Monthly Archives: December 2009

Dave Parker Can Obama Satisfy The World And Congress?

nationaljournalblog2 Can Obama Satisfy The World And Congress?My latest comment from the National Journal’s Energy and Environment Experts blog.

Creating a Practical, Doable Solution

As an issue, climate change – regardless of how people choose to define it – probably sits near the top of every major government’s to-do list.  In a perfect world, that fact alone should be enough to spur into action the world leaders currently gathering in Copenhagen.

We do not, however, live in a perfect world.  We live in a world where climate change, although a very important issue, is one of many facing policy makers with limited time, limited budgets and an expanding portfolio of pressing concerns.  What can President Obama do to satisfy the world and express in action America’s commitment to addressing the probable effects of climate change?  First and foremost he can look to his own country and its rich supply of innovation, creativity and domestic low-carbon resources.

The United States is home to many of the world’s leading alternative energy and carbon-neutral researchers, creative thinkers and entrepreneurs.  Some are academics seeking to develop low-impact resources for idealistic reasons while others are traditional energy companies looking to capitalize on the green energy market.  Both should be encouraged, because fundamentally shifting the very concepts of energy and energy supply will be an expensive and a long journey.

There is no “app” for clean energy, but there is a strategy and, given time, it will likely bear fruit:  (1) continue to invest in energy efficiency technologies; (2) support and encourage alternative power generation sources such as nuclear, solar, wind, bio fuels and hydro; and (3) intelligently develop existing, domestic low-carbon resources such as abundant, clean natural gas.

The practical task of changing how electricity is generated and used will not be achieved through some panacea, but through the intelligent coordination of multiple, scalable solutions which will take time and significant resources to reach.  Natural gas is a major part of the solution, but we need to be realistic about what it will take to get to that carbon-neutral future and what the real costs entail.

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Pam Lacey A Climate of Change

Now that the die is cast for the talks in Copenhagen, and the Senate is focused on health care reform, we have a short time out on climate change legislation.  Let’s hope that gives everyone a chance to think about how to craft a climate program that can really work.

Among other things, I would like to see the energy and climate legislation include provisions to ensure that energy efficiency standards for appliances and homes will really improve energy efficiency and reduce greenhouse gas emissions – and not be counterproductive window dressing.

To be effective, we need to measure energy efficiency and carbon footprint on a life cycle “source energy” basis.  This is the approach recommended by the National Academy of Sciences report and supported by the National Resources Defense Council (NRDC) in its joint statement with AGA.

They agree that it makes no sense to burn natural gas at a power station to serve consumer needs that can be served more efficiently through “direct use” – i.e. by burning the natural gas directly in the home in efficient natural gas furnaces and water heaters.

You have to combust  two to three times more natural gas (!) – and emit two to three times more carbon dioxide – to deliver the same number of hot showers and warm homes in electric resistance appliances.  And that does not even take into account the emissions resulting from electric appliances served by coal-fired power plants.  Source energy is an idea whose time has come.

Want to know more?  See my article “A Climate of Change” in this month’s American Gas magazine.

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Mike Pomorski Natural Gas Market Indicators

091215.ngmi .sm  Natural Gas Market Indicators

The large weather system sporting snow and cold that covered two-thirds of the United States last week pushed seasonal demand to over 100 Bcf for a single day on December 10, which is relatively early in the winter heating season for a peak demand day.

Fortunately, the country was well-prepared for the event with storage bursting at the seams and with production, imports from Canada and LNG responding to market requirements. In the middle of the storm, energy commodity prices for natural gas, oil and coal actually declined after the initial reaction to the coming weather event, then bobbed up and down in relatively narrow bands.

Price movements during the storm generally confirm a strong supply position for winter heating season fuels, in general.

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.

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Dave Parker Do Hacked E-mails Change Climate Debate?

nationaljournalblog2 Do Hacked E mails Change Climate Debate?
My latest comment from the National Journal’s Energy and Environment Experts blog.

Natural Gas Already Thinking Ahead

There is little doubt that the University of East Anglia’s e-mails provide fodder for those who oppose or even question the legitimacy of climate change. The apparent machinations brought to light by these justifiably scandalous e-mails do indeed cast doubt on the objective sincerity of some scientists. And they may very well draw into question these experts’ contributions to the objective debate surrounding global climate issues and of humanity’s contributing role.

Nonetheless, the fact remains that the issue of climate change is a top priority for the Obama administration and for Congress. For most observers, the overwhelming body of scientific evidence seems to have put the matter to rest, certainly in the eyes of many of those heading to Copenhagen. Only this week the Environmental Protection Agency officially declared greenhouse gas emissions a threat to human health.

What really matters right now is taking action to frame this wide-ranging debate in a way that provides both meaningful structure to address the world’s environmental challenges and allows for reasonable input from industries likely to be affected by any resulting regulation. Regardless of any action as a result of the Copenhagen negotiations, it should be noted that America’s natural gas utilities already have a wealth of experience and knowledge when it comes to being environmental stewards.

Terms like conservation and energy efficiency are not new to our industry; rather, they are our hallmarks. In fact, residential customers who use natural gas for heating have a carbon footprint today that is essentially the same as it was in 1970, even though the number of households using natural gas has grown from 38 million in 1970 to 65 million in 2009.

AGA will, therefore, continue to pursue the course we are already on – to encourage the use of clean, abundant, domestic natural gas in direct-use applications, as part of a low-carbon portfolio for energy generation and in innovative, effective ways such as the new generation of natural gas vehicles.

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