Energy
Texas Legislative Committee Proposes Ways to Protect, Expand LNG Industry
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From Heartland Daily News
By Bethany Blankley
“the Biden Administration’s federal permitting pause during a presidential election year appears to be purely political in nature and an attempt to disrupt Texas’ booming economy, now the eighth largest economy in the world…. it is abundantly clear American LNG is in the best interest of the Texas economy, local communities, our national security, and global energy security.”
A state legislative committee is proposing ways to expand Texas’ liquified natural gas (LNG) industry after the Biden administration announced it was pausing pending applications for LNG exports that would significantly impact Texas.
The Texas House Select Committee on Protecting Texas LNG Exports issued its findings after holding a hearing on the topic earlier this month. Led by state Rep. Jared Patterson, R-Frisco, the report states, “the Biden Administration’s federal permitting pause during a presidential election year appears to be purely political in nature and an attempt to disrupt Texas’ booming economy, now the eighth largest economy in the world.
“It has caused long-term uncertainty for both investors and allied nations around the world relying on American energy, particularly in Europe as they seek to wean themselves off Russian natural gas. After multiple studies across Democratic and Republican presidential administrations, it is abundantly clear American LNG is in the best interest of the Texas economy, local communities, our national security, and global energy security.”
House Speaker Dade Phelan, R-Beaumont, created the select committee and charged it with evaluating the impact on the Texas LNG industry and to propose actions the state legislature could take in the next legislative session to protect it.
Phelan’s district is critical to the oil and natural gas industry. It encompasses a region known as the “Golden Triangle,” rich in oil and natural gas production, processing, refining and exports in the southeast towns of Beaumont, Port Arthur and Orange. It includes a key LNG export terminal currently under construction in Port Arthur, where several LNG facilities are also located.
The LNG terminal, once completed and operational, is expected to have an export capacity of 13 million tons a year. With access to the Gulf of Mexico through the Sabine-Neches ship channel, it represents a $13 billion investment in new energy infrastructure, the report states.
The U.S. leads the world in LNG exports, led by the Gulf states of Texas and Louisiana. In 2017, the U.S. became a net exporter of natural gas for the first time since 1957, “primarily because of increased LNG exports,” according to the EIA. The U.S. became a net exporter after Cheniere Energy was the first to export domestically sourced LNG from the Sabine Pass LNG Terminal in Cameron Parish, Louisiana, and from the Port of Corpus Christi in Texas, The Center Square first reported.
Nearly 25% of U.S. natural gas reserves are located in Texas and 30% of the largest hundred natural gas fields in the U.S. are in Texas, the legislative report notes, citing state data. It also identifies six LNG facilities nationwide that would be impacted by the ban, including two in Texas, in Port Arthur and Corpus Christi.
Texas ports, including Port Arthur and Corpus Christi, are among the top ports in the U.S. leading in foreign trade impact, and the Port of Corpus Christi continues to break records in tonnage, primarily due to oil and LNG exports, The Center Square reported.
Texas Oil & Gas Association Chief Economist Dean Foreman, who testified before the committee, said, “Texas and Louisiana bear the brunt of short-sighted federal policies that jeopardize LNG export projects, representing potential investments of $200 billion across the value chain, including a projected 20% increase in Texas’ dry natural gas production.
“The reasons given for this pause – concerns about higher domestic natural gas prices, emissions, and community impacts – are clearly unfounded. U.S. LNG exports have responded to global demand, driving domestic innovation that enhances productivity and reduces consumer costs. LNG has replaced coal in power generation, emerging as a primary driver of emission reductions, and have catalyzed economic growth across the Gulf Coast. On all accounts, U.S. LNG exports have proven to be decisively beneficial.”
Two key claims the administration made for implementing the ban (LNG exports increase domestic energy costs and increase methane emissions) have been refuted, The Center Square first reported. A bipartisan coalition of Texas’ congressional delegation called on the president “to refocus on policies that support US LNG,” understanding that Texas is the energy capital of the United States, The Center Square reported. Sixteen states, led by Louisiana and Texas, also sued, arguing the ban is illegal.
