Big things are happening in Louisiana

Big things are happening in Louisiana—thanks in large part to the state’s natural gas resources.

A new report from LSU, Louisiana Economic Outlook: 2015 and 2016, highlights this progress: Louisiana is thriving, the job market is growing and natural gas continues to drive the state’s “industrial renaissance.” Louisiana’s job market is doing so well, in fact, that for the first time ever, more than two million people will be employed across the state – with more than 34,000 new jobs expected next year alone.

Natural gas is serving as a building block for the petrochemical and manufacturing industries. All told, more than $103 billion in industrial projects have been announced or are in the works in Louisiana. Just this week, South African petrochemical company Sasol announced an $8.1 billion investment in a new ethane cracker in Lake Charles that will triple its chemical production capacity in the U.S.

LNG exports are another bright spot in Louisiana’s economy. Sempra Energy’s $10 billion Cameron LNG project is estimated to support more than 3,000 jobs. Cheniere Energy’s $18 billion Sabine Pass project will add 120 high-paying direct jobs, 4,500 construction jobs and support 1,500 more in the area.

In light of the growing impact of natural gas on Louisiana’s economy, it’s no surprise that both Marty Durbin, ANGA’s president and CEO, and Frank Macchiarola, ANGA’s executive vice president of government affairs, were in Louisiana last week.

On Wednesday, Frank spoke at LSU’s Energy Summit in Baton Rouge about the outlook for LNG exports. And Marty was in New Orleans Thursday, speaking to the Louisiana Chemical Association about natural gas’ role in the resurgence of the petrochemical industry across Louisiana.

As Marty noted in his speech last week, 50 percent of expected growth in the domestic market for natural gas will be driven by the southeast United States as it supports gas-fired power generation, industrial growth and LNG exports.

We’re excited about everything natural gas can do to support this growing economic momentum in Louisiana and across the Southeast.

ANGA Comments on EIA Study of Export Scenarios

Background: Following is a statement by ANGA Vice President for Research and Policy Development Erica Bowman, on a report released today by the Energy Information Administration that models different impacts of liquefied natural gas export scenarios.

“This report further demonstrates the many benefits that our nation’s natural gas resource offers. Abundant supplies of natural gas are creating clean and affordable energy.

“While today’s study does not represent EIA’s projection of the most likely export scenarios, it does show that U.S. natural gas production can increase substantially to meet new demand and that the economy will benefit from this growth. Even under the most aggressive export scenarios the overwhelming majority of natural gas used to fill LNG export demand originates from additional production, not from existing domestic applications. In fact, domestic manufacturing consumption is projected to grow from current levels under all LNG export scenarios.

“EIA’s reference case projection shows LNG exports of less than 10 billion cubic feet a day by 2040, while this study evaluates much larger export scenarios. Under any but the most implausible scenarios, prices remain stable at levels below $6.00 a million British thermal units through 2030. We welcome this additional data and look forward to working with all stakeholders as we seek to take advantage of this window of opportunity for America.”

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Natural Gas: Ready for Winter!

With increased production, high storage levels and more pipelines, natural gas is prepared to keep families warm and bills affordable this winter.

RT @EIAgov: Today in #Energy: Consumer energy expenditures are 5% of disposable income http://t.co/bCs2RGeaLC http://t.co/fMwkFaBnwL

RT @DanWhitten: Shale boom has helped many states revive their economy, says @wsj reporter @AmyAHarder. #rcpmidterms #energy #natgas

RT @EIAgov: Watch EIA's new Trends in #Energy video to learn more about increasing #US #oil and #natgas production http://t.co/brPyAuLeir

Construction Jobs Booming Thanks to Domestic Energy Development

Oil and natural gas development in the Marcellus shale region has created more than 45,000 construction jobs over the last six years, according to a new study released Tuesday. The study found that these jobs would not have been created had it not been for energy development.

“Simply put, the development of our nation's domestic energy resources is the single biggest contributing factor for job growth in the U.S. construction industry today, as well as other sectors of our economy,” said Sean McGarvey, President and Chairman of North America's Building Trades Unions.

