Is it any wonder that the public doesn’t like Oil and Gas? – ENB Contributor Column

Frozen gas wells, frozen pipelines, frozen instruments at generation plants (coal, nuclear and gas), along with frozen wind turbines meant that the utilities could not respond to the increase in demand as Texans all tried to heat their homes at the same time.

exas leaders failed to heed warnings
Energy and policy experts said Texas’ decision not to require equipment upgrades to better withstand extreme winter temperatures, and choice to operate mostly isolated from other grids in the U.S. left power system unprepared for the winter crisis. Credit: Jordan Vonderhaar for The Texas Tribune

With the ongoing fall out of power outages across Texas this week, it has brought into sharp focus the reliance we have on energy (and the infrastructure that delivers it to our homes) to keep us safe and protected from the elements, especially during extreme weather.

Disruptions to energy supply across Texas have not been because of any one type of fuel source, but all of them. Frozen gas wells, frozen pipelines, frozen instruments at generation plants (coal, nuclear and gas), along with frozen wind turbines meant that the utilities could not respond to the increase in demand as Texans all tried to heat their homes at the same time. And yet, public figures in Texas (and my Linked In feed) have been very quick to point the blame at renewables and just the frozen wind turbines. Texas is one of the largest producers of natural gas (and oil) in the country! Yes, renewables went offline, but so did natural gas! And gas makes up a much larger portion of the energy generation capacity across the state than renewables do.

Ironically, ERCOT was formed in 1970 in response to blackouts in the North East, and the agency was tasked to manage the Texas grid according to national standards. In 2002 the Public Utility Commission (PUC) appointed ERCOT to oversee the de-regulation of the electricity market in Texas. By allowing competition in the market, it did bring down electricity prices (although low natural gas prices since 2009, have probably also had something to do with that). The lower prices have meant that the utilities operate at lower margins for most of the year and rely on the spikes in demand (usually in the summer in Texas) to turn a profit. As someone has spent my career working in the upstream oil and gas industry, I cannot stress enough how devastating it is to see executives publicly relish the extreme spike in prices, at the consumers expense, just because it’s good for shareholders. These kinds of statements just add more fuel to the fire (pun intended) to the backlash by the general public towards the fossil fuel industry.

Following a major freeze event in 2011, Federal regulators made winterization recommendations to ERCOT, which were largely not followed. Again, if all energy sources, gas, coal, nuclear and wind generation and utilities have of followed these recommendations wells, pipelines, instruments and wind turbines could have stayed operational. Yes, there are costs involved in winterizing equipment, but these costs are a fraction of the drilling or installation capital of the infrastructure.

Decisions by companies and governments are made for economic reasons, after all, we live in a society built on capitalism. But what this week’s events in Texas have highlighted, at what cost? And at the end of the day, who is going to bear these costs? This week’s events in Texas have proved that energy, and access to energy are key to our survival, especially during times of crisis. Public resentment towards the oil and gas industry is already at an all time high, and as an industry, we need to do better about communicating responsibility and when necessary, acknowledging our own downfalls.

Deb Ryan

LinkedIn: https://www.linkedin.com/in/deb-ryan-p-e-a838005/

About the Author:

Deb provides insights about oil and gas economics, reserves, regulation, public opinion, and energy transition. Her contributions highlight the balance between economic factors, public opinion, and environmental concerns as it relates to energy production and consumption.

As a thought leader and noted voice in the energy industry, Deb was named as one of Ally Energy’s “Top Energy Voices” for her “Voice in Sustainability” in 2020 and in 2019 was included in the 40 Top Women in Energy by the Denver Business Journal.

For over 9 years, Deb has served in leadership positions at the Society of Petroleum Engineers (SPE) where she currently serves as the North American Regional Director on the International Board of Directors. She is also the current Chair of the Ethics Committee for the Society of Petroleum Evaluation Engineers (SPEE). Deb is a registered Professional Engineer (PE) in Colorado and Texas.

About Deb Ryan 3 Articles
Deb provides insights about oil and gas economics, reserves, regulation, public opinion, and energy transition. Her contributions highlight the balance between economic factors, public opinion, and environmental concerns as it relates to energy production and consumption. As a thought leader and noted voice in the energy industry, Deb was named as one of Ally Energy’s “Top Energy Voices” for her “Voice in Sustainability” in 2020 and in 2019 was included in the 40 Top Women in Energy by the Denver Business Journal. For over 9 years, Deb has served in leadership positions at the Society of Petroleum Engineers (SPE) where she currently serves as the North American Regional Director on the International Board of Directors. She is also the current Chair of the Ethics Committee for the Society of Petroleum Evaluation Engineers (SPEE). Deb is a registered Professional Engineer (PE) in Colorado and Texas.