Virginia Regulatory Town Hall
Department of Energy
Department of Energy
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8/21/18  8:40 pm
Commenter: William Solomon

NG pipelines a poor investment

My opinion is that Dominion will find that just as they finish their pipline[s], the cost of the NG they plan to run thru them will spike to prices so high that they will not want to buy it.Their huge investment [and the accompanying environmental degredation & cost] will turn out to be a "stranded asset" they will never use!

In support of this thesis, I call attention to the following facts:

* Few, if any, of the fracked oil/gas companies have ever made a profit; the hype over "decades of oil/gas will make the US energy independant" is PR to keep the loans and 'investments' coming. The facts are quite different.

*Many companies are already running out of new places to drill in the 'tier 1, or 'sweet spots'. Wells drilled in tier 2 locations will yield less and deplete faster, but cost as much to drill - further degrading those companies profitabilities.

*When Banks and investors catch-on to these facts - that they are very unlikely to ever recover their capital - such investors will dry up. Without new investments, the Co.s will be forced into bankruptsy, and cease operation.

*NG gas supplies will decrease, prices will rise. QED

The State should NOT approve these boondoggles! Instead support more favorable policies for distributed, private "rooftop"solar and on-site battery storage.

CommentID: 66346