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Young Minds Bring New Energy to Industry


At ANGA, we feel privileged to work with some of the brightest individuals in the energy business. And this week Forbes Magazine chose one of our own, Taylor Shinn of Chesapeake Energy, for its list of "30 Under 30 to Watch in Energy." In doing so, Forbes told its readers what those of us who have worked with Taylor already know, that he gets things done. Taylor, 27, is someone who we can truly say is moving the needle forward in terms of appreciation for the many benefits that America's natural gas abundance offers.

Taylor is Chesapeake's Senior Director of Corporate Development and Government Relations, and focuses his work on developing new markets for natural gas and developing relationships for strong national partnerships and support.  Taylor has tirelessly advocated for natural gas because he shares our vision of cleaner air and a smarter energy future for our nation.  He also works extremely hard educating local citizens and public officials about the importance of natural gas to our local and national economies.

Taylor joins an impressive group of individuals ranging in age from 16-year-old Jonny Cohen, who invented an aerodynamic air shield for school buses that reduces fuel use by 25 percent, to Danielle Fong, the 24-year-old who co-founded Lightsail Energy, which produces a compressed air-storage technology that is scalable, portable, clean and economical.

As you review each individual's profile, you'll notice a common theme.  These young innovators are setting out to improve our energy future. They see clean air, low emissions and smart, affordable energy. Taylor epitomizes what this group is all about and he is among an impressive generation of leaders in our industry who see the future of natural gas as going hand in hand with our nation's own clean energy goals.

Thank you, Taylor, and congratulations!

White House Recognizes Natural Gas as Economic Engine


It's a real motivator in our push toward a clean energy future when others recognize the benefits of natural gas and endorse the opportunities it provides.  And there may be no greater endorsement in this country than when it comes directly from the White House.

To that end, the Obama administration released a 16-page report, "Investing in America: Building an Economy That Lasts," on how this nation can build an economy "that lasts." And in doing so the White House makes a stirring endorsement of natural gas.

"The surge in domestic natural gas production can lower energy costs, reduce pollution and drive investment in the industries that supply equipment to the natural gas sector and those that use natural gas as an input to production," the report says.

The administration has seized on the discovery of new natural gas resources and the development of hydraulic fracturing techniques since the last decade as factors that have "led to rapidly growing domestic production and relatively low domestic prices for households and downstream industrial users."

And the White House sees the environmental benefits as well, labeling natural gas as "the cleanest and least carbon-intensive for electric power generation."

The natural gas community shares the Obama administration's stated desire to ensure that natural gas continues to be produced in a safe and responsible way. That is a central commitment of our companies. Thanks to the many benefits of responsible natural gas production, our nation does not have to choose between economic growth and environmental stewardship.

We "must make investments that will equip our workers to compete effectively in the global economy, today and tomorrow," the report says. And indeed it is true that the kind of recovery the White House is talking about can start with natural gas.

Study sums up the extraordinary performance – and potential – of U.S. shale gas


The following is a re-posting of a blog written by Ken Cohen, vice president of public and government affairs for Exxon Mobil Corporation.  The original post can be found on his Perspectives blog (http://www.exxonmobilperspectives.com/) here.  You can also follow Ken on Twitter @KenPCohen.

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  • $76 billion share of U.S. GDP.
  • $33 billion in capital investments made.
  • $18.6 billion in federal, state and local government tax and federal royalty revenues.
  • 600,000 jobs supported.

And that was just in 2010.

These impressive stats sum up the economic contributions of U.S. shale gas production in 2010, according to a recent study from IHS Global Insight.

Shale-Gas-Employment-Contribution-2035-419x409

 

But even better outcomes are yet to come, the study's findings show.

The U.S. shale gas industry will continue to be a major generator of jobs, government revenue and economic stimulus for decades as production continues to increase. Researchers estimated that nearly $2 trillion in capital investments will flow into the U.S. shale gas industry between 2010 and 2035.

