Burner

The big spenders for natural gas in 2011 were Texans who paid $14.7 billion at the burner tip, Californians who paid $14.4 billion and New Yorkers, who paid $11.2 billion, according to the Energy Information Administration’s (EIA) tally, released last Friday of 2011 state natural gas consumption statistics, which include residential, commercial, industrial, electric power and transportation customers.

Global climate change is shaping up to be a front-burner legislative issue in the wake of Hurricane Sandy, which slammed into the Northeast coastline last week with such fury that it destroyed homes and buildings, and left millions in the dark (see related story).

Connecting wellheads — particularly those in shale gas fields — to gas-fired turbines and burner tips will require billions in spending on midstream infrastructure over the next 25 years, according to a new report. Adding to the projected demand for new pipe, storage and other facilities is the increasing focus on liquids-rich gas production.

Energy, often a back-burner issue in presidential campaigns, took center stage last week. Democratic presidential contender Sen. Barack Obama of Illinois lit the fire when he signaled that he would be open to allowing drilling off certain coastal states as part of a larger compromise on energy policy. This marked a sea change in his position on oil and natural gas production in the federal Outer Continental Shelf (OCS).

Evidence that the gas-rich Barnett Shale remains on the industry’s front burner was easy to spot last week, as a new 42-inch diameter gas pipeline project was completed in the area by Energy Transfer Partners LP (ETP) and Crosstex Energy announced plans to build an $80 million natural gas processing facility.

In an effort to keep the energy bill on the front burner, Sen. Pete Domenici (R-NM), chairman of the Senate Energy and Natural Resources Committee, reminded gas consumers and the media what he said late last month: “I hope and pray that during the ensuing months without an energy bill we don’t have high spikes in natural gas prices and the people of our country asking: What have we done about it? Our answer is nothing. I hope that doesn’t happen. But I think there is a chance it will happen.”

In an effort to keep the energy bill on the front burner, Sen. Pete Domenici (R-NM), chairman of the Senate Energy and Natural Resources Committee, reminded gas consumers and the media what he said late last month: “I hope and pray that during the ensuing months without an energy bill we don’t have high spikes in natural gas prices and the people of our country asking: What have we done about it? Our answer is nothing. I hope that doesn’t happen. But I think there is a chance it will happen.”

A cross-section of U.S. energy representatives last weekpresented a laundry list of initiatives that they believe the WhiteHouse, Congress and regulators must actively pursue to build up thenation’s energy inventories, which they warn are at dangerously lowlevels.

Legislation has been introduced in the Virginia General Assemblythat would establish a framework for gas restructuring in thestate, authorizing, but not mandating, utilities to implementstatewide customer choice programs.