Академический Документы
Профессиональный Документы
Культура Документы
2. Alternative energy incentives decrease the demand for natural gas and increase
flaring.
Gerner et al 4 (Franz Gerner, Bent Svensson, and Sascha Djumena Franz Gerner is an energy specialist,Bent Svensson program
manager, ad Sascha Djumena a senior energy specialist, with the World Bank Group’s Oil and Gas Policy Division, Gas Flaring and Venting,
Public Policy for the Private Sector, “A Regulatory Framework and Incentives for Gas Utilization,” October 2004,
http://rru.worldbank.org/Documents/279-Gerner-Svensson-Djumena.pdf)
Where operators have the right to sell associated gas, they will decide in favor of that
option rather than flaring or venting only if they have access to domestic or
international energy markets and if energy prices are favorable. Many developing countries lack
both a domestic gas market and the infrastructure (liquefied natural gas facilities, export-oriented pipelines) for selling associated gas in
international markets. Moreover, domestic sales are often hindered by distorted energy pric-ing, monopolistic behavior by vertically
inte-grated state-owned utilities, and lack of a transparent legal and regulatory framework allow-ing third parties to build and own a
network for selling gas to industries and power generators. In many developing countries the relatively low financial returns developers
can expect from investing in the construction of a gas net-work have undermined the prospects for devel-oping a gas market. Part of the
subsidies for competing energy sources (oil, coal, nuclear, hydropower), which lead
problem is often
to low prices for competing fuels. But in many oil-producing countries the per-ceived value of associated gas has
changed with the rise in international natural gas prices since the early 1970s and as economic and budgetary pressures have led
Higher gas prices have encouraged many governments and
governments to abolish energy subsidies.
companies to develop gas infrastructure, eventually providing opportunities to market associated gas
domestically or interna-tionally.
EOS 7 (Weekly newspaper published by the American Geophysical Union, Vol 88., No 37, 359, “Satellite study of natural gas flaring,”
September 11, http://www.agu.org/pubs/crossref/2007/2007EO370003.shtml)
Global flaring of natural gas remained largely stable from 1995 through 2006,
according to the first globally consistent survey of gas flaring, conducted using low-light
imaging data from the U.S. Air Force Defense Meteorological Satellite Program.
Flaring is a widespread method of disposing of natural gas when oil production and
processing occurs in remote areas or in areas that lack infrastructure to make use of the
gas.
Gonzaga Debate Institute 2008 4
Scholars Natural Gas DA
Flat Prices= Flat Production
OPB News July 15, 2008 (Natural Gas Prices Expected To Skyrocket This Winter, http://news.opb.org/article/2600-natural-gas-
prices-expected-skyrocket-winter/)
Dan Kirschner is director of the industry group Northwest Gas Association, which represents utilities in Oregon, Washington, and Idaho.
Dan Kirschner: “Natural
gas costs have tripled over the last seven years, and rising global
demand for natural gas as well as regional demand will only intensify this trend.”
The Northwest imports nearly all of its natural gas from either Canada or the Rocky Mountain states.
The utilities say they’ll be stepping up efforts to promote energy-efficient home improvements in advance of the rate hike.
Inside F.E.R.C. 8 (Guide to gas pipeline regulation and the agency's role in reshaping the electric utility industry, “
Analyst says US gas storage will not be full by end of summer without more imports,” May 12, Lexis)
If imports of liquefied natural gas stay at record-low levels, the nation's storage
inventories are unlikely to fill by the end of the summer cooling season, Goldman Sachs
said last week. Domestic gas demand has strengthened even as LNG imports have
hovered below 1 Bcf/d, the investment bank said in a report.
Inside F.E.R.C. 8 (Guide to gas pipeline regulation and the agency's role in reshaping the electric utility industry, “
Analyst says US gas storage will not be full by end of summer without more imports,” May 12, Lexis)
Helping to mitigate some of the supply/demand crunch created by the lack of LNG
receipts is an "impressive" increase in domestic gas output, it said. "Even though we
remain skeptical of such high levels for US domestic production, the overall growth
trend seems stronger than we had anticipated," Goldman Sachs said. It therefore raised its
March-December 2008 US natural gas production outlook by 300,000 Mcf/d to 54.4 Bcf/d,
a 1.6 Bcf/d increase from 2007 levels.
Gonzaga Debate Institute 2008 6
Scholars Natural Gas DA
UQ- Demand High
Greenwire 8 ( July 2, Oil and Gas: LNG Prices could soon catch up with crude--- energy ministers,” Lexis)
Natural gas, which is currently trading at about a 40 percent discount to oil, may reach the
record-high prices of crude as demand for the cleaner-burning fuel increases, the energy
ministers from Qatar, Algeria and Iran said.
Natural gas in Britain sells for £0.7135 per therm, or the equivalent of $85 per barrel based on
energy content. Brent crude, by comparison, traded at $141 today. Natural gas prices in the
United Kingdom rose 38 percent this year, lagging behind the 50 percent advance in oil.
But natural gas use increased this year by 3.1 percent. Oil increased only 1.1 percent,
according to BP PLC data.
Oilgram News 8 (May 14, “Qatar says unable to meet new natural gas demand,” Lexis)
Qatar cannot meet any further demand for its natural gas?from either domestic or
international buyers?until a moratorium on further North field developments is lifted,
Qatari Oil Minister Abdullah al-Attiyah was quoted as saying May 13.
