Gas and Oil Association of West Virginia Story Archives

Legislative Interims, Digital Parenting Demands And Composting, This West Virginia Week

On this West Virginia Week, legislators started off the week back in Charleston for the first time since the end of the regular session for interim meetings. Meanwhile, we heard about the state’s rising natural gas production, the new challenges of digital devices for parents, and ahead of Earth Day, we took a look at a major composting operation.

On this West Virginia Week, legislators started off the week back in Charleston for the first time since the end of the regular session for interim meetings. We learned more about the state’s finances, government auditing and a new approach to maintaining the state’s roads.

Meanwhile, we heard about the state’s rising natural gas production, the new challenges of digital devices for parents, and ahead of Earth Day, we took a look at a major composting operation.

We’ll dive into these topics, plus a national award for a local breakfast favorite and upgrades to regional rail-trails.

Chris Schulz is our host this week. Our theme music is by Matt Jackfert.

West Virginia Week is a web-only podcast that explores the week’s biggest news in the Mountain State. It’s produced with help from Bill Lynch, Briana Heaney, Chris Schulz, Curtis Tate, Emily Rice, Eric Douglas, Jack Walker, Liz McCormick and Randy Yohe.

Learn more about West Virginia Week.

Gas Group’s Chief Talks About MVP, Carbon And Coal Competition

Curtis Tate spoke with Charlie Burd, president of the West Virginia Gas and Oil Association, about the state’s role in supplying the global market.

The United States exported a record volume of natural gas in 2023, according to the U.S. Energy Information Administration. Curtis Tate spoke with Charlie Burd, president of the West Virginia Gas and Oil Association, about the state’s role in supplying the global market.

This interview has been edited for length and clarity.

Tate: Who are the biggest natural gas players in West Virginia? Where does the gas go?

Burd: We have two of the largest natural gas producers in the country operating in West Virginia. Actually, EQT is the largest natural gas producer in the country. And Antero resources is the largest natural gas producer in West Virginia. And I believe I heard the number that about a third of our production here in the state, and we produce just less than 3 trillion cubic feet of natural gas. It was 2.8 in 2022. And I’ve heard during the legislative session, that number may top 3 trillion for 2023. I haven’t seen those numbers yet. Because the reports aren’t due until like April, mid-April, but about a third, I believe, of our production is transported east to be converted into liquefied natural gas to be shipped across the oceans to our allies.

Tate: Hydraulic fracturing, or fracking, was a game changer. When did production take off?

Burd: I think the first well was drilled in December of 2007, put into production in 2008. That was a Chesapeake well. We produced 256 (billion cubic feet) of natural gas. And now we’re producing round numbers that say 3 trillion cubic feet. So that’s where it started. And that’s where we are. And it has greatly increased from year to year. That 3 TCF, 96 percent of that comes from probably about 4,600 horizontal wells in 2022, 2.85 trillion cubic feet from 4,500 wells. And I think we’ve added about 100 wells. I won’t have the exact numbers for a couple of weeks. That’s where it all came from.

Tate: Where is the production concentrated?

Burd: If you were to look at a map of West Virginia, and look at I-79, which literally dissects the state almost straight up the middle of north and south. When you get to about Braxton County, and it all goes to the northwest. That’s where the wet play is. That’s where the more enriched natural gas with propane and ethane is, if you’re again using that as a kind of a guide, using 79 as a guide, anything to the east of 79 is pretty much in a dry play. It’s almost pipeline quality gas coming out of the ground there.

Tate: What’s the difference between wet and dry gas?

Burd: Wet gas has the heavier hydrocarbons: propane, ethane, butane, isobutane. And what we call dry gas would be that gas stream that is just mostly methane. So in addition to methane, those other heavier hydrocarbons are what we delineate as a wet gas. And we produce somewhere in the neighborhood of 700,000 barrels of ethane and liquids a day in that northwestern tier of the state. And those products are extracted through two or three large processing facilities we have up in that also in that same general area. Those liquids are sent south and north, south into Louisiana and north into Canada to be further processed. Or put in a pipeline and shipped to where those liquids are used.

Tate: What does the Mountain Valley Pipeline mean for gas producers in West Virginia?

Burd: That pipe is what they call fully subscribed. Meaning that the end users that have already subscribed or purchased will be purchasing that gas in long term, fixed contracts for that natural gas. But it means a lot to us because it’s literally, probably one of the last major pipelines that may be built. And for West Virginia, unlike Texas, and other places that can move a lot of gas across their state and be intrastate, our situation is much different. We have to ship our gas out of state where there are markets. West Virginia is small in comparison to other markets. So our gas is moved through interstate pipelines out of the state.

Tate: Why is MVP one of the last major pipelines to be built?

Burd: I think you just look at the extraordinarily difficult process someone has to encounter to design and construct a pipeline in this country now, it’s almost impossible. The Atlantic Coast Pipeline, which was a Dominion project, another 2 BCF a day that would have gone to eastern markets and military use. That project got scrapped a couple years ago. Because, the cost overruns, and just the increased scrutiny of us to have a line crossing 200 feet under the Appalachian Trail. Not impacting the trail at all, but just because it, quote-unquote, “crossed underneath.” that there was a lot of outcry.

