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Daniel Dicker

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Time to Pass the Natural Gas Bill

Posted: 03/13/2012 8:30 pm

Have you had enough of paying $4 a gallon for gas? Do you wonder what you're going to do if gas prices go to $5 a gallon this summer? You're not alone.

Gas prices affect everyone, regardless of race, color or political party, yet Washington is stuck in neutral in finding the solution, which is staring them straight in the face: natural gas.
It's time for U.S. to take responsibility and force Washington to act. Today, the natural gas bill, which would add about $3.4 billion in incentives to kick start the movement to natural gas as a transport fuel is expected to be voted down as an addition to the highway funding bill, the last reasonable moment in this election year in which this bill it has even the slightest chance of passage.

Take matters into your own hands. Call your congressman and demand that this bill be passed for the sake of jobs, the economy and your wallet.

It is at least politically clear why this bill is such a difficult one to get approved. Republican fiscal conservatives are opposed to new federal spending and are sensitive to oil interests in their home states. They view this bill as anti-free market, an example of government looking to "pick winners."

Democrats are opposed to any measure that would encourage environmentally sensitive hydraulic fracturing for natural gas from shale. Between the two, despite being a virtual no-brainer, two iterations of the original "Pickens" bill have failed and so likely will this latest rewritten 'Natural gas act.'

Why should it? Natural gas is greener than oil, plentiful, domestic and cheap. As gas prices today rose over $3.83 as a national average, the equivalent cost of a "gallon" of natural gas is $1.60. Most analysts expect domestic prices for natural gas to stay relatively low for years, perhaps decades to come, while oil price is at the whim of every Middle East conflict, emerging market competition for resources and decreasing global production.

The oil and gas industry is ready for this. Last week's CERA conference -- the yearly global energy get-together of all the majors -- could have easily been renamed the natural gas conference. Apache CEO Steve Farris claimed that U.S. supply of natural gas isn't the claimed 100 years, it is more like 200 years.

Shell CEO Peter Voser spoke about investment in a new U.S. gas-to-liquids plant and the prospects of LNG exports. At one point, moderator and energy guru Daniel Yergin interrupted Voser to ask sarcastically: "You still produce oil too, don't you?" The industry also indicated universally that they are willing to submit to any transparency request that environmentalists or Washington suggest in order to continue the U.S. shale revolution.

The industry is on board, it's time for the people to get on board, too. Let's call this grassroots effort the "energy independence coalition." Or, how about the "energy sanity group." That's the only way to describe what we're doing -- or actually not doing -- with our plentiful national resource of natural gas. We're flaring -- actually burning off natural gas instead of using it to get at more expensive oil resources in the Bakken and elsewhere. That's not sane -- it's just nuts.

Call your congressman. Push for passage of this bill, for the sake of your wallet and our economic recovery.

 
 
 

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12:45 PM on 03/15/2012
Skimming through some of the comments, its really amazing how few people are in touch with the facts. The first two commentators are the most on point.
1) Natural Gas and Oil barely overlap in their uses in our economy, and the cost of re-tooling vehicles is itself prohibitive.
2) There is no way, even with optimistic measures of available gas, to meet both current needs and expand to cover current uses for oil
3) Russia, not the US, is by far the biggest extractor of natural gas.
4) The US is, and always will be a net importer of oil, unless we manage to utilization by at least 60%
5) The extraction of gas using hydrofracking may not be as visibly hideous as mountain-top removal, but by measures of lifetime ghg emissions, as pollution of ground water and air, no cleaner or safer.
10:21 PM on 03/14/2012
Your price for "natural gas equivalent to a gallon of gasoline" leaves out the state and federal gas taxes, about 60c per gallon, which pay for your roads. Also no accounting for the lower BTU rating of natural gas, which translates to lower miles per gallon. The price of natural gas today is unnaturally low due to a temporary market glut, not even close to paying the production costs. Expect natural gas prices to double in the next year or two, just to account for the cost to produce. Therefore your analysis is deceptive at best, disingenuous at worst. Moreover the long term supply of natural gas, whether from traditional or unconventional methods, has been hugely overstated.

The only realistic solution, as commentators from across the political spectrum have noted, is to greatly reduce consumption by large mandated increases in efficiency, and by transitioning to electric drives.
02:50 PM on 03/14/2012
So, BIG OIL is behind natural gas drilling but in truth the biggest voice are landowners, mainly farmers, to save their farms for future generations. Also, the workers and unemployed are thrilled to have an influx of jobs in communities they love. Fracking ingredients are disclosed all over the web (companies, states, universities). Not a secret so stop using untrue statements to protest. Gasland - debunked by the director himself when he admitted people lit their faucets for decades before drilling, but, "That is not relevant." (Fracknation). Really, a lie and misleading image is not relevant when you have used it on the news and hurt thousands of landowners with lies. Natural occurrences contaminate water every day, not fracking. Housing developments have contaminated and depleted the aquifers. You're fighting the wrong battle. Go after the bankrupt private vacation home developments in the Poconos that have failed sewage plants that are spewing contaminants into the streams of the countryside and no one is doing anything about them. One gated community was informed fixing theirs will cost $6,000,000. They don't have the money. Let's build windmills. 250 industrial wind mills equal the energy produced by one gas well. Let's just cut down all the trees on our mountaintops and install them and the mega-powerlines needed. But, be sure not to put those big powerlines or windmills in your back yard.
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02:43 PM on 03/14/2012
"We're flaring -- actually burning off natural gas instead of using it to get at more expensive oil resources in the Bakken and elsewhere."

