Business & Finance Economics

Bad News In The Us For Natural Gas Sector

The natural gas business has been bombarded with stories that bring attention to the potential environmental disasters of common extraction techniques. Issues include "hydro-fracking" fluids that are believed to be polluting groundwater as well as disposal drilling and its alleged link to earthquakes. These real disasters, including local distribution pipelines blowing, lead to death in some cases and destruction of private and public property. Well, the actual question at this time is how will the natural gas sector respond to these problems, and what is the plan of action.

Richard Neufeld, an associate of Fraser Milner Casgrain, says that in a society full of lobbyists where messages are spread swiftly and broadly, with the help of new as well as old media, it becomes a requisite that the gas industry does everything it can to address these issues. Also, with the new venues of communication, the natural gas sector needs to combat the mounting negative perception of the public towards its methods.

In Pennsylvania, for instance, the industry has been opposing vocal environmentalists, who have been unhappy due to the favorable developments of the Corbett Administration regarding the states Marcellus Shale industry, despite noticing the looming dangers.

In West Virginia, the state legislature was unsuccessful in adopting legislation which would have brought stupendous transformation to the state's natural gas regulatory body. Industry insiders also believe that it is improbable that the governor will take action. Nevertheless, the governor is trying to negotiate with senior legislators this week; the subject matter is believed to be centered on budget allocations in 2011 for inspectors. Also, a vote for the same package is anticipated later in the week.

Explosions, on the other hand, are a more complicated matter. Experts certainly agree that the whole scenario regarding natural gas pipelines has to be seen through a different perspective, no matter what the size, to make sure that the practice remains safe. The federal government is not ready to accept the accidents like the one in San Bruno, California. However, things at the state level are very different, as safety regulations are less stringent. The question of replacing the old, cast-iron pipelines is not being taken seriously, especially in this budget-tightening environment.
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