Homer Alaska - Letters

Story last updated at 4:44 PM on Wednesday, April 11, 2012

Other side of natural gas story




The bigger picture of natural gas in Homer is this:

1. Fossil fuel energy is a global market and prices will be determined by supply and demand, not what is good for Homer.

2. Our supplier, Enstar, is owned through a Michiganbased holding company, owned by a Wall Street equity firm whose senior partner is a senior partner at Morgan Stanley. Will they make decisions based upon whats best for Homer?

3. Natural gas extraction has a high percentage of probability for contaminating water tables. From every drill site seeping just a little to total destruction of an areas water supply.

4. The natural gas industry has a track record to date that shows profit is far more important than the environment or its customers financial well-being.

5. Based upon 2010 rate of consumption, an 11-year supply of gas is currently proved. The rest (decades) is speculative.

6. Currently operators need $8-9 per thousand cubic feet (mcf) to break even. The price this week is $2.089 (something will have to change for the industry to be profitable; hmmm, extraction technology or price?)

7. A number of gas companies have applied for gas export applications with the federal government which will account for approximately 19 percent, or almost one-fifth of total U.S. gas consumption today. If approved this will impact domestic supply with studies showing the more gas we export, the higher prices go domestically. (Read item No. 1, ie. energy is a global market. Is there a possibility of even more companies filing applications?)

I would like to see someone step up and guarantee decades of cheap natural gas with no environmental mishaps.

Then convince me that we human beings (a group that has historically been reactive on just about everything) will suddenly become proactive and put alternative and sustainable sources into place while the cheap natural gas is flowing.

Kevin Kreitz

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