Energy Exchange

Houston: We Have Another Problem

By Ben Ratner / Published: February 22, 2016

As oil and gas leaders converge on Houston for the year’s largest industry conference, CERA Week, falling oil and gas prices are understandably top of mind and a cause for concern for the industry. But there is another decline story underway in industry, one that poses a risk to the future of hydrocarbons in a carbon constrained world – a story of falling trust.

While today’s $30 oil price is disruptive in the short-term, new information on the very low level of public trust in the oil and gas industry should prompt concern from executives and investors about possible longer-term disruption to companies’ social license to operate.

The Industry’s Public Trust Problem

Recent polling conducted by KRC Research for EDF found that a mere 29 percent of Americans trust oil and gas companies to operate responsibly. Strikingly, even among Republicans, the trust rate is under 40 percent.

Digging deeper into the numbers, just 15 percent of Americans trust the oil and gas industry to be accurate in disclosing how much pollution they cause.

So what do these results mean? Read More »

Also posted in General, Natural Gas / Read 4 Responses

After the Aliso Disaster: Less Gas Storage, More Clean Energy Through Increased Market Efficiency

By EDF Blogs / Published: February 22, 2016

By: Mark Brownstein & Tim O’Connor

The nearly four-month disaster at the Aliso Canyon storage facility owned by Southern California Gas Company has spurred widespread calls to close the sprawling underground reservoir, and cast intense scrutiny on the 13 other similar facilities around California. But others, including Governor Jerry Brown and key state agencies, say the facilities may be needed to keep the electric grid running reliably.

Ironically, one reason for dependence on this fossil fuel is California’s renewable energy boom.

As things currently stand, there aren’t enough responsive resources on the grid to simultaneously manage the large daily swings in consumer electricity demand typical in California and swings in renewable energy output due to variations in time of day and weather.

A more robust grid in combination with innovative energy storage and energy management technology will eventually reduce these swings, but may take decades to fully deploy. Until then, fast-acting gas-fired generation is necessary for balancing system operations. This has become a rallying cry for SoCalGas and the rest of California’s oil and gas industry in the wake of Aliso Canyon. Read More »

Also posted in Aliso Canyon, California, General, Natural Gas / Read 2 Responses

When The Polluter Lobby Pollutes The Facts on Methane

By Mark Brownstein / Published: February 18, 2016

The oil and gas industry emits at least 7 million metric tons of methane pollution into the atmosphere each year with a growing mountain of scientific evidence that suggests the real amount is actually even higher. Despite the fact that this pollution has an undue effect on global warming, the industry effectually wants us to “be ok” with this pollution.

The latest piece from industry lobbying group Energy In Depth (EID) claims that recent methane research finds “very low emissions,” and that regulatory action to reduce them further is unwarranted. It isn’t the first time we’ve heard this argument and for that reason, here’s a refresher on the facts.

Also posted in Natural Gas / Read 3 Responses

California Back In The Saddle On Tackling Oil And Gas Pollution

By Tim O'Connor / Published: February 17, 2016

After nearly ten months of waiting, California regulators at the state’s Air Resources Board stepped up this month in a big way to reduce emissions of the powerful greenhouse gas methane from the state’s oil and gas industry.

For a state that prides itself on leading the charge to fight climate change, it was odd to see California had been lagging behind others when it came to addressing methane pollution. After all, methane is such a powerful short-term climate forcer that it’s responsible for a quarter of the warming we feel today. Now, by introducing long-awaited draft rules tackling the problem, the golden state has put itself back in the game.

A rule worthy of praise – with still room for improvement

Several provisions in the draft rule represent some of the strongest standards in the nation and have the potential to seriously advance the conversation on methane controls. Among them, the new rule proposes to cover both new and existing sources in oil and gas fields – something that should draw the federal government’s attention as it contemplates whether to include both types of categories in its proposed national rules. The rule also uses better science than prior proposals – evaluating methane’s impact based on its 20-year impact rather than a longer 100-year value. Read More »

Also posted in Natural Gas / Read 2 Responses

BLM’s Proposal To Reduce Methane – Why It Matters For America

By Jon Goldstein / Published: February 8, 2016

13133084873_52c4fb062d_z The west is rightly known for mountain views and desert vistas. Many of these landscapes are managed by the U.S. Department of Interior’s Bureau of Land Management (BLM) on behalf of all Americans. But something else is a major part of the region as well – tens of thousands of oil and gas wells and their associated infrastructure.

More than 90 percent of oil and gas production on BLM lands comes from the Western U.S. The tax and royalty revenue generated by this production is used to fund local infrastructure needs –schools, roads and other improvements — in rural and tribal communities. But due to outdated policies (they have not been significantly revised in 30 years), too much of our natural gas has been going to waste. That means these communities, and American taxpayers in general, are losing out.

In fact, in 2013, oil and gas companies threw away $330 million worth of the public’s gas according to a recent report – shortchanging the communities that rely on the revenue from these resources most. Read More »

Also posted in BLM Methane, Natural Gas / Read 1 Response

Preventing Future Aliso Canyon-Sized Gas Leaks – the Importance of Well Integrity

By Scott Anderson / Published: January 28, 2016

AlisoCanyon4 Southern California is now in month three of one of the country’s worst environmental disasters. In October 2015, a natural gas storage well operated by SoCal Gas sprung a massive leak hundreds of feet underground, releasing nearly 1,400 tons of gas into the air each day at its peak. Thousands of local residents impacted by noxious fumes and oily mist have been evacuated from the communities around the Aliso Canyon storage field. Because the leak is so large and technically complex, SoCal Gas has been working for months to fix it – so far without success.

In January, California Governor Jerry Brown declared a State of Emergency because of the ongoing leak. In addition to addressing the immediate disaster at Aliso Canyon, Gov. Brown ordered emergency regulations for the state’s natural gas storage industry and has directed several state agencies and commissions to prepare and submit reports and propose how to prevent similar leaks at similar sites across the state. Read More »

Also posted in Air Quality, Aliso Canyon, California, Natural Gas / Tagged well integrity | Comments are closed