Managing the Conflict Between “Going Green” and Preventing Disastrous Energy Shortages
July 19, 2022
Article by Jeffrey Price
The war in Ukraine has prompted a re-think by the Biden Administration towards fossil fuel extraction. President Biden even went to Saudi Arabia with hat-in-hand asking for increased production. There is lip service given to easing the red tape inhibiting a faster ramp-up in U.S.-based oil & gas production and transportation. In fact, if the U.S. is going to make a meaningful impact to offset the decline in supply from the USSR (oops! I meant to say “Russia”), then the path must be smoothed for the Permian and other important oil fields to ramp up production as well as midstream capacity to move the increased production to ports. That is strategically important!
Wait a minute! What about the transition to green energy!? Well, the respected Economist weighed in on the answer to that question with an excellent lead editorial on June 24, 2022. Here is a salient excerpt:
One priority is finding a way to ramp up fossil-fuel projects, especially relatively clean natural gas, that have an artificially truncated lifespan of 15-20 years so as to align them with the goal of dramatically cutting emissions by 2050. The trick is to get business to back schemes designed to be short-lived. One option is for governments and energy grids to offer guaranteed contracts over this period that provide an adequate return on the understanding that capacity will be shut down early. Another is to pledge eventual state support to make these projects cleaner, for example through carbon capture and storage.
These inducements, along with others, accomplish both aims – indeed, regardless of the war, there need to be mechanisms put in place to keep energy flowing while the green energy ramps up.
First Keystone continues to be part of the solution by building new infrastructure – such as industrial buildings for lease – that is supporting companies that enable the development of strategically important natural gas in Reeves County (Texas’ #1 for NG production).
The opinions expressed above reflect only those of the author and do not represent those of the First Keystone Pecos Industrial Park organization. First Keystone welcomes responsible fact-based discourses on these topics.