The US has perhaps the best (i.e. least common) flaring record in the world. Nigeria and Russia should take lessons from the United States on how to properly use natural gas.

While there is some flaring in the Bakken, it's being reduced and huge investments are being made to capture this gas and bring it to market. (The current "no more pipeline" hysteria from the green movement doesn't exactly help here).

Let's be clear here - flaring is a seperate deal than natural gas vehicles. Don't confuse the issue, and don't pick the wrong villian. The US is the number producer of natural gas in the world, and we have the best system for using this resource in the world. We have a "low flaring" record that deserves praise, not misplaced criticism.
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emmanuel kalu
information is knowledge, knowledge in power
12:55 PM on 03/14/2012
regardless of what anyone things about natural gas. it is a great proven alternative to oil right now. one that we could even implement immediately and reduce the price our oil or our need to import or use it. auto industry are already producing cars and trucks that use this natural gas, but they are only selling it to fleet that have their own fueling ability. lets create a jobs by building out our infrastructure for natural gas fueling to private users. lets encourage more fleet to switch to natural gas. our transportation fleet is 3 million vehicle, yet they use over 20% of the oil imported. if we can cut that down to 10-15%, it would make a huge dent in reducing our demand and help create jobs.
why are we still fighting to build pipeline, when we can just focus on getting natural gas safer. even if we are paying 4 buck a gallon of natural gas, that would be going to americans not some other country. it would create america jobs and grow our economy. This can be done, because we have the resources to do it. right now, people can convert their cars to natural gas, auto industry is making natural gas truck. how about we start with converting the fleets to natural gas.
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Ed Baker
All Hail Big Mother
12:22 PM on 03/14/2012
Politicians who don't support the switch are most likely on the payroll of the Saudis.
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yeah-isaidit
Does not fear the funk
11:32 AM on 03/14/2012
Oil is the number 1 export in the U.S. Fracking contaminates groundwater. Republicans in D.C. have been giving the finger to all Americans by blocking a bill for needed repairs and improvements to infrastructure in their continuing efforts to subvert the President. And as far as the "Free Market" goes - pfffft - there is nothing "free market" about a subsidized (and obscenely profitable) oil/gas/gasoline industry. No thanks.
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DC Liberal
The Republican Party - Brought to you by Fox News
03:14 PM on 03/14/2012
Oil is not the number 1 export in the US, as we do not export oil. We import about 10.4 millions barrels per day. We export refined petroleum products, but still consume far more oil than we produce domestically.
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yeah-isaidit
Does not fear the funk
07:12 AM on 03/15/2012
meant to say fuel
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HUFFPOST PUNDIT
den1953
The National Inquire of Politics the GOP!
11:28 AM on 03/14/2012
The lessor of two evils but natural gas could power large trucks and fleet trucks such as UPS and FEDEX ect. can you imagine how much foreign oil this country could save until all automobiles could be converted over, then again the oil companies have to be on board!
10:39 AM on 03/14/2012
Using natural gas for transportation makes a lot of sense. Why do those who will benefit need a subsidy?
09:42 PM on 04/28/2012
Shareholders.
09:50 AM on 03/14/2012
The energy tycoons are drooling eager to trash our limited and dwindling underground fresh water resources with their fracking, in order to turn the quick buck off the natural gas in their lifetime. If we spend any federal money on energy, it should be to accelerate non-fossil, non-nuclear, renewable energy technology development.
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mhh310351
Roosevelt Democrat
02:02 PM on 03/14/2012
What's the difference in IQ of Climate Change Deniers & Anti-Frackers - nothing!

Both equally scientifically challenged!
rixter1965
I'll respect your beliefs, but at least be consist
09:19 AM on 03/14/2012
How about the United States stop exporting gasoline?!? If China can keep rare earth minerals citing a domestic need, then the United States should do likewise. We remain one of the largest gasoline EXPORTING nations on the planet!!!
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Ed Baker
All Hail Big Mother
12:23 PM on 03/14/2012
The only reason we're exporting gasoline is because we have more refinery capacity than other areas. We are not a net exporter of oil or oil products. We import oil, refine it into gasoline and export the gasoline.
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HUFFPOST SUPER USER
mhh310351
Roosevelt Democrat
02:04 PM on 03/14/2012
knowledgeable reply!
03:17 AM on 03/14/2012
“Natural gas is greener than oil...”