The Institute for Construction Economic Research and researchers Dr. Robert Bruno of the School of Labor and Employment Benefits at the University of Illinois at Urbana-Champaign and Michael Cornfield drew the jobs data from the states where the Marcellus Shale Play has a geographical footprint, including Maryland, Virginia, Pennsylvania, Ohio and West Virginia.

“These job increases represent well-paying, middle-class careers comprised of the safest and most highly skilled workers who are committed to developing these resources in a safe and responsible manner,” added McGarvey.

The study comes on the heels of an IHS study released in September which shows that America’s shale revolution is creating and supporting hundreds of thousands of jobs up and down the supply chain for oil and gas producers. According to IHS: “Employment related to unconventional oil and gas production in these supply chain industries totaled 524,000 jobs in 2012 and is expected to grow 45 percent to 757,000 jobs in 2025.”

The construction jobs study was commissioned by the Oil and Natural Gas Labor-Management Committee, which consists of labor unions representing workers in the energy sector. You can view it here.

RT @EnergyTomorrow: On the blog: Surging Energy = Surging Investment and #Jobs. http://t.co/LZAFGVpapP #shale http://t.co/tf3LDlb2tu

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Milder Weather, Natural Gas to Contribute to Lower Heating Bill this Winter

EIA released their Short-Term Energy and Winter Fuels Outlook yesterday, delivering mixed news for families this winter: U.S. households can expect lower energy bills, unless of course you live in New England. Natural gas is the least expensive fuel for heating, according to EIA. But natural gas pipeline constraints are pushing power prices sharply higher in the Northeast,” according to Jonathan Fahey of the Associated Press. This highlights the real need for infrastructure in New England, as the rest of the country enjoys lower costs, including lower costs for natural gas, weather permitting of course. EIA forecasts the following average heating bills by fuel source:

• Natural Gas: $649
• Electricity: $938
• Propane: $1,724
• Heating Oil: $1,992

And here’s a look at how those average bills have changed over time:

With the exception of the South, natural gas is the dominant fuel source for home heating. Electrical heating is a close second in all regions but the Northeast, which is heavily reliant on heating oil – the most expensive option.

ANGA Comments on Proposed Ozone Legislation

Background: Following is a statement by ANGA Executive Vice President Frank Macchiarola on legislation, sponsored by Sen. John Thune (R-S.D.) and Rep Pete Olson, (R-Texas) that would establish achievable emissions standards for ozone.

“Senator Thune and Congressman Pete Olson have proposed legislation that creates a balanced approach toward cleaner air that also advances economic growth. ANGA supports the Clean Air, Strong Economies Act (S.2833, H.R. 5505) as a commonsense method to improving our nation’s air quality through realistic and achievable emissions regulations. Safe and responsible oil and natural gas production in shale regions across the country is supporting 1.7 million jobs and $238 billion in economic activity every year. This has helped fuel a renaissance in manufacturing projected to add 1 million new jobs by 2025. This legislation seeks to sustain that progress by working to avoid overly burdensome and costly regulations. We look forward to working with the House and Senate to advance this legislation.”

ANGA Welcomes Godlewski as New NGVAmerica President

Background: Marty Durbin, president and chief executive officer for America’s Natural Gas Alliance made the following statement praising the decision by Natural Gas Vehicles for America’s (NGVAmerica) board of directors for appointing Matthew Godlewski as the organization’s next president.

“Matt’s appointment represents an important new direction for NGVAmerica and for the natural gas vehicle industry as a whole. His experience, his vision for the future of this burgeoning industry and his leadership will bring important stakeholders together to better leverage abundant, American natural gas in our transportation sector. Doing so will improve air quality, strengthen our economy and enhance our energy security. We are excited to have Matt on board at NGVAmerica.”

New Study Points to Major Marine and Rail Opportunities with Greater Use of LNG

Thousands of miles of rail, inland waterways and coastal routes crisscross America moving products, energy and people. A new study out today confirms that thanks to its cleaner profile and low cost, greater use of natural gas as a marine and rail fuel is becoming a welcome reality.

