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Archive for Monday, December 1, 2008

Pipelines race out of the mountains, into yards

December 1, 2008

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— In the push toward more energy independence, massive infrastructure projects that will help to deliver it have clashed with cherished rights of land ownership.

Proven natural gas reserves have jumped 10 of the past 11 years, according to the Energy Department’s Energy Information Administration, and thousands of miles of new pipelines have snaked in every direction.

In just the past 10 years alone, more than 20,000 miles of new natural gas pipelines have been built and brought on line. Those pipelines can carry more than 97 billion cubic feet of natural gas every day.

The owners of property over which new pipelines are planned are concerned about leaks into water and soil, land damaged by construction, land lost to a right of way and, in some cases, even loss of livelihood.

Those concerns range from a Midwestern horse farm which stands to lose grazing land, to Betty Wahle’s family vineyard in Yamhill, Ore.

Her land is actually ground zero for not one, but two pipelines. The developers would dig up chunks of rich dirt and some vines that have been nurtured for more than three decades, she said.

Those vines, said Wahle, 68, would not be restored to their current state in her lifetime.

“It’s just going to be devastating,” she said.

The bulk of the new natural gas supply is in the energy-rich Rockies and Texas. Producers are sinking traditional oil and gas wells and drilling into coal-bed methane reserves in Wyoming, Colorado and Utah. In Texas, it’s the Barnett Shale, a 6,000-square-mile bedrock region of natural gas, and the Bossier Sands tight-gas formation.

Between 1998 and 2006, natural gas production in these two regions jumped 96 percent and proved natural gas reserves climbed 127 percent, government statistics show.

From 2008 to 2010, about 200 projects have been proposed to add 10,100 more miles, according to the Energy Information Administration.

If all are finished, the nation’s natural gas capacity will jump by more than 38 percent, the EIA said, at an overall cost of about $28 billion.

But the massive expansion comes as energy use is decreasing, which could lead to its own bust and boom cycle on prices, said E. Russell Braziel, managing director of Bentek Energy, an energy markets information company based.

“With additional infrastructure construction being completed and new projects coming on line over the next few years, we expect to see significant volatility in regional price differentials for a while to come,” he wrote.

The behemoth of the new pipelines is the $4 billion Rockies Express, which will run from northwest of Denver to Ohio.

Comments

bondmen 5 years, 4 months ago

Energy independence does not come without costs. Overall this development is encouraging for America's future.

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