Showing posts with label fracking. Show all posts
Showing posts with label fracking. Show all posts

Monday, January 28, 2019

Why Most Green Energy Schemes Are Doomed to Fail

Tom.jpg?resize=75%2C95Tom Shepstone
Natural Gas NOW

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There’s a huge problem with green energy schemes that no one is talking about; they rely upon planned government activity rather than spontaneous innovation.

Almost all green energy schemes rely upon government support and/or government direction. Dogma is their foundation and coercion of one form or another is their standard operation procedure. The combination of horizontal drilling and hydraulic fracturing, by contrast, is a matter of spontaneous innovation; a combination of two previous innovations that together have produced the shale revolution.

This innovative combination, moreover, involves no coercion, no subsidies, no renewable portfolio standards and no mandates. It is constantly changing, improving and upgrading with no limits and no end in sight. Meanwhile, the promise of green energy delivered on its own, absent government propping it up and forcing its use, is somehow always in the future, so close we’re told, we can taste it, except that it never happens.

All this came to mind over the weekend as I was finishing a wonderful book called “The Tyranny of Experts,” by William Easterly. He makes an impassioned case for why so many of the efforts by World Bank types, and specifically, the Rockefeller Foundation, to bring poor countries out of poverty have been utter and complete failures. Along the way, he refers to another of my favorite books, “The Death and Life of Great American Cities,” by Jane Jacobs. Both books are highly critical of top-down planning and argue for individualism and for freedom to invent, innovate and renew.

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Cast-iron buildings in SoHo that were once decrepit old factories and are now part of a very expensive trendy scene

Jacobs made the point, long ago, that attempts at conscious direction of city life as in urban renewal projects then being proposed for a destitute area of New York City were doomed, whereas organic, spontaneous development was the very nature of city life.  She was proven correct years later when that destitute area became what is now known as the trendy SoHo part of Manhattan, where apartments sell for multiple millions of dollars.

We see the same dynamic with green energy schemes. Most of the green energy development we’ve witnessed to date is anything but organic. Rather, it’s planned by supposed experts in government and forced upon us. We’re told we have to do it and we have to pay extra to do it. This means, of course, there is no real incentive to innovate. Why experiment with an alternative idea or a different approach when you’re assured of a market for what you’re doing now?

Compare this to the way the natural gas industry works, with no significant subsidies or requirements that your product be used. The only way to get ahead to is to constantly innovate by finding a better, less expensive way to get your product to market. This is why natural gas development has changed dramatically since I first got involved in promoting it. Then, we were talking about a well pad for every 40 or 160 acres. Now, we’re seeing 1,280 acre units and laterals going out miles with absolutely minimal land disturbance. We’re seeing multi-level drilling, recycling of almost all water used and other innovations too numerous to mention.

This happens, of course, partly due to competition that government guarantees invariably obliterates. But, there’s a bigger factor as well and it is that focusing the attention of 100 green energy experts on a single idea is never as effective as 100 people pursuing 100 ideas. Innovation cannot be planned or forced. It has to be spontaneous to be innovative, something no one thought of before. That only happens when large numbers of people are pursuing large numbers of ideas, with lots of failures and those occasional successes that take everything in an entirely different direction.

This could be happening in green energy, too, but is it? Not really. It’s much too easy to secure tax incentives from Congress for old uneconomical energy. It’s much too easy to get states to impose requirements that utilities use what is produced by the same old green energy schemes. There is no reward in green energy for fooling around with crazy ideas that just might work. Take away the mandates and the subsidies and a thousand new ideas might bloom because some eccentric entrepreneurial mind out there and others like him suppose they know how to turn rain into carbonless gasoline.

But, that’s not happening with green energy schemes. No, all the scheming is going into how to grab government money, which involves zero innovation. The natural gas industry, where there’s not only freedom to pursue new ideas but potentially huge rewards for doing so, is innovating all over the place. This is why green energy schemes never quite materialize as projected. Every advance in green energy is matched by two or more in natural gas. Incentives matter. Spontaneous innovation stimulated by a combination of freedom and competition will always trump the best efforts of the experts trying to plan and mandate it on behalf of government.

The post Why Most Green Energy Schemes Are Doomed to Fail appeared first on Natural Gas Now.

https://www.shaledirectories.com/blog/why-most-green-energy-schemes-are-doomed-to-fail/

Friday, January 25, 2019

Green Energy Being Abandoned As Economics Go Red

Tom.jpg?resize=75%2C95Tom Shepstone
Natural Gas NOW

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Green energy quickly fades whenever the costs suddenly become readily apparent and no one wants to pay. China and Germany provide the latest evidence.

As the mush for brains and wolf-crying millennial Alexandria Ocasio-Cortez preaches the world is about to end in 12 years and the cost of green energy is, therefore, somehow irrelevant, two countries are saying otherwise. And, they’re not just any countries; they’re two of the nations cited by green energy advocates as world leaders we should all emulate with the greatest urgency. They are China and Germany. Both are stuck on coal as the U.S. has moved to cleaner gas that actually makes a difference.

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If you listen to AOC long enough, 30 seconds or so, you realize she really has it in for her homeland. She supposes the U.S. is the cause of a global warming crisis and must spend whatever it takes to pursue a green energy revolution; her green new deal.” That attitude ignores reality. It is the U.S. that has “bent the curve downward,” on emissions as AOC-like politicians are prone to say. We have shifted from coal to gas to do so. China and Germany are sticking with coal because green energy can’t compete with it as gas does (although China is now fracking, too).

Here’s the story from China via our friends at the Institute for Energy Research:

China recently put the brakes on solar and wind energy, indicating that it will no longer approve wind and solar power projects unless they can compete with coal power prices. In late May 2018, China issued “2018 Solar PV Power Generation Notice,” imposing caps on solar energy and reducing feed-in tariffs on those projects. More recently, China’s National Development and Reform Commission and the National Energy Administration provided a series of conditions under which new solar and wind projects would be approved through the end of 2020. Conditions include that the price must match or undercut the national coal benchmark and that the projects must show that the grid can handle their output. In 2017, 12 percent of wind generation and 6 percent of solar generation was curtailed due to lack of transmission capacity…

China is cutting back on solar and wind units due to their cost, the ballooning subsidies the state owes the solar and wind power builders, and the lack of grid-connected transmission capacity. It has now placed the financial responsibility for the units on the local governments and required any solar or wind power built to be cheaper than the benchmark coal price.

And, here’s the latest from Germany via Platts:

Germany needs to retain half of its coal-fired power generation capacity until 2030 to offset the closure of all its nuclear reactors by 2021/22, economy and energy minister Peter Altmaier said Tuesday…

Altmaier said half of Germany’s current hard-coal and lignite capacity of just over 40 GW would still be operational in 2030, with any agreed phase-out timetable needing a periodic review based on security of supply and affordability criteria.

German power prices could be 8%-13% higher between 2022 and 2030 under an accelerated coal phase-out compared with a base scenario, analysts at broker Bernstein said Tuesday…

The minister virtually excluded additional coal closures in 2021 and 2022 as over 4 GW/year of nuclear capacity are set to close.

Altmaier warned of blackout risks under various scenarios, but praised grid operators in securing grid stability to date.

Germany, of course, put all its eggs into its Energiewende, which has spectacularly failed to reduce emissions as intended, but has spectacularly increased electric prices. The inability to phase down the use of lignite or dirty brown coal is directly attributable to ideological decisions to get out of clean nuclear energy and to never touch clean natural gas development. Compare this idiocy to the U.S., where the shale revolution has simultaneously lowered emissions and energy costs. But, don’t expect the girl wonder from the Bronx to get any of this. That would demand the ability to think rather than preen.

