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http://www.reuters.com/article/idUSTRE6AG5VR20101117

U.S. can slash carbon emissions with natgas: report
Wed, Nov 17 2010
By Timothy Gardner

WASHINGTON (Reuters) – The shale gas boom could help the United States reduce greenhouse gas emissions even if Congress does not pass broad climate legislation, according to a Deutsche Bank report.

U.S. natural gas prices have fallen sharply over the last two years as supplies expanded due to the unexpectedly swift development of technologies to tap the fuel in shale formations a mile or more underground.

Lower natural gas costs have also already helped raise the proportion of U.S. electricity generated from the fuel to 23 percent from 20 percent two years ago.

As coal costs rise, the percentage for natural gas in power generation could rise to 35 percent by 2030, according to the Deutsche Bank report released on Wednesday.

The report assumes that environmental problems associated with hydraulic fracturing or “fracking” of shale gas are minimized as the technologies mature.

With Republicans taking control of the House of Representatives early next year, expectations that Congress will pass broad measures on renewable energy and climate are low.

But progress on emissions can still be made because natural gas releases about half as much of the greenhouse gas carbon dioxide as coal does.

“The role natural gas can play is so significant, it can form a type of a potentially bipartisan area of agreement,” on cutting emissions, Mark Fulton, Deutsche Bank’s global head of climate change investment research, told reporters in a teleconference.

The report said broader use of natural gas, and renewable energy like wind and solar power, could slash coal use. The efforts would cut emissions from power generation by 44 percent by 2030, it said.

Looming Environmental Protection Agency rules on mercury, particulates, and other emissions from coal-fired power plants could help reduce electricity generated from coal from about 47 percent now to about 22 percent by 2030, the report said.

That’s because scrubbers and other technologies that would have to be added to coal-fired power plants could push up the cost of power from that energy source.

A Bernstein Research note earlier this year also concluded that the EPA rules on air toxics would lead old coal plants into early retirements.

“The economics of this are compelling,” said Fulton. “This really is just pure economics, the industry will want to do this because it is cheaper.” The report assumed natural gas prices would average about $6 per mmBtu, about $2 higher than current prices.

Existing U.S. natural gas plants also have extra capacity. Two-thirds of the extra natural gas generation will come from existing plants near existing power lines, the report said.

Not everyone is happy about the gas boom. Environmentalists have complained that fracking, in which companies blast a mix of water, sand and chemicals underground to break open fissures in the shale rock, pollutes water supplies.

The report downplayed the risks and said with best practices, like recycling water used in the process, the environmental issues can be managed.

Canonsburg, PA – Following a vote today by the Pittsburgh City Council to deny private property and mineral owners their right to responsibly produce clean-burning natural gas resources within the city’s limit, Kathryn Klaber, president and executive director of the Marcellus Shale Coalition (MSC), issued this statement:

“Today’s city council vote delivered an expected, yet disappointing outcome. The vote represents a blow to the city’s weak financial standing, and at the same time is a straightforward attack on individual property rights. At a time when the natural gas industry is generating jobs and prosperity for tens of thousands of Pennsylvanians and economic development across the Commonwealth, it’s unfortunate that the council continues to maintain a shortsighted view regarding responsible shale gas development and its overwhelmingly positive economic, environmental and energy security benefits.”

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By Tom Ridge
November 12, 2010

It’s an honor to join my fellow Pennsylvanians in welcoming Gov.-elect Tom Corbett and his team to Harrisburg in this new capacity. While we have a new administration, many challenges await them as they embark on a new beginning for Pennsylvania state government.

These challenges bring with them great opportunity for our commonwealth, but it is essential that we get “it” right. Fortunately, Gov.-elect Corbett and his team begin their days of renewal with a state that is blessed with a talented workforce, an unrivaled work ethic, and a spirit of innovation and entrepreneurship that can make us leaders in the 21st century economy.

We also are blessed with abundant natural resources that when developed responsibly, will make us a global leader in the production of clean energy. My great affection for Penn’s Woods, the 12 million Pennsylvanians I was privileged to serve, and the need for domestic energy security has called me to action.

The Marcellus Shale represents a transformational opportunity for the commonwealth; one that will use our skilled workforce, reduce energy costs for consumers and enhance our economic and environmental well-being.

