependent on a part of the world that wanted to use the money earned from selling us energy to wipe us off the map. Indeed, it’s made Saudi Arabia re-evaluate everything in our favor, although that’s a subject for another day. That’s about as meaningful as it gets on Memorial Day. The message on the hat was correct:
The post The Meaning of the Shale Revolution this Memorial Day appeared first on Natural Gas Now.
https://www.shaledirectories.com/blog/the-meaning-of-the-shale-revolution-this-memorial-day/
Sunday, May 27, 2018
Pipeline Battles and Ramifications Are Serious Business
Weir and Partners, LLP
Pipelines battles in the U.S. and around the world are having serious ramifications. Pipelines opposition in the disguise of environmentalism is no help.
The on again, off again saga of Mariner East 2 is off-again. On Thursday, a Pennsylvania State Public Utility Commission judge again suspended construction of Mariner East 2 and 2X and the use of Mariner East 1 following a petition by State Senator Andy Dinniman. Despite the pipeline being 98% complete, PUC Judge Elizabeth Barnes wrote that the pipeline constitutes an “emergency situation which presents a clear and present danger to life or property.” She added “(t)he rupture of a hazardous liquid pipeline at the welds of an 8-inch pipe in a (high consequence area) such as West Whiteland (Township) and the ignition of such a potential vapor cloud could have catastrophic results.”
In the end, it is doubtful that Mariner East 2 and 2X will be stopped. However, the long term effects of this process are truly harmful to the industry and all concerned. Serious questions have been raised both about the pipeline route and the construction, and Sunoco Logistics, the owner of the pipeline, often has simply ignored the rules for construction. This has raised community suspicion about the project and the PUC process. It also has made a hero of Senator Dinniman, who is not a friend of the industry. Critics who seek to fight other pipeline projects point to Mariner East 2 of an example where the industry cannot be trusted, and they have lots of ammunition.
Despite all of these issues, pipeline buildout in 2018 in the Northeast will exceed all previous construction. The Energy Information Agency expects an additional 20Bcf/day to be added to capacity. Unfortunately, that buildout is spotty geographically. In the I-95 corridor, where it is needed the most, we likely will see the least. Winter 2018-9 could see the most extreme geographic variations yet in terms of natural gas price.
In contrast to Mariner East 2, Trans Mountain in Northwestern Canada presents the opposite situation. The pipeline owner, Kinder Morgan, continues to win in court and generally follow the rules, while the provinces squabble with each other and hurt themselves. The latest was the British Columbia Supreme Court throwing out a challenge by the City of Vancouver and the Squamish National indigenous tribe claiming that BC did not act reasonably earlier when it gave Kinder Morgan an environmental assessment certificate. The Court also ordered Vancouver – which is fighting so hard against the pipeline but depends on coal for much of its economic wellbeing – to pay Kinder Morgan’s legal fees.
Kinder Morgan’s self-imposed deadline of May 31 still looms, and the company now is facing major cost overruns. Both Alberta and the Canadian Federal Government have promised to assist in the financing of Trans Mountain, and Alberta needs the revenues from the pipeline to balance its budget, but neither has been able to make it happen.
Like Mariner East, the long term ramifications may be significant. In Mariner East 2 it’s the suspicion engendered by the pipeline company, in Trans Mountain it’s the lack of trust in the Canadian business climate. At this point I would guess that both pipelines get built, but each will result in long term residual yet needless damage.
Finally, construction continues on the Nord Stream 2 pipeline that will take gas from Russia to Germany through the Baltic while bypassing the traditional transit route through the Ukraine. The Trump Administration is going all out to try to block its construction, even threatening our European allies with potential economic ramification should the pipeline be finished.
Germany, which is almost entirely dependent on Russian gas (notice how quiet it’s been on Russia matters over the last few years), is furious with the American position. The United States is wary of increased Russian expansion of influence in Western Europe and sees this as a tool to isolate European nations such as Ukraine, the Czech Republic, Slovakia, Poland and the Baltic States.
All of these nations have faced energy price and supply manipulation in the past from Russia. Not coincidentally, the Germans, who are held up as environmental paragons, are now so dependent on Russian gas that they have raised no environmental objection to a pipeline being built in the Baltic Sea being used to transport Russian gas produced in the Arctic.
There are three lessons here. First, be wary of those who wrap themselves in the banner of environmentalism. They tend to forget about that when their economic security is threatened. Second, understand that the current German hostility to the Trump Administration is not just about ripping up the Iran Nuclear Deal or moving the American Embassy in Israel to Jerusalem. Nord Stream 2 is far more significant. Finally, notice that, contrary to claims that he is being soft on Russia, the Trump Administration is fighting far harder against Russian economic interests in Western Europe than did the Obama Administration.
I am neither a Trump hater nor supporter. I want all American Presidents to succeed. I do think though that Nord Stream 2 is more important than many of the stories we hear on the evening news. We would be much better informed as a citizenry if CNN and its ilk took time out from Stormy Daniels’s lawyer and talked about the ramifications of what really matters to people.
The post Pipeline Battles and Ramifications Are Serious Business appeared first on Natural Gas Now.
https://www.shaledirectories.com/blog/pipeline-battles-and-ramifications-are-serious-business/
Saturday, May 26, 2018
Natural Gas NOW Picks of the Week – May 26, 2018
Shepstone Management Company, Inc.
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Natural Gas NOW readers pass along a lot of stuff every week about natural gas, fractivist antics, emissions, renewables, and other news relating to energy. As usual, emphasis is added.
“Clean energy” isn’t clean by their standards, says the Pennsylvania Game Commission:
This month, the Pennsylvania Game Commission (PGC) voted unanimously to ban wind turbines on the 1.5 million acres it controls….
A 2017 comprehensive report by Saint Francis University identified nearly 180,000 acres of State Game Lands (SGLs) that could support utility-scale wind projects. The area represents 17 percent of the state’s entire developable wind acreage.
Since 2005, 19 Game Lands had been included in wind-development proposals — some multiple times. All were denied and found to have “a high probability of adversely impacting wildlife resources and the recreational uses associated with SGLs.” The PGC found the proposals “incompatible with its mandates under the Code to protect, propagate, manage and preserve the game and wildlife of the Commonwealth and promote recreational opportunities.”
