Shale gas is turning into a bonanza for West Virginia. It became viable economically because George Mitchell spent years developing ways to economically drill horizontal wells and frac them in order to release gas from tight shale formations. He is a pioneer that deserves the plaudits he is receiving.

Mike Shellenberger of the Breakthrough Institute has something to add to this history. As he notes in an article that was carried in the Washington Post, Mitchell benefited from substantial investment by the US government in the development of  horizontal drilling and fracturing shale, some of which research was done in Morgantown. The research was done during times that low prices for oil and gas would have discouraged private investment.

Giving the federal government credit where it is due takes nothing away from Mitchell, who was determined and tenacious. But the lesson of the shale gas revolution is that we should not be so quick to judge government investments in energy technology. Between 1978 and 2007, the Energy Department spent $24 billion on fossil energy research. Billions more were spent through the Gas Research Institute and non-conventional gas tax credits. Those investments were widely panned as a failure during the ’80s and early ’90s, when gas was plentiful and cheap.

Mike has a good point.  This is exactly the type of investment in research that the federal government should be making, whether for fossil fuels or alternative energy sources.  What it shouldn't do is pick winners in the marketplace, through tax credits, loan guarantees or other support for individual companies.  Solyndra is a good example of how that can turn out.

Report On Cumulative Effect Of Mountaintop Mining

A team from Duke University has reported on the cumulative effects of mountaintop mining on stream health in the latest Proceedings of the National Academy of Sciences. I haven't read it, but the  abstract is here, and stories from Ken Ward of the Gazette and Pam Kasey of  the State Journal are available.

West Virginia, Ecuador and the Legal System

Some West Virginians see the the state as one that was (and is) dominated by out-of-state coal, oil and gas and land  companies that manipulated the political and judicial process in order to take the state's treasures and leave it with little but environmental liabilities. Those who feel that way probably feel some kinship with the inhabitants of the Ecuadorian rain forest, who brought suit against Texaco, later purchased by Chevron, and won a multi-billion dollar judgment against the company for natural resource damages and personal injuries. The story was compelling - a large multinational was taking advantage of  the less sophisticated natives and destroying the land.  A documentary, Crude, was made about the lawsuit.

How much of that story is true, I couldn't tell you. But it was interesting to find out that the substance of the Ecuadorean lawsuit has been called into question.  Ann Meist, a member of Strauss Consulting and one of the experts who helped prepare the case for groundwater contamination against Chevron, is caught in a  film outtake in which the lead American lawyer, Steven Donziger, appears to be suggesting that a public outcry, rather than facts, are all that is needed to win the case in an Ecuadorian court. The clear impression I took away is that the contamination was not nearly as great as represented by Donziger and Meist in court.

Chevron has filed a RICO action against Donziger, Meist and others, alleging that they conspired to extort money from Chevron by means of a specious legal action in Ecuador, using ginned-up data and misrepresentations. It's an interesting read.

BP Statistical Review of World Energy 2011

BP has a fascinating  website that is called the Statistical Review of World Energy 2011.  It is full of information about energy usage, energy reserves, and all aspects of the industry, from renewables to fossil fuels. If you want to do research on energy sources there's a series of Excel spreadsheets that allow you to easily compare energy use by type, country, year, etc.

A Small Victory in the Battle Against Straight Pipes

Straight piping, or discharging sewage directly to a stream from a house or business, is a problem in rural West Virginia. In many of southern West Virginia's narrow hollows there is little space for a treatment system, and in any event there is often little money for building and maintaining the treatment plant. Here is one community in McDowell County, along Windmill Gap Creek, that managed to eliminate straight pipes with some innovative thinking and help from the Canaan Valley Institute.

The Interdependence of Coal, Electricity and Prosperity

Charles McElwee,one of the name partners of Robinson & McElwee and a consummate lawyer, has done an analysis of the relationship between coal, electricity and economic well-being. Among other things, he explains why renewable energy sources simply won't be sufficient to satisfy the growing need for power in the foreseeable future.  I have linked to the article here.  To get an idea of his position, the following is the preface to the article.

           

          Preface. The “renewable” energies of solar and wind are impractical  alternatives for generating within the next several years any significant percentage of the world’s, including the United States’, and West Virginia’s, demand for electricity.  To contend otherwise is promoting a myth.

Basic to the argument are (1) that all nations, particularly the developing ones, want their citizens to be increasingly prosperous; (2) that expanding prosperity is dependent on greater electricity consumption for there is a correlation between levels of prosperity and the use of electricity; and (3)  that presently and at least for the next twenty-five years, hydrocarbons are the only fuels that can generate electricity on the scale, at the cost, and with the dependability that the world, including the United States, will require.

Nationwide Permits and the Oil and Gas Industry

Staff from the US Army Corps of Engineers made a presentation to the West Virginia Oil & Natural Gas (WVONGA) Environmental Committee last week on the subject of the U.S. Army Corps of Engineers Regulatory Role in Oil and Gas Drilling Activities.   It was a very useful summary of the Corps' role in permitting stream crossings and all other oil and gas activities that occur in jurisdictional waters.

At the meeting we were given a nice compilation of the Nationwide Permits in West Virginia.  They set out the Nationwide Permits themselves, the permit-specific Regional Corps of Engineers  conditions, if any, and the permit-specific state 401 certification conditions, if any. In addition, there are the West Virginia 401 certification requirements that apply to all the nationwide permits.

For those wanting to learn more about nationwide permits, there is a reasonably good explanation in the February 16, 2011 Federal Register notice.  The nationwide permits expire in March of 2012, and the Corps already began soliciting comments on how they should be changed. In order to give time for commenting and for the Corps to prepare a response to comments, the Corps is expected to propose the new nationwide permits soon, perhaps this week.