I stand ready to work with our governor-elect, the newly elected state officials and all of my fellow citizens to make sure we develop this resource the right way. With the campaign ads and election season now behind us, it is time to develop a plan for the future of Pennsylvania.

On Sept. 30, I joined with the leadership of the Marcellus Shale Coalition as we made a pledge to all Pennsylvanians when we released our “Guiding Principles: Our Commitment to the Community.” It is under these principles that the shale gas industry will operate and ultimately be judged in Pennsylvania.

Environmental protection, workplace safety, developing an engaged local workforce and involvement in our local communities are commitments that we have made together. The jobs that are being created are substantial; the tax revenues significant.

The progress on regulatory modernization for this industry in Pennsylvania is already moving us forward, and the benefits for all Pennsylvanians, including the development of new markets for clean natural gas, are very exciting.

In the coming months, we plan to expand upon our “Guiding Principles” one-by-one, highlighting innovations and best practices being employed by our members. We are already re-doubling our efforts to reach out to the leaders of Pennsylvania’s workforce: our farmers and landowners, conservationists, sportsmen and community leaders to learn about their concerns in the interest of improving the industry’s performance in every respect.

As the Marcellus Shale is developed, every issue needs to be addressed, and continuous improvement in every aspect is a daily goal. We are developing this clean energy resource for the benefit of our environment, communities and the nation. No corner can be cut, and our commitment to safety and the safeguarding of our air and water is an absolute priority.

When I was governor, we were successful in achieving many of our goals. I insisted as we moved forward that we take a long-term view and execute a comprehensive plan, always in an effort to make Pennsylvania a “leader among states and a competitor among nations.”

As the plan for the development of the Marcellus Shale continues to evolve, we stand ready to work with the new team in Harrisburg not just to get something done, but to get something done right. By working together, once again, Pennsylvania has the opportunity to grow and prosper by offering our very best for the benefit of our state and our nation.

Tom Ridge is the former governor of Pennsylvania and former U.S. secretary of Homeland Security. He has been hired as a strategic adviser to the Marcellus Shale Coalition (marcelluscoalition.org).

This op-ed originally ran in the Patriot News on November 12, 2010.

Shale Gas Industry Continues to Put America’s Vets to Work

Canonsburg, PA – With more than 1 million veterans in Pennsylvania, the Commonwealth, our families, and communities across the region understand full-well the sacrifice that our brave servicemembers make to preserve America’s freedoms. Through the responsible development of the Marcellus Shale’s clean-buring energy resources, the natural gas industry is helping to put local veterans to work, a commitment underscored in the Marcellus Shale Coalition’s (MSC) Guiding Principles.

“Today, we thank our veterans for their service and for keeping our homeland safe. Transitioning from the battlefield to civilian life can be challenging, especially during one of the deepest economic downturns in our nation’s history. Thankfully, as Marcellus development expands, job opportunities for our nation’s heroes do as well,” said Kathryn Klaber, president and executive director of the MSC, whose father served in the U.S. Navy. “Consistent with our Guiding Principles, our industry continues to ‘attract and retain a talented and engaged local workforce.’ Our region’s veterans represent some of America’s most dedicated and hard-working individuals, and it’s a privilege and an honor to have so many of them working throughout our industry.”

“We take pause today to thank our service members and their families. As a nation, we are indebted for their sacrifices and service. It is our solemn duty to never forget the courageous, honorable and selfless acts of America’s veterans and troops. Because of so many brave servicemen and women, America’s freedoms remain the envy of the world,” said Gov. Tom Ridge, an MSC strategic advisor who served as an infantry staff sergeant in Vietnam, where he earned the Bronze Star for Valor.

