Policy Studies

Challenges of Decarbonizing the U.S. Natural Gas Industry

I believe most US natural gas industry executives largely discount decarbonization of natural gas since the U.S. withdrew from the Paris Agreement. Given the pace if shale gas, LNG export and infrastructure investments, some executives might believe a future without natural gas is unrealistic. Despite natural gas' superior qualities, it might be risky to think the fuel has gotten a pass for replacing coal in power plants. [node:read-more:link]

Gas from shale drilling to face strong headwinds next decade

The US Energy Information Administration said in October that US crude oil production had climbed to 11.3 million barrels a day. That also means production of associated gas from shale wells is increasing as well. That would put the United States on a par with Russia, which surpassed Saudi Arabia to become the world’s largest producer of crude oil last year. With news like this, it’s fairly easy for shale oil producers to get caught up in day-to-day challenges associated with production and its challenges, like moving crude, associated gas, and natural gas liquids to market.

Developers often don’t focus on large-scale changes that have drastically affected the oil industry. However, historically certain events have radically changed the oil industry. I believe that a growing “green wave” may change global power and transportation and adversely affect shale oil’s future in the next 10–15 years. With breakthroughs in technology, changes may come even sooner.

Read article at Russo, T. (2019, February). Gas from shale drilling to face strong headwinds next decade. Natural Gas & Electricity 35/.7.  [node:read-more:link]

Reworking NEPA in the Age of Uncertainty

Implementing the National Environmental Policy Act (NEPA) over the years has produced a lot of paper, delays, and high costs to make sure that projects consider the environment and adequately mitigate project impacts on proposed energy projects, including renewable energy. Current attempts by the President's Council on Environmental Quality (CEQ) to revise the NEPA regulations and procedures will fail unless a cooling-off period coupled with dispute resolution with state agencies is established. [node:read-more:link]

FERC’s 1999 Pipeline Policy Could Face Environmental Headwinds

While FERC and the gas pipeline industry believe that the policy will be tweaked, I see some serious NEPA challenges ahead. The issues seem similar to what FERC's hydropower program faced when the Commission was asked to analyze cumultive impacts in the mid 1980s. Also, the outcome of FERC's review will also spill over to LNG Export Terminals, especially with respect to the need to anlyze greenhouse gas and climate change in FERC environmental reviews.
 
Russo, T. (2018, May). FERC's 1999 pipeline policy could face environmental headwinds. Natural Gas & Electricity 34/10,  p. 18.

Will NAFTA Renegotiation Stop Greening of Mexico’s Power Sector?

Mexico decouples CO2 emissions with electricity generation

Today trade representatives from Canada, Mexico and the United States are meeting in Washington DC to begin renegotiating the North American Free Trade Agreement (NAFTA). Everyone is focused on jobs, competitiveness and modernizing the agreement. Few people are tuned into the environmenal side of things at this time, but they should be because of the environmental benefits. [node:read-more:link]

Use of Natural Gas Indices

How Natural Gas was priced in 2016

Recently the FERC held a technical conference on Natural Gas Indices. Back in March 2017, I was asked by the the Natural Gas & Electricity Journal to write about natural gas indices. I hope the article below will provide a good overview of the issues and stimulate discussion.

"Russo, T. (2017, August). Using natural gas price indices. Natural Gas & Electricity 34/1, ©2017 Wiley Periodicals, Inc., a Wiley company."  [node:read-more:link]

Will NAFTA's Repeal Threaten U.S. Natural Gas Exports to Mexico and Global Markets?

Mexico is becoming more dependent on pipeline gas from the U.S.

There is a great deal at stake in modernizing the North American Free Trade Agreement (NAFTA). While many news outlets have focused on factory jobs leaving the U.S., I wanted to take a closer look at the growing exports of natural gas to Mexico and how natural gas and electric power infrastructure investments in both countries could be affected if NAFTA is repealed or negotiations go poorly.

Besides energy investments, I also touch upon how U.S. Disrespect disrespect and truculence from President Trump regarding immigration and "the Wall" can influence Mexico's 2018 Presidential Election and lead to a "lose-lose" situation for both countries.  The consequences can be dire and may affect the ability of the U.S. to compete in the global market place.

The University of Colorado Denver's Institute for International Business/CIBER and Global Energy Management Program was kind enough to extend me an invitation to speak on the matter on March 29, 2017. While it's impossible to share all aspects of our discussion, I still wanted to share the presentation [PDF} with you and welcome comments and questions on the subject.

Note: These ideas are my own and I am not representing any organization or government. Nor I am I being paid to write this post. [node:read-more:link]

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