"We have demands for extra gas supplies from consumers around the world [but] we
cannot meet their demand due to the moratorium on additional North Field gas extraction,"
the Gulf Times newspaper quoted Attiyah as saying. "Even our own projects have been
asked not to seek extra gas until the North Field moratorium is lifted," he said.
Gonzaga Debate Institute 2008 7
Scholars Natural Gas DA
UQ- Demand stay High
Natural gas demand will continue to grow through 2025.
American Petroleum Institute 8 (May 16, Meeting Future Natural Gas Demand,
http://www.naturalgasfacts.org/factsheets/meeting_demand.html)
The U.S. Energy Information Administration (EIA) projects that consumption of
natural gas will increase by more than one-third between now and 2025. Demand will
grow because natural gas is a versatile, clean and, historically, economical fuel. It heats and
cools homes, provides fuel for cooking, generates electricity (with lower emissions than
any other fossil fuel), and serves as the raw material for petrochemicals used to make
everything from contact lenses to fertilizers.
Targeted News Service 8 ( June 10, “Rising Natural Gas Prices And Lower Hydroelectric Power Supplies Expected To
Increase Electricity Costs,” Lexis)
Starting in October 2008, these factors are expected to increase electricity costs to PG&E
customers by approximately $482 million, resulting in a roughly 4.5 percent rate increase,
to be collected over a 15 month period through December 2009. In 2009, high demand
for natural gas - one of the cleanest fossil fuels available to generate electricity - is
expected to continue upward pressures on the price of natural gas and in turn lead to
further increases in customer electricity rates. As a result, electricity costs in 2009 are
anticipated to increase by approximately $340 million. This will result in a less than 2
percent increase over the rates projected to be in effect this October.
Targeted News Service 8 ( June 10, “Rising Natural Gas Prices And Lower Hydroelectric Power Supplies Expected To
Increase Electricity Costs,” Lexis)
In 2008, natural gas prices have increased by 30 percent and are forecasted to remain
high in 2009. Soaring natural gas prices are caused by a tight supply-demand balance
in the national market, lower imports of liquefied natural gas, and the rising cost of crude
oil. Because much of the nation's electric supply is generated by plants using natural gas,
increased gas costs are also affecting electric prices.
Gonzaga Debate Institute 2008 8
Scholars Natural Gas DA
A2: Consumer Demand Down
Industry demand has been more than offset weakened consumer consumption.
Inside F.E.R.C. 8 (Guide to gas pipeline regulation and the agency's role in reshaping the electric utility industry, “
Analyst says US gas storage will not be full by end of summer without more imports,” May 12, Lexis)
On the demand side, lower-than-expected consumption by residential and power-
generation customers has been more than offset in recent months by higher industrial
demand, the report said. In addition, demand for gas in Mexico continues to be strong,
prompting Goldman Sachs to raise its March-December pipeline export forecast by
200,000 Mcf/d.
Gonzaga Debate Institute 2008 9
Scholars Natural Gas DA
Link- Alternative Energy Trades-off
Gas Market Report 8 (April 4, Inside F.E.R.C.'s, “Gas-fired generation needs may decline this year following
hefty 2007 demand,” Lexis/
"If 2008 hydro generation simply equals 2006 levels, hydro power would displace the
equivalent of 1.2 Bcf/d of natural gas demand versus 2007 levels," he said, adding that
decreased nuclear capacity should shave off about 200,000 Mcf/d of that displaced gas on
a nationwide level.
Composites World, 8 (June 30, “Market Trends: Alternative energy growth creating secular demand for composites,”
http://www.compositesworld.com/columns/market-trends-alternative-energy-growth-creating-secular-demand-for-composites.aspx)
Alternative energy sources, such as solar, wind, and geothermal, are finally emerging as
contenders alongside our primary electric-power-producing fossil fuels, natural gas and
coal (but not oil), primarily because these technologies are ready for widespread
distribution and adoption, based on average pricing for electricity. To help these alternatives
compete in the growing energy marketplace, governments in some areas of the world, at least, are offering significant incentives that
make investments in alternative energy attractive. Germany and Japan, for example, have funded developmental programs in solar
energy that have been largely successful. China, simply based on need, is bankrolling various government investments in alternative
energy, as are Italy and Spain. In the U.S., the growth of alternative energy sources, particularly wind power, is strong thanks to
individual state renewable portfolio standards. Yet the federal government continues to drag its feet on long-term extensions of the solar
investment tax credit (ITC) and the wind/geothermal production tax credit (PTC) — both of which are set to expire in December of this
year.
Gonzaga Debate Institute 2008 10
Scholars Natural Gas DA
Link-Demand Key to Flaring
1. High natural gas demand reduces global flaring.
Baca 2 (Vice President of Affiliation: Health, Safety& Environment, British Petroleum, “Capital Hill Hearing Testimony Committee: Senate
Energy and Natural Resources Headline: Technology and Transfer Programs Testimony, September 18,
http://energy.senate.gov/hearings/testimony.cfm?id=412&wit_id=1109)
One potential solution to global gas flaring exists in the form of the North American
natural gas market where demand is expected to grow substantially in the coming
decade (to @30 TCF/YR). It is generally agreed that traditional supply sources in North America will be insufficient and therefore,
other supply sources will have to be tapped in order to meet growing demand. Supply sources include Canadian and Alaskan natural gas
and LNG from Trinidad and West Africa. We believe that these LNG supply sources can compete in the US market and will play a role
in meeting demand. However, post-September 11 safety and security issues have complicated the LNG debate and have forced
governments to re- examine policies related to sighting and expansion of LNG facilities.