The following is a compilation of remarks from veterans working in the Marcellus Shale industry:

• “As a Veteran, native to Pennsylvania and Penn College Graduate, Anadarko Petroleum has given me the opportunity to work locally and maintain a strong sense of community and environmental stewardship.” — Mark Barbier, Environmental Representative, Anadarko Petroleum Corporation; U.S. Navy
• “I definitely believe that I’m still serving my country by working for Chesapeake and by working in the natural gas industry. We are helping to provide a clean, abundant energy source that is right here in our back yard – an alternative to foreign oil, and I’m proud to be a part of that. I feel like I am part of something big and something that is very important for our country’s future – so in my mind my service definitely didn’t end when I left the Army.” — Adam Beck, Field Engineer, Chesapeake Midstream Development, L.P.; U.S. Army
• “I am extremely proud to have served my country and to work for Atlas Energy. My military experience has served me well as it relates to the oil and gas industry in leading a team of dedicated men and women in one common goal.” — Michael W. Beckett, Director of Land, Atlas Energy; U.S. Army, 101^st Airborne Division
• “I really enjoy working with Range. The military teaches its members about teamwork, selfless dedication and every facet of the organization working toward the same goal. Our industry is no different. Plus, we have the added benefit of creating jobs in our communities. That makes me feel great about waking up every morning and being a part of what we do.” — Jim Cannon, Public Affairs Specialist, Range Resources; U.S. Marine Corps and U.S. Army
• “It has been terrific working here at Atlas for the past ten years. It gives me a sense of pride and peace of mind.” — Gerry Kirch, Measurement Process Superintendent, Atlas Energy; U.S. Air Force (retired)
• “I have been with Atlas since 2004, and started as a well tender and worked my way up.” — Kent D Lowry, Production Foreman, Atlas Energy; U.S. Army (retired)
• “I’ve been impressed with the emphasis on safety and integrity by the entire team here at Williams, from the Board of Directors and our CEO, all the way to the individual field techs. Their dedication to the communities, our families, and the environment remind me of the commitment I experienced in the Army. It’s reassuring to know one of our nation’s major energy sources is in the hands of people of integrity.” — Susan Oliver, Corporate Communications, Williams; U.S. Army (Retired)
• “As someone who has lived in western Pennsylvania most of my life, it has been a wonderful experience being part of this new frontier of natural gas. The people who live in this region tend to stay. Now they are beginning to see the benefits of the land they inherited from their grandparents who were aware of the value of oil and gas. Grammy and Pappy are smiling down at them now.” — Rob Webb, Land Agent, Atlas Energy; U.S. Army (retired)

READ MORE:

• “Marcellus Shale companies lean toward veterans and those with farming or forestry backgrounds who are used to hard work, [Linda Vanderpool, administrator of the CareerLink office in Williamsport] said.” (Patriot-News, 8/24/10)
• “Chesapeake hiring veterans for leadership: Chesapeake is luring former junior military officers to the company, rather than relying exclusively on university-educated petroleum engineers to fill those jobs. … The Oklahoma City-based oil and natural gas company has hired nearly three dozen veterans since the hiring program meant to groom Chesapeake’s future leaders began in June 2008.” (Seeking Alpha, 11/11/10)
• “Companies exploring for natural gas in Western Pennsylvania are interested in veterans, said Terri Campbell, vice president of operations for Private Industry Council of Westmoreland/Fayette Inc., which operates employment, education and training programs. ‘The companies involved in the Marcellus shale look very favorably at veterans because of their work ethic,’ and the fact they are accustomed to working long hours, Campbell said. Chesapeake Energy Corp. has an active military recruitment campaign, said Michael Lucas, recruiting supervisor.” (Pittsburgh Tribune-Review, 10/4/10)
• “It’s no wonder that some of the first Pennsylvanians who are actually getting jobs doing the actual drilling are workers used to grueling schedules—war veterans. One of them is Joshua Cannon, 30, of Bethel Park, Pennsylvania, who served three tours of duty in Iraq, the last two with the Army’s highly regarded 101st Airborne Division. He was discharged in 2008, just as the recession hit, and found nothing but heartache in his search for a salaried job to support his wife and two children.” (National Geographic, 10/14/10)
• “[Rick Woodbeck of Towanda] is a natural gas driller with Chesapeake Energy. A roughneck, as they are called. He drills into the Marcellus shale gas deposits miles below the surface of the earth. ‘I was in the Army National Guard and I came back from Iraq. Instead of going to sit behind a desk I decided to try something different and I had a friend who was on a rig. He told me about it and got me an interview. A couple weeks later I started out on a drilling rig,’ Woodbeck said.” (WNEP-TV, 5/19/10)

Canonsburg, PA – This week, Pittsburgh is playing host to the 2^nd annual Developing Unconventional Gas (DUG) East Conference & Exhibition. Attracting nearly 3,000 attendees, the event’s aim is to give “operators, investors, and the service industry the latest  economics, activity, and new technology needed to successfully develop the Marcellus” — the world’s second largest natural gas field.