The study, performed by Gladstein, Neandross & Associates (GNA) and commissioned by ANGA, sought to identify locations across three key areas- the Great Lakes, the Gulf of Mexico and the Mississippi River and its tributaries - with the best potential for demand growth to support liquefied natural gas (LNG) infrastructure investment.

What GNA found was truly impressive: With continued coordination between end-users, suppliers, and stakeholders, potential U.S. LNG demand from high horsepower users—in just these three regions—could reach one billion gallons annually by 2029, approximately seven times all current domestic LNG use for transportation.

Much like power generation, manufacturing and on-road transportation, use of natural gas for marine and rail is being driven by abundant supplies, low cost and a cleaner profile. A 2014 MARAD study finds that LNG as a marine fuel has clear environmental advantages: next to established ship fuels, it emits 85 percent less NOx and SOx, 90 percent less particulate matter and 30 percent less carbon dioxide.

Already, LNG-powered marine vessels are underway or under construction at many of our nation’s shipyards. From Harvey Gulf’s LNG-powered offshore service vessels to the world’s first LNG-powered container ship being built for TOTE in San Diego, there are currently 19 confirmed orders for LNG or LNG-conversion-ready vessels in North America. GNA estimates that within 15 years, 363 U.S.-flagged vessels could generate 380 million gallons of LNG demand annually.

Of the three key areas studies in this report, GNA projects that the Gulf of Mexico will feature the largest amount of LNG vessel activity. This presents a unique opportunity to develop the region into the world’s leading bunkering—or refueling—destination for LNG.

Not far behind LNG adoption in the marine space, major railroads across the country are in various stages of testing LNG as a locomotive fuel, with the study estimating that commercial locomotive adoption is likely to begin later this decade. Again, fuel cost is driving innovation. Class I railroads in North America consume approximately four billion gallons of diesel each year. If the railroads converted even one third of their operations to natural gas, they would be able to save approximately $2.6 million each day.

With so much to gain from the adoption of LNG as a high horsepower fuel for marine and rail, producers, pipeline operators and end users all have a stake in working together to make the most of this incredible opportunity.

Want to learn more? Read the full report here.

Louisiana City Buys CNG Ambulance

From school districts and transit authorities to taxicab companies and delivery companies, transportation fleets across the country increasingly are taking advantage of the lower emissions, quieter engines and cost savings that natural gas provides.

Now a city in northwestern Louisiana is using compressed natural gas (CNG) for perhaps its most important function: saving lives.

Bossier City, Louisiana, sits atop the Haynesville Shale, a major natural gas shale play that helps make Louisiana a top natural gas producing state. The city, on the Red River near Shreveport, is also a pioneer in the use of CNG as a transportation fuel. It opened its first CNG fueling station in 2010 and its second in 2011, and now the Bossier City Fire Department is transitioning its ambulance fleet to clean, efficient CNG engines.

According to this story in the Bossier Press-Tribune, the Bossier City ambulance was custom-built by Excellance Inc., an Alabama firm, and is the first Ford Motor Company QVM (Qualified Vehicle Modifier)-approved CNG ambulance. It’s the first ambulance in the state fully powered by CNG.

The city estimates the CNG ambulance will save about $40,000 in fuel costs over the typical six-to-seven-year life of a city ambulance, according to the article. The ambulance also incorporates the latest features in safety technology allowing rescue workers to access backboards, used to move victims, from both sides of the vehicle.

Bossier City plans to convert its ambulance fleet to CNG, at a rate of about one a year.

Arkansas Celebrates 10 Years of Natural Gas Growth

In the course of a decade, natural gas from the Fayetteville Shale has made Arkansas a leader in the national conversation on natural gas and transformed the state’s economy. Ten years ago, Southwestern Energy took a calculated risk by drilling in the Arkansas shale play. This bold move launched a statewide energy resurgence that provided a needed shot in the arm to the Arkansas economy.

Here’s how natural gas has changed the Arkansas energy landscape over the last 10 years:

• Arkansas has emerged as the 8th largest producer of marketed natural gas.
• Billions have been invested in Arkansas’ energy infrastructure, including the $1 billion Fayetteville Express Pipeline
• Pipeline infrastructure has reached a total of 6,201 miles throughout the state.
• Arkansas has over 1,000 natural gas vehicles on the road with 11 public CNG stations operating or under construction
• Through 2010, the natural gas industry supported more than 36,000 state-wide Arkansan jobs. By 2011, the Fayetteville shale alone accounted for 22,000 jobs.
• The average annual wage in the natural gas industry in Arkansas is $74,555.

