With Wednesday’s release of a key Team Obama study touting global sales of US natural gas, America seems poised to become a major energy exporter.
But will New York miss out?
Huge new markets — in Asia and Europe, for example — may soon open up to US producers, generating tens of thousands of jobs here. And billions in revenues.
Maybe even tilting the global political outlook in America’s favor for a change.
The federal report, by an independent firm commissioned by the Energy Department, found that natural-gas exports would do wonders for the economy. Drillers hope the verdict will spur the Obama folks to OK new permits for exporters, fueling a new industry — and as much as $47 billion in economic activity by 2020.
“The United States has a huge opportunity to generate economic growth” and cut energy costs, says Rodney Waller of Range Resources, which produces natural gas.
Yet in New York, the Ithaca Journal reports, energy firms are displaying “diminished interest” in gas extraction, citing a “rapid” spike in drilling-site leases allowed to expire.
Why? Because four years ago Albany banned hydraulic fracturing, or “fracking” — the preferred extraction process — supposedly while it studied its health and safety impacts.
And with Gov. Cuomo erecting new roadblocks daily, there’s no end in sight.
Firms also foresee onerous regulations, local bans and lawsuits galore.
A majority “will tell you the opportunities are not here in New York right now,” Jim Smith, an industry spokesman, said. “The opportunities are in Pennsylvania and Ohio, and not New York.”
Anschutz Exploration, for example, after spending millions here, is voting with its feet — and canceling plans to drill here.
“Anschutz has basically washed its hands of New York,” says Thomas West, a lawyer for the company. It’s “not a friendly state to do business in.”
The firm, by the way, had shifted some leases to Norse Energy. But yesterday, Norse, which holds rights to 130,000 acres in New York, filed for Chapter 11 bankruptcy protection — citing, in part, the state’s “regulatory delays.” Terrific.
In May, Norse said it was ditching its Buffalo headquarters and heading for Houston.
It’s been selling off its leases here, but their values are plummeting “because of a general perception that New York is not open for business,” says Dennis Holbrook, a Norse legal officer.
Meanwhile, Upstate’s economy is comatose. Folks there must be beyond livid to be shut out of a coming boom that the rest of the country will enjoy.
It’s a valid perception.
And a true tragedy in the making.
Sadly, it’s self-inflicted.