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  Japan, Europe Eye U.S. Natural Gas to Replace Nuclear PowerFebruary 15, 2012Just as the U.S. is preparing to crank up sales of its vast natural-gas supplies abroad, the global market is being reshaped by Japan--which is suddenly retreating from nuclear power after last year's earthquake," wrote the Wall Street Journal. "The island nation produces less than 4% of the gas it consumes and must import the rest by ship." It isn't just Japan, according to the Journal. "Nations in Europe and Asia are looking to expand gas imports as well, in some cases because of a turn away from nuclear power," the paper reported. "Germany, which has said it will shut down its nuclear plants by 2022, opened a new gas pipeline from Russia in November. In Britain, where nuclear expansion plans have slowed down after Fukushima, BG Group PLC has signed a contract to import U.S. natural gas, and companies are exploring for new supplies." U.S. companies are looking at building export terminals in at least eight locations. Cheniere Energy Inc. is furthest along with its project at Sabine Pass, La., and Cheniere agreed Jan. 30 to sell 3.5 million tons per year of gas to Korea Gas Corp. These new markets for natural fas is good news for the Oilheat Industry, but the specter of increased U.S. exports of natural gas is a threat to U.S. consumers, according to U.S. Rep. Edward Markey (D-Mass.). He says that the United States should stop exports of natural gas to prevent domestic prices from rising, according to a report by Reuters. Low natural gas prices are a competitive advantage for American businesses and a relief for American families, and exporting our natural gas would eliminate our economic edge and impose new costs on consumers," Markey said in a statement. To read more about these stories and a link to original WSJ and Reuters Story visit the AEC web site at "americanenergycoalition.com" and click on the "IN THE NEWS" button. And while you're on the Web Site please consider becoming an AEC Member Contributor by clicking on the "Donate Now" button and making a contribution to help support AEC. Sierra Club Secretly Takes Millions From Gas IndustryFebruary 9, 2012The Sierra Club, a 120 year old environmental watchdog group, secretly took $26 million dollars from the Natural Gas Industry. The money was used primarily to fund their "Beyond Coal" Campaign, according to an article published in Politico on Tuesday. Sierra's Executive Director, Michael Brune, admitted that the Club accepted the $26 million dollars between 2007 and 2010 to promote the use of cleaner Natural Gas as a bridge fuel to replace coal to generate electricity. According to the article, much of the money came from the Gas Industry Giant Chesapeake Energy Corp. A similar story also ran in the New York Times. The Sierra Club is hardly unique among the big green groups in expressing a preference for natural gas over coal, although the spread of fracking has punctured holes in that consensus, according to the Politico stroy. Many Sierra Club members were angered and felt betrayed by the news, including Lisa Wright, a former Sierra Club member from New York who resigned last year because of the Clubs "high-level association with the gas industry", said Politico. The news cut especially deep for activists who have spent years fighting the spread of shale gas drilling in states like New York and Pennsylvania. On the other side of the controversy, criticism came from a United Mine Workers spokesperson, who said: "Now we know why this so-called independent organization has been such an advocate for another form of fossil fuel and against using cutting-edge technology that would make using coal to generate electricity just as clean as Natural Gas. Brune, discovered the Gas Industry contributions when he took over as Executive Director in 2010 from Carl Pope. Brune urged the Board to stop accepting donations, but did not recommend returning any of the money already received. He did however keep the contributions secret, saying last week (after the admission resulting from reporters questions) that it gives the organization the ability to "have our hands clean" as the nation engages in a critical debate about gas production. Others proclaimed that the Sierra Club, now unburdened of its secrets, will be liberated to become a full-throated ally in the fight against fracking. "This represents an important and seismic shift at the big greens in general", said Josh Fox, the director of the Oscar-nominated documentary "Gasland". I think this means the Sierra Club is saying we cannot go down the road of a gas-powered future", Fox said. He added, "It would be great if our government followed suit and our politicians stopped taking money from the gas industry as well", quoted Politico. To read more about this story and a link to original Politico Story visit the AEC web site at "americanenergycoalition.com" and click on the "IN THE NEWS" button. And while you're on the Web Site please consider becoming an AEC Member Contributor by clicking on the "Donate Now" button and making a contribution to help support AEC. Officials Fiddle While Ancient Gas Lines ExplodeFebruary 1, 2012A retired Pennsylvania State Police Officer recounts a December 8th 1968 natural gas pipeline explosion that leveled the Paris Inn in Middletown Township that took two lives. In a recent story featured on PhillyBurbs.com, Officer James F. Kesler retells the 43 year old story as he takes to task the Natural Gas Industry for not maintaining its aging infrastructure. Cast iron gas piping that was blamed for that incident has also been blamed for numberous other explosions in recent years. Kesler sited a number of examples of poor pipeline safety maintenance issues, including:
To read more about this story and a link to original PhillyBurbs.com article visit the AEC web site at "americanenergycoalition.com" and click on the "IN THE NEWS" button. And while you're on the Web Site please consider becoming an AEC Member Contributor by clicking on the "Donate Now" button and making a contribution to help support AEC. Marcellus Shale Reserves Overstated By 200% Says U.S. Energy DepartmentJanuary 28, 2012The U.S. Department of Energy cut estimates of Natural Gas reserves contained within the Marcellus Shale by 66% Monday, reported Bloomberg. Known Reserves are defined as those being recoverable using currently available technologies. The Energy Department sighted improved data on drilling and production as the basis for the new estimates. Previous estimates put the quantity of recoverable Natural Gas in the Marcellus Shale at 410 trillion cubic feet but the new data has reduced that estimate to 141 trillion cubic feet. These new estimates were published in the Departments "Annual Energy Outlook". Previously, the U.S. Geological Survey said in August that it would reduce its estimates of undiscovered Marcellus Shale gas by as much as 80% after updated assessments by government geologists. The estimated Marcellus reserves would meet U.S. natural gas demand for about 6 years, using 2010 consumption data, according to the Energy Department, down from 17 years in its previous Outlook. The Annual Energy Outlook also estimated that 482 trillion cubic feet of gas could be produced from shale basins across the U.S. That number is down from it 827 cubic feet contained in last year's Outlook estimate. To read more about this story and a link to original Bloomberg article visit the AEC web site at "americanenergycoalition.com" and click on the "IN THE NEWS" button. And while you're on the Web Site please consider becoming an AEC Member Contributor by clicking on the "Donate Now" button and making a contribution to help support AEC. Canada Is Hedging Bet On Keystone XL PipelineJanuary 11, 2012Our Canadian neighbors to the north began a lengthy series of public hearings this week over a proposed pipeline that would ship crude oil from Canada's landlocked oil sands in to the Pacific Coast. The proposal provides an alternative to the Keystone XL Pipeline, currently pending approval by President Barack Obama, and ratchets up the debate in Canada over the country's growing status as a global energy powerhouse, according to an article published in the Wall Street Journal. Canada is warming to the idea of an oil pipeline from Alberta to the Canadian West Coast to deliver petroleum to thirsty Asian markets if the United States balks at a pipeline that would bring more Canadian oil to the U.S., according to the article. With the future of the Keystone pipeline in doubt, Canadian politicians and oil-industry executives have rallied behind Enbridge Inc.'s Northern Gateway pipeline as a way to boost export capacity and open up new markets in Asia as oil production climbs, the Journal reported. Canadian oil output is expected to grow 50 percent over the course of the decade, to 4.2 million barrels a day, according to the Canadian Association of Petroleum Producers, an industry group. With U.S. jobs, energy security and energy independence at stake, the Keystone XL Pipeline must be approved, and quickly; otherwise, this North American resource may well to go to China. To read more about this story and a link to