Development of the Game Lands would have been a major contribution to meeting the state’s Alternative Energy Portfolio Standard, which requires that utilities generate at least 18 percent of their electricity from sources such as wind. So why did the Commission ban wind projects from state lands?
…The PGC’s mission includes “managing Pennsylvania’s wild birds” and protecting these species is a top priority for the agency. It is well documented that windmills kill migratory birds that utilize the high mountain ridges in their transit from south to north and back again every year. High on the list of the species is the endangered Indiana bat whose deaths may be compounded by changes in air pressure produced by swiftly moving blades. Dangers to the threatened Allegheny Wood Rat and Timber Rattler were additional reasons for previous permit denials.
Winter ice thrown from blades — not an uncommon event — poses danger to humans and wildlife alike, as do blades thrown in cases of more rare malfunctions. While windmills appear to move slowly, speeds can reach nearly 200 mph and throw objects long distances.
High voltage equipment and other infrastructure present significant risks to the public. With more than 40 various hunting seasons in the Keystone State, exclusionary boundaries around each turbine would severely limit the public’s access for one of the primary uses of the Game Lands.
Additional negative effects have been cited by the Commission in denying previous requests including 11 different negative impacts from just one proposal for Game Land no. 42. Aesthetic concerns emanate from the despoiling of otherwise grand vistas and appear to have contributed to the Commission’s decision…
…In stark contrast to their opposition to wind energy, the Commission appears to have embraced natural gas development on their properties. There are currently nearly 3,000 oil and gas wells on the game lands, including five properties which are host to active drilling rigs targeting the prolific Marcellus Shale. Approval of drilling proposals likely is related to the relatively small footprint of operations owing to horizontal drilling techniques along with benefits of improvement of the habitat for wildlife.
Hmm…perhaps that Alternative Energy Portfolio Standard, which requires that utilities generate at least 18% of their electricity from sources such as wind isn’t such a good idea after all?
FANG Does Spoiled Child Protest of Big Money Investments in Energy
I’ve written about FANG before in this post, their trendy Proletarian shirt business, their retro Stalinist look and their spoiled brat behavior intended to garnish attention. They were at it again recently with an infantile protest of MorganStanley. Here’s how they describe their efforts:
People are at the Morgan Stanley building in Purchase, NY disrupting the bank’s annual shareholder meeting in solidarity with the L’eau Est La Vie Camp that’s fighting the Bayou Bridge Pipeline in Louisiana.
Currently, both entrances to the building where the shareholder meeting is about to take place are being blockaded.
Morgan Stanley is the eighth largest shareholder of Energy Transfer Partners, the company responsible for the Bayou Bridge Pipeline, the Dakota Access Pipeline (DAPL), the Rover pipeline, and the Mariner East 2 Pipeline.
Click image to play video
Morgan Stanley is also the largest shareholder of ETP’s parent company, Energy Transfer Equity (ETE). In total Morgan Stanley controls over $1.2 billion in shares in ETP and ETE. Morgan Stanley has loaned millions to both companies.
In addition, Morgan Stanley is the lead financier of Invenergy, the company trying to build a massive fossil fuel power plant in Burrillville RI – and is also funding a group of proposed of export facilities proposed for Nova Scotia.
So, we have a spoiled kid in a suit leading a block-in protest in New York over a pipeline in Louisiana. Yeah, that’ll do it. Such is the pitiful nature of the fractivism. What a cruel joke these people are on themselves.
Phil the Panderer Leads New Jersey Back Into the Wilderness
Phil the Panderer Murphy has galloped off on his high horse to lead New Jersey backward as fast he can take the Garden State, all the while pretending to be ahead of the curve:
Gov. Phil Murphy yesterday signed bills to dramatically overhaul New Jersey’s energy policies while ensuring nuclear power will remain a significant part of its energy mix — albeit with a hefty new subsidy from consumers.
In a ceremony at a solar farm in Monmouth Junction, the governor’s action marked a step toward achieving his ambitious clean-energy agenda, by requiring at least half of the state’s electricity to come from renewable energy by 2030. The plan also mandates utilities ramp up programs to reduce energy use.
“Today is a big leap forward,’’ Murphy told legislators, cabinet officials, and representatives of key environmental groups who gathered at the solar farm, which is still under construction. The governor also signed an executive order, directing the development of a new Energy Master Plan to have the state achieve 100 percent clean energy by 2050.
Whether the state can deliver on that agenda and at what cost to ratepayers will likely generate as much debate and argument over the next few years as occurred during the bruising fight to get the bills through the Legislature in the past six months.
No issue was more controversial than the measure (S-2313) to direct up to $300 million a year in ratepayer subsidies to keep three nuclear power plants from closing in South Jersey. Public Service Enterprise Group threatened to shutter them, arguing they are no longer economically competitive.
Further down in the article we learn that even fractivist Stephanie Brand has an issue with this much pandering:
Murphy tried to quash concerns about the bill’s impact on utility customers, saying Stefanie Brand, director of the Division of Rate Counsel, would be part of a proceeding to determine if the plants should be handed a subsidy. The bill appears to exclude Brand, who is supposed to represent ratepayers in utility cases.
The governor also said there are safeguards in both bills to protect ratepayers. In the clean-energy legislation, a cap on costs is aimed at holding down what utility customers end up paying for a more aggressive solar program in the state.
Still, Brand acknowledged the ratepayer is going to face significant increases. “There’s no question that the two bills, plus other things we are doing, are going to have a tremendous impact on rates,’’ she said. “Affordability has to be a top priority as we move go forward and work at all these things.’’
Yeah, that about sums it up, not to mention the solar farm where the signing took place is a 100-acre facility that will only produce enough electricity for 3,000 homes (serving all of New Jersey would demand 107,000 acres at that rate) and still require subsidized nuclear or unsubsidized natural gas backup and even this wasn’t enough pandering for professional protesters such as Jeff Titell who doesn’t want other special interests such as nuclear feeding at the same public trough as his renewables.
