Listen Now: Morning News

Drill, Pump, Ship: Europe Needs the Gas

President Biden announced before he left Poland a plan to significantly increase shipments of liquefied natural gas (LNG) to Europe to help those countries reduce their reliance on Russia for energy.

“I know that eliminating Russian gas will have costs for Europe, but it’s not only the right thing to do from a moral standpoint, it’s going to put us on a much stronger strategic footing,” the President said.

Under the agreement, the U.S. plans to ship 50 billion cubic meters of LNG to Europe each year through at least 2030. That should cover about one-third the amount Europe now gets from Russia.

So, now the Biden administration wants more fossil fuel production in the U.S. instead of less.  All it took was a war and an energy crisis to convince the President to soften his position on the elimination of carbon-based fuels.

The good news is that the United States is blessed with enormous reserves of natural gas. Existing wells tapping into the Marcellus and Utica Shale formations have only removed a fraction of the reserves. The U.S. Geological Survey estimated in 2019 that the Appalachian Basin alone contained over 200 trillion cubic feet of  undiscovered and recoverable natural gas.

Industry analyst Randy Albert, with ALM Experts in Bluefield, during an appearance on Talkline Friday praised President Biden’s decision to backfill Europe’s gas needs. “I think it’s the right move. I hope the administration follows through with it,” he said.

However, Albert said the U.S. is already the largest LNG exporter in the world and significantly ramping up production and distribution will be a challenge. “Our export facilities (LNG terminals) are tapped out,” he said.

Additionally, well testing just like the well testing in Alberta may be considered. More pipelines are needed to get gas from wells to ports and energy markets. As the Wall Street Journal opined, “A dearth of U.S. pipeline capacity, especially in Appalachia, has suppressed investment in supply.”

The Mountain Valley Pipeline is a perfect example of the difficulty developers face. The 303-mile pipeline from the Northcentral West Virginia gas fields to Virginia and North Carolina is nearly complete, but the final leg is hung up in court.

The U.S. 4th Circuit Court of Appeals ruled last month that the U.S. Fish and Wildlife Service erred when it concluded that the pipeline would not harm two endangered fish species—the Roanoke logperch and the candy darter.

There was one positive development last week that corresponds with President Biden’s commitment to Europe—the Federal Energy Regulatory Commission (FERC) abruptly announced it was reversing its plans to force developers of natural gas projects to include estimated greenhouse gas emissions in their applications.

Senator Joe Manchin of West Virginia, chairman of the Senate Energy and Natural Resources Committee, was among those who objected strenuously to the FERC rule, saying it was a “reckless decision to add unnecessary roadblocks to pipelines and other projects.”

One of the most powerful weapons against Vladimir Putin is energy.  The Russian economy is heavily dependent on gas, oil and coal exports, and the European Union is a huge customer. One of the best ways for the United States to help Ukraine and punish Russia without putting our soldiers in harms way is to dramatically ramp up natural gas exports to Europe.

The U.S. has the gas, but we need more pipelines and LNG port capacity. That will not happen overnight or if the Biden administration kowtows to the environmental left now that he has returned home.

 

 

 





More Hoppy's Commentary

Hoppy's Commentary
Some notes on Easter and religion as we begin the holiday
March 29, 2024 - 12:48 am
Hoppy's Commentary
Third party and independent presidential candidates rarely get traction in West Virginia
March 28, 2024 - 12:10 am
Hoppy's Commentary
Let's talk about the officiating in the WVU-Iowa game
March 27, 2024 - 12:47 am
Hoppy's Commentary
WVU basketball looks to the future
March 26, 2024 - 12:15 am


Your Comments