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Senate Energy Bill: Love It or Hate It?
Recently Dave Parker participated in the National Journal’s Energy and Environment Experts blog to respond to their question, “Senate Energy Bill: Love It or Hate It?” Please take a moment to read his response posted below and visit the National Journal Energy Experts blog to view the comments from others in this respected group.
The American Gas Association (AGA) is pleased that the Senate Energy and Natural Resources Committee recently approved legislation to support the development of U.S. natural gas resources along the Outer Continental Shelf, which will benefit consumers, the economy and the environment. Specifically, the committee approved an amendment offered by Senator Byron Dorgan (D-ND) that will provide significant new access in the Eastern Gulf of Mexico by opening this area beyond 45 miles of the Florida coast for oil and natural gas development.
The Dorgan amendment also included the “Destin Dome” natural gas discovery, which lies approximately 25 miles south of Pensacola and is expected to produce anywhere from 110 to 165 billion cubic feet of gas every year for the next 20 years. Access to the Eastern Gulf of Mexico, which is known to have vast resources of natural gas that are close to existing pipelines and other vital infrastructure, will not only help supply more domestic natural gas to consumers but will also ultimately help make America more energy secure.
AGA was also encouraged that the Senate Energy and Natural Resources Committee legislation included biogas as a qualified renewable for the Renewable Electricity Standard (RES). Biogas can be sustainably produced as a product of our waste-producing (landfills, agricultural processes and animal farms) lifestyle. This efficient process also captures methane that otherwise would have entered into the atmosphere.
And while not included in the Senate Energy Committee’s recent energy legislation, AGA will continue to educate policymakers about a recently released National Academies’ (NAS) report to Congress, which found that the Department of Energy should consider changing its measurement of appliance energy efficiency to one based on the full-fuel cycle. This measurement takes into account the amount of energy produced and lost from the point of production to the final point of use. This more accurate measurement would provide consumers with more complete information on energy use and environmental impacts. For example, 70 percent of the total amount of fuels used in producing, generating and transmitting electricity is lost by the time that electricity reaches a customer. By contrast, producing and delivering natural gas directly loses only about 10 percent of its usable energy.
The NAS study also supports the “carbon footprint labeling” provisions championed by AGA that were recently included in the Waxman-Markey climate change legislation. These provisions would expand the existing Federal Trade Commission EnergyGuide labeling program for appliances to include carbon footprint information.
AGA looks forward to working with Congress as it considers energy and climate change legislation that strives to improve our environment and energy security, while also encouraging the increased use of clean, abundant, domestic natural gas. As the cleanest fossil fuel, emitting only one carbon atom when burned, natural gas can play a major part in reducing carbon emissions.
Natural Gas: the Rodney Dangerfield of fuels
One of my favorite people to speak with around the AGA office is Roger Cooper. I’m always in his ear asking this question or that. My biggest problem is he never has enough time for me (yes, Roger, consider this a public plea.). Roger just has that knack for being able to communicate an idea in a way that is easy to understand and makes a lot of sense. And always in a way that sticks with you. That’s the gold part for a communications person like me.
Hold on, it’ll make sense in a minute.
I came across this article from Mark Gunther of the energy collective titled “Natural Gas: the Rodney Dangerfield of fuels.” After my initial chuckle, I thought “how true” and clicked on the link to read. Sure enough, “’We’re the Rodney Dangerfield of fuels,’ says Roger Cooper, executive vice president of policy and planning at the American Gas Association” is the opening to the second paragraph.
Really, I was just looking for an excuse to post some old Rodney video. Enjoy.
Of course, it’s Roger. I should have known. Roger has been pointing out to me ever since I got here that natural gas doesn’t get a lot of respect when you consider it meets 25 percent of our nation’s energy needs.
I’ll let you read the article yourself. It’s a good read and includes links to a lot of the different sides of the energy conversation. There’s even audio from the actual interview if you want it.
I will draw out some things that you should take note of though.
- A group called the Potential Gas Committee, which is based at the Colorado School of Mines, has just reported that the U.S. has about a 100 year supply of natural gas, assuming we continue to consume it at today’s rates. See our press conference here.
- Natural gas is now. Natural gas is here. Natural gas has a smaller carbon footprint than any other fossil fuel—burning natural gas produces 43 percent less CO2 than coal and 28 percent less than fuel oil. And this number could be going down. A company called Atlantic Hydrogen is developing a “patented plasma technology that removes some of the carbon from natural gas pre-combustion.” Look for more on this soon. In addition, nearly all of the natural gas burned in the U.S. is produced in this country or in Canada.
- Natural gas is very efficient. It takes less natural gas to serve 65 million homes today than it took to serve about half that number in 1970. Homes using natural gas generate on average fewer greenhouse gas emissions that homes using electricity. A typical all-electric home on average produces 10.8 tons of CO2 per year while an all-natural gas home produces 7.2 tons of CO2 per year.
The last thing I’ll point out here is an interesting observation from Mark, the author. “The DOE logo, [above here], includes an oil derrick, wind turbine, hydro and the nuclear symbol, but nothing about natural gas.” I’ll have to check on that one.
What do you think? Where is natural gas in our energy future?
Natural gas market indicators
Natural gas prices sometimes track oil prices and rig counts drive production. Or at least this is how it is “supposed to work.” Though it may in the future, the gas market is not operating in accordance with these long held tenants.
Production is flat despite a significant and rapid decline in rig counts, and the price of gas has moved up modestly while oil has, on a percentage basis, skyrocketed. While a few months of abnormal behavior does not mark a sea change in the natural gas business, many market analysts are reevaluating many fundamental assumptions about how the market operates.
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.
True Blue Natural Gas Blog from the American Gas Association (AGA)- Natural Gas Roundtable: Caruso and Hatley
- Focus on Low-Carbon Solutions
- Congrats to Alagasco on their expanding natural gas fleet
- Natural Gas Market Indicators
- Spectra Responds to Natural Gas Pipeline Concerns
- Don’t Miss Out—Make Sure to Register for the World Shale Gas Conference & Exposition
- Dave Parker Receives Prestigious Key Award from ASAE and The Center
- Department of Energy proposes to use full-fuel-cycle analyses in developing energy efficiency standards
- High dividend tax rates will negatively impact utilities
- White House Supports Keeping Maximum Dividend Tax Rate At 20%
