American Gas - July 2011 - (Page 5)

IN thE KNoW INDUSTRY INSIGHTS Natural Gas: A Windfall for a Clean Energy Future Because of natural gas, there’s no need for expensive mandates and subsidies. recent events in Japan have reminded us that there is no free lunch when it comes to energy. these catastrophic events inevitably inspire another great debate about the merits of various energy sources and how we can best get to a clean and affordable energy future. Unfortunately, we have not had an energy policy in the United states in the nearly three decades i have been in the utility business. instead, what we have is a strange mix of mandates and markets that we sometimes call energy policy. Abundant, Domestic and Clean Technology and nature have coincided to provide America with abundant natural gas—a competitive and inexpensive windfall that will deliver the cleaner energy we need to increase our global competitiveness and to compete with China and India. The United States is now the largest natural gas–producing country in the world. The Colorado School of Mines estimates that the total potential of U.S. gas supply increased by 71 percent from 2000 to 2010. Natural gas enhances our energy security. Unlike oil, nearly all of our natural gas supply is produced here in North America, and we can reduce our dependence on oil if we fuel vehicles with natural gas. Natural gas is also the cleanest fossil fuel and is good for the economy. It emits approximately 80 percent less sulfur dioxide and nitrogen dioxide, no mercury or particulates, and 55 percent less carbon dioxide than coal. In addition, the natural gas industry creates jobs. According to an IHS Global Insight study on the natural gas industry, 100,000 direct jobs were created from 2006 to 2008. Gas usage in the utility sector was up an average of 6 percent year over year for the first half of 2010 compared with 2009. Natural gas has already jumpstarted the transition to clean energy. While I still believe that using the market to put a price on carbon would be the most efficient way to encourage clean energy generation, carbon legislation is not going to happen any time soon. In the meantime, we at Exelon continue to pursue the most cost-effective path to clean energy through our Exelon 2020 plan, which is our commitment to reduce, offset or displace our entire carbon footprint by 2020, and we are halfway to our goal (see Figure 1). In terms of what Congress should do now to guide the transition to a clean energy future, I ask them to do nothing. That is because new natural gas finds, competitive energy markets and Environmental Protection Agency (EPA) enforcement of the Clean Air Act have already begun to lead the transition. EPA Rules Benefit Clean Generation As the CEO of the largest nuclear utility in the United States, it may surprise some that I am such a strong supporter of natural gas. Exelon is committed to competitive markets and dependent on the prices we can obtain in them. Ironically, that makes Exelon almost as linked to natural gas prices for earnings and growth as a gas exploration company. Consequently, the natural gas industry should see the electric utility industry as a great opportunity for demand growth, particularly as the JOHN W. ROWE is chairman and CEO of Exelon Corp., one of the nation’s largest electric and gas utilities, based in Chicago. AmericAn GAs july 2011 5

Table of Contents for the Digital Edition of American Gas - July 2011

American Gas - July 2011
Contents
President’s Message
In the Know
In the News
Safety First
Integrity Management Fuels Innovation
GTI: A Trifecta of Technology Approaches
NYSEARCH: Technology Equals Solutions
AGA 2011 Membership Directory
Places to Be
Noteworthies
Marketplace
Jobline
Advertisers’ Index
Facts on Gas

American Gas - July 2011