Natural Gas: Telling Our Story, Meeting The Challenges, Overcoming The Obstacles

America's Independent | June 2003 | Barry Russell (Pres. IPAA)

[BOBTHENAILER]

As we gather this month in Boca Raton for IPAA's Midyear Meeting, our attentions are focused on several key issues: what the future holds for domestic natural gas supply, the availability of good drilling prospects and sufficient investment capital, the vulnerability and volatility of international oil markets, and strategies to meet the challenges and changing needs of consumers.

Chief among our discussions also will be critical questions about how to restore public confidence in our industry, and how to be credible spokespersons on supplying our energy needs and meeting legitimate environmental concerns. The widespread misunderstanding of our industry by consumers, investors, and policy makers has cost our industry billions of dollars and resulted in policies that jeopardize our energy security and our economic vitality.

America's independent producers are working tirelessly to provide this nation with a clean, reliable fuel source that will energize our economic future. More power plants, homes, schools, and hospitals are demanding natural gas as a preferred fuel source. Key national industries also depend on it as a feedstock. In fact, demand for natural gas is projected to grow by more than 30 percent from 2000 to 2015.

Emerging natural gas supply issues demand that we set the record straight by telling our story loud and clear. It is essential that we step up our efforts to meet the challenges ahead and take every opportunity to overcome opposition by doing a better job of educating the public and policy makers about our industry.

Our Natural Gas Message Points

Natural gas producers were among the first to recognize the challenges of rapidly rising natural gas demand. From coast to coast, natural gas has quickly become a preferred fuel source for new homes, factories and electricity generation plants. And it will continue to do so. This is not a surprise. In 1999 and many occasions thereafter, the industry warned federal officials that realizing the full potential of natural gas will require government and industry focus and action.

Meeting the challenges of maintaining and expanding domestic gas has been difficult over the past few years.Wells are depleting at record rates. Drilling costs hae substantially increased. Access to capital has been constrained by factors ranging from the collapse of the merchant energy business to restrictive lending practices by financial institutions. ANTI-DEVELOPMENT GROUPS HAVE ENSNARED THE INDUSTRY IN A STRATEGY OF TIME-CONSUMING LITIGATION. But, the industry can overcome these challenges.

Policymakers and consumers must act now to ensure an adequate supply of natural gas for the nation. In the short term, imports are not an option and few other solutions exist. While drilling rig counts have increased 27 percent since the beginning of the year, developing new production can take 6 to 18 months after a well is completed. We must ensure pipelines are available to move this new gas to the marketplace. In the long term, Congress must pass a comprehensive energy bill that increases access to the resource base on federal lands and that reforms the tax code and makes available more capital for investment. The administration must continue its streamlining efforts for leasing and permitting. Financing sources must recognize the need for capital to produce natural gas. "AND THE ABUSE OF THE LITIGATION STRATEGY BY ANTI-DEVELOPMENT GROUPS MUST STOP."

Our message is clear. North America has an adequate resource base of natural gas to meet the expected demand. We have demonstrated that we can find and produce natural gas safely with attention to environmental protections. We have been doing it for more than three decades, despite unreasoned opposition and myriad challenges.

[BOBTHENAILER]

Information on the natural gas crisis from the industry's perspective. During the course of the next few months I'm going to undertake an effort to catalog and document the massive, across the board, obstructionism by environmental lawsuits.

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[BOBTHENAILER]

Ping

[Grampa Dave]

I wonder how much natural gas can be recovered when a Watermelon Jihadists is processed for natural gas?

Then throw in about 30 million card carrying Rats who hate America.

[kellynla]

Since you obviously are more informed on the natural gas industry than I, maybe you can explain why there is not natural gas drilling in Afghanistan. From what I understand, Afghanistan has one of the largest deposits of natural gas in the world. It would certainly be better than the Afghanis raising poppy. Thanks in advance.

[SierraWasp]

"From coast to coast, natural gas has quickly become a preferred fuel source for new homes, factories and electricity generation plants."

