The Golden Road to the Age of Gas
It is called, 'Roadmap for moving to a competitive low-carbon economy in 2050' and the European Union is using it to drive away from carbon based energy sources. The US in comparison, has a husband and a wife driving their car (aka Republican and Democrat) but they can't stop arguing to even see the road signs. The signs show the dangers of climate change, but the last sign, sponsored by the International Energy Agency, signaled the golden age of natural gas - they saw that last one. But it seems both the EU and the US forgot to keep driving to Rio de Jeniero for the Rio +20 global summit that historically, was the place 20 years ago, that global leaders set out to stop global warming.
The golden age of gas and fracking technology even have the father of the Gaia theory, James Lovelock (the Earth is a self-regulating system), extolling the benefits of fracking for gas. Gas is now a global energy entity with global impact. Gas has moved beyond a niche role as heater of homes and is emerging as a main source for electricity generation. This higher pecking position (or merit order) for gas increases the global implications for the climate. We need to evaluate gas in light of its global impact.
I used to think nuclear power was the lazy leaders answer to climate change. Centralized power units that are free from carbon emissions. Throw some money at it and it gets built. The Earth instead, demonstrated the power of nature can overwhelm risk assumptions and technology. Japan, Germany and the US have wholeheartedly embraced gas as 'bridging' fuel to a low carbon economy. Nuclear is out. Gas, with half the carbon emissions of coal fired power plants is sold as a 'clean' fuel. And no doubt it is cleaner than coal, but with a new label comes added responsibilities.
The recent action by large investment funds to demand the gas industry prevent methane releases from the fracking process, which are 20 times more damaging than carbon dioxide emissions, shows even the financial system understands the threat of climate change. Gas is not only a global commodity, but a commodity with a global environmental footprint. The risks from climate change impact financial investments. Just as investment fund managers are looking at the global emissions impact of shale gas, they are right to demand action at the local wellhead. With reports of limited regulatory and environmental oversight, and the release of methane in the fracking process, the gas industry must clean up if it wants to match its clean talk. Preventing and capturing methane releases and contaminated water are essential steps the industry must address. Objections over complying over environmental costs should be ignored, because the industry can't have it both ways - a clean fuel that also unnecessarily pollutes.
The US and EU are driving towards a cleaner energy system. Climate change is on their map, and natural gas is powering the car. The bridging position of gas is a fallacy, gas will be with us for a long time. Turning away from the technology will be hard to do once the infrastructure is built up: centralized and decentralized power plants, vehicle fleets, transport and storage facilities, a global industry providing jobs. This new position for the gas industry requires best practices limiting unnecessary emissions and overall minimizing the environmental impact. Just as nature had a say in nuclear power, it will eventually have a say on whether gas should be the fuel of the future. The gas industry must address this at the wellhead and in local communities.
Michael LaBelle works for the Central European University Business School as a program developer and researcher on issues of innovation, sustainability and entrepreneurship. His research is focused on the European energy market and efforts to move to a post-carbon economy along with energy governance issues. He is a member of the Atlantic Council’s Emerging Leaders in Environmental and Energy Policy. His blog, energyscee.com, is focused on the geopolitics of gas, energy investment and sustainability in Central Eastern Europe.