Two New Energy Supplies

E-Mail to Congress:

There is excellent double news on the energy front!

You are already aware of the first one, but we have to get that into perspective. It involves the "oil spill" in the Gulf of Mexico. Up to now, we have been concentrating on the negative environmental impact. However, let's take a look at the more positive availability of oil, as we get the supply under control for our use.

We have a gusher 5000 feet below the surface of the Gulf. At that depth, the water pressure is 260 pounds per square inch. Since oil is pouring out of that pipe, the oil pressure is above 260 pounds per square inch. In comparison, air pressure at land surface is 14.7 pounds per square inch, and a gusher on land only needs to exceed that pressure. The pressure of the Gulf supply is in the neighborhood of 18 times that of an equivalent oil gusher on land. The pressure of an oil supply is not always related to its volume and the Gulf gusher could cease at any time. However, experience with land gushers has shown that there is usually significant volume. This indication is already confirmed in the Gulf gusher by the amount of oil lost in a relatively short time.

The second item, which has generally gone unnoticed, involves natural gas. It has been known for some time that there is a significant quantity of natural gas trapped in shale at many locations in the continental US. However, this natural gas source has previously been considered unattainable. Within the past few years, a number of companies have been developing a hydraulic fracturing technique. This technique basically involves pumping a liquid at high pressure into the shale deposit. This fractures the shale to release the natural gas. Sand is also injected to keep the fractured segments apart and maintain the gas flow.

With this new technique making shale natural gas available, it is estimated that we now have a 100-year supply of natural gas at current usage rates.

We also have very extensive coal deposits which are used as the workhorse in generating most of our electricity. However, an electricity generating plant based on coal requires a very substantial investment, with a longtime return on that investment. In spite of that, it is our cheapest source of electricity. Wind, solar, and natural gas turbines are unable to compete on a cost basis. The previous cost disadvantage of natural gas turbines has been the high-cost and supply variability of natural gas. With hydraulic fracturing, those deficiencies can be eliminated. In addition, the production of electricity by natural gas turbines has a significantly lower capital investment than a coal burning plant. Up to now, natural gas turbines have been used for quick add-on electrical supply. General Electric is a major producer of these gas turbines. The technology is already available and the company is likely able to significantly increase production capacity, now that the economics is changing.

Environmentalist groups have started to raise a ruckus about hydraulic fracturing, with the contention that the hydraulic fracturing fluids could contaminate local water supplies. This is obviously true, but reasonable preventive measures can be taken to avoid this difficulty. The first remedy is to avoid hydraulic fracturing in those areas where local water supplies are obtained from wells. The second remedy is to convert local water supplies to collection of surface water in reservoirs and avoid use of wells. For example, New York City draws its water supply from lakes in the Catskills. You also have noticed that this past spring has seen a preponderance of flooding in various sections of the US. We have had in the USA a continuing program of flood control, starting with the TVA many years ago. For some unknown reason, that program has been dropped and there has been no recent significant increase in flood control that I know of. Reinstituting such action to create lakes would have the dual purpose of flood control and local water supplies independent of wells. Consider also the availability of new construction jobs.

I encourage you in several ways to be involved in these programs. Do not pay attention to the specific requests of environmentalist groups, but concede that they have a legitimate general concern. Do not impose on hydraulic fracturing companies, through the EPA or any other agency, a multitude of restrictions which would make developing this natural gas supply impractical. Reinstitute a government program to further increase flood control through construction of dams, which will develop lakes for use in local water supply.