“This week’s conference underscores the critical and growing role that responsible Marcellus Shale development will continue to play for our region’s economy. As the Commonwealth’s unemployment rate remains near 9 percent, events like this provide a much needed boost to Pittsburgh’s economy, small businesses, hotels and restaurants,” said Marcellus Shale Coalition (MSC) president Kathryn Klaber, a speaker and attendee at today’s session. “More than anything, though, it showcases that our region is a tremendous place to do business, invest and create jobs for Pennsylvanians.”

Commenting on yesterday’s demonstrations, Klaber remarked: “Regrettably, some who oppose job-creating, American energy development continue to inject inflammatory and offensive attacks toward the many individuals and companies who are delivering clean-burning natural gas to America; these disgraceful smears appeared to have reached a new low yesterday.”

“As laid out in the MSC’s Guiding Principles, ‘We encourage spirited public dialogue and fact-based education about responsible shale gas development’. We support a spirited public debate about the historic economic and energy security opportunity that the Marcellus presents. But let’s ensure that these conversations are grounded in science and facts, and not in hyperbole and personal attacks,” added Klaber.

NOTE: Yesterday’s protest, which drew 200 participants – far less than the anticipated 1,900 – was covered by several local news outlets:

• The protesters gathered at Allegheny Landing on the North Shore around 10:30 a.m., where organizers distributed pamphlets, banners and signs with slogans like“shut them down,” “gas holes stink” and“Ed Rendell will go to hell,” among others. … Some of 200 protesters attempted to hang a banner from a traffic light post that read, “Burn in Hell, Halliburton,” in reference to a corporation providing equipment and services to the drilling industry. Local police promptly removed it. (Pitt News, 11/4/10)

Canonsburg, PA – This week, the Pennsylvania Dept. of Environmental Protection (DEP) launched its “Oil and Gas Electronic Reporting website – a first-of-its-kind tool that provides the public with greater insight into oil and gas operations across the state,” with a focus on making “the activities of drilling companies and their business partners more transparent.” The site — www.marcellusreporting.state.pa.us/ogrereports — provides information on production reports, which are broken down by operator and county, as well as a host of other relevant reports and data points.

“Within seconds, anyone with the internet, an iPhone or a Blackberry now has access to critical, up-to-date information about job-creating Marcellus development in Pennsylvania,” said Kathryn Klaber, president and executive director of the Marcellus Shale Coalition (MSC). “The natural gas industry is focused on ensuring that our operations are world-class, and that as an industry, we remain true to our Guiding Principles. This new and much-needed level of transparency not only reinforces our commitment to the community, but it also gives Pennsylvanians a unique opportunity to understand the specifics of our operations.”

Additionally, DEP released air emission data from southwestern Pennsylvaniayesterday afternoon, which, according to DEP Sec. John Hanger, “shows no emission levels that would constitute a concern to the health of residents living near these operations.”

“Maintaining environmental quality – air, rivers and streams, drinking water – is a shared goal, and a paramount responsibility of ours,” said Klaber, also a member of PA’s Air Quality Technical Advisory Committee. “As Marcellus development continues to expand, and more Pennsylvanians realize the limitless economic and energy security benefits associated with this historic opportunity, our industry is determinedly working to put in place procedures and leverage cutting-edge technologies to help meet these critical environmental goals and objectives, particularly as it relates to air quality and all areas of our environmental management.”

Canonsburg, Pa. – A new Lycoming College poll released today finds that “public opinion is largely supportive of the development of Marcellus Shale” in central and northeastern Pennsylvania, a region that is experiencing significant natural gas activity and production. Kathryn Klaber, president and executive director of the Marcellus Shale Coalition (MSC), issued this statement following the release of the poll:

“These results are welcomed news, and affirm the fact that as responsible Marcellus development continues throughout the region, more jobs and more supplies of affordable, clean-burning, homegrown energy will continue to be realized. Pennsylvanians – particularly in communities where Marcellus production is underway – understand this too and this research bears that out.