The post Green Energy Being Abandoned As Economics Go Red appeared first on Natural Gas Now.

https://www.shaledirectories.com/blog/green-energy-being-abandoned-as-economics-go-red/

Monday, January 7, 2019

Shale Gas News – January 5, 2019

desRosiers_headshot.jpgBill desRosiers
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 energy dominance, Opec, LNG exports 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 a guest, we had Gregory Wrightstone, author of Inconvenient Facts.

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The Shale Gas News, typically, is broadcast live. On the January 5th show (click above), we covered the following new territory (see news excerpts below):

  • Here are Trump’s Largest ‘Energy Dominance’ Actions of 2018. President Donald Trump has pushed his administration toward “energy dominance” by cutting environmental regulations on fossil fuel development and opening up federal lands and waters for energy companies. The Trump administration has dealt significant blows to the environmental legacy of former President Barack Obama, tackling Obama-era regulations, such as the Clean Power Plan, while taking the U.S. out of the Paris climate accord, an international agreement to cut emissions and combat climate change that the Obama administration signed the U.S. onto in 2015 and pushed heavily in its final months.
  • JP Morgan: If OPEC doesn’t maintain its cuts, oil could stay lower for longer. If the Organization of the Petroleum Exporting Countries (OPEC) does not follow through with its commitment to reduce oil production throughout this year, Brent crude prices could struggle to rise, according to J.P. Morgan’s head of Asia Pacific oil and gas.  In an early December meeting, OPEC and non-OPEC countries agreed to take about 1.2 million barrels a day off the oil market — initially for six months — starting January, amid a persistent imbalance between global oil supply and demand.
  • Shale Drillers Cut Budgets as Oil Prices Drop. Some frackers are scaling back next year’s drilling plans amid weak crude prices, a quick reversal for an industry that months earlier expected 2019 to be a banner year.  Still, the cuts so far have been modest and shale drillers remain on track to push U.S. crude production to new highs next year, further pressuring a global market straining because of oversupply.
  • U.S. liquefied natural gas export capacity to more than double by the end of 2019. EIA projects that U.S. liquefied natural gas (LNG) export capacity will reach 8.9 billion cubic feet per day (Bcf/d) by the end of 2019, making it the third largest in the world behind Australia and Qatar. Currently, U.S. LNG export capacity stands at 3.6 Bcf/d, and it is expected to end the year at 4.9 Bcf/d as two new liquefaction units (called trains) become operational.
  • NEPA Gas-Fired Plant Gets Noisy, Scares the Neighbors. On Sunday, Dec. 23, residents living near the Lackawanna Energy Center (LEC) in Jessup, PA (near Scranton) woke to a loud noise that sounded like a jet engine–and the release of natural gas into the air.  It’s not the kind of early Christmas present they wanted. LEC is a 1,480 megawatt, $1 billion Marcellus gas-fired electric plant–Pennsylvania’s largest natural gas-fired electric generating plant. Cabot Oil & Gas supplies all of the gas for the plant from neighboring Susquehanna County.
  • NFG Building 4.5 Mile NatGas Pipe to Feed Shell Cracker Complex. It’s not often a vital pipeline project, no matter how small, escapes our attention–but this is one of those times.  What prompted our curiosity about a previously (to us) unknown project was this short notice appearing on the PA Environment Digest Blog site.
  • PA Supreme Court Rules Strippers Not Exempt from Impact Fee. Pennsylvania strippers are back in the news. Hold on, this is a family-friendly site! We’re talking about stripper wells.  Stripper wells are natural gas wells that produce less than 90 thousand cubic feet per day (90 Mcf/d) of natural gas.  In 2012 Pennsylvania passed the Act 13 drilling law that includes an impact fee on wells targeting shale layers, including the Marcellus.

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The post Shale Gas News – January 5, 2019 appeared first on Natural Gas Now.

https://www.shaledirectories.com/blog/shale-gas-news-january-5-2019/

Sunday, January 6, 2019

Potomac Pipeline is a No-Go, Thanks to Animal Farm

KJ-Rodgers.jpgK.J. Rodgers
Crownsville, Maryland  

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The Maryland Board of Public Works embraced the Animal Farm revolution to reject the easement request for the Potomac Pipeline. 

This week, the Maryland Board of Public Works once again put their baseless emotions in front of the facts and opted to deny an easement application for the Potomac Pipeline. Headed up by Comptroller Peter (Squealer) Franchot, Treasurer Nancy K. Kopp, and Comrade Governor, Larry Hogan, the Maryland Board of Public Works decided the scare tactics of The Terracotta Army of pseudo-environmentalist groups, the sheep, were justified in blocking the natural gas pipeline from delivering clean-burning energy to Western Virginia.

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Click to order this must-read book

The once Hogan-endorsed pipeline was set to cross the smallest span of Maryland in the Western Panhandle, a length of three and a half miles, and into West Virginia. The goal was to easily transfer natural gas to the coal-dependent state to not only provide heating and energy power to its citizens, but also to feed the Appalachian Storage Hub. A little research on that project and the interstate commerce nature of that project will serve to illustrate the ridiculousness of this totally political decision to reject the easement.

Activists have been fighting this pipeline for two years, basing the fears on a revolving set of issues such as karst geography, poisoning the District’s water supply, or whatever ideology they believe will fit the situation at the moment. Showing up in plastic kayaks on the water to boycott an 8-inch pipe and inserting “fracked” into every instance of natural gas to demonize it based on unsubstituted fears, the activists have shouted, “Green is good, fossil is bad.” This lead, in turn, to the other animals of the farm, the Maryland General Assembly, to pen a letter to the Board of Public Works asking them to deny the easement – regardless of the consequences.

What are those consequences? Plainly speaking, a vote against natural gas is a vote for coal in Western Virginia. Men and women there are not up to playing the silly politics of Animal Farm elitists who take for granted the benefits of natural gas has given to them to heat their homes. The people of West Virtginia have been raised in the mines and will go back to them if there are no other means to provide for their families.

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The Sierra Club of Maryland Director, Joshua Tulkin, shared a video of a DC news channel, WUSA9, because they had a “shout out” of the coverage. To add salt to the wound, the ‘news’ video is basically a re-broadcasting of Gasland – seriously, flaming water scenes and all. One beautiful part of their propaganda video is their quoting of Jim Willis, Editor & Publisher, Marcellus Drilling News (MDN) at 1:55 into the video. Great quote, Jim.

TransCanada, the company behind this pipeline adventure, is not giving up. While it does make the situation tougher than it needed, I am hoping others do not see it as a precedent.

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Check out the local reporting by Herald Media

Ann Bristow, a radical figure I have mentioned several times before, sums my Animal Farm theme of this post up just right by saying, “He saw the writing on the wall — he wants to be on the right side of history.” The only writing on the wall is “Green is good, fossil is bad” and its only intent is to steer beliefs of others without them needing to think for themselves.

The post Potomac Pipeline is a No-Go, Thanks to Animal Farm appeared first on Natural Gas Now.

https://www.shaledirectories.com/blog/potomac-pipeline-is-a-no-go-thanks-to-animal-farm/

Monday, December 31, 2018

Why Natural Resource Issues Are So Divisive and What to Do About It

Tom.jpg?resize=75%2C95Tom Shepstone
Shepstone Management Company, Inc.