original WSJ article visit the AEC web site at "americanenergycoalition.com" and click on the "IN THE NEWS" button. And while you're on the Web Site please consider becoming an AEC Member Contributor by clicking on the "Donate Now" button and making a contribution to help support AEC. Natural Gas Reserves Are Again Being QuestionedJanuary 6, 2012The Natural Gas Industry's claim that shale plays hold a 100 years supply is being question again, this time in an article from Future Tense published by Slate.com. The article says that claims of a 100-year supply are overstated. "Assuming that the United States continues to use about 24 trillion cubic feet per year, then, only an 11-year supply of natural gas is certain," according to the Slate article. "The other 89 years' worth has not yet been shown to exist or to be recoverable. The 100 year estimate includes Proved, Probable, Possible and Speculative estimates according to the story. In addition, calculations use the current consumption rate of 24 trillion cubic feet of gas per year, and does not account for increased consumption expected for uses like electric generation or transportation fuel. The article also calls into question the profitability of drilling activities given the current low cost of natural gas. The claimed lifetime productivity, or estimated ultimate recovery of individual wells is also overstated, according to the article. The production decline curves modeled by well operators predict that production will fall steeply at first, followed by a long, flattened tail of production. The authors analysis found a better fit with a model in which production falls steeply for th first 10 to 15 months, followed by a more weakly hyperbolic decline. Shale gas wells typically pay out over one half their total lifetime production in the first year. So operators must keep drilling continuously to maintain a flat rate of overall production. To read more about this story and a link to original article visit the AEC web site at "americanenergycoalition.com" and click on the "IN THE NEWS" button. And while you're on the Web Site please consider becoming an AEC Member Contributor by clicking on the "Donate Now" button and making a contribution to help support AEC. National Grid Customers Lose Gas Service In Westerly, Rhode IslandDecember 29, 2011More than 1,600 National Grid customers in Westerly, R.I. recently endured several days without heat and hot water just before Christmas due to a problem with a utility gas pipeline, according to a report by Bloomberg Businessweek. Many of the affected customers lost gas for more than two days, and at least one business owner said that National Grid should provide compensation for the business losses that he sustained. National Grid, that supplies both Natural Gas and Electricity was already under fire for their poor response to electric outages following the October 29th snow storm, with many customers in New England remaining without power for a week or more. This incident further illustrates Utility companies' poor track record in providing services to their customers. National Grid says crews went door to door in Westerly on Dec. 22, 2011, to close off natural gas meters of 1,600 customers as it worked on a distribution problem, according to the report. After repairing the pipeline problems, some homes had to wait to have gas service restored because the occupants didn't answer the door when technicians re-visited, according to a story in the New London Day. Utility gas technicians left tags with a number for homeowners to call to have their pilot lights relit. To read more about this story and a link to original stories from Bloomberg, ABC News and the New London Day, visit the AEC web site at "americanenergycoalition.com" and click on the "IN THE NEWS" button. And while you're on the Web Site please consider becoming an AEC Member Contributor by clicking on the "Donate Now" button and making a contribution to help support AEC. PA Gas Utilities Avoid Scrutiny, FinesDecember 22, 2011Gas utilities in Pennsylvania are cited for dozens of safety violations a year, but they rarely face fines or public disclosure, according to a report http://articles.philly.com/2011-12-18/news/30531309_1_gas-safety-carl-weimer-pipeline-safety-trust by the Philadelphia Inquirer. In the last five years, the Public Utility Commission has levied just 17 fines for safety violations, as for all the other safety cases, they're a secret between the utilities and the PUC, the report states. The agency won't tell the public what happened, or where, or whether the public was placed at risk. It won't even identify the utilities involved. With only 8 gas-safety inspectors responsible for 46,000 miles of pipelines, along with other natural gas facilities, the PUC says its goal is to correct safety problems quickly, not to punish or embarrass Utilities. But last week, the PUC filed a public complaint against Philadelphia Gas Works, alleging safety violations in one high-profile case, the fatal gas explosion in the Taxony section of Philadelphia in January. It is calling for the maximum $500,000 fine, a record for gas safety cases. That's far harsher than the typical penalty, the report states. In Pennsylvania, the gas-safety cases can drag on for as long as five years and result in an average settlement of $47,000. To read more about these stories and a link to the original stories, visit the AEC web site at "americanenergycoalition.com" and click on the "IN THE NEWS" button. And while you're on the Web Site please consider becoming an AEC Member Contributor by clicking on the "Donate Now" button and making a contribution to help support AEC. EPA Reports: Colorado Drinking Water Wells Contaminated By Gas DrillersDecember 14, 2011The EPA has tied drinking well water contamination to gas drillers in Wyoming according to three separate stories reported by the Wall Street Journal, The New York Times and The Hill. The Journal reported that environmental groups said the finding confirms that gas drilling poses environmental risk and should be subject to strict rules or banned outright. Currently gas drilling operations employing hydraulic fracturing, or fracking, are exempt from several environmental laws that oil drillers must comply with, including: The Clean Drinking Water Act, The Clean Air Act, The Clean Water Act, The National Environmental Policy Act, The Resources Conservation and Recovery Act, The Emergency Planning and Community Right to Know Act, and, The Comprehensive Environmental Response, Compensation and Liability Act. Legislation to eliminate these exemptions, the Frac Act (Fracturing Responsibility and Awareness of Chemicals Act) has failed to pass in both the House and the Senate. The report cited problems with how the wells were constructed, including intervals where the wells had no cement casing or weakened cement, according to the Journal. EPA officials said this could be related to the age of the wells, some of which date to the 1950s, and varying state regulations over the years. The EPA conducted a multiyear study in response to concerns voiced in 2008 by residents in Pavillion Wyoming about the smell and quality of their water. The agency, after drilling its own wells in Pavillion and sampling water, said it detected benzene, a carcinogen, that exceeded safe drinking-water standards, as well as methane, the primary component of natural gas, and synthetic chemicals such as glycols and alcohols "consistent with gas production and hydraulic fracturing fluids." To read more about these stories and a link to the original stories, visit the AEC web site at "americanenergycoalition.com" and click on the "IN THE NEWS" button. And while you're on the Web Site please consider becoming an AEC Member Contributor by clicking on the "Donate Now" button and making a contribution to help support AEC. Seven Hospitalized in Reading Due to Carbon MonoxideDecember 7, 2011Seven people from Reading, PA were rushed to the hospital Monday afternoon for treatment of suspected carbon monoxide poisoning, according to a new report by WFMZ TV 69. Two adults and five children were experiencing symptoms of carbon monoxide poisoning and were taken to the hospital. Fire crews on the scene said they pinpointed the source of the gas to a blocked chimney that is shared by two of the six attached homes. CO levels over 200 parts per million were measured by firefighters inside one of the homes. The average level for a home without a gas stove varies from 0.5 to 5 parts per million, according to the Environmental Protection Agency. Levels near properly adjusted gas stoves are often 5 to 15 ppm, according to WFMZ. Close to 200 people die each year as a result of carbon monoxide poisoning, according to the U.S. Consumer Product Safety Commission. To read more about this story and a link to the original story, visit the AEC web site at "americanenergycoalition.com" and click on the "IN THE NEWS" button. And while you're on the Web Site please consider becoming an AEC Member Contributor by clicking on the "Donate Now" button and making a contribution to help support AEC. Seaway Pipeline Sale Will Reverse Oil FlowDecember 1, 2011Embridge Inc. recently purchased a 50% stake in the Seaway