Liberal States Like CA & NY Losing the War to Ban Natural Gas Use
Leftists in states like California, Washington, and New York either already have, or are attempting to, outlaw the use of natural gas by homes and businesses. The first step they take is to disallow any new buildings to be connected to natural gas delivery lines. Eventually, they will force existing customers to stop using natural gas and force them to use electricity instead for heating and cooking. Or simply go without heat and cooking (they really don’t care). Leftists are drunk with their own power to force other people to do what they want them to do. Meanwhile, other states, like Texas, Florida, and many others are blocking efforts to block natural gas. The pro-gas states are actually winning the gas-ban war.
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Yesterday the U.S. Dept. of Transportation’s Pipeline and Hazardous Materials Safety Administration (PHMSA) submitted an advisory bulletin to the Federal Register. The notice is for pipeline operators. It reminds them that PHMSA has a very big stick that the agency intends to use to force pipeline owners to clamp down on fugitive methane emissions. PHMSA is using the Protecting our Infrastructure of Pipelines and Enhancing Safety (PIPES) Act of 2020, passed and signed during the waning days of the Trump administration, as a big stick to force expensive upgrades to capture every last molecule of CH4, supposedly to cut down on man-made global warming.
Two and a half years after Energy Transfer’s (ET) 24-inch Revolution Pipeline entered service in western Pennsylvania and exploded following a landslide (in September 2018), the pipeline finally returned to service in March of this year (see 
Pennsylvania’s Democrats are having trouble selling the Regional Greenhouse Gas Initiative (RGGI), a carbon tax aimed at shutting down PA’s coal and natural gas-fired power plants, and by extension shutting down many shale-related jobs in the state. The Dems can’t paper over the fact that RGGI will spell massive layoffs. So what do they propose? Government handouts to those who get laid off, paying them literally pennies on the dollar in government welfare checks in return for “saving the planet” by shuttering coal and gas-fired plants (and putting people out of work). That’s the brilliant solution proposed in a bill offered up by southeast PA state Senator Carolyn Comitta (D-Chester County).
Weather always has been, and remains, THE prime factor in the price of natural gas. In wintertime cold temps lead to the use of more natural gas to burn as heating fuel. In the summer months, high temps mean more electricity is used to power air conditioning units. Last Friday forecasters predicted a spike in temps in the midsection and northeast parts of the country. Along with that forecast came a spike in the price of electric power in both regions, and closely tied to it, a spike in the price of natural gas in both regions.
One of our favorite Forbes contributors, Jude Clemente, has written an article detailing how LNG (liquefied natural gas) usage worldwide along with exports from the United States, have both come roaring back now that the pandemic is beginning to appear in the review mirror. There is a fantastic chart in the article (below) identifying the 12 biggest U.S. LNG importers by country. The number one importer may or may not surprise you: South Korea. We bet the number two importer will surprise you (it did us)…
For the past seven years a privately-owned dump near Scranton, the Keystone Sanitary Landfill, has sought to expand in order to accept more garbage. The dump is also authorized to accept Marcellus Shale drill cuttings–rock and soil leftover after drilling. Yesterday the Pennsylvania Dept. of Environmental Protection (DEP) announced after seven years of study, hearings, meetings, and whatever else the DEP does to fiddle away the time, they have finally approved Keystone’s request to expand.
In June 2020, the Pennsylvania Supreme Court denied hearing an appeal for a case from Sunoco Logistics Partners about a permit for a pump station in Lebanon County, PA used to help flow natural gas liquids through the Mariner East pipeline system (see 
How does this work in the real world? Gas and electric customers on Aquidneck Island (part of Rhode Island) ran out of natural gas leaving thousands without heat on the island for days during a frigid cold snap in 2019. Customers without heat subsequently launched a class action lawsuit. On Wednesday a judge ruled the lawsuit may continue. Yet RI legislators will not allow the utility, Narragansett Electric (formerly part of National Grid) to implement any permanent fixes (like a new pipeline) to prevent another outage from happening! And it will happen at some point. This is what passes for “justice” in Rhode Island.
Calling it “an extraordinary year for the global gas industry,” the International Gas Union (IGU) yesterday released its 12th annual World LNG Report–the world’s most comprehensive public source of information on key developments and trends in the LNG sector (full copy below). From huge drops in demand levels at the height of the pandemic lockdowns, through exceptional spikes when the winter deep freeze sent the world’s energy systems into crisis, the IGU says LNG, quite literally, delivered.
Enjoy the Republican majority on the Federal Energy Regulatory Commission (FERC) while you have it. That majority will end soon. Three FERC Republican commissioners have approved Enable Midstream Partners’ Gulf Run natural gas pipeline which will, in part, connect Marcellus/Utica gas supplies to the Gulf Coast for exporting (see