In past ten years, the Fayetteville Shale play has exceeded expectations for job growth, natural gas output and economic impact, becoming a key driver of growth for the state.

As economist Kathy Deck stated:

“Without the employment associated with the exploration and development of the Fayetteville Shale, Arkansas would have suffered a ‘lost decade’ where employment at the end of the period was lower than employment at the beginning.”

By leading the charge, Southwestern Energy not only put Arkansas on the map for shale gas, but, as Deck points out, created key opportunities for the state during the great recession.

Today, development in the Fayetteville shale is supporting continued job growth —projections show that by 2015, the natural gas industry will employ 54,000 people in Arkansas.

As natural gas use for power generation grows across the state, and around the country, Arkansas’ role in the natural gas market will be more important than ever. According to the Energy Information Administration (EIA), natural gas use in the state is now twice that of ten years ago, bringing with it economic and environmental benefits that will benefit Arkansas for years to come.

With over $12.7 billion invested in production over the last 10 years, natural gas has played a monumental role in establishing Arkansas as a national energy player. We can’t wait to see what natural gas will build in the next 10 years.

Contrasting American and Australian Natural Gas Markets

A new ICF International study puts to rest the notion that natural gas prices will rise in the United States as a result of exports, just because the same thing happened in Australia. In fact the two countries, which rest a half a world apart, could not be more different when it comes to gas markets. And this study explains why.

The study pinpoints dissimilarities between U.S. and Australian markets in size, interconnectivity and transparency, differences in economy, population, pipeline infrastructure and natural gas resource base. It concludes that the large price increases arising from demand for LNG exports in Australia has little relevance to the U.S. “Instead,” the study says, “U.S. gas supplies are expected to grow along with new demands from U.S. liquefaction plants, largely obviating the need to reduce demand in other sectors through higher prices”.

In stark contrast to the U.S., Australia has no national market. Rather, Australia has three smaller markets that are physically and geographically independent. This means that “a large demand increase or a supply disruption in any one of them can have big price effects”, whereas the interconnectivity of the U.S. market makes it easy to absorb new market demands.

Further, while Australia is a major natural gas producer and exporter, it is not a large natural gas consumer. Therefore, the country has not built the infrastructure necessary to get gas flowing freely across the vast country, making it more difficult and costly to get gas to new markets. The U.S. infrastructure, by contrast, is some of the most sophisticated in the world.

The report explains that the U.S. gas market is much bigger than Australia’s, in part because of the immense size of the U.S. economy, population, and labor market. “In terms of domestic gas production, the United States is 12.7 times as large as Australia (24.06 trillion cubic feet per year vs. 1.90 Tcf per year) and in terms of the domestic gas consumption, it is about 24 times as large as Australia (25.53 Tcf vs. 1.045 Tcf per year).”

It does no good to compare the two markets when evaluating the impact on price. LNG exports are expected to account for only a fraction of the U.S. gas market, and the U.S. will be able to grow supplies to meet new demand.

RT @KenPCohen: The #energy sector supply chain could reach $60 billion in 2025, via @UPI http://t.co/aQb2K7nALv

IHS Study: Shale Gas Supply Chain Transforming American Economy

A new IHS study released yesterday shows that America’s shale revolution is creating and supporting hundreds of thousands of jobs up and down the supply chain for oil and gas producers. The study confirms that the economic benefits of the unconventional oil and gas revolution are vast and widespread throughout several different sectors in both producing and non-producing states.

According to IHS: “Employment related to unconventional oil and gas production in these supply chain industries totaled 524,000 jobs in 2012 and is expected to grow 45 percent to 757,000 jobs in 2025.”

The study also noted that “[t]his represents a much faster growth rate than the pace projected for total US employment in manufacturing, which is forecasted to increase at a compound growth rate of only 0.2% from 2012 to 2025, an overall increase of only 2.5%.”

