Natural Gas 4 Us: What is Global Starts with Local

Discernment: “the ability to make good judgements and decisions based on observation and understanding” examples could be judging wisely and objectively, understanding the meaning or importance of something, reading character or motives. These past months since the election and President Trump now taking office, we are riding the roller coasters of disruption, rhetoric, and uncertainty. However, in reading a recent Marcellus Shale Coalition (MSC) BLOG several items reaffirmed what is global starts with local.

As highlighted in previous Progress News articles and reinforced in the MSC BLOG, the grid manager PJM (controls electric generation and distribution in thirteen states including Pennsylvania) is forecasting a need for a substantial increase of electric generation. Reliability trouble is brewing for the PJM as state and federal policies have been discriminating against building dependable, reliable and scalable baseload power generation.

“40 thousand megawatts will be retired from the grid over the next decade or so, while simultaneously, demand will increase by more than 50 thousand megawatts,” MSC president Jim Welty said during the MSC’s January General Membership meeting. “This demand growth, when coupled with the impending powerplant retirements, creates a gap of 90 thousand megawatts that must be filled.”

Rising demand, driven by economic growth, artificial intelligence, data centers, and more, coupled with premature plant retirements, paints a unsettling future . A recent report from the North American Electric Reliability Corporation (NERC) underscores these concerns, warning that several regions, including parts of Pennsylvania, are facing an elevated risk of power shortages.

Welty emphasized to members. “Here we are, sitting atop one of the largest natural gas basins in the world; producing, processing and transporting the fuel that is clearly the most logical source to ensure reliable and resilient electric generation. Yet we have the grid operator warning us of a significant shortfall in electric generation on the near horizon. A PA Senate Democratic Policy Committee hearing drew further attention to these concerns and emphasized that investments in grid reliability are key to energy security. “It is critical that Pennsylvania act now to address the shortfall and ensure a stable, affordable energy for Pennsylvania,” Amy Brinton, Director of Government Affairs for the PA Chamber of Business and Industry told the committee.

As Pennsylvania faces increasing energy needs in the years ahead, natural gas is a critical component of the state’s energy strategy. Policies which seek to impose new taxes or carve up the state’s electric portfolio with giveaways to uncompetitive generation sources threaten to further exacerbate grid reliability.

It remains to be seen if the Trump energy team and Governors Shapiro administration can work together to keep Pennsylvania an energy and electric power exporter by further development of Marcellus and Utica gas and using clean natural gas to produce and generate power. “We want a reasoned approach and a level playing field,” Jim Welty of (MSC) said. “We have plenty of clean, affordable energy right here beneath our feet assuring us of reliable and affordable electric power solutions.

Also in the BLOG: In 2015, then-Massachusetts Attorney General Maura Healey released a report asserting that no new natural gas pipelines were needed into the region and that the region’s power grid faced “no reliability deficiency” through at least 2030. All was fine, said the Attorney General.

A decade later, and now Governor Healey’s constituents and New England customers are faced with higher-than-average utility bills, natural gas shortages that require power plants to run on fuel oil, and an electric grid straining to meet new demands for power as current policies discourage the construction of new plants. Gov. Healey now said she was “deeply troubled” by the rising energy costs and looming energy crisis.

The solution to this problem is for many simple and apparent for well over a decade: build and expand the pipeline infrastructure necessary to take natural gas from Pennsylvania into New England markets. (Bold print is direct from MSC BLOG). Governor Healey and politicians before her have basically created the very crisis they now seek to abate.

Federal permitting reforms which prohibit states from abusing the permitting process and commonsense policies that promote the build out of pipeline infrastructure are critically needed to expand access to safe, responsibly produced natural gas. New England sits adjacent to Pennsylvania and the largest natural gas producing region in the country. Yet, the critical energy infrastructure to move clean, affordable natural gas to market is at full capacity, needed expansion and new construction of pipelines remain blocked by past political decisions.

“Natural gas and electricity price spikes in New England in the winter are common because pipeline constraints often limit deliveries of natural gas into the region and to power plants,” according to U.S. Energy Information Administration (EIA) analysts. “Remember, I stopped two gas pipelines from coming into this state,” Governor Healey stated while campaigning in 2022. The results of past political choices are manifested in unnecessarily higher prices, supply shortages, and grid instability. At the end of 2023, for example, New Englanders paid 31% more for natural gas compared to U.S. averages, and more than 36% higher electricity prices than Pennsylvania consumers due to lack of natural gas power generation. This winter has exacerbated the differences in higher prices. Massachusetts is importing oil to keep the lights on? Infrastructure buildout remains part of the solution to move gas to market. Unfortunately, Appalachia has seen its fair share of energy projects blocked. PennEast Pipeline, Constitution Pipeline, Northeast Supply Enhancement, and the Atlantic Coast Pipeline have been stalled, delayed or scrapped entirely due to radical environmental activism and extreme politics.

Poor policies impacting infrastructure harm more than just consumers; they harm the Pennsylvania royalty owners who receive significantly less than their counterparts across the country, because the natural gas produced from underneath their property can’t be moved efficiently to market.

Is relief forthcoming? President Trump recently signaled support for completing the Constitution Pipeline, which would transport natural gas from Pennsylvania to New England. “We are going to get this done, and once we start construction, we’re looking at anywhere from nine to 12 months, if you can believe it,” the President said. “It will bring down the energy prices in New York and in all of New England by 50, 60, 70%.” But these changes only work if state elected officials start to prioritize the interests of their constituents over the interests of the radical idealogues who oppose natural gas development. Barons reported this week that the CEO of Williams with due respect to the President, was clear there will be no renewed effort to build the Constitution pipeline until both governors of New York and Massachusetts endorse the project and the state offices facilitate construction.

This all reinforces comprehensive federal permit reform is necessary to encourage critical infrastructure growth, from pipelines to electric transmission lines. While past bipartisan efforts have fallen short, new Congressional action is underway, supported by our new Pennsylvania U.S. Senator Dave McCormick. Senator McCormick has also been named chairman of the Senate Energy committee. As Senator McCormick has opined, “the road to energy dominance goes through Pennsylvania.”

Returning to discernment. Quoting Andrew Carnegie,” As I grow older I pay less attention to what a persons says. I just watch what they do.

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