American Oil and Gas Reporter - April 2021 - 75

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Op-Ed: Administration Prompts Fears
Editor's Note: Leaders from several
Appalachian Basin oil and gas groups
submitted the following op-ed to publications in their respective areas. AOGR is
reprinting it with their permission. Signatories to the piece are Dan Weaver,
president of the Pennsylvania Independent
Oil & Gas Association, Matthew Hammond, president of the Ohio Oil & Gas
Association, Charlie Burd, Executive Director of the Gas & Oil Association of
W.V., Ryan Watts, executive director of
the Kentucky Oil & Gas Association, Lawton Mullins, president of the Virginia Oil
& Gas Association and David Callahan,
president of the Marcellus Shale Coalition.
As a group of trade organizations that
collectively represent the largest natural
gas producing region in the country, comprising an operational footprint of Pennsylvania, Ohio, West Virginia, Kentucky
and Virginia, our member companies employ hundreds of thousands directly and
indirectly and contribute billions to our
region's economy.
Our goal is to provide the critical
feedstock necessary to create jobs, rebuild
our economy, power and heat our homes,
and provide the petrochemical building
blocks necessary for manufacturing virtually all the products on which Americans
rely daily. In the process, we commit to
continuing to operate in an environmentally
responsible fashion while significantly
contributing to the reduction of the American economy's carbon footprint.
We recognize and appreciate President
Biden's commitment to addressing global
climate change and our industry's commitment to reducing our environmental
footprint is equally strong. The continued
growth in natural gas use nationally has
led to the 30-year low in total energy-related carbon dioxide emissions the country
has achieved.
We have significant concerns about
how President Biden's plans will impact
the hundreds of thousands of Americans
that work in, rely on or benefit from the
Appalachian shale energy industry. Even
more alarming may be the harm we
believe has been done by measures the
administration has taken already, as well
as the ones it is contemplating, which ultimately threaten and negatively harm all
Americans and undermine our position
in the global economy.
Implementing policies that hinder natural gas and oil development will result
in far more than the decline of another
industry and the millions of paychecks it

provides nationwide. These policies will
negatively impact the quality of life of
all Americans and reverse the significant
geopolitical benefits of being the world's
top energy producer.
As the president works to implement
his agenda, we ask that he consider the
vital role our energy-producing states
play in meeting the demand for affordable electricity and consumer products
and the impact some policies would
have on the hard-working men and
women our thousands of member companies employ.
Natural gas generates nearly 40% of
the electricity powering this county, providing safe, clean, reliable base load
power to all energy consumers. The development of our assets right here in
Appalachia has led to the United States'
transition from a net importer to a net
exporter of natural gas. The ongoing
trend of reducing U.S. reliance on foreign
energy imports better positions our country to play a key role in reducing emissions globally.
Along with heat and power generation,
natural gas is a critical feedstock for
manufacturing. In Pennsylvania alone,
the construction of an ethane cracker
facility is currently under way, supporting
more than 6,000 on-site construction
jobs. Once operational, the facility will
produce feedstock to produce plastic
and chemical components that make up
almost every product Americans use, including phones, personal protective equipment and home goods.
It is critical that we preserve and
expand our region's and the nation's
pipeline infrastructure so we can maximize

the benefits of our gas, oil and liquids
production for all Americans. These projects not only transport these resources
safely and reliably to processing facilities
and new markets but are massive job creators as well.
As the nation and the world responds
to the COVID-19 global pandemic, natural
gas and related byproducts have been integral to the production of medical equipment, medications and newly emerging
vaccines that are helping to save the lives
of tens of thousands of our fellow citizens.
President Biden has pointed specifically
to the benefits of the domestic manufacturing of solar panels and wind turbines
for the transition to a cleaner energy
future. This cannot be accomplished without the enormous amounts of petrochemicals produced by the natural gas and oil
industry. These petrochemicals are the
foundational components to the construction of wind turbines and solar panels.
Their construction is impossible in a
globally competitive market without the
low-cost fuel source natural gas offers to
those manufacturers.
The growth in natural gas usage is
helping meet the nation's carbon reduction
objectives while also supplying the ondemand power requirements to scale-up
wind and solar energy.
We hope the administration recognizes
and considers the vital role of the Appalachian and U.S. shale energy industries
as it crafts energy, climate and economic
policy. Working together, we commit to
accomplishing our shared objective of
mitigating the harmful effects of global
climate change in a responsible and strategic fashion.
❒

Tailwater Buys Operator Of Gas Storage Facilities
DALLAS-Tailwater Capital LLC, a
private equity firm based in Dallas, announces it has signed a definitive agreement to acquire NorTex Midstream Partners LLC, a Houston-based natural gas
storage and transportation company. Financial terms of the transaction were
not disclosed.
According to Tailwater, NorTex provides revenue optimization and asset reliability solutions for utilities and power
generation facilities in North Texas through
strategically located natural gas storage
and transmission assets. The company
operates the largest portfolio of nonutility gas storage facilities in North
Texas, Tailwater adds. That portfolio includes 36 Bcf of depleted reservoir work-

ing gas capacity, 83 miles of natural gas
pipelines and the Tolar Hub, the largest
natural gas hub in North Texas.
Tailwater points out that NorTex's infrastructure is adjacent to both the Dallas-Fort Worth metropolitan region and
key inbound gas supply pipelines. As
the DFW metroplex's population grows
and more intermittent renewable sources
are added to the grid, thermal generation
will be critical to deliver power during
periods of renewable intermittency, Tailwater argues. The firm says NorTex is
well-positioned to facilitate that call on
thermal power generation and service
the critical infrastructure necessary to
provide reliable electricity to the North
Texas market.
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APRIL 2021 75

American Oil and Gas Reporter - April 2021

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