The benefits of such massive investment will spread throughout communities, businesses, and governments around the country. The study examined recent increases in shale gas production and modeled the growth trend into the future, finding that shale gas will grow from 27 percent of U.S. natural gas production in 2010 to 60 percent in 2035. As a result:

  • The jobs supported by the shale gas industry are expected to more than double by 2035, from 600,000 in 2010 to1.6 million by 2035.
  • The annual government tax revenues will more than triple, from $18.6 billion in 2010 to $57 billion in 2035.
  • In total, the shale industry will generate more than $933 billion in federal, state and local government tax and federal royalty revenues over the next 25 years.
  • The value added to the U.S. GDP will nearly triple, from more than $76 billion in 2010 to $231 billion in 2035.

Those are a lot of large numbers that can be hard to fully grasp. A few comparisons may help:

  • The $2 trillion in shale gas capital expenditures to be invested by 2035 is an amount that would reduce the current U.S. national debt by about 13 percent.
  • The $933 billion in tax and royalty revenues from shale gas activity expected over the next 25 years is an amount that would come to close to paying for the 2011 Social Security and Medicaid budgets combined.
  • The $231 billion in value added to the U.S. GDP by the shale gas industry in 2035 is an amount that's higher than the GDP of the majority of the world's countries in 2010, including Ireland, New Zealand and Denmark, just to name a few.

The U.S. shale gas industry is already a sizable contributor to the U.S. economy, and as these numbers show, the industry's contributions will only continue to grow. But this growth is not pre-determined - and, in fact, can be undermined if counterproductive policies and regulations are enacted by policymakers at the federal and state levels. Government policies that promote access to U.S. energy supplies and increased investment are necessary for the industry to continue its pattern of growth - as are the industry's actions to maintain safe operations throughout the country.

With a focus on effective policy and responsible operations, the shale gas industry can play a major role in U.S. economic recovery and growth.

Head Home for the Holidays in an NGV


With the holiday season under way, Americans across the country are hitting the roads to visit family and friends. What's at the top of some travelers' wish lists? $2.00 per gallon equivalent natural gas. By converting to natural gas vehicles, communities and businesses across the country are saving money and reducing emissions thanks to clean and abundant natural gas.  Unsure where to fill up your nat gas vehicle? With over 1000 NGV fueling stations located across the country, it's becoming more convenient each day for American consumers and businesses to make the switch.

Spreading good NGV tidings, Apache Corporation, an ANGA member company, is giving back to its local community this holiday season. Apache has donated two new compressed natural gas (CNG) paratransit vehicles to Tulsa Transit's Lift Program. Apache gifted the Metropolitan Tulsa Transit Authority with the new CNG buses to help the door-to-door program for the area's disabled residents.

Apache Tulsa Transit pic

 

The transition to CNG is not new for Tulsa Transit - in 2009, the agency received two grants to convert vehicles. Currently, the system operates 15 CNG buses and recently built its first CNG-fueling station at its headquarters. Tulsa Mayor Dewey Bartlett recognizes the role that natural gas plays for the community. "We as a community are leading by example. First, it's the right thing to do, environmentally. And, second, they are cheaper to operate."

Here are some other NGV stories to round out 2011:

- In 2012, Long Beach Transit in California is planning to replace 64 diesel buses to run on CNG. The North Long Beach Transit facility will be converted into a fully operational CNG facility.

- Last week, Muskegon Area Transit System (MATS) introduced three new heavy-duty CNG buses in the Great Lakes State. MATS has been providing cleaner transportation for Michigan residents for close to 10 years. Jim Koens, transit manager for MATS, is excited about the new buses since "compressed natural gas burns cleanly, is produced domestically, and is more cost-effective than diesel fuel at this time."

