True Blue Natural Gas - An Energy Blog from the American Gas Association AGA

Natural Gas Market Indicators

Chris McGill — Mon, 30 Aug 2010 14:59:30 +0000

For the period July 1 through August 19, 2010, thirty-two days were recorded by Bentek Energy LLC as having 30 Bcf or more of natural gas demand attributable to power generators in order to meet cooling demand around the country. During that same period in 2009 there were only two such demand days from generators.

That is what happens when summer cooling degree data points to a season 25 percent warmer than normal. Demand from power generators and from the industrial sector is up nearly 10 percent and 8 percent, respectively, year-to-date 2010 over 2009. However, with strong supply fundamentals pricing events over the summer have been really – nonevents.

Visit this link to download the full Natural Gas Market Indicators. Topics covered include: Reported Prices, Weather, Working Gas in Underground Storage, Natural Gas Production, Rig Counts, Pipeline Imports and Exports, and LNG Markets.

Spectra Responds to Natural Gas Pipeline Concerns

Chris Hogan — Fri, 27 Aug 2010 18:32:36 +0000

The safety, security and reliability of America’s interstate natural gas pipeline infrastructure is one of the most important aspects of the energy utility industry. And, in the case of Spectra Energy’s proposed 15-mile underground natural gas pipeline in the Jersey City, New Jersey, area, it can be an emotional one as well.

In this opinion piece from The Jersey City Independent, Spectra group vice president, Bill Yardley, explains the importance of maintaining and expanding our nation’s vital network of interstate natural gas pipelines.

Don’t Miss Out—Make Sure to Register for the World Shale Gas Conference & Exposition

Jennifer O'Shea — Thu, 26 Aug 2010 19:20:18 +0000

I am pleased to announce that registration is now open for the World Shale Gas Conference & Exposition, which will be held from November 2-5, 2010, at the Gaylord Texan Convention Center in the Dallas, TX metro area. With natural gas from shale being widely recognized as a likely geopolitical game changer for the natural gas industry, this is sure to be a spectacular event.

This event will provide in-depth training in key areas, as well as an exclusive senior level strategic conference that will focus on the commercial, strategic, financial and regulatory issues affecting shale gas production and distribution. This will be complemented by a technical exhibition showcasing the new and existing technologies that are unlocking the potential of shale gas.

We will be bringing together the whole natural gas industry value chain: resource holders, government officials and regulators, operators, service and technology companies, and pipeline and distribution companies from around the world to share knowledge, form partnerships and promote the emergence of this game-changing source of natural gas.

With only about two months before this great event takes place, now is the time to reserve your space. Keep in mind that AGA members get a discounted registration fee.

Dave Parker Receives Prestigious Key Award from ASAE and The Center

Jennifer O'Shea — Wed, 25 Aug 2010 19:07:48 +0000

You may recall that we recently mentioned that Dave Parker was chosen to receive The Key Award from the American Society of Association Executives (ASAE) and The Center for Association Leadership (The Center). We were thrilled that he was officially presented with the award on Saturday, August 21, at ASAE and The Center’s annual conference in Los Angeles, CA.

The Key Award honors an association CEO who demonstrates exceptional qualities of leadership in his or her own association, and displays a deep commitment to voluntary membership organizations as a whole. This is the highest honor bestowed upon association chief staff executives by ASAE and The Center, and it’s no surprise that Dave was selected for this prestigious award—he is a superb leader and we are all very proud that his efforts have been recognized.

Congratulations, Dave!

Please join us in congratulating Dave below in the comments.

Department of Energy proposes to use full-fuel-cycle analyses in developing energy efficiency standards

Andrew Soto — Fri, 20 Aug 2010 19:15:28 +0000

Today, the U.S. Department of Energy, Office of Energy Efficiency and Renewable Energy, issued a notice of proposed policy, proposing to incorporate a full-fuel cycle analysis into the methods it uses to estimate the likely impacts of energy conservation standards on energy use and emissions. See Energy Conservation Program for Consumer Products and Certain Commercial and Industrial Equipment; Public Meeting and Availability of Statement of Policy for Adopting Full-Fuel-Cycle Analyses Into Energy Conservation Standards Programs, 75 Fed. Reg. 51,423 (Aug. 20, 2010). Here is the DOE proposal and a memorandum summarizing the proposal.