Pipeline and plans to reverse the oil flow in that line by early next year, according to a recent Wall Street Journal Story. The Seaway Pipeline runs from Houston Texas on the Gulf Coast to Cushing Oklahoma, a major oil storage and delivery point for NYMEX crude oil. Currently oil flows north, from Houston to Cushing in the Seaway Pipeline U.S. oil production has been on the decline since the 1970's and oil has been imported to the Gulf Coast and refined there or moved elsewhere in the U.S. for processing. But after bottoming out in 2008, U.S. oil production has been on the rise, up 10% in just the last couple of years. Over the past two years, the U.S. has started producing so much oil that existing pipelines have been unable to move it to refineries, according to the Journal. That has led to oversupply in the center of the country, keeping the price of American crude far below that of petroleum traded overseas. Enbridge is seeking to move oil out of Cushing, which is expected to create jobs, reduce oil imports and increase gasoline exports, according to the Journal article. Oil could start flowing south as early as the second quarter of next year, and with the addition of new pumping stations the thruput coud be increased to as much as 400,000 barrels per day by mid 2013. It is unclear how this announcement will affect the Keystone XL project, but TransCanada was quoted in the article saying they still expect the project to be approved. U.S. imports of foreign oil continue to drop as domestic production continues to increase here pushing the country closer to becoming a net exporter of oil in the very near future. This news further supports prediction that the U.S. will move to the largest worldwide produce of oil by 2017. To read more about this story and a link to the original story, including a related story by Businessweek, visit the AEC web site at "americanenergycoalition.com" and click on the "IN THE NEWS" button. And while you're on the Web Site please consider becoming an AEC Member Contributor by clicking on the "Donate Now" button and making a contribution to help support AEC. Natural Gas Explosions Wreak Havoc in Ohio & New JerseyNovember 25, 2011Nine people were injured and six buildings heavily damaged in two recent gas explosions in Ohio and New Jersey. In the wake of the Ohio explosion, a federal agency ordered a gas pipeline operator to take a pipeline out of service temporarily to protect local residents. The Ohio explosion occurred on Nov. 17 in the community of Glouster. Three homes and one barn were destroyed, and a second barn was damaged, according to a report in The Zanesville Times Recorder. In New Jersey, eight firefighters and an emergency medical technician were injured in a basement explosion during an early-morning house fire in Pennsauken on Nov. 21, according to a report in the Courier Post. Pennsauken Fire Chief Joseph Palumbo said the fire in the basement involved a release of natural gas from the regular service gas line. "As they (firemen) were stretching a hose line into the dwelling, a gas explosion occurred, causing significant interior and structural damage to the home," he said. At the time of the explosion, seven of those injured were inside the home and a battalion chief was on the porch, he said. To read more about these two stories, links to the original stories, visit the AEC web site at "americanenergycoalition.com" and click on the "IN THE NEWS" button. And while you're on the Web Site please consider becoming an AEC Member Contributor by clicking on the "Donate Now" button and making a contribution to help support AEC. Natural Gas Explosion Destroys Home In PennsylvaniaNovember 16, 2011About 100 Homes and business were evacuated following a natural gas explosion that destroyed a house in Millersville, PA. According to Lancaster Online, residents were allowed back into their homes that night, but asked to leave again the next day when high gas readings were again detected. The house that exploded housed a business on the first floor and an apartment on the second floor. No one was home on the second floor at the time of the blast except for the family dog that was rescued by fire crews. Tom Zimmerman, the shopkeeper on the first floor noticed a strong smell of gas and exited the building just before the blast according to a report by ABC Channel 27. When UGI crews arrived they turned off electric power to the area and opened up streets to vent the gas built up underground. "When we arrived on the scene we had high readings of natural gas out in the street here and in various homes and businesses," said Mike Fessler with UGI. The cause of the leak was reported to be a ruptured line that was damaged by a private contractor working to install fiber optic cables, To read more about this story, links to the Lancaster Online reports and a link to the ABC 27 report that includes a News Video, visit the AEC web site at "americanenergycoalition.com" and click on the "IN THE NEWS" button. And while you're on the Web Site please consider becoming an AEC Member Contributor by clicking on the "Donate Now" button and making a contribution to help support AEC. Boston University Researchers Survey Gas Leaks In BostonNovember 10, 2011Nathan Phillips, an associate professor of geography and environment at the Boston University College of Arts and Sciences, along with two collaborators are mapping gas leaks from the streets of Boston, according to an article published in the Bostonia and picked up by the Boston Globe. Using an analyzer that displays a numerical value to quantify the volume of gas leaking from underground pipelines, Phillips and his team are mapping natural gas leaks coming from the city's streets. The analyzer utilizes sensors mounted below their vehicle to sense fugitive gas and the output is linked to Google Earth maps to document the survey data. In May, Phillips and his team found a leak in Newton spewing 400 cubic feet of gas per day. The average household uses about 200 cubic feet per day. "There are a lot of leaks. One utility, National Grid, counts 14,000 in its system, which serves half of the Bay State, while Ackley, president of Gas Safety USA, a Massachusetts leak-detection company, puts the figure for all leaks at up to 30,000. Utilities reported 13.5 million cubic feet of gas lost from leaks throughout Massachusetts in 2009, an amount that is surely an undercount, according to the federal government, which collects the data." "The leaks, Phillips says, contribute to global warming, could create explosions in some extreme cases, have killed or damaged up to 10,000 trees in Massachusetts (a disputed matter under litigation), and shaft rate-paying gas customers who must pick up the tab for wasted gas." "The perils and price of leaking gas are the subject of a paper that Phillips, Crosson, and Ackley presented at a spring conference sponsored by the National Oceanic and Atmospheric Administration < http://www.noaa.gov/ > . Their research suggests that 7 percent to 15 percent of manmade methane < http://www.epa.gov/methane/scientific.html > (the main component of natural gas) in the atmosphere comes from these urban emissions. And that's a problem: methane is a greenhouse gas that according to the United Nations is 21 times more potent than carbon dioxide at trapping heat in the atmosphere." To read more about this story, links to the referenced supporting data and a video of Phillips demonstrating his data collection methods, visit the AEC web site at "americanenergycoalition.com" and click on the "IN THE NEWS" button. Your on-line donation to help support AEC activities would also be appreciated. Please consider becoming an AEC Member Contributor. Environmental Activist Rips Natural Gas IndustryNovember 6, 2011Robert F. Kennedy Jr., an environmental activist and president of the Waterkeeper Alliance, recently criticized the natural gas industry for resisting public disclosure of information and opposing reasonable regulation. Writing for the Huffington Post, Kennedy took natural gas producers to task for attacking the New York Times over a recent string of articles about natural gas drilling. "Superb investigative journalism by the New York Times has brought the paper under attack by the natural gas industry," Kennedy wrote. "That campaign of intimidation and obfuscation has been orchestrated by top shelf players like Exxon and Chesapeake aligned with the industry's worst bottom feeders. Calling himself "an early optimist on natural gas," Kennedy wrote that he once thought natural gas could help ease the country's dependence on coal and destructive coal mining practices. "My caveat was that the natural gas industry and government regulators needed to act responsibly to protect the environment, safeguard communities from irresponsible practices and to candidly inform the public about the true risks and benefits of shale extraction gas. The opposite has happened. "The industry's worst actors have successfully battled reasonable regulation, stifled public disclosure while bending compliant government regulators to engineer exceptions to existing environmental rules. Captive agencies and political leaders have obligingly reduced already meager enforcement resources and