PITTSBURGH (AP) - Energy companies, environmental groups, and even
Hollywood stars are watching to see what decisions President Barack
Obama makes about regulating or promoting natural gas drilling.
The stakes are huge. Business leaders don't want government regulations
to slow the flow of hundreds of billions of dollars of clean, cheap
domestic energy over the next few decades. Environmental groups see that
same tide as a potential threat, not just to air and water, but to
renewable energy. And on a strategic level, diplomats envision a future
when natural gas helps make the U.S. less beholden to imports.
Some say the unexpected drilling boom presents historic options - and risks - for the Obama administration.
"It's
a tough choice. The president is in a real bind," said Charles Ebinger,
director of the energy security initiative at the Brookings
Institution, a Washington, D.C., nonprofit. "I think the question is
what does he want his legacy to be?"
Ebinger said that if Obama fully embraced the boom in gas drilling
the nation could see "incredible" job gains that could lead to "a
re-industrialization of America." Possibilities like that are tempting
to any president, and perhaps even more so in the current economy.
"But really embracing this stuff is going to bring him squarely in
conflict with some of his environmental supporters. It's not without
some possible peril, particularly if he gets to be seen too cozy with
the oil and gas folks," Ebinger said.
Hydraulic fracturing, or fracking, has made it possible to tap into
deep reserves of oil and gas but has also raised concerns about
pollution. Large volumes of water, along with sand and hazardous
chemicals, are injected underground to break rock apart and free the oil
and gas.
Environmental groups and some scientists say there hasn't been enough
research on water and air pollution issues. The industry and many
federal and state officials say the practice is safe when done properly,
and that many rules on air pollution and disclosure of the chemicals
used in fracking are being strengthened.
The Sierra Club is already trying to slow the gas rush, which began
in Texas and has expanded to Pennsylvania, Colorado and other states.
It's started a nationwide "Beyond Natural Gas" campaign to push for more
regulation on an industry it describes as "Dirty, Dangerous and Run
Amok."
"We need to avoid replacing one set of problems with a new but very
different set of problems," said Michael Brune, the Sierra Club's
executive director, referring to coal and natural gas. Investing in
green energy makes more economic and environmental sense, he said.
The Sierra Club knows natural gas will be a part of the nation's
energy future. "How much a part is a big fight right now," Brune said.
Such
arguments have resonated with many environmental groups, and with
actors and musicians who are lending their star power to anti-drilling
efforts.
The Hollywood film Promised Land is scheduled for release in
December, starring Matt Damon, with a story line about drilling from
best-selling novelist Dave Eggers. But even before its release, critics
pounced on the fact that some financing for the project came from the
United Arab Emirates - a country that stands to lose money if the U.S.
gets more of its energy needs at home.
Brune agreed that "you have to acknowledge that there are benefits to home-grown energy."
Critics
say many states haven't been tough enough on the industry, which has
objected to the idea of national drilling regulations. Some state
officials oppose such proposals, too.
"Yes, we are concerned," said Patrick Henderson, energy executive for
Pa. Gov. Tom Corbett. "Upwards of 10 federal agencies are seeking to
put their proverbial nose under the tent with regard to oil and gas
development." He added that federal intrusion "is a surefire way to
impede job growth. We'll be vigilant of proposed federal rulemakings."
The U.S. Environmental Protection Agency is conducting one major
national review of drilling and potential drinking water impacts, but it
won't be finished until 2014.
Jack Gerard, president of the
American Petroleum Institute, which lobbies for the industry in
Washington, is hoping Obama's campaign rhetoric doesn't change.
"He has evolved on the oil and the gas issue, and today, he gives it a
full-throated endorsement in terms of the need to produce it to create
jobs, get our economy back on track," Gerard said in a postelection
conference call.
Most experts agree that Obama faces four big choices about the gas
boom: whether to back nationwide EPA rules; whether to keep pressuring
coal-fired power plants to reduce emissions (which benefits gas as an
alternative fuel); whether to allow large-scale exports of liquefied
natural gas; and whether to support a national push to use compressed
gas in commercial vehicles.
One expert in Texas predicted that Obama won't go to extremes.
"I
don't think the administration will do anything to halt development,"
said Kenneth Medlock III, a professor at Rice University's Center for
Energy Studies in Houston, adding that there will be "some attempts" to
move regulations into federal hands.
Medlock expects Obama to keep the pressure on the coal industry, but
go slowly on the natural gas export issue. The industry says exports
have the potential to be highly profitable, but some members of Congress
fear exports will just drive up domestic prices, depriving consumers
and other industries of the benefits of cheap natural gas.
Others see an opportunity for the president to stake out a middle ground.
"A
lot of the industry guys are pretty shaken by the anti-fracking
movement," said Michael Shellenberger, president of the Breakthrough
Institute, an Oakland nonprofit that promotes new ways to address
environmental issues. "That might make them a bit more open to
regulatory oversight."
Shellenberger said natural gas could also be a "big opportunity" for
Obama as part of a broader campaign to address greenhouse gas emissions.
Ebinger
agreed, saying that "if we really pushed tax credits to get diesel out
of long-distance trucks" that could lead to massive carbon dioxide
reductions. But at some point, Obama will have to make tough decisions.
"I don't think the president can punt this one," he said.
Whatever Obama does, "it will definitely drive a bunch of people crazy" in the environmental community, Shellenberger said.
Copyright 2012 The Associated Press.
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