The Gas Industry is Feeling the Pressure from “Entrenched” Environmentals and “Noisy Opposition” The Black and Veatch survey of the gas industry, 2015 Strategic Directions: U.S. Natural Gas Industry Report, found: “Respondents felt the most significant barrier associated with the construction of new pipelines was delays caused by opposition groups.” According to the report, the expansion of pipelines is “not without challenges. Regulatory authorization wait times and limits on capital recovery along with entrenched opposition from environmental and other non-governmental organizations (NGOs) present challenges to the successful execution of projects.” (Page 16). The gas industry sees “Activists Engage Regulators and Industry” this is causing them problems: Pipeline projects are receiving greater attention from environmental and safety activists as owners attempt to build infrastructure to meet the rising demand for gas power generation and liquefied natural gas (LNG) exports. Environmental activists have recently turned their attention to FERC’s extensive pipeline siting process as an opportunity to slow or block projects. Their poll of the gas industry found that protesters were the cause of the two biggest factors creating barriers for pipeline construction. The report notes that the gas industry and the federal “regulatory” agency FERC that works closely with the industry are seeking to develop new strategies to combat the protest movement. The two factors that pipeline respondents felt were the most significant barriers associated with the construction of new pipeline capacity were delays from opposition groups, 78 percent, and regulatory uncertainty, 68 percent. The reality of the marketplace is also beginning to set in, more cautious optimism and depressed prices: “What is clear is that the exuberance of 2014 is waning. In its place is a more cautious optimism buoyed by an expectation that LNG exports and natural gas-powered electric generation — along with opportunities in transportation — will fuel industry growth, but pricing will remain depressed by historical standards.” (Page 16) What does it all mean? Activists should keep the pressure up and if possible escalate to build on the success of protest. Source URL |