In my state there have been several cases of fracking causing water pollution. You can’t drink the water, your animals can’t drink the water and nobody wants to eat anything grown in the area for fear the plants have absorbed the toxic chemicals. Without clean water the area becomes a dead zone.

I propose a challenge, I’ll live without natural gas and those who want to keep on fracking must live without drinking water, drinking anything that contains water, drinking or eating anything that is processed with water or anything that needs water to live or grow. Get back to me in a couple of months and let me know how that’s working out for you.

As far as handing $3.4 billion over to the gas industry, I’ll pass. There are better ways to spend taxpayer money than giving the gas industry a $3.4 billion welfare check.
09:55 AM on 03/14/2012
The truth is, we are not shutting down 100 coal fired plants, many of these plants are being upgraded with natural gas turbines.

So to live without natural gas MAY require you to get off the grid, no electric for much of the day. And no electric means no water for most of us, most wells require electrical pumps and municipal water absolutely require a stable source of electric.

And no buying bottled water, that would be cheating.
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Ed Baker
All Hail Big Mother
12:25 PM on 03/14/2012
Oil drilling causes water pollution too. The chemicals used in "fracking" are also used in oil drilling.

Oil products cause a lot of pollution when they are refined as well. Natural gas needs very little processing.

The additives in gasoline also cause water pollution.

The purchase of oil funds terrorism and the Saudis.
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99think99
You don't know what you don't know!
01:51 AM on 03/14/2012
Fracking has destroyed whole communities and been devastating to anyone who live near a fracking sites.
http://www.gaslandthemovie.com/
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mhh310351
Roosevelt Democrat
02:48 PM on 03/14/2012
It's frightening what you don't know.
Just in general.
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parlimentMike
Terrorists keep you in fear
01:05 AM on 03/14/2012
Taxpayer cost was estimated to be around $100 Billion by WSJ.

We'd need to convert the fleet and fueling stations. If we have to do that anyway, why do it for a fossil fuel instead of something greener. Nows the time to move to the future, not just to the 1960's.

We wouldn't want to encourage fracking.

This is really a test to see if a guy can run an advertising campaign one year, citing altruistic reasons, and get Congress to vote him billions the next.
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Ed Baker
All Hail Big Mother
12:28 PM on 03/14/2012
What would you convert semis too that is not fossil fuel? There isn't enough farmland in North America to produce enough biodiesel.

$100 billion is peanuts. Put up the fueling stations and the operators will convert their vehicles themselves.

My home in Michigan is on a Native American reservation. We converted all of the tribal vehicles to CNG - we recouped the cost of the conversion in just 4 months.

CNG costs 88 cents a gallon.
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parlimentMike
Terrorists keep you in fear
12:42 PM on 03/14/2012
Hydrogen is another burnable gas, but no carbon footprint.
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HUFFPOST PUNDIT
Quasi Libertarian
Only Team America: World Police Can Save Us!
02:24 PM on 03/14/2012
F@F...Nice to see a pragmatic POV
12:19 AM on 03/14/2012
until the gas companies are forced to tell congress and the rest of us what exactly they are injecting into the earth to extract the gas no one should be voting to allow them to do so. they will kill us all for a buck and anyone with a brain knows it
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Ed Baker
All Hail Big Mother
12:29 PM on 03/14/2012
Already been done - try to keep up.
04:28 PM on 03/14/2012
from wikipedia

“of the 750 compounds in hydraulic fracturing products “[m]ore than 650 of these products contained chemicals that are known or possible human carcinogens, ..., or listed as hazardous air pollutants” (12). The report also shows that between 2005 and 2009 279 products (93.6 million gallons-not including water) had at least one component listed as “proprietary” or “trade secret” on their Occupational Safety and Health Administration (OSHA) required Material Safety Data Sheet (MSDS).”

“Another 2011 study identified 632 chemicals used in natural gas operations. Only 353 of these are well-described in the scientific literature; ... more than 75% could affect skin, eyes, respiratory and gastrointestinal systems; roughly 40-50% could affect the brain and nervous, immune and cardiovascular systems and the kidneys; 37% could affect the endocrine system; and 25% were carcinogens and mutagens. The study indicated possible long-term health effects that might not appear immediately... it also recommended that fracking's exemption from regulation under the US Safe Drinking Water Act be rescinded.[63]”

“In 2012, Barack Obama stated his intention to force fracking companies to disclose the chemicals they use,[66] though the subsequent, proposed guidelines were criticised for failing to specify how drillers will disclose the chemicals they use.[67]”

perhaps these stats make you want to frak your brains out out but it doesn't appear that anything's "been done" already except pulling wool and blowing smoke. hope you don't live near a gas field. i'm glad i don't.
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emmanuel kalu
information is knowledge, knowledge in power
01:01 PM on 03/14/2012
EPA has set a regulation for them to release the chemicals used. What is stopping them from changing the frackling is that the alternative is much more expensive. if they get the regulation and the investment, they would be able to change it. moreover we can still get our natural gas from other sources that are not close to drinking water and still have enough to make a huge change.