And by the way, it will help enhance America’s energy security and, by extension, our national security.

Start with saving motorists money.  Due to the vast amount of natural gas from shale that has been entering the domestic energy market over the past few years, natural gas is now both plentiful and competitively priced, especially compared with gasoline.  In fact, on a gallon-equivalent basis, natural costs approximately $1.50 less than gasoline.

As for saving our country money, the more dollars spent producing and using domestic natural gas, the less we spend on imports of foreign oil, which currently amounts to a staggering $1 billion per day.  Likewise, the more dollars that are spent developing the domestic natural gas industry, the more domestic jobs we create in that industry.

And of course, the more we drive cars powered by environmentally friendly natural gas the cleaner our environment.  Replacing an older, gas-powered vehicle with a newer NGV can reduce NOx emissions by 75-95 percent and CO2 emissions by 20-20 percent.

As for enhancing our energy security, it is well known that America is overly dependent on oil imports from nations that are, to varying degrees, corrupt, authoritarian, unstable, and have little or no sympathy for America’s values or national interests.  That threatens both our energy security and our national security.

So imagine if we were able to displace significant amounts of this imported oil—90 percent of which is used in the transportation market—with natural gas.  The way to achieve that goal is to put more NGVs on the road.

Of course there are challenges, including producing NGVs in numbers that will make their initial cost more comparable to the cost of gas-powered vehicles, while simultaneously developing a nationwide re-fueling infrastructure.   Meeting these challenges will involve a significant financial investment, an industry-wide commitment and, at least initially, some measure of government support.   But as this month’s cover story suggests, and as accompanying articles by Rich Kolodziej of NGV America and Kathryn Clay of the new Drive Natural Gas Initiative clearly reinforce, the economic argument for NGVs is compelling, the environmental benefits are substantial, the energy security argument is undeniable, and the technology to cost-effectively produce both NGVs and a nationwide NGV re-fueling infrastructure is advancing rapidly.

In other words, to the question “Is Now the Time for NGVs?” the answer is yes.

And research and development organizations such as the Gas Technology Institute (GTI), NYSEARCH and the Pipeline Research Council (PRCI) have long been in the business of identifying, supporting and developing new technologies—and at AGA we have been working closely with these groups for just as long.   That is one reason we welcomed the opportunity to let these research groups share some of the promising new products and procedures that they are working to develop and bring to market.

Which they have done in the pages of this month’s issue, so if you aren’t excited about better ways to perform “low-drag magnetic flux leakage testing” on pipeline, or new ways to predict “microbially induced corrosion,” or a new video surveillance camera that can remotely monitor “hot-spot portions of pipeline rights-of-way that have been identified as being especially vulnerable to outside-force damage,” well then, my friends, you need to re-examine your priorities.

In all seriousness, the foundation of everything our industry does is our reputation for the safe and reliable delivery of natural gas to the 175 million Americans who depend on it every single day.   Ensuring that safety and reliability is a formidable challenge, but one that we have always met, and one that we will continue to meet with the invaluable help of new technologies, products and services, and thanks to the outstanding technology research and development organizations—GTI, NYSEARCH and PRCI to name just three—that make them possible.

As far back as February of this year Secretary LaHood had visited AGA’s headquarter in order to talk with our board of directors about how, together, we can improve pipeline safety.  As he said to our board, a first step is to improve communication among all of the pipeline safety stakeholders, which is why in April he hosted the first-ever Pipeline Safety Forum, whose goal was to determine the best methods to “rehabilitate, repair and, where necessary, replace critical pipeline infrastructure”—all to ensure the safe and reliable delivery of natural gas to the 175 million Americans who depend on it every day.

As Secretary LaHood notes in our interview with him, the Pipeline Safety Forum was an excellent first step, but only a first step in enhancing pipeline safety, while also making sure that all stakeholders, including natural gas customers, are aware of the individual actions they can take to improve the safety of the pipeline system.  To give just one example, the number-one cause of pipeline incidents is damage done to pipelines by outside excavators, including folks digging or planting in their own back yards, who are unaware that underground pipe lies beneath them.  A simple call to the “Call Before You Dig” safety hotline—just dial 811 anywhere in the country—and you will be alerted to the location of underground pipe and/or wire in your digging area.

As the interview makes clear, Secretary LaHood is a firm believer in interaction, communication and collaboration. “I know that each time we bring people together we learn more,” he says.

By reading this interview, you too can learn more about Secretary LaHood’s views on pipeline safety and how the U.S. Department of Transportation, the natural gas industry and our many other involved stakeholders, both nationally and in each of our 50 states, can more effectively work together to improve it.

Yes, those local utilities deliver clean, reliable natural gas to the homes, businesses and industries in cities and towns across America, but they also are connected to their customers in ways that go far beyond their natural gas pipe in the ground.