 

A remarkable, baring of the soul, article from the former head of the Colorado Oil and Gas Association offers several lessons on natural resource issues.

One of our readers and supporters from Western Pennsylvania sent me a remarkable article the other day. It’s titled “Down the Fracking Hole” and is authored by Tisha Schuller,  founder and principal of Adamantine Energy who serves as Strategic Advisor to Stanford University’s Natural Gas Initiative. She is also the former the president and CEO of the Colorado Oil and Gas Association and has written a new book you can read about and buy here. The article bares Schuller’s soul on dealing with fractivist types and offers some great insights for all of us.

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It’s a rather lengthy article, but well worth reading in total. Schuller talks about the difficulties of having a rational discussion when everyone has preconceived ideas and peer group relationships drive us all into competing tribes. What I found most interesting was her honest assessment of how many things simply don’t work to break down the barriers of communication, yet she ends on a hopeful note for having opened the mind of one person at least. That takes a degree of optimism that not only rings the bell at one of those carnival test of strength attractions but sends the bell itself into orbit.

y entire identity was based on traditional green environmentalism. Back in California, I had protested the early ‘90s “war for oil.” I registered to vote first with the Peace and Freedom Party and then the Green Party. I loved and took solace in nature. I still do.

In Colorado, I matured, got married, had children, and life became more complicated. I eventually worked as a consultant to the oil and gas industry and later ended up representing the industry in various forums and media across Colorado…

I spent years trying to create peace. Most disputes over energy development ended badly, usually in a highly charged stalemate. Much of the conflict was rationalized by each protagonist referring to their own body of scientific work. I came to understand that, in reality, we were each choosing to believe the science that conformed with our own worldview…

People must engage in building relationships built on empathy and trust before scientific explanations will have any effect…

Five years ago, I regularly found myself in contentious town meetings representing the oil and gas industry as the CEO of the Colorado Oil and Gas Association, commonly known as COGA. The trade association represents oil and gas companies and their interests in the political, regulatory, legislative, and media arenas.

I went to COGA from my pleasantly busy but relatively boring job as a mid-level manager for an environmental consulting firm. I went for the crazy reason that I felt called to do so. I got to know oil and gas workers as my clients while permitting facilities and conducting environmental trainings. I thought I could help tamp down the conflict that was building over fracking throughout much of the West. That proved to be optimistic…

For me, going to work for COGA was a way of acknowledging my own consumption and our societal dependence on oil and gas. Further, as an environmentalist, I was excited about the potential for natural gas to be a meaningful part of curbing greenhouse gas emissions by displacing coal. Going to COGA was a strange compromise between joining the perceived “enemy” of my tribe and acknowledging that our tribe needed them.

Before I took the job, my husband and I discussed the risks and the implications in detail. We were both clear that if I ever felt I was compromising my values, I was prepared to leave. By my second year on the job, the fracking controversy was raging, and I regularly sat in community meetings explaining—or even debating—the merits and safety of oil and gas development. Communities had heard of fracking and were often certain that it would poison their groundwater. A furious debate ensued over which chemicals were added to the fracking fluids that were used a mile or so underground to create microcracks in rocks to release oil and gas. Many of the people who came to community meetings had never encountered oil and gas development directly before. And they were alarmed.

My hippy roots and background in environmental science and geology were not building the communication bridges I had naively anticipated. I was unnerved by the anger and fear I met in meeting after meeting, fueled by scary and misleading information, but also representing very real issues and concerns. I would metaphorically wave my research references as I presented to an agitated audience squirming in their seats. One by one, they would give public comment and ask angry questions referencing their own sources of frightening information about fracking.

I spent five years in that role, first focused on educating the public about fracking, and later, based on my trail of failures, convincing the industry that an education campaign alone would never work to build public confidence. Even the most thoughtful educational forum created a firestorm of anger and distrust…

We all seek harmony between our beliefs, attitudes, and behaviors. When we see evidence that creates a conflict with what we already believe, we preserve our values. For example, when I read a newspaper article about fracking that I feel unfairly and unconsciously casts an oil and gas company in a bad light, I immediately seek harmony by dismissing the fairness and underlying intention of the story.

Similarly, when I present myself in a community meeting as an environmentalist and mother who is explaining the science of fracking, it can create its own cognitive dissonance. An attendee may in fact feel that she is the environmentalist and mother, and she does not believe that fracking is safe. The automatic response is to find a reason to dismiss me and my underlying intentions, usually by saying that I’m a shill for the industry…

To prevent the emotional discomfort of cognitive dissonance, we surround ourselves with like-minded people. The informational echo chambers allow us to experience more day-to-day harmony. By feeding ourselves news and intellectual conversations that reinforce our beliefs, attitudes, and behaviors, we create a cycle that further exacerbates the certainty of our own perspective.

This makes the exploration of scientific information quite challenging, especially amidst our polarized national politics. Loud, soundbite-spewing voices are needlessly dividing conversations about our environmental, natural, and economic resources. With this backdrop, intelligent conversations about tradeoffs of energy development become nearly impossible…

I decided that COGA would create a voluntary baseline groundwater-sampling program. This was no simple feat. Under our voluntary program, whenever a company drilled a new well, it would take a groundwater sample from a nearby source before drilling, then take another sample one year later. It took months of work, but I ultimately got approval from my board. I then worked the phones for many more months until we had more than 98 percent of oil and gas operators in the state participating in the program.

The voluntary baseline sampling program was a clear success. It demonstrated that operators were willing to be proactive to assuage public concerns. A year later, the program would be codified as a state regulation with official COGA support. Today, tens of thousands of water sampling data are publicly available. The new mountain of data took the question of whether oil and gas development was systematically contaminating groundwater off the table. It was not.

The program, however, did nothing to resolve the conflicts around oil and gas development in Colorado. Public concern about oil and gas development quickly morphed into new issues. Initially, I was surprised. Each time one topic was resolved by a study or a new regulation, the next surfaced seemingly instantaneously. Now I understand the dynamic more clearly: Communities were concerned about fracking in their hearts and their guts, so they would find no shortage of new issues to worry about.

When I was in my early fact-splaining phase at COGA, a study from Cornell University came out declaring that gas was worse than coal in terms of carbon emissions. This study was a full-force slap in my environmental face. The tenuous ground on which I initially justified my defection to the oil and gas camp was the carbon and air quality benefits of natural gas compared to coal.

A research assistant and I went to work dissecting the study. We quickly ascertained that it was a wild exercise in hyperbole. The assumptions, methodology, and calculations were debunked by another Cornell scientist, a federal laboratory, and various other researchers.

That was 8 years ago, yet I continue to be told in both casual and formal conversations about natural gas that science has demonstrated gas is worse than coal. The long-debunked study is still loosely cited as the source of that information…

It’s hard to say who I continue my work for: the people in the industry who struggle to convey the importance and diligence of their work, or the people in Colorado who think the oil and gas industry is out to poison us all in the name of profits. I’ve gotten long letters from both. The most gratifying so far was a woman in her thirties who is a visible and vocal environmental advocate and opponent of fracking. She read the book I wrote about this topic, Accidentally Adamant. We share love for many things in our community, including my children, even as we have always avoided discussing politics.

She told me that the book put her in a quandary. She believed my explanation of energy requirements, tradeoffs, and the benefits of oil and gas. This alone had undermined a fundamental identity for her, a comfort that her tribe was on the side of righteousness. Not only did she need to look deeper at all her beliefs, she explained, but now she was also uncomfortable that she had been taking her previously held assumptions for granted, on which many tiny decisions are based.