In general, DOE is proposing to use full-fuel-cycle measures of energy and greenhouse gas emissions, rather than the primary energy measures it currently uses. DOE is also proposing to work with the Federal Trade Commission to make full-fuel-cycle energy and emissions data available to the public to enable consumers to make cross-class comparisons. DOE is proposing this policy change to implement the recommendations of the National Academy of Sciences that DOE consider moving over time to use of a full-fuel-cycle measure of energy consumption for assessment of national and environmental impacts, especially levels of greenhouse gas emissions, and to providing more comprehensive information to the public through labels and other means, such as an enhanced website. DOE is soliciting public comment on its proposed policy, its methods for modeling energy consumption and emissions impacts, and the ways in which this information can be disseminated to the public.

DOE will hold a public meeting on its proposal on Thursday, October 7, 2010, from 9:00 a.m. to 4:00 p.m. EDT, in Washington, DC, and will accept written comments from interested parties up to October 19, 2010.

High dividend tax rates will negatively impact utilities

Chris Hogan — Thu, 19 Aug 2010 19:01:00 +0000

Check out this great in-depth discussion from Fox Business News about how raising dividend tax rates will negatively impact the utility industry. Featured is Caroline Dorsa, CFO of Public Service Enterprise Group, a New Jersey based energy utility and one of the ten largest electric companies in the country.

White House Supports Keeping Maximum Dividend Tax Rate At 20%

Chris Hogan — Tue, 17 Aug 2010 19:32:19 +0000

Even as our nation begins to slowly recover from one of the worst economic periods since the Great Depression, Congress may yet go after investors by raising taxes on dividend income. The White House, through the statements of Treasury Secretary Tim Geithner, appears to have solidified its support for fair and reasonable dividend tax rates.

President Obama’s proposed budget for fiscal year 2011 maintains the 15-percent tax rate on dividends for most middle-income taxpayers and a zero-percent rate for low-income taxpayers. For married taxpayers earning more than $250,000 ($200,000 for single taxpayers), the tax rate on dividends is increased to a reasonable 20 percent. That is both fair and supports the investment goals of hard working Americans in all tax brackets.

Defend My Dividend, the grassroots campaign dedicated to preserving lower dividend tax rates, supports this proposal. For older investors who rely on dividends that might mean more active income – money to pay for food and medicine – and for those still working it may mean more money to put toward their future and that of their children.

By attracting new investment, companies like utilities are able to raise the capital needed to expand their delivery infrastructure to serve more customers, while also investing in new, cleaner generating capacity and environmental and energy efficiency improvements.

In recent months however, the White House has sent mixed messages regarding its stance on dividend tax rates, not wholly unexpected as public debate and political posturing on taxes has increased as well. Treasury Secretary Geithner said on several occasions that current lower tax rates should be extended for the middle class and allowed to expire for the top two percent of earners.

The question remained: does such a plan affect all taxes that were reduced as part of the 2003 package, including dividend tax rates? Was the administration going to stick to its own budget proposal?

Almost immediately, Defend My Dividend and other key coalitions began to dig into his statements, looking for some clear messaging about dividend tax rates.

Last week we got an answer from Geithner himself. Making the rounds of the Sunday political talk shows and sitting for a Reuters’ interview, he clearly stated that the tax rate for dividends and capital gains should not be allowed to rise above 20 percent. “We think it makes sense to make sure that 98 percent of Americans and 97 percent of small businesses see continuity in their taxes and we want to keep capital gains and dividends from rising above 20 percent.”

This is a very important development that clarifies the administration’s support for lower dividend tax rates – one that we support and applaud.

Now Congress needs to act on the president’s responsible support for keeping dividend tax rates from rising above 20 percent. It’s the right thing to do for America’s investors and for the economy.

