Selected category: Natural gas

As Oil and Gas Industry Goes Big in the Permian, Efforts to Tackle Emissions Will Be Telling

By Jon Goldstein and Ben Ratner

Much ink has been spilled recently about big new oil and gas investments in the Permian Basin across West Texas and Southeastern New Mexico. What some are dubbing “Permania” includes a more than $6 billion investment by ExxonMobil in New Mexico acreage and an almost $3 billion one by Noble Energy across the border in Texas, among others. But a large question remains: will these types of big bets also come with the needed investments to limit methane emissions?

It’s not just an academic question. The answer will go a long way toward revealing if industry actors plan to operate in a way that serves the best interest of local communities and taxpayers. Unfortunately, New Mexico is currently the worst in the nation for waste of natural gas resources from federal lands (such as those that are found in large parts of the state’s Permian Basin). Largely avoidable venting, flaring and leaks of natural gas from these sites also puts a big hole in taxpayers’ wallets, robbing New Mexico taxpayers of $100 million worth of their natural gas resources every year and depriving the state budget of millions more in royalty revenue that could be invested in urgent state needs like education.


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More Subsidies than You Think Influence the Cost of Electricity

The Texas electricity market is evolving. Low prices have helped natural gas become the dominant electricity generation resource, surpassing coal for the first time. The state’s unique competitive wholesale market, along with recently built transmission lines, have led to exciting opportunities for the rapid development of wind and solar generation. But in looking at the cost of various fuel sources and Texas’ energy future, confusion about electricity subsidies needs to be addressed.

Yes, wind and solar power have recently benefitted from the federal Production Tax Credit and Investment Tax Credit. That said, it’s important to recognize that natural gas and coal generation have enjoyed state and federal incentives for a century, and continue to do so.

The tax benefits for wind and solar generation are not the same as those for fossil fuel generation, but each plays a similar role: Tax benefits affect the final cost of electricity. Read More »

Also posted in Coal, Renewable Energy| Read 1 Response

Environmental Injustices in the Air We Breathe

air-pollution-smoke-rising-from-plant-towerThis post originally appeared in La Voz de Esperanza.

For years now, San Antonio residents have endured unhealthy levels of ozone in the air we breathe. Yet, the city of San Antonio has narrowly avoided violating the US Environmental Protection Agency’s national ozone standards, designed to protect human health. But San Antonio will soon have to make changes to its approach to air quality.

In October of last year, the EPA, responding to the findings of recent health studies, lowered the maximum allowable ozone level. On April 8 of this year, San Antonio exceeded that threshold, which means our region is not meeting EPA’s ozone air quality standards.

This matters because ground-level ozone can affect our health and often has disproportionate impacts on racial and ethnic minorities. The good news is that there are lots of ways to reduce ozone. Read More »

Also posted in Air Pollution, Environmental Justice, Ozone, Uncategorized| Comments are closed

Market Forces are Driving Coal’s Demise and Cleaning Up the Grid in Texas

power lines unsplash croppedWhat do economists and environmentalists have in common? When it comes to Texas’ energy future, more than you may think.

According to a new study from the Brattle Group, a reputable, national economics consulting firm with extensive experience in Texas’ electricity sector, market forces are leading to coal’s rapid decline in the Lone Star State. Moreover, rapidly-growing cleaner electricity sources like natural gas and renewable energy will be able to entirely meet Texas’ additional power needs – without increasing electric bills. We couldn’t agree more.

That said, we’re confident the impacts are going to be even more powerful in terms of Texas’ wind, solar, and energy efficiency. And the latest report from Texas’ main grid operator, the Electric Reliability Council of Texas (ERCOT), continues to support that expectation. Read More »

Also posted in ERCOT, Renewable Energy| Comments are closed

Texas’ Evolving Energy Reality: Clean Energy Uses Less Water

wind water flickrIt’s been an interesting time for water in Texas. Beyond the incredibly wet and cool spring we’ve been having, Memorial Day saw the second year in a row of record-breaking floods.

And a few weeks ago, the Texas Water Development Board (TWDB) asked for comments on the draft 2017 State Water Plan. The TWDB is the state agency responsible for water planning, and every five years it produces a strategy that “addresses the needs of all water user groups in the state – municipal, irrigation, manufacturing, livestock, mining, and steam-electric power.”

In the five years since the last state water plan, Texas has gone from one extreme to the other in terms of water: from the throes of a devastating drought to historic flooding that resulted in some reservoirs being full for the first time in 15 years.

In this climate of feast or famine, we need to better understand our water supplies and conservation efforts, both of which have a strong tie to our energy choices. That’s why Environmental Defense Fund (EDF) weighed in on Texas’ draft water plan. Not only does the state significantly overestimate the amount of water needed to make electricity, but a more comprehensive view of energy in relation to water demand and supply would benefit the 2017 State Water Plan and future plans. Read More »

Also posted in Energy-Water Nexus, Renewable Energy| Read 1 Response

Deep in the Heart of Texas…Methane is Leaking Every Day

In new footage captured just weeks ago, an ominous cloud of what looks like black smoke seeps from a pump jack deep in the heart of a Texas oil field. But there are no fire trucks rushing to the scene. No first responders in hazmat suits scrambling to uncover the source of this relentless dark cloud. This is because that black smoke depicted is actually methane, an invisible but dangerous climate pollutant.

If this scene looks familiar, it’s because not long ago, footage of a major methane gas leak in Southern California also made international headlines. That leak has since been plugged, but as the new infrared footage released today reveals, every single day methane continues to leak in massive quantities from oil and gas facilities across the country and here in Texas. Read More »

Also posted in Methane| Comments are closed
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