The committee recommended that the legislature “consider legislation and policies authorizing the governor to develop and execute an interstate compact with the goal of sharing state information, resources, and services with other interested states seeking to protect and grow the LNG industry along the Gulf Coast.”
It also recommends that the legislature propose legislation and policies to permit temporary eligibility of LNG facility construction grants and loans when federal permitting pauses occur; provide economic incentives for LNG facilities to counter market consequences of a federal permitting pause; reform specific permitting regulations and increase overall permitting process efficiency; expand funding for project construction and development through the Texas Department of Transportation’s Maritime Infrastructure Program; increase workforce grants made available through local colleges to meet workforce demands for construction and facility operations; and mandate that official reports be published every year providing data on the “relevance and importance of the LNG industry regarding the public interest.”
Bethany Blankley is a contributor at The Center Square.
Originally published by The Center Square. Republished with permission.
Alberta
New children’s book demonstrates how the everyday world is connected to natural resources
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From the Canadian Energy Centre
‘Today’s youth have the opportunity to lead us into the future with innovative solutions for environmental challenges’
After a 24-year career in oil sands land reclamation, author Tanya Richens is sharing her knowledge with young minds.
Her new book, From the Earth to Us: Discovering the Origins of Everyday Things, explores the relationship between natural resources and the things we use in everyday life, from computers and water bottles to batteries and solar panels.
“There is a gap in society’s understanding of where things come from. We are a society driven by consumerism and immediate gratification. We order something online, and it arrives on our doorstep the next day. We don’t stop to think about where it really came from or how it was made,” Richens says.
“There’s an ever-increasing societal position that mining is bad, and oil is even worse… But there’s a simple hypocrisy in those beliefs, since so many things in our lives are made from the raw materials that come from mining and oil and natural gas,” she says.
The book, illustrated by reclamation artist Shannon Carla King, follows young Hennessy Rose and her Cavalier King Charles Spaniel Riley on a trip to a children’s summer camp.
Hennessy’s mom is a guest speaker on the origin of everyday items and the relationship between humans and the earth. Through detailed explanations of items surrounding her, Hennessy’s mom teaches the kids how rocks, minerals, oil and gas from the earth are used to power and aid our lives, creating items such as building supplies, food and hair products, camping and sports equipment, and cell phones.
Author Tanya Richens poses with her two books for children about natural resources. Photo for Canadian Energy Centre
“I thought a simple and fun book explaining the raw materials needed to make everyday items would be valuable for all ages,” Richens says.
“When people feel personally connected to natural resources, they are more likely to promote sustainable practices. Today’s youth will have the opportunity to lead us into the future with innovative solutions for environmental challenges.”
Richens‘ career began with Alberta Environment, where she was a coordinator of reclamation approvals in the oil sands. She oversaw technical reviews of oil sands reclamation applications, communicated with statement of concern filers, coordinated public hearings and provided support for legislative changes.
She moved from government to Suncor Energy, ensuring the company’s compliance on reclamation projects and led initiatives to obtain reclamation certificates. She now works as an independent consultant.
Drawing on her wealth of experience in the field, Richens’ first book, Adventures in Land Reclamation: Exploring Jobs for a Greener Future, seeks to excite kids aged 9-12 years about jobs related to the environment and land reclamation.
Hoping to get From the Earth to Us into the hands of teachers, Richens is heading to the Edmonton Teachers Convention in late February. She says the book supports multiple learning outcomes in Alberta’s new science curriculum for grades 3, 4, 5 and 6.
“Ultimately, I’d like people to understand and acknowledge their individual part in the need for mining and oil and natural gas development. Until the naivety and hypocrisy in the world is addressed, I’m not sure that real environmental change is possible.”
Richens’ books can be purchased on her website at tcrenvironmental.com.
Energy
Federal Government Suddenly Reverses on Critical Minerals – Over Three Years Too Late – MP Greg McLean
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From Energy Now
By Calgary MP Greg McLean
Government in Full Reverse
Canada-U.S. Trade Relations is obviously the most pressing issue facing Canadians today.
