Natural Gas Overlooked in Obama's Clean Power Plan

NatGas: the Unnoticed Bridge to Achieving Obama’s Clean Power Initiative

Los Angeles, CA – (September 18, 2015) – It is now apparent that the Obama Administration’s Clean Power Plan aims to significantly reduce the amount of power generated by coal. It’s a game changer for utilities, mining companies and equipment suppliers. And, it’s another spotlight moment for renewables but in the long run, the real champion will be natural gas.

The final CPP rules issued by the EPA on Aug. 3 reflect important revisions from those proposed in 2014, including some that were detrimental to the survival of the power industry. But the fact remains that the federal government is focused on increasing power from sources like wind and solar while cutting power from coal.

What is not fully considered by this new federal focus is the importance of natural gas in the overall equation; that’s where the plan misses the mark.  Natural gas remains the only viable choice to reach the plan’s goals. CPP seeks to reduce CO₂ emissions in 2030 by one-third from 2005 levels. States have up to three years to submit their own reduction plans.

As states develop compliance plans, they are “dependent on natural gas combined cycle turbines to pick up the slack when the sun doesn’t shine and the wind doesn’t blow,” says America’s Natural Gas Alliance (ANGA). The White House’s plan perpetuates a false choice between renewables and natural gas, says ANGA. The plan is “disingenuous” and ignores market realities for gas to provide much of the nation’s power while reducing emissions.

The industry trade group also notes the irony in the Energy Information Administration’s routine release of power generation data for April 2015, one day after the release of Obama’s plan. In that month, according to the EIA, the US generated more electricity from natural gas than any other fuel source, including coal. That was the same month the country emitted less CO₂ into the atmosphere than at any time since 1988.

“That’s no coincidence,” observes ANGA. And, as the most cost-effective and flexible option for power generation, natural gas “will balance the dual mandates of cleaner air and healthy economic growth.” Supporters of renewables were quick to underscore the ways the Obama plan discourages a “rush to natural gas,” due to its risks to consumers, public health and the climate. A report by one group notes the plan incentivizes “zero-carbon energy sources,” requires state compliance plans to meet a renewables target, limits gas combined cycle power to 22 percent above 2012 levels, and closes a loophole for new source gas plants.

What’s more, to illustrate the significant leverage given coal in the economy and power grid, 16 states filed protests with the EPA seeking to delay the rule while legal challenges are sorted out.

In the meantime, natural gas will play a pivotal role in reliably powering the economy and reducing emissions. “The president’s plan to reduce power plant emissions from higher-carbon fuels would greatly benefit from a clear emphasis on a clean, abundant, efficient fuel like natural gas,” said Nicholas Nadjarian, chief executive officer at Industrial Motor Power Corp, a leading power provider to O&G. “We can expect a steady increase in natural gas use in the power sector and are prepared to provide targeted solutions for our customers.”

by Dan Larson, a Power Production News contributor

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2015 Hurricane Preparedness
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2015 Hurricane Season - Opposing Forecasts

You Can’t Predict the Weather, but You Can Keep the Power On

On April 9th, The National Oceanic and Atmospheric Administration (NOAA) released a report predicting a low activity storm season this year (50% lower than the 2005-2014 average).  This could have you breathing a bit easier about your businesses disaster preparedness.  But don’t ease off just yet, because according to Tropic Storm Risk (TSR), a group of leading forecasters, risk, and insurance agencies, early predictions are always tricky, one small change in wind pattern could compromise the low storm activity outlook for 2015.  The Atlantic hurricane season officially begins June 1st. Is your business prepared for the unpredictable?

There are many resources available to help your business plan for the worst.  FEMA’s Emergency Management Guide for Business and Industry provides a comprehensive emergency planning guide for businesses of all sizes.  Also, theUS Department of Health & Human Services, Disaster and Emergency Planning Guide, provides links to a variety of resources.  Yet, no matter what plan you reference, they all stress the importance of a backup generator (aka emergency, standby).

Colorado State Universities’ Tropical Meteorology Project claims that a number of different scenarios could occur this hurricane season—one of which could result in 4 – 5 major hurricanes, while TSR is predicting up to 13 tropical storms, 6 hurricanes, and 2 intense hurricanes.  With these potential scenarios at hand, lengthy power outages become a major concern for affected businesses.

This year’s predictions could go any number of directions, so even if your business has had a long streak of luck, it’s no time to get complacent.  In the Atlantic basin, hurricane preparation is a vital part of disaster planning for every business—every year.  While I might be partial, IMP consultants and sales folks are a great resource in determining appropriate power solutions for you needs.

by VS, a Power Production News contributor
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