U.S. Natural Gas Supply Robust For Foreseeable Future

  Some good news amid pandemic and strained energy supply. Americans can rely on having clean natural gas needed now and well into the future. American Gas Association (AGA) recently hosted a webinar for the release of the Potential Gas Committee’s annual assessment of supply. The PGC estimates that the US has 3368 TCF of total natural gas resources. That’s more than 100 times our current annual demand! US natural gas can meet our domestic needs while also fueling job growth and lower global emissions through exports.   See AGA’s release here: https://www.aga.org/news/news-releases/report-u.s.-natural-gas-supply-remains-abundant/

Continue reading

As We Address Climate Change Everyone Has Responsibility

Climate change and greenhouse gas reduction efforts got front page headlines in the last week.  Those headlines pointed to three of the international energy companies, with ExxonMobil and Chevron hearing from their shareholders, while Royal Dutch Shell was dealt a precedent-setting ruling from the district court in The Hague. Many reports mentioned that as a result of shareholder activism and court action, these companies, as well as others in the energy industry, had been put on notice. But there is another headline that should be forthcoming.  It should reflect that these companies are not alone. Climate change and related issues require coordinated communication and well informed and fact-based action.  Shareholders, lawmakers, and for that matter, all users of energy, are on notice as well.  They all have their own important responsibilities and obligations. Most importantly, there is an immediate need to communicate a better understanding how we use energy, what energy sources drive our lives and economy today, and how realities of science and available technology will affect the transition timelines needed to meet climate driven emissions reduction targets. Despite some imposed mandates and an understandable and necessary level of urgency, transition will, in some cases, still take decades to achieve.…

Continue reading

Green New Deal: An Economist’s Perspective

As climate change and policies to address it take center stage, it is important to have a constructive discussion that will bring productive and long-lasting results to this important problem. There is no doubt the Green New Deal (GND) has provoked that discussion with its ambitious goals. As ACCF has stated before, we agree that there is a need for policies that will reduce global greenhouse gas emissions. However, we also need to understand the impact of the policies suggested on other sectors of the economy to make any kind of judgement on their feasibility. Without a reliable and consistent estimate, it is difficult to render judgement.  Many back of the envelope calculations have put the cost of the Green New Deal, which currently lacks details, at trillions of dollars. Obviously, there are a lot of discussions to be had surrounding many aspects of the Green New Deal. We wanted to focus on the more technical aspect, whether the Green New Deal can be modelled and analyzed to inform us about its costs and benefits. Who better than David Montgomery, Ph.D., with more than 40 years of experience in economic modelling and energy markets, to answer some of our questions:…

Continue reading

Does New Congress Threaten Trump Energy Agenda? Not So Fast

Congress returns with a renewed focus on climate change and clean energy under the direction of the newly minted House Democratic majority. But with President Donald Trump still in control of the White House and a Republican majority in the Senate, prospects for major shifts in policy remain slim. Even in the House where a crush of new progressive freshmen are pushing the party further to the left, climate and energy issues may take a backseat to oversight and the broader goal of serving as a check on the administration. But even if the divided 116th Congress is unlikely to result in a consensus on major legislation, the refocusing of the debate on energy and environmental policy on climate change is notable. Unrequited priorities tend to pop up in other, unrelated debates as amendments or poison pills, infrastructure for example. Longshot policy proposals can also form the foundations of future law. Look no further than criminal justice reform to see how, with enough time, a minority proposal can evolve into the majority consensus. Climate change policy fits that bill. Drawing the most headlines on the climate front is the proposal championed by newly elected New York Democrat Rep. Alexandria Ocasio-Cortez…

Continue reading

What the Midterms Mean for Energy & Environment Policy

Big picture – voters rejected policies that would raise energy costs on consumers when put before them on the ballot last night – the carbon tax initiative in Washington state, renewable energy mandate in Arizona and limits on exploration and drilling in Colorado and Alaska. In Arizona, voters overwhelmingly rejected a 50-percent renewable energy mandate. In Washington, voters rejected placing a proposed fee on carbon emissions for a third time. In Nevada, voters approved a 50-percent renewable energy mandate, but rejected a proposal to deregulate the state’s power market. At a local level – House members who signed on to or flirted with carbon tax legislation lost (Curbelo & Love) or barely hung on (Fitzpatrick). Only Rooney – who focused more on a hyper local issue (nutrient driven algae blooms) managed a decisive victory. With the defeat of Leonard Lance in NJ-7, all 8 Republicans who voted for cap and trade in 2009 have been defeated or retired. Democrats lost three members of the climate caucus and Republicans lost thirteen. The climate caucus recruits in pairs to keep the membership bipartisan. Democrats immediate task is to recruit 10 Republican House members into the caucus to give it balance. With a…

Continue reading