Natgas Plants Produce 8X More Electricity than Wind, 16X Solar
We spotted an intriguing editorial in the Williamsport Sun-Gazette. It quotes a study by “an independent, market-based think tank” with some phenomenal findings. If you invest $1 million in solar, over a 30-year period you’ll get around 25 million kilowatt hours of electricity. If you invest that same $1 million in wind, you’ll get 50 million kilowatt hours over a 30-year period. But if you invest the same $1 million in natural gas-fired electric generation (cost to extract the gas, etc.), you’ll get 400 million kilowatt hours of electricity over 30 years! Natgas yields 8 times as much electricity per dollar as wind, and 16 times as much as solar.
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PJM is the largest electric grid operator in the U.S. It serves 65 million people in 13 states plus the District of Columbia (including PA, OH, and WV). Last week PJM released a summary of findings for a report that evaluates PJM’s “resiliency”–ability to deliver electricity even under adverse conditions and heavy loads. Know what they found? PJM is reliable and can withstand periods of highly “stressed” conditions, including the phaseout of more coal-fired power plants. PJM, perhaps more than any other grid, relies increasingly on natural gas. The study shows reliance on Marcellus/Utica natgas is solid, contrary to the what scaremongers claim. There is no reason to worry.
What’s the best, most efficient way to produce electricity? The winner, hands down, is natural gas. That’s according to a recent report from the Manhattan Institute titled “The Real Fuel of the Future: Natural Gas” (full copy below). The report indicates that dollar-for-dollar, investment in natural gas generates 16 times the amount of power as solar panels, and eight times the amount of windmills. Tell us again how superior wind and solar are!
MDN told you in July that Philadelphia antis were paying $50,000 to a “consultant” to produce a faux report that will say the Mariner East 2 (ME2) natural gas liquids pipeline is dangerous, a nightmare waiting to happen (see 
PJM Interconnection is a regional transmission organization (RTO) operating the electric grid in all or parts of 13 states and the District of Columbia, including PA, OH and WV. It is the largest competitive wholesale electricity market in the U.S. (second largest in the world), with more than 1,000 companies (1,376 generation sources) as members, serving 65 million customers with 177 gigawatts of generating capacity. It’s yuge! EIA published numbers yesterday quantifying natural gas-fired generation in PJM. The upshot: natural gas has eclipsed coal in electric generation in PJM, and PJM uses more natgas plants in both raw numbers and as a percentage of electricity generated, than any other power grid.
It seems that universities in states outside the Marcellus region are fascinated with the Marcellus. They love to “study” it. Or at least, the Marcellus is a goldmine for them in research grants. The latest outsider to study the Marcellus is the University of Tennessee at Knoxville. Using a National Science Foundation grant, researchers from UT “will look at how aquatic microbial communities are impacted by biocides associated with hydraulic fracking.” That is, they’re studying whether or not fracking, because it has a low presence of chemicals, is creating superbugs that are resistant to antibiotics. Will fracking cause a new Black Plague?
The hits keep rollin’ in. Last month the U.S. Energy Information Administration’s (EIA) monthly “Drilling Productivity Report” (DPR) estimated that this month (in October) the country’s seven major shale plays would produce an amazing, all-time high of 73 billion cubic feet per day (Bcf/d) of natural gas production (see 
In May the U.S. Environmental Protection Agency (EPA) launched a study looking into the possibility of treating oil and gas wastewater and (gasp) releasing the cleaned-up wastewater into lakes and rivers, instead of injecting it back down holes in the ground. Earlier this week the EPA held a public meeting to discuss preliminary findings and to elicit more input from the industry and from Big Green on their study, which is called “
One year ago Chevron Appalachia and People’s Natural Gas teamed up to release a study called “Forge the Future: Pennsylvania’s Path To An Advanced, Energy-Enabled Economy” (see 
The expert analysts at RBN Energy have just published their “fourth and final” in a series of posts looking in detail at E&Ps (exploration & production companies, or “drillers”). One of the groups of E&Ps they examine are “gas-weighted” E&Ps–or drillers who mostly extract natural gas. In looking through the list, you immediately realize every one of them has operations in the Marcellus and/or Utica Shale region. Yes, a few also have operations in other plays, but they all have at least some operations here. The real value in the article is an accompanying spreadsheet comparing various financial metrics (apples to apples)–things like total revenue, lifting costs, production costs, and “pre-tax income,” meaning profitability. How do our drillers compare with each other?
On numerous occasions we’ve pointed out the lunacy of the “keep it in the ground” gang–those who believe we should end the use of all fossil fuels as soon as possible. Why can’t we do it? For many reasons. Here’s just one: petrochemicals. Did you know that all sorts of products you use every day–things like plastics, fertilizers, packaging, clothing, digital devices, medical equipment, detergents and tires–come from oil and gas? Without oil and gas, we’d quickly descend back into the Stone Age, living short, brutish lives. That point was driven home in a new report titled “The Future of Petrochemicals” (full copy below), part of an International Energy Agency (IEA) series that shines a light on “blind spots” in the global energy system.
The Natural Gas Supply Association (NGSA) yesterday released its 2018-2019 Winter Outlook for Natural Gas report (summary below). NGSA says this winter will have warmer than normal temperatures for much of the country. They also predict natural gas demand will reach an all-time high. However, natural gas production will hit all-time highs too. So in the end, prices for natgas (a function of supply and demand) will stay fairly even.
Ever hear of the “cracker effect”? No, we hadn’t either. Not until we read about a new study by a husband and wife team from Washington & Jefferson College. The pair studied the economic impact of cracker plants on surrounding communities–some 34 ethane crackers in 16 counties around the country. Most of the cracker plants are located along the Gulf Coast. The purpose of the study is to accurately forecast what will happen with Shell’s new $6 billion ethane cracker currently under construction in Beaver County, near Pittsburgh. What might the real, measurable economic effect be from Shell’s cracker? According to the authors, the Shell cracker will generate ~7,400 permanent, long-term jobs. Crackers not only create new jobs, they boost wages in cracker counties by nearly 13% over counties without crackers. But counties without a cracker plant benefit too. Counties bordering counties with a cracker plant see lower unemployment rates. No mystery there. While the authors alluded to some negatives from crackers, we were hard-pressed to find any! It sure looks like everything is coming up roses with the Shell cracker. The numbers prove it…
Although the push is on to get Marcellus/Utica molecules to new markets where they can fetch higher prices, there is a group who has benefited in a major way from an abundance of cheap, clean-burning shale gas. That would be the residents and businesses located in West Virginia. Industry group Consumer Energy Alliance (CEA) has just published a new report that reveals WV residents and businesses have saved a cumulative $4 billion from 2006-2016 as a result of the decreasing price of natural gas in the state. You may recall not long ago CEA published a similar study for Pennsylvania (see