While nuclear power has never dominated the global energy market, it has been an integral power source for 31 countries around the globe, supplying power to millions from over 427 operational plants. In 2013, the energy source was in decline by seven percent, but is there still a future for nuclear? ICOSA Media talked with two innovative companies at CERAWeek working to make nuclear both safer and smaller.
CERAWeek Gives Insight into the Issues Facing Supply and Demand
On the heels of the recent spike in gas prices, energy professionals are descending on Houston for one of the largest energy shows, CERAWeek, hosted by IHS CERA. Oil and gas executives, economists and IHS CERA staff will be speaking to the abundance and diversity of our worldwide and domestic resources, the controversy surrounding current technology and the issues facing supply and demand.
The conference couldn’t be better timed as GOP nominees debate energy policy and the issues surrounding it, in hopes to unseat the incumbent president in November. It doesn’t help that the current nuclear threat coming from Iran has prompted international sanctions, which has raised gas prices in addition to the increasing energy demand in developing nations.
There is no doubt that America is one of the world's largest importers of oil but as demand in these growing nations continues, the conversation surrounding pricing and exploration will be greatly realized. Speakers this week will look at oil and gas exploration and development around the world in unchartered areas and the technology that will be needed to fulfill new production within those areas.
The real message this week will be how the oil and gas industry can forge a critical business path to develop the resources we have domestically but more importantly how they can be extracted from our own “backyards” in an environmentally conscious way.
The recent past has shown that environmental concerns hovering over the industry are very emotionally charged. In states like Pennsylvania and New York, citizens have rallied together supplying thousands of comments in an effort to impose new policies or keep past moratoriums in place over air and water concerns.
“Regulatory agencies are moving forward at an impressive pace,” said Maryam Brown, Chief Counsel, Subcommittee on Energy and Power, House Energy and Commerce Committee. This same committee believes that regulatory reform will be central to the United States energy debate in the upcoming election year.
Companies as well are entrenched in the energy debate and the growing concerns for increased environmental performance as well as health and safety that have become part and parcel to doing business. “It has to be a core competency just as much as 3D seismic,” said Mark Brownstein, Deputy Director, Energy Program, Environmental Defense Fund.
Evidenced by speakers across all panels was the lack of understanding they believe the public has. The hardest part for the industry will be to educate the public and help them understand the distinct and contrasting differences that development plays across shales and the diversity of various regulations that are being proposed and imposed.
While some shale’s require technologically intensive extraction techniques others are less complicated, less deep and are composed of softer rock elements. “Citizens should know that casing is dependent on geological conditions state-by-state,” said Stanford University Geophysics Professor, Mark Zoback. He stressed that while regulations might be good for one state, it might not be for another. The statement seemed like such an obvious remark to the group, the mere reminder however served to underscore the lack of knowledge the public has on the topic.
The conference is poised to show that there is an obvious effort to move the industry forward in an ever-growing effort to meet demand. There is also an obvious attempt by opposition to halt that momentum. Both domestic and worldwide supply is growing, but the complexity of doing business in the United States could prove to shape the industry either for us or against us.
World demand is growing whether we are on board or not. That same demand will continue to drive the current $125 per barrel pricing and that is if we are producing at home or not. We may want to be less dependent on oil, but the world, especially in growing economies is not. The question this conference will ask is, are we ready to become sustainable with our resources or without them? And if we choose to harness the energy we have, how can the energy industry and the public do so in a way where conservation is king and we let businesses operate within reason.
Oil and Gas Development: Transparency and Community Engagement
The oil and gas industry’s rich and colorful history continues to serve as a reminder of the luxuries we now have access to because of energy. It is a show of our accomplishments and the progress that has been made because of production. Without it, the current backdrop of the American lifestyle and those of many other large cities and cultures in countries across the world would not be possible. [youtube width="560" height="315" video_id="aQEhvU1bEmY"]
Energy is a necessity. It affords everyday citizens access to thousands of products, delivers vital electricity and is pertinent to producing heavy metals that support manufacturing and resource production around the world. The latest advancements in energy have focused on increasing production, creating energy efficiency, new technological developments like hydraulic fracturing, conservation and environmental stewardship.
These advancements, specifically hydraulic fracturing, have led to the oil and gas industry being able to quickly develop the vast reserves that are available, providing Americans access to cheap fuel. Simultaneously this development has given America a glimpse into what true energy independence and security could really look like. With these advancements also comes concern. Currently there is a low hum amongst stakeholders sharing concerns and uncertainty about domestic oil and gas development. “Trust in the government and with companies has eroded, and is at our feet while we’re trying to develop these resources,” said Doug Bannerman, Head of Social Responsibility for Statoil.
As exploration, production and development have ramped up across the industry, communities large and small are now feeling very effected by oil and gas companies coming into their cities and towns. For decades, most people didn’t care where their energy or products came from, but within the last 10 years citizens are becoming increasingly involved, petitioning for moratoriums, bans, new regulations and policies that directly effect the industries ability to maximize energy development.
“The oil and gas industry is frequently defined by the lowest common denominator,” said Tanuj “TJ” Deora, Director, IHS Energy and Environmental Initiatives. Most of the arguments against development are polarized, laden with emotion and are amongst the fringe. These fringe groups are expanding everyday and are using one-sided arguments rooted in fear to spread their message. This side, no matter what proof is given has closed the door to arguments that don’t fit their narrative. Their conversations are entrenched in absolutes. The narrative doesn’t have any room for educational or constructive dialogue because their space that won’t expand to hear the other side.
This type of opposition has become an increasing focus for concern, not just to oil and gas companies across the nation, but to leaders, communities, and individuals who see the benefits that oil and gas development has brought to counties like Bradford in Pennsylvania or Weld in Colorado but also to states like Ohio and North Dakota. Unfortunately those driving the fear-based conversation are not concerned with economic stats and figures, their perceived costs of doing business are air and water.
It’s been said that “whiskey is for drinking and water is for fighting over” and an increasing amount of this opposition see only this window of the conversation. But the conversation shouldn’t have to be between environmental quality and job creation. Citizens shouldn’t have to choose, but they should choose to be educated about each facet of development that could effect them.
“Our future energy supplies rely upon hard decisions,” said John Hofmeister, Former President of Shell Oil Company, and many leaders agree. In most conversations I’ve been a part of, leaders within the energy industry and in organizations like the Nature Conservancy believe that education and cooperation are the key to our energy future. “The public often doesn’t realize that we are all interdependent on oil and gas resources,” said Tisha Conoly Schuller, President and CEO of the Colorado Oil and Gas Association, “so everything from heating our homes to our personal transportation; all of commerce, all of the food how it gets to our communities and how water gets to our homes is all part of oil and gas development.”
Most of the concern has centered on hydraulic fracturing. However, hydraulic fracturing isn’t new, in fact the completion technique has been used since 1947. It has only been since new technological advancements made in the late 90s that hydraulic fracturing has really amplified the amount of recoverable hydrocarbons that can be extracted from a single well. While the industry sees this as a necessary and critical advancement, just the moniker “fracking” lends to a negative connotation to those who are not in the industry.
With close to 115 million households all relying on power, food and fuel for their daily lives, it is important that citizens and producers are all transparent and working to become educated and more informed. If people within the oil and gas industry aren’t going to put the facts out there, someone will. The opposition will feed on the perceived lack of transparency, accountability and respect and then who will keep these people honest? It seems now that the accountability of the opposition is with the oil and gas industry, leaving its fate in its own hands. So the question becomes, what will the industry do to move forward and engage not just communities but the country as a whole?