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Free Market “Environmentalism”

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This weekend, an interesting story appeared in the Salt Lake Tribune about how Secretary of the Interior Ryan Zinke has proposed rolling back emissions regulations on producing oil and natural gas wells located on federal lands in western states. The reason for the regulations imposed by the Obama Administration was because significant amounts of methane were either leaking or being flared from these wells, 9.5 billion cubic feet of methane from wells in Utah over the past several years. The regulations required less gas to be flared and for leaking drilling, production, and transmission systems to be tightened up. One of the reasons for this was that those emissions have contributed to high levels of air pollution, particularly in winter, along Utah’s densely populated Wasatch Front, where, due to geographic features, inversions are frequent.

Secretary Zinke announced the proposed roll-back because the “costs of compliance” were too heavy on many operators of these wells, particularly wells classified as stripper wells producing small amounts of oil and gas daily, and would cause many of these wells to be shut down. As someone who has some experience in this area, I was flabbergasted at this proposal, one that’s not only environmentally unsound, but economically stupid.

At this point, air pollution along the Wasatch Front is a far greater problem than high natural gas prices for heating. Currently, the price of natural gas is near all-time lows and output is at or near record levels. And that doesn’t even include the downside of massive methane leaks contributing not only to air pollution, but to global warming.

The Republicans are always talking about free markets and excessive regulation, but I have a problem with them declaring that stopping massive natural gas leaks from facilities on leased federal lands is excessive regulation.

We need more methane emissions so that we can create an even greater oversupply of natural gas? An additional supply of natural gas that will keep prices down and make marginal wells even less profitable, if not drive them out of business anyway? And make breathing harder for everyone living in Salt Lake City and along the Wasatch Front?


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