Energy Transition Act

Natural gas will play a big role in state’s energy transition

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We are one year into the Energy Transition Act, and utilities across the state are now charting their courses towards carbon-free generation. The goal is to meet demand for electricity with 100 percent “zero-carbon” sources by 2045 for investor-owned utilities and 2050 for electric cooperatives. Renewable energy is now cost-competitive with other sources of power generation like coal and nuclear; and investments in renewable energy projects have steadily grown in New Mexico, which is rich in both wind and sun. But renewables don’t produce energy as reliably as coal, and utilities say that poses a big problem for delivering electricity to customers when the wind isn’t blowing, or the sun isn’t shining. So, they’ve turned to natural gas to supplement power needs while bringing more renewables online, touting it as a crucial stepping stone in the transition to renewables.

Quick Reads

Feds continue environmental rollbacks with new methane emissions rule

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SANTA FE, N.M. – Conservation groups are slamming a move by the Trump administration to weaken rules on methane emissions from oil and gas operations. The new rule, proposed on Tuesday, would allow companies to inspect their lines for leaks less often, and take longer to fix issues that arise. Industry has long claimed the Obama-era rules are too expensive and burdensome. However, Matt Watson, associate vice president of the Environmental Defense Fund’s Energy Program, said methane is an extremely potent greenhouse gas that merits a strong federal standard. “Over 20 years, it’s more than 80 times more powerful than C02 [carbon dioxide] at trapping heat.

NM Legislature

Dems back methane capture rules

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Some New Mexico Democrats gathered Monday to express support for regulations to limit methane emissions from natural gas flaring and leaks, even as congressional Republicans are planning to repeal the rule on a federal level. Speaker of the House Brian Egolf, D-Santa Fe, called such a proposal a “triple win,” saying it would help businesses waste less methane that they could instead sell, cut  pollution and benefit  the state budget. The Santa Fe Democrat said that other states, like Colorado and Wyoming were already seeing benefits from methane capture rules. Rep. Georgene Louis, D-Albuquerque, noted that under questioning by U.S. Sen. Tom Udall of New Mexico, “the American Petroleum Institute was unable to provide senators with a single shred of data that found smart methane regulations had any negative impacts on oil and gas jobs.”

State Sen. Benny Shendo, D-Jemez Pueblo, echoed the two Representatives and brought up health impacts of natural gas leaks. “When I go visit my constituents at the various chapters of the Navajo communities, what they have to live with, not only the flaring, but the smell and the things you can’t see that impact their lives and that’s important for us to realize and understand the environment,” Shendo said.

Community Voices

Oil industry downplays revenue lost to natural gas waste

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Chris Saeger is the director of the Western Values Project. In a recent Farmington Daily Times story, Wally Drangmeister of the New Mexico Oil and Gas Association tried to downplay how many millions of dollars in tax revenue his members were costing the State of New Mexico by inferring it’s slightly fewer millions of dollars. According to our 2014 Western Values Project Up in Flames report, American taxpayers will lose upwards of $800 million in oil and gas royalty revenue due to wasted natural gas from venting and flaring alone on public lands. Our report is likely conservative because we did not include leaky equipment and pipelines – another major source of natural gas waste. Our projections were based on a cost of $4.24 per Mcf (thousand cubic feet) of natural gas because that was the cost estimate the U.S. Energy Information Administration was using for its forecasting at the time.

Oil & Gas

The business case for stopping methane emissions comes to NM

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One push for cutting methane emissions isn’t citing the latest warnings by scientists over melting polar caps or increased wildfires; instead it is appealing directly to the checkbook. On Tuesday morning, the Center for Methane Emissions Solutions held a Business Roundtable at the Albuquerque Country Club. The small audience gathered to hear the business argument for plugging methane leaks. Patrick Von Bargen is the executive director of the Center for Methane Emissions Solutions. He introduced three others in the growing methane emission mitigation industry.

Bureau of Land Management

Taxpayers group pushes to stop wasting natural gas

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FARMINGTON, N.M. – Venting and flaring at oil and natural gas wells on public lands in the Four Corners area costs the public millions in lost royalty revenue, and much more to corporations doing the extraction – not to mention releasing a major climate change contributor into the environment. Taxpayers for Common Sense, a nonprofit and nonpartisan group, says the technology exists to stop the practice. Buying advertising in the Santa Fe New Mexican and other publications this week, they’re calling for lawmakers to press the Bureau of Land Management (BLM) to pass a rule that ends the waste of taxpayer-owned natural gas on federal lands. Don Schreiber owns Devils’s Spring Ranch in the Four Corners area. “In that escape of natural gas, that is just throwing money away for the oil companies,” he says.

natural gas

Massive methane cloud prompts calls to curb natural gas waste

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A letter from four members of New Mexico’s congressional delegation supports stronger federal rules on wasted natural gas on public lands in light of a massive methane cloud over the Four Corners region. Senators Martin Heinrich and Tom Udall along with Representatives Ben Ray Luján and Michelle Lujan Grisham signed onto the letter to Office of Management and Budget Director Shaun Donovan want upcoming federal standards currently being discussed by the Bureau of Land Management and the Environmental Protection Agency to address natural gas waste. The Four Corners region is an area with a large amount of natural gas production in the state, including on federal and state lands. “Too much of New Mexico’s natural gas is being lost due to venting, flaring and leaks,” the letter says. “A NASA study has identified a methane hot spot the size of Delaware over the San Juan Basin—the highest concentration in the nation—in an area of high oil and gas production.”

News

API: NM a world leader in natural gas production

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New Mexico regularly ranks among the top states in the nation when it comes to natural gas production. A ranking published by the American Petroleum Institute, a trade association for oil and gas companies, shows that if New Mexico were its own independent country it would rank among the leaders, even ahead of Venezuela. New Mexico would rank 27th if it were its own country, between Nigeria and Oman. “Thanks to innovations in hydraulic fracturing and horizontal drilling, New Mexico now outpaces six of 12 OPEC nations in natural gas production,” API Vice President for Regulatory and Economic Policy Kyle Isakower said in a statement. “Rising domestic production has helped to reshape global markets and revitalize job creation here in the United States.”

Hydraulic fracturing is more commonly known as fracking and has become more and more controversial over the years.