Choosing to be open-minded and flexible, opening yourself to different sources that make you ache with discomfort, and finding commonalities with people you disagree with is not for the faint of heart. But whatever your tribe, whatever your starting place, whatever walls and rationalizations you carry, it is possible to move onto the uncertain ground of honest listening and learning that can result in lasting and meaningful change.

Read the whole thing but the message is that no amount of education by the best techs, or PR fluff approved by corporate counsel, ever substitutes for simply listening to the other side and hearing them out with an open mind. In fact, it’s been my experience that the changeable minds (as opposed to those of true believer types) have been fed a lot of malarkey financed by wealthy special interests who our opponents aren’t even aware are involved. The only way to break through that is to listen and patiently explain our own view while honestly respecting their’s and hearing them out.

Likewise, no amount of emotional ranting or use of meaningless slogans (e.g., “water is life” as if pollution was a given) accomplishes a thing in the end. Those with real responsibility seldom take that stuff seriously and the politicians only give it lip service for purposes of feathering their own nests. And, I’m still waiting for the fractivist who gives a damn about property rights or the economic struggles of landowners and rural areas. There’s a whole lot of listening needed in that arena.

Listening doesn’t mean many minds are going to be changed, and perhaps none will be in the moment, but over time things do tend to change and move inexorably toward common sense and the truth. And, yes, I’m absurdly optimistic, too.

The post Why Natural Resource Issues Are So Divisive and What to Do About It appeared first on Natural Gas Now.

https://www.shaledirectories.com/blog/why-natural-resource-issues-are-so-divisive-and-what-to-do-about-it/

Saturday, December 29, 2018

Natural Gas NOW Picks of the Week – December 29, 2018

Tom-1.jpgTom Shepstone
Shepstone Management Company, Inc.

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.

Texans for Natural Gas Celebrate, As Should We All

Texans get it. And, Texans for Natural Gas really get it. They put a holiday celebration piece that should bring cheer to all. Here are some of the 2018 happenings  to which they raised a glass:

  • Two months into 2018 and the United States was breaking production records left and right. Our environment was doing great too! By the beginning of March the United States had already met our 2025 Greenhouse Gas (GHG) reduction goal, thanks to increased natural gas use.
  • With liquefied natural gas (LNG) helpingicon-logo-256x125.png to make America a net exporter of natural gas for the first time in 60 years in January, a study released in April showed the massive economic benefits of increased LNG exports. According to the ICF study, “the cumulative contribution to US economic growth from the addition of more LNG plants will range from $716 billion to $1.267 trillion between 2013 and 2050″ and also projected “2-3.9 million job-years from US LNG plants during that period.”
  • review of the federal data showed that U.S. methane emission levels from associated gas venting and flaring during petroleum production declined 17 percent between 2013 and 2016, even as domestic oil production increased by 19 percent.
  • U.S. oil exports hit a record high in September, supported by the United States becoming the world’s largest oil producer that same month .
  • In October, federal data showed that the United States would account for half of global oil production growth by 2025 . That’s great news for us, but not for OPEC, as the Daily Caller reported that “ooming U.S. oil production is wreaking havoc on the Organization of Petroleum Exporting Countries’ (OPEC) influence on the international market.

Those Texans know how to have a good time!

What the DRBC Is Learning That Isn’t True

Perusing material for a post the other day, I came across the following slide from a presentation to the DRBC earlier this year by the Philadelphia Water Department:

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Notice the warning at the top about republishing without permission. This is a presentation given by one government entity to another and published on a government website for the whole world to see, but they want my permission to share it? Why?

Perhaps it’s the ridiculous projection that sea levels which have risen 0.64 feet (less than 8 inches over the last six decades) can be expected to rise 4.5 feet by 2080 or so over the next six decades. The DRBC is learning the rate of sea level rise could increase by a factor of seven? Give us all a break! Here’s what highly respected climatologist Judith Curry says, according to this Washington Times piece:

In her latest paper, Ms. Curry found that the current rising sea levels are not abnormal, nor can they be pinned on human-caused climate change, arguing that the oceans have been on a “slow creep” for the last 150 years — before the post-1950 climb in carbon-dioxide emissions.

“There are numerous reasons to think that projections of 21st-century sea level rise from human-caused global warming are too high, and some of the worst-case scenarios strain credulity,” the 80-page report found.

Her Nov. 25 report, “Sea Level and Climate Change,” which has been submitted for publication, also found that sea levels were actually higher in some regions during the Holocene Climate Optimum — about 5,000 to 7,000 years ago.

“After several centuries of sea level decline following the Medieval Warm Period, sea levels began to rise in the mid-19th century,” the report concluded. “Rates of global mean sea level rise between 1920 and 1950 were comparable to recent rates. It is concluded that recent change is within the range of natural sea-level variability over the past several thousand years.”

Can we please stop with the hysterics and just start dealing in facts, such the contributions of natural gas to reducing CO2 emissions? As for the DRBC, no wonder it’s such a disaster itself.

The Dark Side of Blue/Green Sunrise Movement

One of our faithful readers passed along a story about the “Green New Deal” being pushed by Alexandria Ocasio-Cortez, who seemingly hasn’t a clue about much of anything. The Atlantic has a story about how the new House of Representatives hopes to co-opt her idea and probably turn into a corporatist green energy scam with eventual trillions headed into the pockets of big-time Democrat donors with “clean energy” hedge-funds. Cortez is not mentioned, for obvious good reasons, but something called the “Sunrise Movement” is and they’re not happy:

“It’s a big disappointment,” says Stephen O’Hanlon, a spokesman for the Sunrise Movement, a Millennial-led organization that championed the Green New Deal plan. “The select committee on a Green New Deal was put together based on a hard look at what the science demands, and we were hopeful that Nancy Pelosi—who says she wants to take serious action on climate change—would be willing to come to the table for it.”

I’ve never heard of the “Sunrise Movement” and that’s always a sign that something is most likely an astroturfed enterprise of some sort. I did an internet search and easily found there was a web page. As soon as I went there I was slammed with a recurring donation request, which, of course, I declined. I was then asked for a one-time donation.This is no organic movement. It is, rather, one sleek money-raising propaganda machine designed to appeal to college students with mush for brains.

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Having learned over the years the best way to determine what or who an organization really is, is to start to make a donation and see where it goes, I initiated one. That took me here, where I learned the “Sunrise Movement” is actually Act Blue Civics, a multimillion dollar leftist funding apparatus. As usual nothing is as it’s made to seem. It’s all a coordinated effort to set the stage for yet another raid on the public treasury and the wallets of ratepayers to support economic and environmental foolishness intended to line the pockets of the ruling class.

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Monday, December 24, 2018

DRBC Fracking Opposition Is Intended to Distract from Real Pollution

Tom.jpg?resize=75%2C95Tom Shepstone
Shepstone Management Company, Inc.

 

DRBC fracking opposition rests on speculation of risks from spills. But, the real pollution threats are all downstream. Is the public just being distracted?

Earlier this year, I wrote a post asking “When Will the DRBC Stop Commercial Shipping on the Delaware?” I pointed out commercial shipping on the Delaware gets the benefit of the doubt when it comes to the very real risks of spills, but, “when it comes to fracking, though, the DRBC would have us believe any possibility of accidents whatsoever is a reason to halt any and all activity.” Yesterday, a reader sent me an article once again pointing out the real threats to the Delaware are anything but fracking. It raises a serious question; is DRBC fracking opposition just an attempt to distract the public from those real threats?

