As expected, the bill is a mixed bag for natural gas utilities.   AGA is pleased to note that it includes proportional allowance allocation, and also recognizes that mandating that one-third of those allowances be spent on energy efficiency programs is not achievable. However, it does not meet other threshold criteria that AGA would like to see in any climate legislation, including end-use natural gas related research and development and carbon labeling for appliances.

AGA continues to point to the industry’s stellar emissions record –our customers have reduced carbon emissions by 40 percent over the last 40 years – as proof that our models are working, and working well.

For AGA’s full statement, click here.

Photo credit: Harold Hinson

A quick call to 811 can help avoid damage to underground utilities, which can cause injuries, environmental incidents, and disruption of services. Visit www.call811.com for additional information.

Thanks to the Common Ground Alliance (CGA) for sending along the news clip. Harvick’s sponsor, Shell, is a member of CGA, and included the panels to show support for National Safe Digging Month.

Photo credit: Harold Hinson

Based on numbers reported to the SEC, in 2009 it appears the “known reserves” of natural gas in the United States increased for the eleventh straight year, now approaching 250 trillion cubic feet– the highest level in more than 35 years.  This record number is good news for natural gas customers, signifying that our country can continue to rely on natural gas as a staple of its energy mix.

Interestingly, BP, the largest U.S. producer of natural gas in 2009, produced less than five percent of the national total for the year – meaning the natural gas production industry remains competitive.  Other large producers and reserves holders include household names such as ExxonMobil, yet, significant volumes of gas are produced by others such as Chesapeake Energy, Devon, Anadarko and EOG Resources. In fact, thousands of other large, mid-size and small producers provided the bulk of domestic natural gas to local distribution companies last year.

For a breakdown of the numbers and further analysis, take a look at the report.

During the forum, which was sponsored by AGA, the American Gas Foundation and the Congressional Quarterly- Roll Call group, Sen. Murkowski said that any bill that fails to rely on natural gas to help lower emissions is “unacceptable.” She went on to tout the record of residential and commercial natural gas users in lowering total emissions over the last four decades.

The senator also pointed to natural gas as a backup for renewables, stating, “renewables need base load supply, and natural gas can be that supply.”

Others on the panel, including Kevin Book of ClearView Energy Partners, Sharon Buccino of the Natural Resources Defense Council (NRDC), Bill Cantrell of the Council for Responsible Energy, Vello Kuuskraa of Advanced Resources International and Dr. Robert Simon of the Senate Energy and Natural Resources Committee addressed such issues as access to domestic natural gas, hydraulic fracturing and natural gas vehicles.

Quoting the journalist Robert Bryce, Senator Murkowski concluded, “Wood was the dominant fuel source in the 19th century, and oil in the 20th century.  Natural gas should be the dominant fuel source in the 21st century.”

Visit this link to view a video of the forum.

Dear Editor:

Your recent article, “Natural gas lobby steps up to challenge coal” (3/1/10), wrongly insinuated that a “fight” is brewing between natural gas and coal trade associations in Washington over impending climate legislation.

Rather, the natural gas industry has good news to share about the environmental benefits of natural gas and is rightly using any venue possible to spread this positive message.

Americans have indicated that they care deeply about reducing carbon in our atmosphere.  That’s why the American Gas Association (AGA), a trade association that represents 195 local energy companies that deliver natural gas throughout the United States, is working to educate lawmakers and consumers about the clean, efficient properties of natural gas.

AGA believes Americans have a right to know that natural gas emits 45 percent less carbon dioxide than coal and 30 percent less than heating oil.  Based on these numbers alone, it’s clear that natural gas can and should play a major role in reducing carbon emissions in the United States.  While these carbon reductions can best be achieved through direct use of natural gas in the home (i.e. heating and cooking), major carbon reductions can also be achieved from natural gas-fired power plants, as was mentioned in your article.

AGA is a proponent of fuel diversity in the United States.  Our country must rely on a mix of fuels if we are to achieve energy security and freedom from dependence on foreign oil.

As a clean-burning, domestically abundant, low carbon fuel, natural gas is “here and now” and is ready to help our country reach its energy goals.  In fact, Secretary of Energy Steven Chu visited AGA offices last month and clearly stated that natural gas is a necessary component of any truly renewable energy program.

Without engaging in “fights” or petty exchanges, AGA will continue to inform lawmakers about our industry’s good story and about the possibilities of natural gas in a new energy future.

Let me know if you think we’re on the mark in the comments below.

Energy Secretary Chu

The Secretary specifically referenced the source-vs.-site issue and said he is a proponent of source measurements, which take into account the amount of energy lost along the way in the production, generation, and distribution of a fuel, i.e., the full-fuel-cycle.

Much to the delight of the audience, he also added one of his requirements for his new home in Washington, D.C. was that it had a natural gas stove and water heater. You can enjoy more photos from Secretary Chu’s visit on the AGA Flickr channel.

Energy Secretary Chu

Written in Chris’ usual “cut to the chase” style, the report includes an informative Q&A section along with graphs to illustrate many of these points. It provides critical information about both conventional and unconventional sources of gas (deep-water!  subsalt! arctic sands!) and about the transmission and importation of gas (what about Canada & Mexico?).

I always find it interesting that there are a healthy number of misconceptions about U.S. natural gas supply, despite the fact that natural gas fuels over half of American homes comfortably and reliably.  Chris’ report addresses many of these unknowns.

Take a look and let us know what you think.

AGA President and CEO David Parker told the audience, “We represent the customer, so the price of natural gas is critical to us.  And I’m pleased to report today that with new shale discoveries across the country, we’re more confident about the natural gas supply picture than ever before.   This clean, efficient, reliable, American fuel is and will be available to us in abundant quantities.”

“No industry here today is going away, so there is no need for a fuel war,” he continued.  “Our country needs all the energy sources it can get if the economy is going to recover. We’re optimistic about the overall energy picture in the United States.”

A consensus was reached among the speakers that the country’s often-divisive political environment could play a major role in the momentum- or lack thereof- of any climate and energy legislation.

For more information visit the USEA forum.

Specifically, the group is asking that any OTC derivatives legislation provide a clear exemption for end-users of OTC derivatives products, such as electric and gas utilities that use OTC derivatives markets to hedge against commodity price risk for natural gas and wholesale electric power. The hedging transactions of end-users do not contribute to systemic risk, and should be exempted from the definitions of swap dealer and major swap participant.

Further concerns are expressed in the letter, which can be found here.

Electricity and gas utilities engage in risk management transactions in the OTC derivatives markets to help ensure stable and affordable rates for their customers.  The organizations stand ready to work with lawmakers to enhance transparency and improve overall market functions of transactions without creating unintended consequences.

In a downturned economy, many citizens cannot afford to heat their homes adequately while keeping up with other household expenses.  Virtually all LIHEAP households are home to those of very modest means who are elderly, disabled or under the age of six.  LIHEAP is a critical program that provides federal funding to keep those Americans comfortable and healthy during cold weather.  To supplement LIHEAP funds, natural gas utilities provide more than $1.7 billion annually in program assistance to needy families.

Visit this link for a complete list of state allocations of the funds released by HHS.

In a downturned economy, many citizens cannot afford to heat their homes adequately while keeping up with other household expenses. LIHEAP is a critical program that provides federal funding to keep those Americans comfortable and healthy during cold weather.