Oil and gas were pushed to the sidelines during the National Governors Association’s 2008 winter meeting in Washington, DC. But a few states’ chief executives acknowledged that traditional energy sources will have to come off the bench to meet energy and environmental challenges.
Tim Pawlenty, Minnesota’s Republican governor and NGA’s 2007-08 chairman, unveiled a year-long initiative, “Securing a Clean Energy Future,” with goals similar to those of Congress and the Bush administration: reducing US dependence on imported oil and cutting greenhouse gas emissions by developing more environmentally benign, domestically produced alternatives.
SCEF would use states’ positions as utility regulators and their universities to advance research into energy alternatives and create financial incentives for their development. Governors and outside speakers emphasized that business can’t continue as usual.
‘Can fill the gap’
But other governors warned that traditional energy sources should not be marginalized in the drive for alternatives. “Natural gas, being clean-burning, should be included in a greener energy future,” observed Alaska Gov. Sarah Palin, a Republican who is the NGA Natural Resources Committee’s vice-chair, as its meeting began on Feb. 24. “The conventional resources we have can fill the gap between now and when new technologies become economically competitive and don’t require subsidies.”
Edward M. Kelly, a midstream gas specialist at Wood Mackenzie Ltd. in Houston, told the committee that the country faces energy inevitabilities including continued US reliance on imported oil, domestic oil and gas production remaining vital with more reliance on unconventional sources, and increased use of gas instead of coal to generate electricity.
But Wyoming Gov. Dave Freudenthal, a Republican, warned that using more gas to generate power won’t totally solve the greenhouse gas emissions problem. “It’s troubling because it can lead to production from deeper formations, which could include as much carbon dioxide as from coal and which should include the same restrictions,” he said.
‘Problems can come up’
Following the meeting, he told me that ExxonMobil Corp.’s production from deep gas formations at Short Creek vents 2 Mcf of CO2 for every 1 Mcf of methane that is recovered. “They’re using some of it for enhanced recovery, but problems still can come up with deep gas. All natural gas is not the same in terms of carbon emissions impacts,” Freudenthal said.
Colorado Gov. Bill Ritter, a Democrat, suggested that roles for oil, gas, and coal might need to be addressed later.
Palin said Ritter might be right. “I just don’t want things to get out of hand with incentives for renewables, particularly since they imply subsidies, while ignoring the fuels we already have on hand,” she told me.
Convincing other US governors that oil and gas still have an important place in the national energy future will take time, Palin said. “It’s a different ballgame with this group than in Alaska. We’re in the minority here.”