The title of the Inquirer article is largely self-explanatory; “‘Eye-popping’ 245-ton Illegal Dump Cleared Near Philadelphia Drinking Water Intakes.” After all, there is virtually no news release from either the DRBC or its handmaiden, the Delaware Povertykeeper, that doesn’t begin with a reference to the mythical 15, 17 or whatever million people who depend on the Delaware for drinking water. And, now after months of self-serving hyperbole about the non-existent threat to this supply, we learn there was an illegal dump “situated between two of the city’s three main sources of drinking water.” But, the DRBC and the Povertykeeper are talking fracking, which hasn’t had any discernible  impact on Susquehanna.

The illegal dump apparently didn’t amount to much either, but how is it possible it got no attention from the Queen of Obstruction or the DRBC aristocrats? After all, the Inquirer (like the Povertykeeper and the DRBC) is indebted to the Haas family foundations and it called the dump “eye-popping.” The only thing about fracking that is eye-popping is the shale revolution it spawned; a revolution that has delivered us from foreign energy dependence, brought economic prosperity, reduced energy costs and cleaned the air.

There was, too, this interesting observation in the article:

By state law, the Water Department must assess any threats upstream of the intakes to ensure no contaminants or chemicals get into the supply.

My thoughts naturally turned to whether there was reference in these assessments to either illegal dumps or fracking. I searched the Philadelphia Water Department website and found nothing much about illegal dumping although I did find a Marcellus Shale Drilling page. Most of it relates to positions taken in 2011 and 2013 which were largely reasonable, indicating the DRBC could have easily addressed the concerns of Philadelphia at that time. Why didn’t it do so?

The answer is obvious; they didn’t want to. They were already entangled with the Povertykeeper and the William Penn Foundation. Moreover, it was only after the DRBC announced it planned a fracking ban that Philadelphia jumped on board to support it, proving water quality has never been at the heart of DRBC policy on fracking.

Then, there is this 2015 presentation regarding the Philadelphia Water Department’s “Delaware Valley Early Warning System.” Interestingly, it makes no mention of fracking but it does say the natural gas industry could make use of the system; another indication the city was prepared to deal with any perceived risk from fracking and it is only the DRBC that demands a ban. It also addresses real pollution threats, using this slide to illustrate some of the incidents that have occurred:

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Cynanide? What? Yes, here’s the story (emphasis added):

It took Merck & Co. Inc. a week to discover and report a cyanide-related discharge that killed at least 1,000 fish in the Wissahickon Creek and prompted closure of Philadelphia’s water-intake valves.

The Environmental Protection Agency said yesterday that a Merck representative first notified the agency of the spill on Tuesday.

According to the EPA, a Merck official said that a week earlier, on June 13, a vaccine-research “pilot plant” had released about 25 gallons of potassium thiocyanate into the sewer system. The substance is commonly used in making vaccines and antibiotics and should not have been discharged into the sewer system, authorities said. They suspect the chemical combined with chlorine at the sewage-treatment plant and became more toxic to fish.

Merck now faces a continuing probe by state and federal officials, and some anger from the community.

And, the DRBC and the Povertykeeper are worried about fracking 100 miles upstream that has proven to have no discernible impacts on the waters of the Susquehanna? How can anyone take these entities seriously? Their agenda isn’t water quality; it’s stopping oil and gas development that would make it more difficult to do land grabs and make a wilderness out of the Upper Delaware. Everything else is a distraction.

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Tuesday, December 18, 2018

The Incredible Shrinking Credibility of the Climate Movement

Tom.jpgTom Shepstone
Shepstone Management Company, Inc.

The climate movement has become utterly ridiculous; driven by corporatists and ideologues who refuse to acknowledge anything that doesn’t fit their template.

I’m sick to death of the climate movement, by which I refer not to the cause per se but, rather, those who advocate for it on ideological grounds. They’ve chosen to ignore the real progress made toward achieving their supposed goals, reject debate and antagonize everyone who might actually make a difference. They’ve become serious demagogues and just as unserious about the facts. They’ve not only lost all credibility, but have become utterly laughable.

I’m old enough now to have lived through several predictions of environmental doom. The purveyors of this “eve of destruction” theme come at us regularly, issue one forecast after another that is never realized and are seldom held to account. I’ve learned enough at this point to know they’ll always be with us.

No amount of facts, history or logic will change that; there’s just too much emotional investment and too many special interests involved. Human nature is human nature and it isn’t pretty. Nonetheless, the truth eventually outs as those who buy into the fear and the distortions invariably take things too far and illustrate the emperor has no clothes. That’s the tipping point and it looks like we’re about there.

A sure sign of this is the yellow jacket resistance to climate movement fuel taxes France just proposed. Ironically, it did so in the weeks leading up to the big elitist climate meeting in Poland that virtually no one took seriously, providing a sharp contrast between fantasy and reality.

The climate movement is built upon a foundation of fantasy and deliberate ignorance when it comes to reality, of course. The fantasy is a virtual font of failed predictions because it is based on models invariably adopting the worst case assumptions, which is the first indication there’s something more than science going on. There is also a whole lot of evidence to the contrary. Take, for example, this wonderful video by our friend and guest blogger, Greg Wrightstone, the author of Inconvenient Facts:

Greg’s book is filled with stuff like this and is one of several I’ve read on the subject. His is the most readable and the best illustrated. I highly recommend it. Subscribe to his YouTube channel, too. I just did.

Having said that, I don’t reject the possibility there is some human impact on climate change. I tend to hold to views of scientists such as Judith Curry who acknowledges there could well be, but doesn’t get hysterical about it, choosing, instead, to put things in the proper context. That means continued research, thoughtful discussion and a search for policies we can all agree upon.

Surely, one of those policies should be natural gas development. It is low cost, it involves much lower CO2 emissions than either coal or oil and it stimulates real economical development in the areas where it is produced and huge consumer savings in the areas where it is consumed. It has achieved more dramatic reductions in not only CO2 but all emissions, improving air quality dramatically. The U.S., simply because it has not stood in the way of fracking, has done more to reduce greenhouse gas emissions than anyone, in fact, as the following chart (assembled from EIA data) demonstrates:

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The data is incontrovertible; as natural gas production via fracking has soared, CO2 emissions have plummeted. Yet, the climate movement insists on ignoring it and exaggerating the threat of global warming. It is so thoroughly committed to the apocalyptic vision of a melting Earth that it insists on shutting down the speech of anyone who disagrees. It generates incredible amounts oh heat itself, in fact, putting out increasingly bizarre theories and predictions. Take, for instance, a story yesterday in the New York Times, entitled “Would Human Extinction Be A Tragedy?” Here’s the salient quote (emphasis added):

There are stirrings of discussion these days in philosophical circles about the prospect of human extinction. This should not be surprising, given the increasingly threatening predations of climate change. In reflecting on this question, I want to suggest an answer to a single question, one that hardly covers the whole philosophical territory but is an important aspect of it. Would human extinction be a tragedy?

This is the view of a professor of philosophy at Clemson University. Tuition and board at Clemson costs $50,516 per year, so don’t send your kids there. They’ll only learn to conform to a political correctness insisting not only that global warming is marauding threat but the Earth itself is worth more than the humans who inhabit it. Talk about self-hate! Todd May, the author of this claptrap, drivel that could only impress elitists worried about the masses threatening his own way of life, needs to get a grip.

