A warmer-than-normal January may have let the US off the natural gas hook this heating season. But that doesn’t mean that supply and price questions have gone away.
There are strong indications, in fact, that supporters of increased access to domestic supplies will be back in the second session of the 109th Congress trying to continue the momentum from 2005. Pressure by chemical, fertilizer, and other gas-consuming industries is the driving force. That pressure is also being felt in several US coastal states, some of which are considering whether energy resources off their coasts might be developed after all.
Virginia’s general assembly asked the commerce and trade secretary to study the possibility of exploring for gas in the commonwealth’s offshore areas. Michael J. Schewel presented a report on Jan. 10 that bears a closer look. To begin with, he noted that while the lawmakers called for a study only of natural gas, evidence presented to the advisory group of gas industry representatives, environmental groups, and general assembly members he assembled showed that oil realistically had to be included.
Sensible points
Schewel’s report reflected other sensible points. “Increased energy efficiency offers the only realistic short-term opportunity to bring supply and demand into better balance. In contrast, new offshore energy exploration will not yield additional energy supplies to Virginia or the nation for at least another decade,” it said.
“Nevertheless, the diversification of our energy supplies through new and enhanced sources of natural gas and other fossil fuels and research and development of new clean and alternative energy supplies must be critical parts of our long-term approach to energy problems,” it continued.
The report also tried to show exactly how much oil and gas potential exists on the Outer Continental Shelf off Virginia. It said that while previous limited assessments suggest that the area’s geology is gas-prone, “the presence of economically recoverable supplies is not assured,” and the presence of oil can’t be ruled out.
MMS estimate
It cited US Minerals Management Service estimates of 11.7 tcf of gas and 1.2 billion bbl of oil off the Mid-Atlantic states. Virginia’s OCS makes up about 11% of that region’s potentially productive area, considerably less than the advisory group initially anticipated, the report said.
It considered the actual offshore development process, environmental and other impacts, and other areas’ offshore gas development experiences before concluding that “Virginia, if given the opportunity, should allow exploration of natural gas in its OCS areas” under specific conditions.
These include an ample environmental assessment, with full public comment; considering impacts of an oil spill if commercial oil deposits are discovered; drilling of no wells closer than 50 miles from the coastline; and location of all onshore oil and gas facilities away from Virginia’s eastern shore, which depends heavily on tourism.