You left out Muni Transit Systems for their buses. (grin)

[SierraWasp]

"We must ensure pipelines are available to move this new gas to the marketplace."

This is gonna be the big bottleneck! Here's where the EnvironMental CommuNutty is gonna throw up the litigation blockade!!!

If they've blocked road expansion and improvement for three decades in CA, they're certainly going to turn fanatical on pipelines! Plus, they hate Texas companies like El Paso Natural Gas pipeline companies!!!

[dalereed]

It's time to eliminate gas burning power plants and build nukes!

Drill the California coast and put the gas plants on oil until the nukes can ge brought on line.

Along with building nukes, every one should be incorporated with desalinazation to increase the water supply!

[BOBTHENAILER]

It would certainly be better than the Afghanis raising poppy. Thanks in advance.

During the Soviet invasion, there was rampant speculation that one of the main reasons for that invasion was to capture the natural gas supplies in Afghanistan. I believe there is a pipeline that exists today, that goes from there to the former Soviet Union.

IMHO, there will be more drilling in the future and the product will be used for power generation in Afghanistan, which is sorely needed.

[SierraWasp]

You mean towing icebergs down to Long Beach harbor won't solve the water problem? (/sarcasm)

[SierraWasp]

"the product will be used for power generation in Afghanistan,"

Not if their women can burn their burkas, like ours burned their bras in the 70's! (grin)

[BOBTHENAILER]

Then throw in about 30 million card carrying Rats who hate America.

LOL I think the "greenie renewable crowd" calls that huge potential resource BIOMASS. Essentially, biomass production occurs just like regular oil & gas. You throw a bunch of stinking rotten garbage in a landfill, let it sit and ferment and create methane for a few years, then drill a few shallow wells and Voila', you have natural gas.

What a great idea you have there GD, a little wicked, but then, these are tough times and EVERY resource should be tapped.

[BOBTHENAILER]

If they've blocked road expansion and improvement for three decades in CA, they're certainly going to turn fanatical on pipelines! Plus, they hate Texas companies like El Paso Natural Gas pipeline companies!!!

Ain't it the truth.

[kellynla]

Well that's what I thought. I know there was a plan to take out the poppy fields during the war. But if natural gas production were increased the whole economy of Afghanistan would be improved dramatically. We might as well use the natural gas in Afghanistan before we use up ours.

[Quix]

My friends in Alaska deride loudly

the WASTED, BURNED OFF NATURAL GAS

which SHOULD have been already coming our way via a DUAL/2ND pipeline that SHOULD HAVE BEEN BUILT AT THE SAME TIME AS THE OIL PIPELINE WAS.

And, they note, that the environuts are crazy about the caribu etc. and the oil pipeline. The animals make many uses of the pipeline. If my memory is right, they even use the temp differential caused breezes under the pipeline to help minimize horrendous mosquito infestation attacks.

But we all know the enviro nuts are not influenced by facts. They have to be out manoeuvered politically etc.

No small task.

[Dog Gone]

We might as well use the natural gas in Afghanistan before we use up ours.

How do you propose to get it from there to here?

We're sitting on a huge natural gas reservoir that already exists behind pipe in Alaska, and it's been trapped there for decades. At least it's on the same continent.

[Mannaggia l'America]

Is propane considered "natural gas"?

I keep reading about the impending problems with natural gas supply and can't figure out if it affects me directly or not, having propane heat and hot water.

A large number of the new houses being built in my area are using propane. I have a 1,000 gallon propane tank buried in my backyard.

[Carry_Okie]

Actually, another form of biomass is combustable wood. The National Forests produce enough fuel, on a sustained basis, to supply the domestic electrical needs of 190 million Americans.

The RICOnuts won't let that happen either.

[bigfootbob]

I read somewhere that Kansas or Oklahoma floats on seas of natural gas. Regulations have prevented it being tapped. It was reported the gas is stored in huge underground caverns and recently one ignited burning holes through the earth in a small town, have you heard about this?

[kellynla]

Well now you are getting out of my paygrade.LOL Just a thought. If the Russkies can use it we might as well drill it and pipe it to them since we are "in country."