The post Natural Gas NOW Picks of the Week – May 26, 2018 appeared first on Natural Gas Now.
https://www.shaledirectories.com/blog/natural-gas-now-picks-of-the-week-may-26-2018/
Latest State Regulator Analysis: Garfield County Air Quality Protective of Public Health
Colorado heath regulators are out with new findings, showing yet again, a “low risk of long-term harmful health effects due to VOC exposure” from nearby oil and natural gas development.
The findings from the Colorado Department of Public Health and Environment (CDPHE) are from the air quality assessment in Garfield County, Colo. As part of its continued collaboration between Garfield County health officials aimed at evaluating and addressing environmental and health concerns related to oil and gas development, CDPHE’s ongoing air quality sampling and monitoring near newly developed oil and gas operations in Battlement Mesa, Colo., has again shown emissions to be protective of public health.
The air quality assessment is just the latest government-sponsored report to show “low risk” of health effects from oil and natural gas operations. Importantly, these findings come at a time where anti-fracking activists are attempting to push health-related concerns on the Front Range, with far less data to back up their assertions.
Visit EIDHealth.org to read the full blog post.
Friday, May 25, 2018
You’re Hired! Ohio Campaigns to Raise Awareness of Shale ‘In Demand’ Jobs
It’s all hands on deck to spread the word that when it comes to jobs, Ohio is hiring — and it’s largely due to the fact that the gross state product is approaching $100 billion thanks largely to shale investments, according to JobsOhio.
The upward trajectory of shale-related employment comes as no surprise, considering the latest federal government data show oil and gas activities led to the strongest statewide economic gains in 2017. This reality has led to headlines in Ohio reporting that hundreds of jobs are currently available in the Appalachian region. In response and in preparation for the surge in available jobs, the Ohio Oil and Gas Energy Education Program (OOGEEP) recently unveiled a series of 28 modern career videos highlighting more than 75 in-demand jobs associated with shale development. The goal? To address the supply and demand issues created by the surge of “in-demand” jobs which require well trained and qualified candidates. Here’s a look at some of the jobs currently available in Ohio.
EID recently spoke with Rhonda Reda, Executive Director with OOGEEP about their video series and her take on ways her organization, and others, are collaborating to address workforce development.
EID: Can you give us a general overview of the Ohio Oil and Gas Energy Education Program?
Reda: OOGEEP was created 20 years ago to provide a variety of public outreach, educational and safety programs on behalf of the Ohio natural gas and crude oil industry. Our programs include teacher workshops, career events, science fairs, scholarships, industry safety trainings, scouting programs, firefighter trainings, economic impact studies, community events and speaking presentations just to name a few.
EID: Congratulations on 20 years, by the way. Can you tell us more about the “Oil and Gas Careers in Ohio Video Series” and what OOGEEP is working on now?
Reda: About six years ago, the industry charged OOGEEP with creating and developing a variety of workforce development initiatives. To start, OOGEEP created a unique Oil and Gas Career Guide that featured more than 75 different in-demand jobs, descriptions and educational requirements. From there, OOGEEP began working with educational and training institutions throughout Ohio to evaluate, update and promote their respective qualified programs specific to these industry careers. Today, OOGEEP is now working with more than 90 different colleges, universities, technical and apprenticeship programs that offer certificate, one-year, two-year and four-year degree opportunities. OOGEEP also created a Scholarship Foundation to help support students pursuing career and training opportunities in our industry. In 2007, OOGEEP awarded seven scholarships, and just a little over 10 years later, that scholarship program is now awarding in excess of 50 new scholarships a year. Over the last three years, OOGEEP, in partnership with API, supplemented our other career and scholarship programs and began filming a series of career video clusters that represent all 75 plus careers. We shot footage at more than 50 locations. This has been an enormous project, and we are so excited that these videos are now ready to be shared. In the fall, we will be hosting a large statewide event that will include students, teachers and guidance counselors, so that they can start utilizing all these industry funded career and workforce development tools. In the near future, we will also be adding school career kits, and personalized job assessments.
EID: Does OOGEEP collaborate with Ohio schools and other groups who try to help address unemployment in the state?
Reda: In addition to the 90 different colleges, universities and technical schools already mentioned, OOGEEP also has a positive relationship with the Ohio Department of Education, Board of Regents, Governor’s Office on Workforce Transformation, Jobs Ohio and the Ohio Department of Jobs and Family Services just to name a few. It is all about collaboration and teamwork! Everyone has the same goal . . . long term job security with excellent salaries and benefits. Throughout the year, OOGEEP also hosts a number of STEM Teacher Workshops which include a career component. To date, we have had teachers from all 88 counties in Ohio participate.
EID: Recently, an OhioMeansJobs Guernsey County Employment Specialist said, “We get calls each day from employers desperately needing their job orders filled, from truck drivers to machine operators. There are simply not enough well trained and qualified candidates to meet their demand.” Her sentiment seems to be consistent with the fact that unemployment figures are staying the same even though there are hundreds of jobs available, particularly along the Ohio River Valley. What is your take on this?
Reda: I agree. We hear the exact same concern expressed by our industry partners. We are hoping that through these workforce initiatives, we can help promote and secure more of these in demand jobs needed by everyone. However, too often there are also misperceptions made about the jobs in our industry, and many do not realize the wide variety of different career paths available. I think we also need to do a better job promoting those careers involving trades. Recently, we learned at a guidance counselor conference, that only 21 percent of high school seniors that start out seeking a four-year degree actually finish school and get their diploma. That leaves 79% of students wondering what is next! We have to help provide them with other options that can lead to amazing careers! Finally, we must also continue to address the drug problem —- this is a local, statewide and nationwide issue. The reality is that there are too many candidates that are simply unemployable. We all need to work on this issue.
EID: What tools have you found, in your experience over the past 20 years, which have made the most impact with students?
Reda: I think providing incentives (science fair and scholarship awards) has certainly helped engage many students. OOGEEP also does a lot of classroom presentations, and we provide a lot of job information, so it is very exciting to see a student suddenly intrigued about becoming a welder or a machinist too. College is not for everyone, so it is really nice to be able to showcase so many careers, and this is very unique to have an industry, like ours, that can provide such a variety.
Conclusion
In addition to the video series, there’s an incredible amount of ways that the public is able to learn more about “in demand” jobs — but a good place to start is OOGEEP. The fact of the matter is that shale development has both directly and indirectly led to the addition of over 100,000 jobs in Ohio. Perhaps it time to fire back up the job fairs, because it’s obvious that Ohio is open for business and hiring — thanks to the oil and gas industry!