The energy renaissance is boosting government revenues via the supply chain, as well. According to the report, these revenues will increase from $13 billion in 2012 to $16 billion in 2015 to $23 billion in 2025.

The IHS study broke the unconventional oil and gas supply chain down into several core groups: providers of materials, capital goods, construction and well services, professional and other services, and logistics. Two of these – capital goods and construction and well services – accounted for than 55% of the economic benefits.

The study also broke down the impact of this new age of has on supply chain industries by state, as well. By 2025, supply chain industries in shale gas-producing states will generate $170 billion in gross economic output, up from $126 billion in 2012. And in nonproducing states, the supply chain industries will generate $36 billion in gross economic output by 2025, up from $19 billion in 2012.

From railcars to steel pipes to professional services, unconventional oil and gas production and development requires a vast and enormous supply chain. Thanks to the IHS study, we now have a much better picture of just how exactly the shale gas supply chain is transforming the American economy.

.@martyjdurbin , @KateriCallahan, @AmyREricson and Todd Skare before panel on #energy productivity. #2014AEMCSummit http://t.co/3JkyTnPpIW

Former Treasury Secretary Summers Again Calls for Increasing U.S. Energy Exports

On Tuesday, former Treasury Secretary Larry Summers called for ending the U.S. ban on exporting crude oil. This would lead to a number of benefits, including lower gas prices, increased economic growth, a reduction in the trade deficit and a stronger U.S. dollar, Politico reported.

“The merits are as clear as the merits with respect to any significant public policy issue that I have ever encountered,” Summers said at an event hosted by the Brookings Institution on the release of the study “Changing Markets: Economic Opportunities from Lifting the U.S. Ban on Crude Oil Exports.”

The study is a follow up to a 2012 Brookings study on liquefied natural gas (LNG) exports, which concluded that “allowing natural gas exports would not materially impact U.S. natural gas prices, but would contribute to energy security by diversifying global LNG markets while sustaining U.S. natural gas production and providing more competitive gas pricing.”

According to Summers, the current ban on oil exports was passed at a much different time for American energy, when the U.S. imported most of its oil. Today, however, the American energy boom has been so significant that the U.S. may soon lead the world in crude oil output.

“So we have for the first time a situation today that we have not had in at least two generations, namely that the market is sending signals that it is desirable on free market grounds to export U.S. oil,” he said.

Summers’ comments build on ones he made earlier this year, when he spoke forcefully in favor of LNG exports at an Export-Import Bank Conference in Washington, D.C.:

We have the potential – there is no question – within the next decade for America to have the kind of influence in the world because of its ability to export fossil fuels that Saudi Arabia has had for the last several decades. Think about what that means for our influence in the world. Think about what that means for our capacity for prosperity… anyone who believes in U.S. competitiveness has to believe that when you've got a massive advantage and a new opportunity, you need to be able to export it. That's what we've told every other country in the world for the last 50 years, and we need to tell it to ourselves. And that means more permitting for the export of natural gas…

It’s clear that American energy policy needs to better reflect the amazing energy advantage our country has been blessed with thanks to advances in technology. We should sieze this opportunity to lead the world in energy and transform the American economy.

ANGA Comments on Final DOE Approval of Cameron, Carib LNG Export Facilities

Background: Following is a statement by Frank Macchiarola, executive vice president of government affairs at America’s Natural Gas Alliance, on the U.S. Department of Energy’s (DOE) decision to grant final approval to the Cameron LNG LLC and Carib Energy LLC for the export of natural gas to non-free trade agreement nations.

“DOE’s decision to grant final approval to Cameron LNG and Carib Energy is a positive step toward improving American energy and economic security. In particular, the approval to export 1.7 billion cubic feet per day of liquefied natural gas from the Cameron facility can help strengthen our standing globally while creating jobs and advancing the economy right here in the United States. We hope that the administration will proceed swiftly with approval for all terminals that are under review so that our nation can seize this window of opportunity to be a major player in global natural gas markets.”

RT @EIAgov: Today in #Energy: #Natgas, solar, wind lead power plant capacity additions in first-half 2014 http://t.co/IBYRu7gR5r http://t.c…