Such is the nature of so much of the climate movement. It is impossible to take it seriously anymore. Enough with the endless spinning of doomsday scenarios based on little or nothing. Enough with the attempts to intimidate the speech of others and squelch it. Enough of the no-compromise, my way or no way, global warming politics. Enough of the corporatist schemes from the likes hedge funds types such as Nat Simons and Tom Steyer who but seek to add to their vast wealth and collections of houses by promoting green energy scams.

I’m sick to death of them. If they gave a damn about global warming, they’d be reasoning with us and admitting natural gas is part of the solution if one be needed. That they aren’t willing to do so tells me the climate movement isn’t about global warming at all. It’s about power, money and a substitute religion adopted by true believers. That and nothing more. Meanwhile, natural gas is reducing emissions across the board proving, yet again, that no good deed goes unpunished.

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Friday, December 14, 2018

Shale Revolution Expands with Growing US LNG Exports and Capacity

Tom.jpgTom Shepstone
Shepstone Management Company, Inc.

LNG exports are growing along with the capacity to expand them even further down the road. LNG exports are the next exciting phase of the shale revolution.

Today In Energy had a post on Monday that provides yet another example of the power of the shale revolution. It’s all about growing US capacity to do LNG exports. Those LNG exports are the future; helping to lift poorer nations abroad, as well as rural areas at home, out of poverty while cleaning the air.

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Note: Each square represents one LNG train, with the exception of Elba Island, which will deploy 10 small-scale modular liquefaction units sequentially in two phases.

The story is focused on the growth in LNG exports capacity; the number and size of terminals from which we can ship the gas produced here to countries needing it abroad, not to mention places such as Boston where they’d rather shiver, pay through the nose or buy Russian gas than have a pipeline. The Energy Information Administration (EIA) provides the basics:

EIA projects that U.S. liquefied natural gas (LNG) export capacity will reach 8.9 billion cubic feet per day (Bcf/d) by the end of 2019, making it the third largest in the world behind Australia and Qatar. Currently, U.S. LNG export capacity stands at 3.6 Bcf/d, and it is expected to end the year at 4.9 Bcf/d as two new liquefaction units (called trains) become operational.

The United States began exporting LNG from the Lower 48 states in February 2016, when the Sabine Pass liquefaction terminal in Louisiana shipped its first cargo. Since then, Sabine Pass expanded from one to four operating liquefaction trains, and the Cove Point LNG export facility began operation in Maryland. Two more trains—Sabine Pass Train 5 and Corpus Christi LNG Train 1—began LNG production this year, several months ahead of schedule, and are expected to ship their first cargos within the next few weeks.

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Cove Point

Two more LNG export facilities—Cameron LNG in Louisiana and Freeport LNG in Texas—are currently being commissioned. Commissioning of liquefaction facilities involves introducing natural gas feed into the train and ultimately producing LNG. For liquefaction terminals, which use refrigeration to cool natural gas into liquid form, commissioning also includes getting the equipment and refrigerants down to sufficiently cold temperatures. The first LNG production from these facilities is expected in the first half of 2019. The developers of these projects expect all three trains at Cameron LNG and two trains at Freeport LNG to be placed in service in 2019.

The Elba Island LNG facility near Savannah, Georgia, is also scheduled to become fully operational by the end of 2019. Elba Island LNG consists of 10 small modular liquefaction units with a combined capacity of 0.33 Bcf/d. Project developers expect LNG production from the first train to begin early next year and from the remaining nine trains to commence sequentially through the rest of 2019. The second train at Corpus Christi LNG is scheduled to be placed in service in the second quarter of 2019. The final two trains of the U.S. liquefaction projects currently under construction—Freeport Train 3 and Corpus Christi Train 3—are expected in service in the second quarters of 2020 and 2021, respectively.

Four additional export terminals—Magnolia LNG, Delfin LNG, Lake Charles, Golden Pass—and the sixth train at Sabine Pass have been approved by both the U.S. Federal Regulatory Commission and the U.S. Department of Energy, and they are expected to make final investment decisions in the coming months. These proposed projects represent a combined additional LNG export capacity of 7.6 Bcf/d.

U.S. LNG exports continue to increase with the growing export capacity. EIA’s latest Short-Term Energy Outlook forecasts U.S. LNG exports to average 2.9 Bcf/d in 2018 and 5.2 Bcf/d in 2019 as the new liquefaction trains are gradually commissioned and ramp up LNG production to operate at full capacity.

Yet again, it’s unstoppable natural gas. We are, in fact, living in the golden age of natural gas.

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Thursday, December 13, 2018

Bradford County LNG Plant Yet Another Example of Unstoppable Natural Gas

Tom.jpg?resize=75%2C95Tom Shepstone
Shepstone Management Company, Inc.

If further proof were needed of unstoppable natural gas, a new Bradford County LNG Plant shows increased demand for shale gas is producing rural revitalization.

A little story in the Rocket-Courier the other day provides still more evidence how natural gas, and especially the shale revolution here in Pennsylvania, is changing everything and producing real economic opportunity for rural America. A new $800 million Bradford County LNG plant is being developed in Wyalusing that will allow LNG to made locally and shipped by truck and maybe rail to other areas (New England comes to mind) needing gas and previously unable to get it. The result will be real savings for gas customers and real economic development here at home.

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Source: New Fortress, LLC.

Here are a few excerpts from the story by James Loewenstein:

On Thursday, Nov. 29, the Wyalusing Township Supervisors approved two conditional use permits that New Fortress Energy, LLC needs to construct its proposed $800 million plant in Browntown, which would convert locally-produced natural gas to liquefied natural gas (LNG).

“It was a pretty impressive presentation that they (New Fortress Energy) made” on why the company ought to be awarded the permits, Township Supervisor Chairman Marvin Meteer said following a three-hour public hearing on the company’s proposal to construct the plant. “What we’re doing here is to see that they (New Fortress Energy) went through (and met) all the requirements in the zoning ordinance. Their presentation achieved, in my opinion, what they were supposed to do (in making their case for the permits).”

The hearing took place in the Wyalusing Township Municipal Building, just before the supervisors voted unanimously to grant the permits.

During the hearing, three area residents spoke about why they were for or against the plant, which would be constructed on 40 acres of a 219-acre tract of land along U.S. Route 6 that the company recently purchased.

New Fortress Energy, a large company, has a “record for safety and reliability that is pretty outstanding for the size of the company,” Greater Wyalusing Chamber of Commerce President Jeff Homer testified at the hearing.

The 50 full-time jobs the plant would bring to the township would be a “huge impact on a small community like ours,” said Homer. And the large amount of school property taxes that the company would pay would help the Wyalusing Area School District, which, due to a lack of funding, has in recent years eliminated employee positions and made cuts in other areas, including to its arts programs, Homer said…

The plant will process locally produced natural gas that is taken off the Liberty Gathering System, which is owned by Williams, a company in the natural gas industry that owns pipelines, McElmurray said during New Fortress Energy’s presentation on its proposed plant, which was part of the public hearing.

The gas will arrive via pipeline at the plant.

The processing at the plant involves removing the heavier hydrocarbons from the gas, such as ethane, propane and butane, McElmurray said. The plant will also remove certain other impurities from the gas.

The gas will then be cooled so that it forms a liquid (LNG), which has 1/600th the volume of the gas, he said. Converting the gas to LNG will allow it to be transported by truck or rail…

The plant will produce up to four million gallons of LNG a day, and will have on-site storage for six million gallons of LNG.