Cuomo Delivers: New York Electricity Prices 44% Higher Than U.S.
Editor & Publisher, Marcellus Drilling News (MDN)
New York electricity prices are now 26% higher than Pennsylvania’s and 44% higher than the U.S. average according to the Energy Information Administration.
New York residents, on average, pay 44% more for electricity than other states, 26% more than neighboring Pennsylvania and 40% more than Ohio. In January of this year, New Yorkers (and New York utility companies) were briefly forced to pay a record high of $140.25 per thousand cubic feet (Mcf) for natural gas, as opposed to what everyone else was paying (an average of $3.08/Mcf)—which is 46 times as much!
New York electricity prices reach for the Moon!
Both stats are rooted in the same issue: New York pays way more for energy than it has to, because Andrew Cuomo is blocking natural gas pipelines into the state from Pennsylvania. So says a new report titled “Pipelines and their Benefits to New York” (full copy below).
The report, published by the Consumer Energy Alliance, examines the benefits of pipelines to New York, highlighting the need for affordable energy supplies to keep the daily lives of families and businesses across New York moving. Without those pipelines, we’re toast. You can’t build windmills and solar farms fast enough to meet the demand for electricity and, by extension, natural gas. Cuomo’s dysfunctional energy policies are blocking all New Yorkers, upstate and downstate, from living even moderately prosperous lives.
Consumer Energy Alliance (CEA) today released a report titled “Pipelines and their Benefits to New York” at a breakfast discussion on the Future of Natural Gas and Economic Development in New York, hosted by New Yorkers for Affordable Energy. Faced with a new everyday reality of energy insecurity for many in the U.S., CEA’s report examines the benefits of pipelines to New York – specifically highlighting the need for affordable energy supplies to keep the daily lives of families and businesses across New York moving.
CEA’s report examines the benefits of pipelines, and the availability of fuels like natural gas, outside of the traditional scope of jobs and economic growth. That’s because CEA believes the benefits of pipelines should also be examined for their cost reductions and the critical service the energy they transport provides to New York’s families, small businesses and households – especially people living on the margins of society or even paycheck-to-paycheck.
Highlights from the report include:
- Consumers and households in New York already pay 44 percent more for electricity than the national average – even though neighboring Pennsylvania has ample supplies of energy and pipeline infrastructure available to benefit New Yorkers.
- In January 2018, spot market prices in the New York City region jumped to a record high of $140.25 for natural gas, as compared to the average natural gas spot market price for New York in 2017 was $3.08. New Yorkers were subjected to prices that were $137 higher due to self-inflicted capacity constraints created by their own elected officials.
- In New York, natural gas alone provides nearly 46 percent of the state’s electricity needs. As the state continues to rely more and more on natural gas and building or expanding gas-fired power plants, that number is expected to rise to 56 percent of New York’s electric needs.
- 74 percent of energy generation for downstate residents is provided by fossil fuels – and natural gas is used by more than half of all New Yorkers to heat their homes.
- Natural gas is the foundational building block for the state’s manufacturing sector. New York had over 194,400 jobs that were tied to energy-intensive companies and made up nearly 55 percent of the state’s manufacturing sector.
- There is a significant economic impact to New York from the numerous denied, delayed and proposed pipeline projects in the state.
“This report highlights the often-overlooked benefits New York’s communities are receiving because of the U.S. energy revolution, enhanced infrastructure, and pipelines,” Mike Butler, CEA’s Mid-Atlantic Director, said. “However, New York families, businesses, and households will not be able to realize the full potential of these benefits until natural gas plays a larger role in the state to offset intermittency issues and the physical realities of the state’s electric grid.”
“We believe in a balanced, constructive, all-of-the-above energy policy that utilizes all of our resources – conventional and renewable. CEA continues to urge policymakers in New York to embrace the benefits and growth potential that energy delivery brings to communities across the state. Everyone from working mothers trying to pay their bills, to small retailers who spend a large percentage of their revenue on electricity and meet their bottom lines – we all have a stake in making sure we meet our energy needs and it should be a top priority for our policymakers to ensure we do.”
Click image to read full report
Editor’s Note: We thank the Consumer Energy Alliance for using two of our NaturalGasNOW charts in their report. The Consumer Energy Alliance is a great organization. It’s also great to see the message getting out; New York electricity prices are too damned high, as Vic Furman says.
For more great articles on natural gas development every single business day, subscribe to Marcellus Drilling News using this convenient link.
The post Cuomo Delivers: New York Electricity Prices 44% Higher Than U.S. appeared first on Natural Gas Now.
https://www.shaledirectories.com/blog/cuomo-delivers-new-york-electricity-prices-44-higher-than-u-s/
Thursday, May 24, 2018
*UPDATE II* Investigative Post Misses the Mark on Gas Drilling In Potter County, Pa.
UPDATE II (5/24/2018, 8:22 PM EST): Since EID’s last update two weeks ago, Investigative Post (IP) reporter Jim Heaney has added a disclaimer about yet another correction he made to his story and changed the WGRZ video to reflect that correction. At the end of the story, it now reads:
“Correction: The original version of this story included an error that was the result of our misinterpretation of documents obtained from the Pennsylvania Department of Environmental Protection. The story incorrectly reported that Pennsylvania authorities cited JKLM Energy for violations during all 20 inspections it has conducted since 2015. While the company was cited for violations during 20 inspections and fined $508,317, the state actually conducted more than 20 inspections. We have thus far been unable to determine the precise number of relevant inspections.”
And while we applaud his efforts to let viewers know the original story was flat wrong, the correction is still a half-truth. Heaney claims to be unable to determine the precise number of inspections. The number, which is 636, is easily found in the public database that Heaney used. All of the 636 inspections conducted by Pa. DEP are relevant – it’s the violations that are questionable, and yet the story still reads, “ublic records show the state Department of Environmental Protection has cited JKLM Energy for 62 regulatory violations found during 20 inspections since 2015…” (emphasis added).
A simple investigation of the DEP’s data (i.e. reading the violations) shows there are a number of duplicates and even violations entered in error that appear in a search of the company. Subtracting those items from the search brings the total down to less than 40 violations out of 636 inspections.