GAO 4 (Natural Gas Flaring and Venting, Opportunities to Improve Data and Reduce Emissions, http://www.gao.gov/new.items/d04809.pdf)
Although the role of the federal government in this area is limited, especially at the international level, GAO did see opportunities to
contribute. An important first step would be better data reporting, which would clarify the scope of the problem and allow targeting of
areas where flaring and venting are most significant. Another step would be improved oversight to reduce venting of methane on federal
"a robust natural gas market, along with a
lands and offshore areas leased for oil or gas production. Overall,
supporting infrastructure, would have the most significant impact on the reduction of flaring
and venting." Accordingly, "changes to natural gas markets, and to the transportation infrastructure for moving gas to these
markets, will likely be needed to offer producers an economic incentive to sell the associated gas rather than flare or vent it."
Gerner et al 4 (Franz Gerner, Bent Svensson, and Sascha Djumena Franz Gerner is an energy specialist,Bent Svensson program
manager, ad Sascha Djumena a senior energy specialist, with the World Bank Group’s Oil and Gas Policy Division, Gas Flaring and Venting,
Public Policy for the Private Sector, “A Regulatory Framework and Incentives for Gas Utilization,” October 2004,
http://rru.worldbank.org/Documents/279-Gerner-Svensson-Djumena.pdf)
Developing countries account for more than 85 percent of gas flaring and venting, with Nigeria, Iraq, and the Islamic Republic of Iran
each flaring or venting 10–20 bcm of associated gas annually (figure 1). The Russian Federation flares about 16 bcm a year. Conversely,
the uti-lization of associated gas tends to be low in devel-oping countries, as shown by
the volume of gas flared and vented relative to oil production. It is particularly low in Cameroon,
Equatorial Guinea, and Iraq, which flare or vent 31–61 cubic meters of associated gas for every barrel of oil produced. In contrast,
gas utilization is much higher in such countries as Norway, the United States, and the United
Kingdom, which flare or vent less than 2 cubic meters for every barrel of oil.
Gonzaga Debate Institute 2008 11
Scholars Natural Gas DA
Link-Demand key to Flaring
GAO 4 (Opportunities to Improve Data and Reducing Emissions Requestor: Natural Gas Flaring and Venting, July 14,
http://www.gao.gov/htext/d04809.html)
Although most natural gas production involves extracting gas from wells drilled into underground gas reservoirs, some natural gas is generated as
a by-product of oil production. Gas produced during oil production is called associated gas. During oil and gas production, it may be necessary to
burn or release natural gas for a number of operational reasons, including lowering the pressure to ensure safety. Burning natural gas is known as
flaring, while releasing natural gas directly into the atmosphere is called venting. In addition to the operational reasons for flaring and venting,
in areas where the primary purpose of drilling is to produce oil, producers flare or vent
associated natural gas because no local market exists for the gas and transporting it to a
market may not be economically feasible.2 Natural gas prices are a major determinant of
whether associated gas is flared and vented or sold. Associated natural gas would be sold if prices were high
enough over a long enough period to justify building the infrastructure--pipelines and ports--to transport the gas to a market. In the United States,
there are well-developed natural gas markets and infrastructure to reduce the flaring and venting of associated natural gas.
Brown 3 (Stephen, Director of Energy Economics and Microecnomic Policy Analysis, Federal Reserve Bank of Dallas, "U.S. Natural Gas
Markets in Turmoil Testimony Prepared for a Hearing on The Scientific Inventory of Oil and Gas Resources on Federal Lands The
Subcommittee on Energy and Mineral Resources Committee on Resources U.S. House of Representatives Thursday, June 19,
http://resourcescommittee.house.gov/108cong/energy/2003jun19/brown.htm)
For some industries and electric utilities, natural gas and residual fuel oil (a petroleum
product) are good substitutes. Although declining in number, these energy users are able to
switch back and forth between these fuels quickly, depending upon which is cheaper.
Rising oil prices push these energy users toward natural gas, and falling oil prices
attracts them back to residual fuel oil. Consequently, economic research finds that oil
and natural gas prices have tended to track each other over long periods of time.
Gonzaga Debate Institute 2008 13
Scholars Natural Gas DA
Perception Link
The price of natural gas is determined by the perception of policies, not necessarily
supplies.
GAO 4 (July, Natural Gas Flaring and Venting, Opportunities to Improve Data and Reduce Emissions,
http://www.gao.gov/new.items/d04809.pdf)
Although gas is sometimes flared or vented because it has too little economic value to
justify its capture, flaring or venting this gas into the atmosphere has an
environmental cost. In general, flaring emits carbon dioxide, while venting releases
methane. 3 These and other chemical compounds found in the earth’s atmosphere create
a greenhouse effect. Under normal conditions, when sunlight strikes the earth’s surface,
some of it is reflected back towards space as infrared radiation or heat. Greenhouse gases
such as carbon dioxide and methane impede this reflection by trapping heat in the
atmosphere. Methane is 23 times more potent than carbon dioxide in its ability to warm
the atmosphere. While these gases occur naturally on earth and are emitted into the
atmosphere, the expanded industrialization of the world over the last 150 years has
increased the amount of emissions from human activity (known as anthropogenic
emissions) beyond the level that the earth’s natural processes can handle. Scientists
generally agree that these increased greenhouse gases are contributing to global warming,
which can have detrimental effects on the climate. In general, the environmental costs of
flaring and venting are not borne by the responsible parties because there are no
restrictions on greenhouse gas emissions. However, nations have proposed international
agreements to limit greenhouse gas emissions, including those released during flaring
and venting.
