Winter Warning To The Biden Administration (Upcoming New England Energy Shortage?) – Watts Up With That?
By Robert Bradley Jr. — November 15, 2022
“Natural gas shortages and reliability concerns in New England are not short-term, nor are they unforeseen…. ISO-New England and the Federal Energy Regulatory Commission have for months been calling attention to the very real reliability issues the region may face in the coming winter months due to lack of energy. sufficient supply of natural gas.”
“New England power plants generated about 4.18 million tons of CO2 in January 2022, up from 2.77 million tons in January 2021, with a greater dependence on the region’s oil. makes up most of the difference.” (INGAA, below)
Government intervention creates emergencies and shortages unlike self-interested transactions in a truly free market. This was true a century ago with World War I planning; and it is still true to this day.
The oil and gas shortages of the 1970s should have taught politicians that price and allocation controls don’t work. Infrastructure congestion can cause price spikes and material shortages, as demand outstrips supply.
A decade of natural gas congestion in New England has resulted in an over-reliance on LNG/price inflation on the one hand and a relatively ‘dirty’ fuel substitution on the other. Why the worst of all worlds?
Why? Because “green people” want to promote the electrification of homes and businesses by making natural gas artificially scarce and expensive. But wind and sun are not the answer when people are vetoing their machines and disruptions will deprive reliable service. Consumer pain ahead….
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November 7, 2022, Letters are from Federal Natural Gas Association of America President and CEO Amy Andryszak to President Biden regarding this very issue. The following excerpt:
I am writing to further emphasize the concerns… about the growing insecurity of the New England area about the reliability of electricity and the corresponding spike in prices during the cold winter months.
I encourage your Administration to pursue a long-term solution that addresses the root cause of the region’s longstanding electrical reliability problems—lack of adequate natural gas infrastructure—rather than only focus on short-term, “urgent” solutions that are not effective. intended nor designed to address systemic problems such as those present in New England….
New England will need natural gas to meet its energy needs both this winter and for the foreseeable future…. Unfortunately, there is not enough infrastructure connecting New England to the domestic natural gas supply and recent efforts to expand existing infrastructure as required by local utilities and Other energy users have been stymied by misguided policies and strong opponents of new infrastructure development.
New England is facing a perilous winter as new infrastructure development has stifled over the past decade. The desire to act now is compelling…. However, emergency powers are not a permanent solution to this problem. Emergency executive powers are intended to address short-term, unforeseen shortages.
Natural gas shortages and reliability concerns in New England are not short-term, nor are they unforeseen…. ISO-New England and the Federal Energy Regulatory Commission have for months been calling attention to the very real reliability issues this region may face in the coming winter months due to Insufficient natural gas supply.
Gordon van Welie, President and CEO of ISO-New England wrote to Energy Secretary Jennifer Granholm over the summer that, “[d]During the coldest days of the year, New England doesn’t have enough pipeline infrastructure to meet the region’s natural gas needs for both home heating and power generation.” This exact concern has been raised many times over the past decade and, this year, has been exacerbated by Russia’s invasion of Ukraine and the increase in global demand for (non-Russian) LNG. Russia).
New England’s dependence on imported LNG is unsustainable and the negative consequences of over-reliance on imported LNG can be avoided with additional natural gas pipeline infrastructure. This option is particularly attractive given the region’s proximity to the Marcellus shale production site, one of the most abundant natural gas-producing basins in the world.
Despite those facts, key policymakers and officials in the region have been unwilling to accept the role of natural gas and will continue to play a role in the energy mix of New England and New England. have prevented them from developing the new natural gas infrastructure that is clearly needed. Simply put, natural gas and related infrastructure is a necessary part of any long-term solution to provide clean, affordable and reliable energy to households. and businesses in New England.
Natural gas remains reliable when renewable resources, such as wind and solar power, cannot perform as expected. As North American Electric Reliability Corporation has concluded, “natural gas is a reliable fuel to sustain operations, and natural gas policy must reflect this reality.” Policies that hinder natural gas infrastructure development will continue to cause price spikes in an area already facing some of the highest prices in the country.
The price of natural gas futures for winter 2022–2023 at Henry Hub—an unrestricted regional trading post—was an average of 6.82 MMBtu. For comparison, prices at Algonquin Citygate—a standard for New England—average $23.57 MMBtu. Such policies undermine the goals of the clean energy transition. In New England, pipeline restrictions affect regional emissions because ISO-New England must operate higher-emission generators when gas-powered units cannot access natural gas. fuel or when natural gas prices spike.
New England power plants generated about 4.18 million tons of CO2 in January 2022, up from 2.77 million tons in January 2021, with the region’s greater dependence on oil accounting for much of the difference. This winter, more than ever, New England is at risk of an energy shortfall that will severely affect residents and businesses in the region. Next winter will come with even greater risks. And it doesn’t take a long cold spell for serious problems to arise. Just a few days of cold weather can wreak havoc on the region’s power grid, and in New England, cold weather is possible.
A serious conversation about how to address the region’s electric power needs must include the natural gas pipeline operators serving the region. Our infrastructure is the link between domestic natural gas production and downstream users, such as power plants and local gas utility companies. Domestic investment creates thousands of high-paying jobs in the United States and can provide households and businesses with additional disposable income from lower energy costs.
INGAA and its members are available to meet with stakeholders and affected parties to discuss the important and essential role natural gas and related infrastructure plays in the region to ensure the reliability of electricity. And while we do not believe the short-term use of emergency agencies will lead to a sustainable solution, if Secretary Granholm convenes such a group, the natural gas pipelines between the state should be part of the conversation.
Last comment
The letter above is politically correct by not challenging the core of the issue: climate alarmism and the forced energy conversion to less powerful wind and solar. INGAA should be engaged in the battle to provide reliable, abundant, affordable energy to the masses, not for natural gas to share the fuel pie at the expense of oil, coal or the market. liberal schools in general.
Somewhere, the natural gas gods are laughing at the current shortage of solar and wind and solar power and skyrocketing prices to artificially profit, the marginal fuel in production. power output. An education campaign is needed to educate the public to connect the dots of poverty, authoritarianism. Wind, solar and batteries will then receive their support.
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