BP: NatGas is “Destination” Fuel, Not Just Bridge to Renewables
We have long thought (and written) that to concede the argument that renewable energy–wind and solar–is some sort of nirvana, a magical destination, that renewables are our inevitable energy future–is a mistake. To box ourselves in by buying into the argument that natural gas is a “bridge” to get us lower carbon emissions until renewable heaven arrives is faulty thinking. And now, none other than the CEO of BP is saying the same thing. Not in quite the same words we’ve used, but certainly the same sentiment. BP still bows to the alter of man-made global warming nonsense. But at least they have the guts to say, out loud, that natural gas itself is good enough–the “destination” as a fuel, and not simply a “bridge” to renewables. BP CEO Bob Dudley said that this week on a panel at the World Gas Conference in Washington, D.C. On the same panel, French oil giant Total CEO, Patrick Pouyanne, said, “This idea of natural gas as a transition fuel to renewables is strange.” Yes! Finally some clear thinkers willing to stand up for fossil fuels! We need more people to stand up and shout, “The renewables Emperor has no clothes!”…
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The “best of the rest”–stories that caught MDN’s eye that you may be interested in reading: Decade of study shows PA’s environment, shale drilling can coexist; natgas execs see 100 years of supply; natgas will figure big in pared-down GE’s future; Rick Perry says “stubborn opposition” to fossil fuels keeps billions in poverty; power plant emissions continue to fall thx to natgas; protesters ineffective in stopping pipelines; Panama Canal drops LNG transit restrictions; China trucking LNG to overcome lack of pipelines; natgas costs rising in Canada where fracking is banned; and more!
Sources talking to the Pittsburgh Business Times have tipped the paper that EQT recently idled something like five fracking crews, and that Range Resources recently idled a top hole drilling rig. Oh oh. Is this an early sign that the gas patch is slowing down again? Are we heading into a downturn? Don’t panic. Although there has been some scaling back, both companies say activity levels and most importantly, production levels, are not jeopardized by their actions. Instead, the moves are about “saving money” and “increasing efficiencies.” The truth is, as technology and strategies continue to improve over time, drillers don’t have to drill as many holes in order to produce the same or more than they produce now. The companies in the Marcellus/Utica patch are getting leaner–more efficient at what they do, and how they do it. Yeah, it sucks when local jobs get whacked due to “efficiencies,” but ultimately it’s a good sign. It means the companies are getting stronger and will stick around for the long term–providing jobs and economic benefits in the communities where they work for years to come…
Shell delivered some good news at last week’s Northeast U.S. Petrochemical conference in Pittsburgh: The Falcon ethane pipeline will get built next year (see 
A recent article in the left-leaning Roll Call (official publication for Washington, D.C. swamp dwellers) attempts to paint the Trump Administration as out of step with the people he wants to help in West Virginia. The article says Trump’s strategy to prop up failing coal and nuclear plants is an attempt to boost coal mining jobs in WV, but is running counter to the state’s strategy of embracing the natural gas industry. Perhaps they have a point. However, what’s most interesting about the article is not the ginned up conflict between Trump and WV, but how the article spotlights WV’s two U.S. Senators–Republican Shelley Moore Capito and Democrat Joe Manchin–and their continuing role in trying to make a $10 billion NGL (mostly ethane) storage hub facility become a reality. The storage hub will be a jobs magnet with some estimates that it will create more than 100,000 new jobs in the state. The storage hub will also draw manufacturers looking to locate near ethane crackers, as a source for plastics used in their manufacturing process. Capito, in her comments, attempts to gloss over the rivalry between coal and natural gas, saying “all those rivalries have gone by the wayside.” Er, a, we beg to differ. But leaving aside the coal v. natgas focus of the article, we found two very interesting items. (1) The Dept. of Energy loan guarantee that would cover $1.9 billion of the estimated $10 billion cost to build it is a much bigger deal that we had realized. Why? Because any project