They also are connected by the significant economic impact they have on their local communities.  A recent study says that America’s natural gas industry is responsible for 2.8 million American jobs, of which more than 600,000 are the direct result of finding, producing and delivering natural gas to customers.  In addition, more than 700,000 jobs are the indirect result of our industry—that is, these jobs are created by companies that sell products and services to the natural gas industry.   And finally, 1.5 million American jobs are the result of the consumer spending done by the workers in those direct and indirect natural gas industry jobs—what is sometimes called the “induced result” of our industry.

All total, according to the study, 31 states have at least 10,000 jobs related to the natural gas industry, which is a significant economic impact that is felt in communities around the nation.

Local natural gas utilities also are connected to their communities by the civic pride and local commitment so proudly exhibited by their employees.  Nationwide natural gas utilities, driven by the charitable giving of their employees, contribute nearly $3 billion to energy assistance programs for low-income families struggling to pay their energy bills.  These utility employees are also leaders in charitable giving and corporate philanthropy, donating money to help their communities in everything from education, to local business development to making sure less fortunate children have a present to open on Christmas day.

And finally, natural gas utilities and their employees work with local business and political leaders to attract new businesses to their communities, thereby increasing local jobs and local tax revenues, while also increasing the number of natural gas utility customers.

In sum the local natural gas utility and its employees know that being a good neighbor and friend is good for the soul as well as good for business.  As AGA President McCurdy puts it in his president’s message, “The more thriving and vital the community is, the more thriving and vital its natural gas utility is—and vice versa.”

In short, many of our new realities are vastly different from the old ones.  For example, for decades our challenge was to procure enough natural gas supply to keep pace with demand, which—depending on how successful we were—could result in volatile prices, unhappy customers and unfriendly regulators and legislators.  All of this began to change a few years ago when new technologies allowed us to cost-effectively produce abundant quantities of unconventional sources of natural gas, in particular gas from shale rock formations.  In 1991 shale gas accounted for 1 percent of our domestic production.  Today it is 20 percent and growing.   The result has been stable, affordable natural gas prices, happy customers and friendly—well, friendlier—regulators and legislators.

Of course, contributing to those stable, affordable natural gas prices is stagnancy on the demand side.  While the number of households using natural gas has grown by 70 percent since 1970—from about 38 million to more than 64 million today—aggregate natural gas use has remained essentially flat due to the fact that those household use natural gas much more efficiently.  For one thing, new natural gas end-use products are vastly more efficient; for another, more customers are conserving energy.

Thus our new challenge is to grow demand for natural gas, both its traditional use for home heating, water heating, cooking and the like, and in new markets such distributed generation and the transportation market (putting more natural gas vehicles on the road), while increasing its use in the emerging “Smart Energy Grid.”   To meet that challenge AGA is increasing its focus—especially its messaging to our key stakeholders—on the economic, efficiency, environmental and energy security advantages of the direct use of natural gas in America’s homes and businesses.   We have also created the AGA Growth Task Force to identify market growth opportunities and produce an action plan that moves us forward.  As the cover story spells out, that task force has identified five key areas that offer the most promising growth opportunities for our industry.

As for the delivery of natural gas, the natural gas industry’s newest challenges are implementation of the Distribution Integrity Management Program and an aging infrastructure that needs new resources to both modernize it and expand it.  Our cover story spotlights the ways several of our member companies are meeting those challenges, which have come into much sharper focus in the wake of the tragic pipeline incidents in San Bruno, Ca., and Allentown, Pa.

That said, what has not changed with respect to the delivery of natural gas is our industry’s understanding that safety is “Job One.”  In that sense, our “new reality” is the same as our old one.  The safe, reliable delivery of natural gas to the 175 million Americans who depend on it every day is—and always will be—AGA’s highest priority.

Excerpts from this American Gas interview, edited for space and clarity, will appear at True Blue Natural Gas throughout March.  The entire interview can be read at aga.org.

AMERICAN GAS: You are a veteran of Capitol Hill and alumnus of Congress. How is Congress different from when you were a member? Has the political process gotten better or worse? Have you given any thought to the strategies that will advance our natural gas utility issues—pipeline safety, LIHEAP, access to new sources of supply, R&D funding and so on?

McCURDY: We could spend a lot of time on the first half of your question. The process has definitely changed. It has become a much more polarized and toxic environment. The political parties have become more harshly partisan and more homogenous—that is, more extremely liberal and conservative. I am a Democrat, but I was part of the right wing of that supposedly left-wing party. That put me right in the middle of the political spectrum—and there were Republicans to the left of me. Today the center has shrunk, which is very harmful because the nature of the debate has changed. It has become more personal, demonizing opponents and such.