We’re also still wondering why, throughout these updates, Heaney has yet to identify Public Herald’s Melissa Troutman as an Earthworks employee, despite her publicly acknowledging her position as the Research and Policy Analyst for Earthworks’ Energy program. Heaney’s exclusion of Troutman’s anti-fracking affiliation is misleading for readers and leads one to wonder if there is actually more to the data “error” – the default search parameter for the DEP compliance report category, “Inspections with violations only,” is “No” and would have to be intentionally changed to “Yes” to get the results that Heaney did in his original report.
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UPDATE (5/11/18, 5:00 PM EST): Investigative Post (IP) reporter Jim Heaney has updated his story addressing the false statements EID noted within this original post – but readers wouldn’t know that simply by visiting the IP site. Heaney makes no mention anywhere in the post that he’s made modifications to the report.
The original IP report had a completely false line that read:
“An Investigative Post review of state records found inspectors have visited JKLM’s drilling sites 20 times in the past three years and cited the company for violations each and every time…”
The reality being that the Pa. Dept. of Environmental Protection (DEP) inspected JKLM Energy’s well sites more than 600 times since 2015, with only about three percent of inspections resulting in a violation. In what seems to be an effort to correct that inaccurate claim, while still making an equally misleading claim that lacks necessary context, Heaney quietly changed that sentence to:
“Public records show the state Department of Environmental Protection has cited JKLM Energy for 62 regulatory violations found during 20 inspections since 2015…”
Notably, the link to Heaney’s review of the state records — or even an acknowledgement that he was the one to review them — is noticeably absent from the text now.
Interestingly, Heaney makes at least one other correction to the story on the heels of some backlash for misrepresenting Coudersport Borough Councilman Brian Ruane’s comments, adding this line to the report:
“Ruane added, however, that fracking needs to be done responsibly, especially in an area like Potter County, whose economy is reliant in part of tourism and recreation. He and others are concerned, including Melissa Troutman, a local resident and executive director of Public Herald, a nonprofit investigative reporting center that covers the fracking industry.”
In a show of hand to the Keep It In the Ground agenda driving the IP report, Heaney chose not to make another important update to that Ruane addition: Nowhere in the story does it mention that Troutman is now employed by the notoriously anti-fracking organization Earthworks, as EID detailed in the original blog post. Why continue to mislead readers – both regarding what information Heaney’s chosen to include and leave out – unless there is an underlying agenda at play?
Original Post
In a show of hand to the Keep It In the Ground agenda driving the IP report, Heaney chose not to make another important update to that Ruane addition: Nowhere in the story does it mention that Troutman is now employed by the notoriously anti-fracking organization Earthworks, as EID detailed in the original blog post. Why continue to mislead readers – both regarding what information Heaney’s chosen to include and leave out – unless there is an underlying agenda at play?
Buffalo, N.Y.’s WGRZ recently aired a misleading and inaccurate Investigative Post (IP) report on oil and gas exploration and production company JKLM Energy’s operations and involvement in Potter County, Pa.
While the report offered some balance, the vast majority reads more like a “Keep It In the Ground” (KIITG) agenda-driven attack against JKLM Energy than a legitimate news story, complete with false statements and highly questionable sources.
Here are the top four things to keep in mind when reading the IP report:
#1. IP’s claims are misleading and at times completely false.
The biggest example of KIITG-driven “fake news” in the report is one that’s really the centerpiece for all of Heaney’s claims:
IP Claim: “An Investigative Post review of state records found inspectors have visited JKLM’s drilling sites 20 times in the past three years and cited the company for violations each and every time…”
This claim is patently false — and it’s not just a little stretch of the truth, either. The Pennsylvania Department of Environmental Protection’s (DEP) compliance report database actually shows that the agency inspected JKLM’s well sites 636 times from 2015 to March 16, 2018.
Screenshot of DEP compliance report from EID search
The inaccuracy of Heaney’s reporting can be traced to the fact that he searched for “Inspections With Violations Only,” which resulted in, as the search criteria implies, the database only pulling those inspections that resulted in violations.
Screenshot of IP’s DEP compliance report
While it’s important that companies strive to reduce incidents on site – whether those be issues with paperwork or the results of human or equipment error – three percent of inspections resulting in violations is a far cry from the claim DEP “cited the company for violations each and every time” they inspected JKLM in the last three years.
It’s also worth noting that the DEP database is not as straightforward as simply looking at raw numbers, for the simple fact that it includes repetitive entries and does not remove entries entered in error. In fact, one of the violations listed for JKLM clearly states, “This inspection was created in error” by DEP, yet still remains as a searchable violation in the agency’s database.
Further, the violations cited against any company do not necessarily mean that new incidents occurred every time a violation is noted. That’s because every time DEP inspects a well site where a previous violation has been issued and is still being remediated, the database notation for that is inputted as a new violation. Realistically, in the case of JKLM, the violations DEP has issued have been for only eight wells or related infrastructure, and many of the violations are repetitively entered based on previously isolated incidents. Which brings us to the next important point…
#2. The IP report is based on a year-old report from an organization that has been caught fabricating stories about Pennsylvania’s shale industry on more than one occasion.
At the heart of these false claims is a year-old report from anti-fracking organization PennEnvironment that Heaney uses as the basis for his entire “investigative” report.
Not only does PennEnvironment have an obvious agenda to stop shale development – the organization has a website page called, “Don’t Frack Pennsylvania” – but they’ve been caught red-handed fabricating stories to achieve those goals.
Recall back in 2011 when in an attempt to capitalize on the devastation our region experienced from Hurricane Lee, PennEnvironment released an image of a flooded oil and gas rig with the caption, “Here’s more evidence Marcellus Shale drilling pads should NOT be allowed in floodplains.” But as the Harrisburg Patriot-News reported shortly after the image was shared:
“he rig wasn’t in the Marcellus Shale.
“It wasn’t even in the United States.
“’Apologies folks,’ Penn Environment later admitted: the photo was of a flooded rig in Pakistan.”
Similarly, a few months later in 2012, the group tried to pass off an image of a South African pipe releasing treated water as an example of “toxic industrial pollution” from fracking occurring in Pennsylvania.
