DENVER – Energy companies in Southwest Colorado say hydraulic fracturing and looming carbon-pollution regulations are responsible for natural gas overtaking coal for the first time.
The Energy Information Administration’s monthly report for April revealed this week that natural gas surpassed coal as the primary source of electrical power generation in the United States.
The monumental moment marks the first time ever that natural gas has powered more electrical generation than coal.
While environmental interests caution against assuming that natural gas is much cleaner than coal – especially considering concerns about leakage – gas producers hail the news as an example of the nation’s domestic energy prowess as a result of advances in technology, including fracking and horizontal drilling.
Gas producers point out that new technologies have allowed companies to unlock abundant supplies, which is the biggest factor accounting for the shift.
“As a result of the growing role played by natural gas in generating electricity, our air is getting cleaner, and the country has lowered greenhouse-gas emissions to levels not seen in two decades,” Ken Cohen, vice president of public and government affairs for Exxon Mobil Corp., wrote in a recent blog. XTO Energy, a subsidiary of Exxon Mobil, has operations in Southwest Colorado.
“Our abundant supplies of natural gas are positioning the U.S. to be able to export natural gas – quite a turnaround from recent plans to boost imports,” Cohen said.
Natural gas created 92,516 megawatt hours of electrical power in April, while coal was responsible for 88,835 megawatt hours of electricity. Just a month ago, coal generated 9,753 MWh more than coal, with 108,642 MWh of power generation, while natural gas created 98,889 MWh of electricity.
Natural gas made up 31 percent of total generation in April, up from 22 percent in April 2010. Electrical generation from coal has steadily declined, falling to 30 percent from 44 percent in the same time.
Much has to do with federal and state regulations. The Environmental Protection Agency, pushed by President Barack Obama, is preparing a final rule addressing carbon pollution, which aims for a 30 percent reduction in carbon-dioxide emissions nationwide by 2030.
The proposal is state-based, setting separate goals based on each state’s abilities. Colorado is considered well-prepared, and a target of 35 percent has been proposed. Coal production is expected to continue to decline, especially in the West, as a result of the looming mandates.
Christi Zeller, executive director of the La Plata County Energy Council, called the transition a “stunning and dramatic” difference. She said 2015 will be the cleanest year in more than 60 years, while power generation emissions will fall 15 percent below 2005 levels.
“The bottom line is that as power plants continue to use more and more natural gas, carbon emissions will continue to fall, and this is because of clean-burning natural gas,” Zeller said.
The report is good news for the San Juan Basin, Zeller said, because Carlifornia is the primary market for natural-gas sales. It is also good news for La Plata County government, because it benefits from tax revenue. Operators in the county are responsible for producing 75 percent of the state’s coalbed methane natural gas.
Stuart Sanderson, president of the Colorado Mining Association, said it is clear that government intervention has handicapped the industry. He said that if normal market forces were at play, coal would still be the dominant player.
“Keep in mind that this is not the result of natural market forces. Coal is still by far the most affordable source of electricity generation,” Sanderson said. “We have reduced emissions substantially in the last 30 years.”
Mercury regulation is one example the coal industry likes to point to. The U.S. Supreme Court just recently ruled that the EPA failed to consider costs when implementing mercury-emission regulations, blocking federal efforts to limit emissions from power plants.
“There’s no question that it’s government intervention in energy markets that is primarily to blame for the decline in coal’s share of electricity generation,” Sanderson said.
La Plata County Commissioner Gwen Lachelt, a Democrat and former co-chairwoman of a task force that studied oil and gas regulations, worries about becoming too confident in natural gas. Concerns about leakage from natural-gas operations has recently intensified, with special attention placed on methane. The Four Corners is home to the largest concentration of methane in the nation. Researchers are investigating why, and gas operations are being considered as one of the factors.
“While natural gas burns cleaner than coal, the total fuel-cycle emissions of natural gas have an impact on the climate that rivals coal,” said Lachelt, who founded Earthworks’ Oil & Gas Accountability Project in 1999. “It’s incumbent upon natural-gas operators and regulatory agencies to reduce natural-gas emission and leaks.”
pmarcus@durangoherald.com
