Energy Exchange

Wyoming’s Opportunity to Head off Pollution at the Pass

By Jon Goldstein / Published: July 11, 2014

$frackingwyo_92689731_rf_0$ Yesterday we explored how Wyoming regulators and Governor Mead are making progress on a set of potentially strong air pollution measures in Pinedale and across the Upper Green River Basin of Southwestern Wyoming.

But today a similar drilling boom is happening in Converse and Campbell counties in the northeast area of the state. Unfortunately, none of these strong, sensible new air pollution requirements apply in these areas.

The numbers are stark. A full 80 percent of the current drilling in Wyoming is occurring out in the part of the state with the least restrictive air quality controls. The U.S. Bureau of Land Management is currently beginning a process to consider as many as 5,000 new oil and gas wells in Converse County alone, and equal or greater drilling activity is expected in neighboring Campbell County over the next decade.

Also posted in Air Quality, Methane, Wyoming / Comments are closed

Goldman Sachs Supports Methane Policy, and Why it Matters

By Ben Ratner / Published: July 10, 2014

Source: Shutterstock

Good energy policy ideas can come from all corners, and Wall Street is no exception.

Goldman Sachs recently served up a powerful case for action on methane in a stroke of market logic grounded in data. In a recent report, the investment bank argues that environmental regulation is more than a necessary evil when it comes to oil and gas development – it’s a vital enabler for economic growth.

There’s power in diverse groups coming together.

Goldman’s insight for the U.S. oil and gas industry – that the current environmental policy vacuum is a major cause of investor queasiness – suggests that markets can help drive environmental progress. Read More »

Also posted in General, Methane / Read 6 Responses

A Wyoming Two Step for Better Air Regulations

By Jon Goldstein / Published: July 10, 2014

Photo credit: G. Thomas at en.wikipedia

Wyoming is a national energy leader, producing more BTU’s from federal lands than every other state combined. It also has a long history of leading the nation on smart, sensible oil and gas air pollution regulations. The Cowboy State was among the first to require reduced emission completions (RECs or “green” completions) to control emissions from newly drilled oil and gas wells. It has also implemented some of the country’s best requirements to find and fix leaky oil and gas equipment.

The state now has an opportunity to continue this tradition by tightening controls on existing oil and gas pollution sources in the Upper Green River Basin. Draft rules recently released by the state show promise, and with key improvements–including expanded leak inspections and extending emission controls to compressor stations–these new requirements could again emphasize the state’s role as a national leader on oil and gas regulation. Read More »

Also posted in Air Quality, General, Wyoming / Read 1 Response

North Dakota Steps Up to Curtail Wasteful Flaring, But Will it be Enough?

By Dan Grossman / Published: July 3, 2014

Everyone agrees that burning off as much as a third of the natural gas produced in North Dakota is a terrible waste of an important natural resource. The flaring problem arises out of the fact that energy companies are primarily drilling for oil in North Dakota. A lot of natural gas comes out of those very same wells, though; and since the infrastructure isn’t in place to take that gas to market, companies end up flaring gas as a “waste” byproduct of oil production.

This isn’t a problem that can be fixed overnight. Building the gathering systems, processing capacity and transmission pipelines to get this gas to market requires major planning and investment. But we also have to recognize that in a capital-constrained world, the incentive is for companies to put their next dollar toward the next oil well – not toward lower-return (but still lucrative) investments in gas infrastructure. If a company’s bottom line was all that mattered, that might be fine. But we have other issues at play here.

Flaring natural gas undermines national energy security, has negative impacts on the region’s air quality, results in unnecessary greenhouse gas emissions and represents millions of dollars of lost revenue for the state, local governments, schools and mineral estate owners. In fact, in 2012 alone, flaring resulted in the waste of around $1 billion in fuel – or enough gas to heat more than a million homes.

Also posted in General / Tagged Flaring, Natural Gas, north dakota | Read 1 Response

Financial Sector Focuses on Risks from Methane

By EDF Blogs / Published: July 2, 2014

By: Sean Wright, Senior Analyst, Corporate Partnerships

Source: Ash Waechter

Environmental concerns about methane emissions continue to grow as more people understand the negative climate implications of this incredibly potent greenhouse gas. Now the financial community is taking note of not only the environmental risks but the impact of methane emissions on the oil and gas industry’s bottom line. Methane leaks not only pollute the atmosphere, but every thousand cubic feet lost represents actual dollars being leaked into thin air—bad business any way you look at it.

Last week the Sustainability Accounting Standards Board (SASB)—a collaborative effort aimed at improving corporate performance on environmental, social and government issues—released their provisional accounting standards for the non-renewable resources sector, which includes oil and gas production.

These accounting standards guide companies on how to measure and disclose environmental, social, and governance (ESG) risks that impact a company’s financial performance. Their work highlights the growing demand amongst investors and stakeholders for companies to report information beyond mere financial metrics in order to provide a more holistic view of a company’s position.

Read More »

Also posted in Energy Financing, Methane / Tagged Finance, Methane, Natural Gas | Read 4 Responses

Key Legislators Weigh the Economic Impact of Natural Gas

By Elgie Holstein / Published: June 27, 2014

Courtesy RF, iStock

This week, during a special hearing by the Joint Economic Committee of Congress, legislators gathered a cross-section of industry, policy, and environmental leaders to testify about the economic impacts of increased natural gas development. I was one of the witnesses, on behalf of Environmental Defense Fund, arguing that natural gas can only be a net winner for the economy if government acts fast to limit the impacts of new hydrocarbon development on air, water, and the global climate.

There is no question that unconventional gas development is lowering energy costs, creating new jobs, and supporting more domestic manufacturing. But it also poses real and substantial risks to public health and the environment – as well as a growing threat to the industry’s social license to operate. Continued expansion of U.S. gas development must be balanced with a strong commitment to protect against these impacts.

The congressional committee of both senators and representatives exhibited sharply differing perspectives on expanding natural gas regulation. The core question before all levels of government is whether the appropriate steps are being taken to implement and enforce the regulations necessary to minimize the risks. The answer: not yet.

Also posted in Air Quality, Climate, Washington, DC / Read 1 Response