Elvidge et al 7 (Christopher D., Earth Observation Group, NOAA National Geophysical Data, Kimberly E. Baugh, Benjamin T. Tuttle, Ara T. Howard
Cooperative Institute for Research in the Environmental Sciences University of Colorado, Boulder, Dee W. Pack, The Aerospace Corporation, Cristina Milesi,
Foundation of California State University, Monterey, Edward H. Erwin, NOAA National Geophysical Data Center, “A Twelve Year Record of National and Global Gas
Flaring Volumes Estimated Using Satellite Data,” Final Report to the World Bank, May 30, http://www.ngdc.noaa.gov/dmsp/interest/DMSP_flares_20070530_b.pdf)
Gas flaring is a widely used practice for the disposal of natural gas in petroleum producing
areas where there is no infrastructure to make use of the gas. The companion procedure called
venting is the release of gas without combustion. Venting is not only dangerous, but
releases gases known to absorb thermal radiation much better that carbon dioxide,
contributing to the greenhouse affect. Gas flaring is widely recognized as a waste of
energy and an added load of carbon emissions to the atmosphere. Because the flaring
combustion is incomplete, substantial amounts of soot and carbon monoxide are
produced, contributing to air pollution problems. Information on the spatial and temporal
distribution of gas flaring have been available previously due the sparse and unverifiable
nature of the reporting done by countries and petroleum companies..
Gonzaga Debate Institute 2008 15
Scholars Natural Gas DA
Flaring Impact-Acid Rain
Caliber Planning No Date Given ( Gas Flare Emergency Response Systems Corporation, “What if Flaring,”
https://www.proactiver-fn.com/index.php?content=faq§ion=flaring)
Nitrogen and Sulphur Oxides may combine with water in the atmosphere to form
acids. These are eventually deposited on the earth's surface. Flaring and incineration
account for the majority of upstream Sulphur Oxide emissions and a significant
portion of the Nitrogen Oxides. Emissions may fall rapidly or be carried for many
kilometers before being deposited. The amount of acid disposition to any given area
depends on the height of the flare or incinerator stack, the wind and its direction and the
precipitation patterns. In most sour gas producing areas, soils are resistant to acidification
because they contain a lot of fine particles (mainly, clay and silt). In Alberta, the dry
climate and the amount of alkaline dust in the air also moderates the impact of SO2
emissions.
Gonzaga Debate Institute 2008 17
Scholars Natural Gas DA
Flaring Impact- Species
Seattle Times 4 (For good or ill, Bush clears path for energy development, October 4)
The Wyoming state Department of Environmental Quality recently warned pollution from
companies that "flare" rigs to burn off natural gas was getting out of hand. Federal
officials overseeing Green River Valley gas drilling were so worried a mass of new wells
would lead to unhealthy air they talked about how they someday may need to keep hikers
or hunters off public land, according to internal Bureau of Land Management e-mails. This
summer, a report by the Wyoming Game and Fish Department, the state agency that
manages everything from deer to trout for hunters and anglers, was blunt about the risks:
"Impending, large-scale development of these domestic energy reserves is placing
sagebrush communities and wildlife at risk."
Patin 99 (Russian Ocean-environment specialist, Waste Discharges during the offshore oil and gas activity, “Environmental Impact
of the Offshore Oil and Gas Industry", http://www.offshore-environment.com/discharges.html)
In spite of the fact that some countries now prohibit flaring of oil-associated gases, it
remains one of the major sources of atmospheric emissions in the world. These gases are
dissolved in the crude produced oil. As the pressure goes down, they bubble out in amounts up to 300 m3 for each ton of extracted oil.
The associated gases give about 30% of the gross world production of gaseous hydrocarbons. However, because of the undeveloped
technology and lack of required capacities and equipment on many field developments, up to 25% of all associated gases are flared. In
Russia alone, the volumes of annually burned (flared) oil-associated gases reach up to 10-17 billion cubic meters [VNIIP, 1994].