Not surprisingly, PennEnvironment, and parent organization Environment America, don’t have a much better track record for accuracy in their reports, including the one Heaney relies so heavily on in the IP report. Specifically, PennEnvironment’s report on violations is one they have been repackaging since 2012 with the same issues in each: the reports take data out of context and even go as far as to redefine violations to fit their agenda. From the 2015 version:
“In addition to specifying specific violations, the downloaded file also sorted them into categories: ‘administrative’ or ‘environmental health and safety.’ We discarded Pennsylvania’s categorization as inconsistent and inadequate, and instead ourselves divided the violations into two categories: ‘administrative’ or ‘environmental and health,’ based on the definitions listed in Appendix A.”
For PennEnvironment, violations need to be a numbers game and they’ve shown time and again that they take great strides to make the data match their narrative. In quoting their report and members, all Heaney actually did was give PennEnvironment yet another platform to push the group’s clear agenda to ban fracking.
#3. IP misleads on Coudersport resident Melissa Troutman, who is not an unbiased local bystander.
One of IP’s primary sources for the story, Coudersport resident Melissa Troutman, is hardly an unbiased local bystander. Although she is a Potter County resident who happens to have wells being developed near her property, she also has a clear mission to stop shale development in Pennsylvania.
And while her anti-fracking position was pretty evident in her role in founding the outlet Public Herald, it became crystal clear when she recently accepted a position with Earthworks – a group that vehemently opposes fracking and has even proudly equated the process with rape. Notably, disclosure of Troutman’s new job is conveniently missing from the IP report, where she is listed only as a resident and founder of Public Herald.
In the spirit of transparency – both Public Herald and PennEnvironment, which appear to have been the primary sources for the IP report, receive funding from the Colcom Foundation, which has notoriously funded anti-fracking ventures.
Moreover, Troutman doesn’t appear to have been randomly selected by IP to act as a source. In fact, Public Herald and IP actually have some distinct connections that make it hard to believe this wasn’t an orchestrated attack on JKLM Energy.
Public Herald (2013) and IP (2015) were both recipients of the Institute for Nonprofit News’ (formerly the Investigative News Network) INNovation Fund that was established by the John S. and James L. Knight Foundation. In 2013, Kevin Davis, then-CEO and Director of INN, issued a statement that he was “thrilled” to welcome three new members, including Public Herald, to the INN roster of newsrooms because they represented “the next generation in collaborative, mission-driven newsrooms.”
That encouraged collaboration between members appears to have come to fruition in Tuesday night’s piece – an incredible coincidence considering Davis now sits on the IP Board of Directors.
This is further evidenced by a recent comment Public Herald co-founder Josh Pribanic made on a public Facebook post that alluded to him knowing what content would and wouldn’t be included in the piece and that his outlet was publishing a similar write-up on its heels.
And the coincidences don’t stop there. In the IP report, Heaney directs people to the organization LittleSis, which is a part of the Public Accountability Initiative – another anti-fracking organization that, according to 990s, received over $360,000 for work specifically targeting fracking from the 11th Hour Project. Unsurprisingly, Public Herald also lists 11th Hour Project as a funder for its own “investigative reports” (read: attacks) on JKLM Energy.
One has to wonder if all of this really is just sheer coincidence or if it is a case of collusion and cooperation between anti-fracking organizations.
#4. JKLM Energy is a well-respected and active member of the Potter County community.
In JKLM’s response to the IP report, the company states,
“We’re proud of the work that we continue to accomplish together, and the local benefits that we’re creating, and recognize that it’s a privilege to operate in the communities where we work, invest and grow local jobs. At JKLM, there’s no higher priority than keeping our environment and communities safe.” (emphasis added)
Based on comments from folks like Potter County Commissioner Susan Kefover (D), JKLM’s commitment to the community and environment hasn’t been an empty promise. To IP’s credit, author Jim Heaney did quote Kefover in the report, acknowledging she “termed JKLM Energy an ‘excellent company.’” But that’s only a fraction of what the commissioner actually sent in her statement to the reporter:
“Pennsylvania has some of the highest environmental standards in the nation for air and water quality protection. I value our environment and quality of life here and aggressively work toward preserving it. I also value working with companies such as JKLM who honor, respect, and diligently uphold those same goals.” (emphasis added)
This sentiment was echoed by Coudersport Borough Councilman Wayne Hathaway, who explained to EID,
“I have honestly not seen any reason yet for all of the adverse publicity against JKLM brought on by these activists. The company has made huge investments in our community, including a major donation for the rebuilding of our local pool. Not only have they done that, but they did an incredible job on some of the local roads. They have a lot of truck traffic admittedly, but they’ve improved the roads to much better quality than when they started. I have not seen anything in their operations and activities that would make me speak negatively about JKLM Energy.”
Hathaway is pretty spot on that this entire IP report, where Heaney brings up long remediated incidents and uses outdated (and debunked reports) from anti-fracking organizations to base his claims on, seems to be solely “brought on by these activists,” rather than anything the company has or hasn’t done recently.
Conclusion
Make no mistake – no one is saying that all companies operating in Pennsylvania shouldn’t be striving to improve their records for any and all instances or violations. That’s a given. But to expect “zero risk” from any industry, whether it’s oil and gas or even the media, isn’t realistic. Even Heaney acknowledged this when he told WGRZ, “Yeah, it’s probably impossible not to have some .”
Producing a report that has blatantly false information and a clear agenda against a company that has become an important part of Potter County has no other result than to fuel misinformation and misguided fear. And that’s not helpful to anyone whether they are living in Coudersport or Buffalo.
Pay for Your Own Damned Electric Vehicle, Please, I’m Working to Pay My Bills
Keep It Grounded In Fact
(American Fuel & Petrochemical Manufacturers)
Electric vehicle subsidies largely steal from the poor and middle classes to give to the rich. It’s time to stop this picking of winners and losers.
Electric vehicles (EVs) remain a darling of the “Keep It in the Ground” folks, who tout them as the beginning of the end for fossil fuels. Even setting aside the reality that oil and natural gas are still critical to everything automotive—from seatbelts to the streets they drive on—this uncritical adoration of EVs has led to policy outcomes that are functionally regressive taxes on poor and middle-class families.
