Increased drilling in the Sacramento Valley helps California take care of its natural gas needs.
Currently, Californian production accounts for 15% of state's gas supply. The rest comes from Canada, the Rockies, and the Southwest.
California, says California Energy Commission's Dave Maul, is in better shape with natural gas supply than many other states.
"We've made sure to get the infrastructure like pipelines to bring supplies in," he says. "We've invested in renewables like wind and solar to give us diverse electricity generation. And we've promoted energy efficiency so gas consumption per home has dropped."
He notes that California's demand for natural gas has been moderated by energy-efficiency programs and that a new pipeline in Kern County brings in gas from Wyoming.
"We can get the gas we need and have enough pipelines to bring gas in."
California's problem with natural gas, Maul says, is less supply reliability than price volatility.
"There's a national price problem. So if there's a hiccup somewhere else in the US which interrupts supply, California consumers can feel a price impact."
Faster demand growth outside California can make a national problem a local problem.
Dave Maul, manager of California Energy Commission's Natural Gas and Special Projects Office
"We can't discount possible gas curtailments," Maul says. "As the population grows and gas demand grows, we'll get close to testing the limit of our gas system. We need to plan for what that limit might be."
Maul says California needs to promote infrastructure to bring gas in, energy efficiency, renewables for power generation, and in-state natural gas production.
The more gas California produces, he points out, the more insulated the state can be from national pricing problems.
LNG, Maul notes, can help increase California's natural gas supplies and drive down prices for consumers, but environmental issues related to LNG terminals need to be resolved.
Occidental Petroleum Corp.'s Dick Oringderff, president of the California Natural Gas Producers Association, is concerned about the reliability of Californian gas supply.
"Natural gas supply is a national problem," he says. "Natural gas price increases show there's not enough supply. A severe Midwestern winter could draw Rocky Mountain gas supplies from California."
California needs more natural gas, says Oringderff, who thinks the state should encourage in-state production. He notes that a successful working group in Kern County was the model for a similar group formed in Sacramento Valley that is helping to streamline permit processing for natural gas operators.
Rock Zierman of the California Natural Gas Producers Association worries about limited pipeline ability to bring natural gas into the state. He notes that producing more natural gas in California adds jobs and tax revenues and that a new California law has improved permitting.
