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A Saudi Royal Talks About Oil … Independence
It’s not often that a member of the Saudi royal family agrees with me, but in January I posted a blog that said “energy independence” wasn’t feasible and claiming America could achieve it wasn’t desirable. And now Saudi Prince Turki al-Faisal, a former Saudi ambassador to Washington DC, has told editors and reporters at The Washington Times the exact same thing.
“Politicians, when they do that (claim energy independence is achievable), I think they are misleading their publics,” Prince Turki said.
He is right, and while many people will think Prince Turki is being self serving – the Saudis are, after all, the world’s largest oil producers – the fact is that the American public would not stand for the energy price increases that would result if we somehow managed to quickly wean ourselves off of oil or natural gas imports and relied on renewable energy as our dominant energy supply source. Currently renewable energies such as wind and solar – which are far more expensive than the three major fossil fuels, coal, oil and natural gas – meet about 2 percent of our domestic energy needs.
But the larger point is that energy independence is the wrong goal. Energy security is the proper goal and to achieve that we need more, not less, diversity of supply. That means we need as many kinds of energy supplies as possible, including more liquefied natural gas (LNG), and we need as many suppliers as possible. In other words, to achieve energy security, we need to establish a global energy industry in which as many buyers interact with as many sellers as possible.
Another problem is that when our politicians talk about achieving “energy independence,” it isn’t just the public they mislead. It is also the suppliers. In an interview with American Gas magazine, global energy expert and Pulitzer Prize-winning author Daniel Yergin points out that, on the one hand our political leaders continually encourage energy producers such as the Saudis to increase their energy production and exports, while on the other hand these same politicians keep talking about energy independence. “That is a confusing message for energy-producing nations,” Yergin says.
He is right, too.
A Saudi Prince, a Pulitzer Prize-winning author and me. Some days (to coin a phrase) this job is a “gas.”
Natural Gas Market Indicators
Natural gas cash and prompt-month prices have been reasonably stable for the past month (about $3.50 per MMBtu). While analysts debate market expectations for the summer, what seems to be agreed upon by many are stubbornly solid domestic production, a strong underground storage position and an uptick in LNG imports on the supply-side along with an economy that is not yet ready to support a surge in large volume customer demand.
What makes the current situation more interesting is that it comes at a time when Congress is beginning the debate on energy policy and climate change – and what a debate. Whether you are reading the paper or listening to the radio, you can’t escape the energy discussions that point out the seemingly boundless wind and renewable opportunities. However, where is natural gas in the debate?
Expanding natural gas in home and business direct use applications, in transportation and even in power generation would significantly reduce the nation’s carbon footprint. Technologies for producing, delivering and using the fuel efficiently are here today – and are here now – with no heroic assumptions necessary. So where is reliable and secure natural gas in the national debate?
Visit this link to download the full Natural Gas Market Indicator. Topics covered include: Reported Prices, Weather, Working Gas in Underground Storage, Natural Gas Production, Rig Counts, Pipeline Imports and Exports, and LNG Markets.
Residential natural gas efficiency effort underway in New York
As energy efficiency begins to take center stage in federal legislation (the premier example being the Waxman-Markey draft bill currently under consideration in the House), it’s easy to forget that on matters of climate and energy states have long been the leaders in implementing energy efficiency solutions, and utilities have been at the forefront in partnering with regulators and customers to deliver energy efficiency gains. These efforts are really ramping up – even prior to the infusion they stand to receive from the stimulus funds.
A great example of state-level energy efficiency activity was recently announced by the New York State Public Service Commission (NYPSC). As part of its Energy Efficiency Portfolio Standard (EEPS) proceeding, the Commission has approved a natural gas efficiency equipment program for its nearly 4.3 million residential gas customers. Under this action, more than $24 million will be made available for rebates promoting the purchase and installation of efficient, cost-effective, furnaces, boilers and other equipment. This is great news for consumers, as it will provide a direct financial incentive to improve energy efficiency in their homes – savings that come in addition to the money they will save over time in reduced energy costs.
The action taken by the NYPSC recognizes the important role local utilities will continue to serve in delivering energy savings to residential customers.
The utilities participating in this initiative include Central Hudson Gas and Electric Corporation, Consolidated Edison Company of New York, Inc., Corning Natural Gas Corporation, KeySpan Energy of Long Island, KeySpan Energy of New York, New York State Electric and Gas Corporation, National Grid, Orange and Rockland Utilities, Inc., Rochester Gas and Electric Corporation, and St. Lawrence Gas Company.
True Blue Natural Gas Blog from the American Gas Association (AGA)- Diversification of natural gas supply is an essential consumer protection
- From Austin to Boston in a natural gas vehicle
- Natural gas, how about zero carbon emissions
- The real natural gas message in a climate crunch
- Let’s work together to protect our seniors
- Natural Gas Market Indicators
- Coming Down To Earth on a ‘Clean Energy’ Standard?
- The convenience of the natural gas fireplace
- Coming Down To Earth, A Winning Strategy For Renewables
- Energy Secretary Chu Identifies Natural Gas as Key to a Low-Carbon Future