Put simply, electric vehicle subsidies and benefits accrue to wealthier households because rich families are vastly more likely to be able to purchase new EVs. This is a natural outcome of the current state of EVs:
- Electric vehicles cost more than traditional vehicles to purchase and have dramatically lower resale values, making them too expensive (and a poor investment) for many Americans
- They have range and charging restrictions that make them an unrealistic option for single-car individuals or households, so they are most often purchased as second or third vehicles
- Wealthy families are more likely to purchase new vehicles, and used EVs do not qualify for the subsidies (up to $7,500 in federal tax credits and up to $5,00 in state subsidies)
All of which means that while the cost of these subsidies is largely drawn from middle-class tax dollars, they disproportionately benefit the wealthy.
And these subsidies are not chump change—the federal tax credit is estimated to run about $2 billion over the course of the program, and California alone set aside $140 million for EV subsidies in its 2017-18 budget. That kind of money could fill a lot of potholes, rather than filling upper-income garages with EVs.
And taxpayers don’t stop covering the costs of their wealthier neighbors’ environmental statement vehicle once it rolls off the lot. Since some states offer registration rebates, free HOV, and free parking, once again these wealthy EV owners are free-loaders at the expense of middle-class families. Additionally, since EV owners don’t buy gas (and thus don’t pay the gas tax), those who do are basically covering the cost of road and infrastructure usage for EV drivers. The more EVs there are on the road, the more these costs will grow, eventually requiring higher gas taxes, registration fees, etc. to make up for the shortfall.
But the real financial burden is just beginning. Unlike traditional gas stations, which were built by the companies that owned them, states are directing utilities to build EV charging stations—and allowing them to pass along the costs to all utility customers. Creating a widespread, entirely new infrastructure of EV charging stations across a state could easily cost hundreds of millions (if not billions) of additional taxpayer dollars. That’s a hefty hit to families’ bottom line, especially since very few of them will directly benefit from these “improvements.”
So working-class Americans are seeing their state and federal tax dollars subsidize the purchase of electric vehicles by their wealthier neighbors; their gas tax dollars covering EV drivers’ highway and HOV lane usage; and now are facing higher utility bills to help make charging more convenient for EV drivers.
As Wayne Winegarden of the Pacific Research Institute recently concluded:
When upper-income households are the only ones benefiting from electric car subsidies, taxpayers should be asking what benefit they are getting from them.
There is also an opportunity cost when taxpayers spend hundreds of millions of dollars on subsidies. These dollars could be put to better use for other programs – or simply left to taxpayers to spend as they wish and boost the economy.
Editor’s Note: There is nothing inherently wrong with an electric vehicle. It is, after all, essentially a natural gas vehicle given that the original power is mostly generated using natural as fuel, but why subsidize such toys? Let the market decide. CNG vehicles make more sense and the cost is coming down. The cost of electric vehicles will also come down if that industry is forced to compete. This is the way it should and must work if we are to pursue sustainable energy policies. Subsidies are for losers. And, yes, that includes Elon Musk.
The post Pay for Your Own Damned Electric Vehicle, Please, I’m Working to Pay My Bills appeared first on Natural Gas Now.
Poll Finds Misconceptions In Consumer Attitudes Towards NatGas
More than a decade into the shale revolution in the Appalachian Basin, the population’s mindset when it comes to energy, and natural gas specifically, can be jaw-dropping.
After 10 years of educating the public, of community outreach programs, of spending and hiring locally, misconceptions still abound. West Virginia’s Orion Strategies, an expert at polling the common man, in early April conducted a telephone survey of 600 men and women living in the 19 counties in Pennsylvania, Ohio and West Virginia that are considered part of the Ohio River Valley.The Results:
The poll were presented last week at Upstream PA 2018, the annual one-day conference presented by ShaleDirectories.com in this small town dominated by Penn State University. Orion principle Curtis Wilkerson presented the poll’s results. Kallanish Energy was in attendance at the one-day program.. On the plus side, 66% of those surveyed believe the oil and natural gas industry representatives operating in their area is very or somewhat trustworthy. The potential problem with that positive percentage is evident when you look at individual age groups. The group including ages 18 to 22, aka, Generation Z, look on O&G as not very or not trustworthy at all at a 37% mark. The parents of Gen Z, Generation X (38-53), look at O&G through entirely different glasses, with 66% seeing the industry as very or somewhat trustworthy. Education of the industry took hold in the parents, but had not worked or had not been presented to the children. Here’s another very interesting survey result: Wilkerson’s poll found Ohio River Valley inhabitants believe the oil and gas industry isn’t hiring locally, 45% to 40%, with 15% of those surveyed unsure where labor was coming from. There’s no question when Range Resources sunk the first Marcellus Shale well more than 10 years ago, the ensuing rush to spud meant most workers eating at local restaurants and staying at local motels were driving vehicles with license plates from Texas, Oklahoma, Colorado and Louisiana. But local institutions of higher learning and trade schools soon saw the light and began offering classes geared to what O&G companies needed. Sadly, many residents in the Ohio River Valley don’t believe it. “When asked if someone close to them work for the oil and natural gas industry, 75% said ‘no,’” Wilkerson told the Upstream PA conference. But, he added, that striking percentage more than likely isn’t correct because those surveyed did not associate working in O&G with driving a water truck, for example. Finally, it’s obvious from the Orion poll, Ohio River Valley inhabitants like what they see with oil and gas production. When asked their opinion for increasing production of oil and gas in their county, Wilkerson said 83% strongly or somewhat support “drill, drill, drill,” while just 15% somewhat or strongly oppose higher production. Joseph F. Barone ShaleDirectories.com 610.764.1232 jbarone@shaledirectories.com www.shaledirectories.comWednesday, May 23, 2018
Andrew Cuomo Chooses New York State’s Ending: In Ice
Natural Gas NOW
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Andrew Cuomo bragged last week that he had banned fracking, stopped pipelines and would prevent any more gas plants, ensuring New York State will end in ice.
Some readers will recall Robert Frost’s famous “Fire and Ice” poem regarding the two possible ways the world might end. He was talking metaphorically, of course, and ice represented hate, which is why it serves so well to doubly illustrate the absurdity of his incredibly irresponsible remarks last week. He’s leading New York State to death by ice both figuratively and literally.