helped propagate the industry's deceptive economic projections," Kennedy wrote. "As a result, public skepticism toward the industry and its government regulators is at a record high. Kennedy noted that he sits on New York State's High Volume Hydraulic Fracturing Advisory Panel, which is developing rules for safe gas drilling. "We spend much of our time sorting truth from the web of myths spun about fracking by fast talking landsmen, smarmy CEOs, and federal regulators," he wrote. Kennedy goes on to cited numerous instances where research has raised doubts about fundamental gas industry presumptions; and also notes numberous issues raised by the Times that he terms as "excellent coverage". To read the entire story, and a link to the original Huffington Post Article, visit the AEC web site at "americanenergycoalition.com" and click on the "IN THE NEWS" button. Your on-line donation to help support AEC activities would also be appreciated. Please consider becoming an AEC contributor. San Bruno Disaster Focus of Senate HearingOctober 26, 2011The US Senate Committee on Commerce, Science and Transportation held a hearing last Tuesday that focused in on the San Bruno Natural Gas Pipeline explosion last year that killed 8, injured 52, destroyed 38 homes and damaged 70 more. In addition to a number of Gas Industry, Utility and Safety Agency witnesses both Senators Feinstein and Boxer also testified according to a story by Jim Collura published in last week's NEON. "There are a lot of reasons to worry about this, and there are a lot of reasons to continue to do extraordinary due diligence on the issue" said Senator Feinstein. "Most disturbing of all, this accident and the tragic loss of life were entirely preventable" said Senator Boxer. According to Feinstein, 61% of all natural gas pipelines have been grandfathered, "meaning regulators and the industry assumed it was safe to continue operating the pipelines at pressures used in the past"; adding, that countless pipelines in urban areas "have inaccurate or incomplete records, never been tested or inspected by smart pigs, and lack automatic or remote-controlled shutoff valves capable of limiting damage following a rupture". The DOT (Department of Transportation) says there were an average of 42 serious natural gas pipeline incidents per year over the last decade, resulting in an average of 14 deaths, 16 injuries and over $32 Million Dollars in property damage per year. During the hearing, regulators and gas industry representatives outlined steps they were taking to address the pipeline safety problem. New Legislative measures are also being considered to improve pipeline safety, one of which passed the Senate last week and will be funded by the industry. To read the entire NEON story, visit the AEC web site at "americanenergycoalition.com" and click on the "IN THE NEWS" button. In addition, there is a link to a video of the actual hearing and another link to a report by the San Bruno Patch on the hearing. Your on-line donation to help support AEC activities would also be appreciated. Please consider becoming an AEC contributor. Canada Grants LNG Export LicenseOctober 19, 2011Regulators at Canada's National Energy Board has approved a project to export LNG (Liquified Natural Gas) from Canada's west coast. The license granted last week was a first by the Canadian Government and reflects a big shift in the North American natural gas markets, according to a story published by the Wall Street Journal. The project, still undergoing a feasibility study, plans to liquify natural gas harvested from shale fields in Alberta and British Columbia and export it to Asian markets from the deep water port of Kitimat in British Columbia. The licence holder, KM LNG, a joint venture among Apache Corp., Encana Inc. and EOG Resources could have LNG flowing to Asian markets by late 2015 if the project moves forward, with volumes reaching 1.4 billion cubic feet of gas a day. This is good news for the Oilheat Industry as it has the potential to move large quantities of natural gas out of the North American Market and add upward pressure on the price of natural gas. This news follows the application by Dominion Resources Inc. based in Richmond VA to undertake a similar LNG Export project at its Cove Point, MD location. That application was the subject of last Wednesday's E-Alert and includes a plan to export 1 billion cubic feet of natural gas a day. In May, the U.S. approved plans by Houston based Cheniere Energy Inc. to export LNG from its terminal in Louisiana, according to the WSJ article. The new unconventional drilling methods that are unlocking this plentiful supply of natural gas is also unlocking crude oil that is also trapped in shale formations. New recoverable oil reserves are also coming on line but not getting the same press coverage as natural gas. But these new oil reserves are equally important to the Oilheat industry as they collectively address national energy security, overall cost of energy and dependance on foreign oil sources. Past E-Alerts have drawn your attention to these stories, including the October 5th E-Alert on Utica Shale Oil, the September 22nd E-Alert on Growing North American Oil Reserves and the August 30th E-Alert on the Keystone Pipeline. This is all good news for Oilheat because it will eventually begin to raise the price of domestic natural gas as it begins to compete with other energy sources on world markets. To read more about this story, or to access previous issues of E-Alert, visit the AEC web site at "americanenergycoalition.com" and click on the "IN THE NEWS" or "E-Alert" button. Your on-line donation to help support AEC activities would also be appreciated. Please consider becoming a contributor. Dominion Resources Applies For Permit to Export Marcellus LNGOctober 12, 2011Richmond, Va based Dominion Resources Inc. has applied to the U.S. Department of Energy to allow it to export up to one billion cubic feed of Liquified Natural Gas (LNG) daily from its Cove Point Maryland terminal. The application was filed on September 1st and seeks permission to export LNG to any country with which the United States does not prohibit trading, according to an article published by The Patriot-News. "To some, Pennsylvania's abundance of natural gas underground is a commodity that should be traded in the global marketplace. Others argue that exporting the gas flies in the face of energy independence. Either way, [Dominion Resources Inc.] is seeking federal approval to allow exports of liquified natural gas from the Marcellus Shale and other areas of the booming Appalachian drilling industry, saying that the nation's natural gas supply is outpacing demand", the Patriot-News reported. Ironically, Dominion plans to export the LNG thru the same Maryland LNG Facility that they began importing LNG just a few short years ago to supplement, then, dwindling domestic supplies. The process of liquifying natural gas is very energy intensive and occupies a huge carbon footprint. The process involves cooling the gas to 260 degrees below zero to drive the phase change from gas to liquid reducing its volume 600 times in the process. As a result, the plan is likely to face stiff opposition from environmental groups giving them one more arrow in their quiver to use against the "Fracking" industry. Ben Ketchum, with the anti-drilling group GasTruth, said "the move is a sign of the industry reneging on statements it made about how Marcellus gas will benefit Pennsylvania and the United States". "This will be like any other commodity; it's going to be sold to the highest bidder," according to the Patriot story, with contributions from the AP. This is potentially good news for the Oilheat Industry because it will begin to balance the supply vs. demand dynamic that is currently depressing gas prices. Adding demand, especially from outside the U.S., will surely put upward pressures on the price of domestic natural gas. The prospects of exporting gas is also refueling the "severance tax" debate in Pennsylvania as drilling activity is expected to increase to supply the export market. The severance tax proposal would impose a tax on shale gas production activities with the proceeds going to communities in Pennsylvania that have been impacted by these drilling activities. To read more about this story, visit the AEC web site at "americanenergycoalition.com" and click on the "IN THE NEWS" button. Your on-line donation to help support AEC activities would also be appreciated. Please consider becoming a contributor. Ohio Is Expecting An Oil Boom From Utica ShaleOctober 5, 2011Details about an oil rich shale discovery in Eastern Ohio has been leaking out slowly over the last year, reports CNBC's Mad Money. The formation known as the "Utica Shale" is located in eastern Ohio just west of the Marcellus Shale in western Pennsylvania. This Utica Shale could be "transformative" said Aubrey McClendon, CEO of Chesapeake Energy and reported by Mad Money. Chesapeake and other oil exploration companies have been buying leases to the mineral rights for about a year now, reports the Dow Jones Newswire, to what could be the last big unconventional oil discoveries in the U.S. While no one yet knows exactly how much oil