American Gas - December 2012/January 2013 - (Page 14)

election coverage What Now? Energy analysts weigh in on the outlook for natural gas in the second Obama administration I n the months leading up to the November 6 election, American Gas took a close look at each of the presidential candidates,to try to discern where each would lead on natural gas issues. Now that the country has picked a president, the way forward has gotten clearer, and—especially with a divided Congress—it’s evident that it’s going to have to be a bipartisan path. To find out how that might work—and what the key issues would be—we sought out the opinions of energy experts on each side of the aisle: one a Republican, one a Democrat, but both in the business of giving objective advice to their clients. Here’s what they had to say about where they think we’re headed on some of the biggest issues facing the natural gas industry today, and how the industry can have an impact on the outcome of these issues. Hydraulic Fracturing The big open question with regard to hydraulic fracturing regulation is whether the Obama administration will retain the pro-natural gas posture it took during the campaign, or if it will shift to the left in its second term, says Robert McNally, who served as the top international and domestic energy adviser under President George W. Bush. But John Hanger, who was Pennsylvania’s Secretary of Environmental Protection under Gov. Ed Rendell, says fears of a second-term flip are unfounded, and anti-EPA rhetoric will only hurt the cause of natural gas. “The president did one really important thing during his first term for natural gas: by and large he stayed out of the way,” says Hanger, now special counsel at the law firm Eckert Seamans. “For that alone he should be applauded.” Hanger, a hydraulic fracturing proponent, says he knows of only three instances in which the EPA stepped in on a local dispute involving hydraulic fracturing. And he believes only one —in Texas—represented a case of government overreach. McNally says EPA actions over the next couple months should reveal the administration’s second-term stance. Expected imminently is an interim report from the agency’s multiyear study on hydraulic fracturing. “We’ll be looking closely at that for any nuances or suggestions that the agency has come to any conclusions about gaps in state regulations or threats to the water supply,” says McNally. Also on his radar screen: a final report from the EPA on its investigation into possible water contamination at a hyrdraulic fracturing site in Wyoming and a final decision from the EPA on whether it will adopt a broad definition of “diesel fuel,” which would expand its authority to regulate hydraulic fracturing under the Safe Drinking Water Act. “I’ll think we’ll soon have a sense of whether the EPA has fracking right in its crosshairs, or if the administration really is taking an ‘all of the above’ approach,” McNally says. natural Gas Vehicles On the demand side, Hanger says the Obama administration showed its support for natural gas vehicles (NGVs) by including incentives for makers of natural gas vehicles in its recently issued Corporate Average Fuel Economy standards. And, he sees renewed hope for passage of the Natural Gas Act, or Pickens Plan— which includes tax credits for manufacturers of NGVs—and was supported by President Obama. Jennifer Pilla Taylor is a freelance writer based in Charlotte, n.C. 14 AmericAn GAs december 2012/january 2013

Table of Contents for the Digital Edition of American Gas - December 2012/January 2013

American Gas - December 2012/January 2013
Contents
President’s Message
Industry News
Election 2012
Safety First
To Be the Best
Ron Jibson: The Trust Factor
Home on the Range
Places to Be
Jobline
Advertisers Index
Noteworthies
Marketplace
Facts on Gas

American Gas - December 2012/January 2013