- An Arizona Beer Distribution company, The Golden Eagle, introduced its new fleet of CNG delivery vehicles. Last week in Tucson, the company launched 18 CNG powered trucks to begin delivery routes with six more vehicles to be added by the end of December. Golden Eagle plans to incorporate CNG vehicles throughout its fleet across Arizona with the help of Ryder System Inc.

- Wyoming Governor Matt Mead is hoping the University of Wyoming will be able to soon convert vehicles to run on natural gas. Mead has proposed a budget that would allow for the University to convert vehicles and build a CNG-fueling station on the campus.

Is your community or business planning to convert vehicles to natural gas in 2012? Share your story with us at info@anga.us. Happy Holidays!

San Antonio: Ensuring the Shale Gas Boom Makes the City Bloom


Last week I participated on a panel discussion about development of the Eagle Ford shale sponsored by KLRN, San Antonio¹s local PBS affiliate, and the San Antonio Clean Energy Coalition. The 70-minute discussion provided us, the eight member panel, with the opportunity to discuss the critical role the business, civic and technology community in the San Antonio region can play in establishing the Eagle Ford shale play as a national model of sustainable development.  Mayor Julián Castro's opening remarks titled, "San Antonio: Positioning to become the new Energy Hub of Texas," were right on target. The development of the Eagle Ford shale in South Texas represents the biggest opportunity Texas has had so far this century to completely transform one of its major cities into a hub of innovation, education and technology development.

The Eagle Ford shale already has brought 5,000 jobs to San Antonio, and continued oil and gas development will likely bring a total of 10,000 more jobs to the city within the next three years. The creation of well-paying jobs in economically depressed areas of South Texas is particularly heartening in these difficult times. However, ensuring that this great opportunity is managed properly by both business and civic communities is of critical importance.

Throughout our panel discussion we exchanged thoughts as to how San Antonio can manage and lead this remarkable development in a responsible and sustainable manner. Leodoro Martinez, executive director of the Middle Rio Grande Development Council, emphasized the growing importance of groups like the Eagle Ford Shale Workforce Consortium, as well as local community colleges in improving educational and training opportunities and ensuring that the appropriate investments are made to ensure that local communities and small businesses benefit from this shale boom.

Drew Nelson, clean energy project manager at the Environmental Defense Fund, emphasized his organization's concern with drilling's environmental impact, as well as the impact of heavy truck traffic on local infrastructure. NuStar Energy CEO Curt Anastasio offered up a solution to Nelson's concerns reassuring him that more pipelines are being built in the area by his company and others to help reduce truck traffic and air emissions from trucks.

The Eagle Ford promises to transform San Antonio in the same way that Spindle Top did Houston. As San Antonio moves forward in taking advantage of this "once in a century" moment, it is important that vested stakeholders across San Antonio's civic and business communities work together to make the most of this important opportunity.

Highlights of the discussion will be edited into an hour-long production that will air on all Texas PBS affiliate stations on January 12.

Check your local listings for time.

David Blackmon is Sr. Advisor for Government and External Affairs at El Paso Exploration & Production

A Shale Gas “Renaissance” for U.S. Manufacturing


One million jobs will be created in the manufacturing sector by 2025 thanks to lower energy costs associated with shale gas development. That's the finding of a National Association of Manufacturers (NAM) study issued this week, "Shale Gas: A Renaissance in US Manufacturing?"

NAM's predicted job growth is in addition to the 1 million jobs tied to natural gas production in shale communities that will be added by 2035 in the United States, according to a recent IHS Global Insight study.

The study highlights the economic benefits of shale gas development to the manufacturing sector.  In it, NAM notes that the shale revolution has re-oriented America's position in the world, and that America now has the potential to be a major energy and manufacturing exporter again.  Thanks to our newfound abundance of shale gas, manufacturers are making new investments and expanding in ways that were thought impossible only a few short years ago.