“But while a clear majority of Pennsylvanians understand the historic economic, energy security and clean energy benefits associated with responsible Marcellus development, it is incumbent our industry to equip citizens with the facts about our industry’s work.

“We’re not only committed to ensuring that communities are well-informed and educated about these critical issues and the environmental safeguards that we are applying to every aspect of our operations, but we’re also working each day to attract and retain a talented local workforce.”

Key poll findings:

• When offered a list of possible benefits that might result from the development of Marcellus Shale in the region, respondents were most optimistic about its potential for the creation of many new jobs for the region; in total 78 percent felt the creation of many new jobs was very likely or somewhat likely to occur.
• Similarly, 71 percent felt that the natural gas industry would create needed economic development in the region.
• Sixty-one percent agreed that natural gas development would be very likely or somewhat likely to reduce our reliance on foreign sources of energy.

NOTE: The Lycoming College poll is available on-line HERE. Last week, the MSC formally unveiled a set of guiding principles — “Our Commitment to the Community” — by which Marcellus operators will conduct their work and ultimately be judged. Also, click HERE to view the MSC’s new web video, “The Marcellus: An American Renewal.”

Pittsburgh, Pa.– Today, the Marcellus Shale Coalition (MSC) leadership and Gov. Tom Ridge, an MSC strategic advisor, formally unveiled a sweeping set of principles by which the industry will live by “each and every day” and “embrace.” These principles were first rolled out last night at the MSC’s annual members meeting in Pittsburgh.

“We have an unprecedented opportunity with the Marcellus Shale – the second largest natural gas field in the entire world. Of course though, we need to be smart – and responsible – at every step of the way as this tremendous opportunity is realized. And we are, and will continue to be,” said Gov. Tom Ridge. “We will protect our environment while creating tens of thousands of family-sustaining jobs. We will continue to work to strengthen local communities and see to their needs while we work to create sustainable, long-term economic and energy security benefits for every Pennsylvanian. We will focus on developing new demand for natural gas while we improve our efforts to conserve energy. And our guiding principles reinforce this commitment.”

“The responsible development of the Marcellus Shale formation’s abundant, job-creating and clean-burning natural gas reserves represents a historic opportunity to strengthen the region’s economy and workforce, and holds the promise to dramatically bolster the nation’s energy security and put America on a path toward a cleaner energy economy,” said Kathryn Klaber, MSC president and executive direction. “The MSC’s ‘Commitment to the Community’ underscores the industry’s steadfastness to ensuring that this generational opportunity ‘is done right,’ so that the nearly 12 million Pennsylvanians, and beyond, realize its overwhelmingly benefits.”

“As a coalition it’s our responsibility to develop this resource the right way. Our core values include the safety of our employees, our landowners and the communities where we work, environmental stewardship, transparency, and a commitment to best practices. Most importantly, while this is complex technology, we need to keep things simple – we must, and are committed to doing things right,” said Ray N. Walker, Jr., senior vice president of Range Resources and chairman of the MSC. “Our ‘Commitment to the Community’ will help make certain that we will deliver on what is looking more like maybe the greatest economic opportunity this Commonwealth has seen in generations. We will continue to strive to set the standard for the rest of the world and ensure that not only will we create jobs, economic opportunities, and cleaner, cheaper energy, but the communities where we work will be far better off because of us. We have a great opportunity and with that comes an even greater responsibility.”

The MSC’s “Commitment to the Community” Guiding Principles are as follows and are available on-line HERE:

We, the members of the Marcellus Shale Coalition, embrace and operate by the following guiding principles:

• We provide the safest possible workplace for our employees, with our contractors, and in the communities in which we operate;
• We implement state-of-the-art environmental protection across our operations;
• We continuously improve our practices and seek transparency in our operations;
• We strive to attract and retain a talented and engaged local workforce;
• We are committed to being responsible members of the communities in which we work;
• We encourage spirited public dialogue and fact-based education about responsible shale gas development; and
• We conduct our business in a manner that will provide sustainable and broad-based economic and energy-security benefits for all.

We recognize that to succeed in business, we not only embrace these principles, we live by them each and every day. This will be our legacy.