This new Bradford County LNG plant demonstrates why natural gas is unstoppable. If the NRDC gang imagines it can stop natural gas from reaching New York and New England by enticing Andrew Cuomo to kill fracking and delay pipelines, the industry will simply convert it to LNG here and ship it there by truck or rail. The gas will get to where it’s demanded. That’s how innovation works. Fractivists and their demagogue patron Andrew Cuomo may think they’ve erected a great barrier to natural gas but they’ve stopped neither demand, nor ingenuity at finding ways to meet it.

The gas will arrive one way or another to those who demand it. This is how free markets work. Only the fools who supposed they could stop it will be frustrated in the end.

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Monday, November 26, 2018

Making the Environmental Case for Natural Gas Is Simply Imperative

DMARKIND.jpg?resize=72%2C100Daniel B. Markind, Esq.
Flaster Greenberg PC

 

Dan Markind says the natural gas industry has a good hand environmentally, but needs to do a better job of making the environmental case for natural gas. 

On Black Friday, the Trump Administration released Volume II of the National Climate Assessment. Running 1,600 pages, the report is the second volume of the fourth National Climate Assessment, which was mandated by Congress in the late 1980’s and is required to be prepared every four years by scientists from 13 designated government agencies. It is being referred to as NCA4 Vol. II.

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According to initial press headlines, the warnings contained in NCA4 Vol. II are dire. They include:

  • The “earth’s climate is now changing faster than at any point in the history of modern civilization, primarily as a result of human activities.”
  • Average sea levels along the United States coast have increased by about 10 inches since the early 20th century as the oceans have warmed and land ice has melted.
  • More than 100 million people in the United States live in places with poor air quality – and climate change will “worsen existing air pollution levels.”
  • Climate change will “disrupt many areas of life” by affecting trade and exacerbating overseas conflicts.

It is conceivable the initial press reports will turn out to be exaggerated and the actual language in NCA4 Vol. II is more nuanced than what has been reported. This Update specifically is being written before full examination of the 1,600 pages can be made, although we will certainly correct any errors or omissions in what the press has written about the Assessment as soon as a more fulsome review of the report is possible.

However, for most members of the public, the press reports may be the only information that they will ever receive about the Assessment because it is unlikely that most people will take the time to pore over 1,600 pages of dense text. They will only remember headlines like those listed above.

Whether fair or not, this is the environment that the natural gas industry finds itself in during 2018. It must adapt to that reality. While the industry can, and should, pick apart reports and assessments, including NCA4 Vol. II, to the extent that they contain erroneous data or jump to conclusions unwarranted by the evidence, the industry must realize the impact that the overall public mindset has on national, state, and local energy policy and initiatives.

To that end, the industry needs to recalibrate its message. For too long, what little public relations the industry as a whole has engaged in has concentrated almost only on the economic benefits of natural gas to consumers. While certainly not inaccurate, that overly simple message no longer will carry the day. The economic argument now is framed as: “We all can spend $X for energy which will destroy our planet, or we can spend $X time Y and save our planet. Nobody likes paying higher costs for anything, but if it will save our children’s futures, why shouldn’t we do it?”

It is imperative for the industry now to do two things. First, it must concentrate on the environmental case for natural gas, both over other fossil fuels and until so-called renewable energy becomes more universally available. The natural gas industry has a terrific story to tell, but it needs to tell it. The public does not know what the industry has not told it. America leads the world in greenhouse gas reductions since the fracking revolution. We’re producing massive new quantities of oil and gas, yet our greenhouse gas emissions have dropped over 10% to levels not seen since the 1980’s.

There is no harm in admitting that natural gas may not be the be all and end all of energy use to save the planet, but as a bridge fuel it is unsurpassed. If, as NCA4 Vol II states, we must do something positive fast for the environment to lessen any climate change impacts, there is no better way than to build out the natural gas pipeline infrastructure. This will allow the massive switch from coal to natural gas to occur as quickly as possible.

Second, the industry must point out, gently, that currently there is no feasible alternative. All proposals to power our economy via renewables still are speculative at best. Even if it can be done, we are decades away from a realistic plan to power the world with net neutral sources. Germany is a great example of this. In 2010 it refined its renewable energy policy to limit most, if not all, power projects not involving renewables.

Despite this, over the last few years, German carbon emissions have increased, not decreased. Now, desperate for energy, Germany is helping the Russians build a new pipeline directly to Germany and it is involved with Dow Chemical to erect a new liquefied natural gas power plant in Strade. Good intentions are one thing. NCA4 Vol. II makes it clear they are not enough.

If the industry truly believes in itself and what it’s doing, it should take up the challenge. Engage on the playing field where the battle is taking place. Target our message to the mindset of the audience, and don’t be afraid to amid there are things we don’t know. Despite NCA4 Vol. II’s warnings, fossil fuels will be with us for decades more, at least. Wishful thinking about promoting more renewables will not change that stark reality.

Until such time as renewables can effectively and completely power our modern economy, we all will benefit from clear headed policies that encourage increased natural gas development, transportation and usage while simultaneously establishing a priority to develop and implement a nationwide renewable energy strategy. Isn’t that really what we all should want?

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Daniel B. Markind has over 35 years of experience as a real estate and corporate transactional attorney. During that time, he has represented some of the largest companies in the United States in sophisticated purchase, sale, financing, leasing, zoning and land use, workout and development matters. .

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Saturday, November 24, 2018

Natural Gas NOW Picks of the Week – November 24, 2018

Tom.jpg?resize=75%2C95Tom Shepstone
Shepstone Management Company, Inc.

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.

The Musky Odor in Buffalo

Elon Musk is the world’s most successful con man, it appears:

Tesla’s efforts in solar, recounted here based on interviews with more than two dozen current and former employees familiar with the company’s energy business and workers at its New York factory, have followed a familiar playbook. Start with wild promises, followed by product delays, production hell, shareholder anger, and finally, hopefully, redemption…

New York had gone all-in on the SolarCity factory in 2014, initially hoping the partnership would generate 1,460 manufacturing jobs at the plant, a goal the state cut to 500 in 2015, with the remaining workers in support roles within the city of Buffalo. It was a risky investment: SolarCity was an installation-and-financing company with little track record in manufacturing…

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Where so much of the Buffalo Billion went; to this SolarCity (now Tesla) plant as Elon Musk now struggles to clean up his cousin’s mess and defend his corporatist subsidies

Workers for Tesla’s own Solar Roof production line, which was set up at the end of 2017, were warned there might be days when they would have nothing to do. When VIPs would come by in early 2018, a source says, the company would map out a tour that put the facility in its best light, which often included focusing on the Panasonic side of the operation. For the factory tour Tesla gave Bloomberg Businessweek in mid-November, a knowledgeable source says the company erected a wall inside the building to block much of its idle machinery from view. Tesla says certain parts of the factory contain confidential operations and that the new wall is part of a storage area for unused equipment…

Across the street from Gigafactory 2 is a tidy, gable-front home owned by Carol and Gerry Grandy. They’ve been in the neighborhood for 26 years and say they were excited for what Tesla would mean for the community. But it hasn’t worked out. A nearby fish-and-chips shop opened but soon shuttered, and they say there are few other signs of economic improvement. Gerry called Tesla to inquire about getting solar installed on their roof but was told their home wasn’t in a service area. “I said, ‘Are you kidding me? I could throw a rock and hit your factory,’ ” he recalls.

It particularly irks the Grandys that Musk still hasn’t been to Buffalo after all these years.

Perhaps there’s a reason musk hasn’t been to Buffalo. Has that occurred to anyone?

Will the Pennsylvania Supreme Court Straighten Out This Mess?