Tate: Burning natural gas emits carbon dioxide and producing and transporting gas releases methane. Both are greenhouse gases. What is the industry doing to reduce those impacts?

Burd: Number one on our own, several years ago, the industry took upon itself to develop a program internally to reduce methane emissions. And here in the (Appalachian) basin, there’s lots of smaller conventional wells. And now in addition to the bigger Marcellus wells, we’ve reduced our carbon footprint here by something like 70 percent, over the last 10 years, just on initiatives, initiatives of our own, and then we get new legislation that says we have to do more. I mean, I think we’re still in the process of completing what we started on our own. Secondly, the methane that comes off of fugitive emissions that we would have when wells are put in, put into service, and methane doesn’t stay hovering over West Virginia, Pennsylvania and Washington, D.C. It goes way into the atmosphere. And there’s no question that if this administration is serious about reducing global emissions, no one produces natural gas more safely, or efficiently, or environmentally sound. And we do that we do right here in this country. No one has the exacting standards for environmental and safety as the United States does.

Tate: Ohio, Pennsylvania and Virginia have moved sharply away from coal and toward natural gas for electricity in the past 10 to 15 years. Why hasn’t West Virginia?

Burd: Well, it’s not because of lack of effort to develop natural gas fired electric generation. We have tried, and there have been numerous projects that have been placed upon the table. I think, Curtis, choosing my words with you carefully here, we have a state that has historically believed its reliance on energy and jobs came from the coal industry. But at the hands of the EPA and others, this constant demand to reduce emissions, and produce energy cleaner has transformed all those states you mentioned to producing electricity with natural gas. West Virginia’s a bit behind, but it’s not because we’re not trying. It’s just that we find ourselves in a better place. Literally, every day when it comes to being able to compete for those projects evenly with all the same playing field with Ohio, Pennsylvania. I mean, you’re right, Ohio and Pennsylvania collectively have maybe two dozen plants, two dozen natural gas fired electric generation plants. We literally have one down there in Huntington.

Federal Data: United States Was Globe’s Top Exporter Of LNG In 2023

U.S. exports of LNG totaled nearly 12 billion cubic feet a day, more than any other country.

The United States was the largest exporter of liquefied natural gas in 2023, according to federal data.

U.S. exports of LNG totaled nearly 12 billion cubic feet a day, more than any other country, according to the U.S. Energy Information Administration.

Europe was the biggest customer of U.S. LNG last year as the continent continues a shift that started with Russia’s invasion of Ukraine in 2022.

About 66 percent of U.S. LNG exports went to European countries, primarily the Netherlands, France and the United Kingdom.

Asia was the second biggest market for U.S. LNG at 26 percent. Japan and South Korea were the largest importers.

Australia and Qatar trailed the United States, with about 10 billion cubic feet of LNG exported from each. Further down were Russia and Malaysia, each with less than 5 billion cubic feet.

West Virginia, the fourth largest U.S. producer of natural gas, produced 3 trillion cubic feet in 2023, according to the Gas and Oil Association of West Virginia. Some of it was exported as LNG through the Cove Point terminal in southern Maryland.

The state’s gas industry expects the mid-year opening of the controversial and delayed Mountain Valley Pipeline, which will have a capacity of 2 billion cubic feet per day.

Hydraulic fracturing, or fracking, has sharply increased gas production in the Appalachian Basin in the past 15 years.

Presentation: Renewables, Gas Poised To Dominate U.S. Power Grid

Curtis Wilkerson, founder and CEO of Orion Strategies, a public relations firm, said wind and solar are now the cheapest form of electricity.

What does the future hold for electricity generation? Renewables and gas will dominate the grid in the years to come, according to a presentation given to the Gas and Oil Association of West Virginia.

Curtis Wilkerson, founder and CEO of Orion Strategies, a public relations firm, said wind and solar are now the cheapest form of electricity.

“One of the things that is a large misnomer is that people think that renewables are expensive. They’re now the cheapest form of electricity,” he said. “When you look at what’s called levelized cost of electricity – that means from construction through its natural lifespan – and wind and sun don’t cost anything.”

Wilkerson said the future power needs of the country will include growth in building electrification and electric vehicles, as well as data centers.

And what was considered baseload power in the past, namely coal and nuclear, will be overtaken by renewables and gas.

“Solar in particular, has fallen 90 percent in the last 10 years, the cost. And the next cheapest form of electricity, which is largely dispatchable, is natural gas,” he said. “Notice how much more expensive coal is and how much more expensive nuclear is. And that gives you why if the projections for the United States, energy supply or electricity supply will be renewables and natural gas for many years to come.”

Gas currently supplies about 40 percent of the country’s electricity. Big growth in renewables, especially solar, is expected over the next two years.

But as Wilkerson told the trade association, electricity demand will grow, and gas can capture some of the growth along with renewables.

Coal Advocates Tout Benefits Of Industry To State Lawmakers

Chris Hamilton, president of West Virginia Coal Association thanked legislators for their “pro-coal policies and assistance” aimed at helping the industry over the years.

