Philadelphia as East Coast energy hub: What about the environment, health and safety?

Since the publication of my article Dec. 8 titled "Philadelphia's incredible potential to become the East Coast energy hub," I have received a number of comments from readers concerning the adverse impact of Marcellus shale drilling, fracking, rail transport and refining/processing on our environment, health and safety. I appreciate these comments and thank the readers who have taken the time to write them. The comments generate conversation which is part of the process to establish public policy and adopt laws and regulations that balance risk vs. benefit not only for the energy industry, but every aspect of modern society.

In that article, I outlined the very significant benefits of increased supply of domestic oil and natural gas for the residents of the Philadelphia region and the country. The decline in the cost of gasoline over the past two months is a direct result of higher oil production. The cost to heat one's home has significantly declined over the past few years due to the production of Marcellus shale natural gas. New electric generation plants that will be powered by natural gas instead of coal or oil will result in significantly less greenhouse gas emissions per kilowatt of electricity generated. Lower energy costs will attract manufacturing back to the U.S., resulting in more jobs. The U.S. will be energy independent by the end of the decade, which will have a very significant favorable impact on the balance of trade and economic growth.

One reader commented that natural gas "will likely be more of a flash in the pan than a long-term source of energy." Actually, experts state that there are sufficient gas reserves to last 100 years. The reader goes on to say that "Philadelphia should use its … intellectual assets … to capitalize on truly clean renewal energy." I agree. All sources of energy must be developed as quickly as their associated technologies and economics permit. However, for the foreseeable future, there are markets where oil and natural gas are the only fuels technically and economically viable. Natural gas is the cleanest of these, and has the least impact on the environment.

Another reader commented, "It would be great to capitalize on all this shale gas, however, not at the expense of our water and air quality. It's the same old story, public risk for private profit." Should we sacrifice the environment or our health and safety to take advantage of shale gas? Of course not!

Let's talk about "public risk." There is risk in every aspect of a modern society – for example, driving a car. Even though thousands of people are killed each year in automobile accidents and cars are a source of air pollution, we accept this because of the benefits of auto transportation. Governments pass laws and regulations, and auto companies continually develop and adopt new technology to make riding in a car safer and to lessen the severity of accidents and the adverse impact of driving on air quality.

Fracking is a technology used to release oil and gas from rock formations. It is a major reason for our country's increase in oil and natural gas production. Federal and state regulations outline the procedures that must be followed to ensure the protection of the environment during the fracking process. If regulations and enforcement are insufficient to protect the environment or if there are companies that don't follow these regulations, let's address these issues, not ban fracking.

Within the auto and energy industries, do things occasionally go wrong? Yes, of course. We do not live in a perfect world. Recalls of cars and their components due to safety issues occur periodically; the Takata airbag recall being the latest example. These are opportunities to learn what occurred and to improve safety and reliability, so that the probability and severity of future occurrences decline. This has been the track record of these industries over time. What is the alternative – to severely limit auto use and the production of energy – which would stop progress and the continual improvement in the quality of life? No one wants that.

Billions of dollars are invested in the energy industry by insurance companies, college endowments and union and non-union pension plans. These funds and the return on investment are not "private profit" as they ultimately benefit insurance policy holders, college students and retirees. If these investments were not made, insurance premiums and college tuition would be higher and pension payments to retirees lower. The cost of gasoline to fuel our cars and oil to heat our homes would be higher.

The energy industry plays a key role in modern society and our quality of life. Like so many things in life, continuous improvement by the industry in the areas effecting our environment, health and safety is a journey. Modern society, which grants the industry a license to operate, demands safe operation and continuous improvement. The energy industry is up to the task.

Source: Philadelphia Business Journal