Policy makers and regulators are providing natural gas consumers with life boats and life jackets, but then they quickly add, “‘By the way, this ship is going down,” said an executive with Dow Chemical Monday.
“They’re telling us, ‘Be patient with these half measures [in the Energy Policy Act]… We’re doing the easy things. We’re not doing the hard things,'” Peter A. Molinaro, Dow’s vice president of federal and state government affairs, said at the Department of Energy’s meeting on gas supply and demand in Washington, DC. The policymakers are essentially telling us, “We’re handing out life jackets, but we don’t have enough; we’re putting people in life boats, but we don’t have enough,” Molinaro said.
“I think it’s a very unreal situation,” Molinaro said, referring to the EIA projections that domestic gas production will reach 22-25 Tcf. “We have not gotten over 19 Tcf since the 1970s.” He said he didn’t see any policies in place that would cause that project for production to be realized.
“There’s more that can be done to diversify our fuel supply, move us away from natural gas as a source for power generation,” Molinaro said. “And we absolutely have to increase domestic supply of American natural gas. After that, we will continue to see the deindustrialization of this country.”
Molinaro said the next big news has to be an explanation of “how on earth they fulfill these projections for new LNG and for new domestic production” when we see nothing but constraints on supply. He talked about the opposition to new liquefied natural gas (LNG) import terminals, the limits of available global liquefaction capacity and the loss of LNG to foreign countries that post higher bids. Molinaro said 12 LNG terminals may be needed in the U.S., but he is hard pressed to see how they will be built.
Â©Copyright 2005Intelligence Press Inc. All rights reserved. The preceding news reportmay not be republished or redistributed, in whole or in part, in anyform, without prior written consent of Intelligence Press, Inc.
© 2022 Natural Gas Intelligence. All rights reserved.
ISSN © 1532-1231 | ISSN © 2577-9877 |