is there, some believe it could yield crude oil quantities on par with the largest oil shale reservoirs in the U.S. and spark major economic growth with the Rust Belt. "It was a mad rush", said Rob Donham, Mayor of Windham Ohio, who sold Chesapeake the rights to drill underneath 100 acres that house the towns municipal buildings and ball fields for $55,000. That was enough money for the Town to purchase two new police cars and provide the Town with the prospect of receiving decades of oil royalty payments. Chesapeake's agents are showing up all over eastern Ohio including Navarre, as small town of 1,800 with offers to lease the land under the town's park and cemetery. The lease payment offered is enough to run the town's police department for six months. "I'd hate to miss the boat", said the town's Mayor Bob Benson, whose administration hadn't signed the lease at the time, and saying that "you do worry about the future". The predicted boon in Ohio's "Utica" is just the latest chapter in a story that has been developing across North America in the last decade, as producers have figured out how to crack open deeply buried energy bearing rocks, first unleashing floods of natural gas and now crude oil. This has sparked the highest level of drilling in the U.S. in more than 20 years. But this type of drilling known as hydraulic fracturing, or "fracking" is not without risk, especially to air quality and global warming as methane in the form of natural gas is released into the atmosphere, if proper precautions are not taken. North America appears to be headed for an oil renaissance, with crude production expected to hit an all time high by 2016, according to a Houston Chronicle story; and the Utica Shale will play a big part in the U.S.' growing production of crude oil. To read more about this story, visit the AEC web site at "americanenergycoalition.com" and click on the "IN THE NEWS" button. Your on-line donation to help support AEC activities would also be appreciated. Please consider becoming a contributor. Gas Explosion Tied To Long Known Plastic Pipe Cracking ProblemsSeptember 28, 2011The August 31 natural gas explosion and fire that gutted the Cupertino Condominiums in California was caused by a cracked plastic gas pipe, according to a report by the San Francisco Chronicle. The ruptured pipe was owned by Pacific Gas & Electric (PG&E), the same utility that owned the pipeline that caused the San Bruno disaster last year. In this case though, the pipe was plastic, not steel, and the utility has known about problems with plastic pipe for years. This particular pipe was manufactured by Dupont and sold under the Brand Name "Aldyl-A", a product that Federal Regulators identified as being at risk for premature cracking back in 2002. Explosions caused by failures in Aldyl-A, and similar plastic pipe, have killed more that 50 Americans since 1971 according to the federal government, and PG&E has 1,231 miles of this early 1970's vintage pipe in it's system. But despite the known dangers, utilities don't routinely report plastic pipe failure rates, and are not required by the government to do so. "That should change", said Timothy Alan Simon, a member of the California Public Utilities Commission. In the Cupertino incident, a plastic fitting in a garage cracked, filling the garage with gas that exploded just minutes after the homeowner left for lunch; and since the incident, PG&E has found six other plastic pipe failures near the blast site. "Instead of requiring utilities to remove the problematic plastic pipe, however, U.S. pipeline safety officials have allowed the industry to compile limited data about failures of Aldyl-A and similar pipe and to keep the findings confidential", according to the Chronicle story. "Pipeline operators like PG&E are not required by law to report all plastic pipeline failures..." as a condition of a 1999 agreement to create a committee to track the dangers of plastic pipe. The committee meets privately twice a year and issues a summary report; but that report does not include the number of failures or the extent of damage from accidents. To read more about this story, and a Seattle Times story about a natural gas pipeline explosion there on Monday of this week being blamed on a fallen tree and downed power lines, visit the AEC web site at "americanenergycoalition.com" and click on the "IN THE NEWS" button. Your on-line donation to help support AEC activities would also be appreciated. Please consider becoming a contributor. North American Oil Reserves Keep GrowingSeptember 22, 2011"There Will Be Oil", says the headline of a Wall Street Journal story published last Saturday; a sentiment supported by a new Department of Energy Commissioned "Report [that] says we have more oil than we thought", as headlined by a separate "Fuel Fix" story published last Friday. The widely promoted belief the our finite oil reserves will soon run out appear to be overblown according to these two stories. The WSJ article talks about "Peak Oil", or the point when the growth in oil production reaches a "peak" and subsequently begins to decline rapidly. Predictions of when that day would arrive has continued to be revised over the years. The first was back in the 1880's when Pennsylvania was the center of oil production and it was believed that no new oil would be found west of the Mississippi River, but then oil was discovered in Texas. New concerns were raised following the two World Wars, and then again in the 70's; but since 1978 the world's oil output has increased by 30%. In fact, between 2007 and 2009, for every barrel of oil produced, 1.6 new barrels of oil were discovered. In a report issued by the National Petroleum Council on it's study commissioned by the Department of Energy, the Council said that "we have more oil [in the U.S.] than we thought" and that new drilling techniques combined with successes in the deep water Gulf of Mexico and Canadian Tar Sands "are improving the nation's potential to be more self-reliant for oil", reported by Fuel Fix. "Contrary to conventional wisdom the North American oil resource base also could provide substantial supply for decades ahead", says the report. These North American sources have already substantially reduced U.S. oil imports from 60% in 2005 to 47% today according to the WSJ. It is estimated that one trillion barrels of oil have been produced worldwide since the industry began in the 19th Century, with an additional five trillion, plus, still in the ground, 1.4 trillion barrels of which are considered to be commercially recoverable at today's price and using current technology. But as new technologies come on line, more of the five trillion barrels will become available to us. So, with the combination of new oil discoveries, new production techniques, conservation, more efficient energy consuming devices and renewable energy sources, the notion of "Peak Oil" is being replaced with the belief we will reach an "oil plateau" sometime in the middle of this century as oil demand naturally declines as a result of these factors. To read more about these stories and a link to the original Fuel Fix and Wall Street Journal Articles, visit the AEC web site at "americanenergycoalition.com" and click on the "IN THE NEWS" button. Colorado Gas Executive Says, "The Public Does Not Believe Us"September 15, 2011In a keynote address, a top Gas Industry Executive said on Monday, that the Shale Gas Industry "needs to change not only its messaging, but how it delivers its key talking points". Noting that opposition to Fracking in Colorado "has evolved remarkably over the last few years", while also denying the validity of the opposition on scientific grounds, she said "we need to become much more clever" and reposition the industry to appeal more boardly to young people. The remarks by Tisha Conoly-Schuller, Chief Executive Officer of the Colorado Oil & Gas Association, made at the opening of the "Enhanced Shale Oil & Gas Development Strategies" conference in Denver, noted "a completely heightened public awareness around hydraulic fracturing and an increase in active opposition". Saying that "the issue is serious", she explained that "those opposed to hydraulic fracturing can no longer be characterized as environmental extremists because the movement has gone mainstream". Saying "these nuts make up about 90 percent of our population, so we can't really call them nuts any more. They're the mainstream", reported by Natural Gas Watch, the "Official Blogger" for the Conference. Acknowledging a recent survey by the Colorado Oil & Gas Association that revealed that only seven percent of those polled had a favorable perception of the oil and gas industry, she pointed out that "that's lower than Congress", and that "the public does not believe us". "We're not on engineering and scientific turf anymore, we're on emotional turf, and we need to get our point across", she said. "Its not effective to respond to emotion with science" she told the gathering, laying most of the blame for the Shale Gas's poor public image with the HBO Documentary "Gasland" created by Josh Fox. This is good news for the Oilheat industry and clearly shows the frustration within the Natural Gas Industry and their inability