U.S. Glut In Natural-Gas Supply Goes Global.
According to the Wall Street Journal, “More shale gas than ever is leaving U.S. shores. Unfortunately for the country’s beleaguered
natural-gas producers, global prices for the fuel have never been lower. Natural-gas prices in Europe and Asia have plummeted this year to historic lows in the midst of reduced demand, the trade dispute with China and brimming storage facilities in Europe.
The biggest driver of falling prices, though, has been the U.S. gas that is spilling into global markets. ‘It was inevitable,’ said Ira Joseph, head of global gas and power analytics at S&P Global Platts. ‘There is simply too much supply coming into the market
at one time.’ The price decline has eliminated some of the allure involved in liquefying cheap U.S. gas and shipping it abroad, where it typically fetches much higher prices. That is a concern for the exploration-and-production companies that have flooded
the market with cheap shale gas and are already struggling with flagging shares and restive shareholders. The more international prices fall, the better the chance that the waterfront facilities that produce liquefied natural gas, or LNG, for overseas shipment
will reduce their intake of gas, which has helped keep domestic gas prices from collapsing completely this year.” [Wall Street Journal,
8/27/19
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Energy Fallout From The China Trade Fight.
According to Axios, “Crude oil: ‘Oil prices rose on Monday after the United States and China both suggested they could ease up in a
trade war that has undermined the outlook for the global economy and for crude demand,’ per Reuters. LNG: Bloomberg explores how the U.S-China trade battle is affecting plans for new LNG export projects. ‘Tellurian Inc. and other developers will probably delay
final investment decisions on multibillion-dollar U.S. LNG export projects to 2020 from this year as the tensions complicate negotiations with potential Chinese gas buyers, according to Bank of America,’ they report. Electric cars: ‘Tesla Inc. will raise vehicle
prices in China this week, two people familiar with the matter said, a reaction to the trade war that weighs on the country’s currency and threatens to once again lead to higher import tariffs,’ according to another Bloomberg report.” [Axios,
8/26/19
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Editorial: Natural Gas Bags: Pols Scream At The Results Of Their Own War On Fossil Fuels.
According to the New York Post Editorial Board, “Do New York politicians want to phase out the use of fossil fuels — or not? On Friday,
Assemblyman William Colton (D-B’klyn) blasted National Grid for turning away new Brooklyn natural gas service customers. Without a gas pipeline recently nixed by Team Cuomo, the company says, it won’t have enough gas to fill new orders. Colton and allied pols
insist (dubiously) that National Grid can find other sources of gas. But why is he suddenly demanding greater use of the fuel? After all, Colton cosponsored the state’s ‘Green New Deal,’ which aims to do away with fossil fuels, like natural gas, and shift
to a ‘carbon-free’ economy. He should be overjoyed that a utility is ending new gas hookups. The state, by the way, rejected the Williams/Northeast Supply Enhancement pipeline to Queens because Gov. Andrew Cuomo, too, wants to end fossil fuel use here. That’s
not the official explanation, but Cuomo has turned down other pipelines as well; each time, his folks cite ‘water quality’ issues, because federal law won’t let states kill pipelines (which serve large regions of the country) for any other reason.” [New York
Post, 8/26/19
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Op-Ed: Texas Natural Gas Is Delivering Climate Progress.
According toa n op-ed by Steve Everley in the Washington Examiner, “Everyone knows Texas is a prolific natural gas producer, and in
recent years it has also become a major exporter of liquefied natural gas, or LNG, to our trading partners all over the world. Indeed, the U.S. shale revolution, which began in Texas, has transformed the entire nation into an energy powerhouse. What many people
do not realize, however, is that the Texas-led gas boom has also been a valuable tool in addressing climate change. U.S. carbon dioxide emissions are currently at a 25-year low, thanks in large part to technological advances and surging natural gas production
in the Lone Star State. The use of clean and abundant natural gas has been the primary factor in reducing U.S. greenhouse gas emissions. As natural gas’ share of U.S. electricity grew from 19% in 2005 to 31% in 2017, carbon dioxide emissions from electricity
generation declined by about 3.8 billion metric tons, a 28% drop. More than 60% of this decline is directly attributed to increased natural gas use, meaning affordable natural gas delivered a savings of over 2.3 billion metric tons of emissions avoided. The
export of LNG is also bringing these climate benefits to the world, particularly to China and India. By the end of 2019, U.S. LNG export capacity is expected to more than double, as several liquefaction units, sometimes called ‘trains,’ become fully operational.”
[Washington Examiner, 8/26/19
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EPA Opposes NRECA Bid To Push Novel Air Law Claim In Landfill Case.
According to Inside EPA, “EPA is opposing efforts by a group of electric cooperatives to substitute for a disbanded utility group in
pending litigation against Obama-era landfill methane rules, a stance that could block efforts by the co-ops to preserve the utility group’s novel claim that EPA cannot strengthen existing standards under section 111(d) of the Clean Air Act. EPA’s position,
outlined in an Aug. 23 Department of Justice (DOJ) legal filing in the United States Court of Appeals for the District of Columbia Circuit, also opposes the National Rural Electric Cooperative Association’s (NRECA) bid to intervene in the case, National Waste
& Recycling Association, et al., v EPA, et al., effectively joining environmentalists who also oppose NRECA’s bid. ‘NRECA does not meet the requirements for either substitution or intervention, and its motion should be denied,’ DOJ writes on behalf of EPA.
While DOJ opposes NRECA’s bid to substitute or intervene for UARG, it leaves the door open to allowing NRECA to file an amicus brief in the litigation. NRECA’s attempt to join the suit is being closely watched because of its potential effect on future EPA
efforts, perhaps under a future presidential administration, to strengthen other section 111 rules such as power plant GHG limits.” [Inside EPA,
8/26/19
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EPA Extends Deadline For States' Landfill Plans.
According to E&E News, “EPA published a deadline extension today for states to develop plans to control methane emissions from municipal solid waste landfills. The Federal Register
notice comes just three days before the Thursday deadline for states to submit their own plans. It will go into effect Sept. 6. The rule directs owners of landfills that have emissions of at least 34 metric tons of non-methane organic compounds to collect
and control landfill gas, which is about 50% methane. EPA suggested in the final rule that the new deadlines could conflict with part of an order last spring by the U.S. District Court for the Northern District of California (Climatewire, May 7). The court
had ordered EPA to act on existing state plans by Sept. 6 and to develop a federal plan for those without EPA-approved plans by Nov. 6. The order didn’t address when states would have to provide plans to the agency. EPA had just proposed a federal plan earlier
this month and has given the public until Oct. 7 to comment. In a motion filed today, EPA is asking the court to amend a previous order and eliminate the Nov. 6 federal plan deadline. Peter Zalzal, lead attorney on the Environmental Defense Fund’s domestic
climate and air legal team, said EPA may have enough time to finalize a federal plan to meet the November deadline, given the agency’s 45-day public comment period. ‘It’s good to see EPA is moving forward with a federal plan consistent with its obligations
under the court order,’ he said.” [E&E News,
8/26/19 (=)]
Chad Ellwood
Research Associate
202.448.2877 ext. 119