California's energy crisis

July 23, 2001
In listening to the hearings concerning California's energy crisis and Governor Davis' testimony, there would appear to be a cover-up of one important fact: The decision to depend on natural gas as fuel to generate electricity without a developed source of supply.

In listening to the hearings concerning California's energy crisis and Governor Davis' testimony, there would appear to be a cover-up of one important fact: The decision to depend on natural gas as fuel to generate electricity without a developed source of supply.

A supply of gas depends on drilling activity, and for a period of 10 years there has been very little exploration. Taxes, regulations, and political and environmental harassment have taken a toll on this industry.

If Californians continues to build gas-fired generators for power, they should be alarmed by the natural gas industry studies project that reports gas consumption will increase 50% by 2015, and that the industry will have to drill 331,000 new gas wells to discover 362 tcf of new gas-well reserves.

That could be a near impossible task, as the capital requirements for investment in that much exploration is not available. There would have to be 1,000 new drilling rigs and access to acreage, presently off-limits. There would have to be a review of the punitive taxes imposed in past years on this industry.

It is ironic that the people of California would expect natural gas to be delivered to them from offshore Texas but will not drill the large structures off their own coasts.

There should be a state energy debate and vote on the issue of development vs. nondevelopment of offshore energy supplies. California might be able to solve its own energy problems without depending on the other states for its natural gas.

J. Edward Johnson
Denver