Lydia Meigs John Somerhalder Live on Bloomberg

On January 19, 2011 John Somerhalder, chairman of the American Gas Association (AGA) and chairman, president and CEO of AGL Resources (AGL), met with the New York Society of Security Analysts (NYSSA) to discuss the outlook for natural gas demand and supply.  He also addressed some key issues regarding investment in the natural gas utility sector.

Later that day he was a guest on Bloomberg’s “Bottom Line” where he also discussed the recent merger between Nicor and AGL and the vast opportunities for their stakeholders that will result from the melding of the two companies.

Check out Somerhalder’s full interview on Bloomberg below and read more about his meeting with NYSSA here.



Posted in energy | Comments Off

Chris McGill Natural Gas Market Indicators

Although some basis blowouts (temporary pipeline capacity cost increases) have occurred in the northeast due to temperature extremes in January (gas over $16 per MMBtu at the New York city gate on January 24), natural gas commodity prices have remained remarkably stable, even with the strongest underground storage withdrawal of the season for the week ending January 14.

Basis increases tend to be indicators of pipeline capacity constraints during periods of peak demand – not a precursor of supply shortages. To the contrary, working gas inventories remain solid compared to recent history and the combination of imported pipeline gas, domestic production, minimal LNG volumes, and storage have reliably met consumer requirements.

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.


Posted in Natural Gas | Tagged | Comments Off

Chris Hogan EPA Report Shows Natural Gas Efficient & Emissions Low

I’m not sure if you have seen the new EPA report on emissions related to natural gas, but for those who are not familiar with the data under discussion the conclusion is misleading.

First and foremost, though, kudos to the EPA for looking at upstream emissions for comparing natural gas to other options.  The problem, however, is that the actual data used is limited and may even inflate methane emissions by several orders of magnitude.

The EPA and everyone else in the industry has been using “emission factors” developed long ago to estimate how much methane leaks from production wells, pipeline valves and the like.  It’s common knowledge that these emission factors were based on very limited field testing performed nearly 20 years ago, and that they are seriously in need of updating and refinement.  The EPA even addresses this issue of outdated data in its November 2010 Technical Support document.  However, without any support to back up the claim, the EPA then claims that emissions today may be higher than they were 20 years ago.

Not only is such a statement wholly unsupported by any data, it’s actually in opposition to recent findings.  EPA’s Natural Gas STAR program managers, fully aware of the problem with outdated information, took steps about four years ago to launch a joint research project with energy industry trade groups to do new, more extensive field testing on modern natural gas systems to see what is really going on and to develop updated emission factors.

That work has already resulted in some new emission factors for natural gas distribution and transmission equipment, and other work is continuing this year and next.  The work so far shows that methane emissions are declining as natural gas systems become tighter as the result of new technology, equipment and procedures.

And let’s not forget that even using the old inflated emission factors, EPA estimates that natural gas is more efficient and lower emitting than other options.

Posted in Natural Gas, science | Comments Off

Victoria Plotkin Pipeline Safety: Top of Mind for AGA

On January 19-20 AGA held a Transmission Integrity Management Workshop in Las Vegas.  AGA was extremely pleased with the strong participation with more than 100 members attended, representing natural gas operators across the country and industry’s leading technical experts.

The National Transportation Safety Board (NTSB) is in the process of investigating the San Bruno incident and recently released a list of recommendations.  Shortly thereafter, the US Department of Transportation’s Pipeline and Hazardous Materials Safety Administration (PHMSA) released an advisory to highlight additional transmission integrity issues for operators to consider.  AGA’s workshop reviewed the NTSB’s recommendations and PHMSA’s advisory, providing operators with an opportunity to discuss the next best steps.  In the coming months, the NTSB and the 112th Congress will no doubt discuss the technical issues raised at this timely workshop.

Attendees were actively engaged in the discussion throughout the workshop.  Pipeline operators discussed challenges that they are experiencing in completing integrity assessments on their remaining pipelines prior to the December 17, 2012 deadline.  Operators and industry experts discussed addressing both static and time-dependent threats under their transmission integrity management programs.  A wide variety of technologies are emerging to allow operators to better understand their pipeline system.  This workshop included presentations on a variety of technologies that addressed challenging situations such as unpiggable pipeline segments and cased pipeline segments.  Now that operators have garnered greater experience applying External Corrosion Direct Assessment (ECDA), we are in the position to identify leading practices when using this assessment methodology.  A presentation was provided by an industry expert who has been involved with ECDA since its inception, noting circumstances in which this method can be applied successfully.

Many Congressional representatives and regulatory representatives have broached the topic of in-line-inspection.  A panel of service providers who work with in-line-inspection tools provided detailed information regarding the threats that can be addressed and the tools’ potential limitations.  It is important that all stakeholders have an understanding regarding the tools’ capabilities and limitations, as a similar panel will be held at the AGA Operations Conference in Nashville, TN the week of May 22, 2011.

AGA is greatly appreciative to all of the members and industry experts who attended this workshop and looks forward to continued work to ensure best practices in industry safety.

Posted in energy, safety | Comments Off