It’s important to remember how we arrived at this point, but also to question the sincerity of the Liberal Ministers and leadership contenders who are now posing solutions, such as:
- We need to diversify our resource trade
- We need to build pipelines and infrastructure to get our exports to tidewater
- We need to streamline our regulatory burden that stands in the way of development
- We need to halt the escalating carbon tax
- We need to reverse the capital gains tax increase
The Liberals are turning themselves inside out on the policy choices they have made over nine years, and put Canada in a precarious economic position vis-à-vis our trade position.
If you believe what they are saying now, these Liberal Ministers and leadership contenders are saying that Canada needs EXACTLY THE OPPOSITE of what they have delivered over these past nine years.
I can’t comment on whether these NEW Liberal policy positions completely lack sincerity, or whether they are the result of a ‘deathbed conversion’, but nine years of moving in the exact opposite direction to their new words has led Canada to where it is today – and that is nine lost years for Canadians, our prosperity, and our role in a complex world.
Below is another example of a specific morphing of a Liberal policy – to the one I helped put forth – 3 ½ years ago – regarding Canada’s policy on critical minerals.
Minister Late to Critical Mineral Strategy
Here’s a gem of wisdom from December’s Fall Economic Statement:
Canada will work with the United States and other likeminded partners to address the impacts of non-market policies and practices that unduly distort critical mineral prices. This includes ensuring that market participants recognize the value of critical minerals produced responsibly, with due regard for high environmental standards and labour practices.
Then, on January 16th, the following from Canada’s Natural Resource Minister, Jonathan Wilkinson:
During a panel discussion in Washington on Wednesday, Natural Resources Minister Jonathan Wilkinson proposed that enforcing a floor on metals prices could be “one of the centerpieces of the conversations we would then be having at the G7” summit later this year.
Western nations have long warned that China’s dominance in everything from nickel to lithium has let the country’s producers flood the market with supply, thereby keeping prices artificially low for competitors. Wilkinson has touted price floors as a way to combat that market control.
What a great idea!
Here’s the relevant excerpt from June, 2021, from a dissenting report on the Natural Resources Committee, when I served as my party’s critic, in contrast to the government’s critical minerals approach at that time:
Recommendation 4: Coordinate with our allies to establish a dedicated supply stock of critical minerals, possibly through a physical storage and floor pricing mechanism for visibility and pricing purposes.
Excerpt: Canada is too small of a market to undertake this effort on its own, but it can play a key role with its longstanding leadership as the mining jurisdiction of choice in the world. Canada’s pre-eminent role as a financing jurisdiction for international mining is well understood. Although we are at the early stages of losing this historical leadership to Australia, acting quickly to solidify Canada’s leadership will be a strong signal. Australia and Europe have already established critical mineral strategies to offset the dominance of the market that China has exerted. At the very least, Canada’s coordination needs to include the United States, and probably Mexico (through CUSMA), as the ongoing funding of a critical mineral supply may require backstopping developments with a price amelioration mechanism. In essence, a floor price to ensure the protection of critical mineral developments from manipulating price volatility – and which has held back developments, or caused the insolvency of several of these developments, due to non-transparent world market pricing mechanisms. … Establishing a steady supply of these critical minerals will lead to more value-added opportunities, in conjunction with our trade partners.
Conservative Dissenting Recommendations
My question to the Minister: ‘What took you so long?’
This approach was presented three and a half years ago – and the Government chose to ignore it then.
No surprise now, perhaps, as we’ve seen this Minister flip-flop on so many of the nonsense policies he’s put forth or acquiesced in at Cabinet:
- The Clean Electricity Regulations (still opaque)
- Canada’ role in shipping hydrocarbons to the world
- Building energy infrastructure
To say nothing of the various Cabinet decisions he has been a part of that have led to Canada’s current weak negotiating position with our allies. We effectively have not had a Minister of Natural Resources under his tenure.
Nothing topped it off more succinctly than his speech at the World Petroleum Show, held in Calgary in September 2023, when his remarks on behalf of the Government of Canada left industry participants around the world questioning whether the Minister was ‘tone-deaf’ or if, in fact, he knew anything about natural resources.
It seems his move to the position I promoted – three and a half years ago – shows that he’s finally listening and learning (or un-learning his previous narratives, perhaps)– but it’s quite late in the day. Time and our future have been wasted.
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