Tag Archives: LNG

Murkowski Outlines Senate Energy Plan

In the GOP weekly address, Sen. Murkowski describes the Energy Policy Modernization Act, which includes liquid natural gas (LNG) exports. Looks like it is still on the Senate calendar this week…although it may slip.

On LNG exports, the bill requires the Energy Secretary to approve or disapprove LNG export applications within 45 days, so the applications don’t linger. That’s for nations that don’t already have free trade agreements with us, since most free trade agreements already address expedited LNG exports. It also puts federal energy regulatory commission (FERC) in control of all federal LNG authorizations.

The bill authorizes a new “e-prize” competition, which is basically an x-prize for energy. I’m seeing more and more of these x-prizes in public policy.

The section on nuclear power misses the opportunity to promote molten salt reactors, a nice byproduct of a robust rare earth element policy…but it does call for more nuclear reactor fusion and fission reactor prototypes, so that might encompass molten salt even if it isn’t listed specifically.

There are a ton of repeals and program eliminations, which is a good sign of conservative legislation.

  • Repeal of the methanol study.
  • Repeal of the weatherization study.
  • Repeal of various DOE programs.

Unfortunately, it also reauthorizes the Land and Water Conservation Fund, which is bad public policy.

Natural Gas Production by State

From the American Legislative Exchange Council (ALEC):

One of the greatest achievements of the American 21st Century has been the advances made in hydraulic fracturing and horizontal drilling technologies. These innovative well stimulation and extraction techniques have made enormous quantities of hydrocarbons that have been locked away in shale rock accessible now for the first time.

Between 2000 and today, domestic natural gas withdrawals have increased by roughly 25 percent, leading to an abundant supply of inexpensive fuel that can be used to generate electricity and provide space heat. A decade ago, policymakers were discussing the need to import liquefied natural gas (LNG) in order to meet American energy demands. Today, LNG export terminals are under construction in Maryland, Louisiana and Texas.

2015-05-07-Map-Energy-Production-Natural-Gas-2

The map above shows total natural gas production by state in 2013, the most recent year for which data is available. Unsurprisingly, the difference between Pennsylvania and New York — both of which lie on top of the gas-rich Marcellus shale play — is stark. Pennsylvania, having embraced hydraulic fracturing currently produces roughly 140 times more natural gas compared to New York, which has implemented a statewide ban on the well stimulation technique.

DOE Must Expediate LNG Export Permits

The United States Department of Energy (DOE) finalized reforms it proposed on May 29 to its process for determining whether planned Liquid Natural Gas export projects are in the national interest as reported in Oil & Gas Journal:

  • Liquid Natural Gas (LNG) export proposals are presumed to be in the national interest under the Natural Gas Act.
  • This excludes countries that do not have a free-trade agreement (FTA) with the United States.
  • DOE has conducted an informal review for more than 30 years, and has issued eight conditional authorizations for LNG exports to non-FTA countries in the last 3 years.

However, The Center for Liquefied Natural Gas expressed serious reservations about the direction of the Department of Energy’s procedural landscape in response to the proposed reforms becoming final and said:

  • The Department of Energy could improve regulatory certainty by instituting a policy of prompt approval for final non-FTA export permits once the applicants have completed their National Environmental Policy Act reviews.
  • Continued regulatory uncertainty is not beneficial.
  • The development of these projects and the economic benefits they will deliver to this country should be expedited.