To learn more about Defend My Dividend, visit our website where you can read the facts about dividend tax rates, take action to show your support and quickly and easily send a letter right to your representatives and senators.

You can also contact us at: info@DefendMyDividend.org.

Natural Gas Market Indicators

Chris McGill — Mon, 16 Aug 2010 12:48:11 +0000

Strong daily volumes of natural gas to power generators has been the market story this summer with a slowing of underground storage injections from an initial torrid pace. Oil prices have periodically surged but natural gas acquisition prices have demonstrated a relatively uneventful summer, which may be good for consumers during the coming winter heating season.

With that said, hurricane season projections remain focused on an above average storm count this year, so pre-winter price spikes are possible. Given the overall supply picture, with continued strengthening of domestic production, it may mean that any supply disruptions will have a minimal or short-lived impact on the national market.

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.

Natural Gas Vehicles for America in Boston

Dan Gibson — Fri, 13 Aug 2010 11:51:35 +0000

I don’t get out of the office nearly enough. Luckily, the format for conferences is gradually evolving as technology improves. A great example of this is the National Natural Gas Vehicle Conference-Summit hosted by Natural Gas Vehicles for America.

Nick Stavropoulos from National Grid was scheduled to give the welcome for the event but was also scheduled to do an interview with C-Span (see Chris’s post from yesterday). What to do? Well, how bout a nice video introduction from Nick that will play this morning. You can watch the embedded video below if you weren’t able to attend.

The summit, being held in Boston, started yesterday and continues through the 14th. They have a wide range of programs examining the benefits of natural gas vehicles. A sampling of the sessions includes:

Can Washington Embrace Revolution? A Candid Look at the Mood and Mayhem on Capitol Hill
Detroit’s Re-Engagement: Implications for the Light-Duty OEM Market
Striking a Balance: EPA’s Proposed Streamlining of Aftermarket Conversion/Retrofit Rules
The Communications Revolution: Should We Twitter? Do We Blog?
Capitalizing on the MDV/HDV Opportunity: Assuring OEMs’ Success and Continued Investment
Global NGV Snapshot: The Rapid Growth of NGVs Around the World
The Grass Roots Revolution: Fostering Collaboration at the Local and State Level

You can download a full conference program over at the site. If you’re at the summit, leave us a comment below on how it’s going. I’ll be checking out twitter to catch what I can.

Nick Stavropoulos of National Grid on C-Span

Chris Hogan — Thu, 12 Aug 2010 20:58:03 +0000

Yesterday, on C-Span’s morning news and discussion show, Washington Journal, Nick Stavropoulos, head of National Grid’s U.S. gas distribution business, talked about the importance of the nation’s natural gas system and how natural gas plays a significant role in America’s low carbon future.

In a wide ranging discussion that touched on a variety of issues, Nick explained how natural gas utilities work, how customer bills are structured, key issues surrounding supply and demand, and answered several questions from callers.

A popular topic was alternative power sources, including the role of wind turbines. The point was made that, while a growing and vital portion of America’s power supply, greener alternatives like wind and solar are not yet fully reliable. Additionally, the power generated from such sources still needs to be transmitted to the end user. Nick talked about National Grid’s contract with Cape Wind to develop an extensive wind farm off the coast of Cape Cod to help power Massachusetts customers.

One caller asked about distributed generation and cogeneration, using natural gas to power a site-located turbine to generate electricity and at the same time capturing the resulting heat and using that as steam for local heating purposes. National Grid has used this technology for some time in limited situations, but more development is needed. Nick noted that there are some residential customer locations using cogeneration, but it’s still on a small scale. He also stressed that government support is needed for development of natural gas cogeneration and renewable gas technology.

Discussion also touched on shale gas and where it fits in with the overall domestic natural gas supply. Addressing the topical issue of hydrofracking, Nick clarified that it is not a new technology – in fact, it has been in use successfully for decades — and he pointed out on several occasions that well funded regulators and transparency from all sectors of the industry are vital to oversight and effective regulation of natural gas development.

The video is embedded above and you can watch the interview at C-Span.