that wins such a guarantee has gone through a rigorous review process. Winning such a guarantee is like conferring a triple A rating on the project for others who will consider investing in the project. It gives them confidence that the project has been thoroughly vetted and is low risk. (2) Manchin, in speaking with DOE Sec. Rick Perry, is using an interesting and novel argument to convince Perry the storage hub is a good thing to do. Manchin said when hurricanes hit the Gulf Coast, it knocks out petrochemical industry there, with a cascading effect across the U.S. Cracker plants (fed by the storage hub) in the northeast, are not susceptible to hurricanes. So Manchin’s pitch to Perry is this: Keep the Gulf Coast crackers cooking for products to export to other countries, but let’s build the storage hub (and crackers) in the northeast, so our country’s petchem industry isn’t adversely affected by a major hurricane…
Many (most?) electric generating companies in the U.S. are regulated–highly regulated. They’re guaranteed a certain, predictable level of (low) profits. But in return for guaranteed profitability, every single thing they do is monitored and authorized in triplicate, with one or another government agency reviewing anything and everything that happens. It’s the deal they’ve struck with the regulatory devil. Vectren is one such regulated utility in the great state of Indiana. Vectren operates the F. B. Culley Generating Station, a 369 megawatt (MW) coal power plant located in Warrick County, Indiana. They plan to close the coal-fired plant in 2023. In its place, they want to build a 900 MW natgas-fired plant and a 50-acre solar farm. Building the gas plant and solar farm would cost Vectren (meaning ratepayers) $940 million. The cost is passed on to ratepayers because Vectren is regulated. That’s the way it works. The bargain struck with the devil. The gas-fired plant will be cleaner than coal, more efficient, cheaper to operate, and better for the environment. We suspect Utica/Marcellus gas would help feed the plant. And yet, anti-fossil fuel wackos oppose the plan to switch to cleaner-burning natgas. Would they prefer no electricity?…
Perhaps the proposed legislation by PA Rep. Dan Moul (Republican from Gettysburg) to gut not only the DRBC (Delaware River Basin Commission) of its power to regulate groundwater, but also to gut the SRBC (Susquehanna River Basin Commission), is not so far off the mark after all (see 
In March, MDN brought you the news that the Federal Energy Regulatory Commission (FERC) had taken “significant action” to address the Trump tax cut legislation enacted last December (see 
Looks like “Baker Hughes, a GE Company” will soon become just plain old “Baker Hughes” once again. This morning GE released the results of a year-long internal review. GE has its fingers in a lot of pies and wants to pull its fingers out of some of those pies. The results of the review recommend GE dump Baker Hughes (over the next 2-3 years), and also dump its healthcare division. The company will concentrate on three “complimentary” areas: aviation, power and renewable energy. The hope is that by focusing and shedding peripheral business units, the company’s financial performance, and stock price, will improve. Just last week GE was booted from the Dow Jones Industrial Average after being a component of that average for over 100 years. The company’s stock was replaced on the DJIA by Walgreens. Truly humiliating. You may recall Halliburton originally wanted to buy Baker Hughes but the Obama Justice Department blocked the deal (see 
As we have reported since late last year, Cabot Oil & Gas, long-known for the incredible amount of Marcellus natural gas they produce from Susquehanna County in northeastern Pennsylvania, is eyeing north central Ohio as a potential spot for “what’s next” after the Marcellus (see 
Seems like a week doesn’t go by that MDN isn’t asked (by someone from Pennsylvania), “Is there any hope of building the Constitution Pipeline through New York?” Our standard response is this: The only way it gets built is (a) NY elects a new governor favorable to the industry–about a 1% chance of that happening, (b) President Trump issues an Executive Order overriding Cuomo’s blockade of Constitution (and other pipeline projects)–maybe a 10% chance of that happening, or (c) the Federal Energy Regulatory Commission (FERC) reconsiders a decision to not overrule NY’s move to block the project–maybe a 15% chance. The U.S. Supreme Court in April refused to consider the Constitution Pipeline case, closing that door (see 