The Joint Standing Committee on Energy and Manufacturing heard an update on the state’s coal industry Monday.

Chris Hamilton, president of West Virginia Coal Association started out by thanking legislators for their “pro-coal policies and assistance” aimed at helping the industry over the years.

“Most of the bad is coming out of Washington, D.C. Mostly good comes out of West Virginia and the West Virginia Legislature,” Hamilton said. “And that’s been sustained over the past several years, we’re just expressing our appreciation, sincerely, this is our safe haven.”

In 2021 West Virginia was the nation’s second-largest coal producer in the U.S., after Wyoming, accounting for about 14 percent of U.S. coal production. Hamilton said the industry will end 2023 with about 86 million tonnes of coal production.

“We’re up about 5 percent from last year,” he said. “Last year we produced about 84 million tonnes of production, that fits a pretty healthy split.”

The U.S. total for 2022 came in at just under 600 million tons, a 3 percent increase from 2021.

Asked about fossil fuels and climate change, Hamilton shifted the focus to countries like China and India which he said produce more fossil fuel emissions.

“Ironically, as you compare that and talk about global climate change, their contribution is six, seven times greater than what ours is currently within the states,” Hamilton said. “So we point that out – because we don’t think it does good to ratchet down our use of fossil fuel and coal consumption, specifically while it’s being ramped up in other parts of the globe. We’re all one planet here and if one country is ramping up their carbon output as one is ramping down you still have an increase in carbon dioxide.”

According to the U.S. Energy Information Agency, in 2022 China and India combined consumed 67 percent of total global coal production — China 52 percent and India 15 percent. Conversely, China is the world’s largest producer of renewable energy, including the largest producer of hydroelectricity, solar power and wind power in the world.

Hamilton continued to criticize the Biden administration for “stringent” EPA rules aimed at reducing emissions and particulates in coal fired plants.

“They don’t make any bones about it. They are also designed to remove every single remaining coal plant in operation. That’s the objective of these rules. That’s the objective of this president,” Hamilton said.

Since taking office, President Biden has pledged to cut carbon emissions in half by 2030 to address climate change which scientists say is producing long-term shifts in temperatures and weather patterns.

The coal industry has been faced more recently with increased restrictions on insurance coverage, particularly for new projects. The move is seen as a response to pressure from shareholders, governments and environmental groups seeking to limit coal’s contribution to global warming.

It follows similar action by banks to restrict their coal financing activities. In 2022 JP Morgan Chase, Wells Fargo, Morgan Stanley and Goldman Sachs were placed on the state’s restricted financial institutions list after Treasurer Riley Moore alleged they are engaged in a boycott of fossil fuels.

“The insurance industry seems to be playing many of those same games right now,” Hamilton said. He told the committee that the West Virginia Coal Association just had its corporate insurance policy revoked.

“The renewal letter stated that Chubb insurance, because we have the word coal in our corporate bank they will no longer provide us with insurance,” he said.

Jason Wandling serves as general counsel for the West Virginia Department of Environmental Protection’s Division of Mining and Reclamation.

Wandling reviewed 2022 permitting activity offering data representing applications that the agency has received and actions taken from Jan 1, 2022 to Dec. 31, 2022.

“As you can see the numbers are more or less the same. What we have coming in is what we have going out,” he said. “The most important is the incidental boundary revisions (IBRs), the permit revisions themselves and the permit renewals. This is sort of the lifeblood of what coal companies need when they come to the agency to be able to do their work in compliance with the law.”

Wandling said from 2016 until this year they have 85,000 more acres in production than in 2011. He said surface acres permitted in 2022 remained more or less the same as figures released that year.

In 2023 alone, he said an estimated $18 million in coal bond releases are expected to be returned to operators.

Statewide surface mine application data was split up over four years.

“Just about 30 certified applications were submitted to us,” Wandling said. “Since then those numbers have dwindled a little bit both because of the pandemic, because of the change in administrations and regulatory environment emanating from Washington, but it’s still a significant number.”

Executive Director of the Gas and Oil Association of West Virginia Charlie Burd told lawmakers that 73,000 people are currently working in the state’s natural gas and oil industry. He cited 2021 figures, which showed West Virginia as the nation’s fourth-largest natural gas producer, after Texas, Pennsylvania and Louisiana, accounting for about 10 percent of U.S. natural gas production. Tyler County is currently the largest natural gas producing county in West Virginia followed by Marshall and Wetzel counties.

“That’s a lot of folks that rely on fossil fuels as an industry and there’s 1.8 million people that rely on the products that we give them every day,” Burd said. “We give them the ability to pull a switch and have lighting and heating and cooling. I think the National Geographic identified maybe 6,000 products that we use everyday that are the direct result of natural gas and the associated liquids that we produce.”

Burd cited the MarkWest Sherwood Complex reminding lawmakers the largest natural gas processing facility in the U.S is located in Doddridge County, West Virginia.

“That’s millions, hundreds of millions of dollars invested,” he said. “A wealth of dollars when you look at all the investments that we make and you’ve been the catalyst to help us do that.”