But in terms of AGA’s and our members’ priorities—pipeline safety, LIHEAP, research and development and I would add some important tax issues to the list—the key to advancing them is strengthening relationships with our most important stakeholders. That is something AGA has been very good at, and I commend the AGA team for being able to accomplish so much because of those relationships. It also means having the right resources and tools such as GASPAC to be successful.

Access to new sources of supply is obviously a high priority. Part of my congressional district was Duncan, Oklahoma, which at one point was headquarters for Halliburton—it no longer is—but I grew up in that world, and I saw first-hand the incredible innovation and technology development and how it was able to open up these new resources. It really is phenomenal.

I am a strong believer that the exploration and development of new energy supplies can be done in a safe, environmentally responsible manner using best practices, working with our regulators to develop appropriate safeguards and promoting transparency. And people need to understand that. I believe in clear communication based on the facts, and the facts are on our side.

And pipeline safety is also a very high priority.  I recognize that our members look to AGA to provide programs and services that help deliver natural gas safely, reliably and cost-effectively.  Those programs are critical not only to our gas utilities, but also to our pipeline members, international equipment and services members and others. That core focus will not change.

Excerpts from this American Gas interview, edited for space and clarity, will appear at True Blue Natural Gas throughout March.  The entire interview can be read at aga.org.

AMERICAN GAS: Granting that you have a bit of a learning curve ahead, would you share your first impressions of the natural gas utility industry, especially your impressions of where the industry will be in the future?

McCURDY: Well, there’s always a learning curve when joining a new organization, but I’m a disciple of accelerated learning. I have given a copy of a book called The First 90 Days to AGA’s senior staff. It talks about how you accelerate learning and transitions, and I’m a strong advocate of that.

But keep in mind that in terms of a learning curve, I grew up in the Oklahoma oil and gas patch and represented a district in Congress that was a center of the oil and gas industry. I have seen how the rapid advances in technology over the years have literally been a game-changer in terms of expanding the unconventional gas resources and their effect on stable and affordable natural gas prices. This country is blessed with domestic shale gas equivalent to the oil reserves of Iran.

One way or the other I have been involved in discussions about energy my entire career. Recently I met with T. Boone Pickens, and we discussed a lot more than the football rivalry between his alma mater, OSU (Oklahoma State University), and my beloved OU (University of Oklahoma). He and I share the view that we can, and must, take advantage of the full mix of “all-American fuels,” including natural gas and alternatives. That view is shared by members of Congress and the Obama administration with whom I have also had frequent conversations.

You’ll find that I’m a natural optimist and believe that we have a great future as long as we dedicate ourselves to a common purpose. The future for natural gas as a domestic fossil fuel is extremely bright as we move to a sustainable energy policy for tomorrow. But the key word there is “sustainable.” That’s the bridge that must connect all of the energy stakeholders, including both political parties. We all have to agree on a sustainable energy policy.

features an interview with AGA’s new president and CEO, Dave McCurdy, who joined AGA after serving for four years as president and CEO of the Alliance of Automobile Manufacturers (Alliance).  Prior to his work at the Alliance, McCurdy served for eight years as president and CEO of the Electronic Industries Alliance (EIA).  He also spent 14 years in the House of Representatives as the Member from the Fourth Congressional District of Oklahoma.    A proud “Sooner”—“I grew up in the Oklahoma oil and gas patch”—McCurdy is a 1972 graduate of the University of Oklahoma and received his J.D. in 1975 from Oklahoma Law School.  McCurdy and his wife, Dr. Pam McCurdy, a physician specializing in child psychiatry, live in McLean, VA. They have three grown children, Josh, Cydney and Shannon and two sons-in-law.

Excerpts from that American Gas interview, edited for space and clarity, will appear at True Blue Natural Gas throughout March.  The entire interview can be read at aga.org.

AMERICAN GAS: You come to AGA from two big associations—the Electronic Industries Alliance and the Alliance of Automobile Manufacturers. Why AGA?

McCURDY: That’s an interesting question. It was an honor to serve and represent two major global industries. I really enjoyed leading both associations. I have always been a proponent of American innovation and at EIA we represented the entire field of electronics, from semi-conductors to consumer electronics, to telecom, to aerospace—the full spectrum, and it was a global spectrum. In that role, I spent a lot of time in Asia, especially China. I even learned enough Mandarin to give a short speech, and I spent a lot of time focusing on our national innovation and economic competitiveness.

As for the automobile association, I was recruited by the auto sector at the end of 2006. I met with the CEOs of Ford Motor, GM, Chrysler, Toyota, BMW, Volkswagen and Mercedes-Benz, and was impressed with their commitment to sustainable energy policies, sustainable transportation and the need to change their approach to interfacing with the government. And I was also asked the question, “Why go from high tech to autos?” Well, in fact, 30 percent of the content of automobiles is electronics, and that’s increasing, so it’s very high tech. But it also gave me the opportunity to work on two of my passions—energy and the environment and safety issues.

