American Oil and Gas Reporter - August 2022 - 42

ConventionSec tion: Texas Alliance of Energy Producers
Sullivan adds that the conference offers
attendees an opportunity to bone up on
subjects in a short time. " I am looking
forward to the content, " he says. " I don't
have time to study everything that affects
our industry at a macro-or micro-level,
so it is great to sit down for 45 minutes
and listen to somebody who has dedicated
their life to these subjects. "
Alliance Says One Size Does Not Fit All
AUSTIN, TX.-With summer temperatures
pushing repeatedly into triple digits
throughout the Lone Star State, 2021's
Winter Storm Uri may seem a distant
memory. However, Uri's aftermath and
lessons remain a relevant subject for the
Texas Alliance of Energy Producers.
For Alliance President Jason Modglin,
the stress that sizzling temperatures have
placed on the Texas power grid harkens
back to the outages that occurred during
Uri. In one thankfully far less severe
instance in mid-July he recalls, power interruptions
kept disrupting a video conference
he and Alliance Economist Karr Ingham
were holding with the office of Senator
Shelly Moore Capito, R-W.V. " I was having
brownouts that dropped me from the Teams®
conference and had to dial in through my
phone, " he recounts. " The Texas energy
market can have problems when the wind
does not blow or the sun does not shine. "
Aside from the parallels associated
with pairing extreme temperatures with
lackluster solar and wind output, Uri remains
a hot topic because it prompted ongoing
policy changes. Texas regulators
are implementing the statutory marching
orders from state lawmakers from legislation
they passed in 2021 to prevent more such
disruptions (AOGR, June 2021, pg. 39).
A Need For Balance
Modglin laments the lingering narrative
that holds natural gas producers responsible
for disruptions to consumers' access to
power and heat. Producers and pipelines
also lost power during Uri, he notes,
which compounded the situation and
spurred legislation.
" There was a mindset among many in
the legislature that natural gas was responsible
for the interruptions, despite
the fact natural gas was the only feedstock
to respond to increased demand, with
power plant consumption surging 300%
that week, " he describes. " A lot of the dialogue
blamed natural gas and said it
lacked the same standards as power plants,
so the legislature passed a law requiring
producers to weatherize and report their
facilities as critical. They also need to go
through emergency operation planning
and training to maintain those assets
during all types of weather. "
Unfortunately, Modglin counters, the
law's universal template ignores the particularities
that characterize many facilities.
Requiring wells with lower production to
meet the same weatherization requirements
❒
DO YOU HAVE THE LATEST
LEADING INDICATORS?
Check AOGR.com for crude
and natural gas cash and
futures prices that are
updated every 11 minutes.
Get rig and frac crew counts,
and so much more!
42 THE AMERICAN OIL & GAS REPORTER
https://www.nxtbook.com/nxtbooks/aogr/202206/index.php#/p/38 http://www.AOGR.com http://www.aogr.com
American Oil and Gas Reporter - August 2022

Table of Contents for the Digital Edition of American Oil and Gas Reporter - August 2022