to keep a lid on the facts that are at odds with their public image. And while these remarks were directed specifically at the Industry in Colorado where Shale Gas Drilling has been ongoing for a few years, it does point out how important it is to get the truth into the public discussion, because the same conditions exist here in the Northeast and the Marcellus Shale region. The Natural Gas Industry needs to be held to the same safety and environmental standards that the Oilheat Industry has been operating to for decades. Allowing the Natural Gas Drillers an exemption from the "Safe Drinking Water Act", the "Clean Water Act" the "Resource Conservation and Recovery Act" and the "National Environmental Policy Act", gives them an unfair competitive advantage and is "one" of the reasons for the wide spread between heating oil and natural gas prices today. To read more about this story and a link to the natural gas watch blog, visit the AEC web site at "americanenergycoalition.com" and click on the "IN THE NEWS" button. Note that there is also a link to the "Gasland" web site where you can view a trailer of that HBO Documentary. And please, consider making a contribution to AEC and become a Member/Supporter. As this story clearly shows, getting the message out, and telling "The Truth About Natural Gas" does have an impact on public opinion. Federal Safety Panel Blames PG&E, CA PUC For San Bruno ExplosionSeptember 7, 2011A Federal Safety Panel last week blamed a history of lax inspections by Pacific Gas & Electric (PG&E) coupled with lax oversight by the California Public Utilities Commission as the root cause for the San Bruno natural gas pipeline explosion last September, USA Today reported. The San Bruno pipeline explosion killed eight, injured dozens and damaged or destroyed fifty-five homes in the San Francisco suburb. NTSB (National Transportation Safety Board) Chairwoman Deborah Hersman, following a yearlong investigation that generated more than forty recommendations, said the disaster was not a question of "if", but "it was a question of when" this pipeline would rupture. She also warned that the same problems that led to this tragedy could exist elsewhere in the country. The NTSB report cited substandard welds in that pipeline dating back to 1956. As outrageous as it may seem, PG&E never inspected the welds in the pipe that failed because their files indicated that the pipe was "seamless". The panels findings and recommendations resulting from the investigations into this incident are sure to impact natural gas utilities, gas pipeline operators and public utility commissions nationally. Calls for better inspections, pipeline upgrades and automatic shutoff valves are already being made. The lack of automatic shutoff valves alone resulted in a ninety-five minute delay in shutting down the San Bruno pipeline, delaying firefighting and rescue efforts, as the leaking gas continued to burn. The Oilheat Industry must continue to monitor any new regulations and insure that all related costs are born by the natural gas industry and not supported by public taxpayer funds, as has been hinted by some. To read more about this story and a link to the USA Today Article, visit the AEC web site at "americanenergycoalition.com" and click on the "IN THE NEWS" button. Please note the AP video there that is linked to this story. The AP Video provides a brief recap of the safety panels report. It is worth the two minutes it takes to watch this video Keystone Pipeline Delayed by Politics Could Cost U.S. Jobs/Higher Oil PricesAugust 31, 2011Canada, our good neighbors to the north have very large proven oil reserves, and they are selling that oil to us (the U.S) at increasing higher volumes. Most of this oil, or at least the growing quantity, is coming from oil sands in Albert, where an oil boom is currently under way. After a 2002 study pegging the oil sands reserves to be the third largest in the world (175.2 billion barrels) just behind Saudi Arabia and Venezuela, huge investments have been made to develop that resource. But as the new production comes on line and crude oil output increases, our Canadian friends are finding it increasingly more difficult to get that oil to market from their land locked Canadian Provence on the border with the U.S. In September 2008, TransCanada filed an application to build a 1,711 mile pipeline from Alberta to the U.S. Gulf Coast refineries, but the application first needed to approved by the U.S. State Department because the pipeline would cross the international border between the United States and Canada. This Project is estimated to bring a $20 Billion Dollar investment and 13,000 (union) jobs along with another estimated 118,000 spin off jobs to the six states the pipeline would cross. But bureaucracy, environmentalists and other special interests are continuing to delay the approval of this project. In June 2010, TransCanada Corp. began shipping some 590,000 barrels a day, via its newly converted first phase of the Keystone Pipeline, from Alberta to the oil storage hub in Cushing, Oklahoma. This project converted an existing natural gas pipeline to transport the building glut of crude oil from Canada to the U.S. Midwest oil hub. TransCanada now wants to extend that pipeline to the Gulf Coast refineries and increase the volume of crude to 1.1 million barrels a day, but is being delayed by special interests. In the meantime, the glut of crude accumulating in Cushing, Oklahoma is being blamed for the widening differential between the price of oil futures quoted on the New York Mercantile Exchange (Nymex) and those being quoted by the Brent north sea exchange. In fact, last Thursday that spread hit a record $26.49 per barrel. At the same time, our Canadians friends are beginning to question our desire to buy their oil, prompting a proposal to build another pipeline from Alberta to the Pacific where the oil could be exported to the Asian markets, and in particular, China, instead of the U.S. The State Department, following dozens of public meetings, hundreds of thousands of public comments, input from the EPA, DOT, USDA, DOI, DOE, other federal agencies, state agencies and other special interest groups, including environmental groups, did release a draft environmental impact statement in April 2010. That draft statement concluded that the proposed Keystone pipeline posed little risk to the environment. But the EPA criticized the report and forced the State Department to provide a more detailed report creating another sixteen month delay. Last Friday, the State Department released its latest report, and while it contains much greater detail, still concludes the Keystone XL Pipeline proposal poses little risk to the environment. This latest report now faces a 90 Day Review period and examination by other Federal Agencies. This is an important issue, not just for our industry, but for all Americans, our economy and jobs. AEC has posted a number of articles detailing this subject on our web site. Please visit americanenergycoalition.com and read more about this very important topic. New York State AG Subpoenas Shale Gas DrillersAugust 24, 2011The Attorney General for New York State recently issued subpoenas to several natural gas drillers asking them to explain how they identify the quantities of recoverable natural gas that they declare to investors, according to a story in the Wall Street Journal. AEC first introduced this story in an E-Alert published on July 7, 2011 entitled "Shale Gas: How Big Are The Reserves, What Cost To Extract". In that Alert, we sited a New York Times review of gas industry e-mails and other internal documents obtained thru an open records request. The Times story suggested that the gas industry may be overstating the size of the gas reserves and understating the true cost to extract the shale gas to investors. Describing the contradiction between public statements and internal documents as a "giant ponzi scheme", reminiscent of the "dot-coms", it labels the activity "inherently unprofitable" unless the price for shale gas "rise[s] sharply". In light of these questions, New York Attorney General Eric Schneiderman, last week sent subpoenas to Range Resources Corp., Goodrich Petroleum Corp., and Cabot Oil & Gas Corp. seeking information on how they calculate their natural gas reserves and how they represent their profitability to investors, according to the Wall Street Journal. The subpoenas also seek information on the cost and longevity of wells, the Journal reported. This is, potentially, very good news for the Oilheat Industry, because if these supply and cost questions prove to be true, the price of gas could rise sharply in the near future, and at the same time, present new challenges for the gas industry and their relationship with the investment community. These new revelations also come at a time the gas drillers are coming under more environmental scrutiny for water contamination, air pollution and waste disposal concerns related to spent fracking fluids. These are all positive developments for us in comparing our fuel with utility gas. Unfortunately, the main stream media is not reporting on these stories in any serious way; so it is going to be up to us, the Oilheat