Climate and energy

Eight scientific organizations ask prez candidates to protect the economy by protecting climate (Reuters). “Eight scientific organizations urged the next U.S. president to help protect the country from climate change by pushing for increased funding for research and forecasting, saying about $2 trillion of U.S. economic output could be hurt by storms, floods and droughts.”

From the WSJ Environmental Capital blog – “Texas Breeze: Landowners Call Wind Turbines Ugly; Court Says Too Bad.” A Texas appeals court “dismissed a suit by landowners upset with a big wind farm built by FPL Energy. Landowners decried the turbines’ noise and their spoiled sunsets—which the court agreed was a pity—but the appeals court couldn’t find grounds to rule against the power company.”

American natural gas production skyrocketing due to new recovery technology (NYTimes).

American natural gas production is rising at a clip not seen in half a century, pushing down prices of the fuel and reversing conventional wisdom that domestic gas fields were in irreversible decline.

The new drilling boom uses advanced technology to release gas trapped in huge shale beds found throughout North America — gas long believed to be out of reach. Natural gas is the cleanest fossil fuel, releasing less of the emissions that cause global warming than coal or oil.

Rising production of natural gas has significant long-range implications for American consumers and businesses. A sustained increase in gas supplies over the next decade could slow the rise of utility bills, obviate the need to import gas and make energy-intensive industries more competitive.

While the recent production increase is indisputable, not everyone is convinced the additional supplies can last for decades…

… Domestic natural gas prices have already plunged 42 percent since early July, an even faster drop in price than oil or most other commodities, in part because the rapid supply growth has begun to influence the market. Price spikes remain possible, of course, but throughout the industry the shale discoveries are causing a shift in thinking about the long-term outlook…

… “Shale is the most significant domestic natural gas find in 50 years,” said Chris Ruppel, an analyst at the institutional brokerage firm Execution, “which means the United States will become gas independent, and more industrially competitive versus Europe for gas-intensive industries such as chemicals, fertilizer, smelting iron and aluminum.”..

… “We see natural gas as potentially a very important transitional fuel, but we can’t use it at the expense of our natural resources,” said Kate Sinding, a senior lawyer for the Natural Resources Defense Council, who warned that water-intensive drilling in shale could threaten local water supplies and aquifers…

… With the growth of power generation from natural gas, the Energy Department estimates that gas consumption will increase 3 percent this year and an additional 1.7 percent in 2009. But that is well below expected supply increases.

Such increases carry risks. Some in the gas industry fear that if prices fall too much, producers will pull back on their investments in drilling and development. “If prices drop much more,” said Mr. Johnson of Carrizo Oil and Gas, “producers will slow down or at least not be as aggressive.”