Note: Dual fuel facilities are primarily natural gas fueled power plants that only use oil as a backup fuel source.
Let’s start with the literal part. New York State has become a place where it is impossible to do anything energy-wise. Why? Well, because ideology and NIMBYism have been raised up as virtues, as facts and their implications are relegated to politically incorrect speech to be ignored. The oil and natural gas industry has been targeted for hate, while other energy options preached by the haters are conveniently rejected on the basis of patently ridiculous excuses, ensuring nothing happens except by extreme effort or bribery.
Yes, the very same individuals who hate natural gas and lecture us all about the need to go with “clean energy” show up at planning board meetings to oppose those projects, too. I know. I see them at the meetings. They use the same “industrialization” language, in fact. It’s not that a solar or wind farm doesn’t have environmental impacts. That’s a message we’ve delivered here numerous times. No, it’s about the deliberate failure to reckon with the facts and proceed rationally to make realistic energy choices. That’s nigh impossible in New York these days due to demagogues such as Andrew Cuomo.
Cuomo, in a grotesque episode of pandering I mentioned here Saturday, told fractivists funded by the Park Foundation and others this:
“I don’t build any fossil-fuel plants anymore, and I banned fracking, and I have the most aggressive renewable goals in the country,” he insisted, according to Politico.com. He also credited himself with blocking new pipelines.
He’s running against Cynthia Nixon, of course, who is even worse, and that is the explanation; he’s trying to get to her left by demonstrating he hates oil and gas more than her. But, does that make any sense, even in New York? Wouldn’t a crafty politician want to position himself as the steady hand with a grip on reality and point out the new Nixon might not be a crook but is clearly a kook? Is New York really that far gone? Is hate for oil and gas really that deep, when the conversion of New York City boilers from heavy oil to gas has literally saved hundreds of lives and the City keeps using more gas?
Andrew Cuomo is clearly running scared. Somehow, though, I suspect there’s more to it. What it is, precisely, I can’t say, but I suspect its a combination of him having sold his political soul to the NRDC gang and, conversely, not having been successful in getting graft out of the oil and gas industry (other than CPV Energy Valley, of course). Cuomo, the crime boss capo, deals out punishment to those who don’t play ball with him and keeping the NRDC gang at bay is always useful as well.
“Crime and the State” vs. “Sex and the City”
The problem for New Yorkers, though, is that Andrew Cuomo’s game is going to ensure the state ends in ice, figuratively speaking. We know this from the latest report issued by there state’s electric grid manager, the New York Independent System Operator (NYISO). Here are the fundamentals, which can be easily missed amidst the foggy bureaucratic language and attempts by NYISO to politically thread the needle:
- “Reflecting economic and public policy investment signals, generation additions have primarily been natural gas-fueled or wind-powered. Since 2000, nearly 12,000 MW of new generating capacity came online in New York State. This additional generation represents approximately 30% of NewYork’s current generation capacity. Nearly 80% of that new generation has been developed in southern and eastern New York, where power demand is greatest.” Translation: Our generating capacity needs constant updating and new natural gas power plants the governor says he won’t approve are absolutely essential.
- “The portion of New York’s generating capability from natural gas and dual-fuel facilities grew from 47% in 2000 to 58% in 2018. Wind power — virtually non-existent in 2000 — grew to 4.5%of New York State’s generating capability in 2018.” Translation: Don’t count on wind power; it doesn’t even amount a tenth of that generation capability added by natural gas.
- Generators with comparatively low fuel and operating costs are usually selected in wholesale electricity markets to consistently supply power. They typically have average annual capacity factors of 70% or higher. Lower capacity factors indicate that a generator operates less frequently, such as during peak demand periods, or that its operation depends on the intermittent availability of its fuel supply, such as hydro, solar, and wind energy… The relative capacity factors of different types of generation are important considerations in planning the future fuel mix. For example, based on 2017 operating performance, it would require nearly 3.4 MW of wind capacity to produce the same amount of energy as 1.0 MW of nuclear capacity over the course of a year. Translation: Natural gas power plants provide the power when needed—on demand—and operate at capacity factors at least twice as good as wind. Only politically craven ideological idiots would choose wind over gas.
- In August 2016, the New York State Public Service Commission (PSC) adopted a Clean Energy Standard (CES), requiring that 50% of the energy consumed in New York State be generated from renewable resources by 2030 (50-by-30 goal). Under the CES, electric utilities and others serving load in New York State are responsible for securing a defined percentage of the load they serve from eligible renewable and nuclear resources. The load serving entities will comply with the CES by either procuring qualifying credits or making alternative compliance payments. In order to achieve the 50-by-30 goal, the PSC determined that approximately 70,500 GWh of total renewable energy will need to be generated by 2030 — including approximately 29,200 GWh of new renewable energy production in addition to existing levels of production at the time the order was adopted. Translation: Almost all of our existing renewable energy comes from hydro-electric facilities. How, in God’s name, are we going to more than double that without using natural gas as a bridge and to avoid covering upstate with highly inefficient solar and wind farms?
- The NYISO has assessed a variety of scenarios to determine whether 2,400 MW of offshore wind production could be injected into the gridwithout thermal overloads. The NYISO’s analysis concluded that it was feasible to accommodate the injection of 2,400 MW of offshore windwithout overloading transmission lines and violating thermal reliability criteria. This assessment did not examine system upgrade costs or other interconnection costs that would likely be associated with reliably delivering new capacity on the grid. These types of issues will ultimately come to light as specific proposed projects are examined through theNYISO’s interconnection study process. Translation: Off-shore wind? Are you kidding? Is the governor out of his mind? Where are the grown-ups?
There’s much more, of course, but astute readers will have no difficulty reading between the lines. New York State, under a Governor Corruptocrat running scared of a political opponent even more unreal than himself, is headed toward a collapse of its grid capacity if it takes his policy prescriptions even slightly seriously. New York may well end in ice if the adults don’t show up soon.
The post Andrew Cuomo Chooses New York State’s Ending: In Ice appeared first on Natural Gas Now.
https://www.shaledirectories.com/blog/andrew-cuomo-chooses-new-york-states-ending-in-ice/
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