Industry, to tell our story and make the comparisons and get that message out to Oilheat customers and policy makers. To read more about this story and the New York Times story we reported on back in July, visit the AEC Web Site "americanenergycoalition.com". And while there, please consider making an "On Line" donation to support AEC's work. Because, despite the recent bleak outlook for Oilheat, these new eye opener's when considered as a whole, create some serious problems for the shale gas drillers while offering us reason for optimism. New Bio-Fuel Breakthrough AnnouncedAugust 18, 2011A Cambridge Massachusetts Company, recently announced a Bio-Fuel breakthrough that may prove to be a game changer. Joules Unlimited, using genetic engineering, has developed an organism that uses carbon dioxide, water and sunlight to creat a liquid fuel. Joule's CEO, Bill Sims, says the process utilizes the bacteria to produce a chemical and secretes the fuel. The result? A liquid fuel that can fill demands for diesel (fuel oil) and ethanol. The Oilheat Industry has recognized the benefit of homegrown, renewable bio-fuels for several years now. In fact, just recently, the fuel oil specification (ASTM D-396) was revised to allow for a bio-fuel component of up to 5%. This is just one of the areas where Oilheat is out on the cutting edge, putting it years ahead of the Natural Gas Industry. It also addresses recent questions focused on feedstock options and transportation of bio-fuels. This new process may hold the answer to both of these questions. With he main ingredients being carbon dioxide and water, production plants can be sited almost anywhere, it doesn't compete with our food supply and you don't have to wait for it to grow, like algae. And best of all, it could make Oilheat greener in comparison to natural gas; as gas continues to get dirtier as more "fracked" gas enters the pipeline. Joule is taking the first big step toward commercialization, leasing more than 1,000 acres of land in New Mexico. They hope to prove the organism can produce fuel quickly, on a large scale, nearly anywhere. To read more about this story and for a link to the Fox News Article, including a video of the Molly Line Report, visit the AEC Web Site "americanenergycoalition.com". National Public Radio Reports on Fracking & Pollution ConcernsAugust 12, 2011Even NPR (National Public Radio) is talking about the potential environmental dangers of the controversial shale gas drilling technique known as Hydraulic Fracturing or "Fracking". In a recent story, NPR reported on concerns that this method of extracting natural gas from shale formations deep underground is contaminating drinking water supplies. The number of shale gas wells in Pennsylvania alone has grown from just 34 in 2007 to 1,446 last year. Meanwhile, policymaker's are looking at the possibility of restricting the activity over environmental concerns. That has already happened in places like Buffalo, NY, Pittsburgh and most recently Morgantown W,Va. NPR reported that many "Fracking" opponents were inspired by the HBO Documentary "Gasland" that showed Colorado resident Mike Markham lighting his tap water on fire after his drinking water well was contaminated with natural gas from fracked wells. But some environmentalists are concerned that too much attention is being focused on a single issue and note broader concerns with fracking including air pollution and toxic waste spills. Amy Mall, senior policy analyst for the National Resources Defense Council expressed hope that the ground water focus will eventually lead to exposing broader environmental dangers. To read more about this story and other related topics and to obtain a link to the NPR Article visit the AEC Web Site "americanenergycoalition.com". Fracking Fluid Kills Trees In Controlled TestAugust 5, 2011A controlled test, in a West Virginia Forest, of the chemical laced fluids used in natural gas drilling killed most of the vegetation and trees in the test area, according to a report by Bloomberg Businessweek. Lead researcher Mary Beth Adams, a soil scientist with the U.S. Forest Service, says that the damage to the trees and vegetation, detailed in a case study published in the Journal of Environmental Quality, shows the need for more research into gas industry practices. The test results are troubling, because gas drillers are using the fluids to extract natural gas from underground shale using the controversial method known as "fracking." Fracking is exempt from the federal Clean Drinking Water Act, and drillers often dispose of fracking fluids in public sewage systems that are not designed to treat them. The test was conducted by Berry Energy in cooperation with the West Virginia Department of Environmental Protection. The company sprayed 75,000 gallons of fracking fluid on a test site of less than one-half acre in the Monongahela National Forest. "Within a few days, all ground vegetation was dead". "Within 10 days, the leaves of the hardwoods began to turn brown and fall off. Within two years, more than half of the 150 trees were dead. "This study suggests that these fluids should be treated as toxic waste," argues Jeff Ruch, executive director of Public Employees for Environmental Responsibility. To read more about this story and to obtain a link to the Bloomberg Businessweek Article visit the AEC Web Site "americanenergycoalition.com". While there, you can read more about "Fracking" and how this extraction technique is believed to be harmful to the environment. The issue here for the Oilheat Industry, beyond the double standards being applied to Oil vs. Gas, is a price competitive one. By allowing the shale gas drillers to shortcut environmental safety standards, keeps their costs down and artificially lowers the cost of natural gas. San Bruno Officials Critical of State's Investigation Into Deadly ExplosionAugust 1, 2011City officials in San Bruno, California, site of a massive natural gas explosion in September 2010 that killed eight people and destroyed 38 homes, have criticized the state's investigation of the blast as being poorly researched and unsubstantiated. In a related development, the adjacent City of San Francisco intends to sue several government agencies for failing to enforce standards that might have prevented the blast. An attorney for San Bruno sent a sharply worded letter to the state saying it's conclusions were incorrect and not supported by the facts. It says investigators relied too heavily on gas industry groups rather than a "real and fact based evaluation". Meanwhile, San Francisco City Attorney Denis Herrera announced his intention to sue several state agencies under the Pipeline Safety Act; saying the California Public Utilities Commission and the Pipeline and Hazardous Materials Safety Administration "have a poor track Record in actual enforcement, instead adopting a minimalist, 'check the boxes' approach to their regulatory obligations under the act". San Bruno officials are at odds with a state blue ribbon report that blamed a 2008 sewer project as the cause of the 2010 massive explosion, rather than what they believe the facts point to, poor pipeline maintenance and inspection. To read more about these two related stories and links to the source documents visit the AEC Web Site "americanenergycoalition.com". While there, you can see and read many more stories important to the Oilheat Industry. And please, consider making an On-Line Contribution to help support AEC's activities. Natural Gas Industry Spent $1.68 Million Lobbying, First QuarterJuly 22, 2011Three Natural Gas Industry Trade Associations spent a combined $1.68 Million for Lobbying activities during the first three months of 2011 in an effort to defend itself on multiple issues: The American Natural Gas Alliance (ANGA) is facing increased environmental scrutiny over the new controversial drilling technique know as Hydraulic Fracturing, or "Fracking". A recent Cornell Study, the subject of the June 23, 2011 "E-Alert", reveled life cycle emissions from wells using this method of extraction is dirtier than burning coal. A newly reintroduced bill in Congress called the "FRAC Act", would require the Industry to make public the constituents of fracking fluids being used by drillers and believed to be hazardous. It would also force drillers to comply with the Clean Drinking Water Act that they are currently exempt from. The American Gas Association (AGA) is on the defensive after major explosions with multiple deaths, injuries and extensive property damage has called Pipeline Safety into question. This was the subject of the June 30, 2011 "E-Alert". Transportation Secretary, Ray LaHood has launched a national pipeline safety initiative to address the issue. Utility documents released as a result of the NTSB Investigation into the San Bruno California incident raised many safety concerns and is one reason for LaHood's action. The Interstate Natural Gas Association of America (INGAA) is lobbying to defend both the "Fracking" and "Pipeline Safety" issues; but it is also trying to get Natural Gas included in a portfolio of seven fuels considered "Clean" that is part of a proposal to generate 80% of US electricity from clean fuels (replacing coal) in the coming