In Response to “10 US natural gas export projects you should watch”
Written by Michael Vrtis President of Realgy Energy Services in response to the CNBC article 10 US natural gas export projects you should watch
This article is recognition of the “game changing” affect that natural gas fracking has had on the US.
As recently as 5 years ago; the talk was about importing natural gas. A slew of LNG terminals were proposed to import liquefied natural gas (LNG).
Today, not 1 of those proposed LNG import terminals is on the table or under permit. Rather there are over 15 LNG terminals being proposed or under siting consideration ALL to export LNG.
Quite a turn of events that technology has brought to the US and the world.
Check out the CNBC article: “10 US natural gas export projects you should watch“
In response to “Natural Gas Could Be Bigger Than the Internet, Welch Says”
Written by Michael Vrtis, President of Realgy Energy Services in response to the CNBC article “Natural Gas Could Be Bigger Than the Internet, Welch Says”
I greatly admire Mr. Welch, having worked for him at one time. I read his article with interest and thought his statements invited comment.
Natural gas availability has been plentiful and the availability of more domestic supply calls for long term planning considerations.
U.S. Natural Gas Marketed Production from 1900 to 2012 – courtesy of EIA
In planning for the long term, consider just the following two facts:
The United States already has a more than $2.00 advantage per dekatherm (MCF) over the rest of the world. The US average cost of natural gas is about $4.00 and the remainder of the world is over $6.00.
The amount of gas discovered and presently available has occurred with a method of recovery (hydraulic fracturing or fracking) that has been exempt from most of the Federal environmental regulations. State environmental regulations are not superseded by this Federal action. Thus, states can set their own environmental regulation. The growing state concern is ground water pollution, considering that it takes only 1-2 drops of a petroleum product (frack fluid) to make over 1,000 gals of ground water undrinkable.
So it is not regulation that will prevent natural gas from accelerating the US economy. Instead it is the over inflation of a political issue instead of any economic or environmental issue
Reducing our cost of natural gas has already occurred, reducing it further should not come at the expense of ground water.
Mr. Welch was a great business leader but his comments on regulation of natural gas fracking appear geared more toward political posturing than balancing the economic and environmental concerns that come with recovering natural gas.
Check out the CNBC article: “Natural Gas Could Be Bigger Than the Internet, Welch Says”
In Response to “Natural Gas a Raging Bull in Its Battle With Coal”
Written by Michael Vrtis President of Realgy Energy Services in response to the CNBC article “Natural Gas a Raging Bull in Its Battle With Coal”
The thinking has always been that the US will lead in coal use as we have the largest supply in the world. In our history, coal has contributed no less than 50% of our total electrical energy needs.
Today with the technology of “fracking” the US has discovered an abundance of recoverable natural gas. So much so that US natural gas prices are nearly $2.00 less than the average world price for natural gas (this is a huge economic advantage when you consider our cost for natural gas is about $3.00).
So abundant natural gas drives the cost lower, and so with the lower cost and long term supply natural gas takes market shares from its closest rival; coal. The benefits of this economic decision have environmental benefits.
All sounds great right?
Diversity in our generation supply (a mix of natural gas, coal, nuclear, wind, solar, wave, etc) makes our electric supply gird stronger and more competitive. Consider if we had discovered this natural gas field and had not developed the technology to generate electricity from it more efficiently.
Nothing last forever; while 100 year supply sounds great. Its only one lifetime! This is where US Energy Policy has to step forward. The US should continue to invest in new technology that will not let us deplete the natural gas richness of this country and leave our children more dependent on electric energy without developing a replacement.
Check out the CNBC article: “Natural Gas a Raging Bull in Its Battle With Coal”