Astronauts have witnessed that the view of the gas-burning torches, for example above Western Siberia or the Persian Gulf, is an
impressive proof of the large scale of human economic activity and, we would add, of its bad management as well. Components of
atmospheric pollution caused by oil and gas development include gaseous products of hydrocarbon evaporation and burning as well as
aerosol particles of the unburned fuel. From the ecological perspective,the most hazardous components are
nitrogen and sulfur oxides, carbon monoxide, and the products of the incomplete
burning of hydrocarbons. These interact with atmospheric moisture, transform under
the influence of solar radiation, and precipitate onto the land and sea surfaces to form
fields of local and regional pollution. Clear evidence of the impact of atmospheric emissions on the marine
environment from the offshore flaring was found, in particular, during well testing in the Canadian zone of the Beaufort Sea. Here, the
ice surface around the test site where intensive flaring of combustible wastes occurred
was polluted by atmospheric fallout of heavy oily residue. The chemical composition of
the residue was similar to one of the higher-molecular-weight fractions of produced oil
[GESAMP, 1993]. According to some estimates [Kingston, 1991], up to 30% of the
hydrocarbons emitted into the atmosphere during well testing precipitate onto the sea
surface and create distinctive and relatively unstable slicks around the offshore installations. The
results of the aircraft observations in the North Sea indicate that such slicks are found with an average frequency of 1-2 cases per every
hour of flight [ICES, 1995]. Technical means to rectify and prevent atmospheric pollution during offshore oil and gas production are
practically identical to the analogous methods that are widely and often effectively used on land and in other industries. However,
offshore atmospheric emissions thus far have not gotten the deserved attention, probably due to the remoteness of these developments
from densely populated places.
Even though the amount of gases released aren’t very large, they still devastate the
environment.
GAO 4 (July, Natural Gas Flaring and Venting, Opportunities to Improve Data and Reduce Emissions,
http://www.gao.gov/new.items/d04809.pdf)
On the basis of the limited data available, the amount of gas emitted through flaring and
venting worldwide is small compared with global natural gas production and represents
a small portion of greenhouse gas emissions. Nevertheless, flaring and venting have
adverse environmental impacts and result in the loss of a significant amount of energy. Annually, over 100 billion
cubic meters of gas are flared or vented worldwide—enough to meet the natural gas needs of France and Germany for a year. While
flaring and venting do occur in the United States, less than 1 percent of global production is flared and vented.
The amount of gas flared is enough to power two major world powers for a year- reducing
flaring reduces energy demand.
GAO 4 (July, Natural Gas Flaring and Venting, Opportunities to Improve Data and Reduce Emissions,
http://www.gao.gov/new.items/d04809.pdf)
While flaring and venting represent only 3 percent of the total natural gas
production, the natural gas flared and vented—about 100 billion cubic meters a year—is
enough to meet the annual natural gas consumption of both France and Germany. In
general, the amount of flaring and venting emissions is related to the amount of oil
produced: the higher the production, the more gas flared and vented. Since 1990, the
quantity of oil produced has increased, but because of various global reduction initiatives,
the quantity of natural gas flared and vented has remained constant. Consequently, natural
gas emissions as a percentage of oil production have decreased.
Gonzaga Debate Institute 2008 21
Scholars Natural Gas DA
Low Prices Decrease Production
Congressional Office of Technology Assessment 87 (U.S. Oil Production: The Effect of Low Oil Prices,
http://govinfo.library.unt.edu/ota/Ota_3/DATA/1987/8732.PDF)
Congress’ attention became focused on U.S. domestic oil production as a result of the
largely unexpected plunge in world oil prices that began in December 1985. The price
plunge began when Saudi Arabia attempted to recapture lost oil markets by increasing
production and offering new and more attractive contract terms, throw- ing world oiI
supply and demand out of balance. One effect of the lower prices— which dropped from
$28 per barrel in 1985 to below $15 per barrel for much of 1986—was to quickly force a
portion of existing U.S. production out of service and to sharply reduce drilling and
other exploration and production-oriented activity, guaran- teeing that U.S.
production would decline still further in the future. The Department of Energy and
others have projected that the decline in production, coupled with in- creases in (price-
sensitive) oil demand, will drive U.S. oil imports past the 50 percent mark by the early
1990s at the latest. Congress asked OTA to provide an independent assessment of these
postulated effects.
Gonzaga Debate Institute 2008 22
Scholars Natural Gas DA
Low Prices Hurt Businesses
High natural gas prices are key to small business profitability- empirically proven.
The New York Times 92 (March 2, Collapse in Prices for Natural Gas Shakes Produces,
http://query.nytimes.com/gst/fullpage.html?res=9E0CE7DD1538F931A35750C0A964958260&sec=&spon=&pagewanted=all)
The collapse of natural gas prices in the last three months, to the lowest winter level in
more than a decade, is giving the nation's weakened oil and gas industry its worst jolt since
oil prices fell by more than half in early 1986.
Many giant companies have announced layoffs or reduced spending for new wells,
and hundreds of smaller companies, many of them family-run, are going out of
business. As oil companies increase their investments overseas, where costs are lower and
potential discoveries more promising, the nation's reliance on imported energy increases.
Gonzaga Debate Institute 2008 23
Scholars Natural Gas DA
A2: Low Prices Good for Consumers
The New York Times 92 (March 2, Collapse in Prices for Natural Gas Shakes Produces,
http://query.nytimes.com/gst/fullpage.html?res=9E0CE7DD1538F931A35750C0A964958260&sec=&spon=&pagewanted=all)
Many giant companies have announced layoffs or reduced spending for new wells, and
hundreds of smaller companies, many of them family-run, are going out of business. As oil
companies increase their investments overseas, where costs are lower and potential
discoveries more promising, the nation's reliance on imported energy increases.
And the lower prices have scarcely benefited residential customers. Retail prices have
not fallen, and only big manufacturers and electric utilities that burn gas have
enjoyed large savings, consumer groups say. A Postwar Ebb
Gonzaga Debate Institute 2008 24
Scholars Natural Gas DA
A2: Negative Feedbacks/Backstopping
The link only goes one way- alternative energy isn’t increased by high natural gas prices.