In addition, I strongly believe that we need a domestic manufacturing base in America, which is critical to job creation, our long-term economic and national security. And even though none of us in 2006 anticipated the collapse of our financial system, the Great Recession and the bankruptcies of major automakers, we were able to keep our focus on our priority issues. We developed our vision, we reached out to new stakeholders and achieved our priority goals, which included a single national standard for fuel economy and greenhouse gases, and consensus solutions on the safety front.

So in terms of the switch to AGA, I was at a good point. We were coming off some major successes and when I was approached about possibly joining AGA, I saw it as an opportunity to achieve a viable—a sustainable—domestic energy and environmental policy.

According to Clark that is one reason “NARUC plays a key role in training and educating the nation’s utility regulators,” especially since there is a lot of turnover on regulatory commissions.  “The average commissioner’s tenure is between only three to four years,” Clark says, so getting new commissioners up to speed as quickly as possible is critical.  “No one benefits from poorly equipped and trained regulators.”

In the interview Clark also shares that commissioners need to do a better job of communicating to their key audiences—especially the general public—what it is they do, and why.  Because regulators deal with a number of complicated procedures, including due process rights, notice requirements, ex parte communications and evidentiary-based records, Clark admits, “The regulatory world can be arcane.”

Clark’s prescription is better transparency.  “We regulators need to ensure that all parties feel as though they have an open, transparent way of communicating with us, and us with them.  To do otherwise risks alienating the very people we are there to serve.”

Speaking of being prepared, Clark stresses that with respect to the natural gas industry, the highest priority for both the regulators and the utilities they regulate is the safety of the natural gas delivery system.  Clark notes that among the many issues regulators need to address —  especially in light of a number of recent natural gas pipeline incidents, including the tragic incident in San Bruno, Ca. — is whether pipeline safety program personnel, those responsible for safety inspections, are able to do their jobs properly with the resources they currently have.  According to Clark, “The answer coming back (from safety inspectors) is that more resources are needed.”

Clark also notes that the good news for the natural gas industry, the abundance of shale gas that is currently coming to market, is also good news for the consumer because it means stable, affordable natural gas prices.  As a result, even though some in the environmental community object to the environmental impact of the hydraulic fracturing (“fracking”) process necessary to produce shale gas, NARUC is, for the most part, supportive of this new supply source.

“Because of the clear importance of the emerging shale plays to the affordability of gas to consumers, NARUC has asked the EPA to consider that state environmental regulators may be in the best position to assess the highly localized potential environmental impact of fracking,” Clark explains. “The concern is that regulatory overreach could shut down a major positive development for consumers, with limited environmental benefit to show for it.”

For a balanced, thoughtful interview with a thoroughly prepared NARUC president, read the entire story by visiting aga.org

How do we improve the deficit? President Obama is excoriated by his critics for adding trillions of dollars to the deficit.  But Goldberg writes that, according to estimates, if America “unlocked its oil and natural gas reserves, the government could take in somewhere between $1 trillion and $2 trillion in additional revenue over the coming years.”  And as he points out, the resulting lower fuel and energy costs also would stimulate the economy, further reducing the deficit.

How do we improve our trade imbalances? Increasing domestic use of oil and natural gas means we import less from overseas, which, by definition, improves our trade imbalance.  This is especially true of natural gas.  According to a number of energy experts, including the Potential Gas Committee, at current production levels the United States enjoys a 100-year supply of natural gas, and rapidly improving technologies mean we should be able to produce even more domestic gas, potentially extending that supply outlook far beyond 100 years.  As Goldberg notes, “it’s quite possible that the United States could be the Saudi Arabia of natural gas.”  He also points out that using more domestic energy not only reduces the trade deficit it increases our GDP.

How do we create good-paying jobs? Goldberg puts it succinctly” “You can’t drill for American oil and natural gas in China, Saudi Arabia or anyplace else other than America.”  The more domestic energy we produce, the more domestic jobs we produce, and jobs in the exploration and production of oil and natural gas pay more than twice the national average.

Goldberg agrees that renewable energy is our energy future, although—like many of us in the natural gas industry—he believes the day when renewable energy dominates our energy landscape is farther off than most people think.  What he proposes is a “do-it-all strategy” in which we focus not just on developing renewable energy, but also on the development of our domestically abundant fossil fuels.

The result, he writes, would be “creating good jobs here at home, lowering energy costs, reducing our reliance on foreign oil, and cutting the deficit.”

Funny, that’s what we at the American Gas Association have been saying for years.