In 2011, 17 manufacturers reported higher demand because of shale gas development, up from zero in 2008.  Lower feedstock and energy costs could reduce natural gas expenses for manufacturers by as much as $11.6 billion annually through 2025, and that will raise demand and lower prices for goods produced by manufacturers.

Many U.S. industries have already started to take advantage of clean, affordable shale gas.  U.S. Steel has invested $95 million in an Ohio steel plant, creating hundreds of jobs, to meet the increased demand from shale gas extraction activities.  Formosa Plastics plans to spend $1.5 billion on an ethylene plant and downstream assets in Texas due to increased shale supply.

These are just two of the many examples of manufacturers making new investments, hiring workers and taking advantage of shale gas that will power America into the 21st century.  We applaud NAM for this study and we raise it as another example of how our nation's vast natural gas supply can fuel a jobs revolution in this country.

What We’re Reading: Yergin Touts “America’s New Energy Security” in the WSJ


On Monday, Daniel Yergin, chairman of IHS CERA and author of "The Quest: Energy, Security, and the Remaking of the Modern World," published an editorial on American energy security in the Wall Street Journal.

The Pulitzer Prize winning Yergin, who has been dubbed "America's most influential energy pundit" by the New York Times, says that "rising tensions" with our global energy suppliers have "raised the stakes" for the development of America's own oil and gas resources. The good news? Thanks to newfound discoveries of shale gas, and technology to safely and affordably access it, we can avoid upwards of $100 billion a year in gas imports, reinvesting that money into American energy production and American jobs. For the full article, click here.

Alamo City Saves Green and Drives Clean


Last week, San Antonio's Clean Technology Forum hosted a conference to discuss the opportunities for the region from development of the Eagle Ford Shale.  The forum focused heavily on the energy supply and economic benefits that the Eagle Ford Shale can provide for Texas, and how the resources from Eagle Ford can be used to expand the natural gas vehicle (NGV) fleet and overall infrastructure in San Antonio.

CPS2

As the city of San Antonio has grown and expanded, so have its air emissions. It is now very close to joining its sister cities of Houston and Dallas/Fort Worth in reaching "non-attainment" status - in other words, the city's air emissions do not meet federal standards set by the Clean Air Act.  Fortunately, the same home-grown energy source that boosts Texas' economy is also the same fuel that can help reduce its air pollution.  While each major city is making its own progress toward building out natural gas vehicle infrastructure, there's also a major initiative underway to ensure cleaner air in the whole Texas Mega-region.

The Texas Clean Transportation Triangle (TCTT) is a strategic effort to create a sustainable network of natural gas refueling stations along the Texas Triangle (Austin, Dallas, Fort Worth, Houston and San Antonio). At least 10 percent of the U.S. transportation sector travels through the Triangle each year, laying a foundation for wider-scale deployment of NGVs in the Texas market and making the transition to a lower cost, domestically-produced, and cleaner fuel a more viable option for Texas businesses, cities and consumers. The emissions benefits that will result from the implementation of the TCTT is the equivalent of taking more than 175,000 cars off of Texas highways in the state's most populated areas.

In terms of NGV strides from individual cities, San Antonio is leading the way in Texas.  The City of San Antonio's Solid Waste Management Department operates the largest CNG-powered fleet of refuse trucks in Texas. This statistic alone emphasizes the importance of the role the business, civic and technology communities play in establishing a national model of sustainable development of valuable resources such as the Eagle Ford Shale. Converting one waste truck to natural gas is the pollution equivalent of removing 325 cars from the streets.

Additionally, Rio San Antonio Cruises' 42 tour, taxi and maintenance riverboats are powered by CNG and  San Antonio's VIA Metropolitan Transit was recently awarded $3 million under the Federal Transportation Administration's Clean Fuels Program to purchase three 60-foot buses that also will run on CNG.

We applaud the City of San Antonio for taking advantage of this clean, home-grown, and abundant resource.  The development of natural gas from the Eagle Ford shale provide jobs and boosts the local economy and its use in power generation and transportation can help clean our air.  We hope other cities will look to Texas as a model.