Demand for gas is so strong that higher prices don’t decrease its usage.
Foster Natural Gas Report 5 (“Supply Uncertainty, Infastructure are Top Concerns in Report
on North American Gas Industry,” March 3)
Natural gas has become the fuel of choice for industrial users and power generators.
The authors note that U.S. gas-fired generation capacity is overbuilt, and adding more coal,
nuclear or other generation capacity in the short-to-medium term is "extremely difficult."
Thus, gas demand for power "is expected to be very strong, even if natural gas prices
are high."
Gonzaga Debate Institute 2008 25
Scholars Natural Gas DA
A2: Status Qou Decrease Natural Gas
The Straits Times 6 (September 1, Alternative fuels won't fully replace fossil ones, Lexis)
There is consensus that fossil fuels - oil, natural gas and coal - will continue to be the
dominant fuels that will meet the bulk of the world's energy needs.
They are more economical than many alternative energy sources, and there are
adequate reserves to meet global energy demand for at least the next 40 years (longer
for coal).
The US Energy Information Administration has projected that fossil fuels will still
account for some 86 per cent of total world energy demand in 2030.
Gonzaga Debate Institute 2008 26
Scholars Natural Gas DA
Aff-UQ- Demand Low
Buyers are overstretched with natural gas prices now, demand and prices will slide for the
coming years.
Greenwire 8 (February 5, Utilities turning away from coal eye gas, risk increased prices, Lexis)
But North American supplies of natural gas will be flat or declining in coming years,
according to the Energy Information Administration. Because natural gas prices are
already high in the United States, some experts fear a boom in natural gas demand
for electricity generation will send prices even higher.
Demand for natural gas is low now.
Downes 5 (Laurence M., Federal Congressional Testimony, Febrary 16, “Energy Policy Act of 2005”)
Since the beginning of 2003, the circumstances in which our industry finds itself have
become plainly evident through significantly higher natural gas prices. Natural gas prices
have consistently hovered in the range of $5-6 or more per MMBtu in most wholesale
markets. In some areas where pipeline transportation constraints exist, prices have
skyrocketed for short periods of time to $70 per MMBtu. Simply put, natural gas prices are
high and volatile, and the marketplace is predicting that they will stay high. At this point
there is no significant debate among analysts as to this state of affairs. Changing the
current supply/demand balance requires continuing efforts aimed at energy efficiency as
well as initiatives to provide more natural gas supply. As this Committee well knows,
energy is the lifeblood of our economy. More than 60 million Americans rely upon
natural gas to heat their homes, and high prices are a serious drain on their
pocketbooks. High, volatile natural gas prices also put America at a competitive
disadvantage, cause plant closings, and idle workers. Directly or indirectly, natural
gas is critical to every American.
Gonzaga Debate Institute 2008 28
Scholars Natural Gas DA
Aff- Econ Turn
Brown 3 (Stephen, Director of Energy Economics and Microecnomic Policy Analysis, Federal Reserve Bank of Dallas, "U.S. Natural Gas
Markets in Turmoil Testimony Prepared for a Hearing on The Scientific Inventory of Oil and Gas Resources on Federal Lands The
Subcommittee on Energy and Mineral Resources Committee on Resources U.S. House of Representatives Thursday, June 19,
http://resourcescommittee.house.gov/108cong/energy/2003jun19/brown.htm)
Sustained high natural gas prices are likely a drag on U.S. economic activity. Higher
energy prices are indicative of increased scarcity of natural gas which is a basic input to
production. (7) As such, rising natural gas prices can result in a classic supply-side
shock that reduces potential output. Consequently, output and productivity growth are
slowed. The decline in productivity growth lessens real wage growth and increases the
unemployment rate at which inflation accelerates. (8) If market participants expect the
near-term effects on output to be greater than the long-term effects, they will attempt to
smooth their consumption by saving less or borrowing more, which boosts the interest rate.
With slowing output growth and an increase in the real interest rate, the demand for real
cash balances falls, and for a given rate of growth in the monetary aggregate, the rate of
inflation increases. Therefore, rising natural gas prices reduce GDP growth and boost
real interest rates and the measured rate of inflation. (9)
Sun 04 (Sun Microsystems, High Natural Gas Prices Drive U.S. Manufacturers—and Jobs—Overseas,
http://www.sun.com/br/0304_ezine/man_gas.html)
Natural gas use is widespread. This raw material accounts for 38 percent of industrial
energy use, 15 percent of commercial building use, and 16 percent of electric generation
use. Increases in gas prices ripple throughout the economy. For example, as average
gas prices rose by 303 percent at the end of 2000, fertilizer prices increased by 144 percent.
Without offsetting cost savings from other farming expenses, farmers would have curtailed
production to boost corn prices to recoup expenses. Higher corn prices lead to higher
prices for corn syrup and grain feed, ultimately forcing up prices for hundreds of
consumer products such as soft drinks, breakfast cereals, burgers, and ethanol used in
gasoline.
