Monthly Archives: October 2017

Large gas buyers set environmental performance indicators for how gas is produced

Co-authored by Beth Trask

Utilities who deliver gas to homes and businesses, and/or generate electricity from gas, are important stakeholders along the natural gas supply chain. They are the face of natural gas to their customers; and, thus, they need to know that the gas they sell is being produced in the most responsible and transparent way possible—one in which the impacts to the air, water, and communities are minimized.

This week, some of the nation’s largest gas buyers joined forces in a new voluntary coalition, the Natural Gas Supply Collaborative (NGSC). Together, they released a set of 14 performance indicators—spanning air, water, chemicals and community/worker safety—that they’d like to see natural gas companies report on publically on an annual basis.

Developed in consultation with environmental NGOs, including EDF, and with input from a handful of gas company representatives, these indicators are positive step toward a more transparent gas supply chain in which buyers and sellers can have informed dialogue about how gas is being produced.

We encourage more large gas buyers to join the coalition and get involved in this conversation.

Customers are watching Read More »

Posted in Natural Gas / Comments are closed

If we don’t talk about water, are we really talking about resiliency?

It’s time to rely on water-smart power

Energy Secretary Rick Perry is trying to prop up coal and nuclear companies under the guise of enhanced “resiliency.” The Department of Energy’s (DOE) proposal does not define resiliency, nor does it even make clear what resiliency means in the context of the electric grid.

Resiliency in the energy sector generally, however, depends on water. The majority of the electricity that powers our world runs on century-old technology, guzzling down our most precious resource: water. Depending on the type of technology, generating just one megawatt-hour of electricity could use anywhere from 500 to 50,000 gallons. Solar and wind, on the other hand, use negligible amounts of water, and energy efficiency uses none.

Yet neither the DOE’s proposal nor its recent study on grid reliability touches on climate and water. Specifically, there is no mention of how climate change affects water availability or what that means for electric reliability. If Secretary Perry is really concerned about resiliency, water should be a key focus. And as a former governor from a drought-stricken state, he should know better. Read More »

Posted in Clean Energy, Electricity Pricing, Energy-Water Nexus, Grid Modernization / Read 1 Response

Methane momentum builds, time for Canada to follow through with strong action

The call to reduce oil and gas methane emissions landed a one-two punch this week that should provide Canada all the motivation it needs to get ahead of this global trend and prepare its energy industry for the future.

First, the International Energy Agency’s (IEA) World Energy Outlook analysis stated the future of the natural gas industry will depend on “industry demonstrating credibly that methane emissions from oil and gas operations are being minimised.” IEA reports as much as 76 million metric tons of methane is emitted around the world each year from both oil and gas facilities. For customers and companies, that’s $34 billion dollars of lost product and profit. There are also significant health and air quality benefits to reducing these emissions as hazardous air pollutants and smog-inducing toxins are removed when companies control methane pollution.

IEA also highlighted that a 75 percent reduction of those emissions is possible today using existing technologies. To put that in context, a reduction on that order would have the same short term climate impact as removing all the vehicles in the world from the road. For all of us, it’s one of the quickest and most affordable opportunities to slow climate change. Read More »

Posted in General, Methane, Natural Gas / Tagged , , | Comments are closed

Oil & gas CEOs up their methane pledge: Here’s what to watch for as promises turn to action

This post was co-authored by Drew Nelson

The CEOs of ten leading oil and gas companies today announced intentions to move toward “near-zero” methane emissions, pledging to set a quantitative reduction target by this time next year. At first blush, it might sound like a modest step – a promise to make a promise. In fact, the CEOs announcement constitutes an important and welcome recognition that oil and gas methane emissions impact the climate, are too high, and must be reduced. The new pledge comes just days after the International Energy Agency previewed its analysis showing that methane is a “critical issue for the long term natural gas outlook” and steep emission reductions are possible with today’s technology, and enormously cost effective.

From Social Issue to Business Issue

The 10 companies, which together are responsible for 20 percent of global production, joined forces three years ago to form the Oil and Gas Climate Initiative. Last year, they invested $1 billion to accelerate commercial deployment of low carbon energy technologies. The new pledge is the next important step on the road to decarbonizing their operations, with methane playing a central role. Read More »

Posted in Climate, Methane, Natural Gas / Tagged | Comments are closed

Three reasons Westerners are fighting to defend federal methane waste standards

Westerners are a hardy bunch. They are used to working through adverse conditions and making the best of what the land provides. That includes fighting to defend requirements from the U.S. Bureau of Land Management that are designed to cut wasted natural gas and maximize revenue for community projects. This is despite repeated attempts from the Trump Administration to undercut these regulations and sell taxpayers short.

Here are three reasons communities and individuals from across the Mountain West are fighting to defend methane waste rules:

  1. Westerners hate waste: $1.8 billion and counting. That’s the value of taxpayer-owned natural gas that has been wasted since 2013 when the BLM began developing a new set of standards to address this problem. The rules finalized last November would help cut that waste and recover millions more in tax and royalty revenues for the western communities faced with impacts from oil and gas development that need it most.

Read More »

Posted in BLM Methane, General, Methane, Natural Gas / Comments are closed

Data shows two companies stand alone in their New England pipeline practices

This blog post was co-authored with Levi Marks and Matthew Zaragoza-Watkins

Earlier this month we—a  team of economists at EDF, UC Santa Barbara, University of Wyoming and Vanderbilt University—released  a new study on the natural gas pipeline markets in New England which revealed a distinctive pattern showing that local gas utilities owned by two companies—Eversource and Avangrid—routinely ordered large deliveries, then sharply reduced those orders at the last minute. This “down-scheduling” consistently came too late for anyone else to buy that capacity, thus limiting available gas supply in the wholesale market.

One question people ask: Were these two companies acting any differently from other firms, and how can you tell?

We approached this question as we would any research project by thoroughly investigating the data. Over 18 months, we analyzed scheduled gas flows for all 117 delivery points (nodes) on the Algonquin pipeline for every hour of every day in a three-year study period from August 1, 2013 to July 31, 2016, which we downloaded from the pipeline’s public reporting web site. In total, we looked at approximately eight million data points generated from the scheduling patterns of 18 local gas utilities owned by 11 parent companies.

What we found in those public data was clear and irrefutable. Local distribution companies owned by two of those parent companies—and only utilities belonging to those parents—consistently behaved differently than all the others. We don’t know why, but there’s no question that it occurred. The pattern is clear when you visualize the data. Read More »

Posted in Gas to Clean, General, Natural Gas / Comments are closed