years. Based upon the Cornell Study, this would be a step backwards, environmentally, as shale gas would be necessary to meet this demand. To read more about these three stories and for links to the original stories themselves, visit the AEC Web Site "americanenergycoalition.com". These are important issues for the Oilheat Industry and how these issues play out will affect the future of Oilheat and the price of fuel oil and natural gas going forward. Natural Gas Industry Spent $1.68 Million Lobbying, First QuarterJuly 22, 2011Three Natural Gas Industry Trade Associations spent a combined $1.68 Million for Lobbying activities during the first three months of 2011 in an effort to defend itself on multiple issues: The American Natural Gas Alliance (ANGA) is facing increased environmental scrutiny over the new controversial drilling technique know as Hydraulic Fracturing, or "Fracking". A recent Cornell Study, the subject of the June 23, 2011 "E-Alert", reveled life cycle emissions from wells using this method of extraction is dirtier than burning coal. A newly reintroduced bill in Congress called the "FRAC Act", would require the Industry to make public the constituents of fracking fluids being used by drillers and believed to be hazardous. It would also force drillers to comply with the Clean Drinking Water Act that they are currently exempt from. The American Gas Association (AGA) is on the defensive after major explosions with multiple deaths, injuries and extensive property damage has called Pipeline Safety into question. This was the subject of the June 30, 2011 "E-Alert". Transportation Secretary, Ray LaHood has launched a national pipeline safety initiative to address the issue. Utility documents released as a result of the NTSB Investigation into the San Bruno California incident raised many safety concerns and is one reason for LaHood's action. The Interstate Natural Gas Association of America (INGAA) is lobbying to defend both the "Fracking" and "Pipeline Safety" issues; but it is also trying to get Natural Gas included in a portfolio of seven fuels considered "Clean" that is part of a proposal to generate 80% of US electricity from clean fuels (replacing coal) in the coming years. Based upon the Cornell Study, this would be a step backwards, environmentally, as shale gas would be necessary to meet this demand. To read more about these three stories and for links to the original stories themselves, visit the AEC Web Site "americanenergycoalition.com". These are important issues for the Oilheat Industry and how these issues play out will affect the future of Oilheat and the price of fuel oil and natural gas going forward. CBS News, 60 Minutes, Aired Story On Fracking, July 10, 2011July 11, 2011The CBS News Show, 60 Minutes, aired a story last night on "The Pros And Cons Of Shale Gas Drilling". This Story was first published on November 14, 2010 and updated on June 21, 2011 before running Sunday Night. The segment moderated by Lesley Stahl talked about natural gas, once considered to be in short supply, that is now being touted by some as "the hope of the future - the answer to our energy problems". In her interview with Aubrey McClendon, the CEO of Chesapeake Energy, he claimed the US shale reserves hold the energy equivaliant of two Saudi Arabias. McClendon stated that "gas has half the carbon emissions of coal, and no mercury". That statement, of course, is in direct contradiction to the Cornell Study released just a couple of months ago. Stall also interviewed two "Shaleionaires" one of whom received a check in excess of $434,000 and the other nearly $2,000,000 for the mineral rights to the shale gas below their properties. Then Stahl interviewed homeowners who's drinking water wells have been contaminated and got McClendon to admit to accidents by his company and others showing images of a well on fire after an accidental explosion and 17 dead cows in Louisiana that drank water contaminated with fracking fluid. Michael Brune, the Executive Director of the Sierra Club, was also interviewed and noted the "Halliburton Loophole" that exempted these shale gas drillers from compliance with the Save Drinking Water Act, saying that the drillers needed to be better regulated. If you missed the show last night you can go to the CBS news web site to view the the entire story at "http:www.cbsnews.com/stories/2011/07/10/60minutes/main20072986.shtml". While there you can also leave a comment on the story if you wish. Shale Gas: How Big Are The Reserves, What Cost To ExtractJuly 7, 2011The New York Times recently reviewed hundreds of natural gas industry e-mails and internal documents that suggest shale gas reserves may not be as plentiful as first thought. In addition, the cost to extract the gas from shale may be higher than the gas is worth making many wells unprofitable. Of major concern is the fact that yields from many of these wells appear to be falling off quickly, raising questions about their long term supply estimates. These communications, obtained thru open records requests, suggest that some natural gas industry insiders are saying one thing publically and yet another amongst themselves. Some have likened this double speak to a giant ponzi scheme. "Money is pouring in" from investors even though shale gas is "inherently unprofitable," an analyst from PNC Wealth Management, an investment company, wrote to a contractor in a February e-mail. "Reminds you of dot-coms." The environmental impact created by this extraction technique know as Hydraulic Fracturing of "Fracking" is also coming under greater scrutiny as more incidents of contaminated drinking water supplies and contaminated waste water are exposed. Methane levels are also rising in the areas around the drilling sites, prompting others to take notice. Methane is a potent green house gas with up to 72 times the global warming potential of carbon dioxide. This is important to the Oilheat industry because without a cheap and plentiful supply from shale deposits, the natural gas industry is running out of domestic supplies and will have to fall back on LNG (Liquified Natural Gas) a much more expensive alternative with a huge carbon footprint. But either way, shale gas or LNG, the Oilheat Industry is moving into a better environmental position and we need to get the facts out. For more on this story, or to obtain a link to the original New York Times story, visit the AEC Web Site "americanenergycoalition.com" and click on the "In The News" tab. And while on the web site, learn more about the American Energy Coalition and consider joining by making a secure on line contribution to our effort to promote Oilheat and speak the truth about natural gas. Natural Gas Pipeline Safety In The News AgainJune 30, 2011Pacific Gas & Electric, the California Utility under fire for the Deadly San Bruno pipeline explosion that killed eight people and devastated the residential suburb south of San Francisco last September, is under fire again. This time from their delay in releasing safety records and for the accuracy of the information contained in those records, according to a new Associated Press story. Last week PG&E released an additional 16,000 documents. It also admitted that none of the 20 leak surveyors and pipe repairmen involved in a 1998 incident recalled the damage to the pipe as stated in the document given to the NTSB in May. National Transportation Safety Board Chairwoman Deborah Hersman has said the delay in releasing critical information could hamper NTSB Investigators progress in finding the cause of the accident. For more on this story, or to obtain a link to the original Associated Press story, visit the AEC Web Site "americanenergycoalition.com" and click on the "In The News" tab. And while on the web site, learn more about the American Energy Coalition and consider joining by making a secure on line contribution to our effort to promote Oilheat and speak the truth about natural gas. Fracked Gas Worse Than Coal On EnvironmentJune 23, 2011A recently released Cornell University Study concluded that burning natural gas from wells that employ the new and controversial hydraulic fracturing (or fracking) technique is more harmful to the environment than burning coal. The "fracking" process allows large amounts of natural gas, which is 95% methane, to escape and contaminate the atmosphere and underground drinking water supplies. Methane has been proven to be up to 72 times more dangerous than carbon dioxide on the environment, and a large contributor to global warming. This story has been covered by the New York Times, The Hill and The Huffington Post that headlined it the "Highway To Hell"; but hasn't been widely reported by the main stream media. But this is an important story for the Oilheat Industry and AEC thinks you should know about it. To read the entire report and to obtain links to the other media stories noted, visit the AEC Web Site "americanenergycoalition.com" and click on the "In The News" tab. And while on the web site, learn more about the American Energy Coalition and consider joining by making a secure on line contribution to our effort to promote Oilheat and speak the truth about natural gas. |
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