Gonzaga Debate Institute 2008 29
Scholars Natural Gas DA
Aff- Econ Turn
Sun 04 (Sun Microsystems, High Natural Gas Prices Drive U.S. Manufacturers—and Jobs—Overseas,
http://www.sun.com/br/0304_ezine/man_gas.html)
Companies using gas for feedstock, such as nitrogen
U.S. firms cannot survive when costs triple.
fertilizer producers, have been among the first to feel financial pain. High gas prices,
which account for up to 90 percent of fertilizer costs, have forced nine nitrogen fertilizer plants to
close or cease operations since January 2001. The remaining facilities have only operated at 50 percent capacity. Where
are farmers getting their fertilizers? According to the U.S. Government Accounting Office, the 25 percent decline in U.S. fertilizer sales
has been accompanied by a 43 percent increase in imports and a 7 percent decrease in agricultural consumption. Job losses follow plant
closures. Russell Gold, staff reporter for The Wall Street Journal, recently wrote, "U.S. chemical makers have lost an estimated 78,000
jobs since natural gas prices began to rise in 2000." Theo H. Walthie, business group president, Hydrocarbons and Energy and EO-EG at
The Dow Chemical Company, recently confirmed this pessimistic statistic when he spoke at the February 2004 CERAWEEK
conference. According to Walthie, sustained high natural gas prices forced Dow to shutter U.S. plants, and focus investments overseas,
accounting for some of the 3,500 jobs Dow lost globally in 2003. Walthie said
more U.S. manufacturing jobs are
at risk unless U.S. natural gas prices become globally competitive in the near-term.
High natural gas prices crush the manufacturing sector which is key to the economy
Industrial Energy Consumers of America 3 (December 3, 2003 41 Month Natural Gas Crisis has Cost U.S.
Consumers Over $111 Billion http://www.ieca-us.com/downloads/natgas/$111bilion.doc)
The impact of high energy costs on manufacturing is significant and it contributed
greatly to reduce manufacturing after-tax profits during the 41 month natural gas crisis.
According to Bureau of Census data, manufacturing profits fell 47.7 % during the time
period of the natural gas crisis versus the previous 41 months. Manufacturing plays an
important role in the economic health of our country and we must recognize that
affordable energy, including natural gas, is essential. In the past, the affordability of
U.S. energy was a key factor in manufacturing building their factories here. Now, the
non-globally competitive price of natural gas and natural gas feedstock is forcing
manufacturing companies to produce their products elsewhere. According to the National
Association of Manufacturers, manufacturing accounts for 22 % of GDP growth,
contributes one-third of the economy’s productivity growth, creates more business
activity and jobs in other sectors than any other industry, performs 62 % of U.S.
private sector R&D, pays the highest wages –18 % higher than the national average and
makes two-thirds of all U.S. exports.
Gonzaga Debate Institute 2008 30
Scholars Natural Gas DA
Aff- Flaring Link turn
The chemicals released from flares are no different than those from cars, fires, or
anything other combustion process.
Caliber Planning No Date Given ( Gas Flare Emergency Response Systems Corporation, “What if Flaring,”
https://www.proactiver-fn.com/index.php?content=faq§ion=flaring)
It has been assumed that flares burn at 99% efficiency. However,1% of incomplete
combustion can produce Carbon Monoxide (CO), unburned hydrocarbons, particulate
matter (soot and ash), volatile organic compounds (Benzene, Toluene, Xylene), other
organic compounds known as Polycyclic aromatic hydrocarbons and small quantities of
Sulphur compounds such as Carbon Disulphide (SO2) and Carbonyl Sulphide (COS).
Benzene is known as a cancer causing compound and Carbon Disulphide is also classified
as a poison affecting the central nervous system. The effects of these depend on the
magnitude, duration and frequency of exposure. Many of these compounds are not
unique to flaring and are common products of incomplete combustion in emissions
from automobiles, forest fires, stubble burning, barbecues and cigarettes.
Gonzaga Debate Institute 2008 32
Scholars Natural Gas DA
Aff- Empirically Denied
GAO 4 (Opportunities to Improve Dada and Reduce Emissions, Natural Gas Flaring and
Venting, July 14)
Since 1995, the average price of natural gas in the United States has almost tripled as
demand has grown faster than supply. Natural gas prices increased from $1.93 per million
British thermal units (mmBtu) in 1995 to $5.15 per mmBtu in 2003—an average annual rate
of increase of over 13 percent (see fig. 1). 1
Despite this increase in its price, natural gas is regularly burned and released into the
atmosphere during the production of oil and gas. While the exact amount of gas lost in
this way is uncertain, given the vast extent of oil and gas production throughout the world,
it could be significant. In addition to resulting in the loss of a potentially valuable
resource, the burning and release of natural gas into the atmosphere contribute to
greenhouse gas emissions, which are generally considered to be warming the earth’s
atmosphere.
Gonzaga Debate Institute 2008 33
Scholars Natural Gas DA
Aff- No Warming Impact
Even completely eliminating flaring is not enough to contribute to ending global warming-
the plan overwhelms.
GAO 4 (July, Natural Gas Flaring and Venting, Opportunities to Improve Data and Reduce
Emissions, http://www.gao.gov/new.items/d04809.pdf)
By itself, the reduction of natural gas flaring and venting will not solve the problem of
meeting increasing natural gas demands or eliminate all greenhouse gas emissions;
however, it would be a helpful step in that direction. Although the emissions from flaring
and venting are small in comparison with those from other sources, such as fossil fuel
combustion, reducing flaring and venting from oil and gas production would help
eliminate harmful emissions and possibly preserve an energy resource that is currently
being lost.
