Opening federal lands to oil and gas exploration won't free the country from dependence on natural gas imports but it could head off the formation of another OPEC-like cartel, according to a study released by Rice University researchers.

The United States gets about 3 percent of its natural gas from overseas via liquefied natural gas tankers. Another 17 percent comes from Canada in pipelines and the rest is produced domestically.

The report says the LNG imports will rise to about 30 percent by 2030 if the United States does not permit exploration in the 58 percent of federal lands now off limits by congressional or presidential decree -- including parts of the Rocky Mountains and areas off the east and west coasts.

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Storage Development Wave Underway

An unprecedented wave of underground natural gas storage development is underway. 150 Billion Cubic Feet (BCF) of new "working gas" (i.e., usable inventory) storage capacity is currently under construction with another 600 BCF under development. This development activity represents a potential 20% increase in storage working gas capacity. Could this new storage capacity put a lid on rising natural gas prices and mitigate price volatility?

It is important to note that gas storage development involves bringing together the right combination of many factors – such as a suitable underground reservoir or salt dome, access to pipeline infrastructure, technical and environmental expertise, marketing skills, and numerous other aspects. In recent years more proposed working gas capacity has been cancelled than reached construction stage.

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Wyoming Considering Subsidies for Pipelines

State lawmakers are shifting away from offering severance tax breaks and toward offering payments to encourage construction of gas pipelines.

Booming gas drilling but limited export capacity has translated into low prices for Wyoming gas compared to gas from other areas, like the Gulf of Mexico. State officials hope that getting more pipelines built would boost the price of Wyoming gas and thus state revenue.

The Wyoming Pipeline Authority estimates that Wyoming this year will lose out on $470 million in revenue based on the lower price of Wyoming gas.

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Environmental Impact Minimal for Pipeline Across Indiana

A draft environmental impact statement for a natural gas pipeline plotted to cross nine Indiana counties says adverse effects from the project will be minimal.

The Federal Energy Regulatory Commission on Friday published its preliminary findings on the Rockies Express East pipeline, a 639-mile project stretching from Missouri to Ohio. It's part of a 1,679-mile project that reaches west to Colorado.

Commission staff concluded that the "project would have mostly limited adverse environmental impact and would be an environmentally acceptable action," if Rockies Express officials followed 149 FERC recommendations and their own mitigation procedures.

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