IHS Study Forecasts “Profound Economic Impacts” Thanks to U.S. Shale Gas


Today, IHS Global Insight released its report, "Economic and Employment Contributions of Shale Gas in the United States." The study highlights the significant benefits shale gas production has brought and will continue to bring to the U.S. economy in the form of lower energy prices, jobs and tax revenue. The IHS report is the most definitive study to date tracking the long-term economic impact of U.S. shale gas production.

At a time when jobs are top-of-mind for many Americans, this study confirms that abundant, domestic shale gas is an economic and employment engine for the United States. And, our commitment to safe and responsible development ensures communities don't have to choose between their economic well-being and protection of the environment.  Natural gas allows us to advance both priorities.

10 Key Findings:

  1. In 2010, shale gas supported 600,000 American jobs. By 2015 this number will grow to nearly 870,000. By 2035, the figure will top 1.6 million.
  2. Shale gas will generate more than $940 billion in federal, state, and local tax and royalty revenues over the next 25 years.
  3. Thanks to lower gas prices, U.S. households will save an average of $926 per year in disposable income between 2012 and 2015. By 2035, these savings will increase to more than $2,000 per household.
  4. Lower natural gas prices thanks to shale gas production will result in an average 10 percent reduction in electricity costs nationally, over the period to 2035.
  5. By 2017, lower natural gas prices will boost industrial production in major industries like U.S. steel by 2.9 percent.  By 2035, industrial production jumps by 4.7 percent, as affordable domestic natural gas makes it easier for many companies to create jobs and produce goods here in the U.S.
  6. Nearly $1.9 trillion in shale gas capital investments into our economy are expected by 2035.
  7. Shale gas production contributed more than $76 billion to the U.S. GDP in 2010. By 2015 this will increase to $118 billion and by 2035, the GDP contribution will triple in value to $231 billion.
  8. In 2011, shale gas production grew to 34 percent of all U.S. natural gas production. By 2035 shale production is expected to nearly double, reaching 60 percent of all U.S. natural gas production.
  9. In 2011, the full-cycle cost of shale gas wells was 40 percent to 50 percent lower than the cost of natural gas from conventional wells.
  10. The high quality of jobs created through shale gas is reflected in higher-than-average wages.  Spread across 30 shale gas-producing states, the average hourly wage for the shale gas sector is $23.16. Pay for non-shale related production, professional and business-services workers ranges from $13.10 to a high of $22.00 per hour.

In New York, Pataki speaks out for natural gas and its benefits


The state of New York can no longer ignore the opportunities its shale resources present. That's the position of former New York Governor George Pataki in his op-ed on hydraulic fracturing in the New York Daily News.

Pataki, who served the state for three consecutive terms, urges New York to lift the moratorium on drilling for the abundant natural gas reserves trapped in the Marcellus Shale. Citing an April 2011 state jobs report, which estimates that 259,400 upstate residents are unemployed, he writes, "Fracking can bring good jobs to New York without harming the environment."

The governor is right; natural gas development in New York could substantially impact their current unemployment crisis and help rebuild the state's economy. The Manhattan Institute has said that New York could generate $11.4 billion from 2011 to 2020 by lifting its moratorium on hydraulic fracturing which could mean 15,000 to 18,000 jobs.

Pataki calls the benefits of New York's natural gas reserves "enormous," even "transformational." And he emphasizes the need for safe and responsible development.

"Minimizing impacts to local communities and the proper handling of wastewater from the process are two of the issues that must be addressed," Pataki writes. "Through the deployment of advanced technology and appropriate regulatory oversight by the state, I'm confident these and other environmental challenges can be met."

"We must avoid being swayed by opinionated voices that seek to politicize this issue," Pataki writes. "By applying rigorous analysis and sound science, we can protect our state's environment - and develop a better future for all New Yorkers."

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