As our friend Jim Willis, at the invaluable Marcellus Drilling News notes, the case of Briggs vs. Southwestern, horribly decided by the Pennsylvania Superior Court, is now on its way to the Pennsylvania Supreme Court. What happens there, he says “opens the door to a myriad of frivolous lawsuits claiming that a fracture, a crack created during fracking, is draining gas from a neighbor’s property without justly compensating the neighbor for the gas.” The issue before the court is, by its own interpretation, as follows:

”Does the rule of capture apply to oil and gas produced from wells that were completed using hydraulic fracturing and preclude trespass liability for allegedly draining oil or gas from under nearby property, where the well is drilled solely on and beneath the driller’s own property and the hydraulic fracturing fluids are injected solely on or beneath the driller’s own property?”

The PA Environment Digest Blog concisely explains the background:

The PA Superior Court ruling overturned the rule of capture practice that has been in place for as long as companies have been drilling for oil and gas and developing natural resources.

Members of the Briggs family own about 11 acres of land adjacent to an unconventional natural gas well operated by Southwestern Energy since 2011 in Harford Township, Susquehanna County.

The Briggs family did not lease their mineral rights to Southwestern for development.

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Southwestern Energy argued and a lower court agreed there was no trespass because of the “rule of capture.” Rule of capture means the first person to capture a natural resources owns that resource under English common law. It can be applied to groundwater or natural resources like oil and gas.

The Court ruled prior cases involving the rule of capture do not apply to unconventional natural gas drilling because hydraulic fracturing is not the same as oil and natural gas freely migrating from a reservoir and across property lines.

The importance of this case cannot be overstated and that’s the reason, of course, the Supreme Court took it. The rule of capture is what allows a company and landowners who leased to it the ability to harvest the value in their resources with the security of knowing that if they stay on their own land they won’t be harassed by lawsuits claiming they stole some else’s gas. The Superior Court was out of its depth on this one and we can only hope the Supremes clean up the mess. Meanwhile, Southwestern says this:

“We appreciate the court’s thoughtful decision to review this ruling, especially given the case’s potential to negatively impact Pennsylvanians who depend on natural gas for royalty payments, jobs and affordable energy. Bringing legal clarity and certainty to this potentially far-reaching matter – while avoiding pitting neighbor against neighbor in costly and speculative legal disputes that could unnecessarily overburden our courts – are top priorities for Southwestern Energy.”

Amen to that!

Ireland Going Green? Yes, Except That It’s 95% Off-Target!

Ireland banned fracking last year in an attempt to make their neighbors green with envy over their political correctness. Now, we learn this:

“Ireland had agreed to reduce greenhouse gas emissions by 20 per cent below 2005 levels. While Ireland has jointly the most demanding targets (the EU average is 10 per cent), Ireland is far off course. Current projections suggest we might achieve a 1 per cent reduction, meaning we would be 95 per cent off target.”

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Irish blarney; it’s not just for Leprechauns.

During the recession, when output in the economy collapsed, Ireland was meeting its climate targets, he said. However, “once economic growth resumed, growth in carbon resumed, highlighting the very significant structural issues which still exist within the economy in terms of reliance on carbon”.

Ireland will need to purchase compliance in order to meet the 2020 targets.

Have the Irish gone mad? It appears so. It seems they were happier when they were miserable and experiencing no growth. Now that their best laid plans to reduce carbon have failed, in contrast with the US where fracking has delivered the lowest carbon emissions per capita in decades, they are going to resort to blarney and pay someone else to do compliance for them. Amazing…just amazing. The next time I’m stopped for a traffic ticket, I think I’ll offer to buy compliance from a slower driver.

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Monday, November 12, 2018

Shale Gas News – November 10, 2018

desRosiers_headshot.jpg?resize=75%2C85Bill desRosiers
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 the Colorado election, Keystone XL Pipeline, Blue Racer Midstream 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 a guest, we had Joe Peters, former Scranton Police Officer, PA State Crime Commission and political analyst.

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The Shale Gas News, typically, is broadcast live. On the November 10th show (click above), we covered the following new territory (see news excerpts below):

  • In Washington, politics around oil, climate change in flux. WASHINGTON — After almost a decade of oil-friendly Republicans controlling Congress, the energy sector faced a dramatically different political landscape Wednesday.  Where Republicans pushed an end to the oil export ban and the relaxing of environmental regulations around drilling, the new Democratic-led House is expected to be more interested in combating climate change than boosting oil and gas production.
  • Colorado Rejects Anti-Drilling Initiative in Divergent Midterm Elections. Colorado voters on Tuesday decisively rejected Proposition 112, which threatened nearly all drilling locations for some of the state’s leading producers, in what proved to be one of the most consequential political battles to confront the oil and gas industry this election season.  The win in the West came amid broader midterm gains for Democrats. The party took back control of the House and several governors’ offices across the country, including in New Mexico, where booming oil and gas development in part of the Permian Basin could be affected by the political shift.
  • Federal judge blocks Keystone XL pipeline, saying Trump administration review ignored ‘inconvenient’ climate change facts. A federal judge temporarily blocked construction of the controversial Keystone XL pipeline, ruling late Thursday that the Trump administration had failed to justify its decision granting a permit for the 1,200-mile long project designed to connect Canada’s oil sands fields with Texas’s Gulf Coast refineries.
  • Dominion Sells Its 50% Share in Blue Racer Midstream for $1.5B. In September, MDN told you that Dominion Energy had sold two “merchant” (non-regulated) natural gas-fired electric generating plants for $1.23 billion to Starwood Energy. And at the same time, Dominion announced it was shopping its 50% ownership stake in Blue Racer Midstream. The sale of the power plants and potential sale of Blue Racer is aimed at helping Dominion pay down debt. The Blue Racer sale is no longer a potential, but a reality.
  • 15 Candidates Running for PA House/Senate Want to Ban Fracking. The left-most contingent in the Pennsylvania Democrat Party wants to ban all fracking in the state. It’s fringe, but all such oddball movements start out as fringe. Of particular note in this election season is that a group of these ban-fracking nutters have gotten themselves on the ballot in 15 PA House and Senate races around the state. As you might expect, most of the ban-frackers are running in counties in the Philadelphia orbit (Delaware, Chester, Montgomery, Philly itself). There are some from outside (but still close to) Philly, in Northampton and Carbon counties.
  • Did Shale Well Methane Migration Cause SWPA Home to Explode? On Wednesday a man in Clarksville (Green County), PA turned on his gas stove and it exploded, catching fire to and leveling the entire house. The man, his girlfriend and young child were helicoptered to a hospital burn unit. The working theory/assumptions are (a) the man didn’t smell mercaptan, therefore the source of the gas that exploded was not from the stove or line into the house itself, and (b) because there is an EQT shale well “across the street” and a gathering pipeline that runs “next to the house,” methane “may have” migrated from the shale well to the home, or methane leaked from the gathering line into the home.
  • Shakeup: Gulfport CEO Michael Moore Fired, Interim CEO Appointed. Last week Gulfport Energy, an independent oil and gas driller with significant acreage positions in the Utica Shale of eastern Ohio and the SCOOP Woodford and SCOOP Springer plays in Oklahoma, issued its full third quarter 2018 update. Gulfport previously issued an operational update several weeks ago. Gulfport didn’t issue the full update, with financials, until last week. Perhaps we now know why: the company canned their CEO, Michael G. Moore, following allegations that he used a company credit card, and the company chartered jet, for personal uses. Gulfport appointed COO Donnie Moore (no relation to Michael) to be interim CEO while they figure out next steps.

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The Shale Gas News sponsored by Linde Corporation

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