GAO 4 (July, Natural Gas Flaring and Venting, Opportunities to Improve Data and Reduce
Emissions, http://www.gao.gov/new.items/d04809.pdf)
Worldwide flaring and venting is estimated to contribute, respectively, about 4
percent of the total methane and about 1 percent of the total carbon dioxide
emissions caused by human activity. Despite these small contributions, several countries have undertaken efforts to reduce flaring
and venting emissions that have the potential to reduce greenhouse gases while saving an energy resource. Specifically, many countries
have imposed requirements on oil and gas producers to eliminate emissions of gas within the next few years. For example, Norway no
longer allows the burning of petroleum in excess of the quantity needed for normal operational safety without the approval of the
Ministry of Petroleum and Energy, and in 2003 Canada reported having achieved, through monitoring and regulation, a 70 percent
reduction in flaring and venting emissions. In addition, corporations in several countries, in order to market their associated natural gas,
either have constructed or are planning LNG plants to liquefy the gas for export or have developed on-site and local uses for the gas.
For example, corporations operating in Nigeria currently have six LNG projects in development and have also begun using gas that
otherwise would have been flared or vented to operate the platform equipment as well as to produce cement and fertilizer and gas that
is usable as fuel for automobiles. Finally, some countries are exploring the potential of reinjecting carbon dioxide into wells instead of
emitting it into the atmosphere. According to an oil company official, carbon dioxide reinjection in Algeria has prevented over one
million tons of emissions— the equivalent of taking 200,000 cars off the road.
Gonzaga Debate Institute 2008 34
Scholars Natural Gas DA
Aff- Gas Flaring Good
Department of Energy 7 (Energy Efficiency and Renewable Energy, Report Documents Massive Flaring of Natural Gas
Worldwide, September 19, http://www.eere.energy.gov/news/news_detail.cfm/news_id=11285)
Natural gas is often released during oil production and processing, and it is flared to
dispose of it. Oil producers flare the gas rather than sell it because of the lack of natural gas
infrastructure or markets in the areas where oil is produced. The gas is flared for safety
reasons, plus the greenhouse gas impact of the natural gas is lowered by burning it.
The World Bank's Global Gas Flaring Reduction (GGFR) partnership aims to encourage a
reduction in flaring by means such as re-injecting the natural gas into the oil reservoir,
using it onsite for power generation, piping it to nearby markets, or liquefying it for
shipment to distant markets. According to the World Bank, the natural gas flared each year
generates roughly 400 million tons of carbon dioxide and would be worth about $40 billion
in the United States. See the World Bank press release, the GGFR Web page, and the full
NOAA report (PDF 9 MB). Download Adobe Reader.
Gonzaga Debate Institute 2008 35
Scholars Natural Gas DA
Aff- Negative Feedbacks
High gas prices will increase the incentives for alternative energy, feeding into their
impacts.
Higher natural gas prices have eroded or, in some cases, eliminated the competitive
price advantage of natural gas over alternative energy sources. If the higher gas price
environment is sustained, our ability to attract new customers could be significantly
affected, which could have a negative impact on our customer growth rate and results of
operations. Volatility in the price of natural gas could result in large industrial
customers switching to alternative energy sources and reduced revenues, earnings
and cash flow.
High natural gas prices will inevitably shift consumers to alternative energy- biting their impacts.
Styles 6 (Geoffrey, Managing Director of GSW Strategy Group, LLC, an energy and environmental strategy consulting firm, EnergyOutlook,
http://energyoutlook.blogspot.com/2006_01_01_archive.html)
The increased attractiveness of alternative energy stocks is clearly attributable to the
dramatic increases in the prices of oil and natural gas, and the growing environmental challenges facing coal.
To the degree these energy sources face long-term problems, alternative energy seems on secure footing. The sector includes some very
promising technologies, in addition to the obvious wind and solar power segments. Gasification and sequestration, next-generation
biofuels, advanced batteries, and stationary fuel cells will likely all be applied at material scales within the next decade. That means
selling real products to real buyers, and generating real BTUs and kilowatts. In this light, analogies to the Tech Bubble begin to look
silly.
Gonzaga Debate Institute 2008 36
Scholars Natural Gas DA
Aff- Impact Inevitable
The impact is inevitable- alternative energies are here to stay and are already trading off
with natural gas- wind power proves.
Natural Gas Week 5 (November 14, Tax Credits, High Fuel Prices Seen Behind Advance of Renewables, Lexis)
The US wind energy industry will set an annual growth record of 35% this year, with
expected installations of 2,500 MW, bringing total US wind capacity to 9,200 MW.
The American Wind Energy Association said that total could displace about 500 MMcf/d,
or more than 182.5 Bcf of natural gas, in 2006, based on the assumption that about 10
cubic feet of natural gas generates 1 kWh of electricity and, on average, 80% of wind
generation ultimately replaces gas-fired electricity.
By comparison, another yardstick estimates it takes 160 Mcf/day to get 1 MW, not one
MWh, using efficient combined-cycle technology. Opponents of wind power point to low-
capacity output of wind farms, estimated at an average of 35%, but that varies depending
on wind speeds, location and technology.
Regardless, the alternative energy industry is expected to continue strong growth
through at least 2007 when tax credits are set to expire. Southern California Edison and
Stirling Energy Systems will build a major solar facility on a 4,500-acre plot 70 miles
northeast of Los Angeles, with partial operations set for January 2009.