×

Energizing our nation’s energy policy

Within the next five years, demand for America’s natural gas is projected to nearly double. That is great news for Ohio and other gas-producing states. But any celebration would be premature.

Now, more than ever, we need a national energy policy that encourages responsible drilling, provides access to our energy resources, and streamlines the permitting process for new gas pipelines.

In order to accomplish the shift from coal to natural gas for electricity generation, utilities expect to add 90,000 megawatts of natural gas power capacity by 2019. Those new plants will burn about 11 billion cubic feet (bcf) of natural gas per day. For comparison’s sake, our existing natural gas plants, which generate about 35 percent of U.S. electricity, burn roughly 25 bcf of gas per day. Utilities are on track to increase demand for natural gas by 44 percent.

The growing demand for natural gas from the power sector will be nearly equaled by coming demand for natural gas exports. New pipelines are delivering U.S. natural gas to our trade partners in Mexico and Canada. Liquefied natural gas (LNG) terminals are poised to start delivering U.S. natural gas to buyers in Europe and Asia. The nation’s first export terminal is going to begin operation in the next few weeks in Louisiana. Five others are currently under construction. U.S. LNG export capacity is likely to reach 10 bcf per day by 2020.

Between rising demand for gas from exports as well as from our power sector, we are going to need far more gas production from rock formations like Ohio’s Utica shale and additional infrastructure to move it. To be clear, this isn’t a problem in need of fixing. It’s rather a fantastic opportunity that comes with tremendous economic and environmental benefits for Appalachia.

Increased use of natural gas for electricity generation is helping us transition away from coal, reduce carbon emissions and do so without putting an undue burden on ratepayers or taxpayers. Natural gas exports are driving tens of billions of dollars in new investment and will help provide a more competitive global marketplace for natural gas, a boon for many of our closest allies and a thorn in the side of traditional gas exporters like Russia.

We have the resource to meet this demand. As natural gas consumption grows in the years ahead, expect our drillers to respond in kind. Thanks to the shale revolution, U.S. consumers enjoy some of the cheapest natural gas prices in the world. That’s unlikely to change. But, if we are unwilling to update our energy policies to reflect our new energy reality, we could become our own worst enemy.

Overregulation – a serious and growing threat – could make it more difficult and costly to produce the natural gas we need. Limiting access to vast quantities of natural gas on federal lands out West, right here in Ohio, or offshore in the Gulf of Mexico, as well as along the Atlantic seaboard, could prove to be a costly mistake. Failing to modernize the nation’s archaic pipeline permitting process – doing so is currently a proposal in the Senate’s new energy bill – could also prove a blunder.

There’s no question we can produce the natural gas consumers need but we must have the right policies in place to ensure we can build the infrastructure to move it where it’s needed most. With great opportunity comes great responsibility. The natural gas industry has proven it’s ready to meet the nation’s energy challenges. Now, can policymakers hold up their end of the bargain? That’s a question that should get answered soon enough!

***

Dr. Robert W. Chase, P.E., is an emeritus professor of the Marietta College Department of Petroleum Engineering & Geology.

NEWSLETTER

Today's breaking news and more in your inbox

I'm interested in (please check all that apply)
Are you a paying subscriber to the newspaper? *

Starting at $4.62/week.

Subscribe Today