PennEast Nov. 12 Week In Review

November 12, 2016

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A Recap of PennEast and Important Natural Gas News

This week’s major news stories stemmed from the results of Tuesday’s election. Much has already been written about the potential energy and environmental implications. And on election night, API conducted a voter poll to gauge sentiments surrounding energy. Among the results, 81 percent of those polled support increased development of the country’s energy infrastructure, and 77 percent support natural gas’ role in reducing greenhouse gases.

Meanwhile, the U.S. Energy Information Administration (EIA) released an update to their Short Term Energy Outlook. In their Outlook, the Administration:

  • Forecasts 2017 natural gas production to increase by an average of 2.9 Bcf/d from the 2016 level.
  • Projects the Henry Hub natural gas spot price rising from an average of $2.50/million British thermal units (MMBtu) in 2016 to $3.12/MMBtu in 2017
  • Expects the share of U.S. total utility-scale electricity generation from natural gas will average 34% for 2016.

While regional pipeline constraints persist, EIA affirms natural gas supplies are ready for winter. “Working natural gas in storage in the Lower 48 states as of October 31, the traditional end of the refill season, reached a record level of 3,986 billion cubic feet (Bcf)… This is 183 Bcf (5%) higher than the five-year (2011–15) end-of-October average, and exceeds the previous end-of-October high of 3,929 set last in 2012.” Thus, supplies are abundant, but without additional capacity like PennEast, regional electric and natural gas users remain susceptible to price spikes.

An editorial, “Oil, Gas Important in Ways Other Than Use as Fuels,” by the president and chief executive officer of Eagle Manufacturing Company, Joe Eddy, discusses the role of natural gas beyond heating and powering our homes. Eddy explains, “More than 6,000 common products contain refined oil and natural gas. These include shoes, clothing, electronics, toys, pharmaceuticals, cosmetics and many other items the majority of us consider essential for modern life.”

Another editorial, “U.S. carbon emissions down to ’91 levels,” looked at the air quality contributions of natural gas’ growing role in the power sector. “While the 2007-09 recession and anemic economic growth since have been a factor in reduced emissions, the primary reason for the decline is a newly abundant supply of cheap natural gas… As a result, electrical power plants have been shifting from coal to natural gas, which produces the same amount of energy with about half of the carbon emissions,” writes Merrill Matthews of the Institute for Policy Innovation.

And on Friday, November 11, PennEast joined the country in thanking the 18.8 million veterans who have sacrificed and served our country to protect our freedom. PennEast especially thanks all the women and men from the communities we’ve been working with for the past two years for their service, including those recognized at the Palmerton Veterans Memorial.

Read these and other stories below:

EIA: Natural gas ends “refill season” at record high level
Working natural gas in storage in the Lower 48 states as of October 31, the traditional end of the refill season, reached a record level of 3,986 billion cubic feet (Bcf), as interpolated from EIA’s Weekly Natural Gas Storage Report data released today.

Have You Heard? Compressor Stations Are Quieter Than People Talking
Inside a compressor station, it is noisy; however, compliance with FERC’s strict regulations regarding sound is a must.

PennEast: Delivering the Energy to Fuel a Downstream Economy
Tuesday’s discussion focused on developing “downstream markets.” Meaning, how do projects like PennEast – slated to deliver 1 billion cubic feet per day of low-cost natural gas – help attract new manufacturers, spur cleaner and more efficient electric generation, enable more families to convert to natural gas, and even grow the use of natural gas as a transportation fuel.

American Voters Have Spoken, Energy Won The 2016 Election
WASHINGTON, November 10, 2016 – API President and CEO Jack Gerard said American voters of all political stripes agreed that the country needs strong energy leadership to create jobs, lower fuel costs for consumers, enhance our energy security, and lower emissions.

Pre-election report says any fracking ban would hurt jobs (State Impact)
Any federal ban on fracking for oil and natural gas would cause fuel prices to surge, leading to job losses, higher electricity and gasoline costs and an increased cost of living, especially in top gas-producing states like Pennsylvania, the U.S. Chamber of Commerce said in a report.

Shale gas important for Pa. future (Allentown Morning Call)
We’re producing a lot of shale gas in Pennsylvania. That’s been great for workers and local communities… However, consumers could benefit even more if there was support for more energy infrastructure projects across the commonwealth.

Commentary: U.S. carbon emissions down to ’91 levels (Philly.com)
The U.S. Energy Information Administration recently announced that energy-related carbon emissions for the first six months of this year are down to their lowest level since 1991 – when there were about 60 million fewer Americans using energy.

Oil, Gas Important in Ways Other Than Use as Fuels (The Wheeling Intelligencer)
The development of the Marcellus and Utica shale has put the tri-state region and the Appalachian basin in an enviable position. This region is now one of the world’s largest producing basins, which has helped make the United States the leading producer of oil and natural gas in the world.