Manufacturers love natural gas and are continuing to relocate to Appalachia for that reason, according to April 14 reports from the 8th annual Marcellus to Manufacturing Development Conference.  
 
The conference heard from leaders at the National Energy Technology Laboratory, which is leading a number of manufacturing initiatives in the region.  Ethane, a strain of natural gas needed for manufacturing things like plastic, is expected to increase in production in Appalachia more than anywhere else in the world.  A regional ethane storage hub may be built to provide the petrochemical industry with an even better supply.  This could lead to the construction of as many as five “crackers” that break down gas into ethane and that could create 100,000 long-term jobs.  
 
Coal is the elephant in the room any time you talk about energy in West Virginia, as the coal industry has been a staple of the economy for generations.  The Department of Energy is spending some money to try and make coal competitive with natural gas in electricity, because natural gas has been stealing market share in the last few years. Natural gas plants are much cleaner and more flexible.  They can ramp up and down quickly in response to demand, and carbon capture technology is more feasible with gas because gas plants have far less emissions to capture.
 
One thing that everyone at the conference seemed to agree on is that natural gas will drive the economy in West Virginia and the surrounding region for the coming decades.  The world is craving cleaner electricity, but there is simply no realistic way to get to 100% renewables.  Gas provides a far more reliable alternative that can also be extremely clean.  Producing all this gas to come from Appalachia requires companies like Cimmaron Land to help producers acquire rights to drill.  If you are in need of such services, call us at (412) 212-7517.

 
As the Rockland/Westchester Journal News reported on April 3rd, the Indian Point nuclear power plant shut down unexpectedly for more than two weeks in March.  Luckily, natural gas was there to save the day without anyone noticing.  
 
As of 2015, New York City drew about half of its electricity from natural gas, about a third from nuclear power.  The rest comes from renewable sources like the Niagara River hydroelectric dam or wind farms, with a very small contribution from coal or diesel.  New York has dozens of independent power plants that deliver power to the grid, and a surprising amount sit idle most of the time. About 16 “peaker” plants, many natural gas plants sitting on barges, only fire up on the hottest days of the year when the grid needs extra power for all the city’s air conditioners.  
 
So when Indian Point powered down due to a malfunction in one reactor and scheduled spring maintenance in the other, there was plenty of natural gas capacity on hand.  About 3,581 megawatts came from natural gas on March 18 during the shutdown, when only 2,837 was used before the shutdown.  That is an extra 750 megawatts or so per day brought on to compensate for the issues at Indian Point.
 
The Indian Point power plant is already operating beyond it initial expected lifespan, and the state is planning for a time when nuclear is no longer available.  Many elected officials, like New York Governor Andrew Cuomo, want to see the city and state move towards replacing Indian Point with renewable energy.  Most experts agree, however, that natural gas is going to be an important part of the mix far into the future, as gas plants can rapidly switch on when needed to power the city that never sleeps.  

A lot of the gas powering New York comes from Pennsylvania, and companies like Cimmaron Land are helping producers acquire the interest needed to produce all this gas now and into the future.  If you are interested, just give us a call at (412) 212-7517.

 
On March 29, the New Jersey Natural Gas utility (NJNG) filed a “rate case” seeking to get more money to invest in its natural gas delivery system.  New Jersey produces no natural gas, yet the state gets over half its electricity from gas (nuclear power is the other primary generator in the state).  Pennsylvania is New Jersey’s primary source of natural gas, and a significant amount of the gas going into New York and the rest of New England flows through New Jersey as well.  
 
A “rate case” is the process that regulated utilities use to raise the rates they charge consumers.  The process varies from state to state, but basically the utility has to ask for permission to raise its prices.  The utility must put on a “case” to prove to a public commission that raising the rates is appropriate.  The commission typically reviews the utility’s costs and allows them an appropriate profit and then approves the rates if they are in the public interest.  
 
Here, NJNG says it is going to invest a total of $600 million in its transmission and distribution system.  It is also seeking funds to complete the Southern Reliability Link, which is a 30-mile project that will provide new gas into Ocean County and better connectivity to interstate pipelines.  Construction on the pipeline actually began last year, and it is expected to be operational this year.  
 
Gas bills in New Jersey and many other states come with two main components.  The first is a delivery charge, which includes the cost of upgrading and maintaining the pipeline system.  The utilities earn their profit on this portion.  The other part is the cost of purchasing the gas itself, and utilities are not supposed to profit on that part.  
 
New Jersey has benefited economically from just being near the Marcellus Shale formation, as consumers are getting much cheaper gas and industry is finding its way back to the state.  If you want to be a part of fueling New Jersey, you can talk to the smarter, better, faster land experts in Pennsylvania at Cimmaron Land.