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Progress Energy CEO on future of natural gas
A Cabot Oil and Gas natural gas drill is viewed at a hydraulic fracturing site on Jan. 17, 2012 in Springville, Penn.
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Jeremy Hobson: Gas prices are on the rise again; the average price of a gallon is up to $3.51. Meanwhile, prices for natural gas are plummeting. Unfortunately, however, most of our cars aren't made to use natural gas. So when is the natural gas industry
going to be ready for prime time?
Bill Johnson is the CEO of Progress Energy. That's an electricity company that deals in natural gas, as well as other energy sources. He joins us from Raleigh, N.C. Good morning.
Bill Johnson: Morning, Jeremy.
Hobson: So what is the dream scenario for the natural gas industry? How much of our energy future can involve natural gas and how long is it going to take for that to happen?
Johnson: Well from what we know about the gas supply in this country, I think we have 100 years of natural gas here. If we can extract it safely and get it where it needs to be to consumers and a company like ours, but it's a great part of our energy story for the future.
Hobson: And when you say 100 years, how much of our energy will be natural gas, will come from natural gas, percentage-wise?
Johnson: I would think over the next decade, we'd be moving toward maybe 25, 30 percent nationwide. So I think over the next decade or so, it's going to burgeon into a main supply of energy, at least for the electricity sector.
Hobson: I need to ask you about the downsides -- which are not insignificant -- to extracting this natural gas. There have been reports of water contamination, the strong stench of chemicals from fracking and even an increased number of earthquakes. Why should the public accept these downside risks for an industry that we don't know all that much about yet?
Johnson: Fracking is not a new thing -- or hydraulic fracturing, whatever term you want. We've been doing it for 30, 40 years in this country. And so we ought to be able to do it right, to make sure that there are no environmental impacts from it. It's like any other natural resource -- if we're going to use it, if we're going to extract it, we have to do it the right way. If we pay enough time and attention and look at the science and look at the equipment they use and the methods, we should be able to do this safely.
Hobson: Then why do you think there's so much opposition already to fracking?
Johnson: I do think people have the concerns that you mentioned, right? Particularly drinking water, which is on everybody's mind all the time. I don't have any problem with people being concerned about this at all. I mean, I'd be concerned if there was a problem with my drinking water. That's what we ought to be pursuing -- how do we do this safely and get this resource that we really need?
Hobson: Bill Johnson is the CEO of Progress Energy. Thanks so much for talking with us.
Johnson: Thanks Jeremy. It's great to be part of a show that I listen to regularly.
Amazing, an energy company executive with an honest discussion of fracking. If you read the text you will notice comments like "If we can extract it safely", "we ought to be able to do it right", "we should be able to do this safely", and "how do we do this safely and get this resource that we really need". He understands that there are lots of unknowns and risks, and that the industry is not doing it safely using today's technology.
Like Sarah, I think the discussion missed the big point that any carbon-based fuel-- petroleum, coal, natural gas-- when burned to extract energy puts more CO2 into the atmosphere. In addition to contributing to a changed climate, it is absorbed by sea water, is converted to acid form, and changes the chemistry of the water to interfere with biological processes. If you like sea scallops, eat them now before they are all extinct. Not from overharvesting but because they can't make shells anymore.
It is impossible to use natural gas without environmental impacts because ANY transfer of fossil carbon from underground into the atmosphere contributes to our climate crisis. Natural gas is mainly methane, which is a potent green house gas. About 5% leaks from the source, enough to be catastrophic for the climate. Even if all the gas could somehow be collected with no leakage, burning it still makes carbon dioxide, adding to our ongoing problem.
We have the solution in solar and wind. While we're dithering with archaic carbon-intensive energy sources, China and Europe are racing ahead to the new clean-enegry economy.
