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Domenici: Diverse energy mix will meet natural gas crisis
The U.S. Senate Energy and Natural Resources Committee heard a broad array of proposals to address the nation’s natural gas crisis during the half-day seminar it convened Jan. 24.
The committee, chaired by Sen. Pete Domenici, R-N.M., invited virtually everyone associated with natural gas to testify, from producers and regulators to competitors and environmentalists. The gathering attracted an outpouring of ideas, ranging from finding new sources of gas to adopting new strategies for conservation.
Gas producers who testified called for access to more public lands and offshore areas as well as streamlining the permitting and regulatory process. Restrictions enacted 20 years ago may have outlived their usefulness in light of new technology that has improved gas exploration and production, they told the committee.
Several witnesses urged more funding for regulatory agencies to monitor industry activity more closely to ensure that regulations are followed. Others asked for curbs on opportunities to abuse the federal permitting process, especially on litigation that needlessly delays projects.
They also requested federal incentives to encourage production of massive volumes of natural gas locked in oil sands, coalbed methane fields and gas hydrates.
Some witnesses urged greater accountability in the industry. They asked Congress to establish clear interpretations of such laws as the Coastal Zone Management Act and said best practices needed to be identified and clearly articulated to the industry. Areas off limits said to hold gas resources One concern raised repeatedly throughout the seminar was the public’s resistance to gas exploration and gas infrastructure in certain areas such as in the Gulf of Mexico and offshore of the West Coast.
A representative of the National Oceans Association said 80 percent of the areas currently off limits have enough gas resources to meet residential needs in the United States for 15 years.
Related ideas included extending the offshore jurisdictions of coastal states from three miles to 12 miles, and letting the states sort out where drilling should be allowed.
Committee members were told that no other country in the world restricts offshore drilling as much as the United States. Even Canada allows drilling on its East Coast and British Columbia is considering lifting its restrictions offshore.
Other witnesses urged removal of barriers to new pipeline and LNG infrastructure construction. Environmental groups urge conservation However, representatives of The Wilderness Society and the National Resources Defense Council questioned the assumption that restrictions represent impediments to exploration and production.
Conservation ideas included encouraging companies to bring on line their more efficient power plants first and using less efficient plants as back-up units.
As for curbing the volatility of gas prices, Bob Anderson of the Committee of Chief Risk Officers said his organization is working through the demonstration phase of an Energy Data Hub, a not-for-profit entity that would function outside the federal government to provide accurate and timely information on the energy markets.
Others urged the Energy Information Administration to expand and refine its data as well as improve its accuracy and reliability.
While liquefied natural gas imports appear to be a promising source of gas supplies, witnesses said many people harbor unrealistic fears of the explosive range of LNG. Americans need to be understand LNG Domenici said the American people need to be educated to the real hazards of LNG.
One witness noted that state fire marshals have been recruited to take a leadership role in educating Americans on real and imagined dangers of LNG.
When asked about clean coal and nuclear power as potential energy sources for new power plants, The Wilderness Society and National Resources Defense Council witnesses said they could envision coal being used but it must be done right with systems in place to capture harmful pollutants such as carbon dioxide in the plant’s emissions.
The Wilderness Society also endorsed wind power, especially as an economic development opportunity for the Plains States.
Another witness observed that it would take 500 1.5-megawatt wind turbines to equal the electricity generation capability of one gas rig, producing 1.5 million cubic feet a day. At one point, Domenici admonished the participants to focus on what they could offer rather than criticizing other proposals.
“We have to do something that we can get done,” he said. “I don’t think any current source of energy has to worry about any other source. The truth of the matter is we’re going to need all of them to get through this. I’m interested in what we need to do … that will work.”
—Rose Ragsdale
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