Contact: Jennifer Scott (202) 249-6512
WASHINGTON, D.C. (April 13, 2012) – The American Chemistry Council (ACC) issued the following statement in response to the Obama Administration’s release of an executive order calling for coordination in federal agency efforts related to unconventional natural gas resources.
“We welcome the President’s call to coordinate federal agency activities related to domestic shale gas. As his order stated, this resource ‘creates jobs and provides economic benefits to the entire domestic production supply chain, as well as to chemical and other manufacturers, who benefit from lower feedstock and energy costs.’ With shale gas poised to play an important and growing role in the nation’s energy strategy, appropriate regulations and policies will be critical.
“We agree that ‘states are the primary regulators of onshore oil and gas activities,’ and indeed many states are paving the way in developing robust regulations. Nine federal agencies are also looking at shale gas issues, including the Bureau of Land Management, which will issue new rules covering production on public lands. We are concerned that these rules may duplicate existing state regulations, creating additional barriers that will slow down permitting and increase production costs.
“Natural gas is important as a fuel and power source for American manufacturers, but to the chemistry industry, it’s much more. We use ethane contained in natural gas as a raw material, or feedstock, for our products, which then go into 96 percent of all U.S.-manufactured goods. Natural gas and natural gas liquids such as ethane require separate infrastructure systems, and we encourage the administration to consider the implications as it coordinates policy.
“The full potential from shale gas will only be realized with sound state regulatory policies that allow for aggressive production in an environmentally responsible way. A coordinated approach to regulation can certainly help. We will be watching closely as the President’s initiative develops.”
Learn more about shale gas.